VALUATION REPORT PROJECT ALLSTAR 6 Office Assets located in Milan and Rome, Italy JPMorgan Chase Bank N.A. as Lender and its affiliates in respect of other capacities and/or roles in respect of the transaction Valuation Date: 28 May 2018 VALUATION REPORT 2 TABLE OF CONTENTS 1 VALUATION REPORT 2 PROPERTY REPORTS 3 MARKET COMMENTARY 4 LETTER OF INSTRUCTION VALUATION REPORT 3 Legal Notice and Disclaimer This valuation report (the “Report”) has been prepared by CBRE Limited (“CBRE”) exclusively for JPMorgan Chase Bank, N.A. (“JPMorgan”) (the “Client”) in accordance with the terms of engagement entered into between CBRE and the client dated 7 June 2018 (“the Instruction”). The Report is confidential to the Client and any other Addressees named herein and the Client and the Addressees may not disclose the Report unless expressly permitted to do so under the Instruction. Where CBRE has expressly agreed (by way of a reliance letter) that persons other than the Client or the Addressees can rely upon the Report (a “Relying Party” or “Relying Parties”) then CBRE shall have no greater liability to any Relying Party than it would have if such party had been named as a joint client under the Instruction. CBRE’s maximum aggregate liability to the Client, Addressees and to any Relying Parties howsoever arising under, in connection with or pursuant to this Report and/or the Instruction together, whether in contract, tort, negligence or otherwise shall not exceed the lower of: (i) 25% of the value of the property to which the Instruction relates on the date of the Valuation; or (ii) €75 million (Seventy Five Million Euro); and Subject to the terms of the Instruction, CBRE shall not be liable for any indirect, special or consequential loss or damage howsoever caused, whether in contract, tort, negligence or otherwise, arising from or in connection with this Report. Nothing in this Report shall exclude liability which cannot be excluded by law. If you are neither the Client, an Addressee nor a Relying Party then you are viewing this Report on a non-reliance basis and for informational purposes only. You may not rely on the Report for any purpose whatsoever and CBRE shall not be liable for any loss or damage you may suffer (whether direct, indirect or consequential) as a result of unauthorised use of or reliance on this Report. CBRE gives no undertaking to provide any additional information or correct any inaccuracies in the Report. None of the information in this Report constitutes advice as to the merits of entering into any form of transaction. If you do not understand this legal notice then it is recommended that you seek independent legal advice. VALUATION REPORT 4 1 VALUATION REPORT VALUATION REPORT 5 VALUATION REPORT CBRE Limited Henrietta House Henrietta Place London W1G 0NB Switchboard +44 (0) 20 7182 2000 Fax + 44 (0) 20 7182 2001 Report Date 06 July 2018 Addressee JPMorgan Chase Bank N.A. as Lender and its affiliates in respect of other capacities and/or roles in respect of the transaction Floor 17 25 Bank Street Canary Wharf London E14 5JP For attention of: Joanna Leszczynska The Property Project AllStar – Italian portfolio of 6 office buildings stated in the ‘Schedule of Market Values’. Property Description 5 office buildings in Milan and 1 office building in Rome. Ownership Purpose Development and Investment. Instruction To value the unencumbered freehold-equivalent interests in the properties on the basis of Market Value as at the valuation date in accordance with the terms of engagement entered into between CBRE and the addressee dated 7 June 2018. Valuation Date 28 May 2018 Capacity of Valuer External Valuer, as defined in the RICS Valuation – Global Standards 2017. VALUATION REPORT 6 Purpose Secured Lending only. Total Market Value €224,700,000 (Two Hundred and Twenty-Four Million, Seven Hundred Thousand EUROS) excluding VAT, as shown in the Schedule of Capital Values set out below. Our opinion of Market Value is based upon the Scope of Work and Valuation Assumptions attached, and has been primarily derived using comparable recent market transactions on arm’s length terms. We have valued the Properties individually and no account has been taken of any discount or premium that may be negotiated in the market if all or part of the portfolio was to be marketed simultaneously, either in lots or as a whole. Total Vacant €199,900,000 (One Hundred and Ninty-Nine Possession Value Million, Nine Hundred Thousand EUROS) excluding VAT, as shown in the Schedule of Capital Values set out below. Total Stabilised Value €303,200,000 (Three Hundred and Three Million, Two Hundred Thousand EUROS) excluding VAT, as shown in the Schedule of Capital Values set out below. Special Assumptions Market Value under the Special Assumption that the Properties are vacant (Vacant Posession Value) and Stabilised Value (Market Value under the Special Assumption that as at the valuaitn date renovations are completed as proposed by the borrower are completed and the properties re-let). Security We are of the opinion that the property interests provide suitable security for mortgage purposes although we have not been provided with the terms of the loan in contemplation and cannot therefore comment on their suitability having regard to the nature of the Property. Compliance with The valuation has been prepared in accordance with Valuation Standards the RICS Valuation – Global Standards 2017 which incorporate the International Valuation Standards (“the Red Book”). We confirm that we have sufficient current local and national knowledge of the particular property market VALUATION REPORT 7 involved, and have the skills and understanding to undertake the valuation competently. Where the knowledge and skill requirements of The Red Book have been met in aggregate by more than one valuer within CBRE, we confirm that a list of those valuers has been retained within the working papers, together with confirmation that each named valuer complies with the requirements of The Red Book. This Valuation is a professional opinion and is expressly not intended to serve as a warranty, assurance or guarantee of any particular value of the subject property. Other valuers may reach different conclusions as to the value of the subject property. This Valuation is for the sole purpose of providing the intended user with the Valuer’s independent professional opinion of the value of the subject property as at the valuation date. Assumptions The property details on which each valuation is based are as set out in this report. We have made various assumptions as to tenure, letting, town planning, and the condition and repair of buildings and sites – including ground and groundwater contamination – as set out below. If any of the information or assumptions on which the valuation is based are subsequently found to be incorrect, the valuation figures may also be incorrect and should be reconsidered. Variation from Please refer to the individual property reports for Standard information regarding specific assumptions. Assumptions Verification We recommend that before any financial transaction is entered into based upon these valuations, you obtain verification of any third-party information contained within our report and the validity of the assumptions we have adopted. We would advise you that whilst we have valued the Properties reflecting current market conditions, there are certain risks which may be, or may become, uninsurable. Before undertaking any financial transaction based upon this valuation, you should satisfy yourselves as to the current insurance cover and the risks that may be involved should an uninsured loss VALUATION REPORT 8 occur. Valuer The Property has been valued by a valuer who is qualified for the purpose of the valuation in accordance with the Red Book. Conflicts of Interest We previously valued the subject proerpties for you for secured lending purposes as at 1 June 2017. As you are aware, we have previously valued all of the assets for accounts and loan security purposes. This includes a valuation of the following assets on behalf of Investitori SGR S.P.A. in December 2016: - Piazzale Lodi, 3 - Viale Piero e Alberto Pirelli, 27 We valued the following on behalf of Allianz until 2016 - Piazzale Loreto, Viale Monza 2 - Pazza Velasca, 7/9 We valued the following on behalf of Deutsche Bank in November 2016: - Corso di Porta Romana 13 All mandates have been completed. We have disclosed the above to you at the quoting stage and with this knowledge you have approved our appointment for this instruction. Reliance This report is for the use only of the party to whom it is addressed for the specific purpose set out herein and no responsibility is accepted to any third party for the whole or any part of its contents. Publication Neither the whole nor any part of our report nor any references thereto may be included in any published document, circular or statement nor published in any way without our prior written approval of the form and context in which it will appear. VALUATION REPORT 9 Such publication of, or reference to this report will not be permitted unless it contains a sufficient contemporaneous reference to any departure from the Red Book or the incorporation of the special assumptions referred to herein. Yours faithfully Yours faithfully Graham MacMillan MRICS Laura Mauri MRICS Senior Director Executive Director RICS Registered Valuer RICS Registered Valuer For and on behalf of For and on behalf of CBRE Limited CBRE Valuation S.p.a. T: +44 (0) 20 7182 2699 E: [email protected]