Nestlé Plant in Timisoara

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NESTLÉ PLANT IN TIMISOARA

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Table of Contents

01 02 03 04

INTRODUCTION THE COUNTRY & THE PROPERTY APPENDICES THE CITY

P.03 P.05 P.12 P.24

2 THE COUNTRY & THE CITY 02 P.05

THE PROPERTY 03 P.12 01 APPENDICES INTRODUCTION 04 P.24

3 NESTLÉ PLANT IN TIMISOARA OPPORTUNITY TO INVEST

Introduction PRODUCT AVAILABILITY INCREASING

CAPITAL AVAILABLE

FINANCING STILL AVAILABLE AT EFFICIENT RATES

CAPITAL MARKET TRENDS FAVORABLE

INTERNAL ECONOMY IS CONSTANT AND WHY INVEST GROWING IN A SUSTAINABLE FASHION IN ROMANIA?

LIQUIDITY IMPROVING

NEW INVESTORS ARE ENTERING/ EXPLORING THE MARKET

THE LOGISTICS AND PRODUCTION INDUSTRY IS ON AN UPWARD TREND

4 INTRODUCTION 01 P.03

THE PROPERTY 03 P.12 02 APPENDICES THE COUNTRY P.24 AND THE CITY 04

5 NESTLÉ PLANT IN TIMISOARA OPPORTUNITY TO INVEST

Romanian Investment Market

Among the major emerging economies in the EU, Romania has Despite a few shortcomings versus some peers in terms of In spite of rising labor costs, Romania still displays a chunky been the best performer in the last couple of decades at a GDP red tape or infrastructure, Romania has other advantages – spread between labor productivity and costs for a lot of growth rate of ~4% per year, outpacing the EU average by for instance, it leads all other OECD member states in terms economic sectors, including manufacturing; for instance, more than twice of productivity growth (by c.47% since 2010 versus almost Romania’s GDP/hour worked is at around 55% of the 27% for Poland or gains hovering around 10% for Hungary or Eurozone’s with labor costs one quarter (22.5%) versus those Czechia) in the EU, while Poland offers a similar productivity (57%) with noticeably higher labor costs (37%) A mix of cheap labor force, qualifications as well as the EU/ NATO member status helped cement Romania’s attractiveness and led to strong capital inflows in services and manufacturing It is worthwhile to note that corruption is no longer seen as operations such a big disruptor; in fact, in an EY survey, only 34% of Also, for manufacturing, Romania still displays a much less Romanian companies agreed that “bribery/corruption happen tight labor market than CEE peers; on an aggregate (country- widely in business in this country” versus 56% in Czechia and wide) level, just 17% of industry companies stated that lack of 66% in Hungary and also 34% in the UK; admittedly, Poland labor was a drag on their growth versus 36% in Czechia and Romania’s strategic location in the Eastern part of Europe, sits a bit better, at 20% almost 50% in Poland and 95% in Hungary with a generous Black Sea coastline offers specific geopolitical advantages

Romania continues to display one of the largest potential GDP expansion rates in the EU (in excess of 4%, some 1 basis points higher than peers like Czechia, Hungary or Bulgaria), highlighting the fact that there is still a lot of untapped growth resources waiting to be unleashed

6 Romania Key Facts n NORTH-WEST REGION

Caras- 8,757 | GDP/capita (EUR) 35% | State aid intensity Severin 2%* | Unemployment rate

BUCHAREST n CENTRAL REGION

N-W Region Central Region S Region N-E Region 7,551 | GDP/capita (EUR) 50% | State aid intensity W Region S-W Region Bucharest S-E Region 3%* | Unemployment rate

*Source: National Prognosis Commission, National Institute of Statistics, Ministry of Public Finance, InvestRomania 2016 *Source: National Commission of Strategy and Prognosis 2018 7 NESTLÉ PLANT IN TIMISOARA OPPORTUNITY TO INVEST

CURRENT STOCK Romanian (major cities in the region)

UKRAINE Industrial Market • TIMISOARA: 410,000 sqm • CLUJ: 230,000 sqm • ARAD: 90,000 sqm Satu Mare Botosani • Many companies own warehouses/industrial buildings, Baia Mare Suceava therefore the actual stock is substantially higher (for e.g. in Timisoara the total stock reaches 800,000 sqm) HUNGARY Bors Salaj MOLDOVA Bistrita Oradea Piatra Neamt Iasi CURRENT VACANCY 2017 Cluj-Napoca A8 Targu Mures • TIMISOARA: ~ 5% M43 Vaslui A11 Miercurea Bacau • CLUJ: ~ 2% 2017, 2018 A10 2017 Ciuc Arad Nadlac A3 • ARAD: > 5% Alba Iulia 2017 Sfantu UKRAINE Gheorghe Timisoara Deva Sibiu Brasov REAL ESTATE COSTS Focsani Galati A6 • HEADLINE RENT: 3.75 - 4 EUR/sqm/month A1 Buzau Resita Tulcea Targu Jiu Braila • SERVICE CHARGES: 0.4 - 0.8 EUR/sqm/month Ramnicu Ploiesti Drobeta Valcea • CONSTRUCTION COST: 350 – 450 EUR/sqm (Class A Targoviste Turnu Severin Pitesti Slobozia warehouses and industrial buildings) 2017 A2 A4 • LAND COST: 15 – 45 EUR/sqm Calarasi SERBIA Slatina BUCURESTI BLACK SEA Craiova Alexandria Constanta Port Giurgiu ADDITIONAL INFO

Legend BULGARIA • Major industries developed in the area: automotive, textile, Existing highway Low stock production Under construction highway Medium stock Planned highway • Availability of highly trained labor force High stock A6 (Bucharest-Alexandria-Craiova-Calafat), A11 (Arad-Oradea) - routes to be determined • Developed infrastructure with projected future deliveries

8 BOTOSANI TOP Labour Potential area Botosani Satu Mare Baia Mare Suceava SATU MARE MARAMURES SUCEAVA

IASI Iasi Oradea Piatra Neamt

BIHOR CLUJ NEAMT Vaslui Cluj-Napoca MURES Bacau VASLUI ARAD Targu Mures BACAU Arad

SIBIU GALATI BRASOV Timisoara Sibiu TIMIS Galati Brasov Braila

Targu Jiu VALCEA PRAHOVA Ploiesti BRAILA Ramnicu ARGES Valcea GORJ Targoviste Hot Spots for Industrial &Hot Spots for Activities Logistics Pitesti DAMBOVITA ILFOV TOP Production Area BUCHAREST Craiova Legend Slatina Constanta LOW HIGH OLT DOLJ CONSTANTA Logistics Labour potential Production (focus on automotive) TOP Logistics Area

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Labour Force Overview FOCUS ON WESTERN ROMANIA

No. OF EMPLOYEES IN 2016 Labour availability as a factor limiting production, % of answers, industrial (UNIT: thousands; AGE: from 15 to 64 years) activities, 4Q rolling average REGION

90 ACTIVITY Romania North-West West

ALL NACE ACTIVITIES 8,166.10 1,120.80 709.6 60

AGRICULTURE, FORESTRY AND FISHING 1,693 193.6 61.7 45

INDUSTRY (EXCEPT CONSTRUCTION) 1,842.30 281.6 295.4 30

15 CONSTRUCTION 674.8 101.2 37.5

0 7 7 7 7 3 3 3 3 9 9 5 5 5 5 8 8 8 8 6 6 6 6 4 4 4 4 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 WHOLESALE AND RETAIL TRADE, 1 1 1 1 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 1 1 1 1 1 1 1 3 4 2 3 3 3 3 3 4 3 2 2 4 2 4 4 2 2 4 2 4 TRANSPORT, ACCOMMODATION AND 1,849.40 263.1 156.9 2 FOOD SERVICE ACTIVITIES BULGARIA CZECHIA HUNGARY POLAND ROMANIA SLOVAKIA

10 Timisoara City

Timisoara is a lively urban center and Romania’s gateway to the West. The city is famous for its timeless European 329,000 metro population architecture, its effervescent cultural life that helped it winning Romania’s western hub the title of European Capital of Culture in 2021, as well as its ever-growing business opportunities.

Timisoara has a strategic location, just 300 km away from 0.8% Budapest and a direct motorway connection with both the Second lowest unemployment rate in Romania Hungarian capital as well as Vienna. The city stands as a regional magnet, drawing in talent from all districts in the Western part of Romania due to its strong educational system €603 gross monthly wage with over 40,000 students, as well as business opportunities CITY FACTS in export-oriented services such as IT&C and manufacturing. Salaries comparable to Bucharest • Main social, economic and cultural The unemployment rate in Timis county is below 1%, the center in the western part of the country second smallest rate in Romania, which helped drive a mild • 3rd largest city in Romania in terms of population increase in recent years which was still the second c. 9% CAGR since 2000 population best nation-wide, after Iasi. GDP/capita has reached around to €13,000 €13,000 by 2017 and saw the most rapid rise in the European • Winner of the title of European Capital Union between 2000 and 2015, averaging a CAGR of 9%, The most rapid rise of PPP GDP/capita in the EU of Culture in 2021 around two times the pace of Budapest or Warsaw over the • The city has a large community same period of time. of foreigners: Germans, Italians, >50,000 companies Hungarians and Serbs in the City • One of the top ten places in the world in terms of internet speed in 2015 A magnet for business

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INTRODUCTION 01 P.03

THE COUNTRY & THE CITY 02 P.05 03 APPENDICES THE PROPERTY 04 P.24

12 Property Description

PLANT ADDRESS 1 Wilhelm Tell Street, Timisoara City, Timis County, Romania SHORT HISTORY The plant is owned by Nestle Romania, PLOT OF LAND DETAILS 21,323 sq. m which exploited it as a food plant until May 2019. The property was bought in 2000, being a part of the old sugar NO. OF BUILDINGS 14 units factory in Timisoara. Upon purchase, Nestle has restored and optimized the property to be a food processor. BUILT AREA 6,541 sq. m The property is located in an industrial and logistic area in the west of TOTAL GLA 12,924 sq. m Timisoara, on the banks of the Bega River. Many international companies are present in the area, such as: Continental GLA OFFICE AREA 2,609 sq. m Contithech, Smithfield, Kromberg & Schubet, ELBA Lighting International. GLA WAREHOUSE AREA 10,072 sq. m

GLA ANNEXES AREA 243 sq. m

ACCESS Wilhelm Tell Street

BEST USE Plant/Warehouse

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Macro Location UKRAINE

Satu Mare Botosani

Baia Mare Suceava MOLDOVA

HUNGARY Bors Legend Salaj Existing highway Oradea Bistrita Iasi Piatra Neamt Under construction highway Cluj-Napoca Planned highway 2017 A8 Targu Mures A6 (Bucharest-Alexandria-Craiova-Calafat), M43 Vaslui A11 (Arad-Oradea) - routes to be determined A11 Miercurea Bacau 2017, 2018 A10 2017 Ciuc Arad Nadlac A3 Alba Iulia 2017 Sfantu UKRAINE Gheorghe Deva Timisoara Sibiu Brasov Focsani Galati A6

A1 Buzau Resita Tulcea Targu Jiu Braila Ramnicu Ploiesti Drobeta Valcea Targoviste Turnu Severin Pitesti Slobozia 2017 A2 A4 Calarasi SERBIA Slatina BUCURESTI BLACK SEA Craiova Alexandria Constanta Port Giurgiu

BULGARIA 14 GIARMATA VII DUMBRAVITA

TRAIAN VUIA INTERNATIONAL Micro Location AIRPORT

GHIRODA

SACALAZ

CITY CENTER A6 (Bucharest-Alexandria-Craiova-Calafat), A11 (Arad-Oradea) - routes to be determined TIMISOARA

MOSNITA VECHE INDUSTRIAL AREA (SOUTH & APAHIDA)

MOSNITA NOUA

UTVIN

CHISODA GIROC

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16 Master Plan

OFFICE AREA

ACCESS GATE 2

OFFICE AREA WAREHOUSE

ANNEXES

PRODUCTION AREA

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Ground Floor

LENGTH 145.10 m

WIDTH 24.40 m

18 First Floor

LENGTH 145.10 m

WIDTH 24.40 m

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20 Cross Sections

HEIGHT 12.87 m

LENGTH 145.10 m

HEIGHT 12.87 m

LENGTH 145.10 m

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Cross Section

HEIGHT 12.87 m

WIDTH 29.77 m

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INTRODUCTION 01 P.03

THE COUNTRY & THE CITY 02 P.05 04 THE PROPERTY APPENDICES 03 P.12

24 About the Seller

Nestlé entered the Romanian market in 1995 and became After Eight, Smarties) (Nestlé Infant Nutrition), Nestlé in September 2009 and has seen a spectacular evolution, one of the most important players in the food and beverage Professional - Out of Home Solutions Division, breakfast bars currently offering over 20 professional quality coffee varieties. market, most of which are leaders in the category. Nestlé and cereals (Nestlé Fitness, Musli, Nesquik, Chocapic, etc.) Nespresso, the global reference name for luxury capsule Romania's portfolio includes a wide range of products from and animal feed (Purina). NESCAFÉ Dolce Gusto opened coffee, is officially present in Romania as a luxury division of different categories to meet consumer demand: beverages the market of capsule-based beverage systems in Romania the Nestlé Group since 2014. (NESCAFÉ, Nesquik), sweets (JOE, Nesquik, Kit Kat, Lion, with the launch of the first NESCAFÉ Dolce Gusto appliance

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Offering Process

1. INTRO 2. OFFERING DOCUMENTATION 5. KEY CONTACTS The Seller is looking to sell this asset. The purpose of this Participants have been required to sign a confidentiality investment memorandum, distributed by Colliers on behalf agreement prior to receipt of this Investment Memorandum. of the Seller, is to serve as a basis for negotiating with Enough information is included in the marketing materials Prospective Investors the key terms of Sale. to allow investors to accurately analyze and appraise the opportunity. Participants will also be provided, if needed, with The process will begin with the provision of marketing additional information or documentation, but a full access to materials and financial package present investment the project’s data room will be provided only to the selected memorandum being part of these materials), followed by investor entering the exclusivity period. answers to additional requests. There will then be a bidding Laurentiu DUICA session, from which selected investors will be invited to

Participate in a meeting with Seller representatives. The 3. VISITS Director | Partner seller's preference (but not obligation) is to provide exclusivity All future visits of the factory will be announcing in advance Industrial Agency to one party following the final bids and meetings. The with a minim 10 working days and will be establish only if the +40 73 755 49 73 exclusive investor will be invited to conduct Due diligence of owner will approve that visit. Will be approved with priority the [email protected] the asset, complete the negotiation phase and conclude the request which will be forwarded with a firm purchase intent. binding sale purchase agreement. An indicative timetable will be provided in a separate process letter. Please note that the Seller is not required to accept any offer and reserves the 4. DUE DILIGENCE right to withdraw, or any or all offers that may be received. Scanned copies of all documents will be made available to the The Seller also reserves the right to amend the sale process. exclusive party via a Virtual Data Room. After the selection of the final bidder, said party shall prepare a list of due diligence team members, who will be granted access to the data room. Any costs (legal, tax, real estate advisors, environmental, technical and any other) associated with the due diligence review conducted by the potential purchaser are to be borne by the bidder and in any case will not be refunded by the Seller.

26 Disclaimer

This document has been prepared by Colliers International accuracy or completeness and such information should not be and is being delivered to Prospective Purchasers to assist relied upon by Prospective Purchasers without independent in assessing the possible acquisition of The Property. This investigation and verification. In furnishing the document, the Confidential Investment Memorandum does not purport to be Seller and/ or Colliers undertake no obligations to provide all-inclusive or to contain all the information that a Prospective the recipient with access to additional information. Any Purchaser may require. This brochure is for information and information related to the property which has been or will be discussion purposes only and does not constitute an offer or a obtained from the Seller, Colliers, or any other person, by a contract. This Investment Memorandum provides information Prospective Purchaser, has been prepared and provided solely relating to certain physical and location characteristics of the for the convenience of the Prospective Purchaser and will not property. The Seller and Colliers expressly disclaim any and be warranted to be accurate or complete and will not form all liability for any errors or omissions in the document or part of the terms of an agreement of purchase and sale. This any other written or oral communication transmitted or made brochure is the property of Colliers International and may be available to Prospective Purchasers. If any information relating used only by parties approved by Colliers to the Seller or to The Property, in addition to the information provided herein, is provided at any time, orally or otherwise, by the Seller or by Colliers, such information is provided as a convenience only without representation or warranty as to its

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Laurentiu DUICA

Director | Partner Industrial Agency +40 73 755 49 73 [email protected] CONTACT