Public capital market debt documentation

Notes issued by Clarion Funding plc under its secured EMTN programme are secured by a pool of assets charged on a Numerical Apportionment Basis (“NAB”) to various finance beneficiaries. Current and historic valuations for this pool are contained within each Offering Circular below.

Over 63,200 properties in this property security pool are ascribed a value and provide a highly diversified security pool. This serves as collateral in support of all Clarion Funding plc EMTN notes as well as bank exposures to the Group (debt facilities and ‘mark to market positions’ on swap contracts).

All properties charged to the pool have been valued by either Jones Lang LaSalle Limited or Savills (UK) Limited whose valuations are combined to ascertain the aggregate value of the security pool. NAB charging means that no specific property is allocated to any one beneficiary but all beneficiaries have an interest in all properties.

Over and above the amount allocated to each finance beneficiary, a proportion of the charged assets are left unallocated. These unallocated assets provide a further level of collateralisation for finance beneficiaries. The Group has the potential to utilise these assets to secure new debt issuances, provide collateral to cover adverse ‘mark-to-market’ movements or cover adverse property security valuation movements. Further property assets are charged on a periodic basis from the Group’s substantial pool of unencumbered property assets.

The current value (per the latest valuation) of the security pool is in excess of £7bn.