PRG has recently established a new subsidiary, PILA, to focus on direct investment in social housing both in the UK and overseas.

Recent developments central and local government policy increasingly point to the possible involvement of private capital in the ownership of government housing on a very large scale. PRG, with both Pinnacle psg and Regenter, is in a unique position to access this vast market place.

We have established a new subsidiary level to recruit key industry specialists to advise central government in these areas as well as forming a group to participate in this sector, in which PRGIM will act as a fund manager and co-investor. PILA has already entered into this market in Germany, where it has begun to acquire the equivalent of social housing assets.

We also have a full time Director of Housing Investment who leads our response to the government's call from greater private sector in providing, owning and managing affordable housing.