Innovative Investment solutions for Institutional investors

BNP Paribas Reim Germany Innovative Investment solutions for Institutional investors INVESTMENT MANAGEMENT Real Estate for a changing world

Challenging markets require experienced asset managers with a stable local network. Only then, institutional investors can be sure to get the best possible advice. BNP Paribas REIM fulfils this requirement. Reinhard Mattern CEO BNP Paribas REIM Germany

INNOVATIVE Investment SOLUTIONS FOR INSTITUTIONAL INVESTORS BNP paribas Real Estate Investment Management BNP Paribas Real Estate is a subsidiary of the BNP Paribas financial group and offers with BNP Paribas Real Estate Investment Management (BNP Paribas REIM) a wide range of products and services in all sectors of the European real estate markets for institutional and private investors. Due to its presence in 36 countries and its worldwide network of alliance partners, BNP Paribas Real Estate is one of the largest real estate service providers in Europe. Globally, we are active in the business lines Transaction, Consulting, Valuation, Property Management, Property Development and Investment Management. BNP PARIBAS REIM The business line Investment Management is responsible for the asset management on behalf of institutional and private investors and manages numerous funds and mandates in Europe. We offer our international clients comprehensive and tailormade asset management solutions as well as additional services. The investment spectrum includes office, retail, logistics, hotel, healthcare and residential in Europe and Asia. Thereby, BNP Paribas REIM benefits from the extensive real estate expertise of the entire group, but at the same time it is strictly separated from the other five business lines and operates completely independent. Investment Management CURRENT KEY FIGURES Present in 8 countries Belgium, France, Germany, Italy, Netherlands, Luxembourg, United Kingdom and Spain More than 24 bn assets under management More than 1.6 bn new cash inflows in 2016 More than 110 institutional clients About 300 employees in Europe Approx. 3.9 bn transaction volume in 2016 2 3

BNP paribas Reim GErmany As an important part of this international REIm-network, BNP Paribas REIm Germany is one of the market leaders for institutional Investment management in Germany, benefiting from its strong position in the German market place. As an established real estate investment and asset manager, our focus lies on providing indirect investment products for institutional clients as well as services for managed and administrated products. For our customers we invest in real estate as well as in loans. As an AIF-manager we can look back on nearly 60 years of success in the real estate fund business and we are one of the market leaders for real estate special funds in Germany. YOUR PROFESSIONAL PARTNER MODERN REAL ESTATE MANAGEMENT As an investment management company (Kapitalverwaltungsgesellschaft; referred to hereafter by its German abbreviation KVG ), we stand for active and farsighted action. Competence and high service quality are the hallmarks of our business policy. We have demonstrated our market and branch competence as well as our innovativeness not least by the introduction of real estate debt funds onto the German market and the opening up of new asset classes and investment markets. Especially when dealing with real estate investments geared to the long-term, know-how and the willingness to innovate are key qualities. Like any other asset class, real estate has to be actively and professionally managed with an eye to results. The demands made of a real estate investment company are identical with those in the stocks and bond sector. We have focussed our company with regard to set-up, investment process, research and strategy, financing, reporting and controlling in such a way that we are able to meet this challenge 100%. Our professional fund management concentrates on achieving what the customer wants and jointly defined investment strategies. WIDE RANGE OF SERVICES In addition to classical German open ended real estate special funds according to German Capital Investment Code (Kapitalanlagegesetzbuch KAGB ), we also offer our clients a wide range of additional concepts in the field of real estate. This includes amongst other things Luxembourg vehicles, fund-of-funds, real estate debt funds, closed ended funds, service and master KVG solutions. In the scope of individual mandates we assume also selected asset management services and transaction supports. Managed funds according to German and Luxembourg law Administered fund products Separate accounts Real estate funds Real estate debt funds Service KVG / Master fund platform (services for investors and asset managers) Asset Management and Advisory Business

INNOVATIVE Investment SOLUTIONS FOR INSTITUTIONAL INVESTORS The company s success in 2016 was primarily characterised by further internationalisation and diversification of our products and services. This also contributed to the transaction volume of EUR 1.3 bn that we achieved in the financial year 2016 out of Germany. I sabella Chacón Troidl Head of Real Estate Transaction BNP Paribas REIM Germany INVESTMENT COUNTRIES Currently we are invested in 15 countries in Europe and Asia. also work together in tandem with tried and tested partners in We are able to use the whole BNP Paribas Group network but areas such as transactions or property management. Finland Sweden Netherlands United Kingdom Poland Germany Belgium Czech Republic Japan Austria France Switzerland Italy Portugal Spain 4 5

REAL ESTATE FUNDS High-Yield SPECIAL FUND SOLUTIONS Real estate special funds are a profitable investment for professional and semi-professional investors. In comparison with open-ended public funds, they enjoy considerably more liberal framework conditions. Thus, with just a few exceptions, they do not have to comply with any legal investment limits and are required to fulfil fewer administrative obligations. This enables the investor and the investment management company (KVG) to carry out implement investment goals to the letter. INDIVIDUAL SOLUTIONS FOR YOUR INVESTMENT Luxembourg: FLEXIBLE, UNBUERAUCRATIC, SECURE BNP Paribas REIM Germany issues focussed subject-oriented special funds that are tailor-made for investors given their investment goals and risk appetite. A strict investment approach is pursued based on the results of a permanent risk-return analysis of the European real estate markets. USing ADVANTAGES OF SPECIAL FUNDS PROFESSIONALLY We also design tailor-made investment solutions according to Luxembourg law for our institutional investors, in addition to special funds complying with the German Capital Investment Code. As part of this policy, we are able to call on our own longestablished skills as well as local expertise in Luxembourg. These products are not only of interest to German but also to foreign investors, because they are familiar with the legal environment and valuations are carried out in accordance with international standards. Open ended real estate special funds according to German Capital Investment Code are an attractive investment for institutional investors such as insurance companies or pension funds/schemes. Compared with a direct investment, investors with special funds are highly flexible also internationally. They concentrate on their core business and keep administrative effort to a minimum. At the same time, a secure reserves cushion is accumulated enabling returns to be coordinated and, contrary to the direct investment, it is possible to use external financing. This yields a variety of advantages in structuring the investment, particularly in an international environment. BNP Paribas REIM Germany s client portfolio (%) Pension schemes Pension funds 18 Insurance companies Foreign customers Banks 2 30 As securities, shares in special funds are easy to deal with. In the case of insurance companies, they form part of the security assets and are classified as part of the real estate quota. 20 30

INNOVATIVE Investment SOLUTIONS FOR INSTITUTIONAL INVESTORS DEBT Solutions Flexible MandateS Investments in real estate debt present an interesting alternative to traditional real estate investments. This investment class is becoming increasingly popular among institutional investors. In the current market environment, real estate debt offers attractive yields compared with sovereign bonds and covered bonds at a similar risk profile. Customised structuring A LINK BETWEEN REAL ESTATE AND CAPITAL MARKET EXPERTISE Current market conditions call for flexible products. BNP Paribas REIM Germany developes customised debt strategies and identifies effective structures via regulated and non-regulated vehicles in Germany and Luxembourg as well as vehicles that can be directly included in investor balance sheets. By defining the right fund term and investment limits, the return/risk profile of real estate debt investments can be adjusted to investor yield objectives and risk preference. BNP Paribas REIM Germany links many years of both real estate and capital market know-how in all areas of the company. Our real estate debt portfolio managers, who themselves have a long-established track record in financing commercial properties, can draw on this know-how. Our research department carries out the same analysis of loans backed by real estate as it does in the case of a direct real estate investment. The detailed knowledge obtained as a result of this process provides the investor with a high degree of security and therefore limits his risk in a certain way. DEBT ACQUISITION Sourcing real estate debt Effective debt, market and asset analysis / risk assessment Term sheets, cash flow analyses and scenario calculations, detailed investment proposals STRUCTURING & TRANSACTION Transaction structuring for balance sheet, fund and securitisation Negotiating and documenting debt and guarantees Coordinating financing partners and external service providers Reporting Monthly reports, e.g., statement of net assets, income and loss VAG and Solvency II reporting Annual financial statements incl. auditor s report, etc. DEBT MONITORING Debt monitoring from contract signing to repayment Contact for investors, borrowers, syndicate members Risk monitoring, sensitivity analyses, credit checks, etc. 6 7

Service / Master KVG COMPREHENSIVE SERVICES BNP Paribas REIM Germany offers both investors who manage their own real estate portfolio and also asset managers the administration of their properties or real estate assets in a fund as part of a Service or Master KVG mandate. Service KVG Master KVG Our Service KVG product range is directed towards German and international asset managers who are planning real estate funds. They can use our services without having to establish their own investment management company (KVG) according to the German law. The range of services offered is agreed individually together with the asset manager. But institutional investors who themselves operate as asset managers of their own assets can also use the Service KVG product range. They select the services they need from a building-block system. Based on the fund administration, additional modules, such as for example reporting or market research, can be added individually. We can also take over the tax and legal structuring of the investment, should this be desired. For institutional investors, the transfer of properties from the directly-held portfolio into a fund also presents an interesting opportunity. Under certain circumstances, even a transfer exempt from real estate transfer tax is possible as part of a roll-up fund. The Master KVG product range is intended for institutional investors who wish to concentrate their real estate assets into a master fund. In addition to properties and property companies, it is also possible to integrate, amongst other things, REITs, real estate shares, fund units and company shares or real estate derivatives and investments in PPP project companies as well as real estate loans. The advantages of a master fund include uniform reporting via BNP Paribas Germany, the chance to review individual subportfolios, the release of administrative resources and the use of several asset managers. Since BNP Paribas REIM Germany is also in possession of the German Federal Financial Supervisory Authority (BaFin) permit to manage special funds focussed on investments in securities and debt, it is possible to concentrate the most diverse real estate investments in one single fund. As a Service KVG, BNP Paribas REIM Germany has many years of experience in working together with asset managers and investors. Based on its outstanding IT-infrastructure, an ideal combination of different parties as well as compliance with all complex regulatory requirements can be ensured.

INNOVATIVE Investment SOLUTIONS FOR INSTITUTIONAL INVESTORS We are one of the leading service providers in the field of Service and Master KVGs. Our customers can select from our wide range of sources according to the building-block system. Bianca Kraus Head of Customer and Fund Relations BNP Paribas REIM Germany 8 9

SERVICES and Service Portfolio A comprehensive advice and customer-oriented service is essential for a long-term rentable and for the investor successfully investment. For this reason BNP Paribas REIM Germany supports its customers on all issues relating to their real estate investment in a professional and individual manner. DETAILED MARKET ANALYSES OPTIMUM FUND ADMINISTRATION Our research department constantly analyses attractive locations, identifies real estate market cycles and opens up new markets. This enables the pre-conditions for professional fund management to be created and highly profitable properties to be filtered out of the multiplicity of possible options. STRATEGIC PORTFOLIO ANALYSIS Customers benefit from the analysis of an already existing real estate portfolio as well as from an individual advice on strategy on issuing a new fund. Investment targets and required returns, the structure of the investment as well as opportunities to optimise the tax situation are developed together. We offer our customers a first-class service in the administration of funds. This is based on our IT system that is perfectly attuned to our business in tandem with our many years of experience in fund business. STRONG TRANSACTION MANAGEMENT Proximity to the markets and the various market players enables us to identify not only the ideal time to purchase properties but also interesting sales opportunities. This enables market cycles to be used in the investor s interests and the value of the whole portfolio and its return to be steadily increased. ACTIVE PORTFOLIO MANAGEMENT In portfolio management department, the investment strategy defined is implemented, constantly reviewed and optimised from the point of view of return and risk. Transaction management Portfolio management Asset management fund Portfolio analysis Fund set-up and administration Credit and liquidity management Market research Individual reporting

INNOVATIVE Investment SOLUTIONS FOR INSTITUTIONAL INVESTORS MODERN ASSET MANAGEMENT INDIVIDUAL REPORTING Our asset management team consisting of experts in the fields of administration, letting and engineering make regular visits to the property and monitor all processes from purchase through management right up to sale. Transparent (online) reporting tailored to the needs of the customer ensures comprehensive information adapted to the individual investor s system and reporting standards at all times. INTELLIGENT CASH MANAGEMENT Our experts are able to optimise the return on equity at both the property and the portfolio level through intelligent liquidity and credit management. established infrastructure with experienced employees and clearly defined processes Complete in-house value creation chain extended permit to manage properties, securities and debt Part of one of the most effective real estate networks in the whole of Europe but still with independence from other business lines Stable parent group with received award World s best bank ADVANTAGES AT A GLANCE Our expertise your advantage 10 11

BNP Paribas real Estate Investment Management BNP Paribas Real Estate Investment Management Germany BNP Paribas Real Estate Investment Management International Reinhard Mattern CEO Lilli-Palmer-Straße 2 80636 München Germany Tel.: +49 89 12 173 166 reinhard.mattern@bnpparibas.com Bianca Kraus Customer & Fund Relations Tel.: +49 89 12 173 318 bianca.kraus@bnpparibas.com Tobias Bucher Product & Business Development Tel.: +49 89 12 173 219 tobias.bucher@bnpparibas.com www.reim.bnpparibas.de FRANce Sigrid Duhamel 167, quai de la bataille de Stalingrad 92867 Issy-les-Moulineaux Tel.: +33 1 47 59 22 44 sigrid.duhamel@bnpparibas.com Marc Sillon Tel.: +33 1 65 55 27 57 marc.sillon@bnpparibas.com ITALy Ivano Ilardo, MRICS Via Carlo Bo, 11 20143 Milan Tel.: +39 02 58 33 14 63 ivano.ilardo@bnpparibas.com Massimo Tirabella Tel.: +39 06 42 00 60 29 massimo.tirabella@bnpparibas.com Netherlands Casper van der Woude Antonio Vivaldistraat 54 1083 HP Amsterdam Tel.: +32 485 18 16 55 casper.vanderwoude@bnpparibas.com SPAiN Gonzalo Bueno María de Molina, 54 28006 Madrid Tel.: +34 914 36 55 31 gonzalo.bueno@bnpparibas.com Publisher and copyright: BNP Paribas REIM Germany GmbH I Status: September 2017 Realisation: pander visuelle kommunikation, Muncih I Photograph: Vincent Fillon United Kingdom Martin Francis 5 Aldermanbury Square London EC2V 8HR Tel.: +44 207 389 60 58 martin.francis@bnpparibas.com LUXEmBoURG Laurent Ternisien 44, avenue J.F. Kennedy 1855 Luxembourg Tel.: +352 26 26 06 33 laurent.ternisien@bnpparibas.com Belgium Casper van der Woude Avenue Louise - 235 - Louizalaan 1050 Brussels Tel.: +32 485 18 16 55 casper.vanderwoude@bnpparibas.com PROperty DEVELOPMENT TRANSACTION CONSulting VALUATION PROperty MANAGEMENT INVESTMENT MANAGEMENT Real Estate for a changing world