Directors Report 1

REPORT OF THE DIRECTORS

The directors submit their annual report together with the balance sheet of ARC (Nominee2) Limited for the year ended 31 December 2010
Principal activities
The Company was dormant within the meaning of Section 1169 of the Companies Act 2006 throughout the 2010 financial year There is no change expected or intention to liquidate for the forseeable future
Directorate
The Directors of the Company, who served during the year, together with their dates of appointment and resignation, where appropriate are as shown below
A Banks (appointed 22 July 2010)
M Barne
RWM Brook (resigned 2 March 2010)
JS Cairns (appointed 2 March 2010)
W Hughes (resigned 22 July 2010)
AE White (resigned 2 March 2010)

Directors' Indemnities and Insurance

As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006 The indemnity was in force throughout the last financial year and is currently in force The ultimate parent company maintains an appropriate level of Directors' and Officers' liability insurance which is reviewed annually

By Order of the Board
TizatA1/4,
RA Hall For and on behalf of Legal & General Co Sec Limited Date 30 March 2011

3.0 Sheet1

For the year ended 31 December 2010 the Company was entitled to exemption under section 480 of the Companies Act 2006
No Members have required the Company to obtain an audit in accordance with section 480(3) of the Companies Act 2006
The directors acknowledge their responsibility for
i ensunng the Company keeps accounting records which comply with section 386 of the Companies Act 2006, and
ii preparing accounts which give a true and fair view of the state of affairs of the Company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of section 394 of the Companies Act 2006, and which otherwise comply with requirements of the Companies Act relating to accounts, so far as applicable to the Company

The notes on page 5 and 6 form part of these financial statements
The financial statements on pages 4 to 6 were approved by the board of directors on 30 March 2011 and signed on its behalf by

A Banks, Director

ARC (NOMINEE2) LIMITED Registered in England & Wales No 6261781

4.0

ARC (NOMINLE2) LIMITED
NOTES TO FINANCIAL STATEMENTS

1 Accounting policies
The main accounting policy of the Company is as follows
Disclosure The financial statements conform to applicable accounting standards and have been prepared under the historical cost convention They comply with the Companies Act 2006

2 Debtors
The amounts owed by group undertakings of ?1 are interest free and repayable at 15 months notice

3 Share capital 2010 2009

Authorised 100 ordinary shares of ?1 each 100 100
Issued 1 ordinary share of ?1 fully paid 11

4 Holding company
The immediate parent undertalcmg is ARC Property Fund General Partner Limited, a company incorporated in England & Wales This company is Jointly owned by Legal & General Property Limited and Kenmore Investments Limited (In receivership), whose ultimate parent companies are Legal & General Group PLC incorporated in England and Wales, and Kenmore Property Group Limited, incorporated in Scotland, respectively Kenmore Property Group Limited was dissolved on 27 January 2011

5.0
ARC (NOMINEE2) LIMITED
NOTES TO FINANCIAL STATEMENTS

5 Funding
The Company's parent company ARC Property Fund General Partner Limited will continue to support the Company's funding in order that it may meet its obligations as they fall due

6 Directors' emoluments
No emoluments were paid to any director or employee nor were any pension contributions paid in respect of their services to this Company (2009 fNil)

7 Related party transactions
The Company has taken advantage of the exemptions under the terms of FRS 8 'Related Party Disclosures' from disclosing related party transactions with its parent company
8 Cash flow statement
Under the provisions of Part VII of the Companies Act 1985 and the Financial Reporting Standard for Smaller Entities (effective January 2007) the Company has not prepared a cash flow statement

9 Pensions
The Company has no direct employees and hence makes no direct contnbutions towards retirement benefits (2009 ENID

Directors Report 2

REPORT OF THE DIRECTORS

The directors submit their annual report together with the balance sheet of ARC (Nominee 2) Limited for the year ended 31 December 2009
Principal activities
The Company was dormant within the meaning of Section 1169 of the Companies Act 2006 throughout the 2009 financial year
Directorate
The Directors of the Company, who served during the year, together with their dates of appointment and resignation, where appropnate are as shown below A Banks (appointed 22 July 2010) M Barrie
RWM Brook (resigned 2 March 2010)
JS Cairns (appointed 2 March 2010)
W Hughes (resigned 22 July 2010)
AE White (resigned 2 March 2010)

By Order of the Board
lakK. RA Hall For and on behalf of Legal & General Co Sec Limited Date 5 August 2010

3.0 ARC (NOMINEE 2) LIMITED