Russian Commercial Real Estate Market with CBRE 2012 Results Outlook for 2013

December 14th, 2012

WAREHOUSE PREMISES

As opposed to offices and retail, the warehouse market has found mechanisms for the management of current risks, and is in the boom stage
New construction, % of existing stock 31,9

Comments: The warehouse market is in the boom stage The volume of new construction looks very aggressive This situation is non-typical In the office and retail segments increase in supply does not exceed 8% of total market supply The main positive driver for a good market development Potential occupiers take upon themselves part of developers risks, first of all, through the buildto-suit scheme

18,0 12,5 9,9

2010

2011

2012

2013 announcement

CBRE | Page 3

2013 may become a record breaker on new warehouse supply

695 thousand sq.m increase in supply in 2012 Or 96% of total increase in supply for 2010-2011 years Next year the rate of market increase may surpass the results of 2012 More than 1,500 thousand sq.m of warehouse premises were announced for delivery in 2013 (4,850 thousand sq.m existing stock)

Radumlia Logistics PNK-Nord (Sever) Park

Dmitrov Logistics Park

Istra Logistics
PNK- Buildings 8,9, Building 3 Klimovsk Logistics Park

Noginsk Logistics
Park

Infrastroy Bykovo South Gate

Building , Building

PNK-Chekhov 2

To be delivered in:

Significant warehouse projects announced as due to be delivered in 2013

Project Announced space to be delivered, sq.m Scheduled for delivery Developer/Investor

Q4 2012 2013

Radumlia Logistics Park PNK-Chekhov 2 South Gate Industrial Park PNK-Nord (Sever) Dmitrov Logistics Park Klimovsk Logistics Park

291,985 259,982 200,000 100,000 60,000 48,000

Q4 Q1-4 Q2-4 Q4 Q2 Q2

TGC Group PNK Group Radius Group PNK Group Ghelamco Raven Russia

CBRE | Page 4

The main warehouse consumer retail companies

Take-up in 2012 by business sectors, % of total take-up

Comments: Retail and related logistics companies traditionally generate major demand for warehouses Industrial properties used for production purposes are in less demand Significant transactions are being made by major players (see the table below)

Other 11% Production 13%

Retail 41%

Distributio n 10%

Logistics 25%

Significant deals in 2012 Occupier Leased space, sq.m Project Business sector

Itella Confidential National computer corporation Centr-Obuv Decathlon

91,454 60,000 58,000 49,500 40,000

Logistics Production and retail (sports goods , garments PNK - Chekhov 2 and stock) PNK - Vnukovo Information technologies Retail (shoes and accessories) PNK - Vnukovo South Gate Production and retail (sports goods) Industrial Park

Kryokshino LP

CBRE | Page 5

The Build-to-suit (BTS) scheme is becoming more and more popular

Evolution of the transactions structure in the market, % of total take-up

Comments: The Moscow consumer market is in growth and displays resistance to crisis The market volume is more than 30% of the markets in Germany and the United Kingdom and continues to grow Therefore, domestic and international retailers must be in the market in the long-term As the volume increases, motivation for having own logistics systems increases too Current rental rates are already high enough to motivate interest in purchase

62
Lease

55

25
Pre-lease

11

13
BTS

34
2011 2012

The growing interest in BTS

CBRE | Page 6

Key market indicators

2011 Total stock, Class premises, thousand sq.m Take-up, thousand sq.m New delivery, thousand sq.m Prime rent, $/sq.m/year Vacancy rate, % of total stock Capitalization rate, % 2012 2013F

3,830

4,840

5,640

439 329 135

974 695 140

1,000 750 800 140

1,74

1-3

11

11

11

PNK-Vnukovo Industrial Park

CBRE | Page 7

Klimovsk Logistics Park

South Gate Industrial Park