KOREA INVESTMENT CORPORATION

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1 BERLIN GROUP RODAL AJAMI GUANBIN ZHEN ALEXIS MULLER PELLERIN XIAO CHEN BILL WILLIAM WALKER ERICA LEE EMRICK PATTERSON UPASANA CHANDRA SIDDHARTH KARNAVAT SUZY SUN

2 KOREA INVESTMENT CORPORATION

3 KOREA INVESTMENT CORPORATION Long-term Investment Diversified Investment - Increase in Alternative Assets Cautious & Sustainable Returns Stick to the Basics by Sector

4 KIC S RECENT DEALS Potsdamer Platz (a commercial mall in central Berlin) $ 200 Million Intercontinental Hong Kong Hotel Intercontinental Hong Kong Hotel $470 Million Partnership with Gaw Capital into $940M deal Office in Melbourne in 2016 (halfstake) $216 Million Six Five-star Hotels $330 Million Ritz Carlton, NY and Four Seasons in SF Minimum Return: G7 Inflation + 4% (0.6 YTD + 4% = 4.6%)

5 BERLIN

6 OVERVIEW: EUROPE S REAL ESTATE MARKET Real Estate Consensus A divide between fairly priced and over valued Despite political uncertainties, Germany is now Europe s #1 Safe Haven Making it destination for global capital

7 OVERVIEW: EUROPE S REAL ESTATE MARKET

8 OVERVIEW: EUROPE S REAL ESTATE MARKET 1. BUSINESS ENVIRONMENT

9 OVERVIEW: EUROPE S REAL ESTATE MARKET 2.CBRE 2016 Q3 REPORT Expects that European property will outperform other assets in Residential - The rental market is gaining considerably in importance over ownership, due to affordability factors, as well as the more flexible lifestyle it offers, in particular for younger people Commercial - Leasing reflect the economic situation: positive but slow growth Industrial - Tightening market despite slowdown in demand - Net absorption has remained positive and logistics vacancy has dropped further - Rental growth has slowed but remains solid

10 OVERVIEW: EUROPE S REAL ESTATE MARKET 3. EMERGING TRENDS IN REAL ESTATE CAPITAL MARKETS

11 VOLATILITY IN EUROPE & INVESTMENT OPPORTUNITY Business Environment Current low interests rates, low inflation environment, investors continue to value European Real Estate for yield with interest rates as low as zero, people do not want it to be in cash, they want to be invested, and Real Estate are attracting a lot of capital because people want yield. Risks Economic impact of immigrants Tailwind on GDP Geopolitical issues leading to investment caution Brexit Concerns of sustainability Return Expectations Scaled down, but investors can play it safe by focusing on getaway cities Low interest rates

12 Where To Go?! German capital is expected to thrive well beyond 2016, based on its young population and its growing reputation as a technology center, as well as the land available for development.

13 GERMANY MACRO ANALYSIS Political Factors Among the leading European political powers Lead by Social Democratic Party Economic Factors 4th largest economy in the world 2nd Largest exporter 3rd Largest importer Service sector is 70% of GDP Associated with high quality (Adidas, Nivea, Lufthansa) Industry sector is 29.1% Automobile leader (Porsche, Mercedes, Audi, Volkswagen) Agriculture is 0.9% Sources: Damodaran NYU Stern, Moody s, World Bank, IMF Socio Cultural Factors Largest EU country (almost 81M) Multicultural (Immigrations) Architecture, Music, Literature, Sports Technological Factors Leading producer of solar power tech and wind turbines Leader in Bio-Tech and Pharmaceutical

14 GERMANY MACRO ANALYSIS

15 MACRO - BERLIN Sixth most visited city in Europe, with more than 10 million tourists annually. Excellent infrastructure and transportation: Hauptbahnhof (largest European cross station, inaugurated in 2016) and in-progress Brandenburg Airport (third largest in Germany). Significant population increase due to immigration, becoming more international 35,313USD GDP per capita, growing at 1.7%, highest in the country

MACRO - BERLIN 45,000 new businesses in 2014 176,000 jobs created between 2005 and 2012 Adding 17.

16 MACRO - BERLIN 45,000 new businesses in ,000 jobs created between 2005 and 2012 Adding 17.4% to the city s workforce 126 new businesses per 10,000 residents in 2012 Among the top-ten fastest growing startups, eight are located in Berlin`

17 MACRO - BERLIN FASTEST GROWING STARTUPS IN GERMANY

TAXATION & CURRENCY Income taxes: Until 8,004 a year : not taxed From 8,005 until 52 882 a year : tax-level between 14 % to 42 % From 52,882 a year : 42 % From 250,731 a year : 45 % Property taxes:

18 TAXATION & CURRENCY Income taxes: Until 8,004 a year : not taxed From 8,005 until a year : tax-level between 14 % to 42 % From 52,882 a year : 42 % From 250,731 a year : 45 % Property taxes: Property Taxes Real estate tax is levied on real estate in Germany. The tax base is the assessed value of the property. The basic tax rate is 2.6% to 3.5% for Western federal states, 5% to 10% for the Eastern federal states, and 6% for agriculture and forestry.

TAXATION & CURRENCY HOW TO REDUCE TAX? Tip 1: Get married! The German income tax sharply decreases for families (up to 7000 ). It might be a good time to start looking for a wife/husband.

19 TAXATION & CURRENCY HOW TO REDUCE TAX? Tip 1: Get married! The German income tax sharply decreases for families (up to 7000 ). It might be a good time to start looking for a wife/husband. Tip 2: There are number of ways to grab a few more euros out of your gross salary like subscribing to a private health insurance or getting compensated for the commute you do everyday to go to work. It might worth investigating. If you have already bought a flat or a house, you can get tax returns if you decide to renovate it. 1 Euro= South Korean Won

Rent level is low, ranged between $3.5-4.5 /sqm/month, but growing fast.

20 INDUSTRIAL: SOLID FUNDAMENTALS, POOR LIQUIDITY PROS: Supported by E-commerce boom and Industry 4.0. Take-up (Demand) came to a record high of 4.1 MM sq m in 2015, and 2016 is expected to beat that. Rent level is low, ranged between $ /sqm/month, but growing fast. CONS: Limited yield spread compared with other sectors. (A little pricy) 3-year annual transaction volume is only $130M, which could be an issue.

21 HOTEL SECTOR 9th top city in Europe for RevPAR growth with a rate of 3.1% The market is dominated by 3 star hotels, iconic asset would be prime for 4 or 5 star hotel Break down of hotel types

22 HOTEL SECTOR 2017 PIPELINE: 20 new hotels with almost 4000 new rooms. Most are in branded segment (including Amano, Capri by Frasers, Hampton by Hilton, Motel One) Expected hotel growth = 2.7% 2015: Demand: increased 4.2% Occupancy rose to 77.5% up 2.3% from 2014 International demand: increased 9.2% Total transaction volume: $842MM German banks have been more open to new hotel capital structures over the past 5 years

HOTEL: POTENTIAL DEAL Everyone in Berlin has been trying to get ahold of this site for years It is in a prime location in the Mitte It is roughly 30k sf possibility to add square footage on the sides

23 HOTEL: POTENTIAL DEAL Everyone in Berlin has been trying to get ahold of this site for years It is in a prime location in the Mitte It is roughly 30k sf possibility to add square footage on the sides Great retail play with the site currently used as an event space The top boutique hotel brands are very underrepresented.e.g Viceroy, Edition, Ace, Kimpton, Indigo Dream, Thompson, Standard, and the James to name a few

RESIDENTIAL SECTOR rental & price growth => development boom POPULATION Inward migration of younger people into cities Inward migration from abroad

24 RESIDENTIAL SECTOR rental & price growth => development boom POPULATION Inward migration of younger people into cities Inward migration from abroad Over 60% of the population growth is due to inward migration from the European continent. EMPLOYMENT Start-up and IT sector, construction, and hospitality..

25 RESIDENTIAL SECTOR In order to alleviate the housing shortage, Berlin s public housing companies are aiming to build around 54,000 new residential units by Additional subsidies ensure a rise in the number of affordable homes.

26 RESIDENTIAL SECTOR

27 RESIDENTIAL SECTOR Prices more than doubled since 2010

28 RESIDENTIAL SECTOR In the first half of 2016, the average asking price for a condominium apartment in Berlin was around 3,320/sqm, 9.9% more than a year ago,

OFFICE SECTOR 1. The prime rent development indicates that the Berlin office market is in robust shape. It has risen for the third time in succession to its current level of 26.50/sqm/month.

3% in 13 of the 16 submarkets. 3. As in previous years, the first three quarters in Berlin were once again dominated by the office asset class. Office properties generated around 2.

29 OFFICE SECTOR 1. The prime rent development indicates that the Berlin office market is in robust shape. It has risen for the third time in succession to its current level of 26.50/sqm/month. More than 40% of all space take-up was attributable to the strongest sectors: business services providers, the public sector and publishing/media. 2. In Q3, vacancy fell to vacancy rate of 5.3% in 13 of the 16 submarkets. 3. As in previous years, the first three quarters in Berlin were once again dominated by the office asset class. Office properties generated around 2.08bn, reflecting a 63% share in total transaction volume. 4. Blackstone Group recently acquired a building complex that was sold for around 230m., shows that typical value-add investors are still confident in the Berlin office and investment market and that demand remains high, not only for traditional core investments.

rally, 2015 record results of 8.1bn, fueled by the acquisition of the Potsdamer Platz district. 2. We expect transaction volume in 2016 to approach 5bn, significantly surpassing the 10-year average of 4.

30 OFFICE SECTOR Investors Market 1. The Berlin investment market experienced ongoing lively market activity and impressive results, expect a lively end-of-year rally, 2015 record results of 8.1bn, fueled by the acquisition of the Potsdamer Platz district. 2. We expect transaction volume in 2016 to approach 5bn, significantly surpassing the 10-year average of 4.1bn. 3. Foreign capital accounted for 53% of the total transaction volume invested in Berlin by the end of September. Highly foreign investor centric market.

popularity of the German capital combined with stable growth and

31 OFFICE SECTOR Summary 1. We expect demand for office space to remain very high due to the popularity of the German capital combined with stable growth and favorable employment figures in the office sector. 2. Submarket to consider: Center West 3. Typically: Core, Core plus returns.

OFFICE SECTOR Suitable Office Investment The Treptowers is a Four buildings complex of 970,000 Sq.ft a distinctive high-rise in Alt-Treptow district of Berlin.

32 OFFICE SECTOR Suitable Office Investment The Treptowers is a Four buildings complex of 970,000 Sq.ft a distinctive high-rise in Alt-Treptow district of Berlin. The buildings at 125 meters, creates a unified look and is a significant landmark, the situated at the Elsenbruch bridge. Being the largest tower, makes it a prominent feature of berlin skyline. Primarily a high quality asset with prime location in Germany's largest office Core / Core plus investment with stabilized returns expected over long lease market. terms. Suits within the risk return profile Current rentals: $15.4 Million annually, by Allianz Insurance. of KIC. Treptowers office complex

33 Guangbin Zhen Berlin Due Diligence Specialist

34 감사합니다 THANK YOU

Variance (%) Distribution Period 1 July 2018 to 30 September 2018

Variance (%) Distribution Period 1 July 2018 to 30 September 2018 PRESS RELEASE OUE H-Trust reports DPS of 1.28 cents for 3Q2018 Crowne Plaza Changi Airport continues to demonstrate progressive improvements with 6.3% y-o-y increase in RevPAR to S$187 Achieved high occupancy