DANISH SUPERMARKET PORTFOLIO

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1 DANISH SUPERMARKET PORTFOLIO INVESTMENT HIGHLIGHTS Unique investment opportunity to acquire a well-structured and homogeneous supermarket portfolio generating highly sustainable and growing cash flows at a low risk Diversified core+ supermarket portfolio in Denmark NOI of EUR 7.8 million High cash flow yield and double-digit IRR 4-5% margin between NOI yield and financing costs Strong covenant and necessity-driven tenants Attractive indexation uplift and WAULT of 8+ years

2 2 DENMARK: A SAFE-HAVEN ECONOMY Triple-A rating: Denmark is perceived as a safe-haven investment market thanks to strong framework conditions, reflected in Danish sovereign bonds being given AAA ratings by S&P, Moody s, and Fitch. Internationally-oriented market: International investors have consolidated their positions in the Danish investment property market: In terms of volume, non-danish investors were involved in 54% of the record-breaking 2017 transaction volume of DKK 88 billion, upping the share from 45% in Unrivaled mortgage system: Characterised by exceptionally low financing costs and a highly transparent cost structure, the mortgage banks in Denmark offer inexpensive financing with high LTVs and maturities of up to 30 years. Pegged to the Euro: The DKK-EUR peg ties the monetary policy determined by the Danish central bank, to that of the ECB, keeping interest rates low and minimising currency risk and hedging costs. Low transaction costs: The transaction costs in Denmark are among the lowest in the world, typically standing at 1.0% to 2.0% of portfolio value.

3 3 PORTFOLIO DESCRIPTION: LOW RISK AND GROWTH POTENTIAL The portfolio comprises a GLA of 39,755 sqm in total - with 27 supermarket assets, including three assets under construction. Credit tenants 94% of the portfolio rent stems from financially strong supermarket tenants, e.g. Dansk Supermarket Group and Coop Danmark, making the income structure highly resilient towards the impact of e-commerce. Additional income derives from various, clinics, one banking-sector tenant, etc. DIversified portfolio The portfolio is well-diversified in terms of location and tenant mix. The properties included in the portfolio are located in the main Danish metropolitan areas with favourable demographic developments, and the supermarket tenant mix ensures diversification between the largest retail grocery groups. Central Jutland Region Aarhus The Capital Region Long leases and no vacancies The WAULT of the portfolio is 8+ years, ensuring highly stable and sustainable cash flows. With zero vacancy and a long WAULT, the properties are easy to manage and can be operated passively. Attractive minimum indexation Around 90% of the portfolio rent is subject to an annual indexation uplift. Minimum indexation of 1.6% at portfolio level. Odense

4 4 THE DANISH GROCERY MARKET IS EXPECTED TO CONTINUE ITS GROWTH IN THE NEXT DECADE Overall the Danish grocery property market currently comprises some 2,900 grocery stores and supermarkets and is a non-cyclical sector with a stable increase in sales primarily driven by significant growth in the discount segment. Turnover, Danish grocery market excluding e-commerce (index 100 = 2008) A CALL OPTION ON THE DANISH ECONOMY Danish economy is in a solid recovery phase: The largest bank in Denmark, Danske Bank, estimated Danish GDP growth at 2.3% for the year of GDP is expected to grow by 1.8% annually in the next two years. Consumer spending is at its highest level in 10 years. Strong momentum in the labour market, real wage growth and increasing housing prices are the main drivers of the high consumer spending Real GDP (Y/Y change) 4% 105 2% % -2% -4% F22 F27-6% E18 Source: Retail Institute Scandinavia Denmark Eurozone Sources: Eurostat, Statistics Denmark and Danske Bank Consumer spending (Y/Y change) 3% 2% 1% 0% -1% -2% -3% -4% E18 Denmark Eurozone Sources: Eurostat, Statistics Denmark and Danske Bank

5 5 SEAMLESS TRANSACTION WITH TWO-DIGIT RETURN ON INVESTMENT SELECTED TENANTS CONTACTS TRANSACTION The portfolio may be acquired in a share deal, by acquisition of 100% of the shares in the SPVs owning the properties. Such a share deal eliminates the buyer s obligation to pay stamp duty and allows the buyer to leverage the equity investment by utilising a substantial deferred tax liability. Denmark s mortgage lending costs are extremely low due to a unique and highly efficient mortgage system with bank margins typically in the % range and a spread of 4-5 percentage points between acquisition yield and financing costs. Such mortgage financing may be obtained with up to 50-55% LTV on commercial properties. PETER WINTHER Partner, CEO, MRICS Capital Markets T: E: peter.winther@colliers.com KRISTIAN A. NIELSEN Manager Capital Markets T: E: kristianaxel.nielsen@ colliers.com Paired with the fact that retail assets are depreciable, the portfolio offers a highly attractive investment case with high cash flow yield and double-digit IRR. UNDERLYING DATA, RESEARCH & ANALYSIS SALES PROCESS OUTLINE SG Nordic ApS intends to divest all shares in the companies owning the properties which are included in the supermarket portfolio. CHRISTOPHER ELGAARD JENSEN Manager T: E: christopher.elgaardjensen@ colliers.com MUHAMED JAMIL EID Senior Associate T: E: muhamed.eid@colliers.com The seller has retained Sadolin & Albæk (the Adviser) as exclusive sellside adviser in connection with the proposed divestment. Subject to their signing of a non-disclosure agreement (NDA), prospective buyers will be granted access to an Investment Memorandum, a preliminary virtual data room as well as site visits accompanied by a representative of the Adviser. COLLIERS INTERNATIONAL Palægade 2-4 DK-1261 Copenhagen K T: W: colliers.dk

6 COLLIERS INTERNATIONAL Palægade 2-4, DK-1261 Copenhagen K T: , W: colliers.dk