Terms of Reference Addressee: Morgan Stanley Collateral Valuation Team Morgan Stanley Bank N.A

30 Warwick Street London W1B 5NH tel +44 (0)20 7493 4933 fax (0)20 7087 5555

www.jll.co.uk

Morgan Stanley Collateral Valuation Team Your ref Morgan Stanley Bank N.A. Morgan Stanley Mortgage Capital Holdings LLC Our ref JLL Project MEG 1585 Broadway, 25th Floor New York Direct line +44 (0) 207 087 5786 New York 10036 Direct fax +44 (0) 207 087 5555

[email protected]

05/03/2019

Dear Sir

Terms of Reference Addressee: Morgan Stanley Collateral Valuation Team Morgan Stanley Bank N.A. Morgan Stanley Mortgage Capital Holdings LLC 1585 Broadway, 25th Floor New York New York 10036

Property Address: Portfolio of 17 Assets located in Finland as per asset list attached (Appendix A) (“The Property”)

Reliance: This report was prepared for and may be relied upon by Morgan Stanley Bank, N.A., Morgan Stanley Mortgage Capital Holdings LLC, and their respective affiliates and successors and assigns (collectively, “Morgan Stanley”) with respect to any loan(s) placed upon the property (or on direct or indirect ownership interests in the owner of the property) described in the report. This report may also be relied upon by: (i) Morgan Stanley or its designee, in its capacity as Administrative Agent (or any analogous role) on behalf of lenders in the lending syndicate, and the successors and assigns of each of the foregoing; and (ii) Any entity that becomes a finance party in accordance with the related credit agreement or facility agreement. The valuation shall be capable of being relied upon by 1) Morgan Stanley Bank N.A. or any of its affiliates, 2) any entity that becomes a Finance Party in accordance with the terms of the Senior Facility Agreement, 3) any entity that becomes a Finance Party in accordance with the terms of the Mezzanine Facility Agreement 4) the Senior Facility Agent on behalf of the Senior Lenders and 5) the Mezzanine Facility Agent on behalf of the Mezzanine Lenders The valuation shall be in a form and the valuer shall permit that the valuation to be included in an Offering Memorandum or prospectus (including responsibility taken for the valuation and confirmation of no material change to value confirmation stated in any Offering Memorandum or prospectus) (i) the Valuation or a reference to and summary of it (and the methodologies and concepts on which it is based) may be included in any information

Jones Lang LaSalle Limited Registered in England & Wales Number 1188567 Registered Office 30 Warwick Street, London W1B 5NH

memorandum, offering circular, registration statement or similar document as may be required to comply with any applicable laws, regulations or official guidelines relating to the issuance of or investment in any securitisation of a loan related to the subject of the Valuation; and (ii) The Valuation or references to it may be included in any document provided to any potential providers of finance and their directors, officers, employees, agents and professional advisors in connection with any syndication or securitisation in relation to the financing. provided that: (i) all relying parties shall be bound by the same liability exclusions and limitations, and that our liability shall be no greater as a result of extending reliance to additional parties; (ii) you confirm for and on behalf of all such finance parties that the exclusions and limitations are accepted. (iii) nothing in this clause shall permit any quoting or disclosure intended to form part of any public offering. Save in respect of our liability for death or personal injury caused by our negligence, or the negligence of its employees, agents or subcontractors or for fraud or fraudulent misrepresentation (which is not excluded or limited in any way): a) we shall under no circumstances whatsoever be liable, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, for any loss of profit, loss of revenue or loss of anticipated savings, or for any indirect, special or consequential loss arising out of or in connection with this report; and b) our total liability in respect of all losses arising out of or in connection with this report, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, shall not exceed the lower of €25,000,000 or 25% of the reported Market Value. This amount shall be an aggregate cap on our liability to all relying parties together. The Valuation shall be disclosed on a non-reliance basis to: • Agents, trustees and advisers of the Addressees • Affiliates, employees, officers, directors and auditors of the Addressees • Any servicer of any loan under any related credit facility (and advisers to such servicer) • Governmental, banking, taxation or other regulatory authority • As required by law, court order or regulation in connection with legal or arbitration proceedings • Any prospective purchaser, transferee or assignee of, participant in, or hedge counterparty in respect of, any related loan, mortgage secured by, the Property or any direct or indirect ownership interests in the owner of the Property

• Any entity that becomes an agent or senior facility agent on behalf of lender-parties to a credit agreement • To or pursuant to rules of a stock exchange, listing authority or similar body • To any rating agency actually or prospectively rating any securities issued in connection with a securitisation of any loan related to the subject of the Valuation and its advisers • Any actual or prospective investor in any securities issued in connection with a securitisation of any loan related to the subject of the Valuation , and their advisers

Borrower: M7 Real Estate

Tenure: 15 Freehold and 2 Leasehold properties. Please refer to the individual property reports for more details.

Valuation Date: 22 February 2019

Instruction Date: 01 March 2019

Instruction and Purpose of Valuation: In accordance with your letter of engagement (attached at Appendix C) we are instructed to provide you with a report and valuation for loan security purposes.

Proposed Loan Details: Not provided

Purchase Price: N/A – we understand the purpose of the valuation is for refinancing.

Basis of Valuation: We confirm that our valuation and report has been prepared in accordance with the current RICS Valuation – Global Standards 2017 published by the RICS (the RICS Red Book) on the basis of Market Value as defined in Appendix D. Market Value: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. The report is subject to, and should be read in conjunction with, the attached General Terms and Conditions of Business and our General Principles Adopted in the Preparation of Valuations and Reports which are attached in Appendix D. No allowance has been made for any expenses of realisation, or for taxation (including VAT) that might arise in the event of a disposal and the property has been considered free and clear of all mortgages or other charges that may be secured thereon. We have assumed that in the event of a sale of the properties, they would be marketed in an orderly manner and would not all be placed on the market at the same time.

We have additionally provided our opinion of Market Value under the Special Assumption of Vacant Possession.

Software: The valuation has been undertaken using proprietary valuation software which is excel based.

Inspection: The properties have been inspected specifically for this valuation. All significant parts of the property were inspected. The properties were inspected between 31 January 2019 and 1 March 2019 by Simo Hännikäinen, Anni Kontturi, Tero Lehtonen and Maria Sirén. We understand that we saw representative parts of the property and we have assumed that any physical differences in parts we did not inspect will not have a material impact on value.

Personnel: The valuations have been prepared by Simo Hännikäinen, Anni Kontturi, Maria Sirén and Mikael Vitikainen under the direction of Tero Lehtonen MRICS, Senior Director. We confirm that the personnel responsible for this valuation are in a position to provide an objective and unbiased valuation and are competent to undertake the valuation assignment in accordance with the RICS Valuation – Global Standards 2017.

Status: In preparing these valuations we have acted as External Valuers, subject to any disclosures made to you.

Disclosure: We have previously disclosed to you any recent involvement in these properties.

Assumptions: We have made the following Assumptions: ■ Rents in Finland are sometimes paid on a gross basis (including service charges or ‘maintenance rent’). Since this varies according to individual lease contracts the conventional approach applied in Finland for valuations is to include all contracted rental income and additional service charge income, and deduct the full property operational costs. The difference between the two is therefore the non-recoverable portion of costs borne by the landlord. For this reason the rents shown on the DCF Rent Roll are the grossed-up rents including service charges. ■ The same principle applies in the application of market rents. The rental comparables referenced in this report have been analysed according to the specific bases of rent applicable to the comparable, some being gross and some being net. In cases where the comparable is net, a market average service charge rate (€/sqm) is added to the market rent to derive a gross basis for the applied market rent. ■ We have made assumptions regarding the level of operating costs and capital expenditures adopted in our valuations based on a review of the available technical, legal and environmental Due Diligence reports that have been made available to us, and a review of the actual operational cost and capex budgets as provided by M7 Real Estate. The adopted costs reflect our

opinion of the reasonable level of costs that would incurred in the ongoing management of the properties by a typical owner / operator.

Sources of Information: We have inspected the premises and carried out all the necessary enquiries with regard to rental and investment value, planning issues and investment considerations. We have not carried out a building survey or environmental risk assessment. We have not measured the premises and have relied on the floor areas provided. We have been provided with the following information, which we have relied upon: Information Received Details Tenancy schedule Dated 31.12.2018 Leasing tracker, dated 28.1.2019 Updated information of new leases Service charges per asset and EREIP IV Finland – SC per asset 2019 leakage 2019 Operating expenses, budget 2019 Dated 12.12.2018 Business plan including capex plan Summary overview of capex and opex budgets Line Item Capex Budget Including breakdown of capex budget into items TDD Prepared by JLL, dated 19 November 2018 and revised on 22 November 2018. EDD Prepared by Ambiente Ltd, dated July-November 2016. LDD Prepared by Roschier, dated 14 November 2018. Legal DD for Jokelantie 5, Raahe was not received. LDD Overview Report Borenius 20 February / 04 March 2019 Certificate of title for all properties Various – as per Data Room Leasehold and freehold specs Included information of the lease period of plots.

Floor plans, photographs of the rent comparables and/or a rent comparables map have not been included in our property reports. This is because they are not readily available and furthermore it is not standard practice to include such information within these jurisdictions.

Market Value: €84,100,000 (EIGHTY-FOUR MILLION ONE HUNDRED THOUSAND EUROS) (Aggregate value of the individual properties)

Purchaser’s Costs: As is usual in the Finnish market, purchaser’s costs are not included in the valuation. The local market typically operates on a gross yield basis (Net Rent / Market Value). The values reported are the ‘net’ Market Values. Any transaction costs incurred in an acquisition would be in addition to the net price paid.

Confidentiality and Publication: Finally, and in accordance with our normal practice we confirm that the Report is confidential to the party to whom it is addressed for the specific purpose to which it refers. No responsibility whatsoever is accepted to any third party and neither the whole of the Report, nor any part, nor references thereto, may be published in any document, statement or circular, nor in any communication with third parties without our prior written approval of the form and context in which it will appear.

Yours faithfully Yours faithfully

Fergus Power Tero Lehtonen Director Senior Director, Head of Advisory For and on behalf of Jones Lang LaSalle Limited For and on behalf of Jones Lang LaSalle Finland Oy

Appendices

Appendix A Asset List

Appendix 1 – Schedule of assets to be valued

1. Mäkikuumolantie 3, Hyvinkää 2. Äyritie 8, Vantaa 3. Laippatie 1, Helsinki 4. Alikeravantie 30, Kerava 5. Ratsumestarinkatu 5-7, Porvoo 6. Asessorinkatu 3. Kaarina 7. Hyrylänkatu 8, Tuusula 8. Jumalniementie 6, Kotka 9. Päivölänkatu 2, Seinäjoki 10. Nuutisarankatu 15, Tampere 11. Ristisuonraitti 4, Pietarsaari 12. Kartanonherrantie 7, Espoo 13. Palokankaantie 18, Jyväskylä 14. Lirokuja 4, Helsinki 15. Jokelantie 5, Raahe 16. Hevoshaankatu 3, Pori 17. Jokelantie 3, Raahe Appendices

Appendix B Summary Schedule

COPYRIGHT © JLL IP, INC. 2016. All Rights Reserved BASIC PROPERTY INFORMATION TENANCY SCHEDULE INPUTS VALUATION METHODOLOGY & OUTPUTS Post-Cost Geography Property Type Area Pre-Cost Economics COSTS Economics Valuation Methodology & Yields Address Currency Country City Use Type Tenure / Number of Number of Floor Area Occupancy WALTB WALTE Passing Rent Theoretical Gross ERV Void Costs Total Non- Valuer NOI Market Value Vacant Possession Reinstatement Costs NOI Yield Reversionary Yield Ownership Type Buildings Tenants Rent Recoverable Value (if applicable) (if applicable) CCY per SQM Text Input Text Input Text Input Text Input Dropdown Text Input Count Count SQM % Years Years CCY CCY p.a. CCY p.a. p.a. CCY p.a. CCY p.a. CCY CCY CCY % % Hyrylänkatu 8 EUR Finland Tuusula Retail Freehold 1 14 3,419 84.7% 2.0 445,225 508,012 - - 3,800,000 2,300,000 6,200,000 8.13% 9.78% Mäkikuumolantie 3 EUR Finland Hyvinkää Retail Freehold 1 8 12,214 84.1% 2.6 1,144,242 1,320,118 - - 11,900,000 7,900,000 12,100,000 7.07% 8.55% Palokankaantie 18 EUR Finland JyväskyläLogistics/Industrial Freehold 1 1 2,331 57.9% 2.6 207,443 342,273 - - 2,100,000 1,600,000 3,100,000 5.35% 11.77% Äyritie 8 EUR Finland Vantaa Office Freehold 1 17 4,731 96.6% 1.1 1,207,316 1,226,280 - - 12,800,000 8,300,000 13,700,000 7.25% 7.40% Päivölänkatu 2 EUR Finland Seinäjoki Retail Freehold 2 4 5,179 69.0% 1.3 429,451 559,332 - - 4,600,000 3,400,000 4,800,000 6.63% 9.46% Asessorinkatu 3 EUR Finland KaarinaLogistics/Industrial Freehold 1 2 10,046 100.0% 2.8 771,676 783,549 - - 7,100,000 4,900,000 10,500,000 8.81% 8.97% Jokelantie 5 EUR Finland Raahe Retail Freehold 1 1 2,778 48.2% 5.7 115,538 216,645 - - 1,200,000 700,000 2,300,000 4.78% 13.21% Jumalniementie 6 EUR Finland Kotka Retail Freehold 1 2 3,427 100.0% 2.7 471,584 366,084 - - 2,600,000 1,900,000 2,900,000 15.07% 11.01% Lirokuja 4 EUR Finland HelsinkiLogistics/Industrial Leasehold 1 6 2,593 56.2% 0.9 153,358 282,550 - - 1,100,000 700,000 4,400,000 2.33% 14.08% Hevoshaankatu 3 EUR Finland PoriLogistics/Industrial Freehold 1 9 6,383 96.9% 2.7 444,197 459,192 - - 2,800,000 2,000,000 7,400,000 11.06% 11.60% Alikeravantie 30 EUR Finland Kerava Retail Freehold 2 8 9,403 95.2% 3.4 1,123,474 1,172,096 - - 10,200,000 6,900,000 7,700,000 7.96% 8.44% Ratsumestarinkatu 5-7 EUR Finland Porvoo Retail Freehold 2 4 8,272 100.0% 7.4 978,009 920,016 - - 10,000,000 6,300,000 8,400,000 7.95% 7.37% Laippatie 1 EUR Finland HelsinkiLogistics/Industrial Leasehold 1 8 6,975 97.8% 2.7 873,276 868,772 - - 6,200,000 4,600,000 9,200,000 9.96% 9.89% Ristisuonraitti 4 EUR Finland Pietarsaari Retail Freehold 1 2 2,820 100.0% 3.1 334,890 304,560 - - 1,900,000 1,100,000 2,700,000 12.71% 11.11% Nuutisarankatu 15 EUR Finland TampereLogistics/Industrial Freehold 1 10 6,155 64.7% 0.8 329,515 482,827 - - 2,100,000 1,800,000 6,900,000 8.47% 15.77% Jokelantie 3 EUR Finland Raahe Retail Freehold 2 - 5,516 - 0.0 - 397,152 - - 1,100,000 1,100,000 4,400,000 -7.32% 28.79% Kartanonherrantie 7 EUR Finland Espoo Retail Freehold 1 2 2,103 79.0% 0.9 262,020 324,371 - - 2,600,000 2,000,000 2,300,000 7.15% 9.55% Appendices

Appendix C Individual Property Reports

Kerava, Alikeravantie 30

Key Property Overview Property Type: Commercial premise Year Built/Refurbished: 20082

Total Lettable Area: 7,395.5 sqm Vacant area: 400 sqm Vacancy: 4.8% Land Plot Size: 34,633 sqm Photo Tenure: Freehold Number of Tenants: 8 Gross Rent: € 1,123,474 Net Rent: € 811,893 Total ERV (gross): € 1,172,096 ERV of Occupied Areas: € 1,115,489 Over/Under rented: 0.7% WAULT to Break: 3.4 years WAULT to Expiry: 3.4 years

Valuation as at: 22 February 2019

Gross Value: N/A Location Plan Purchasers Costs: N/A Capex: € 179,714 Market Value (net) € 10,200,000 Initial Yield 7.96% Reversionary Yield 8.44% Capital Value / sq m € 1,379 Vacant Possession Value € 6,900,000 Estimated Reinstatement € 7,700,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Retail 8 7,395.5 €1,123,474 € 152 € 1,172,096 € 158

Total 8 7,395,5 € 1,123,474 € 152 € 1,172,096 € 158 € 10,200,000 € 1,379 7.96%

Project Meg February 2019

Description

The property consists of two single-storey retail warehouse buildings and outdoor sales shelters. Construction was completed in 2008. The buildings have steel frames and their load bearing structure consists of concrete and steel. The total lettable area of the property is 7,395.5 sq. m. The condition of the building as a whole is good.

The property consists of two separate buildings. The other is occupied by wholesale hardware store Onninen and the other is let to several tenants. The property has a common parking lot between the buildings and most of retail units have entrances directly to parking lot. Instead, there is one unit with entrance form the side and the other with entrance from the backside of the building.

We consider the current use as highest and best use.

Location

Macro: The property is located at Ali-Kerava in Kerava, Finland. The city has around 35.000 residents and it is in the Province of Uusimaa, in the southern part of the country. The city is a part of the Helsinki region, which is the country’s main economic and urban area. The macro location is assessed as good.

Micro: The property is located in the Ali-Kerava commercial and industrial district. The surroundings consist of mostly other space requiring retail and a bit further away of industrial areas. The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located at some 400 m from the Helsinki-Lahti Motorway, which indicates a 3 minutes’ drive. Accessibility by car is excellent and accessibility by public transport is tolerable. The closest public transport possibility is a bus stop at 250 meters and railway station at Savio roughly 1,6 km away.

Tenancies

The property is 95.2 % leased to 8 tenants, generating a total rental income of €1,123,474/year. The rental income is 0.7% above market rent and the WALT is around 3,4 years until first break.

The main tenant is Ahlsell Oy.

Details of the various leases can be found in the Tenant Details sheet which is part of the calculation in the appendices and the division of income per use type can be found in the summary of this report.

Legal

Title and Tenure:

Tenure: Freehold Register number: 245-9-380-10 Site area: 34,633 sqm Owner of the plot: M7 EREIP IV Camelot Propco 6 Oy Leasehold details if applicable: -

• Propco’s long-term renovation plan includes total costs of €55,885 for years 2017-2022. • There has been water damage on the property which has been repaired. • Ahlsell Oy has rent reduction in force based on ownership arrangement of part of the building and leasing situation after that.

• There are rent receivables amounting to €5,564.36 from Evidensia Eläinlääkäripalvelut Oy. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Project Meg February 2019

Planning:

Zoning plan: Detailed plan Zoning: KTY-5 Permitted uses: Commercial and office buildings as well as undisturbing light industrial building district. According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to a technical due diligence survey provided to us (JLL, 22/10/2018), the condition of the building as a whole is very good. Based on our visual impression during the inspection in January 2019 buildings’ condition to be unchanged. The estimated remaining useful economic life of the building is approx. 30-40 years.

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 22/7/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

We emphasize that we have not carried out a technical or environmental assessment of the property and are not qualified to do so. We cannot accept any liability for the information contained in this paragraph.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The presented comparables below are net rents unless otherwise stated. The comparable evidence is limited.

An nual Rent City Surface sqm lfa €/sqm Date Remarks Tampere 5,000 85 Q1 2017 Similar location, similar property quality Tampere 1,300 119 Q1 2017 Better location and new building Kouvola 800 58 (gross) Q2 2017 Weaker macro location, but similar micro location and building quality Järvenpää 3,000 108 Q4 2017 Similar location and new building

In functional retail warehouse areas, the net rental levels for similar 10-year old retail warehouse properties range typically from 84 to 108 €/sqm/year, depending on the location, standard, and size of the premises. The higher rents are mainly found in new developments. On t he other hand, in weaker locations the rents can be significantly lower as the lease comparable in Kouvola indicates.

According to KTI property Information Ltd the average operating cost for retail parks was in 2017 ca. 35 €/sq. m/year. Maintenance rents are typically based on the budget/actual maintenance costs of the property and covering at least part of them depending on the lease agreement.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rents:120 – 168 €/sqm/year, depending on the unit.

The property is located in entrance from Helsinki-Lahti motorway to Kerava, in popular and fairly new retail warehouse area. In the surroundings of the property there are located e.g. Tokmanni, Hong Kong and car dealer Auto-Salpa. Further along the Alikeravantie road there is large

Project Meg February 2019

industrial property of Sinebrychoff. The building has been completed in 2008 and is in good condition. However, there is limited tenant interest for the premises but on the other hand the area is fully built and there are no vacant plots left.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. Price City Adress sq m lfa Date Price € € / sqm GIY Remarks Hämeenlinna 2,000 Q2 2018 1,400,000 700 Similar location, similar property quality, fully let Jyväskylä 10,000 Q2 2018 18,000,000 1,800 Similar location, similar property quality, fully let, long WALT Pori 6,400 Q2 2018 8,000,000 1,250 Similar location, fully renovated, long WALT Similar loc ation, similar property quality, moderate WALT, Vantaa 24,000 Q4 2017 26,400,000 1,100 low vacancy below Turku 8,700 Q3 2016 Similar location, similar property quality, long WALT 8% around Helsinki Q1 2018 1,900 Similar location, similar property quality, short WALT 9%

The comparable evidence is limited however in general fully let properties with decent maturity (around 4 to 5 years) trade above 8% yields. With longer WALT the best properties transact below 8%. The subject property has shorter lease maturity than comparable properties. On the other hand, occupier quality is considered to be from moderate to good. Valuation Assumptions

• Void periods and leasing assumptions We estimate the average void period at 6 months for currently rented spaces and 12 months for currently vacant spaces. Overall, we believe the property has moderate lettability.

• Operating costs Based on the information received we have applied a total of €3.50/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 7.25% and cap rate of 7.50% in the calculation

• Capital expenditure We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is roughly €179,714.

• Marketability Comparable sales evidence related to the subject property is relatively limited in the current market situation. The retail warehouse transaction activity has enhanced as far as it comes to modern product with long around 10-year lease maturities from reliable covenants. This category often includes grocery. The subject property has one reliable main tenant and two with weaker covenants although some investors avoid hardware stores as a business sector. Under 4-year WALT and estimated slight over-rent weaken saleability. The most potential buyers include domestic funds and estimated marketing time would be around 12 months. Market value is based on assumed 12 months exposure time.

Suitability for Loan Security

As at the valuation date, the property is let to 8 tenants with WALT of 3.4 years. From a banking perspective, the risk lies in the tenants' ability to satisfy the rent during the remainder of the lease and avoid non-payment and securing occupancy of the currently vacant area as well as tenants with soon expiries.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to form good security for a mortgage advance, subject to a suitable loan to value ratio.

Project Meg February 2019

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value. This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Alikeravantie 30

Cash Flows - EUR 1 .year 2 .year 3 .year 4 .year 5 .year 6 .year 7 .year 8 .year 9 .year 10 .year Terminal Value 03-2019 03-2020 03-2021 03-2022 03-2023 03-2024 03-2025 03-2026 03-2027 03-2028 03-2029

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 13.21 1,172,096 1,172,096 1,183,817 1,207,494 1,231,644 1,256,276 1,281,402 1,307,030 1,333,171 1,359,834 1,387,031 1,414,771 Over (+) / sub (-) rents - +7,985 (50,818) +5,220 +12,249 +12,236 +10,300 +10,084 +734 - - - - POTENTIAL RENTAL INCOME 13.30 1,180,081 1,121,278 1,189,037 1,219,742 1,243,880 1,266,576 1,291,486 1,307,764 1,333,171 1,359,834 1,387,031 1,414,771 Idle time, months - - (86,837) (181,979) (60,922) (26,127) (73,404) - (217,285) - - - - Reduction from market rents - (56,607) (1,041) (18,851) (36,561) (44,427) (49,002) (59,875) (73,747) (93,322) (95,188) (97,092) (99,034) Rent-free periods ------Vacancy reductions, total - (56,607) (87,877) (200,830) (97,483) (70,554) (122,406) (59,875) (291,032) (93,322) (95,188) (97,092) (99,034) Vacancy rate (%) - 4.8 % 7.8 % 16.9 % 8.0 % 5.7 % 9.7 % 4.6 % 22.3 % 7.0 % 7.0 % 7.0 % 7.0 % EFFECTIVE RENTAL INCOME 12.66 1,123,474 1,033,401 988,207 1,122,260 1,173,326 1,144,170 1,231,612 1,016,732 1,239,849 1,264,646 1,289,939 1,315,737 Operating expenses (3.36) (298,782) (298,782) (301,769) (307,805) (313,961) (320,240) (326,645) (333,178) (339,841) (346,638) (353,571) (360,642) Repairs (0.14) (12,800) (12,800) (12,928) (13,187) (13,450) (13,719) (13,994) (14,274) (14,559) (14,850) (15,147) (15,450) Tenant improvements (0.20) - (18,843) (67,960) (23,076) (7,776) (21,846) - (54,167) - - - - Other costs ------NET OPERATING INCOME 9.15 811,893 702,977 605,549 778,192 838,139 788,365 890,973 615,114 885,448 903,157 921,220 939,645 Capex investments - - (8,443) (8,443) - - (17,000) (28,304) (28,728) (29,159) (29,597) (30,041) - NET CASH FLOW 9.15 811,893 694,534 597,107 778,192 838,139 771,365 862,669 586,385 856,289 873,560 891,180 939,645 Present value of Net Cash Flow - 664,366 522,631 623,244 614,209 517,235 529,299 329,206 439,880 410,616 383,298

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 939,645 Initial yield (NOI I) 824,693 8.09% Yield 7.25% Cap rate 7.50% Initial yield (NOI II) 811,893 7.96% Discount rate 9.29% Capitalized Terminal Value, year 11 12,528,597 Potential yield (NOI I) 868,500 8.51% Cap rate for Terminal Value 7.50% Present value of Terminal Value 5,154,513 Potential yield (NOI I) - with market rents 860,515 8.44% Vacancy rate for Terminal Value 7.0 % 1. year forecasted yield (NOI II) 702,977 6.89% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 5,033,983 (49 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 5,154,513 (51 %) Average economical vacancy rate 9.6 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 10,188,495 (100 %)

Rounding (+/-) 11,505 *Average during 10 years MARKET VALUE (EUR) 10,200,000 Market value EUR/sqm 1,379 Accuracy +/- 10 % Value range (EUR) 9 180 000 - 11 220 000 RENT ROLL Alikeravantie 30

Lease Agreement Information Market Information 7,395.5 m2 8 Tenants 93,622.85 97,674.70 +665.40

Space 1st possible Notice period Contract rent Over (+) / under (-) General market vacancy number Space type GLA Tenant Lease type Indexation Signing date Start date End date termination date (months) Rent-free months Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction 100 Retail 296.0 m2 Evidensia Eläinlääkäripalvelut Oy until further notice Indexation 01/07/2017 31/12/2021 6 4,533.04 15.31 leased 14.00 4,144.00 +389.04 25 EUR/m2 6 7.0 % 101 Retail 1,234.0 m2 NamiMami Oy until further notice Indexation 01/06/2017 30/11/2019 3 12,043.29 9.76 leased 12.00 14,808.00 (2,764.71) 25 EUR/m2 6 7.0 % 102 Retail 354.0 m2 Safirma Oy until further notice Indexation 01/01/2016 3 4,878.86 13.78 leased 14.00 4,956.00 (77.14) 25 EUR/m2 6 7.0 % 103 Retail 98.0 m2 Melsa Oy fixed Indexation 01/06/2018 30/06/2023 1,380.34 14.09 leased 14.00 1,372.00 +8.34 25 EUR/m2 6 7.0 % 104 Retail 83.0 m2 Melsa Oy fixed Indexation 01/06/2018 30/06/2023 1,169.06 14.09 leased 14.00 1,162.00 +7.06 25 EUR/m2 6 7.0 % 105 Retail 36.5 m2 Melsa Oy fixed Indexation 01/06/2018 30/06/2023 514.11 14.09 leased 14.00 511.00 +3.11 25 EUR/m2 6 7.0 % 106 Retail 36.5 m2 Melsa Oy fixed Indexation 01/06/2018 30/06/2023 514.11 14.09 leased 14.00 511.00 +3.11 25 EUR/m2 6 7.0 % 107 Retail 10.5 m2 Melsa Oy fixed Indexation 01/06/2018 30/06/2023 147.89 14.09 leased 14.00 147.00 +0.89 25 EUR/m2 6 7.0 % 108 Retail 10.5 m2 Melsa Oy fixed Indexation 01/06/2018 30/06/2023 147.89 14.09 leased 14.00 147.00 +0.89 25 EUR/m2 6 7.0 % 109 Retail 896.0 m2 Nilika Ab until further notice Indexation 01/06/2016 30/11/2020 6 8,900.20 9.93 leased 11.00 9,856.00 (955.80) 25 EUR/m2 6 7.0 % 110 Other (no GLA) 498.0 m2 Ahlsell Oy until further notice Step rent 01/02/2018 31/03/2024 12 3,324.48 6.68 leased 3,237.00 3,237.00 +87.48 - 6 7.0 % 111 Retail 1,943.0 m2 Ahlsell Oy until further notice Step rent 01/02/2018 31/03/2024 12 19,789.89 10.19 leased 10.00 19,430.00 +359.89 25 EUR/m2 6 7.0 % 112 Other (no GLA) 1,374.0 m2 Ahlsell Oy until further notice Step rent 01/02/2018 31/03/2024 12 9,172.37 6.68 leased 8,931.00 8,931.00 +241.37 - 6 7.0 % 113 Other (no GLA) 135.0 m2 Ahlsell Oy until further notice Step rent 01/02/2018 31/03/2024 12 901.22 6.68 leased 877.50 877.50 +23.72 - 6 7.0 % 114 Retail 279.0 m2 vacant 11.50 3,208.50 25 EUR/m2 12 7.0 % 115 Retail 1,033.5 m2 Onninen Oy until further notice Indexation 01/10/2014 31/10/2019 6 13,184.31 12.76 leased 10.50 10,851.75 +2,332.56 25 EUR/m2 6 7.0 % 116 Retail 424.0 m2 Onninen Oy until further notice Indexation 01/10/2014 31/10/2019 6 5,408.95 12.76 leased 10.50 4,452.00 +956.95 25 EUR/m2 6 7.0 % - 118 Retail 540.3 m2 Etra Oy fixed Indexation 01/09/2017 31/08/2023 7,612.83 14.09 leased 14.00 7,564.20 +48.63 25 EUR/m2 6 7.0 % 119 Retail 120.7 m2 vacant 12.50 1,508.75 25 EUR/m2 12 7.0 % - Project Meg February 2019

Kaarina, Asessorinkatu 3

Key Property Overview Property Type: Warehouse Year Built/Refurbished: 2007

Total Lettable Area: 10,045.5 sqm Vacant area: 0 sqm Vacancy: 0.0% Land Plot Size: 33,090 sqm Tenure: Freehold Number of Tenants: 2 Gross Rent: € 771,676 Net Rent: € 625,343

Total ERV (gross): € 783,549 Photo ERV of Occupied Areas: € 783,549 Over/Under rented: -1.5% WAULT to Break: 2.8 year WAULT to Expiry: 2.8 year

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 34,633 Market Value (net) € 7,100,000 Initial Yield 8.81% Reversionary Yield 8.97% Capital Value / sq m € 707 Location Plan Vacant Possession Value € 4,900,000 Estimated Reinstatement € 10,500,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent/yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Storage 2 10,045.5 € 771,676 € 77 € 783,549 € 78 € 7,100,000 € 707 8.81%

Total 2 10,045.5 € 771,676 € 77 € 783,549 € 78 € 7,100,000 € 707 8.81%

Project Meg February 2019

Description

The property consists of a modern single-storey warehouse property with a gross lettable area of 10,046 sqm. The property was completed in 2007 and has steel frames, concrete floors and steel cladding. The property has five loading doors and a large yard area. According to the technical due diligence survey provided to us (JLL, 22/11/2018), the property is overall in satisfying/good condition. The estimated remaining useful economic life of the building is approx. 30–40 years.

The floor capacity of warehouse premises is around 5,000kg/sqm and the free height is around 6 metres. The pillar interval is suitable for warehousing, but the height is below modern standards. Warehouse spaces are on one floor which is divided to two parts with inner wall. The 2,914 sq. m warehouse unit has few lightly constructed office rooms inside, but the main offices of the property are in second floor and above some lower industrial premises. The main offices are in good condition and include also some meeting room facilities in addition to mainly cellular office spaces.

Location

Macro: The subject property is located in Kaarina, in the south-west of Finland. Kaarina is part of the greater Turku region, and has a population of ca. 33,000. The macro location is assessed as secondary.

Micro: The property is located in Nummenniitty business area some 2 km north of the Kaarina city centre. Distance to Turku city centre is around 10 km. The location is close to the Helsinki-Turku motorway, but access to the area's main roads is not ideal. The immediate surroundings include industrial and retail users. West of Nummenniitty there is the residential area of Sorro.

Accessibility:

The asset is located less than 1km from the Turku-Helsinki motorway which indicates a 4 minutes’ drive. Accessibility by car is good, but with heavy vehicles only adequate. Accessibility by public transport is poor with the closest public transport possibility is a bus stop roughly 1 kilometre away.

Tenancies

The property is 100% leased to two tenants, generating a total rental income of €771,676/year. The rental income is 1.5% below market rent and the WALT is around 2.8 years until first break.

The main tenant is Haklift ABT Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 202-401-1-221 Site area: 33,090 Owner of the plot: M7 EREIP IV Camelot Propco 5 Oy Leasehold details if applicable: -

We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD: • According to the lease agreement between the Former Owner and Haklift ABT Oy dated 20 December 2006 (amended 28 August 2015), the tenant has an option to purchase the Property owned by the PropCo at fair market value, provided that the tenant and the landlord have agreed on such purchase at least one (1) year before the expiration of the lease term. • According to the lease agreement between the Former Owner and Haklift ABT Oy dated 20 December 2006 (amended 28 August 2015), the tenant is entitled to compensation due to disruption in water, sewage, heat or electricity equipment or due to maintenance of the property. • According to the PropCo renovation plans during 2018-2023 total of €32,000.

Project Meg February 2019

• There are rent receivables of €38,616.51 from Haklift Oy. • The parking space requirement set out in the town plan may not be fulfilled. Authority could demand this to be fulfilled. M7 Real Estate Finland Oy has stated that a sufficient number of additional parking spaces can be placed on the property, if needed.

Planning:

Zoning plan: Detailed plan Zoning: T Permitted uses: Industrial and warehouse area. In case there is need for constant personnel, one apartment per building site is allowed. According to our interpretation of the zoning plan the current building and use seem to be permitted. Currently the parking space requirement may not be fulfilled.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 22/11/2018), the property is overall in satisfying/good condition. The estimated remaining useful economic life of the building is approx. 30–40 years.

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 22/7/2016. According to the environmental review provided to us, there are no apparent environmental risks on-site. The report identifies the possibility for migration of contamination from off-site land uses (partially remediated site and former heating plant, located within 200 meters of the subject property).

The level of environmental risk associated with the subject property is assessed to be acceptably low for continued current use. The site has not been designated as contaminated land.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

Surface Annual Rent City sqm lfa €/sq m Date Remarks Turku 10,700 56 Better location, similar property quality Lempäälä 1,900 73 Similar location, similar property quality Turku 2,400 61 (gross) Better location, similar building quality.

Typical net rent range in warehouse premises in Turku and surrounding areas varies between 54 to 72 €/sqm/year in modern properties. Due to location in Kaarina and slightly low ceiling height of the warehouse accommodation we consider market rent to be in lower half of the range.

According to KTI property Information Ltd the average operating cost for warehouse buildings was in 2017 ca. 30 €/sq. m/year. Maintenance rents are typically based on the budget/actual maintenance costs of the property and covering at least part of them depending on the lease agreement.

Project Meg February 2019

Based on the evidence provided above and leasing evidence in the property, we adopted 78 €/sqm/year (gross) ERV for the subject property.

Industrial occupier demand in Turku is currently focusing on smaller warehouse premises. In addition to positive news from Meyer Turku shipyard also Sandvik, who in spring 2015 announced to close down their operations but later decided to continue, will be investing in new research center in Turku. The airport area has succeeded over the last years with its newer supply. Currently unbuilt plots are mainly available in the northern Turku in Saramäki. Overall, in Kaarina and Turku there are only few other larger vacant units available currently and generally the vacancy rate in modern properties is low. We estimate relet void including rent free period to be 6 months and letting period of vacant unit to be around 12 months.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price € City sqm lfa Date Price € / sqm GIY Remarks Kuopio 13,000 Q2 2018 8.5% Single let property, slightly worse property quality Joensuu 15,000 Q1 2018 12,750,000 850 Very long lease maturity, sale and leaseback Espoo 18,400 Q1 2018 11% Fully let, WALT 7 years Raasepori 3,600 Q2 2018 1,000,000 280 High vacancy Oulu 7,000 Q1 2018 3,500,000 500 Sold to owner occupier

The standard of premises above is estimated to be comparable to subject property. Micro location-wise the most comparable are the first and second.

Land Value Comparables:

There is currently ca. 9,809 floor sq. m of building right left on the plot. We have assumed that ca. half of it could be used i.e. 4,904 sq. m. Our assumption is based on the size of the current building and its location on the plot.

We have reviewed transactions done in Kaarina for unbuilt plots zoned for industrial and warehouse use.

In arriving at the market value for the building right, we have taken the investment transactions listed below. The comparable evidence is limited. Building Price € City right sqm Date Price € / sqm Remarks Kaarina 1,815 Q1 2019 100,000 55.1 Located in the same area as valued property. Kaarina 3,553 Q1 2019 300,000 84.44 Located in the same area as valued property. Kaarina 4,324 Q4 2018 164,116 37.95 Located in the same area as valued property. Kaarina 3,553 Q4 2015 150,000 42.22 Located in the same area as valued property. Kaarina 810 Q2 2015 40,000 49.38 Located in the same area as valued property.

All of the plots have less building right than the property under valuation which might decrease the value in case of industrial plots. On the other hand, if the amount of building right is significantly large it might decrease the value as well. All the comparables are located in the same area thus it makes them well comparable in location. The second and the fourth transactions are for same plot. According to the evidence above the market value of building right on industrial/warehouse plot is generally between €35–55/building right sqm. Based on the evidence we have used market value of €40/building right sq. m.

Valuation Assumptions

• Operating costs

Project Meg February 2019

Based on the information received we have applied a total of €1.21/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 8.00% and cap rate of 8.50% in the calculation

• Capital expenditure We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €34,633.

• Marketability The investment market of individual warehouse and industrial properties outside the Helsinki metropolitan area has been relatively quiet in recent years. Moreover, the majority of the transactions have focused on modern logistics and warehouse properties preferably with long lease maturity. We would envisage a warehouse property such as this to be disposed in 12 months. The most likely purchaser would be a Nordic property fund or property investment company. For owner-occupiers the size is estimated to be too large. Decent lease maturity from reliable tenant and modern building improve investment interest but the Helkama Bica Oy unit with short lease maturity leaves out most aggressive buyer groups. Our market value is based on estimated 12 months exposure time.

Suitability for Loan Security

As at the valuation date, the property is 100% let to two tenants with WALT of 2.8 years. From a banking perspective, the risk lies in the Tenants' ability to satisfy the rent during the remainder of the lease and avoid vacancy in the smaller tenant unit (around 30% of the total area) leased with short lease.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to be suitable for loan security, subject to an adequate loan-to-value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Asessorinkatu 3

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 6.50 783,549 783,549 791,384 807,212 823,356 839,824 856,620 873,752 891,227 909,052 927,233 945,778 Over (+) / sub (-) rents - (11,873) (11,523) (9,870) (10,068) (5,990) ------POTENTIAL RENTAL INCOME 6.40 771,676 772,026 781,514 797,144 817,366 839,824 856,620 873,752 891,227 909,052 927,233 945,778 Idle time, months - - (37,876) (76,509) - (243,566) (49,687) ------Reduction from market rents - - - (7,651) (11,706) (11,940) (39,507) (42,831) (43,688) (44,561) (45,453) (46,362) (47,289) Rent-free periods ------Vacancy reductions, total - - (37,876) (84,159) (11,706) (255,506) (89,194) (42,831) (43,688) (44,561) (45,453) (46,362) (47,289) Vacancy rate (%) - 0.0 % 4.9 % 10.8 % 1.5 % 31.3 % 10.6 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % EFFECTIVE RENTAL INCOME 6.40 771,676 734,150 697,355 785,439 561,860 750,629 813,789 830,065 846,666 863,599 880,871 898,489 Operating expenses (1.14) (138,333) (138,333) (139,716) (142,510) (145,360) (148,268) (151,233) (154,258) (157,343) (160,490) (163,700) (166,974) Repairs (0.07) (8,000) (8,000) (8,080) (8,242) (8,406) (8,575) (8,746) (8,921) (9,099) (9,281) (9,467) (9,656) Tenant improvements (0.20) - - (73,566) - - (191,106) ------Other costs ------NET OPERATING INCOME 5.19 625,343 587,818 475,993 634,687 408,093 402,682 653,810 666,886 680,224 693,828 707,705 721,859 Capex investments - - (3,275) (3,275) - - - (5,451) (5,532) (5,615) (5,700) (5,785) - NET CASH FLOW 5.19 625,343 584,542 472,718 634,687 408,093 402,682 648,359 661,354 674,609 688,129 701,920 721,859 Present value of Net Cash Flow - 557,208 409,454 499,534 291,855 261,680 382,849 354,852 328,903 304,851 282,558

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 721,859 Initial yield (NOI I) 633,343 8.92% Yield 8.00% Cap rate 8.50% Initial yield (NOI II) 625,343 8.81% Discount rate 10.05% Capitalized Terminal Value, year 11 8,492,459 Potential yield (NOI I) 625,343 8.81% Cap rate for Terminal Value 8.50% Present value of Terminal Value 3,258,773 Potential yield (NOI I) - with market rents 637,216 8.97% Vacancy rate for Terminal Value 5.0 % 1. year forecasted yield (NOI II) 587,818 8.28% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 3,673,742 (52 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 3,258,773 (46 %) Average economical vacancy rate 8.4 % Market rent change 1.90% Other value (unused building rights etc.) 196,170 (3 %) Cost change 1.90% TOTAL 7,128,684 (100 %)

Rounding (+/-) (28,684) *Average during 10 years MARKET VALUE (EUR) 7,100,000 Market value EUR/sqm 707 Accuracy +/- 10 % Value range (EUR) 6 390 000 - 7 810 000 RENT ROLL Asessorinkatu 3

Lease Agreement Information Market Information 10,045.5 m2 2 Tenants 64,306.30 65,295.75 (989.46)

Vantaa, Äyritie 8

Key Property Overview Property Type: Office property Year Built/Refurbished: 2008

Total Lettable Area: 4,731 sqm Vacant area: 176.5 sqm Vacancy: 3.4 % Land Plot Size: 2,090 sqm Tenure: Freehold Number of Tenants: 17 Gross Rent: € 1,207,316 Photo Net Rent: € 927,825 Total ERV (gross): € 1,226,280 ERV of Occupied Areas: € 1,183,920 Over/Under rented: 1.9 % WAULT to Break: 1.1 years WAULT to Expiry: 1.1 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 513,009 Market Value (net) € 12,800,000

Initial Yield 7.25% Location Plan Reversionary Yield 7.40% Capital Value / sq m € 2,706 Vacant Possession Value € 8,300,000 Estimated Reinstatement € 13,700,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Office 16 4,731 € 1,106,744 € 243 € 1,128,480 € 239

Parking 1 € 100,572 € 97,800

Total 17 4,731 € 1,207,316 € 265 € 1,226,280 € 259 € 12,800,000 € 2,706 7.25 %

Project Meg February 2019

Description

The subject property is an office building in six floors and some common meeting room premises let to a catering company on the ground floor. The building was completed in 2008 and is generally in good condition. The office floors represent modern office standard and are flexible by unit size and layout. The property shares a parking area and a parking house facility with other surrounding properties. It is also connected to adjacent office buildings via corridors on the ground level.

The estimated remaining useful economic life of the building is approx. 30–40 years.

Location

Macro: The subject property is located in Vantaa, just north of Helsinki in Southern Finland. Vantaa is a key component in Helsinki metropolitan area with a population of around 215,000 people. The property is located in the Aviapolis district, which is an office dominated area located on the south side of the Helsinki international airport, which is the main international airport in Helsinki region.

The macro location is assessed as suitable.

Micro: The property is located in Aviapolis district approx. 20km north from Helsinki city centre and 3km southeast from Helsinki international airport. Aviapolis is an established, developing office area with constructions originating mainly from the 2000s. Connections to the property are good by private cars as the intersection of Ring Road III and Tuusulanväylä highway is located nearby, while accessibility by public transport is only passable as distance from the property to Aviapolis train station is almost 2km. However, multiple bus lines operate nearby the property. Shopping centre Jumbo is located on the opposite side of Ring Road III.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located along key main road intersections in the Helsinki metropolitan area, which means good accessibility by car. Helsinki airport can be reached in 7 minutes by car and 14 by public transportation. Helsinki city center can be reached in 30 and 45 minutes respectfully.

Tenancies

The property is 96.6% leased to 17 tenants, generating a total rental income of €1,207,316/year. The rental income is 2.0% above market rent and the WALT is around 1.1 years until first break.

The main tenant is Kekkilä Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 92-52-128-7 Site area: 2,090 sqm Owner of the plot: M7 EREIP IV Camelot Propco 9 Oy Leasehold details if applicable: - We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD:

• There is currently ongoing claim against the former owner due to glass façade structure not meeting the construction laws. The estimated maximum amount of loss incurred by the HoldCo is EUR 700,000. This remains still unresolved. Currently there is €250,000 reservation in the business plan capex budget received for the façade repairs.

• There are rent receivables amounting to €23,574.29 in total from Kekkilä Oy. • M7 EREIP IV Camelot Propco 9 Oy owns shares (16.5%) in Kiinteistö Oy Plaza 2 Park. Via these shares M7 EREIP IV Camelot Propco 9 Oy is entitled to possess certain parking spaces in the parking facilities the Kiinteistö Oy Plaza 2 Park owns. If shares would

Project Meg February 2019

be sold M7 EREIP IV Camelot Propco 9 Oy might be obliged to arrange for parking spaces some other way to meet the zoning requirements. M7 EREIP IV Camelot Propco 9 Oy is responsible for maintenance charges allocated to the shares. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Zoning plan: Detailed plan Zoning: KT Permitted uses: Office buildings. One parking space required per 50 sqm of built office space.

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 22/07/2016. According to the environmental review provided to us there are no apparent environmental risks on-site. The report identifies the potential for contamination from local current and historical light industrial logistical off-site uses and known contaminated areas within 500m of the subject property.

The potential environmental risk from off-site uses is assessed to be very low to site users and maintenance workers. The level of environmental risk associated with the subject property is assessed to be acceptably low for continued current use. The site has not been designated as contaminated land.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. All the following comparables are from Aviapolis area during the past few years. The rents below are gross rents including a 48-54 €/sqm/year maintenance charge.

Surface An nual Rent City sq m lfa €/sq m/year Remarks Vantaa (Aviapolis) 1,900 264 Office unit in good condition Vantaa (Aviapolis) 350 262 Office unit in good condition Vantaa (Aviapolis) 600 239 Office unit in good condition Vantaa (Aviapolis) 150 272 Office unit in good condition Vantaa (Aviapolis) 800 228 Office unit in good condition Vantaa (Aviapolis) 1,300 222 Office unit in good condition Vantaa (Aviapolis) 400 234 Office unit in good condition

Project Meg February 2019

Vantaa (Aviapolis) 250 233 Slightly worn out office unit Vantaa (Aviapolis) 1,200 292 Modern office unit in good condition Vantaa (Aviapolis) 1,100 304 Modern office unit in good condition Vantaa (Aviapolis) 300 293 Modern office unit in good condition

The lease evidence suggests that the rents in the oldest properties in the area have slightly lower rent level compared to newer properties in the area. Typically, the leases of existing tenants can be renewed with slightly higher levels than are achieved from new tenants due to original leases being clearly above current market level. Aviapolis office area has suffered from the vacancy of over 10% and is estimated to remain on the level due to new developments.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rent: 240 €/sqm/year for offices, depending on which of the premises in question.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. Price City sq m lfa Date Price € € / sqm GIY % Remarks Large office area located in two buildings in plaza business park Vantaa (Aviapolis) 10,500 Q3 2018 36,750,000 3,300 completed in 2011, multi-let with occupancy around 95% Vantaa (Aviapolis) 4,800 Q4 2017 16,800,000 3,500 Office building completed in 2012 Vantaa (Aviapolis) 6,000 Q2 2017 13,200,000 2,200 Office building completed in 2001 Vantaa (Aviapolis) Two modern properties completed in 2006 and 2008 as a part of 10,300 Q2 2017 Gate 8 Business Park entity, multi let with around 15% vacancy sold as a part of a pan -European portfolio Artemis. Vantaa (Aviapolis) 6 Multi -let new office property beside Aviapolis train station with 9,000 Q1 2017 4,000 WALT of around 5 years. Plot bought from the city simultaneously.

We consider most relevant comparable to be sale in Q2/2017 with similar kind of short lease maturity. The subject property is 5 years newer and rent levels are slightly higher which justifies higher price per sq. m. The initial yield of around 7.5% to 8.0% is expected for a property with short maturity but no known significant relocations. The new developments in Aviapolis are currently locating closer to Aviapolis train station, but so far the rent or occupancy rate pressure faced in older properties next to Ring Road III has been low and tenants to new properties have mainly relocated there from other office areas. Valuation Assumptions

• Void periods and leasing assumptions We estimate the average void period at 3 months for currently rented spaces and 6 months for currently vacant spaces. Overall, we believe the property has good lettability.

• Operating costs Based on the information received we have applied a total of €4.91/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 6.00% and cap rate of 6.50% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is € 513,009.

• Parking

We have not received an area for the parking space and due to this have estimated a single parking spot to require an area of 30 sqm. This assumption is used in the calculation of the reinstatement cost estimate, by multiplying it by the number of parking spots and building costs.

• Marketability

Project Meg February 2019

Aviapolis office area has suffered from the vacancy of over 10% and is estimated to remain on the level due to new developments. Although both international and domestic investors have been active in the area in past few years and prime yields have been seen to moved in also in the Aviapolis area. In older properties in the area the lease maturities tend to be short which also weaken saleability to core investors. The estimated marketing time would be 6 to 12 months. Market value is based on assumed exposure time of 12 months.

Suitability for Loan Security

As at the valuation date, the property is let to 17 tenants with technical vacancy rate of 3.4%. The leases are mainly valid until further notice and the WALT is currently 1.1 years. As a multitenant property with largest tenant forming 19.1% of income the default risk is considered low. The area faces relatively good occupier and investor interest and the property is in good condition.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Äyritie 8

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 21.60 1,226,280 1,226,280 1,238,543 1,263,314 1,288,580 1,314,352 1,340,639 1,367,451 1,394,800 1,422,696 1,451,150 1,480,173 Over (+) / sub (-) rents - +23,396 +22,765 +9,825 +1,609 (915) ------POTENTIAL RENTAL INCOME 22.01 1,249,676 1,249,045 1,248,368 1,264,923 1,287,665 1,314,352 1,340,639 1,367,451 1,394,800 1,422,696 1,451,150 1,480,173 Idle time, months - - (227,490) (32,565) (33,973) (25,692) ------Reduction from market rents - (42,360) (12,717) (64,625) (76,406) (85,405) (92,005) (93,845) (95,722) (97,636) (99,589) (101,581) (103,612) Rent-free periods - - (16,728) ------Vacancy reductions, total - (42,360) (256,935) (97,191) (110,380) (111,097) (92,005) (93,845) (95,722) (97,636) (99,589) (101,581) (103,612) Vacancy rate (%) - 3.4 % 20.6 % 7.8 % 8.7 % 8.6 % 7.0 % 7.0 % 7.0 % 7.0 % 7.0 % 7.0 % 7.0 % EFFECTIVE RENTAL INCOME 21.27 1,207,316 992,110 1,151,177 1,154,543 1,176,568 1,222,347 1,246,794 1,271,730 1,297,164 1,323,108 1,349,570 1,376,561 Operating expenses (4.45) (253,487) (253,487) (256,022) (261,142) (266,365) (271,692) (277,126) (282,668) (288,322) (294,088) (299,970) (305,969) Repairs (0.46) (26,004) (26,004) (26,264) (26,789) (27,325) (27,872) (28,429) (28,998) (29,578) (30,169) (30,773) (31,388) Tenant improvements (0.77) - (364,400) (53,934) (56,970) ------Other costs ------NET OPERATING INCOME 16.34 927,825 348,220 814,957 809,642 882,878 922,783 941,239 960,064 979,265 998,850 1,018,827 1,039,204 Capex investments - - (131,459) (131,459) - - (10,000) (46,599) (47,298) (48,007) (48,728) (49,458) - NET CASH FLOW 16.34 927,825 216,760 683,498 809,642 882,878 912,783 894,640 912,766 931,257 950,123 969,369 1,039,204 Present value of Net Cash Flow - 208,564 608,860 667,717 674,094 645,219 585,474 553,018 522,359 493,400 466,046

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 1,039,204 Initial yield (NOI I) 953,829 7.45% Yield 6.00% Cap rate 6.50% Initial yield (NOI II) 927,825 7.25% Discount rate 8.01% Capitalized Terminal Value, year 11 15,987,750 Potential yield (NOI I) 970,185 7.58% Cap rate for Terminal Value 6.50% Present value of Terminal Value 7,395,829 Potential yield (NOI I) - with market rents 946,789 7.40% Vacancy rate for Terminal Value 7.0 % 1. year forecasted yield (NOI II) 348,220 2.72% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 5,424,752 (42 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 7,395,829 (58 %) Average economical vacancy rate 8.8 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 12,820,581 (100 %)

Rounding (+/-) (20,581) *Average during 10 years MARKET VALUE (EUR) 12,800,000 Market value EUR/sqm 2,706 Accuracy +/- 10 % Value range (EUR) 11 520 000 - 14 080 000 RENT ROLL Äyritie 8

Lease Agreement Information Market Information 4,731.0 m2 17 Tenants 100,609.64 102,190.00 +1,949.64

Space 1st possible Notice period Contract rent Over (+) / under (-) General market vacancy number Description Space type GLA Tenant Lease type Indexation Signing date Start date End date termination date (months) Rent-free months Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction Unit 2, 3rd Floor Office 389.5 m2 Berner Kiinnitystekniikka Oy until further notice Indexation 01/10/2015 6 7,697.14 19.76 leased 20.00 7,790.00 (92.86) 100 EUR/m2 3 7.0 % Unit 3, 1st Floor Office 231.0 m2 Ictum Oy until further notice Indexation 01/12/2018 30/11/2019 6 4,719.20 20.43 leased 20.00 4,620.00 +99.20 100 EUR/m2 3 7.0 % Unit 4, 3rd Floor Office 387.0 m2 Expeditors Finland Oy until further notice Indexation 01/05/2016 6 7,446.37 19.24 leased 20.00 7,740.00 (293.63) 100 EUR/m2 3 7.0 % Unit 17, Grnd Floor Office 58.0 m2 Fazer Food Services Oy until further notice No indexation 01/01/2016 3 0.00 0.00 leased 10.00 580.00 (580.00) 100 EUR/m2 3 7.0 % Unit 12, 2nd Floor Office 76.0 m2 Flexcom Oy until further notice Indexation 01/05/2018 30/11/2019 6 1,641.82 21.60 leased 20.00 1,520.00 +121.82 100 EUR/m2 3 7.0 % Unit 6, 2nd Floor Office 381.0 m2 Heinänen Oy Patenttitoimisto until further notice Indexation 01/12/2015 6 8,488.25 22.28 leased 20.00 7,620.00 +868.25 100 EUR/m2 3 7.0 % 1.krs = ground floor Office 11.0 m2 Ictum Oy until further notice Indexation 01/11/2017 1 142.57 12.96 leased 20.00 220.00 (77.43) 100 EUR/m2 3 7.0 % Unit 7, 2nd Floor Office 134.5 m2 vacant 20.00 2,690.00 100 EUR/m2 6 7.0 % 6. krs = 5th floor Office 838.0 m2 Kekkilä Oy until further notice Indexation 01/11/2017 30/04/2019 6 17,315.95 20.66 leased 20.00 16,760.00 +555.95 100 EUR/m2 3 7.0 % Unit 5, Grnd Floor Office 49.0 m2 Kekkilä Oy until further notice Indexation 01/11/2017 30/04/2019 6 1,012.51 20.66 leased 20.00 980.00 +32.51 100 EUR/m2 3 7.0 % Unit 9, Grnd Floor Office 20.0 m2 Kekkilä Oy until further notice Indexation 01/04/2018 2 401.68 20.08 leased 20.00 400.00 +1.68 100 EUR/m2 3 7.0 % Unit 11, Grnd Floor Office 23.0 m2 Kekkilä Oy until further notice Indexation 01/11/2017 30/04/2019 6 475.26 20.66 leased 20.00 460.00 +15.26 100 EUR/m2 3 7.0 % Unit 1, Grnd Floor Office 250.0 m2 Mood Media Finland Oy until further notice Indexation 01/05/2017 6 5,172.01 20.69 leased 20.00 5,000.00 +172.01 100 EUR/m2 3 7.0 % Unit 10, 4th Floor Office 152.0 m2 Orbis Systems Oy fixed Indexation 15/02/2019 28/02/2021 2 3,175.28 20.89 leased 20.00 3,040.00 +135.28 100 EUR/m2 3 7.0 % Unit 18, 4th Floor Office 146.0 m2 Rakennusliike Evälahti Uusimaa Oy until further notice Indexation 01/06/2018 31/05/2020 6 3,006.15 20.59 leased 20.00 2,920.00 +86.15 100 EUR/m2 3 7.0 % Unit 13, 1st Floor Office 597.0 m2 Stryker AB Filial i Finland until further notice Indexation 01/09/2016 28/02/2019 6 11,946.03 20.01 leased 20.00 11,940.00 +6.03 100 EUR/m2 3 7.0 % Unit 14, Grnd Floor Office 233.0 m2 Stryker AB Filial i Finland until further notice Indexation 01/09/2016 28/02/2019 6 4,662.35 20.01 leased 20.00 4,660.00 +2.35 100 EUR/m2 3 7.0 % Antenna Other (no GLA) 0.0 m2 Telia Finland Oyj, Viite 4500509419 until further notice No indexation 15/09/2008 6 0.00 leased 0.00 0.00 0.00 - 3 7.0 % Unit 15, 4th Floor Office 233.0 m2 Tornator Oyj until further notice Indexation 01/06/2013 31/10/2019 6 4,859.98 20.86 leased 20.00 4,660.00 +199.98 100 EUR/m2 3 7.0 % Unit 16, 2nd Floor Office 233.0 m2 Nammo Lapua Oy until further notice Indexation 01/10/2018 31/03/2021 6 4,894.14 21.00 leased 20.00 4,660.00 +234.14 100 EUR/m2 3 7.0 % Unit 19, 3rd Floor Office 42.0 m2 vacant 20.00 840.00 100 EUR/m2 6 7.0 % Unit 22, 4th Floor Office 168.0 m2 Chep Scandinavia B.V. until further notice Indexation 01/09/2018 31/03/2021 6 3 3,459.13 20.59 leased 20.00 3,360.00 +99.13 100 EUR/m2 3 7.0 % Unit 21, 4th Floor Office 79.0 m2 West Coast Investments Oy until further notice Indexation 01/09/2017 28/02/2020 6 1,712.80 21.68 leased 20.00 1,580.00 +132.80 100 EUR/m2 3 7.0 % 43 AP Parking 43 pcs Q-Park Finland Oy fixed No indexation 01/08/2017 31/07/2022 3,054.09 71.03 leased 50.00 2,150.00 +904.09 - 3 7.0 % 75 APH Parking 75 pcs Q-Park Finland Oy fixed No indexation 01/08/2017 31/07/2022 5,326.91 71.03 leased 80.00 6,000.00 (673.09) - 3 7.0 % Project Meg February 2019

Pori, Hevoshaankatu 3

Key Property Overview Property Type: Office/warehouse Year Built/Refurbished: 1992

Total Lettable Area: 6,382.5 sqm Vacant area: 292 sqm Vacancy: 3.1% Land Plot Size: 20,986 sqm Tenure: Freehold Number of Tenants: 9 Gross Rent: € 444,197 Net Rent: € 309,729 Total ERV (gross): € 459,192 Photo ERV of Occupied Areas: € 445,176 Over/Under rented: -0.2% WAULT to Break: 2.7 years WAULT to Expiry: 2.7 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 312,564 Market Value (net) € 2,800,000 Initial Yield 11.06% Reversionary Yield 11.60% Location Plan Capital Value / sq m € 439 Vacant Possession Value € 2,000,000 Estimated Reinstatement € 7,400,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Office 6 2,588 € 271,937 € 105 € 279,504 € 108

Storage 3 3,216.5 € 150,921 € 49 € 154,392 € 48

Other 3 578 € 20,722 € 50 € 25,296 € 44

Parking 2 67 pcs € 617 € 0 € 0 € 0

Total 9 6,382.5 € 444,197 € 73 € 459,192 € 72 € 2,800,000 € 439 11.06%

Project Meg February 2019

Description

The building has been constructed in 1992 and it has a lettable area of 6,382.5 sqm. The building has a concrete frame and brick clad elevations. Parking places are located on the front yard, while the back of the yard is partly fenced and used for storage. The estimated remaining useful economic life of the building is approx. 30 years.

The property has originally been constructed as a headquarters property in 1992. Later it has been altered for multi-tenant use. Most of the office premises face towards the parking area, while warehouse premises are located at the back of the building. Part of the warehouse premises have previously been used for retail purposes. The free height of the largest warehouse premises is estimated to be approx. 8 metres at the highest parts of the premises, and there are two loading doors serving the warehouses. There are large sauna and negotiation premises in the second floor of the property.

Location

Macro: The subject property is an office/warehouse building in Pori, on the coast of the Bothnian Sea. Pori has a population of around 85,000. The economy in Pori is mainly focused in technology and education sectors. The macro location is assessed as secondary.

Micro: The property is located in Tikkula, some 3 km west of Pori city centre in a logistically good location. Mäntyluodontie road, with relatively high traffic, is located in immediate proximity of the property. The neighbouring properties are mainly in industrial and warehouse use: the occupiers in the area include companies such as board game manufacturer Tactic and Würth. In addition, the neighbouring plot is being used as bus depot. The micro location is considered to be suitable for the purpose of the building.

Accessibility

The asset is located at just beside the main road in Pori region. The accessibility is excellent by car, as the main road has good connections to all directions. The closest bus stop is only 200 meters away with travel time to Pori centre being around 18 minutes.

Tenancies

The property is 96.9 % leased to 9 tenants, generating a total rental income of € 444,197/year. The rental income is 0.2% under the market rent and the WALT is around 2.7 years until first break.

The main tenant is Posti Kiinteistöt Oy (Finnish postal service).

Legal

Title and Tenure:

Tenure: Freehold Register number: 609-24-6-8 Site area: 20,986 sqm Owner of the plot: M7 EREIP IV Camelot Propco 10 Oy Leasehold details if applicable: - We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD:

• According to the PropCo the total value of renovations planned during 2018-2024 is approximately €71,000. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property .

Planning:

Zoning plan: Detailed plan Zoning: T-14 Permitted uses: Industrial and warehouse

Project Meg February 2019

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 23/11/2018), the property is overall in satisfying condition. The estimated remaining useful economic life of the building is approximately 30 years.

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 22/07/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

We emphasize that we have not carried out a technical or environmental assessment of the property and are not qualified to do so. We can not accept any liability for the information contained in this paragraph.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The presented comparables below are gross rents unless otherwise stated. The comparable evidence is limited.

Surface sq m An nual Rent City lfa €/sq m/year Date Remarks Office unit from office/warehouse building . Better lo cation, similar property Tampere 400 91 Q3 2016 type & quality Tampere 700 37 Q3 2016 Storage unit. Better location, similar property type & quality Tampere 2,400 80 Q2 2016 Office/light industrial unit. Better location, similar property type & quality Tampere 750 100 Q1 2016 Office unit. Better location, slightly weaker property quality Storage /office unit . Slightly better micro location , similar property type & Pori 800 80 Q2 2015 quality. Pori 850 86 Q1 2014 Industrial unit. Similar location, slightly better property quality.

The gross rents in satisfactory condition industrial/storage/office units are generally in a range of €72 to €108/sqm/month (6-9 €/sqm/month) in old industrial areas. All in all, it should be noted that all in all the comparables from Tampere have better macro location.

The property is located in an industrial area close to the city centre and the use of the property is considered suitable for the area. The demand for similar premises in the area is estimated to be moderate. The supply of vacant office and storage spaces in Pori is relatively limited but also demand is estimated to be at low levels. Overall, some permanent vacancy and rather low rental levels is estimated due to outdated standard of premises and large amount of office spaces.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rents:

Office 108 €/sqm/year, storage 48 €/sqm/year and other 44 €/sqm/year. The average market rent for the whole property is 72 €/sqm/year.

Project Meg February 2019

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY Remarks Raasepori 3,600 Q2 2018 1,000,000 280 Price reflects high vacancy Oulu 7,000 Q1 2018 3,500,000 500 Sold to owner-occupier Pori 6,500 Q4 2016 1,700,000 260 Old vacant warehouse Lohja 3,200 Q4 2015 1,000,000 310 Price reflects high vacancy Hyvinkää 6,500 Q3 2015 850,000 130 Old vacant industrial property Mikkeli 13,500 Q2 2015 4,200,000 310 Sold to owner-occupier

We consider most relevant comparable is the third transaction (Pori).

Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €1.75/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 9.00% and cap rate of 9.50% in the calculation

• Capital expenditure We have received a business plan including capex budget and have adopted these as is in the calculation. The total sum of capex budgeted for the upcoming 10 years is € 312,564.

• Marketability The small investment size and location in a secondary city Pori limit the number of investors potentially interested in the property, and investment demand is estimated to be limited. Potential purchasers for the property include local private investors and potentially owner- occupiers although the number of large enough occupiers to occupy the entire property is limited. Although private investors have activated recently the estimated marketing time is at least 18 to 36 months and expected pricing is very opportunistic due to risk profile of the asset. Market value is based on assumed 24 months exposure time.

Suitability for Loan Security

The property is let to 9 typical storage/office tenants with mainly short rolling gross leases. The vacancy is in storage and other premises types. From a banking perspective, the largest risk lies in the tenants' ability to satisfy the rent during the remainder of the leases and avoid vacancy afterwards.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to be suitable for loan security, with adequate loan-to-value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

Project Meg February 2019

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Hevoshaankatu 3

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 6.00 459,192 459,192 463,784 473,060 482,521 492,171 502,015 512,055 522,296 532,742 543,397 554,265 Over (+) / sub (-) rents - (979) (4,755) (8,780) (12,468) (8,546) (6,367) ------POTENTIAL RENTAL INCOME 5.98 458,213 454,437 455,004 460,591 473,975 485,805 502,015 512,055 522,296 532,742 543,397 554,265 Idle time, months - - (36,481) (29,358) (22,874) (125,230) (10,598) (21,620) - - - - - Reduction from market rents - (14,016) (491) (4,891) (11,481) (20,570) (34,287) (38,432) (40,964) (41,784) (42,619) (43,472) (44,341) Rent-free periods - - (54,485) ------Vacancy reductions, total - (14,016) (91,457) (34,249) (34,355) (145,800) (44,885) (60,052) (40,964) (41,784) (42,619) (43,472) (44,341) Vacancy rate (%) - 3.1 % 20.1 % 7.5 % 7.5 % 30.8 % 9.2 % 12.0 % 8.0 % 8.0 % 8.0 % 8.0 % 8.0 % EFFECTIVE RENTAL INCOME 5.80 444,197 362,980 420,755 426,236 328,175 440,920 441,963 471,091 480,512 490,123 499,925 509,924 Operating expenses (1.65) (126,468) (126,468) (127,732) (130,287) (132,893) (135,550) (138,261) (141,027) (143,847) (146,724) (149,659) (152,652) Repairs (0.10) (8,000) (8,000) (8,080) (8,242) (8,406) (8,575) (8,746) (8,921) (9,099) (9,281) (9,467) (9,656) Tenant improvements (0.09) - (15,675) - (20,926) (41,730) ------Other costs 0.02 - - 18,000 ------NET OPERATING INCOME 4.04 309,729 212,837 302,942 266,782 145,146 296,795 294,955 321,143 327,566 334,117 340,799 347,615 Capex investments - - (6,376) (6,376) (3,101) - (20,000) (53,707) (54,513) (55,330) (56,160) (57,003) - NET CASH FLOW 4.04 309,729 206,461 296,567 263,681 145,146 276,795 241,248 266,630 272,235 277,957 283,797 347,615 Present value of Net Cash Flow - 195,902 253,350 202,804 100,508 172,566 135,413 134,743 123,862 113,860 104,665

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 347,615 Initial yield (NOI I) 317,729 11.35% Yield 9.00% Cap rate 9.50% Initial yield (NOI II) 309,729 11.06% Discount rate 11.07% Capitalized Terminal Value, year 11 3,659,109 Potential yield (NOI I) 323,745 11.56% Cap rate for Terminal Value 9.50% Present value of Terminal Value 1,280,467 Potential yield (NOI I) - with market rents 324,724 11.60% Vacancy rate for Terminal Value 8.0 % 1. year forecasted yield (NOI II) 212,837 7.60% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 1,537,674 (55 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 1,280,467 (45 %) Average economical vacancy rate 11.9 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 2,818,142 (100 %)

Rounding (+/-) (18,142) *Average during 10 years MARKET VALUE (EUR) 2,800,000 Market value EUR/sqm 439 Accuracy +/- 10 % Value range (EUR) 2 520 000 - 3 080 000 RENT ROLL Hevoshaankatu 3

Lease Agreement Information Market Information 6,382.5 m2 17 Tenants 37,016.40 38,266.00 (81.60)

Unit 5 Office 405.0 m2 Pöyry Finland Oy until further notice Indexation 01/04/2014 31/03/2020 6 3,545.70 8.75 leased 9.00 3,645.00 (99.30) 25 EUR/m2 6 8.0 % Unit 6 Office 135.0 m2 Baltic Bulk Oy until further notice Indexation 01/12/2017 2 1,233.25 9.14 leased 9.00 1,215.00 +18.25 25 EUR/m2 6 8.0 % Unit 7 Office 268.5 m2 Lindström Oy fixed Indexation 01/01/2019 31/12/2020 3 2,567.18 9.56 leased 9.00 2,416.50 +150.68 25 EUR/m2 6 8.0 % Unit 8 Parking 1 pcs Pöyry Finland Oy until further notice Indexation 01/04/2014 1 51.44 51.44 leased 0.00 0.00 +51.44 - 6 8.0 % Unit 9 Office 415.0 m2 Inspecta Oy fixed Indexation 01/04/2019 31/03/2022 3,910.41 9.42 leased 9.00 3,735.00 +175.41 25 EUR/m2 6 8.0 % Unit 10 Parking 12 pcs vacant 0.00 0.00 - 12 8.0 % Unit 11 Storage 876.0 m2 Posti Kiinteistöt Oy fixed Indexation 01/05/2019 30/04/2022 3,642.73 4.16 leased 4.00 3,504.00 +138.73 - 6 8.0 % Unit 12 Office 200.0 m2 L&T Biowatti Oy until further notice Indexation 01/06/2010 6 1,709.46 8.55 leased 9.00 1,800.00 (90.54) 25 EUR/m2 6 8.0 %

Unit 14 Storage 70.0 m2 Porin Mainostuotanto Oy until further notice Indexation 01/05/2004 6 568.41 8.12 leased 4.00 280.00 +288.41 - 6 8.0 % Unit 15 Storage 10.0 m2 Porin Mainostuotanto Oy until further notice Indexation 01/05/2004 6 81.20 8.12 leased 4.00 40.00 +41.20 - 6 8.0 % Unit 16 Storage 50.0 m2 Porin Mainostuotanto Oy until further notice Indexation 01/05/2004 6 406.01 8.12 leased 4.00 200.00 +206.01 - 6 8.0 % Unit 17 Other (no GLA) 0.0 m2 TeliaSonera Finland Oyj Unibase until further notice Indexation 01/10/1995 12 116.21 leased 100.00 100.00 +16.21 - 6 8.0 % Unit 18 Other 18.0 m2 TeliaSonera Finland Oyj Unibase until further notice Indexation 01/01/2007 12 217.21 12.07 leased 9.00 162.00 +55.21 - 6 8.0 % Unit 19A & 19B Office 1,025.5 m2 Posti Kiinteistöt Oy fixed Indexation 01/05/2019 30/04/2022 8,366.40 8.16 leased 9.00 9,229.50 (863.10) 25 EUR/m2 6 8.0 % Unit 20 Storage 562.0 m2 Posti Kiinteistöt Oy fixed Indexation 01/05/2019 30/04/2022 2,337.00 4.16 leased 4.00 2,248.00 +89.00 - 6 8.0 % Unit 21 Other 70.0 m2 Inspecta Oy fixed Indexation 01/04/2019 239.59 3.42 leased 3.00 210.00 +29.59 - 6 8.0 % Unit 22 Storage 70.0 m2 Ruosila Oy fixed Indexation 01/01/2019 31/12/2023 1 246.36 3.52 leased 4.00 280.00 (33.64) - 6 8.0 % Unit 23 Storage 362.5 m2 Ruosila Oy fixed Indexation 01/01/2019 31/12/2023 1 1,275.79 3.52 leased 4.00 1,450.00 (174.21) - 6 8.0 % Unit 24 Storage 229.5 m2 Ruosila Oy fixed Indexation 01/01/2019 31/12/2023 1 807.71 3.52 leased 4.00 918.00 (110.29) - 6 8.0 % Unit 25 Storage 329.0 m2 Ruosila Oy fixed Indexation 01/01/2019 31/12/2023 1 1,157.89 3.52 leased 4.00 1,316.00 (158.11) - 6 8.0 % Unit 26 Other 324.0 m2 Lindström Oy fixed Indexation 01/01/2019 31/12/2020 3 1,153.82 3.56 leased 3.00 972.00 +181.82 - 6 8.0 % - Parking 4 pcs Ruosila Oy until further notice 01/01/2019 1 0.00 0.00 leased 0.00 0.00 0.00 - 6 8.0 % Unit 24 osa Storage 148.0 m2 Posti Kiinteistöt Oy fixed Indexation 01/05/2019 30/04/2022 615.44 4.16 leased 4.00 592.00 +23.44 25 EUR/m2 6 8.0 % Unit 24 osa Storage 126.0 m2 vacant 4.00 504.00 25 EUR/m2 12 8.0 % Parking 50 pcs Posti Kiinteistöt Oy until further notice 01/05/2019 1 0.00 0.00 leased 0.00 0.00 0.00 - 6 8.0 % Unit 21 osa Other 166.0 m2 vacant 4.00 664.00 25 EUR/m2 12 8.0 % Project Meg February 2019

Tuusula, Hyrylänkatu 8

Key Property Overview Property Type: Retail property Year Built/Refurbished: 1999

Total Lettable Area: 3,419 sqm Vacant area: 724 sqm Vacancy: 15.3% Land Plot Size: 4,489 sqm Photo Tenure: Freehold Number of Tenants: 14 Gross Rent: € 445,225 Net Rent: € 308,801 Total ERV (gross): € 508,012 ERV of Occupied Areas: € 427,386 Over/Under rented: 3.5 % WAULT to Break: 2.0 years WAULT to Expiry: 2.0 years

Valuation as at: 22 February 2019

Gross Value: N/A Location Plan Purchasers Costs: N/A Capex: € 205,277 Market Value (net) € 3,800,000 Initial Yield 8.13% Reversionary Yield 9.78% Capital Value / sq m € 1,111 Vacant Possession Value € 2,300,000 Estimated Reinstatement € 6,200,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Office 2 850 € 154,269 € 181 € 132,600 € 156

Retail 8 1,440 € 246,280 € 194 € 290,538 € 202

Storage 3 1,039 € 36,775 € 76 € 74,794 € 72

Other 3 90 € 7,903 € 88 € 10,080 € 112

Total 14 3,419 € 445,225 € 165 € 508,012 € 149 € 3,800,000 € 1,111 8.13%

Project Meg February 2019

Description

The building has a four-storey part in former residential but currently in office use and single-storey retail premise sections on both sides. The property also has a wide basement floor. The residential past is visible as the rooms include shower rooms and kitchen equipment. Total area of the subject property is 3,419 sqm which comprises of office premises, ground floor retail space and some technical spaces. According to the technical due diligence survey provided to us (JLL, 19/11/2018), the building is overall in satisfactory condition. The estimated remaining useful economic life of the building is approx. 30-40 years.

Location

Macro: The subject property is a retail property located in Tuusula, north from Vantaa and Helsinki. Tuusula has a population of ca. 38,500 and is part of the greater Helsinki region.

The macro location is assessed as good/satisfactory.

Micro: The property is located in Hyrylä, the central district of Tuusula with around 8,000 inhabitants. The property is located along the main road 45, which runs from Hyvinkää to Helsinki. The distance to Helsinki city centre is ca. 25 km and the Helsinki-Vantaa international airport is a 15- minute car ride away. The property is located in Tuusula's centre, with most of the commercial services clustered in the same city block. Other than that, the surroundings consist of residential buildings.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located some 2 km from the end of Helsinki-Tuusula motorway and around 6 km from the Helsinki-Lahti Motorway, which indicates a 5 and 10 minutes’ drive respectfully. Accessibility by car is good. Accessibility by public transport is adequate. The closest public transport possibility is a bus stop just beside the property. The travel time to Helsinki city centre is 55 minutes by public transportation.

Tenancies

The property is 84.7 % leased to 14 tenants, generating a total rental income of 445,225 €/year. The rental income is 3.5% above market rent and the WALT is around 2.0 years until first break.

The main tenant is Tuusulan kunta (City of Tuusula).

Details of the various leases can be found in the Tenant Details sheet, which is part of the calculation in the appendices and the division of income per use type can be found in the summary of this report.

Legal

Title and Tenure:

Tenure: Freehold Register number: 858-1-8017-1, 858-1-8017-2 Site area: 4,489 sqm Owner of the plots: M7 EREIP IV Camelot Propco 8 Oy Leasehold details if applicable: -

The area consists of two plots. We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD:

• There are water damages in the property. The amount of damages is stated to be €10,000. This is not included in the business plan capex budget provided. • There has been indications of indoor air issues in the past, but note has been made available stating that it has been determined that based on sturides the health protection requirements are fulfilled. • There has been water leakage in the property in January 2016. There is some paper work missing concerning the follow up of the renovation.

Project Meg February 2019

• There are rent receivables amounting to EUR 8,047.74 from Alperos Oy and EUR 1,801.21 from Tuusulan maalaus-ja tasoitetyöt Oy. According to the information provided by the Client, both tenants are constantly paying their rent approximately one (1) month late. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property .

Planning:

Zoning plan: Detailed plan Zoning: AL-30, LPA-9 Permitted uses: The larger plot is intended for housing, retail and office use and the smaller for parking.

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to a technical due diligence survey provided to us (JLL, 19/11/2018), the building is overall in satisfactory condition. Building has aged normally with some technical system in the need of renewal due to ageing during the next 10 years. The estimated remaining useful economic life of the building is approx. 30-40 years. We have received a business plan including capex budget and have adopted these as is in the calculation. There are water damages in the property. The amount of damages is stated to be €10,000. This is not included in the capex budget provided and adopted in the calculation.

Environmental:

We have received EDD report by Ambiente dated 25/11/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

We emphasize that we have not carried out a technical or environmental assessment of the property and are not qualified to do so. We can not accept any liability for the information contained in this paragraph.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The rents present monthly gross rents unless otherwise stated. The comparable evidence is limited.

Surface sq m An nual Rent City lfa €/sq m/year Date Remarks Helsinki 400 144 Q3 2017 Office unit. Neighbourhood shopping centre property Vantaa 180 170 Q2 2017 Office unit. Neighbourhood retail/office property Vantaa 525 180 Q2 2017 Office unit. Neighbourhood retail/office property Järvenpää 670 210 Q2 2017 Office unit. Neighbourhood retail/office property Järvenpää 48 160 Q1 2017 Retail unit. Neighbourhood retail/office property

We estimate the Vantaa and Helsinki comparables to have slightly stronger competition position but Järvenpää comparables have similar competitive position as the subject property. It should also be noted that majority of the potential occupiers are local which will keep the ability to

Project Meg February 2019

pay rent generally lower than in Vantaa and Helsinki. Although limited demand tends to make the variance in rents to be wider and more dependent on the type of tenant signing the lease than when the demand is high.

Based on the evidence provided above and leasing evidence in the property, we have adopted following gross market rents for the subject property: 156 €/sqm/year for office spaces and from 180 to 240 €/sqm/year for retail premises depending on the specific space in question.

Property is located next to Tuusulanväylä highway in Hyrylä (the administrative and largest center of Tuusula). The micro location is good as Tuusulanväylä grants good accessibility from south (from Helsinki) and several other smaller roads grant good access to nearby regional centres of Kerava and Järvenpää. Nearby properties consists of mainly residential properties but include also S-market grocery store, Alko, McDonald's and Teboil gas station. There is more retail and service operators located north from the property. Also bus station is located few blocks north from the property. Demand for retail and office premises overall in Kerava, Tuusula and Järvenpää is limited and most likely occupiers would be from service sector or smaller local retail operators, which reflects also to the rental levels of the property.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY Remarks Järvenpää 3,000 Q3 2018 5,700,000 1,900 An 20-year old building, fully let Helsinki Q2 2018 2,400 30-year old shopping centre with some 40 tenants at sale Helsinki Q1 2018 1,900 9% 10-year old multitenant warehouse, short WALT 8 Fairly new retail/office property, fully let, WALT of around 5 years at time of Järvenpää 5,900 Q4 2014 17,000,000 2,900 sale

The multilet retail/office properties have traded at around 8 to 9% yields in last years. We estimate the market situation has improved slightly but still achieving clearly below 8% initial yield level requires decent WALT. The prices per sqm in comparables are higher than in subject property for the reason of groceries forming a significant share of rent income, which make the investment demand higher and the asset more attractive. Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €3.32/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 7.50% and cap rate of 8.00% in the calculation

• Capital expenditure We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €205,277.

• Marketability The vacancy rate of the property is quite high and the WALT is short. Building is 17 years old but in our understanding in good/satisfactory condition and suits the current use and occupiers satisfactorily. Even though the property is located in Tuusula which is secondary location, the micro location in Hyrylä is good. Due to aforementioned we consider investment demand is mediocre and the potential buyer would be domestic fund or local private investor. Due to the high vacancy and short WALT the marketing period is estimated quite long, around 12 to 24 months. We estimate that if the occupancy rate was increased along with WALT the marketability of the property would increase. Market value is based on assumed exposure time of 18 months.

Suitability for Loan Security

Project Meg February 2019

As at the valuation date, the property has an economic vacancy rate of 15.3% and is let to 14 tenants with WALT of 2.0 years. From a banking perspective, the main risk lies in maintaining the current occupancy rate and letting the vacant area.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Hyrylänkatu 8

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 12.38 508,012 508,012 513,092 523,354 533,821 544,497 555,387 566,495 577,825 589,381 601,169 613,192 Over (+) / sub (-) rents - +17,839 +28,749 +16,916 +19,031 +13,671 (5,504) (5,614) (5,726) (5,841) (5,957) (506) - POTENTIAL RENTAL INCOME 12.82 525,851 536,760 530,007 542,385 547,492 538,993 549,773 560,769 571,984 583,424 600,662 613,192 Idle time, months - - (165,019) (44,356) (3,199) (38,560) (45,383) - - - - (3,834) - Reduction from market rents - (80,626) (1,728) (28,123) (34,743) (37,722) (49,217) (54,830) (55,927) (57,045) (58,186) (59,670) (61,319) Rent-free periods ------Vacancy reductions, total - (80,626) (166,747) (72,479) (37,942) (76,282) (94,600) (54,830) (55,927) (57,045) (58,186) (63,504) (61,319) Vacancy rate (%) - 15.3 % 31.1 % 13.7 % 7.0 % 13.9 % 17.6 % 10.0 % 10.0 % 10.0 % 10.0 % 10.6 % 10.0 % EFFECTIVE RENTAL INCOME 10.85 445,225 370,013 457,529 504,443 471,210 444,393 494,943 504,842 514,939 525,237 537,159 551,873 Operating expenses (2.98) (122,424) (122,424) (123,649) (126,122) (128,644) (131,217) (133,841) (136,518) (139,248) (142,033) (144,874) (147,772) Repairs (0.34) (14,000) (14,000) (14,140) (14,423) (14,711) (15,005) (15,306) (15,612) (15,924) (16,242) (16,567) (16,899) Tenant improvements (0.40) - (47,288) (49,048) - (16,314) (64,751) ------Other costs ------NET OPERATING INCOME 7.53 308,801 186,301 270,692 363,899 311,541 233,420 345,796 352,712 359,766 366,962 375,717 387,203 Capex investments - - (11,754) (11,754) (2,584) - (122,000) (9,180) (9,317) (9,457) (9,599) (9,743) - NET CASH FLOW 7.53 308,801 174,547 258,938 361,315 311,541 111,420 336,616 343,395 350,309 357,363 365,974 387,203 Present value of Net Cash Flow - 166,772 225,851 287,693 226,452 73,933 203,906 189,892 176,840 164,686 153,963

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 387,203 Initial yield (NOI I) 322,801 8.49% Yield 7.50% Cap rate 8.00% Initial yield (NOI II) 308,801 8.13% Discount rate 9.54% Capitalized Terminal Value, year 11 4,840,034 Potential yield (NOI I) 389,427 10.25% Cap rate for Terminal Value 8.00% Present value of Terminal Value 1,945,458 Potential yield (NOI I) - with market rents 371,587 9.78% Vacancy rate for Terminal Value 10.0 % 1. year forecasted yield (NOI II) 186,301 4.90% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 1,869,988 (49 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 1,945,458 (51 %) Average economical vacancy rate 13.4 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 3,815,446 (100 %)

Rounding (+/-) (15,446) *Average during 10 years MARKET VALUE (EUR) 3,800,000 Market value EUR/sqm 1,111 Accuracy +/- 10 % Value range (EUR) 3 420 000 - 4 180 000 RENT ROLL Hyrylänkatu 8 12 Lease Agreement Information Market Information 3,419.3 m2 14 Tenants 37,102.12 42,334.30 +1,486.62

Space 1st possible Notice period Contract rent Over (+) / under (-) General market vacancy number Space type GLA Tenant Lease type Start date End date termination date (months) Rent-free months Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction Unit 1A Retail 266.0 m2 Aktia Pankki Oyj until further notice 01/05/2014 30/04/2019 6 6,490.21 24.40 leased 20.00 5,320.00 +1,170.21 75 EUR/m2 6 10.0 % Unit 2A Other (no GLA) 0.0 m2 DNA Oy until further notice 01/06/2000 12 272.99 leased 150.00 150.00 +122.99 - 6 10.0 % Unit 2B Other (no GLA) 0.0 m2 Elisa Oyj until further notice 12 273.47 leased 150.00 150.00 +123.47 - 6 10.0 % Unit 1B Retail 57.0 m2 Hius Day Oy until further notice 01/04/2013 6 1,012.92 17.77 leased 20.00 1,140.00 (127.08) 75 EUR/m2 6 10.0 % Unit 1C Retail 146.0 m2 Marinoxa until further notice 4 1,487.14 10.19 leased 18.00 2,628.00 (1,140.86) 75 EUR/m2 6 10.0 % Unit 1D Storage 321.5 m2 vacant 6.00 1,929.00 - 12 10.0 % Unit 1E Retail 183.0 m2 Koirakeskus PiskiTiski Oy until further notice 31/08/2019 6 1,458.11 7.97 leased 6.00 1,098.00 +360.11 75 EUR/m2 6 10.0 % Unit 1F Storage 40.0 m2 Koirakeskus PiskiTiski Oy until further notice 31/08/2019 6 318.71 7.97 leased 6.00 240.00 +78.71 - 6 10.0 % Unit 1G Storage 10.0 m2 Koirakeskus PiskiTiski Oy until further notice 31/08/2019 6 79.68 7.97 leased 6.00 60.00 +19.68 - 6 10.0 % Unit 1H Retail 141.5 m2 HOPPE Nordic Countries Oy until further notice 15/08/2015 31/07/2018 6 3,288.93 23.24 leased 22.00 3,113.00 +175.93 75 EUR/m2 6 10.0 % Unit 1I Office 44.5 m2 Asianajotoimisto Maarika Hällström until further notice 01/05/2002 1 611.53 13.74 leased 13.00 578.50 +33.03 75 EUR/m2 6 10.0 % Unit 1J Retail 198.5 m2 Uudenmaan Rakennus ja Putkitus Oy fixed 01/01/2009 31/07/2020 2,599.06 13.09 leased 15.00 2,977.50 (378.44) 75 EUR/m2 6 10.0 % Unit 1 Retail 207.0 m2 Alperos Oy until further notice 01/08/2016 31/07/2021 6 3,271.77 15.81 leased 15.00 3,105.00 +166.77 75 EUR/m2 6 10.0 % Unit 2 Other 90.0 m2 Seepsula Oy fixed 01/04/2008 31/03/2028 112.09 1.25 leased 6.00 540.00 (427.91) - 6 10.0 % Unit K1 Storage 267.5 m2 Tuusulan maalaus-ja tasoitetyöt Oy until further notice 01/01/2016 3 1,335.09 4.99 leased 6.00 1,605.00 (269.91) - 6 10.0 % Unit 2C Office 48.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 729.63 15.20 leased 13.00 624.00 +105.63 75 EUR/m2 6 10.0 % Unit 2D Office 83.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 1,261.66 15.20 leased 13.00 1,079.00 +182.66 75 EUR/m2 6 10.0 % Unit 2E Office 132.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 2,006.50 15.20 leased 13.00 1,716.00 +290.50 75 EUR/m2 6 10.0 % Unit 2F Office 57.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 866.44 15.20 leased 13.00 741.00 +125.44 75 EUR/m2 6 10.0 % Unit 4A Office 44.5 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 676.43 15.20 leased 13.00 578.50 +97.93 75 EUR/m2 6 10.0 % Unit 4B Office 48.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 729.63 15.20 leased 13.00 624.00 +105.63 75 EUR/m2 6 10.0 % Unit 4C Office 57.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 866.44 15.20 leased 13.00 741.00 +125.44 75 EUR/m2 6 10.0 % Unit 3A Office 293.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 4,453.81 15.20 leased 13.00 3,809.00 +644.81 75 EUR/m2 6 10.0 % Unit 2G Office 43.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 653.63 15.20 leased 13.00 559.00 +94.63 75 EUR/m2 6 10.0 % Unit K2 Storage 19.0 m2 Tuusulan Kunta fixed 01/01/2019 31/12/2022 155.81 8.20 leased 6.00 114.00 +41.81 - 6 10.0 % Unit 3 Retail 84.5 m2 vacant 20.00 1,690.00 75 EUR/m2 12 10.0 % Unit 4 Retail 72.0 m2 Studio Lindell Oy Ab until further notice 01/02/2019 3 915.17 12.71 leased 20.00 1,440.00 (524.83) 75 EUR/m2 6 10.0 % Unit 5 Storage 78.0 m2 Koirakeskus PiskiTiski Oy until further notice 31/08/2019 6 621.49 7.97 leased 6.00 468.00 +153.49 - 6 10.0 % Unit 6 & 6A Storage 233.3 m2 vacant 6.00 1,399.80 - 12 10.0 % Unit 1L Storage 60.0 m2 Koirakeskus PiskiTiski Oy until further notice 31/08/2019 6 478.07 7.97 leased 6.00 360.00 +118.07 - 6 10.0 % Unit M1 Storage 9.5 m2 Koirakeskus PiskiTiski Oy until further notice 31/08/2019 6 75.69 7.97 leased 6.00 57.00 +18.69 - 6 10.0 % Unit 1K Retail 85.0 m2 vacant 20.00 1,700.00 75 EUR/m2 12 10.0 % Project Meg February 2019

Raahe, Jokelantie 3

Key Property Overview Property Type: Retail/warehouse property Year Built/Refurbished: 2006

Total Lettable Area: 5,516 sqm Vacant area: 5,516 sqm Vacancy: 100% Land Plot Size: 22,994 sqm Tenure: Freehold Number of Tenants: 0 Gross Rent: € 0 Net Rent: € -80,511 Total ERV (gross): € 397,152 Photo ERV of Occupied Areas: € 0 Over/Under rented: 0% WAULT to Break: 0 years WAULT to Expiry: 0 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 135,785 Market Value (net) € 1,100,000

Initial Yield -7.32% Location Plan Reversionary Yield 28.79% Capital Value / sq m € 199 Vacant Possession Value € 1,100,000 Estimated Reinstatement 4,400,000 € Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Office 0 299 € 0 € 0 € 21,528 € 72

Retail 0 5,217 € 0 € 0 € 375,624 € 72

Total 0 5,516 € 0 € 0 € 397,152 € 72 € 1,100,000 € 199 -7.32%

Project Meg February 2019

Description

The property consists of two separate buildings, the smaller one being around 600 sqm and the larger one around 6,700 sqm. The smaller building comprises mainly retail warehouse space. The larger building has small office unit in second floor but otherwise it includes retail warehouse and warehouse space. There are also around 1,600 sqm of cold shelter premises in the yard.

The building has extensive customer parking. According to the technical due diligence survey provided to us (JLL, 23/11/2018), the building is overall in good condition. The estimated remaining useful economic life of the building is approx. 30-40 years.

Location

Macro: The property is located in Raahe, Northern Ostrobothnia. Raahe is a municipality on the coast of the Gulf of Bothnia with a population of ca. 25,000. Oulu is the closest major city roughly 60 km North-East from Raahe.

The macro location is assessed as secondary.

Micro: The property is located in Kamutanmäki, along the national road 8, which runs along the western coast. The national road has an exit right by the property, and the property is highly visible to the road. The distance to Raahe town centre is approximately 4 km. On the other side of the national road there is the residential area of Maunula. The immediate surroundings of the property include some retail properties. Overall the surroundings are rather scarcely built.

The micro location is considered to be suitable for the purpose of the building but secondary.

Accessibility

The asset is located immediately beside national road 8, which is the key road in the region. Accessibility by car is good. Raahe region does not have good public transportation. The subject property is reachable with public transport, which operates infrequently.

Tenancies

The property is currently vacant.

Legal

Title and Tenure:

Tenure: Freehold Site area: 22,994 sqm Owner of the plot: M7 EREIP IV Camelot Propco 12 Oy Leasehold details if applicable: -

We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property .

Planning:

Zoning plan: Detailed plan Zoning: KTY Permitted uses: Business and office premises According to our interpretation of the zoning plan the current building and use seem to be permitted.

Project Meg February 2019

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 23/11/2018), the building is overall in good condition. The estimated remaining useful economic life of the building is approx. 30-40 years.

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 03/08/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The comparables below are net rents unless stated otherwise. The comparable evidence is limited.

Surface sq m An nual Rent City lfa €/sqm/year Date Remarks Turku 3,700 86 Q1 2017 Better location, similar property quality Kaarina 600 88 (gross) Q3 2016 Better location, similar property quality Kouvola 4,300 76 Q1 2015 Comparable macro location, similar property quality Oulu 3,100 80 Q4 2013 Better location, similar property quality Pori 11,000 50 Slightly better location, similar property quality

The comparable lease transactions mainly locate in significantly larger cities. For small town with limited occupier demand the rent level is estimated to be on lower end of the range.

Property is a former hardware store with around 1,600 sqm cold shelter premises. The property is most functional in single-tenant use and dividing premises most likely leads to loss in lettable area. On the other hand, in Raahe region there is very limited amount of large enough occupiers to let the entire property. All in all, the lettability is estimated to be challenging in regressive municipality and likely requires attracting a completely new occupier to the area. Thus, the lettability is not only a question of rental levels but the demand towards the property. In addition, the property has been vacant for several years. Also, the suitability primarly to single tenant use limits the demand and decreases the rental level.

Based on the evidence provided above, we adopted the following gross market rent: 72 €/sqm/year

Project Meg February 2019

Investment Comparables:

Most of the comparables locate in growing areas making lettability potentially easier. However, in vacant properties the pricing clearly differs from the technical value of the building. Valuation Assumptions

• Void periods and leasing assumptions We estimate the average void period at 6 months for currently rented spaces and 24 months for currently vacant spaces. Overall, we believe the property has weak lettability.

• Operating costs Based on the information received we have applied a total of €2.05/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 14.00% and cap rate of 10.00% in the calculation

• Capital expenditure We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €135,785.

• Marketability The local investment market has activated through Finland during the last years. Also, riskier vacant properties have transacted. However, most investors are still focusing on growing regions with positive population growth forecast. The investment size of the property is relatively large for private investors as vacant, but an owner-occupier could also be potential buyer. The estimated marketing time would be at least 24 months. Market value is based on assumed exposure time of 24 months.

Suitability for Loan Security

As at the valuation date, the property is vacant. From a banking perspective, the risk lies in the ability to lease up the property.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to form moderate security for a mortgage advance, subject to a suitable loan to value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Jokelantie 3

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 6.00 397,152 397,152 401,124 409,146 417,329 425,675 434,189 442,873 451,730 460,765 469,980 479,380 Over (+) / sub (-) rents ------POTENTIAL RENTAL INCOME 6.00 397,152 397,152 401,124 409,146 417,329 425,675 434,189 442,873 451,730 460,765 469,980 479,380 Idle time, months - - (397,152) (401,124) ------Reduction from market rents - (397,152) - - (61,372) (62,599) (63,851) (65,128) (66,431) (67,760) (69,115) (70,497) (71,907) Rent-free periods ------Vacancy reductions, total - (397,152) (397,152) (401,124) (61,372) (62,599) (63,851) (65,128) (66,431) (67,760) (69,115) (70,497) (71,907) Vacancy rate (%) - 100.0 % 100.0 % 100.0 % 15.0 % 15.0 % 15.0 % 15.0 % 15.0 % 15.0 % 15.0 % 15.0 % 15.0 % EFFECTIVE RENTAL INCOME - - - - 347,774 354,730 361,824 369,061 376,442 383,971 391,650 399,483 407,473 Operating expenses (1.99) (76,511) (76,511) (77,276) (149,309) (152,295) (155,341) (158,448) (161,617) (164,849) (168,146) (171,509) (92,352) Repairs (0.06) (4,000) (4,000) (4,040) (4,121) (4,203) (4,287) (4,373) (4,460) (4,550) (4,641) (4,734) (4,828) Tenant improvements (0.25) - - (180,765) ------Other costs ------NET OPERATING INCOME (1.22) (80,511) (80,511) (262,081) 194,344 198,231 202,196 206,240 210,365 214,572 218,863 223,241 310,292 Capex investments - - - - - (7,751) (15,000) (21,939) (22,268) (22,602) (22,941) (23,285) - NET CASH FLOW (1.22) (80,511) (80,511) (262,081) 194,344 190,480 187,196 184,301 188,097 191,970 195,922 199,956 310,292 Present value of Net Cash Flow - (74,699) (209,323) 133,621 112,739 95,376 80,834 71,018 62,394 54,817 48,160

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 310,292 Initial yield (NOI I) (76,511) -6.96% Yield 14.00% Cap rate 10.00% Initial yield (NOI II) (80,511) -7.32% Discount rate 16.17% Capitalized Terminal Value, year 11 3,102,924 Potential yield (NOI I) 316,641 28.79% Cap rate for Terminal Value 10.00% Present value of Terminal Value 693,395 Potential yield (NOI I) - with market rents 316,641 28.79% Vacancy rate for Terminal Value 15.0 % 1. year forecasted yield (NOI II) (80,511) -7.32% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 374,935 (35 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 693,395 (65 %) Average economical vacancy rate 32.0 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 1,068,330 (100 %)

Rounding (+/-) 31,670 *Average during 10 years MARKET VALUE (EUR) 1,100,000 Market value EUR/sqm 199 Accuracy +/- 10 % Value range (EUR) 990 000 - 1 210 000 RENT ROLL Jokelantie 3

Lease Agreement Information Market Information 5,516.0 m2 No tenants 0.00 33,096.00 0.00

Space 1st possible Notice period Contract rent Over (+) / under (-) General market vacancy number Space type GLA Tenant Lease type End date termination date (months) Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction Unit 1 Retail 2,425.0 m2 vacant 6.00 14,550.00 25 EUR/m2 24 15.0 % Unit 2 Retail 2,442.0 m2 vacant 6.00 14,652.00 25 EUR/m2 24 15.0 % Unit 3 Retail 350.0 m2 vacant 6.00 2,100.00 25 EUR/m2 24 15.0 % Unit 4 Office 299.0 m2 vacant 6.00 1,794.00 25 EUR/m2 24 15.0 % Unit 5 (yard) Other (no GLA) 1,643.0 m2 vacant 0.00 0.00 25 EUR/m2 24 15.0 % Project Meg February 2019

Raahe, Jokelantie 5

Key Property Overview Property Type: Commercial premise Year Built/Refurbished: 20072

Total Lettable Area: 2,778 sqm Vacant area: 1,593 sqm Vacancy: 51.8% Land Plot Size: 7,463 sqm Tenure: Freehold Number of Tenants: 1 Gross Rent: € 239,792 Net Rent: € 115,538 Photo Total ERV (gross): € 216,645 ERV of Occupied Areas: € 92,391 Over/Under rented: 10.7% WAULT to Break: 5.7 years WAULT to Expiry: 5.7 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 50,622

Market Value (net) € 1,200,000 Initial Yield 4.78% Location Plan Reversionary Yield 13.21% Capital Value / sq m €432 Vacant Possession Value € 700,000 Estimated Reinstatement € 2,300,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Storage 0 259 € 0 € 0 € 20,202 € 78

Retail 1 2,283 € 111,588 € 98 € 178,074 € 78

Other 1 235.5 € 3,950 € 98 € 18,369 € 78

Total 1 2,778 € 239,792 € 98 € 216,645 € 78 € 1,200,000 € 432 4.78%

Project Meg February 2019

Description

The property comprises 2,778 sqm of modern retail/ warehouse with an outdoor retail space and extensive customer parking. The building has a steel frame and cladding. According to the technical due diligence survey provided to us (JLL, 23/11/2018), the building is mainly in good condition. The estimated remaining useful economic life of the building is approx. 30-40 years.

The building is currently divided into two units, the one being let to Jysk and the other one being vacant. The vacant premises are in need of some repairs, before they can be let. The vinyl floor carpets need to be at least partly replaced and the gypsum board partitioning between the two spaces as well as the expansion joint in the warehouse repaired.

Location

Macro: A retail/warehouse property built in 2007 and located in Raahe, Northern Ostrobothnia. Raahe is a municipality on the coast of the Gulf of Bothnia with a population of ca. 25,000. The property has currently one tenant, Jysk Oy.

The macro location is assessed as secondary.

Micro: The property is located in Kamutanmäki, along the national road 8, which runs along the western coast. The national road has an exit right by the property, and the property is highly visible to the road. The distance to Raahe town centre is approximately 4 km. On the other side of the road there is the residential area of Maunula. The immediate surroundings of the property include some retail properties. Overall the surroundings are rather scarcely built.

The micro location is considered to be suitable for the purpose of the building but secondary.

Accessibility

Tenancies

The property is 48.2 % leased to one tenant, generating a total rental income of € 115,538/year. The rental income is 10.7% above market rent and the WALT is around 5.7 years until first break.

The main tenant is Jysk Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: Site area: 7,463 sqm Owner of the plot: M7 EREIP IV Camelot Propco 11 Oy Leasehold details if applicable: - We have not received a legal due diligence report for this property.

We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Zoning plan: Detailed plan Zoning: KTY Permitted uses: Business and office premises

Project Meg February 2019

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 23/11/2018), the building is mainly in good condition. The building requires no notable technical investments in the next 10 years. The estimated remaining useful economic life of the building is approx. 30-40 years.

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 03/08/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

We emphasize that we have not carried out a technical or environmental assessment of the property and are not qualified to do so. We can not accept any liability for the information contained in this paragraph.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The comparables below are gross rents unless stated otherwise. The comparable evidence is limited.

Surface sq m An nual Rent City lfa €/sqm/year Date Remarks Turku 3,700 86 (net) Q1 2017 Better location, similar property quality Kaarina 600 88 Q3 2016 Better location, similar property quality Kangasala 2,100 113 Q2 2016 Better location, similar property quality Kokkola 1,800 96 Q1 2015 Better location, similar property quality Kouvola 500 94 Q4 2014 Slightly better location, similar property quality Kouvola 1,100 84 Q3 2014 Slightly better location, similar property quality

The comparable lease transactions are from larger cities but show that in more challenging micro locations the rent levels even in modern properties are in a range of €84 to €96/sqm/year. Due to location in small town and micro location outside Raahe's established retail warehouse concentration we estimate rent level to be in the lower end of the range.

The property is split into two retail units, but it has only one social premises that tenants need to share. The property could be divided also for smaller units but dividing premises most likely leads to loss in lettable area. On the other hand, in Raahe region there is very limited amount of large enough occupiers to let premises of current size. In addition, despite good visibility to motorway 4 the micro location is secondary, the most attractive retail warehouse concentration being located next to Raahe town centre. All in all, the lettability is estimated to be challenging in regressive municipality.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rent: 78 €/sqm/year

Project Meg February 2019

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. sq m Price City lfa Date Price € € / sqm GIY Remarks Raasepori 3,600 Q2 2018 1,000,000 280 Inferior location, price reflects high vacancy Pietarsaari 2,800 Q4 2016 1,500,000 530 Fully let modern retail warehouse, moderate lease maturity Janakkala 4,600 Q4 2016 2,300,000 500 Short lease maturity, single let property Raasepori 3,000 Q2 2015 1,900,000 630 Price reflects fully let property and owners development plans Newish retail/warehouse, sold to owner -occupier for whom the building was Kemi 1,300 Q2 2015 1,000,000 800 originally constructed as well. Kauhava & 13% Two modern retail warehouses sold together with short remaining leases 10,000 Q4 2014 Raahe and estimated over rent Orivesi 2,600 Q3 2014 500,000 200 Modern retail property, half vacant at time of sale

The most comparable transaction to the subject property would be the newest deal made in Raasepori. This property was also only partly let but the lease maturity was shorter. The highest prices have typically been realised in owner-occupier. Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €1.74/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 10.00% and cap rate of 10.00% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €50,622.

• Marketability The local investment market has activated through Finland during the last years. Also more risky properties have transacted. However, the majority of investors are still focusing on regions with positive population growth forecast. Long lease maturity from Jysk secures part of the cash flow for several years but the saleability would improve significantly in case of reletting the vacant retail unit. Nevertheless, the pricing of these kind of assets is opportunistic and in our view the most potential purchaser would be a group of private investors. We estimate the marketing time to be at least 12 months but likely longer. Market value is based on assumed 18 months exposure time.

Suitability for Loan Security

As at the valuation date, the property is 48% let to a single tenant with a remaining lease term of little under 6 years. From a banking perspective, the risk lies in the tenant’s ability to satisfy the rent during the remainder of the lease and avoid non-payment and occupancy of the currently vacant area (around 57% of the total area).

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

Project Meg February 2019

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Jokelantie 5

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 6.50 216,645 216,645 218,811 223,188 227,651 232,204 236,849 241,586 246,417 251,346 256,372 261,500 Over (+) / sub (-) rents - +23,147 +23,147 +23,379 +23,846 +24,323 +24,810 +16,871 - - - - - POTENTIAL RENTAL INCOME 7.19 239,792 239,792 242,190 247,034 251,975 257,014 253,719 241,586 246,417 251,346 256,372 261,500 Idle time, months - - (124,254) (125,497) - - - (33,669) (17,171) - - - - Reduction from market rents - (124,254) - - (19,201) (19,585) (19,977) (20,376) (33,662) (36,963) (37,702) (38,456) (39,225) Rent-free periods ------Vacancy reductions, total - (124,254) (124,254) (125,497) (19,201) (19,585) (19,977) (54,045) (50,833) (36,963) (37,702) (38,456) (39,225) Vacancy rate (%) - 51.8 % 51.8 % 51.8 % 7.8 % 7.8 % 7.8 % 21.3 % 21.0 % 15.0 % 15.0 % 15.0 % 15.0 % EFFECTIVE RENTAL INCOME 3.47 115,538 115,538 116,694 227,833 232,390 237,038 199,674 190,752 209,455 213,644 217,917 222,275 Operating expenses (1.59) (53,166) (53,166) (53,698) (54,772) (55,867) (56,985) (58,125) (59,287) (60,473) (61,682) (62,916) (64,174) Repairs (0.15) (5,000) (5,000) (5,050) (5,151) (5,254) (5,359) (5,466) (5,576) (5,687) (5,801) (5,917) (6,035) Tenant improvements (0.20) - - (40,223) - - - - (33,022) - - - - Other costs ------NET OPERATING INCOME 1.72 57,372 57,372 17,722 167,910 171,268 174,694 136,083 92,868 143,295 146,161 149,084 152,066 Capex investments - - (1,292) (1,292) - - (5,000) (8,361) (8,486) (8,614) (8,743) (8,874) - NET CASH FLOW 1.72 57,372 56,080 16,431 167,910 171,268 169,694 127,722 84,382 134,681 137,418 140,210 152,066 Present value of Net Cash Flow - 52,969 13,845 126,229 114,866 101,535 68,179 40,185 57,221 52,086 47,413

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 152,066 Initial yield (NOI I) 62,372 5.20% Yield 10.00% Cap rate 10.00% Initial yield (NOI II) 57,372 4.78% Discount rate 12.09% Capitalized Terminal Value, year 11 1,520,655 Potential yield (NOI I) 181,626 15.14% Cap rate for Terminal Value 10.00% Present value of Terminal Value 485,693 Potential yield (NOI I) - with market rents 158,479 13.21% Vacancy rate for Terminal Value 15.0 % 1. year forecasted yield (NOI II) 57,372 4.78% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 674,529 (58 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 485,693 (42 %) Average economical vacancy rate 21.4 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 1,160,222 (100 %)

Rounding (+/-) 39,778 *Average during 10 years MARKET VALUE (EUR) 1,200,000 Market value EUR/sqm 432 Accuracy +/- 10 % Value range (EUR) 1 080 000 - 1 320 000 RENT ROLL Jokelantie 5

Lease Agreement Information Market Information 2,777.5 m2 1 Tenants 9,628.20 18,053.75 +1,928.95

Space 1st possible Notice period Contract rent Over (+) / under (-) Lease rollovers (at will General market vacancy number Space type GLA Tenant Lease type End date termination date (months) Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months contracts) reduction Retail 1,144.0 m2 Jysk Oy until further notice 31/10/2023 12 9,299.00 8.13 leased 6.50 7,436.00 +1,863.00 25 EUR/m2 6 0 times 15.0 % Other 40.5 m2 Jysk Oy until further notice 31/10/2023 12 329.20 8.13 leased 6.50 263.25 +65.95 25 EUR/m2 6 0 times 15.0 % Retail 1,139.0 m2 vacant 6.50 7,403.50 25 EUR/m2 24 - 15.0 % Storage 259.0 m2 vacant 6.50 1,683.50 25 EUR/m2 24 - 15.0 % Other 195.0 m2 vacant 6.50 1,267.50 25 EUR/m2 24 - 15.0 % Project Meg February 2019

Kotka, Jumalniementie 6

Key Property Overview Property Type: Commercial premise Year Built/Refurbished: 19822 & 1991

Total Lettable Area: 3,427 sqm Vacant area: 0 sqm Vacancy: 0 % Land Plot Size: 8,876 sqm Tenure: Freehold Number of Tenants: 2 Gross Rent: € 471,584 Net Rent: € 391,820 Total ERV (gross): € 366,084 Photo ERV of Occupied Areas: € 366,084 Over/Under rented: -28.8 % WAULT to Break: 2.7 years WAULT to Expiry: 2.7 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 651,077 Market Value (net) € 2,600,000 Initial Yield 15.07%

Reversionary Yield 11.01% Location Plan Capital Value / sq m € 759 Vacant Possession Value € 1,900,000 Estimated Reinstatement € 2,900,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Retail 2 3,315 € 455,278* € 137 € 358,020 € 108

Other 1 112 € 16,305 € 146 € 8,064 € 72

Total 2 3,427 € 471,584 € 138 € 366,084 € 107

* Does not include 8 months of remaining rent free granted for Vaalimaan Kauppakartano Oy

Project Meg February 2019

Description

The property comprises 3,427 sqm of retail park premises in satisfactory condition. The property has originally been completed in 1982 and extended in 1991. The construction is bricks with flat roofs. The property consists of one retail warehouse building built on one storey. The building has been divided to two retail units. The entrance opens to the 170 car parking lot located south side of the building. The loading docks are on the eastern wall.

The estimated remaining useful economic life of the building is approx. 20-30 years.

Location

Macro: Kotka is a city with a population of ca. 55,000, located by the Gulf of Finland, some 130 km east of Helsinki and 290 km west of St. Petersburg. The country's largest transhipment port is in Kotka.

The macro location is assessed as secondary.

Micro: The property is along the national road 15, in a visible spot in Jumalniemi, a big box retail area outside of Kotka city center. On the neighbouring plots there are retail occupiers such as Citymarket and Isku. The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located immediately beside national road 15, which is the key road in the region. Accessibility by car is good. Kotka city center is reachable from the subject property in 30 minutes by public transportation.

Tenancies

The property is 100 % leased to two tenants, generating a total rental income of € 471,584/year. The rental income is 28.8% above market rent and the WALT is around 2.7 years until first break. Property seems very over rented due to the fact that Vaalimaan Kauppakartano Oy has been granted rent free months of which 8 are still to come.

The main tenant is Vaalimaan Kauppakartano Oy (Rajamarket).

Legal

Title and Tenure:

Tenure: Freehold Register number: 285-30-1-10 Site area: 8,876 sqm Owner of the plot: M7 EREIP IV Monty Propco 5 Oy Leasehold details if applicable: - We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD: • Real estate tax and insurance costs are not charged from the tenants. • Karhunpesä Ky Paasi & Taisto’s lease agreement states that no rent adjustments shall be made.

We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property .

Planning:

Zoning plan: Detailed plan Zoning: KM-3 Permitted uses: Retail, big box allowed According to our interpretation of the zoning plan the current building and use seem to be permitted.

Project Meg February 2019

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 19/11/2018), the building is in adequate condition. The estimated remaining useful economic life of the building is approx. 20-30 years.

We have received a business plan including capex budget and have adopted these as is in the calculation. There is relatively big difference between the business plan and the TDD received concerning façade and roof repairs. TDD states the cost to be €773,000 and the business plan includes cost of €64,000 for spot fixes for façade and roof. Although it must be stated that we have received break down to capex items for the business plan only for the first five years thus we do not have information what the last five years are assumed to include Due to this difference we have included total of €500,000 reservation for the years 6-10 in the calculation on top of the business plan provided.

Environmental:

We have received EDD report by Ambiente dated 05/10/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The comparables below are net rents unless stated otherwise. The comparable evidence is limited.

Surface sq m An nual Rent City lfa €/sqm/year Date Remarks Tampere 5,000 85 Q1 2017 Better location, better property quality Tampere 1,300 119 Q1 2017 Better location, new property Kouvola 800 58 Q2 2017 Similar location, similar property quality Tampere 750 96 Q2 2016 Similar location, better property quality Kangasala 2,100 77 Q2 2016 Similar location, similar property quality Tampere 3,000 90 Q4 2015 Similar location, similar property quality Kokkola 1,800 67 Q1 2015 Comparable location, slightly lower property quality

The comparable lease transaction evidence suggests that the net rents for larger retail warehouse units in secondary locations vary mainly between €66 to €90 while the smaller units can achieve slightly higher rents.

The vacancy rate in Kotka retail premises has been relatively stable during the last years but slightly higher than average in mid-sized cities in Finland. On the market there are currently only few vacant retail units of around 200 to 1,000 sq m in Jumalniemi area and recently Tokmanni settled in to the area. However, the new shopping centre scheme in the gate of Jumalniemi area increase pressure on older properties. However, the situation in Jumalniemi is considered fairly stable and there is constant choice over vacant units maintaining situation tenant favourable.

Project Meg February 2019

Based on the evidence, we adopted the following gross market rent: 108 €/sqm/year for retail premises and 72 €/sqm/year for other type of premises.

Investment Comparables:

The most comparable transactions to the subject property would be the three last ones. The second comparable has similar standard of premises but weaker macro location. On the other hand, the special buyer reflected pricing. The fourth comparable represents higher standard of premises and better macro location. The lease maturities is both cases were estimated to be short and thus comparable to the subject property. The first comparable is located in smaller city/weaker macro location which shows in pricing.

Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €1.93/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 9.00% and cap rate of 9.00% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. We have included total of €500,000 on top of the business plan for years 6-10 due to the fact that TDD provided includes higher cost for façade and roof repairs. Total sum of capex budgeted for 10 years, including the €500,000 on top of the business plan, is €651,077.

• Marketability Small asset in a well-known but simultaneously worn-out space demanding retail area in Kotka. The building is fairly old as it was mainly finished in 1982 and requires some refurbishments. Investment demand is estimated to originate merely from private investors due to small investment size and secondary asset status which together drive pricing relatively opportunistic. Even with longer lease agreements we estimate that the marketability would improve only slightly.

Suitability for Loan Security

As at the valuation date, the property is fully let to two tenants with a WALT of 2.7 years. From a banking perspective, the risk lies in the tenants' ability to satisfy the rent during the remainder of the lease and avoid non-payment.

Project Meg February 2019

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Jumalniementie 6

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 8.90 366,084 366,084 369,745 377,140 384,683 392,376 400,224 408,228 416,393 424,721 433,215 441,879 Over (+) / sub (-) rents - +105,500 +105,500 +105,346 +76,650 ------POTENTIAL RENTAL INCOME 11.47 471,584 471,584 475,091 453,790 384,683 392,376 400,224 408,228 416,393 424,721 433,215 441,879 Idle time, months - - - - (92,254) (98,242) ------Reduction from market rents ------(44,188) Rent-free periods - - (233,833) ------Vacancy reductions, total - - (233,833) - (92,254) (98,242) ------(44,188) Vacancy rate (%) - 0.0 % 49.6 % 0.0 % 20.3 % 25.5 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 10.0 % EFFECTIVE RENTAL INCOME 11.47 471,584 237,751 475,091 361,536 286,441 392,376 400,224 408,228 416,393 424,721 433,215 397,691 Operating expenses (1.69) (69,784) (69,784) (70,482) (71,891) (73,329) (74,796) (76,292) (77,818) (79,374) (80,961) (82,581) (84,232) Repairs (0.24) (9,980) (9,980) (10,080) (10,281) (10,487) (10,697) (10,911) (11,129) (11,351) (11,579) (11,810) (12,046) Tenant improvements (0.19) - - - (18,492) (68,223) ------Other costs ------NET OPERATING INCOME 9.53 391,820 157,987 394,530 260,871 134,401 306,884 313,021 319,282 325,667 332,181 338,824 301,413 Capex investments - - (21,193) (21,193) (20,335) (23,952) (17,000) (109,200) (109,338) (109,479) (109,621) (109,765) - NET CASH FLOW 9.53 391,820 136,794 373,336 240,536 110,449 289,884 203,821 209,943 216,189 222,560 229,059 301,413 Present value of Net Cash Flow - 129,797 318,933 185,003 76,482 180,726 114,405 106,096 98,362 91,168 84,478

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 301,413 Initial yield (NOI I) 401,800 15.45% Yield 9.00% Cap rate 9.00% Initial yield (NOI II) 391,820 15.07% Discount rate 11.07% Capitalized Terminal Value, year 11 3,349,032 Potential yield (NOI I) 391,820 15.07% Cap rate for Terminal Value 9.00% Present value of Terminal Value 1,171,959 Potential yield (NOI I) - with market rents 286,320 11.01% Vacancy rate for Terminal Value 10.0 % 1. year forecasted yield (NOI II) 157,987 6.08% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 1,385,449 (54 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 1,171,959 (46 %) Average economical vacancy rate 9.5 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 2,557,408 (100 %)

Rounding (+/-) 42,592 *Average during 10 years MARKET VALUE (EUR) 2,600,000 Market value EUR/sqm 759 Accuracy +/- 10 % Value range (EUR) 2 340 000 - 2 860 000 RENT ROLL Jumalniementie 6

Lease Agreement Information Market Information 3,427.0 m2 2 Tenants 39,298.65 30,507.00 +8,791.65

Espoo, Kartanonherrantie 7

Key Property Overview Property Type: Retail/warehouse Year Built/Refurbished: 20072

Total Lettable Area: 2,103 sqm Vacant area: 386 sqm Vacancy: 21.0 % Land Plot Size: 4,405 sqm Tenure: Freehold Photo Number of Tenants: 2 Gross Rent: € 262,020 Net Rent: € 185,836 Total ERV (gross): € 324,371 ERV of Occupied Areas: € 254,891 Over/Under rented: 2.2 % WAULT to Break: 0.9 years WAULT to Expiry: 0.9 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 39,789 Location Plan Market Value (net) € 2,600,000 Initial Yield 7.15% Reversionary Yield 9.55% Capital Value / sq m € 1,236 Vacant Possession Value € 2,000,000 Estimated Reinstatement € 2,300,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Storage 1 24.3 € 3,451 € 142 € 3,353 € 138

Retail 2 2,079 € 258,569 € 153 € 321,018 € 154

Total 2 2,103.3 € 262,020 € 153 € 324,371 € 148 € 2,600,000 €1,236 7.15%

Project Meg February 2019

Description

The subject building is split over two storeys as the building has been constructed into a slope. One of the lettable units is located on the ground floor on southern side of the building, while the rest of the units are located on the upper floor on north side. All units have their own entrances with loading doors.

The estimated remaining useful economic life of the building is approx. 30-40 years.

Location

Macro: The property is located in northern Espoo in Juvanmalmi district, approx. 25km northwest from Helsinki city centre and 16km west from Helsinki-Vantaa international airport. It is located within greater Helsinki region and close to main route Ring III. Juvanmalmi is known as a concentration of light industrial and warehouse properties.

The macro location is assessed as good.

Micro: The micro location of the property is among the best in Juvanmalmi district as the intersection of Ring Road III is located in immediate vicinity of the property. The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located immediately beside Ring Road III, which is one of the key roads in the whole Helsinki region. Accessibility by car is good. The subject property reachable by public transport, but connections are not good.

Tenancies

The property is 79 % leased to two tenants, generating a total rental income of € 262,020/year. The rental income is 2.2% above market rent and the WALT is around 0.9 years until first break.

The main tenant is Rami’s coffee Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 49-81-106-2 Site area: 4,405 sqm Owner of the plot: M7 EREIP IV Camelot Propco 1 Oy Leasehold details if applicable: -

• The surrounding area of the property has been classified as a cultural-historically valuable area. This might affect the renovation of the building. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Zoning plan: Detailed plan Zoning: KTY-1 Permitted uses: The detailed plan allows office, industrial and warehouse buildings that do not cause any harm to the environment. Space- demanding retail of special goods is allowed.

Project Meg February 2019

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 23/11/2018), the building is in good condition. The estimated remaining useful economic life of the building is approx. 30-40 years.

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 22/07/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

We emphasize that we have not carried out a technical or environmental assessment of the property and are not qualified to do so. We can not accept any liability for the information contained in this paragraph.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The comparables presented below are net rents unless otherwise stated. The comparable evidence is limited.

Surface sq An nual Rent City m lfa €/sq m/year Date Remarks Vantaa (Pakkala) 1,000 85 Q2 2017 Better location in a retail cluster, better property quality Vantaa (Hakkila) 1,200 89 Q1 2017 Similar location Espoo (Muurala) 600 91 Q3 2016 Slightly better location in retail cluster, weaker property quality Vantaa (Koivuhaka) 6,000 154 Q2 2016 Slightly better location, similar property quality

As comparable evidence suggests, there is a large variation in rent levels for special retail use. Generally, the rents are slightly higher than normal warehouse and rather closer to retail warehouse rents, considering quite small unit sizes.

The property is visible from Ring Road III and offers premises of modern standard. We estimate good occupier demand for the premises given relatively low level of vacancy in neighbouring areas in modern properties. Yet, there is still some room for new developments in Espoo near Ring Road III. With reasonable rent level the competition position against new developments can be maintained.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rent: 138 - 180 €/sqm/year depending on the specific space in question

Project Meg February 2019

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited.

sq m Price GIY City lfa Date Price € € / sqm % Remarks Vantaa (Petikko) 6,300 Q4 2018 10,700,000 1,700 Mixed use property. Fully let and refurbished Vantaa (Piispankylä) 8,900 Q4 2017 4,900,000 550 Production and warehouse property Vantaa (Vantaankoski) 3,000 Q3 2016 2,100,000 850 Industrial property Espoo (Koskelo) 2,100 Q2 2016 2,400,000 1,150 Vacant old warehouse sold to owner occupier Vantaa (Koivuhaka) 2,800 Q4 2015 5,600,000 2,000 8.25 Modern multitenant retail warehouse property Vantaa (Tuupakka) 2,700 Q2 2016 3,200,000 1,200 8.75 Fully let 15-year old light industrial/office property with decent maturity

Based on our understanding, the most comparable transactions are the two last ones showing that modern multilet retail/warehouse/industrial properties transact at above 8% yields with decent maturity. The first and newest comparable transaction gives evidence of more current deals. The shorter maturity in the subject property as well as slightly challenging driving route despite good visibility to main road decrease price per sqm compared to highest rates.

Valuation Assumptions

• Void periods and leasing assumptions We estimate the average void period at 6 months for currently rented spaces and 9 months for currently vacant spaces. Overall, we believe the property has good lettability.

• Operating costs Based on the information received we have applied a total of €3.01/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs .

Yields Yields are derived from market evidence.

We have applied yield of 8.00% and cap rate of 8.00% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €39,789.

• Marketability Comparable sales evidence related to the subject property is limited in the current market situation. The retail warehouse transaction activity has enhanced as far as it comes to modern product with long around 10-year lease maturities from reliable covenants. This category often includes groceries. Instead, with short maturity the demand is more restricted and buyer candidates can be found more from value-add and opportunistic side which is reflected in the pricing. However, some interest may originate from owner-occupiers as well. The estimated marketing time would be around 9 to 18 months. Market value is based on assumed exposure time of 12 months.

Suitability for Loan Security

As at the valuation date, the property is let to two tenants with current vacancy of 21 % and WALT of only 0.9 years. The current rental level is slightly above the market rents. From a banking perspective, the risk lies in occupancy situation. Visible location in Espoo and good standard of premises facilitate reletting in case one of tenants would default or vacate.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to form suitable security for a mortgage advance, subject to a suitable loan to value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

Project Meg February 2019

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Kartanonherrantie 7

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 12.85 324,371 324,371 327,615 334,167 340,851 347,668 354,621 361,714 368,948 376,327 383,853 391,530 Over (+) / sub (-) rents - +7,129 +3,977 +695 ------POTENTIAL RENTAL INCOME 13.13 331,500 328,349 328,310 334,167 340,851 347,668 354,621 361,714 368,948 376,327 383,853 391,530 Idle time, months - - (142,476) (12,484) (25,467) ------Reduction from market rents - (69,480) (1,390) (20,217) (24,696) (27,268) (27,813) (28,370) (28,937) (29,516) (30,106) (30,708) (31,322) Rent-free periods ------Vacancy reductions, total - (69,480) (143,865) (32,701) (50,163) (27,268) (27,813) (28,370) (28,937) (29,516) (30,106) (30,708) (31,322) Vacancy rate (%) - 21.0 % 43.8 % 10.0 % 15.0 % 8.0 % 8.0 % 8.0 % 8.0 % 8.0 % 8.0 % 8.0 % 8.0 % EFFECTIVE RENTAL INCOME 10.38 262,020 184,484 295,610 284,005 313,583 319,854 326,251 332,776 339,432 346,221 353,145 360,208 Operating expenses (2.75) (69,538) (69,538) (70,234) (71,638) (73,071) (74,533) (76,023) (77,544) (79,095) (80,676) (82,290) (83,936) Repairs (0.26) (6,646) (6,646) (6,713) (6,847) (6,984) (7,124) (7,266) (7,411) (7,560) (7,711) (7,865) (8,022) Tenant improvements (0.20) - (45,433) - (10,611) ------Other costs ------NET OPERATING INCOME 7.36 185,836 62,866 218,663 194,908 233,528 238,198 242,962 247,821 252,778 257,833 262,990 268,250 Capex investments - - (3,584) (3,584) - - - (6,331) (6,426) (6,523) (6,621) (6,720) - NET CASH FLOW 7.36 185,836 59,283 215,079 194,908 233,528 238,198 236,631 241,395 246,255 251,213 256,270 268,250 Present value of Net Cash Flow - 56,510 186,295 153,404 167,011 154,792 139,728 129,521 120,061 111,291 103,161

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 268,250 Initial yield (NOI I) 192,482 7.40% Yield 8.00% Cap rate 8.00% Initial yield (NOI II) 185,836 7.15% Discount rate 10.05% Capitalized Terminal Value, year 11 3,353,123 Potential yield (NOI I) 255,316 9.82% Cap rate for Terminal Value 8.00% Present value of Terminal Value 1,286,679 Potential yield (NOI I) - with market rents 248,187 9.55% Vacancy rate for Terminal Value 8.0 % 1. year forecasted yield (NOI II) 62,866 2.42% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 1,321,774 (51 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 1,286,679 (49 %) Average economical vacancy rate 12.5 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 2,608,453 (100 %)

Rounding (+/-) (8,453) *Average during 10 years MARKET VALUE (EUR) 2,600,000 Market value EUR/sqm 1,236 Accuracy +/- 10 % Value range (EUR) 2 340 000 - 2 860 000 RENT ROLL Kartanonherrantie 7

Lease Agreement Information Market Information 2,103.3 m2 2 Tenants 21,835.02 27,030.95 +594.07

Space 1st possible Notice period Contract rent Over (+) / under (-) General market vacancy number Space type GLA Tenant Lease type Start date End date termination date (months) Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction Retail 412.0 m2 Rami's Coffee Oy until further notice 01/04/2012 6 4,875.96 11.83 leased 11.50 4,738.00 +137.96 25 EUR/m2 6 8.0 % Retail 769.0 m2 Rami's Coffee Oy until further notice 01/04/2012 6 9,100.99 11.83 leased 11.50 8,843.50 +257.49 25 EUR/m2 6 8.0 % Storage 24.3 m2 Rami's Coffee Oy until further notice 01/04/2012 6 287.59 11.83 leased 11.50 279.45 +8.14 25 EUR/m2 6 8.0 % Retail 100.0 m2 Rami's Coffee Oy until further notice 02/12/2014 6 1,321.65 13.22 leased 12.00 1,200.00 +121.65 25 EUR/m2 6 8.0 % Retail 412.0 m2 Grolls Oy fixed 01/01/2018 31/12/2020 6,248.83 15.17 leased 15.00 6,180.00 +68.83 25 EUR/m2 6 8.0 % Retail 260.0 m2 vacant 15.00 3,900.00 25 EUR/m2 9 8.0 % Retail 126.0 m2 vacant 15.00 1,890.00 50 EUR/m2 9 8.0 % Project Meg February 2019

Helsinki, Laippatie 1

Key Property Overview Property Type: Office/light industrial Year Built/Refurbished: 19862

Total Lettable Area: 6,975 sqm Vacant area: 386 sqm Vacancy: 2.2 % Land Plot Size: 7,648 sqm Tenure: Leasehold, until 31.12.2043 Photo Number of Tenants: 8 Gross Rent: € 873,276 Net Rent: € 617,527 Total ERV (gross): € 868,722 ERV of Occupied Areas: € 849,322 Over/Under rented: 2.8 % WAULT to Break: 2.7 years WAULT to Expiry: 2.7 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 893,499 Location Plan Market Value (net) € 6,200,000 Initial Yield 9.96% Reversionary Yield 9.89% Capital Value / sq m € 889 Vacant Possession Value € 4,600,000 Estimated Reinstatement € 9,200,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Storage 1 3,292 € 378,776 € 115 € 375,277 € 114

Retail 3 1,942 € 289,010 € 149 € 273,147 € 141

Office 2 1,723 € 200,342 € 116 € 196,456 € 114

Other 3 18 € 5,147 € 286 € 4,452 € 247

Total 8 6,975 € 873,276 € 125 € 868,722 € 125 € 6,200,000 € 889 9.96%

Project Meg February 2019

Description

The subject property is a mixed property consisting of retail/warehouse, office and light industrial premises. Retail/warehouse premises are located on the ground floor, while the upper floors consist of cellular and open office and light industrial premises. The yard area, on the northern and eastern sides of the building, is mainly used for car parking but also acts as Ahlsell's storage.

The estimated remaining useful economic life of the building is approx. 30 years.

Location

Macro: The property is located in Roihupelto light industrial district, approx. 10km east of Helsinki city centre.

The macro location is assessed as good/moderate.

Micro: Micro location of the property is in immidiate proximity of Itäväylä main road, connecting the city centre to the eastern parts of Helsinki, making the location of the property logistically suitable. Additionally, Ring Road I is close by. The neighbouring properties are mainly in office and light industrial use, in addition to which also shopping centre Lanterna, focusing especially on home interior and furniture, is located nearby.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located immediately beside Itäväylä giving the subject property good accessibility by car. The subject property well reachable by public transport with nearest metro station Siilitie located some 700 meters away and trunk bus line 550 stop 400 meters away.

Tenancies

The property is 98 % leased to 8 tenants, generating a total rental income of €873,276/year. The rental income is 2.8% above market rent and the WALT is around 2.7 years until first break.

The main tenant is Sartorius Biohit Liquid Handling Oy.

Legal

Title and Tenure:

Tenure: Leasehold Register number: 91-45-199-1 Site area: 7,648 sqm Owner of the plot: City of Helsinki Leasehold details if applicable: Leasehold valid until 31.12.2043. Leaseholder responsible for potential site contamination. All buildings constructions, equipment and installations must be removed from the plot when the lease expires. We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD: • There are water damages in the property that should be coverable by insurance according to M7 Real Estate Finland Oy. The amount of damages is stated to be €40,000. This is not included in the business plans capex budget.

• Maintenance rent does not cover all maintenance costs. • Total value of planned renovation works during 2017-2022 is €363,814 according to PropCo’s budget. • There are responsibilities of the plot directed to the leaseholder, e.g. potential site contamination and that all buildings constructions, equipment and installations must be removed from the properties at the end of the lease period. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Project Meg February 2019

Planning:

Zoning plan: Detailed plan Zoning: T Permitted uses: Industrial and warehouse. Max. 25% of the built floor area can be used for office and similar purposes, while 10% of the building right can be used for retail and local services.

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

Environmental:

We have received EDD report by Ambiente dated 22/07/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

We emphasize that we have not carried out a technical or environmental assessment of the property and are not qualified to do so. We can not accept any liability for the information contained in this paragraph.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. Comparables below are gross rents unless otherwise stated. The comparable evidence is limited.

Surface An nual Rent City sq m lfa €/sqm/year Date Remarks Helsinki (Metsälä) 1,100 98 Q1 2017 Office/production/storage space Helsinki (Roihupelto) 50 100 Q2 2017 Production space, very similar location Helsinki (Pitäjänmäki) 250 121 Q4 2017 Office space Helsinki (Pitäjänmäki) 2,000 115 Q4 2017 Office/warehouse/production Helsinki (Metsälä) 200 96 Q1 2018 Office space in mixed industrial/office

Based on the evidence the gross rents in light industrial and office premises range between €96 to €121/sqm/year. We estimate that the subject property is well comparable to the evidence and have assumed market rent to be in the upper end of the range based on good micro location and above average standard of premises.

Project Meg February 2019

However, the tenants are used to current rent levels and it is assumed that businesses in some cases do not allow higher rent levels. Thus, the upside potential is also limited considering remarkable vacancy in office spaces in neighbouring area.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rent: 114 €/sqm/year for storage and office and 144€/sqm/year for retail.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks 8.5 - Vantaa (Porttipuisto) 5,200 Q1 2015 Old single-let light industrial property 8.75 Vantaa (Tuupakka) 12,000 Q3 2015 9,800,000 820 10 Old industrial/office property, short maturity Vantaa (Koivuhaka) 3,700 Q2 2016 4,000,000 1,100 Old single-let light industrial property Espoo (Mankkaa) 6,000 Q3 2016 3,300,000 550 Old, vacant office property Espoo (Nihtisilta) Q4 2017 750 Old, single-let office property Helsinki (Herttoniemi) 11,000 Q2 2018 10,500,000 950 Office and production property, sold as sale-and-leaseback Office and laboratory property built in 1990s, notable vacancy and Helsinki Roihupelto >20,000 Q2 2018 330 tenant will vacate during 2020. Plans of changing type of use

The comparable transactions present either vacant or single-let properties with the multilet property being the least comparable. The short lease maturity typically brings yield requirement to above 10% figures in similar properties. Price per sqm in subject property stays lower than in most of the comparables due to location on leasehold plot.

Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €2.83/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs .

Yields Yields are derived from market evidence.

We have applied yield of 8.00% and cap rate of 8.50% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €959,034.

• Marketability We assume relatively good investment demand for the property considering the scarcity of similar properties available. Typically, this kind of properties don't have long maturities and leasehold plot weakens the saleability. We estimate the most potential buyer would be property company, fund or private investor. Even larger owner-occupiers could be interested. Marketing time is estimated to be around 9 to 18 months. Market value is based on assumed 12 months exposure time.

Suitability for Loan Security

As at the valuation date, the property is fully let to eight tenants with current WALT of 2.7 years. The current rental level is above the market rents. From a banking perspective, the risk lies in keeping the occupancy rate on high level and in the long-term location on leasehold plot.

Project Meg February 2019

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Laippatie 1

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 10.38 868,772 868,772 877,460 895,009 912,909 931,167 949,790 968,786 988,162 1,007,925 1,028,084 1,048,645 Over (+) / sub (-) rents - +23,944 +24,130 +20,155 +16,709 +17,044 +17,384 +10,344 - - - - - POTENTIAL RENTAL INCOME 10.67 892,716 892,902 897,614 911,718 929,952 948,552 960,134 968,786 988,162 1,007,925 1,028,084 1,048,645 Idle time, months -- (43,130) (103,183) (191,466) - - (98,485) (20,091) - - - - Reduction from market rents - (19,440) (346) (6,011) (24,041) (34,286) (34,972) (35,671) (47,435) (49,408) (50,396) (51,404) (52,432) Rent-free periods ------Vacancy reductions, total - (19,440) (43,476) (109,194) (215,507) (34,286) (34,972) (134,156) (67,526) (49,408) (50,396) (51,404) (52,432) Vacancy rate (%) - 2.2 % 4.9 % 12.2 % 23.6 % 3.7 % 3.7 % 14.0 % 7.0 % 5.0 % 5.0 % 5.0 % 5.0 % EFFECTIVE RENTAL INCOME 10.43 873,276 849,426 788,420 696,211 895,666 913,580 825,978 901,261 938,754 957,529 976,679 996,213 Operating expenses (2.26) (189,749) (189,749) (191,647) (195,480) (199,389) (203,377) (207,444) (211,593) (215,825) (220,142) (224,545) (229,035) Repairs (0.79) (66,000) (66,000) (66,660) (67,993) (69,353) (70,740) (72,155) (73,598) (75,070) (76,571) (78,103) (79,665) Tenant improvements (0.20) - (11,015) (43,968) (84,783) - - - (41,856) - - - - Other costs ------NET OPERATING INCOME 7.38 617,527 582,662 486,146 347,956 626,924 639,463 546,379 574,213 647,859 660,816 674,032 687,513 Capex investments -- (68,322) (68,322) (28,421) - (415,000) (60,834) (61,747) (62,673) (63,613) (64,567) - NET CASH FLOW 7.38 617,527 514,340 417,824 319,534 626,924 224,463 485,544 512,466 585,186 597,203 609,465 687,513 Present value of Net Cash Flow - 490,289 361,907 251,491 448,355 145,866 286,708 274,966 285,305 264,569 245,340

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 687,513 Initial yield (NOI I) 683,527 11.02 % Yield 8.00 % Cap rate 8.50 % Initial yield (NOI II) 617,527 9.96 % Discount rate 10.05 % Capitalized Terminal Value, year 11 8,088,386 Potential yield (NOI I) 636,967 10.27 % Cap rate for Terminal Value 8.50 % Present value of Terminal Value 3,103,720 Potential yield (NOI I) - with market rents 613,023 9.89 % Vacancy rate for Terminal Value 5.0 % 1. year forecasted yield (NOI II) 582,662 9.40 % DIVISION OF VALUE 10 y average Present value of 10 year cash flows 3,054,796 (50 %) KEY FIGURES* Inflation 1.90 % Present value of Terminal Value 3,103,720 (50 %) Average economical vacancy rate 8.4 % Market rent change 1.90 % Other value (unused building rights etc.) - (0 %) Cost change 1.90 % TOTAL 6,158,515 (100 %)

Rounding (+/-) 41,485 *Average during 10 years MARKET VALUE (EUR) 6,200,000 Market value EUR/sqm 889 Accuracy +/- 10 % Value range (EUR) 5 580 000 - 6 820 000 RENT ROLL Laippatie 1

Lease Agreement Information Market Information 6,975.2 m2 8 Tenants 72,772.99 72,397.65 +1,995.34

Space 1st possible Notice period Contract rent Over (+) / under (-) General market vacancy number Space type GLA Tenant Lease type Indexation Start date End date termination date (months) Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction Office 1,489.7 m2 Biohit Oyj until further notice Indexation 01/07/2014 30/06/2019 12 14,212.37 9.54 leased 9.50 14,152.15 +60.22 25 EUR/m2 6 5.0 % Other 9.0 m2 Biohit Oyj until further notice Indexation 01/07/2014 30/06/2019 12 85.86 9.54 leased 9.50 85.50 +0.36 25 EUR/m2 6 5.0 % Other 9.0 m2 Biohit Oyj until further notice Indexation 01/07/2014 30/06/2019 12 85.86 9.54 leased 9.50 85.50 +0.36 25 EUR/m2 6 5.0 % Parking 16 pcs vacant 30.00 480.00 - 9 5.0 % Retail 1,501.4 m2 Ahlsell Oy until further notice Indexation 01/10/2017 30/09/2023 12 19,368.43 12.90 leased 12.00 18,016.80 +1,351.63 25 EUR/m2 6 5.0 % Storage 2,399.8 m2 Sartorius Biohit Liquid Handling Oy until further notice Indexation 01/01/2012 24 23,010.70 9.59 leased 9.50 22,798.10 +212.60 25 EUR/m2 6 5.0 % Storage 892.1 m2 Sartorius Biohit Liquid Handling Oy until further notice Indexation 01/01/2012 24 8,553.98 9.59 leased 9.50 8,474.95 +79.03 25 EUR/m2 6 5.0 % Parking 34 pcs vacant 30.00 1,020.00 - 9 5.0 % Retail 216.7 m2 Smart Golf Oy until further notice Indexation 01/05/2016 30/04/2019 3 2,039.87 9.41 leased 9.50 2,058.65 (18.78) 25 EUR/m2 6 5.0 % Office 233.6 m2 Weldtec Oy until further notice Indexation 01/01/2006 12 2,482.87 10.63 leased 9.50 2,219.20 +263.67 25 EUR/m2 6 5.0 % Parking 4 pcs vacant 30.00 120.00 - 9 5.0 % Retail 223.9 m2 Kulta Feeniks ravintola until further notice Indexation 01/04/2011 6 2,675.88 11.95 leased 12.00 2,686.80 (10.92) 25 EUR/m2 6 5.0 % Other (no GLA) 0.0 m2 DNA Oy until further notice Indexation 01/12/2014 30/11/2019 12 101.31 leased 100.00 100.00 +1.31 25 EUR/m2 6 5.0 % Other (no GLA) 0.0 m2 Elisa Oyj until further notice No indexation 01/08/2002 12 155.85 leased 100.00 100.00 +55.85 25 EUR/m2 6 5.0 % Project Meg February 2019

Helsinki, Lirokuja 4

Key Property Overview Property Type: Warehouse/office Year Built/Refurbished: 19892

Total Lettable Area: 2,593 sqm Vacant area: 386 sqm Vacancy: 43.8 % Land Plot Size: 2,756 sqm Tenure: Leasehold, until 31.12.2043 Photo Number of Tenants: 6 Gross Rent: € 153,358 Net Rent: € 25,664 Total ERV (gross): € 282,550 ERV of Occupied Areas: € 163,210 Over/Under rented: -3.5 % WAULT to Break: 0.9 years WAULT to Expiry: 0.9 years

Valuation as at: 22 February 2019 Gross Value: N/A Location Plan Purchasers Costs: N/A Capex: € 398,142 Market Value (net) € 1,100,000 Initial Yield 2.33% Reversionary Yield 14.08% Capital Value / sq m € 424 Vacant Possession Value € 700,000 Estimated Reinstatement € 4,400,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Office 0 444 € 0 € 0 € 47,952 € 108

Storage 4 2,113 € 146,302 € 101 € 228,150 € 108

Other 2 36 € 6,448 € 179 € 6,448 € 179

Parking 4 0 € 608 € 0

Total 6 2,593 € 153,358 € 110 € 282,550 € 109 € 1,100,000 € 463 2.14%

Project Meg February 2019

Description

The property comprises 2,659 sq m of warehouse and office premises. The building is mainly two-storey and partly single-storey with a completely dug open basement. The basement is partly missing concrete flooring due to fully used building right. There are two connected garages together providing around 30 places, technical and social premises on the basement. The two main floors consist open office/light industrial space.

The estimated remaining useful economic life of the building is approx. 30 years.

Location

Macro: The property is located in Kontula, a district with ca. 13,700 residents in Eastern Helsinki. Distance to Helsinki city centre is roughly 8 km.

The macro location is assessed as good.

Micro: The property is located along Kontulantie, some 700 m from the nearest connection to the Ring Road I. The property is also located ca. 300 m from the district's central retail and service location and the nearest metro station, making the location of the property very accessible. Helsinki- Vantaa airport is a 20 min car ride away. Along the Kontulantie street, there are business premises with mainly light industrial occupiers. Other than that the surroundings of the property is mainly residential area.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located immediately beside Ring Road I giving the subject property good accessibility by car. The subject property well reachable by public transport with nearest metro station Kontula located some 300 meters away.

Tenancies

The property is 56 % leased to 6 tenants, generating a total rental income of € 153,358/year. The rental income is 3.5% below market rent and the WALT is around 0.9 years until first break.

The main tenant is Lattiakolmio Oy.

Legal

Title and Tenure:

Tenure: Leasehold Register number: 91-47-165-6 Site area: 2,756 sqm Owner of the plot: City of Helsinki Leasehold details if applicable: Leasehold valid until 31.12.2043. Leaseholder responsible for potential site contamination. All buildings constructions, equipment and installations must be removed from the plot when the lease expires. We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD:

• There are responsibilities of the plot directed to the leaseholder, e.g. potential site contamination and that all buildings constructions, equipment and installations must be removed from the properties at the end of the lease period

• There is planned Capex of €217,000 during 2017-2021. We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Project Meg February 2019

Zoning plan: Detailed plan Zoning: TT Permitted uses: Industrial use. Max. 40% of the built floor area can be used for office and similar purposes including factory outlet use.

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 22/11/2018), the building is in satisfactory condition. The building has not experienced significant renovations and requires notable repairs to maintain the building in current use. The estimated remaining useful economic life of the building is approx. 30 years. We have received a business plan including capex budget and have adopted these as is in the calculation. There is difference between the business plan and the TDD received concerning the costs for the 10-year period. TDD states the cost to be €523,000 and the business plan respectively €198,142. There is a difference e.g. in electrical systems renovation costs. Although it must be stated that we have received break down to capex items for the business plan only for the first five years thus we do not have information what the last five years are assumed to include. Due to this difference we have included total of €200,000 reservation for the years 6-10 in the calculation on top of the business plan provided.

Environmental:

We have received EDD report by Ambiente dated 03/08/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. Comparables below are gross rents unless otherwise stated. The comparable evidence is limited.

The gross rents in light industrial and office premises range between €96 to €120/sqm/year. We estimate that the subject property is well comparable to the evidence and have assumed market rent to be in the middle of the range.

Old light industrial areas in Helsinki have been in constant pressure during the last decade as residential developments have took their space. Due to this development affordable light industrial premises are rare in the market keeping occupancy rates in most popular areas high. However, the tenants are used to current rent levels and it is assumed that businesses in some cases do not allow higher rent levels. Thus, the

Project Meg February 2019

upside potential is also limited. Moreover, Kontula is not the most sought-after location although the public traffic connections are good allowing for example educational use.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rent: 108 €/sqm/year.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks 8.5 - Vantaa (Porttipuisto) 5,200 Q1 2015 Old single-let light industrial property 8.75 Helsinki (Pitäjänmäki) 6,000 Q1 2015 6,900,000 1,150 Price reflecting 20% vacancy rate Vantaa (Koivuhaka) 3,700 Q2 2016 4,000,000 1,100 Old single-let light industrial property Espoo (Koskelo) 2,100 Q2 2016 2,400,000 1,150 Old vacant warehouse property Espoo (Mankkaa) 6,000 Q3 2016 3,300,000 550 Old, vacant office property Espoo (Nihtisilta) Q4 2017 750 Old, single-let office property Helsinki (Herttoniemi) 11,000 Q2 2018 10,500,000 950 Office and production property, sold as sale-and-leaseback Office and laboratory property built in 1990s, notable vacancy and Helsinki (Roihupelto) >20,000 Q2 2018 330 tenant will vacate during 2020. Plans of changing type of use

The most comparable transactions are the newest two due to location, although the size and the fact that both are single let do weaken the comparability. Also the deal in Roihupelto reflects merely the end of life cycle building with rezoning possibility including higher risk and resulting a low price per sq. m. Unlike the subject property, all comparables, except for the one in Herttoniemi, locate on freehold plots. The short lease maturity typically brings yield requirement to above 10% figures in similar properties. Valuation Assumptions

• Void periods and leasing assumptions We estimate the average void period at 3 months for currently rented spaces and 12 months for currently vacant spaces. Overall, we believe the property has moderate lettability.

• Operating costs Based on the information received we have applied a total of €4.09/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs .

Yields Yields are derived from market evidence.

We have applied yield of 9.00% and cap rate of 8.50% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. We have included total of €200,000 on top of the business plan for years 6-10 due to the fact that TDD provided includes relatively higher cost than the business plan for the 10 year period. Total sum of capex budgeted for 10 years, including the €200,000 on top of the business plan, is €398,142.

• Parking

• Marketability We assume relatively good investment demand for the property considering the scarcity of similar properties available. Due to small investment size we estimate the most potential buyer would be private investor or owner-occupier but location in leasehold plot weakens demand as the location is estimated to be redeveloped to residential use in long-term increasing leasehold exit risk. Marketing time is estimated to be around 12 months. Market value is based on assumed 12 months exposure time.

Project Meg February 2019

Suitability for Loan Security

As at the valuation date, the property is let to 6 tenants with 43.8% vacancy rate. From a banking perspective, the risk lies in the tenants' ability to satisfy the rent during the remainder of the lease, keeping the occupancy level in the property high and avoid non-payment and in the long- term, location on leasehold plot.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Lirokuja 4

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 9.08 282,550 282,550 285,376 291,083 296,905 302,843 308,900 315,078 321,379 327,807 334,363 341,050 Over (+) / sub (-) rents - (9,852) (6,265) +802 ------POTENTIAL RENTAL INCOME 8.77 272,698 276,285 286,177 291,083 296,905 302,843 308,900 315,078 321,379 327,807 334,363 341,050 Idle time, months - - (140,800) (19,536) ------Reduction from market rents - (119,340) (1,141) (24,925) (29,108) (29,690) (30,284) (30,890) (31,508) (32,138) (32,781) (33,436) (34,105) Rent-free periods ------Vacancy reductions, total - (119,340) (141,942) (44,461) (29,108) (29,690) (30,284) (30,890) (31,508) (32,138) (32,781) (33,436) (34,105) Vacancy rate (%) - 43.8 % 51.4 % 15.5 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % EFFECTIVE RENTAL INCOME 4.93 153,358 134,343 241,717 261,975 267,214 272,559 278,010 283,570 289,241 295,026 300,927 306,945 Operating expenses (3.79) (118,094) (118,094) (119,275) (121,661) (124,094) (126,576) (129,107) (131,689) (134,323) (137,010) (139,750) (142,545) Repairs (0.31) (9,600) (9,600) (9,696) (9,890) (10,088) (10,289) (10,495) (10,705) (10,919) (11,138) (11,360) (11,588) Tenant improvements (0.19) - (32,863) (31,361) ------Other costs ------NET OPERATING INCOME 0.82 25,664 (26,213) 81,385 130,424 133,033 135,693 138,407 141,175 143,999 146,879 149,816 152,813 Capex investments - - (40,048) (40,048) (1,550) - - (62,610) (62,950) (63,294) (63,643) (63,998) - NET CASH FLOW 0.82 25,664 (66,262) 41,336 128,874 133,033 135,693 75,797 78,226 80,705 83,235 85,818 152,813 Present value of Net Cash Flow - (62,873) 35,313 99,120 92,120 84,597 42,545 39,532 36,719 34,096 31,650

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 152,813 Initial yield (NOI I) 35,264 3.21% Yield 9.00% Cap rate 8.50% Initial yield (NOI II) 25,664 2.33% Discount rate 11.07% Capitalized Terminal Value, year 11 1,797,796 Potential yield (NOI I) 145,004 13.18% Cap rate for Terminal Value 8.50% Present value of Terminal Value 629,120 Potential yield (NOI I) - with market rents 154,856 14.08% Vacancy rate for Terminal Value 10.0 % 1. year forecasted yield (NOI II) (26,213) -2.38% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 432,820 (41 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 629,120 (59 %) Average economical vacancy rate 14.7 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 1,061,940 (100 %)

Rounding (+/-) 38,060 *Average during 10 years MARKET VALUE (EUR) 1,100,000 Market value EUR/sqm 424 Accuracy +/- 10 % Value range (EUR) 990 000 - 1 210 000 RENT ROLL Lirokuja 4

Lease Agreement Information Market Information 2,592.5 m2 6 Tenants 12,779.82 23,545.84 (821.02)

1st possible Notice period Contract rent Over (+) / under (-) General market vacancy Space number Space type GLA Tenant Lease type Start date End date termination date (months) Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction Warehouse 4 Storage 877.0 m2 SidontaPlus Oy until further notice 01/01/2018 30/06/2019 6 7,156.08 8.16 leased 9.00 7,893.00 (736.92) 25 EUR/m2 3 10.0 % Office 1 Office 444.0 m2 vacant 9.00 3,996.00 25 EUR/m2 12 10.0 % Warehouse 2 Storage 365.0 m2 Lattiakolmio Oy until further notice 01/08/2017 30/04/2020 3 3,443.74 9.43 leased 9.00 3,285.00 +158.74 25 EUR/m2 3 10.0 % Loft 1 Storage 285.0 m2 vacant 9.00 2,565.00 25 EUR/m2 12 10.0 % Loft 2 Storage 308.0 m2 vacant 9.00 2,772.00 25 EUR/m2 12 10.0 % Warehouse 3 Storage 204.0 m2 Rikle Oy until further notice 01/08/2017 3 1,557.01 7.63 leased 9.00 1,836.00 (278.99) 25 EUR/m2 3 10.0 %

Ground Fl, U2 Other 36.0 m2 Telia Finland Oyj until further notice 01/01/2017 12 453.74 12.60 leased 12.60 453.74 0.00 - 3 10.0 %

Antenna Other (no GLA) 0.0 m2 Elisa Oyj until further notice 01/07/2017 12 83.59 leased 83.59 83.59 0.00 - 3 10.0 % APH 01-04 Parking 4 pcs Lattiakolmio Oy until further notice 01/08/2017 1 0.00 0.00 leased 0.00 0.00 0.00 - 3 10.0 % APH 10 Parking 1 pcs Mekmanni Oy until further notice 01/03/2018 1 50.65 50.65 leased 0.00 0.00 +50.65 - 3 10.0 % APH 13-14 Parking 2 pcs Rikle Oy until further notice 01/08/2017 1 0.00 0.00 leased 0.00 0.00 0.00 - 3 10.0 % APH 15-17 Parking 3 pcs SidontaPlus Oy until further notice 01/01/2018 1 0.00 0.00 leased 0.00 0.00 0.00 - 3 10.0 % Parking 31 pcs vacant 0.00 0.00 - 12 10.0 %

Ground Fl, S1 A Storage 7.5 m2 vacant 9.00 67.50 25 EUR/m2 12 10.0 % Ground Fl, S1 B Storage 5.5 m2 vacant 9.00 49.50 25 EUR/m2 12 10.0 % Ground Fl, S1 C Storage 5.5 m2 Mekmanni Oy until further notice 1.1.2019 1 35.00 6.36 leased 9.00 49.50 (14.50) 25 EUR/m2 3 10.0 % Ground Fl, S2 Storage 55.0 m2 vacant 9.00 495.00 25 EUR/m2 12 10.0 % Project Meg February 2019

Hyvinkää, Mäkikuumolantie 3

Key Property Overview Property Type: Retail Year Built/Refurbished: 20072

Total Lettable Area: 12,214 sqm Vacant area: 1,996 sqm Vacancy: 17.3 % Land Plot Size: 21,386 sqm Tenure: Freehold Photo Number of Tenants: 8 Gross Rent: € 1,144,242 Net Rent: € 841,893 Total ERV (gross): € 1,320,118 ERV of Occupied Areas: € 1,104,550 Over/Under rented: 3.0 % WAULT to Break: 2.6 years WAULT to Expiry: 2.6 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 198,036 Location Plan Market Value (net) € 11,900,000 Initial Yield 7.07% Reversionary Yield 8.55% Capital Value / sq m € 974 Vacant Possession Value € 7,900,000 Estimated Reinstatement € 12,100,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Retail 7 12,212 € 1,143,143 € 112 € 1,318,918 € 108

Other 1 2 € 1,099 € 550 € 1,200 € 600

Total 8 12,214 € 1,144,242 € 112 € 1,320,118 € 108 € 11,900,000 € 974 7.07%

Project Meg February 2019

Description

The building is a typical modern multi-tenant retail warehouse completed in 2007. The parking places are located directly in front of each unit and loading and service of the units happens from the other side of the building. The unit sizes vary between 640 to 2,900 sq m and they allow flexibility. An extension of 185 sq. m has been built for Motonet, including a cold storage on the ground floor and office space on a balcony.

The estimated remaining useful economic life of the building is approx. 30–40 years.

Location

Macro: The subject property is located in Hyvinkää, around 50 km north from Helsinki. The population of Hyvinkää is around 47,000.

The macro location is assessed as adequate.

Micro: The property is located in Kuumola area next to highway 3 to Helsinki and Tampere. The distance to Hyvinkää centre is around 4 km. The immediate surroundings also include other newish retail warehouse properties and further away there are mainly agricultural land with some residential.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located immediately beside the Helsinki-Tampere motorway, and also the Hyvinkää junction to the motorway, giving the subject property good accessibility by car. The subject property is not well reachable by public transport with nearest stop around 1 kilometre away.

Tenancies

The property is 84.10% leased to 8 tenants, generating a total rental income of € 1,144,242/year. The rental income is 3.0% below market rent and the WALT is around 2.6 years until first break.

The main tenant is Indoor Group Oy operating Asko and Sotka brand stores.

Legal

Title and Tenure:

Tenure: Leasehold Register number: 106-20-1901-14, 106-20-1901-12 (parking) Site area: 21,386 sqm Owner of the plot: M7 EREIP IV Monty Propco 2 Oy Leasehold details if applicable: - We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD:

• There is a gas station in located in the adjacent plot that could be a soil contamination risk. The plot itself has not been recorded in the MATTI soil contamination data base. • There have been water damages in the building that according to the seller has been repaired although no documents on these have not been provided for the LDD. There are no costs concerning this included in the business plan capex budget. • There has been a minor breakage in the pipes in the premises leased by Jysk Oy, which were planned to be repaired during late 2018.

We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Project Meg February 2019

Zoning plan: Detailed plan Zoning: KL-6 Permitted uses: Retail area. Retail plot with maximum 20% for office premises. One grocery store unit below 2,000 sqm possible to locate to plot. The parking plot is jointly owned. According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 22/11/2018), the building is in satisfactory condition. The estimated remaining useful economic life of the building is approx. 30-40 years. We have received a business plan including capex budget and have adopted these as is in the calculation. There have been water damages in the building that according to the seller has been repaired although no documents on these have not been provided for the LDD. There are no costs concerning this included in the business plan capex budget. There has been a minor breakage in the pipes in the premises leased by Jysk Oy, which were planned to be repaired during late 2018. According to the TDD by JLL there is suggested cost concerning the repair and inspection of water pipes total €150,000. There are no costs concerning this included in the business plan capex budget.

Environmental:

We have received EDD report by Ambiente dated 16/09/2016. According to the environmental review provided to us there are no apparent environmental risks. There is a gas station in located in the adjacent plot that could be a soil contamination risk. The plot itself has not been recorded in the MATTI soil contamination data base.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. Comparables below are net rents unless otherwise stated. The comparable evidence is limited.

Surface An nual Rent City sq m lfa €/sqm/year Date Remarks Tampere 5,000 85 Q1 2017 Location and standard of premises similar Tampere 1,300 119 Q1 2017 Better location and property recently refurbished Kouvola 800 58 Q2 2017 Weaker macro location, but similar micro location and standard of premises Järvenpää 3,000 108 Q4 2017 New premises

The rents in retail warehouse concentrations vary depending on the unit size and micro location. The comparables in Tampere region are estimated to have similar location and Kouvola lease is considered the least comparable with inferior macro location though similar standard. Järvenpää lease is located on a brand new property and developing location.

The property is located in visible location next to highway 3. The micro location is however a bit isolated, as majority of other retail warehouse properties are on the opposite side of the highway. The building has been completed in 2007 and is generally in good condition. However, we

Project Meg February 2019

estimate there is limited tenant interest for the premises. The rent level in renewal is hard to forecast but especially in case of furniture retailers, some downwards pressure can be expected.

Based on the evidence, we adopted the following gross market rent: 108 €/sqm/year.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks 8.75 Modern multitenant retail warehouse in established retail area. Nokia 8,200 Q4 2015 Almost fully let 10 -year old multitenant retail warehouse in established retail area. Helsinki Q1 2016 1,900 Short WALT 7.75 Modern multitenant retail warehouse in established retail area. Turku 8,700 Q3 2016 Fully let with long lease maturity. Fully let two building retail warehouse complex fully renovated, Pori 6,400 Q2 2018 8,000,000 1,250 long lease maturity New multitenant retail warehouse property in established retail Jyväskylä 10,000 Q2 2018 18,000,000 1,800 area. Fully let with long lease maturity. Hämeenlinna 2,000 Q2 2018 1,400,000 700 10-year old retail warehouse property. Fully let

The comparable evidence suggests that fully let properties with decent maturity (around 4 to 5 years) trade above 8% yields. With longer WALT the best properties transact below 8%. The subject property is below average compared to listed deals with several furniture sector occupiers and short WALT. Valuation Assumptions

• Void periods and leasing assumptions We estimate the average void period at 3 months for currently rented spaces and 9 months for currently vacant spaces. Overall, we believe the property has moderate lettability.

• Operating costs Based on the information received we have applied a total of €2.06/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 7.50% and cap rate of 7.50% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €198,036.

• Marketability Comparable sales evidence related to the subject property is relatively limited in the current market situation. The retail warehouse transaction activity has enhanced as far as it comes to modern product with long around 10-year lease maturities from reliable covenants. This category often includes groceries. Instead, with short maturity and possibly a pressure on the rent level upon lease renewal, the demand is more restricted and buyer candidates can be found more from value-add and opportunistic side which is reflected in pricing. The estimated marketing time is at least 18 months. Prime retail warehouse properties currently trade at below 7% yields but for older, secondary properties with short lease maturities outside of Helsinki metropolitan area the yield requirements quite often rise to double digit figures. Our market value is based on estimated exposure time of 24 months.

Suitability for Loan Security

Project Meg February 2019

As at the valuation date, the property is let to eight tenants. The leases are either fixed or rolling leases with their first possible termination dates in 2020 or 2021. WALT of the property is 2.6 years, while the technical vacancy rate is 16.3%. The main risks from banking perspective are in the tenants' ability to satisfy the rent during the remainder of the lease and keeping the occupancy high in the property.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to be suitable for loan security, subject to a suitable loan to value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Mäkikuumolantie 3

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 9.01 1,320,118 1,320,118 1,333,319 1,359,985 1,387,185 1,414,929 1,443,227 1,472,092 1,501,533 1,531,564 1,562,195 1,593,439 Over (+) / sub (-) rents - +39,693 +45,409 +50,182 (5,912) (5,260) ------POTENTIAL RENTAL INCOME 9.28 1,359,810 1,365,527 1,383,501 1,354,073 1,381,925 1,414,929 1,443,227 1,472,092 1,501,533 1,531,564 1,562,195 1,593,439 Idle time, months - - (178,959) (22,450) (126,865) (91,196) (28,611) ------Reduction from market rents - (215,568) (5,694) (23,076) (55,451) (79,367) (110,905) (115,458) (117,767) (120,123) (122,525) (124,976) (127,475) Rent-free periods ------Vacancy reductions, total - (215,568) (184,653) (45,525) (182,316) (170,563) (139,517) (115,458) (117,767) (120,123) (122,525) (124,976) (127,475) Vacancy rate (%) - 15.9 % 13.5 % 3.3 % 13.5 % 12.3 % 9.9 % 8.0 % 8.0 % 8.0 % 8.0 % 8.0 % 8.0 % EFFECTIVE RENTAL INCOME 7.81 1,144,242 1,180,874 1,337,975 1,171,757 1,211,362 1,275,412 1,327,769 1,354,324 1,381,411 1,409,039 1,437,220 1,465,964 Operating expenses (1.84) (270,349) (270,349) (273,052) (278,513) (284,084) (289,765) (295,561) (301,472) (307,501) (313,651) (319,924) (326,323) Repairs (0.22) (32,000) (32,000) (32,320) (32,966) (33,626) (34,298) (34,984) (35,684) (36,398) (37,126) (37,868) (38,625) Tenant improvements (0.20) - (65,900) (51) (138,387) (32,496) (79,475) ------Other costs ------NET OPERATING INCOME 5.74 841,893 812,625 1,032,552 721,890 861,156 871,873 997,224 1,017,169 1,037,512 1,058,262 1,079,428 1,101,016 Capex investments - - (13,043) (13,043) (3,000) - - (32,791) (33,283) (33,782) (34,289) (34,803) - NET CASH FLOW 5.74 841,893 799,582 1,019,509 718,890 861,156 871,873 964,433 983,885 1,003,730 1,023,973 1,044,624 1,101,016 Present value of Net Cash Flow - 763,962 889,236 572,408 625,954 578,537 584,208 544,073 506,695 471,885 439,466

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 1,101,016 Initial yield (NOI I) 873,893 7.34% Yield 7.50% Cap rate 7.50% Initial yield (NOI II) 841,893 7.07% Discount rate 9.54% Capitalized Terminal Value, year 11 14,680,214 Potential yield (NOI I) 1,057,461 8.89% Cap rate for Terminal Value 7.50% Present value of Terminal Value 5,900,732 Potential yield (NOI I) - with market rents 1,017,769 8.55% Vacancy rate for Terminal Value 8.0 % 1. year forecasted yield (NOI II) 812,625 6.83% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 5,976,425 (50 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 5,900,732 (50 %) Average economical vacancy rate 9.2 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 11,877,157 (100 %)

Rounding (+/-) 22,843 *Average during 10 years MARKET VALUE (EUR) 11,900,000 Market value EUR/sqm 974 Accuracy +/- 10 % Value range (EUR) 10 710 000 - 13 090 000 RENT ROLL Mäkikuumolantie 3

Lease Agreement Information Market Information 12,214.2 m2 8 Tenants 95,353.52 110,009.80 +3,307.72

Extension Retail 37.0 m2 Jysk Oy / Jysk until further notice Indexation 01/05/2017 30/04/2021 12 396.13 10.71 leased 9.00 333.00 +63.13 25 EUR/m2 3 8.0 % Project Meg February 2019

Tampere, Nuutisarankatu 15

Key Property Overview Property Type: Industrial/warehouse Year Built/Refurbished: 19822

Total Lettable Area: 6,155 sqm Vacant area: 1,996 sqm Vacancy: 34.4 % Land Plot Size: 20,954 sqm Tenure: Freehold Number of Tenants: 10 Gross Rent: € 329,515 Net Rent: € 177,958 Total ERV (gross): € 482,827 Photo ERV of Occupied Areas: € 302,803 Over/Under rented: 5.5 % WAULT to Break: 0.8 years WAULT to Expiry: 0.8 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 912,325 Market Value (net) € 2,100,000 Initial Yield 8.47%

Reversionary Yield 15.77% Location Plan Capital Value / sq m € 341 Vacant Possession Value € 1,800,000 Estimated Reinstatement € 6,900,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Storage 5 3,366 € 85,524 € 68 € 234,720 € 70

Industrial 4 1,704 € 144,734 € 85 € 122,659 € 72

Office 3 1,022 € 96,615 € 122 € 122,640 € 120

Other 1 63 € 2,641 € 68 € 2,808 € 45

Total 10 6,155 € 329,515 € 87 € 482,827 € 78 € 2,100,000 € 357 8.09%

Project Meg February 2019

Description

The subject building consists of two parts: industrial/warehouse premises are located in the larger building part on the western side of the plot, while offices are located in a building part closest to Nuutisarankatu street. The largest industrial/storage units are located on the northern edge and in the middle of the industrial/warehouse building part. Loading doors are located on the western side of the building. The office part of the building has two floors and a basement, while industrial/storage units are located on one floor. The property has yard areas on its two sides: on the eastern side the yard area is used for parking, while the western side of the building is fenced and used together with neighbouring Volvo Truck Center property.

The estimated remaining useful economic life of the building is approx. 20–30 years.

Location

Macro: The subject property is located in Sarankulma industrial area, approximately 7 kilometres southwest from Tampere city centre and a few kilometres west from the intersection of Helsinki-Tampere highway and Tampere Ring Road.

The macro location is assessed as secondary.

Micro: The building stock in the Sarankulma industrial area are mainly from 1980s but there are also occasional 2000s properties. The neighbouring properties are occupied by for example agriculture, machinery and hardware retailer Hankkija and Volvo Truck Center.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located conveniently close to the Tampere Ring Road and Helsinki-Tampere highway, giving the subject property good accessibility by car. The subject property is not well reachable by public transport.

Tenancies

The property is 64.7 % leased to 10 tenants, generating a total rental income of € 329,515/year. The rental income is 5.5% above market rent and the WALT is around 0.8 years until first break.

The main tenant is Automaalaamo P. Oinonen Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 837-302-785-16 Site area: 20,954 sqm Owner of the plot: M7 EREIP IV Camelot Propco 7 Oy Leasehold details if applicable: -

• There are water damages in the property that should be coverable by insurance according to M7 Real Estate Finland Oy. The amount of damages is stated to be €40,000. This is not included in the business plan capex budget provided.

• The plot is listed as potentially contaminated land into MATTI data base.

• There is planned repairs of façade in 2019. Condition of the roof is followed, and some repairs have been made. Client estimated that roof should be renewed during next 5 years.

Project Meg February 2019

We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Zoning plan: Detailed plan Zoning: T-9 Permitted uses: Industrial/warehouse. Max. 10% of the total floor area can be used for retail purposes, more specifically for machinery or iron industry retail. Outdoor storage areas have to be fenced. The number of parking places has to be 1 per 3 employees in warehouse/industrial premises and 1 per each 50 sq. m of office and retail space. The parking plot is jointly owned.

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 22/11/2018), the building is in satisfactory condition. The building is mainly original with no significant renovations been carried out. The estimated remaining useful economic life of the building is approx. 20-30 years.

We have received a business plan including capex budget and have adopted these as is in the calculation. There is difference between the business plan and the TDD received concerning the costs for the 10-year period. TDD states the cost to be €1,358,000 and the business plan respectively €712,325. There is a difference e.g. roof, façade and HVAC renovation costs. Although it must be stated that we have received break down to capex items for the business plan only for the first five years thus we do not have information what the last five years are assumed to include. Due to this difference we have included total of €200,000 reservation for the years 6-10 in the calculation on top of the business plan provided.

According to the legal due diligence by Roschier (dated 14.11.2018) there are water damages in the property that should be coverable by insurance. The amount of damages is stated to be €40,000. This is not included in the capex budget provided and adopted in the calculation.

Environmental:

We have received EDD report by Ambiente dated 22/07/2016. According to the environmental review provided the site has been listed as potentially contaminated land. However, the environmental risk level is assessed to be acceptably low for continued current use. According to the report the potential contamination property should be acceptable security for funding from an environmental standpoint.

We emphasize that we have not carried out a technical or environmental assessment of the property and are not qualified to do so. We can not accept any liability for the information contained in this paragraph.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. Comparables below are gross rents unless otherwise stated. The comparable evidence is limited.

Surface An nual Rent City sq m lfa €/sq m/year Date Remarks Tampere (Tesoma) 150 125 Q4 2015 Light industrial/office in satisfactory condition Tampere 700 132 Q3 2015 Office in satisfactory condition (Sarankulma) Tampere (Nekala) 950 106 Q1 2015 Office in satisfactory condition Tampere 4,200 80 Q2 2015 Warehouse in satisfactory condition (Sarankulma) Tampere (Nekala) 2,600 78 Q1 2015 Light industrial/office in satisfactory condition Tampere 3,000 84 Q1 2015 Light industrial/office in satisfactory condition (Sarankulma)

Project Meg February 2019

The comparables represent similar standard of premises than in the subject property and locate in operators in neighbourhood. The office rents vary at a range of €106 to €132/sqm/year while industrial/warehouse rents are generally between €72 to €84/sqm/year. The warehouse/industrial premises of the subject property are estimated to position in the lower end due to challenging divisibility and loading possibilities.

The subject property is located in growing Tampere region in Sarankulma industrial and commercial area. Sarankulma is among the most significant industrial concentrations in Tampere and gains from its optimal location close the main roads of the city. However, the occupier demand of the property is limited as the property has been constructed in 1982 and it doesn't meet modern standards on its most parts. The weak occupier demand is already reflected by the current vacancy rate and may set pressures on the current rental levels of the property. The lettability of the property is also weakened by the significant amount of office space.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rents: 72 €/sqm/year for industrial, 120 €/sqm/year for office and 36-72 €/sqm/year for storage.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks Oulu 7,000 Q1 2018 3,500,000 500 Industrial property sold to owner-occupier Oulu 22,000 Q1 2018 14,300,000 650 Multitenant light industrial/office property Tampere 10,000 Q4 2017 8,000,000 800 Retail, office and warehouse use Hyvinkää 15,000 Q4 2016 8,200,000 550 Old, fully let industrial property 10 Old industrial property sold to owner -occupier, 80% let with short Joensuu 17,700 Q4 2016 5,000,000 280 lease maturity Pori 6,500 Q4 2016 1,700,000 260 Old vacant warehouse property Vantaa 12,000 Q3 2015 9,800,000 820 10 Old industrial/office property, fully let with short lease maturity Hyvinkää 6,500 Q3 2015 850,000 130 Old vacant industrial property Vantaa 4,900 2015 2,600,000 530 Old warehouse property sold to owner-occupier

The transaction evidence shows that comparable properties with good letting status can transact at around 10% yields and around at €500/sqm range. The last comparable instead presents that should suitable buyer find the mere plot in the right location it can be of high value. Valuation Assumptions

Yields Yields are derived from market evidence.

We have applied yield of 9.50% and cap rate of 9.50% in the calculation

• Capital expenditure

• Marketability Within the past few years, an increase in investment demand outside the prime properties has been evident in Finland, mainly driven by new funds and the return of international investors. The property has a suitable location in Sarankulma industrial and commercial area in growing Tampere. However, the investment demand of the subject property is limited due to its currently high vacancy rate, limited number of potential occupiers, poor condition and the lack of potential future development scenarios for the property. The estimated marketing time

Project Meg February 2019

is at least 12 months and we estimate the most potential buyers to include owner-occupiers and local investors. Market value is based on assumed 18 months exposure time.

Suitability for Loan Security

As at the valuation date, the property is let to 10 tenants with technical vacancy rate of 38.5%. The leases are fixed or valid until further notice with WALT of only 0.8 years. From banking perspective, the main risks considering the property include the future occupier demand on the vacant warehouse units and the tenants' ability to satisfy the rent during the remainder of the lease and avoid non-payment. Also potential land contamination is to be considered.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Nuutisarankatu 15

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 6.54 482,827 482,827 487,655 497,409 507,357 517,504 527,854 538,411 549,179 560,163 571,366 582,793 Over (+) / sub (-) rents - +26,712 +16,162 (1,752) (2,331) ------POTENTIAL RENTAL INCOME 6.90 509,539 498,989 485,904 495,077 507,357 517,504 527,854 538,411 549,179 560,163 571,366 582,793 Idle time, months - - (275,272) (26,494) (20,843) (9,999) ------Reduction from market rents - (180,024) (7,049) (46,886) (52,482) (59,683) (62,100) (63,342) (64,609) (65,902) (67,220) (68,564) (69,935) Rent-free periods ------Vacancy reductions, total - (180,024) (282,321) (73,381) (73,325) (69,682) (62,100) (63,342) (64,609) (65,902) (67,220) (68,564) (69,935) Vacancy rate (%) - 35.3 % 56.6 % 15.1 % 14.8 % 13.7 % 12.0 % 12.0 % 12.0 % 12.0 % 12.0 % 12.0 % 12.0 % EFFECTIVE RENTAL INCOME 4.46 329,515 216,668 412,523 421,752 437,674 455,403 464,511 473,802 483,278 492,943 502,802 512,858 Operating expenses (1.76) (130,557) (130,557) (131,862) (134,500) (137,190) (139,934) (142,732) (145,587) (148,499) (151,469) (154,498) (157,588) Repairs (0.28) (21,000) (21,000) (21,210) (21,634) (22,067) (22,508) (22,958) (23,418) (23,886) (24,364) (24,851) (25,348) Tenant improvements (0.06) - (51,100) ------Other costs ------NET OPERATING INCOME 2.41 177,958 14,011 259,450 265,618 278,418 292,962 298,821 304,797 310,893 317,111 323,453 329,922 Capex investments - - (142,885) (142,885) (150,000) - - (93,676) (94,482) (95,299) (96,128) (96,970) - NET CASH FLOW 2.41 177,958 (128,874) 116,566 115,618 278,418 292,962 205,145 210,316 215,595 220,983 226,483 329,922 Present value of Net Cash Flow - (122,003) 98,898 87,913 189,731 178,922 112,286 103,169 94,782 87,068 79,974

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 329,922 Initial yield (NOI I) 198,958 9.47% Yield 9.50% Cap rate 9.50% Initial yield (NOI II) 177,958 8.47% Discount rate 11.58% Capitalized Terminal Value, year 11 3,472,868 Potential yield (NOI I) 357,982 17.05% Cap rate for Terminal Value 9.50% Present value of Terminal Value 1,160,928 Potential yield (NOI I) - with market rents 331,270 15.77% Vacancy rate for Terminal Value 12.0 % 1. year forecasted yield (NOI II) 14,011 0.67% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 910,739 (44 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 1,160,928 (56 %) Average economical vacancy rate 17.2 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 2,071,667 (100 %)

Rounding (+/-) 28,333 *Average during 10 years MARKET VALUE (EUR) 2,100,000 Market value EUR/sqm 341 Accuracy +/- 10 % Value range (EUR) 1 890 000 - 2 310 000 RENT ROLL Nuutisarankatu 15

Lease Agreement Information Market Information 6,154.5 m2 10 Tenants 27,459.57 40,235.60 +2,225.97

Space 1st possible Notice period Contract rent Over (+) / under (-) General market vacancy number Space type GLA Tenant Lease type Indexation Start date End date termination date (months) Contract rent EUR/m EUR/m2/m Letted / Vacant Market rent EUR/m2/m Market rent EUR/m rent EUR/m Tenant improvements EUR/m2 Idle time, months reduction Industrial 55.0 m2 Koneistamo Arto Hämäläinen until further notice Indexation 01/01/2013 6 366.65 6.67 leased 6.00 330.00 +36.65 - 6 12.0 % Storage 774.0 m2 Tampereen Teatteri Oy until further notice Indexation 01/12/2011 3 4,117.83 5.32 leased 6.00 4,644.00 (526.17) - 6 12.0 % Industrial 666.0 m2 Automaalaamo P. Oinonen Oy until further notice Indexation 01/11/2011 31/12/2019 12 5,349.23 8.03 leased 6.00 3,996.00 +1,353.23 - 6 12.0 % Office 260.0 m2 DEKRA Industrial Oy fixed Indexation 01/07/2008 28/02/2019 2,945.66 11.33 leased 10.00 2,600.00 +345.66 50 EUR/m2 6 12.0 % Other23.9 m2 vacant 0.00 0.00 - 12 12.0 % Storage 50.0 m2 Hämeen Moottoripyöräilijät ry until further notice Indexation 01/02/2009 6 361.29 7.23 leased 3.00 150.00 +211.29 - 6 12.0 % Industrial 64.0 m2 Metlab Oy fixed Indexation 01/05/2011 30/03/2019 585.21 9.14 leased 6.00 384.00 +201.21 - 6 12.0 % Office 269.0 m2 Metlab Oy fixed Indexation 01/05/2011 30/03/2019 2,459.71 9.14 leased 10.00 2,690.00 (230.29) 50 EUR/m2 6 12.0 % Industrial 164.6 m2 Metlab Oy fixed Indexation 01/05/2011 30/03/2019 1,505.08 9.14 leased 6.00 987.60 +517.48 - 6 12.0 % Storage 100.0 m2 Nikander ja Wiinikka Oy until further notice Indexation 01/07/1995 31/12/2019 12 42.04 0.42 leased 3.00 300.00 (257.96) - 6 12.0 % Other 39.0 m2 Panphonics Oy fixed Indexation 01/05/2016 31/10/2021 220.09 5.64 leased 6.00 234.00 (13.91) - 6 12.0 % Storage 268.0 m2 Automaalaamo P. Oinonen Oy fixed Indexation 30/08/2020 2,314.61 8.64 leased 6.00 1,608.00 +706.61 - 6 12.0 % Office 233.0 m2 vacant 10.00 2,330.00 50 EUR/m2 12 12.0 % Industrial 754.0 m2 Panphonics Oy fixed Indexation 01/05/2016 31/10/2021 4,255.03 5.64 leased 6.00 4,524.00 (268.97) - 6 12.0 % Storage 62.0 m2 T:mi Asko Salminen until further notice Indexation 01/08/1997 1 291.24 4.70 leased 3.00 186.00 +105.24 - 6 12.0 % Office 260.0 m2 Technion Oy until further notice Indexation 01/07/2017 3 2,645.90 10.18 leased 10.00 2,600.00 +45.90 50 EUR/m2 6 12.0 % Storage 529.0 m2 vacant 6.00 3,174.00 - 12 12.0 % Storage1,583.0 m2 vacant 6.00 9,498.00 - 12 12.0 % Project Meg February 2019

Seinäjoki, Päivölänkatu 2

Key Property Overview Property Type: Retail park Year Built/Refurbished: 20082

Total Lettable Area: 5,179 sqm Vacant area: 1,790 sqm Vacancy: 29.4 % Land Plot Size: 6,045 sqm Tenure: Freehold Number of Tenants: 4 Gross Rent: € 429,451 Net Rent: € 305,151 Total ERV (gross): € 559,332 Photo ERV of Occupied Areas: € 366,012 Over/Under rented: 11.34 % WAULT to Break: 1.3 years WAULT to Expiry: 1.3 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 95,143 Market Value (net) € 4,600,000 Initial Yield 6.63%

Reversionary Yield 9.46% Location Plan Capital Value / sq m € 888 Vacant Possession Value € 3,400,000 Estimated Reinstatement € 4,800,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Retail 4 5,179 € 429,451 € 127 € 559,332 € 108 € 4,600,000 € 888 6.63%

Total 4 5,179 € 429,451 € 127 € 559,332 € 108 € 4,600,000 € 888 6.63%

Project Meg February 2019

Description

The property comprises two buildings with altogether 5,179 sq. m of retail premises and was built in 2008 with a steel framed construction. According to a technical due diligence survey provided to us (JLL, 22.11.2018), the buildings are in overall good condition.

Building A is mainly single-storey with social premises located on the 2nd floor. Building B is single-storey with only an air handler room on the 2nd floor. Buildings are divided into smaller units and let to multiple tenants. Every tenant has their own entrance. Entrances open to the parking lot which is located west side of the building A and northside of the building B. Building B has loading docks on the southern wall. In addition to the buildings there is a fenced outdoor retail area at the north end of the building A that is currently leased to Hong Kong.

The estimated remaining useful economic life of the building is approx. 30–40 years.

Location

Macro: The subject property is a retail park property located in Seinäjoki, in the Southern Ostrobothnia. Seinäjoki is one of the growing city regions in Finland with a population of ca. 62,000 and 150,000 in the greater region.

The macro location is assessed as secondary.

Micro: The property is located in the Pohja district, some 1.5 km east of the city centre. The property is located near a crossroads of highways 18 and 19, making it easily accessible and highly visible to the passing traffic. The property's surrounding area is the largest retail destination in Seinäjoki. Other than that, the immediate surroundings of the property consist of detached and row housing.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located conveniently close to area’s main roads, giving the subject property good accessibility by car. Jyväskylä centre can be reached in 15 minutes by car.

Tenancies

The property is 69 % leased to 4 tenants, generating a total rental income of €429,451/year. The rental income is 11.3% above market rent and the WALT is around 1.3 years until first break.

The main tenant is Hong Kong Suomi Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 743-6-5-3 Site area: 20,263 sqm Owner of the plot: M7 EREIP IV Monty Propco 3 Oy Leasehold details if applicable: - We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD:

• There have been investigations concerning moisture level in the retail premises currently leased by Hong Kong Seinäjoki Oy. According to the LDD report the Client has provided information that it is not aware of any moisture issues on the Property.

• There has been water leakage in the property in February 2015. According to the seller the damages have been repaired but there are no documents provided concerning the renovation.

• According to LDD, TDD report dated 2014 included repair needs to HVAC and automation engineering concentrated particularly to year 2019 (€22,000).

Project Meg February 2019

We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Zoning plan: Detailed plan Zoning: HM Permitted uses: Retail (incl. retail warehouse) and office. One parking space required per built 40 sqm. According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

Environmental:

We have received EDD report by Ambiente dated 23/11/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. Comparables below are net rents unless otherwise stated. The comparable evidence is limited.

Surface An nual Rent City sqm lfa €/sqm/year Date Remarks Järvenpää 2,800 108 Q2 2018 Retail warehouse unit, slightly better location and standard of premises Jyväskylä 470 85 Q3 2017 Retail warehouse, comparable location and standard of premises Jyväskylä 1,000 60 Q3 2017 Retail warehouse, comparable location but inferior standard of premises Kangasala 2,100 77 Q2 2016 Retail warehouse, comparable location and standard of premises Tampere 750 96 Q2 2016 Retail warehouse, slightly better location but similar standard of premises Tampere 3,000 90 Q4 2015 Retail warehouse, slightly better location but similar standard of premises

We consider that all the comparables except for the one in Järvenpää are well comparable to Seinäjoki prime retail warehouse area.

Property is located in prime retail warehouse area in Seinäjoki with good accessibility and visibility. The road 18 runs few blocks from the property and leads to Vaasa and Jyväskylä. The micro location weakens the lettability slightly since the other retail propert ies are located on the opposite side of the intersection, forming a logistically separate area. There are units of different sizes in the buildings. Building A has bigger units and B is divided into smaller units. The condition of the property is good and suitable for the current use. Some tenant improvements are

Project Meg February 2019

probably needed to increase the attractiveness of the premises. The number of occupiers searching for large units has decreased in recent years and if the current tenants leave the reletting might take time. Occupier demand is estimated to be moderate and dividing the large units into smaller ones might increase the demand.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rent: 108 €/sqm/year for retail

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks Fully let two building retail warehouse complex that was recently Pori 6,400 Q2 2018 8,000,000 1,250 fully renovated. Long lease maturity New multitenant retail warehouse in an established retail area, fully Jyväskylä 10,000 Q2 2018 18,000,000 1,800 let with long lease maturity. Hämeenlinna 2,000 Q2 2018 1,400,000 700 10-year old retail warehouse property, fully let Single tenant retail warehouse property, fully let with long lease Vaasa 4,000 Q3 2016 5,200,000 1,300 maturity Turku 8,700 Q3 2016 7.75 Fully let modern multitenant retail warehouse with long WALT Oulu 3,000 Q3 2016 2,250,000 750 11 15-year old light industrial/office property. Fully let, decent WALT 8.5 10 -year old multitenant retail warehouse in established retail area, Seinäjoki 7,500 Q4 2015 fully let with decent lease maturity

The comparable evidence suggests that fully let properties with decent maturity (around 4 to 5 years) trade around 8% yields. With longer WALT the best properties transact below 8%. The subject property's challenges relate to estimated over-rent and three vacant retail units in addition to short WALT.

Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €2.00/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 7.50% and cap rate of 7.50% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €95,143.

• Marketability Property is in good condition and has low forecasted capex level. Current WALT is short and technical vacancy rate is nearly 35%. The rating of the main tenant is not optimal but the tenant is well known in the market and the merging to an international retailer is promising. Even though Seinäjoki is a growing city and centre of Southern Ostrobothnia the location is secondary. Most likely investor would be a domestic or Nordic fund. Lengthening the WALT with renewing the current leases and leasing the vacant units would increase the marketability of the property. We estimate the investor demand to be moderate reflecting to marketing time of around 12 months. Market value is based on assumed exposure time of 12 months.

Suitability for Loan Security

Project Meg February 2019

The property is let to three tenants with a technical vacancy rate of nearly 35%. One of the leases is fixed and others are rolling leases, resulting in a WALT of only 1.3 years. From a banking perspective, the risk lies in tenants' ability to satisfy the rent during the remainder of the lease and avoid non-payment as well as occupancy of the currently vacant areas.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to be suitable for loan security with adequate loan-to-value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Päivölänkatu 2

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 9.00 559,332 559,332 564,925 576,224 587,748 599,503 611,493 623,723 636,198 648,922 661,900 675,138 Over (+) / sub (-) rents - +63,439 +67,849 +27,443 +60 ------POTENTIAL RENTAL INCOME 10.02 622,771 627,181 592,368 576,284 587,748 599,503 611,493 623,723 636,198 648,922 661,900 675,138 Idle time, months - - (218,700) (159,202) ------Reduction from market rents - (193,320) (1,269) (28,598) (57,622) (58,775) (59,950) (61,149) (62,372) (63,620) (64,892) (66,190) (67,514) Rent-free periods ------Vacancy reductions, total - (193,320) (219,969) (187,800) (57,622) (58,775) (59,950) (61,149) (62,372) (63,620) (64,892) (66,190) (67,514) Vacancy rate (%) - 31.0 % 35.1 % 31.7 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % EFFECTIVE RENTAL INCOME 6.91 429,451 407,212 404,568 518,662 528,973 539,553 550,344 561,351 572,578 584,029 595,710 607,624 Operating expenses (1.91) (119,299) (119,299) (120,492) (122,902) (125,360) (127,868) (130,425) (133,033) (135,694) (138,408) (141,176) (144,000) Repairs (0.08) (5,000) (5,000) (5,050) (5,151) (5,254) (5,359) (5,466) (5,576) (5,687) (5,801) (5,917) (6,035) Tenant improvements (0.39) - (113,000) (147,410) ------Other costs ------NET OPERATING INCOME 4.91 305,151 169,912 131,616 390,608 398,359 406,326 414,453 422,742 431,197 439,821 448,617 457,589 Capex investments - - (7,409) (7,409) - - - (15,590) (15,824) (16,061) (16,302) (16,547) - NET CASH FLOW 4.91 305,151 162,503 124,207 390,608 398,359 406,326 398,863 406,918 415,135 423,518 432,070 457,589 Present value of Net Cash Flow - 155,264 108,335 311,017 289,558 269,621 241,612 225,019 209,566 195,173 181,769

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 457,589 Initial yield (NOI I) 310,151 6.74% Yield 7.50% Cap rate 7.50% Initial yield (NOI II) 305,151 6.63% Discount rate 9.54% Capitalized Terminal Value, year 11 6,101,191 Potential yield (NOI I) 498,471 10.84% Cap rate for Terminal Value 7.50% Present value of Terminal Value 2,452,382 Potential yield (NOI I) - with market rents 435,033 9.46% Vacancy rate for Terminal Value 10.0 % 1. year forecasted yield (NOI II) 169,912 3.69% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 2,186,934 (47 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 2,452,382 (53 %) Average economical vacancy rate 14.7 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 4,639,316 (100 %)

Rounding (+/-) (39,316) *Average during 10 years MARKET VALUE (EUR) 4,600,000 Market value EUR/sqm 888 Accuracy +/- 10 % Value range (EUR) 4 140 000 - 5 060 000 RENT ROLL Päivölänkatu 2

Lease Agreement Information Market Information 5,179.0 m2 4 Tenants 35,787.56 46,611.00 +5,286.56

Jyväskylä, Palokankaantie 18

Key Property Overview Property Type: Industrial/warehouse Year Built/Refurbished: 20082

Total Lettable Area: 2,331 sqm Vacant area: 1,000 sqm Vacancy: 42.1 % Land Plot Size: 6,045 sqm Tenure: Freehold Photo Number of Tenants: 1 Gross Rent: € 207,443 Net Rent: € 122,369 Total ERV (gross): € 342,273 ERV of Occupied Areas: € 191,533 Over/Under rented: 4.6 % WAULT to Break: 2.6 years WAULT to Expiry: 2.6 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Location Plan Capex: € 194,710 Market Value (net) € 2,100,000 Initial Yield 5.35% Reversionary Yield 11.77% Capital Value / sq m € 901 Vacant Possession Value € 1,600,000 Estimated Reinstatement € 3,100,000 Cost (VAT 0%) Overview per use type Rent Market rent /sqm/yr Market rent /yr /sqm/yr Use # tenants sqm lfa Rent /yr (gross) (gross) Market value €/sqm GIY Storage 1 1,181.5 € 130,373 € 156 € 159,503 € 135

Office 1 1,149.6 € 77,070 € 156 € 182,771 € 159

Total 1 2,331 € 207,443 € 156 € 342,273 € 147 € 2,100,000 € 901 5.35%

Project Meg February 2019

Description

The property comprises an office/warehouse building with total area of 2,315 sqm. The building consists of a one-storey industrial part and a two-storey office part. The industrial part comprises three halls, two of which are approximately same size and one smaller hall situated between them. The larger halls each have three loading doors while the small hall has one. The office part has meeting rooms, social premises and storages on the first floor and open-plan office on the second floor.

The estimated remaining useful economic life of the building is approx. 30–40 years.

Location

Macro: Property is located in Jyväskylä in central Finland in the Palokangas industrial area. Distance to Jyväskylä city centre is some 13 km. Laukaantie runs east from the property.

The macro location is assessed as secondary.

Micro: Palokangas is a mainly light industrial area constructed during 1990s and 2000s, north-east from the city. The area is among the most popular industrial areas in Jyväskylä. The immediate surroundings of the property include retailers such as car dealers.

The micro location is considered to be good for the purpose of the building.

Accessibility

The asset is located conveniently close to the Jyväskylä-Laukaa road, giving the subject property good accessibility by car. Jyväskylä centre can be reached in 15 minutes by car. The subject property is reachable by public transport from the city centre in around 30 minutes.

Tenancies

The property is 42.1% leased to one tenant, generating a total rental income of € 207,443/year. The rental income is 4.6% above market rent and the WALT is around 2.6 years until first break.

The main tenant is ISS Palvelut Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 17-19-82-3 Site area: 6,045 sqm Owner of the plot: M7 EREIP IV Camelot Propco 4 Oy Leasehold details if applicable: -

Planning:

Zoning plan: Detailed plan Zoning: TL-2 Permitted uses: Industrial, storage and retail. A maximum of 30% of the building right can be built for retail use, however large retail units are not allowed. A petrol station is allowed on the plot.

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Project Meg February 2019

Condition and Environmental

Condition:

We have received a business plan including capex budget and have adopted these as is in the calculation.

Environmental:

We have received EDD report by Ambiente dated 22/07/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. Comparables below are gross rents unless otherwise stated. The comparable evidence is limited.

Surface An nual Rent City sqm lfa €/sqm/year Date Remarks Jyväskylä 400 126 Q2 2018 Light industrial/retail, similar condition and macro location Tampere 400 91 Q3 2016 Office/warehouse, older property Tampere 2,400 82 Q2 2016 Office/light industrial, clearly older property. Tampere 150 125 Q4 2015 Light industrial/office in satisfactory condition, clearly older property. Kotka 1,300 102 (net) Office/industrial unit, similar standard of premises, inferior location

As the leasing evidence suggests, the gross rents in mixed-use properties including office, industrial and warehouse space range approx. from €80-125/sqm/year. The latest lease transaction is smaller and from a new property, however the location and standard of premises are similar. All the comparables from Tampere are from properties that are older and in worse condition i.e. the standard of premises is inferior which reflects as lower rental levels in the properties. In addition, ISS has recently renewed their lease in the property but also reduced the amount of leased space. All in all, ISS’s renewed lease gives good indication that the rental level that can be reached in the property is higher than what the evidence from the older and in terms of standard of premises inferior properties states.

Building is the most functional in single-tenant use as it has been purpose-build for the current occupier. The premises are in good condition and do not need any significant tenant improvements to re-let. No similar space is currently available in the proximity, there are few older light industrial properties available in the area to add pressure on rent levels. Should the tenant vacate the large amount of office space in this location is estimated to be challenging to let.

Based on the evidence, we adopted the following gross market rents: 159 €/sqm/year for office and 135 €/sqm/year for storage.

Project Meg February 2019

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks Jyväskylä 400 Q3 2018 450,000 1,100 9.5 New, small light industrial property. Single let with 5 year lease Oulu 7,000 Q1 2018 3,500,000 500 Industrial property sold to owner-occupier Oulu 22,000 Q1 2018 14,300,000 650 Multitenant light industrial/office property Tampere 10,000 Q4 2017 8,000,000 800 Retail, office and warehouse use 12 15 -year old light industrial/office prop erty sold to owner -occupier. Oulu 1,700 Q2 2016 1,500,000 920 Was estimated to be over -rented and had short lease maturity. Vantaa 2,700 Q2 2016 3,200,000 1,200 8.75 -9 15-year old light industrial/office property. Fully let, decent WALT Vantaa 4,700 Q4 2015 7,000,000 1,490 Old light industrial property with long lease maturity.

We consider the most comparable transaction to be the 1,700 sq m property in Oulu. The space division and size are similar, as well as the lease maturity and the fact that the property is estimated to be slightly over-rented.

Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €3.40/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 9.50% and cap rate of 8.50% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €194,710.

• Marketability The investment market also outside Helsinki metropolitan area has improved during the last years as private investors have activated. The property is in good condition but over-rented and has high vacancy. The pricing is estimated to be relatively opportunistic reflecting to risk in renewal rent level as well as reletting the vacant space. Estimated marketing time is at least around 12 months and most potential buyers include owner-occupiers and private investors, possibly even smaller funds. Our market value is based on 12 months exposure time.

Suitability for Loan Security

As at the valuation date, the property is let to one tenant with a technical vacancy rate of 42.1%. The only lease in the property is fixed until Sep 2021. From a banking perspective, the risk lies in tenant's ability to satisfy the rent during the remainder of the lease and avoid non-payment and reletting the vacant space.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

Project Meg February 2019

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Palokankaantie 18

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 12.24 342,273 342,273 345,696 352,610 359,662 366,855 374,192 381,676 389,310 397,096 405,038 413,138 Over (+) / sub (-) rents - +15,890 +15,890 +16,049 +9,549 ------POTENTIAL RENTAL INCOME 12.80 358,163 358,163 361,745 362,159 359,662 366,855 374,192 381,676 389,310 397,096 405,038 413,138 Idle time, months - - (150,720) - (82,224) (16,774) ------Reduction from market rents - (150,720) - (15,223) (15,527) (34,289) (36,686) (37,419) (38,168) (38,931) (39,710) (40,504) (41,314) Rent-free periods ------Vacancy reductions, total - (150,720) (150,720) (15,223) (97,751) (51,063) (36,686) (37,419) (38,168) (38,931) (39,710) (40,504) (41,314) Vacancy rate (%) - 42.1 % 42.1 % 4.2 % 27.0 % 14.2 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % EFFECTIVE RENTAL INCOME 7.42 207,443 207,443 346,522 264,408 308,599 330,170 336,773 343,508 350,379 357,386 364,534 371,825 Operating expenses (3.35) (94,075) (94,075) (95,016) (96,916) (98,854) (100,831) (102,848) (104,905) (107,003) (109,143) (111,326) (113,553) Repairs (0.04) (1,000) (1,000) (1,010) (1,030) (1,051) (1,072) (1,093) (1,115) (1,137) (1,160) (1,183) (1,207) Tenant improvements (0.14) - (41,375) ------Other costs ------NET OPERATING INCOME 4.02 112,369 70,994 250,497 166,461 208,694 228,266 232,832 237,488 242,238 247,083 252,024 257,065 Capex investments - - (42,842) (42,842) - - (5,000) (20,190) (20,493) (20,800) (21,113) (21,429) - NET CASH FLOW 4.02 112,369 28,151 207,655 166,461 208,694 223,266 212,641 216,995 221,438 225,970 230,595 257,065 Present value of Net Cash Flow - 26,650 176,181 126,574 142,217 136,356 116,389 106,445 97,351 89,033 81,426

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 257,065 Initial yield (NOI I) 113,369 5.40% Yield 9.50% Cap rate 8.50% Initial yield (NOI II) 112,369 5.35% Discount rate 11.58% Capitalized Terminal Value, year 11 3,024,293 Potential yield (NOI I) 263,089 12.53% Cap rate for Terminal Value 8.50% Present value of Terminal Value 1,010,976 Potential yield (NOI I) - with market rents 247,198 11.77% Vacancy rate for Terminal Value 10.0 % 1. year forecasted yield (NOI II) 70,994 3.38% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 1,098,622 (52 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 1,010,976 (48 %) Average economical vacancy rate 14.7 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 2,109,598 (100 %)

Rounding (+/-) (9,598) *Average during 10 years MARKET VALUE (EUR) 2,100,000 Market value EUR/sqm 901 Accuracy +/- 10 % Value range (EUR) 1 890 000 - 2 310 000 RENT ROLL Palokankaantie 18

Lease Agreement Information Market Information 2,331.0 m2 1 Tenants 17,286.96 28,522.75 +1,324.21

Porvoo, Ratsumestarinkatu 5-7

Key Property Overview Property Type: Retail park Year Built/Refurbished: 20072

Total Lettable Area: 8,272 sqm Vacant area: 0 sqm Vacancy: 0 % Land Plot Size: 22,532 sqm Tenure: Freehold Number of Tenants: 4 Gross Rent: € 978,009 Net Rent: € 795,272

Total ERV (gross): € 920,016 Photo ERV of Occupied Areas: € 920,016 Over/Under rented: 6.3 % WAULT to Break: 7.4 years WAULT to Expiry: 7.4 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 146,374 Market Value (net) € 10,000,000 Initial Yield 7.95% Reversionary Yield 7.37% Capital Value / sq m € 1,209 Location Plan Vacant Possession Value € 6,300,000 Estimated Reinstatement € 8,400,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Retail 4 8,272 € 978,009 € 118 € 920,016 € 111 € 10,000,000 € 1,209 7.37%

Total 4 8,272 € 978,009 € 118 € 920,016 € 111 € 10,000,000 € 1,209 7.37%

Project Meg February 2019

Description

The property consists of two buildings built in 2007 comprising a total area of 8,272 sqm. Additionally there is a 1,500 sqm yard, 500 sqm of outdoor sales area. Ratsumestarinkatu 5 (nr. 5) is mainly single-storey retail warehouse building which has been divided to three retail units. Nr. 7 is mainly single-storey retail warehouse building with covered outdoor garden sales area. Every tenant has their own entrance. Entrances open to the parking lot which is located on the eastern side of the buildings. The loading docks are on the western walls.

The estimated remaining useful economic life of the building is approx. 30–40 years.

Location

Macro: Retail park property located in Porvoo, Southern Finland, some 50 km west of Helsinki. Porvoo is a popular tourist destination and has a population of ca. 50,000 inhabitants.

The macro location is assessed as secondary.

Micro: The property is located in Porvoo, in the retail park area of Kuninkaanportti, some 3,5 km west of the city centre, on the other side of the Porvoonjoki river. Other users in Kuninkaanportti include hardware store, consumers electronics retailers, car retailers and furniture stores.

The micro location is considered to be good for the purpose of the building.

Accessibility The asset is located conveniently close to area’s main road, Helsinki-Kotka motorway, giving the subject property good accessibility by car. Porvoo centre can be reached in 10 minutes by car and in around 20 minutes by public transport.

Tenancies

The property is 100% leased to 4 tenants, generating a total rental income of €978,009/year. The rental income is 6.3% above market rent and the WALT is around 7.4 years.

The main tenant is Hong Kong Suomi Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 638-24-2003-2, 638-24-2003-3 Site area: 22,532 sqm Owner of the plot: M7 EREIP IV Monty Propco 1 Oy Leasehold details if applicable: - We have received a legal due diligence by Roschier (dated 14.11.2018) and overview report by Borenius (dated 4.3.2019) for this property. There are few things to be mentioned concerning the findings in LDD: • There are water damages in the property that should be coverable by insurance. The amount of damages is stated to be €50,000. This is not included in the business plan capex budget provided.

• There are rent receivables from Hong Kong Porvoo Oy amounting to €24,44.43. Hong Kong Porvoo Oy is paying the rent receivables in accordance with the payment schedule confirmed in its reorganization proceedings (Fi: yrityssaneeraus). We have not reviewed the title documents in detail and have assumed that there a no overly onerous easements or restrictive covenants affecting the property.

Planning:

Zoning plan: Detailed plan Zoning: KL-9

Project Meg February 2019

Permitted uses: Retail, office, industrial or warehouse. Over 2000 sqm grocery stores not allowed. One grocery store below the aforementioned limit may be built on the district. One parking space required per 40 sqm of retail/office space. According to our interpretation of the zoning plan the current building and use seem to be permitted.

Condition and Environmental

Condition:

According to the technical due diligence survey provided to us (JLL, 22/11/2018), the building is in good condition. The estimated remaining useful economic life of the building is approx. 30-40 years. We have received a business plan including capex budget and have adopted these as is in the calculation. According to the legal due diligence by Roschier (dated 14.11.2018) there are water damages in the property that should be coverable by insurance. The amount of damages is stated to be €50,000. This is not included in the capex budget provided and adopted in the calculation.

Environmental:

We have received EDD report by Ambiente dated 19/09/2016. According to the environmental review provided to us there are no apparent environmental risks on-site. The report identifies the possibility for migration of contamination from off-site land uses (consisting of a depot, vehicle maintenance facility, former snow dumping area, and petrol station located within 400 meters of the subject property).

The level of environmental risk associated with the subject property is assessed to be acceptably low for continued current use. The site has not been designated as contaminated land.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. Comparables below are net rents unless otherwise stated. The comparable evidence is limited.

Surface An nual Rent City sqm lfa €/sqm/year Date Remarks Vantaa 1,100 71 Q1 2018 Comparable location and similar standard of premises Järvenpää 2,800 108 Q4 2017 Slightly better location and better standard of premises Jyväskylä 370 85 Q3 2017 Comparable location and similar standard of premises Tampere 5,000 85 Q1 2017 Comparable location and similar standard of premises Tampere 1,300 119 Q1 2017 Better location and new premises Tampere 750 96 Q2 2016 Comparable location and similar standard of premises

Competition situation in Kuninkaanportti area is estimated to be tighter than in comparable properties reflecting the slightly lower rents in smaller assets. Instead, for larger occupier as Hong Kong there are practically no alternative locations to move, justifying slightly higher rent level that originates from the original lease agreement.

The property is located in entrance from highway 7 to Porvoo in popular and fairly new Kuninkaanportti retail warehouse area. In the surroundings of the property there are located e.g. hardware store K-Rauta and car dealers. The buildings have been completed in 2007 and are in good condition. However, there is limited tenant interest for the premises. Net rental levels for similar 10-year old retail warehouse

Project Meg February 2019

properties in comparable locations range typically from €72 to €108/sqm/year depending on the location and size of the premises. Higher rents are mainly found in new developments.

Based on the evidence provided above and leasing evidence in the property, we adopted the following gross market rent: 102-126 €/sqm/year, depending on which of the premises in question.

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks Fully let two building retail warehouse complex that was recently Pori 6,400 Q2 2018 8,000,000 1,250 fully renovated. Long lease maturity New multitenant retail warehouse in an established retail area, fully Jyväskylä 10,000 Q2 2018 18,000,000 1,800 let with long lease maturity. Hämeenlinna 2,000 Q2 2018 1,400,000 700 10-year old retail warehouse property, fully let 9 10 -year old multitenant retail warehouse property in an established Helsinki Q1 2016 1,900 retail area with short WALT. Turku 8,700 Q3 2016 7.75 Fully let modern multitenant retail warehouse with long WALT 9 Modern multitenant retail warehouse in an established retail area, Nokia 8,200 Q4 2016 almost fully let, decent lease maturity 8.5 10 -year old multitenant retail warehouse in an established retail Seinäjoki 7,500 Q4 2015 area, fully let with decent lease maturity

• Void periods and leasing assumptions We estimate the average void period at 6 months for currently rented spaces and 18 months for currently vacant spaces. Overall, we believe the property has satisfactory lettability.

• Operating costs Based on the information received we have applied a total of €1.84/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 6.50% and cap rate of 7.50% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is €146,374.

Suitability for Loan Security

As at the valuation date, the property is fully let to four tenants. There is two fixed lease agreements with Motonet until 2028 and Masku until 2021, while the lease with Hong Kong is valid until further notice with the first termination date in May 2025. The WALT of the property is 7.4

Project Meg February 2019

years. From a banking perspective, the risk lies in the tenants' ability to satisfy the rent during the remainder of the lease and avoid non- payment.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to be suitable for loan security, with adequate loan-to-value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Ratsumestarinkatu 5-7

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 9.27 920,016 920,016 929,216 947,800 966,756 986,091 1,005,813 1,025,929 1,046,448 1,067,377 1,088,724 1,110,499 Over (+) / sub (-) rents - +57,993 +57,993 +58,573 +64,725 +76,178 +77,702 +79,256 +80,841 +17,272 (4,546) (773) - POTENTIAL RENTAL INCOME 9.85 978,009 978,009 987,789 1,012,525 1,042,934 1,063,793 1,085,069 1,106,770 1,063,720 1,062,831 1,087,952 1,110,499 Idle time, months - - (5) (917) (45,570) (23,241) - - - (223,035) - (232,718) - Reduction from market rents - - - (65) (132) (8,269) (10,093) (10,295) (10,501) (18,517) (42,775) (54,490) (77,735) Rent-free periods ------Vacancy reductions, total - - (5) (982) (45,702) (31,509) (10,093) (10,295) (10,501) (241,552) (42,775) (287,208) (77,735) Vacancy rate (%) - 0.0 % 0.0 % 0.1 % 4.5 % 3.0 % 0.9 % 0.9 % 0.9 % 22.7 % 4.0 % 26.4 % 7.0 % EFFECTIVE RENTAL INCOME 9.85 978,009 978,004 986,807 966,823 1,011,425 1,053,700 1,074,774 1,096,269 822,168 1,020,056 800,743 1,032,764 Operating expenses (1.65) (163,729) (163,729) (165,366) (168,674) (172,047) (175,488) (178,998) (182,578) (186,229) (189,954) (193,753) (197,628) Repairs (0.19) (19,008) (19,008) (19,198) (19,582) (19,974) (20,373) (20,781) (21,196) (21,620) (22,053) (22,494) (22,943) Tenant improvements (0.23) - - (51) - (34,177) - - - (102,724) - (114,077) - Other costs ------NET OPERATING INCOME 8.01 795,272 795,267 802,192 778,567 785,227 857,838 874,995 892,495 511,595 808,050 470,419 812,192 Capex investments - - (9,043) (9,043) - - - (24,899) (25,273) (25,652) (26,037) (26,427) - NET CASH FLOW 8.01 795,272 786,224 793,149 778,567 785,227 857,838 850,096 867,222 485,943 782,013 443,992 812,192 Present value of Net Cash Flow - 754,717 701,567 634,580 589,742 593,674 542,110 509,595 263,122 390,177 204,126

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 812,192 Initial yield (NOI I) 814,280 8.14% Yield 6.50% Cap rate 7.50% Initial yield (NOI II) 795,272 7.95% Discount rate 8.52% Capitalized Terminal Value, year 11 10,829,228 Potential yield (NOI I) 795,272 7.95% Cap rate for Terminal Value 7.50% Present value of Terminal Value 4,779,248 Potential yield (NOI I) - with market rents 737,278 7.37% Vacancy rate for Terminal Value 7.0 % 1. year forecasted yield (NOI II) 795,267 7.95% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 5,183,410 (52 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 4,779,248 (48 %) Average economical vacancy rate 6.4 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 9,962,659 (100 %)

Rounding (+/-) 37,341 *Average during 10 years MARKET VALUE (EUR) 10,000,000 Market value EUR/sqm 1,209 Accuracy +/- 10 % Value range (EUR) 9 000 000 - 11 000 000 RENT ROLL Ratsumestarinkatu 5-7

Lease Agreement Information Market Information 8,271.5 m2 4 Tenants 81,500.74 76,667.96 +4,832.78

Other (no GLA) 0.0 m2 Hong Kong Suomi Oy until further notice Indexation 01/04/2018 31/05/2025 12 0.00 leased 0.00 0.00 0.00 25 EUR/m2 6 7.0 % Other (no GLA) 500.0 m2 Hong Kong Suomi Oy until further notice Indexation 01/04/2018 31/05/2025 12 0.00 0.00 leased 0.00 0.00 0.00 25 EUR/m2 6 7.0 % Retail 3,049.5 m2 Motonet Oy / Motonet fixed Indexation 01/05/2018 30/04/2028 25,662.54 8.42 leased 8.50 25,920.75 (258.21) 25 EUR/m2 6 7.0 %

Retail 579.5 m2 Motonet Oy / Motonet fixed Indexation 01/05/2018 30/04/2028 4,876.68 8.42 leased 8.50 4,925.75 (49.07) 25 EUR/m2 6 7.0 %

Retail 227.0 m2 Motonet Oy / Motonet fixed Indexation 01/05/2018 30/04/2028 1,910.28 8.42 leased 8.50 1,929.50 (19.22) 25 EUR/m2 6 7.0 %

Retail 1,301.0 m2 Maskun Kalustetalo Oy fixed Indexation 01/11/2018 31/10/2021 9,850.01 7.57 leased 8.50 11,058.50 (1,208.49) 25 EUR/m2 6 7.0 % Project Meg February 2019

Pietarsaari, Ristisuonraitti 4

Key Property Overview Property Type: Retail park Year Built/Refurbished: 20062

Total Lettable Area: 2,820 sqm Vacant area: 0 sqm Vacancy: 0 % Land Plot Size: 5,972 sqm Tenure: Freehold Number of Tenants: 2 Gross Rent: € 334,890 Net Rent: € 241,482 Total ERV (gross): € 304,560 Photo ERV of Occupied Areas: € 304,560 Over/Under rented: 10.0 % WAULT to Break: 3.1 years WAULT to Expiry: 3.1 years

Valuation as at: 22 February 2019 Gross Value: N/A Purchasers Costs: N/A Capex: € 54,287 Market Value (net) € 1,900,000 Initial Yield 12.71% Reversionary Yield 11.11% Capital Value / sq m € 674 Location Plan Vacant Possession Value € 1,100,000 Estimated Reinstatement € 2,700,000 Cost (VAT 0%) Overview per use type Rent Market rent /yr Market rent Use # tenants sqm lfa Rent /yr /sqm/yr (gross) /sqm/yr (gross) Market value €/sqm GIY Retail 2 2,820 € 334,890 € 119 € 304,560 € 108

Total 2 2,820 € 334,890 € 119 € 304,560 € 108 € 1,900,000 € 674 12.71%

Project Meg February 2019

Description

Subject property is a retail property built in 2006 and comprises 2,820 sq. m of modern retail park premises in two units. There are 33 allocated parking spaces on the yard. The building is single-storey, except for the relatively small Jysk office and some of the technical spaces on the second floor. There is one customer entrance to the building which serves all three units. From the entrance Jysk's unit opens on the right-hand side and the Sotka on the left-hand side. Straight opposite of the customer entrance is located the small retail unit currently occupied by Jysk.

The estimated remaining useful economic life of the building is approx. 30–40 years.

Location

Macro: A retail property located in Pietarsaari, in Ostrobothnia, on the western coast of Finland. Pietarsaari is a mainly Swedish-speaking municipality with a population of ca. 19,000. Vaasa is located roughly 80 minutes’ drive away southwest from Pietarsaari.

The macro location is assessed as secondary.

Micro: The property is located 1.5 km north-east of the Pietarsaari town centre, in the main out of town retail area, where there is a number of different retail users and groceries. The property is located north of the main road leading to the town centre and has good connections. Surrounding properties are mainly retail warehouses, light industrial or car dealers.

The micro location is considered to be suitable for the purpose of the building.

Accessibility

The asset is located conveniently close to the city giving the subject property good accessibility locally. Pietarsaari city centre can be reached in 5 minutes by car and in around 15 minutes by infrequent public transport.

Tenancies

The property is 100% leased to 2 tenants, generating a total rental income of €334,890/year. The rental income is 10% above market rent and the WALT is around 3.1 years until first break.

The main tenant is Jysk Oy.

Legal

Title and Tenure:

Tenure: Freehold Register number: 598-14-39-17 Site area: 5,972 sqm Owner of the plot: M7 EREIP IV Monty Propco 4 Oy Leasehold details if applicable: -

Planning:

Zoning plan: Detailed plan Zoning: KTY Permitted uses: Business premises. One parking space required per 80 sqm of built retails space.

According to our interpretation of the zoning plan the current building and use seem to be permitted.

Project Meg February 2019

Condition and Environmental

Condition:

Environmental:

We have received EDD report by Ambiente dated 16/09/2016. According to the environmental review provided to us there are no apparent environmental risks.

We have assumed that the value of the subject property is not affected by soil or other contamination. Should this assumption prove to be incorrect we reserve the right to amend this valuation.

Comparable Information

Leasing Comparables:

We have based the market rent on a combination of an analysis of the most recent leases in the subject properties, available stock offered online and comparable lease transactions. We have taken the following transactions as comparables for the market rent of the subject property. The comparables below are net rents unless stated otherwise. The comparable evidence is limited.

Surface An nual Rent City sqm lfa €/sqm/year Date Remarks Jyväskylä 370 85 Q3 2017 Comparable location and similar standard of premises Jyväskylä 1,000 60 Q3 2017 Comparable location and slightly inferior standard of premises Kaarina 600 88 (gross) Q3 2016 Better location but similar standard of premises Kangasala 2,100 77 Q2 2016 Comparable location and similar standard of premises Tampere 750 96 Q2 2016 Better location but similar standard of premises Tampere 3,000 90 Q4 2015 Better location but similar standard of premises Kokkola 1,800 67 Q1 2015 Comparable location but slightly inferior standard of premises

Location-wise the most comparable lease would be the one in Kokkola. The ones in Jyväskylä, Kangasala and Tampere have better macro locations in growing city regions. However, the location of the subject property in Pietarsaari is quite central next to the main roads of the area and there are no competing locations for retail operators nearby which could suggest a slightly higher market rent.

Property is located near Kållbyvägen that connects to highway 8, granting access to e.g. Kokkola. Micro location in retail warehouse area and good visibility increase the attractiveness of the property in occupier’s point of view. The property suits the current use well. The number of occupiers needing larger retail units in the market has decreased in recent years and in the event of current tenant vacating, the reletting might take time. In addition, the possibility to divide the units is estimated to be poor. Overall, the demand for these kind of premises is considered to be moderate. In addition, Pietarsaari competes with Kokkola that also has retail warehouse area and is more attractive location due to the larger size of the city and number of inhabitants in the area.

Based on the evidence, we adopted the following gross market rent: 108 €/sqm/year

Project Meg February 2019

Investment Comparables:

In arriving at the market value for this property, we have taken the investment transactions listed below. The comparable evidence is limited. Price City sq m lfa Date Price € € / sqm GIY % Remarks Fully let two building retail warehouse complex that was recently Pori 6,400 Q2 2018 8,000,000 1,250 fully renovated. Long lease maturity New multitenant retail warehouse in an established retail area, fully Jyväskylä 10,000 Q2 2018 18,000,000 1,800 let with long lease maturity. Hämeenlinna 2,000 Q2 2018 1,400,000 700 10-year old retail warehouse property, fully let Vaasa 4,000 Q3 2016 5,200,000 1,300 Single tenant retail warehouse with long lease maturity Turku 8,700 Q3 2016 7.75 Fully let modern multitenant retail warehouse with long WALT 11 15 -year old fully let retail property sold to owner -occupier, had Oulu 3,000 Q3 2016 750 short WALT 8.5 10 -year old multitenant retail warehouse in an established retail Seinäjoki 7,500 Q4 2015 area, fully let with decent lease maturity

The properties with decent maturity have transacted at above 8% yield levels in larger cities. Considering Pietarsaari as macro location the yield levels are significantly more opportunistic. Valuation Assumptions

• Operating costs Based on the information received we have applied a total of €2.75/sqm/month as long-term average operating costs, which is in line with comparable properties. These costs account for property management, maintenance, heating, water, electricity, gas, taxes, insurance and repairs.

Yields Yields are derived from market evidence.

We have applied yield of 9.50% and cap rate of 10.00% in the calculation

• Capital expenditure

We have received a business plan including capex budget and have adopted these as is in the calculation. Total sum of capex budgeted for 10 years is € 54,287.

• Marketability Property is in good condition and has low forecasted capex level. The property is currently fully let with two leases valid until 2019 and 2024. The current tenants have been in the building for several years. However, the location in Pietarsaari is too exotic and remote to most investors and moreover investors tend to be cautious of the furniture sector's stability and risk. Considering small investment size, the most likely investor would be private investor or owner-occupier, smaller funds might also show some interest. The marketing time is estimated to be at least 12 months. Market value is based on assumed exposure time of 12 months.

Suitability for Loan Security

As at the valuation date, the property is fully let to two tenants with WALT of 3.1 years. The tenants operate in furniture retail which has been struggling, however they are among the strongest in the business. Visible micro location and good standard of premises facilitate reletting in case one of tenants would default.

Overall, based on the information provided and subject to the comments contained within this report, we consider the property to suitable for loan security with adequate loan-to-value ratio.

Comments / special assumptions

For this property there are no further comments and we have not taken any special assumptions for determining the market value.

This overview forms part of the Project Meg Valuation Report and should not be read in isolation.

Project Meg February 2019

In accordance with USPAP requirements we confirm that we consider the current use as highest and best use.

CASH FLOW Ristisuonraitti 4

EUR/sqm/mth 02-2019 02-2020 02-2021 02-2022 02-2023 02-2024 02-2025 02-2026 02-2027 02-2028 02-2029 02-2030

ESTIMATED RENTAL VALUE 9.00 304,560 304,560 307,606 313,758 320,033 326,434 332,962 339,621 346,414 353,342 360,409 367,617 Over (+) / sub (-) rents - +30,330 +28,478 +23,150 +23,613 +24,085 +24,566 +8,353 - - - - - POTENTIAL RENTAL INCOME 9.90 334,890 333,038 330,755 337,370 344,118 351,000 341,315 339,621 346,414 353,342 360,409 367,617 Idle time, months - - (39,150) (39,542) - - - (80,879) - - - - - Reduction from market rents - - - (11,862) (16,133) (16,456) (16,785) (19,816) (33,962) (34,641) (35,334) (36,041) (36,762) Rent-free periods ------Vacancy reductions, total - - (39,150) (51,404) (16,133) (16,456) (16,785) (100,695) (33,962) (34,641) (35,334) (36,041) (36,762) Vacancy rate (%) - 0.0 % 11.8 % 15.5 % 4.8 % 4.8 % 4.8 % 29.5 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % EFFECTIVE RENTAL INCOME 9.90 334,890 293,888 279,351 321,237 327,662 334,215 240,619 305,659 311,772 318,008 324,368 330,855 Operating expenses (2.52) (85,408) (85,408) (86,262) (87,987) (89,747) (91,542) (93,373) (95,240) (97,145) (99,088) (101,070) (103,091) Repairs (0.24) (8,000) (8,000) (8,080) (8,242) (8,406) (8,575) (8,746) (8,921) (9,099) (9,281) (9,467) (9,656) Tenant improvements (0.20) - - (36,613) - - - (37,444) - - - - - Other costs ------NET OPERATING INCOME 7.14 241,482 200,480 148,397 225,008 229,509 234,099 101,056 201,498 205,528 209,639 213,831 218,108 Capex investments - - (5,275) (5,275) - - - (8,489) (8,616) (8,745) (8,877) (9,010) - NET CASH FLOW 7.14 241,482 195,205 143,122 225,008 229,509 234,099 92,567 192,882 196,783 200,762 204,821 218,108 Present value of Net Cash Flow - 184,798 121,429 171,091 156,401 142,972 50,667 94,617 86,512 79,101 72,325

TERMINAL VALUE RETURNS ASSUMPTIONS Net operating income, year 11 218,108 Initial yield (NOI I) 249,482 13.13% Yield 9.50% Cap rate 10.00% Initial yield (NOI II) 241,482 12.71% Discount rate 11.58% Capitalized Terminal Value, year 11 2,181,079 Potential yield (NOI I) 241,482 12.71% Cap rate for Terminal Value 10.00% Present value of Terminal Value 729,102 Potential yield (NOI I) - with market rents 211,152 11.11% Vacancy rate for Terminal Value 10.0 % 1. year forecasted yield (NOI II) 200,480 10.55% DIVISION OF VALUE 10 y average Present value of 10 year cash flows 1,159,912 (61 %) KEY FIGURES* Inflation 1.90% Present value of Terminal Value 729,102 (39 %) Average economical vacancy rate 11.1 % Market rent change 1.90% Other value (unused building rights etc.) - (0 %) Cost change 1.90% TOTAL 1,889,014 (100 %)

Rounding (+/-) 10,986 *Average during 10 years MARKET VALUE (EUR) 1,900,000 Market value EUR/sqm 674 Accuracy +/- 10 % Value range (EUR) 1 710 000 - 2 090 000 RENT ROLL Ristisuonraitti 4

Lease Agreement Information Market Information 2,820.0 m2 2 Tenants 27,907.52 25,380.00 +2,527.52

2 Retail 1,284.0 m2 Jysk Oy / Jysk fixed Indexation 24/04/2007 30/06/2024 13,524.66 10.53 leased 9.00 11,556.00 +1,968.66 25 EUR/m2 6 10.0 %

3 Retail 86.0 m2 Jysk Oy / Jysk fixed Indexation 01/12/2017 30/06/2024 715.37 8.32 leased 9.00 774.00 (58.63) 25 EUR/m2 6 10.0 % Appendices

Appendix D Market Commentary

Headline 2018 was a strong year for office leasing transactions in Helsinki. The growing economy has boosted the market to new heights and rental growth has been recorded in many key locations. Although there are concerns about future development of the global economy, the positive sentiment in Helsinki office market remains robust. Both domestic and cross-border investors show continued strong appetite for office investments, with most investors focused on the Helsinki market.

Rental Market The year 2018 ended in strong terms for the Helsinki office market, occupier activity remains strong while demand for higher quality offices continues unabated. The office vacancy rate kept decreasing during H2 and settled at 11.8 % at year-end, representing a 2.3 percentage point downward change over the year. The vacancy rate is still high compared to that of other European major cities, however, it is important to note that a large share of the vacancy is formed by obsolete stock waiting to be repurposed. High quality offices near public transportation connections in key locations are becoming scarce, especially in the CBD, which remains the strongest submarket with record low vacancy of 3.9 %. The difficulty in finding available office premises in the CBD has pushed many occupiers to widen their search to surrounding submarkets, which has boosted the activity not only in the Secondary Business District (SBD), but also in Ruoholahti, Pasila, Sörnäinen and Kalasatama. The area formed by Sörnäinen-Kalasatama appears to consolidate its image as the new hip office area of Helsinki. Many occupiers from the creative industry have relocated there or are strongly considering it. The scarcity of higher quality space has motivated many property owners to greatly increase the asking rents in the CBD during H2. While recorded CBD prime rent grew 1.5% (€0.5/month/sq. m.) during H2 to €34/month/sq. m., the asking rents have already reached the next boundary waiting to be broken, €35.5/month/sq. m. (gross rent of €40/month/sq. m. from the occupier perspective). This trend is also spreading to surrounding areas, where landlords see opportunities to grow rental levels beyond current area specific prime levels by upgrading buildings to meet the quality-oriented occupier demand. Only 17,900 sq. m. of office completions were recorded during H2 leaving the 2018 total at 34,400 sq m, which is the 2nd lowest figure during last 10 years, and significantly below the 10-year average of 90,000 sq m. Nevertheless, the development pipeline is recovering after three quiet years and returning to its average levels: a healthy 230,000 sq. m. is already under construction and scheduled to complete during 2019-2020. Investment Market Attracted by robust economic and occupier market fundamentals, and an unprecedented amount of high-quality assets for sale, international investors continue to show a keen interest in the Helsinki office market.

Offices was the most transacted property type by investment volume not only in H2, but also for the full year. Boosted by the large Technopolis public-to-private transaction, office transactions amounted to €3.7 billion in 2018, of which €2.9 billion was transacted in the latter half of the year.

The Technopolis publicly traded shares were purchased by a new investor to the market, Kildare Partners, a private equity fund based in London. Another high-profile market entry was made by BlackRock, the world’s largest asset manager, who purchased two office properties in Helsinki in H2 2018. The period was also one marked by several large deals, with altogether eight office transactions with investment volumes exceeding €100 million in H2.

With its strong rental growth prospects, Helsinki office yields continued to decrease, with the prime yield settling at 3.50% at the end of H2 2018, placing it on par with Stockholm and ahead of Oslo and Copenhagen. With ever intensifying investor competition for premium office assets, many investors who have traditionally been looking only at Core products, have begun to show notable interest towards Core+ properties that offer attractive returns in comparison.

Trends and Market Outlook • Office rental market is expected to continue with an active spirit, driven by highly competitive labour market and strong economic fundamentals which are generating a need to upgrade premises and secure room for growth • High demand, diminishing supply of space and opportunistic asking rents in CBD will push demand to neighbouring areas where more rental growth is expected • Market polarization continues, take-up is strong in higher quality targets at key locations • Secondary targets in and near the edges of hot spots have a stronger position than high quality targets in inferior locations that fail to meet the following criteria: great level of public transportation connections, broad nearby services, area image that sends positive impression in the context of employees, customers and business partners • Occupiers continue being wary of contract lengths that exceed 5 years, landlords that can offer flexibility have a clear competitive edge

Helsinki Retail Market

Retail market is becoming more challenging Continuing consumption growth, as well as continuing high consumer and business confidence, support a growing retail market. However, retail market growth is now past its peak, and the high supply of retail space in HMA combined with changing consumer habits presents a challenge to traditional brick-and-mortar retail. Success in the highly competitive market requires increasingly active development to stay relevant.

Rental market Retail market revenue in Finland grew 2.7-2.9% in 2018, with growth expected to slow down to 2% in 2019 and 1.5% in 2020. Similarly, consumer and retailer confidence have both come down from their record high levels.

Helsinki is the main growth region in Finland, with population expected to grow at roughly 1% annually for the next 10 years. Whereas there is agreement that the strong population growth necessitates new retail supply, there is concern that the increase in HMA shopping centre premises is “front-heavy”. The market follows with interest as shopping centre Tripla in Pasila and Ainoa expansion in Tapiola are set to open in autumn 2019, increasing supply by 85,000 sq m and 20,000 sq m respectively, and gaining their share of the market, putting pressure to existing centres.

Also new concepts are emerging, with Helsinki Outlet village (15,000 sq m) planned to open late 2019, introducing a new type of retail to HMA.

At the same time online retail continues to grow at more than 10% annually, having already reached a market share of 10-12% in 2018. Online retail has captured most of the retail sector’s growth in the past 10 years and is expected to do so in the future as well. The best shopping centres will embrace experiential offers and online-savvy retailers, turning the trend into a strength. Also, a stronger focus on leisure, food and beverage, and entertainment, i.e. categories which are not as affected by online sales as traditional retail, is a clear trend in the shopping centre sector.

When it comes to take-up, vacancies in prime locations remain low, but retailers are cautious towards expansion, particularly to secondary locations, thereby focusing on safe bets in proven locations. Especially fashion retailers are cautious, as they have felt the impact of e-commerce to a much greater degree than retailers in other categories.

With retail growth slowing and new supply entering the market, rental growth remains stagnant across the line. However, the development is highly polarised: prime locations continue to command high and stable rents, whereas secondary locations have been met with either increasing vacancies or decreasing rental income.

Investment Market

The retail property investment market shows evidence of polarisation. On the one hand, investors have become cautious about retail due to the increasing competition brought on by the rise of online retail and large new development schemes in the HMA. In this regard, some investors are taking a “wait and see” approach to let the market find a new balance prior to placing their bets. On the other hand, many investors continue to have keen interest and appetite for high street properties, grocery store assets and grocery-anchored local centres, which they regard as both defensive and resilient to the increased competition and changes in consumer behaviour.

The largest single-asset deal of 2018 was Morgan Stanley’s acquisition of the ITIS shopping centre in Helsinki from Wereldhave. This is the first super-regional shopping centre transaction since 2014. The centre was sold for a gross price of €516 million, some 8.5% below book value. The net sales proceeds for the seller were €450 million. The difference is due to deferred tax liabilities and ongoing investments that the seller assumed responsibility for.

Other major retail transactions of H2 2018 were two grocery store portfolios and the Finnish property investor VVT’s acquisition of Martinlaakso local centre in Vantaa.

Market polarisation is reflected in the yield development of retail property investments. The yield estimate for retail warehouse parks remains stable due to continued investor interest and the prime yield for high street assets has compressed to 3.60% fuelled by the robust demand. However, the yield estimate for shopping centres is estimated to have increased by 25 basis points to 4.75% in H2 2018 due to increased caution by investors in this segment.

Trends and Market Outlook

• Effects of online retail growth will become even more visible in 2019 • All shopping centres face pressure to redesign concept and tenant mix. Successes are possible but hard won • Central locations in traffic hubs are becoming critical for success, however location alone is no guarantee for success • Fashion space allocation will be decreasing across the line • F&B space allocation continues increasing across the line • New uses entering shopping centres, such as coworking and entertainment

Finland Logistics Market

Headline During the second half of 2018 the logistics market stayed largely at status quo, with no obvious changes to underlying market dynamics. Overall market sentiment remained positive, especially due to continued investor interest in sector.

Rental Market For occupiers the three major trends continued to guide the market: modern space with high clear heights and good location is appreciated, while inferior locations and outdated premises are dealing with growing vacancy due to lack of interest. Also the generally more agile operating/business environment is seen as shortening lease-agreements, with break options favoured by tenants. Typical demand is highly dependent of the tenants type of operation, but medium sized (1,000 to 3,000 sq. m.) premises in the vicinity of urban area are much wanted, though the offering of such premises remains thin. Locations in the crossroads of Ring Road III and major highways, extending along the highways away from the city are favoured by tenants; this is also seen in the concentration of recent logistics developments to these areas.

The H2 2018 saw unforeseen amount of logistics space completing in the Helsinki Region with the recorded 272,000 sq. m. being more than 2.5 times the three-year average of 99,300 sq.m per half- year. Nearly all of the schemes completed were built-to-suit solutions, with speculative developments largely absent from the market. Two most important projects completed were the DSV's new HQ and logistics center in Vantaa (60,000 sq. m. of logistics space) and opening of Lidl's distribution warehouse in Järvenpää (62,000 sq. m.). The H2 2018 also saw the SOK's massive 195,000 sq. m. distribution center and warehouse of daily goods and groceries in Sipoo come to conclusion, with two last units completing (approx. 25,000 sq. m. each). The total pipeline of 117,000 sq. m. currently under construction and expected to complete during 2019-2020 remains subpar to the average of 2016- 2018, which further strengthens the view that developers are still refraining from starting speculative projects in the current market.

During the period, the take-up and rental development have largely been unchanged from the previous, with the prime net rent at €8.0 / sq. m. / month and occupier interest staying stable. Also, the incentives have not seen marked changes. Investment Market Prime logistics properties are gaining increasing popularity among domestic and international investors. The most important megatrends behind this development is the rise of online retail and increased global capital flows into real estate. The most sought-after logistics properties tick three important boxes: they are pure logistics properties built to modern specification, aptly located, and with an investment volume above €20 million. Asian investors, relatively new to the Finnish real estate investment market, find logistics properties especially attractive because they offer on average higher returns and longer maturities than for example office properties. Investors are still quite selective about their preferred logistics investments and the yield spread between prime and secondary assets remains on a healthy level.

Despite the very strong investor demand, logistics investment volumes have remained moderate through the latter half of 2018 due to the lack of supply of suitable product. The overall transaction volume of industrial properties was approximately €520 million, of which 65% was formed in the Helsinki Metropolitan Area. Most notably there were two large singe-asset deals: Savills Investment Managers’ acquisition of a logistics complex in Vantaa which was upon completion leased to DSV, and DWS’s acquisition of DHL’s distribution centre near Helsinki airport, in Vantaa.

Prime logistics yield has tightened significantly during 2018, having decreased 75 basis points year-on- year to 5.00% in Q4 2018. Since the beginning of 2016, the Helsinki logistics market has seen the fastest yield compression of all the Nordic capitals (150 basis points).

Trends and Market Outlook

• Market polarization between outdated and ill-located versus modern, high-quality stock with good location is as evident as ever. • Outdated and obsolete stock faces challenges, and conversions / development of plots to other uses are to be expected in the coming years. • In the current market situation, there is no speculative development and this is not likely to change. • While rental outlook is expected to remain flat, increased investor interest is expected to continue. • Growing e-commerce and more environmentally aware distribution systems hold the potential to change the market dynamics. For example, restrictions of access to the city centre for heavy transport forces operators to re-think the whole distribution system, creating smaller distribution hubs inside the urban area.

Investment market in Finland

Headline

Strong investor demand continued in H2 2018, characterised by several large transactions and unprecedented share of cross-border activity

Investment market

2018 proved to be yet another strong year for the Finnish real estate investment market. With the total transaction volume amounting to €4.5 billion during H2 2018, the general market sentiment has remained high with several high-profile transactions during the second half of the year. For the full year of 2018 the transaction volume amounted to €7.6 billion (excl. residential).

The latter half of 2018 was marked by an unusual amount of large deals – 10 transactions in excess of €100 million formed two thirds of the total transaction volume. The dominant sectors continue to be retail and office properties – the largest single asset deal was Morgan Stanley’s acquisition of ITIS shopping centre from Wereldhave, whilst there were altogether three single asset office deals in excess of €100 million.

Interest from cross-border investors continues at a robust level and the latter half of 2018 saw the introduction of a couple of new international players to the Finnish real estate investment market. Most notably, Kildare Partners purchased over 90% of Technopolis’ shares. BlackRock Real Assets continued increasing its presence in the Nordics by making its market entry to Finland by acquiring two office properties in Helsinki. Origa Care AB, a Pareto Securities company, entered the market by acquiring a care home portfolio of 13 properties from Titanium Care Real Estate. Many cross-border investors increased their presence in the Finnish market – for example Corpus Sireo, acting on behalf of Swiss Life Asset Managers, made its second acquisition on the Helsinki office market by acquiring the newly developed prime office property Fredriksberg in Vallila.

Domestic investors have remained active in all sectors ranging from HMA office properties to smaller acquisitions in second and third tier locations. Some cross-border investors have already begun expanding their operations beyond the Helsinki Metropolitan Area, such as Hemsö acquiring a €130 million care home and healthcare portfolio from the City of Turku.

Prime yields levelled out or slightly decreasing except for shopping centres.

Stock prices

Listed Finnish real estate companies have been trading at a discount to net asset value, which combined with the all-time low yields creates attractive opportunities for buyers. The second half of 2018 saw the beginning one major delisting as Kildare Partners acquired more than 90% of the shares of the Finnish real estate company Technopolis. Similarly to Blackstone’s acquisition of Sponda in 2017, Kildare Partners was able to pay a hefty premium for the shares because they were already trading at a notable discount to NAV.

Trends and Market Outlook

• Office yields at an all-time low with limited opportunity for further compression • Strong economic fundamentals and good availability of properties for sale continue to attract notable cross-border interest. Cross-border transactions form over 80% of the overall volume in H2 2018. • Investors already present on the market focus on Core+ properties in search of better returns supported by robust market fundamentals • Unsurpassed demand for high street and city centre retail properties where as some investors have adapted a “wait and see” approach regarding shopping centres in anticipation of new supply coming to market and the impact of online retail • High demand for logistic and hotel properties but very limited availability

Market Commentary

Economic Background

The accelerated growth of the global economy has also reflected to the Finnish economy. According to Statistics Finland, the volume of GDP of Finland grew by 3.0% in 2017 when in 2016 the growth was 1.9%. According to Finland's Ministry of Finance the current forecasts for GDP growth in 2018 is approximately 3.0% and for the following years slightly less: 1.7% for the year 2019 and 1.6% for the year 2020. The current growth is explained mainly with increasing exports and domestic demand as private consumption, supported by improved employment, has developed in a favourable way. Finland GDP

-2

-4 GDP GDP growth (% p.a.) -6

-8

-10 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Finland Eurozone Source: Oxford Economics Finland forecast Eurozone forecast 10 / 2018

GDP Growth in Finland.

The Finnish labour market continues to show positive signs. The unemployment rate has decreased for several years and even long-term unemployment started to improve last year after having increased almost continuously since 2009. According to Statistics Finland’s Labour Force Survey, unemployment rate stood at 6.8% in August 2018, having been 7.5% a year earlier. Employment rate, i.e. the proportion of the employed among people aged 15 to 64, stood at 72.6%, being 2.1 percentage points higher compared with the situation a year before. The trend of the employment rate, when adjusted for seasonal and random variation, was 71.8%.

Unemployment

Unemployment Unemployment rate % 4

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Finland Eurozone Source: Oxford Economics 10 / 2018 Finland forecast Eurozone forecast

Unemployment rate forecast in Finland.

According to Statistics Finland, the year-on-year change in consumer prices was 1.3% in September, following the inflation of 1.3% in August. In September, consumer prices were raised most by increases in the prices of petrol, cigarettes, capital repairs on detached house and electricity from one year ago. The rising of consumer prices from one year back was curbed most by reductions in the prices of children’s day care, mobile telephones, real estates and refundable prescription medicines. According to Finland's Ministry of Finance the inflation is going to accelerate during next few years by some. The inflation rate is forecasted to be around 1.1% in 2018, 1.4% in 2019 and 1.6% in 2020, which are all still below the medium term inflation target of European Central Bank. Investment Market

The European investment landscape has seen many shifts over the last few years, with ever increasing flows of global capital and a transformation in debt markets. In the second quarter of 2018 the real estate markets in Europe have maintained their strong performance with volumes rising by 11% to US$67.5 billion. In spite of continued uncertainty around Brexit in the UK and signs of political tensions in Germany, the activity in the first half of 2018 was also up by 9% to US$128.1 billion, the highest half-year volumes recorded in the current cycle, as the region’s core markets continue to drive growth. Second quarter volumes were higher than 2017 levels in the UK (21%), Germany (30%) and France (114%) and, combined with the positive start to the year, H1 activity is up by 19%, 23% and 60% respectively across the region’s three biggest markets. Across the rest of the region, Q2 investment performance was mixed as the Benelux countries (-25% year-on-year), the Nordics (-17%) and Southern Europe (-28%) all saw dips which led to softer H1 volumes compared to last year. CEE, on the other hand, overcame a 22% decline in Q2 investment levels, thanks to a very strong first quarter, enabling it to post positive investment growth for the first half.

With several large transactions in 2017, the transaction volumes in Finland reached new record of €9 billion. The transaction volume in H1 2018 was around €3.2 billion and the most significant transaction was the purchase of KPMG HQ by Deka Immobilien for €190 million, benchmarking the largest ever single office transaction in Finland. Another notable deal in H1 2018 was the disposal of Northern Horizon’s 30-asset care home portfolio to a fund managed by Evli for €140.8 million. The transaction volume in Q3 2018 reached around €1.2 billion. One of the most significant transactions during Q3 was the purchase of a 27,500-sq. m office development in Kalasatama by Union Investment Real Estate. After it’s estimated completion in spring 2020 the property will be let to the city of Helsinki with long lease maturity.Transactions The sale price wasin Finland €165 million .

mEUR

10,000

9,000

8,000

7,000

6,000 Cross- border 5,000 Domestic

4,000

3,000

2,000

1,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 - Q3 Source: JLL 10 / 2018

Direct commercial property investment volume in Finland.

Global property markets have held their positive course in 2018 as transactional volumes in the second quarter rose by 10% year-on-year to US$173 billion. This brings first half activity to US$341 billion, a 13% increase from H1 2017 and the strongest first-half performance since 2007. Investor demand remains robust with a growing number of groups increasing their allocations to real estate thanks to its defensive qualities, steady income stream and relative performance compared to other asset classes. Shifting demographic and technological trends are driving appetite for scale, especially in the logistics and alternatives sectors. Given this, we project global investment in commercial real estate over the full year to broadly match 2017 levels at around US$715 billion, despite the supply of product coming to market remaining limited relative to previous years. Demand for core assets remains strong, as equity rich investors keep looking for safe havens. However, demand outside of core has also increased clearly as the limited supply of prime assets as well as increased risk appetite has moved the focus from prime towards the best properties in secondary locations and secondary properties in

COPYRIGHT © JONES LANG LASALLE IP, INC. 2019. All Rights Reserved 3 prime locations. This has been evident also in Finland where the development has been mainly driven by new funds and return of international investors. At the same time, the characteristics of the investment opportunity are still thoroughly analysed and reflected to pricing. Prime yields continued to move in during 2017 and during 2018 the trend has been slightly slowing down. In near future yields are expected to stabilise close to their current levels. As a result of increasing investment demand, also yields of other than prime properties have moved in.

Prime yields in Helsinki

8.00

7.50

7.00

6.50

6.00

5.50 Prime Prime yield % 5.00

4.50

4.00

3.50 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3

Office Warehouse & Logistics Retail Warehouse Park Shopping centre Source: JLL 10 / 2018 Unit shops

Prime yields in Helsinki.

Appendices

Appendix E Letter of Engagement

Appendices

Appendix F Terms & Conditions General Principals Definition of Market Value

1. AGREEMENT “processing” shall have the meaning set out in the GDPR, and references to “personal data” shall in addition mean personal 1.1. These Terms together with any Engagement set out data related to the Agreement. the terms on which JLL will provide the Services to the Client. Each of the provisions provided in the Agreement are “Insolvent” means in relation to: severable and distinct from the others. (a) a company (including any body corporate), that it: 1.2. The Engagement shall prevail to the extent of any conflict between the Terms, and the Engagement. The (i) is unable to pay its debts as they fall due; Agreement supersedes any previous arrangement concerning (ii) becomes or is deemed insolvent; its subject matter. Unless the Parties agree otherwise, these Terms shall apply to any future instructions from the Client, (iii) has a notice of intention to appoint an administrator although such instructions may be subject to a separate filed at Court in respect of it, has an administrator appointed Engagement. over, or has an administration order in relation to it, or has appointed a receiver or an administrative receiver over, or an 2. INTERPRETATION encumbrancer takes possession of or sells the whole or part The following definitions and rules of interpretation apply in of its undertaking, assets, rights or revenue; these Terms: (iv) passes a resolution for its winding up or a court of 2.1. Definitions competent jurisdiction makes an order for it to be wound up or dissolved or it is otherwise dissolved (other than a “Affiliates” includes in relation to either Party each and any voluntary winding up solely for the purpose of a solvent subsidiary or holding company of that Party and each and any amalgamation or reconstruction); or subsidiary of a holding company of that Party and any business entity from time to time controlling, controlled by, or (v) enters into an arrangement, compromise or under common control with, either Party, and “holding composition in satisfaction of its debts with its creditors or company” means a holding company as defined in section any class of them or takes steps to obtain a moratorium or 1159 of the Companies Act 2006 or a parent undertaking as making an application to a court of competent jurisdiction for defined in section 1162 and schedule 7 of the Companies Act protection of its creditors; 2006, and “subsidiary” means a subsidiary as defined in (b) a partnership, that it is dissolved by reason of the section 1159 of the Companies Act 2006 or a subsidiary bankruptcy of one or more of its partners; undertaking as defined in section 1162 and schedule 7 of the Companies Act 2006; (c) an individual, that he is bankrupt; and

“Agreement” means any Engagement and these Terms (d) a Party based outside England and Wales, that it is together; considered insolvent by the laws applicable to that Party; “Client” means the Party who enters into the Agreement with JLL; “JLL” means Jones Lang LaSalle Limited of 30 Warwick Street London W1B 5NH registered in England with company “Data Protection Legislation” shall mean GDPR and any number 01188567 and/or any Affiliate of JLL that provides the national implementing laws, regulations and secondary Services to the Client; legislation in force in England from time to time. “Materials” means all materials, equipment, documents and “Engagement” means the agreement, letter of engagement or other property of JLL made available to the Client by JLL in engagement agreement or email and any carrying out the Services schedules/appendices sent to the Client by JLL (or agreed in writing) which sets out details of the Services to be provided “Party” means either the Client or JLL (as the context requires) to the Client pursuant to the Agreement; and “Parties” shall mean both of them;

“GDPR” means the General Data Protection Regulation ((EU) “Services” means the Services set out in the Engagement or as 2016/679) effective from 25 May 2018 and in this Agreement: otherwise agreed in writing between the Parties; “controller”, “processor”, “data subject”, “personal data”, “personal data breach”, “supervisory authority”, and “Terms” means these terms and conditions.

1 General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 2.2. Unless the context otherwise requires, words in the responsible for any failure to meet performance dates due to singular shall include the plural and in the plural shall include causes outside its reasonable control and time shall not be of the singular. the essence for performance of the Services.

2.3. A reference to a statute or statutory provision is a 3.5. JLL shall have the right to make any changes to the reference to it as it is in force as at the date of the Agreement Services which are necessary to comply with any applicable and shall include all subordinate legislation made as at the law, regulation, safety requirement, or which do not date of the Agreement under that statute or statutory materially affect the nature or quality of the Services and JLL provision. shall notify the Client in any such event.

2.4. A reference to writing or written unless otherwise 3.6. Without prejudice to clause 9.2(b), if JLL becomes specified herein includes email. aware of a conflict of interest, it shall advise the Client and take reasonable steps to recommend a course of action. 2.5. Any words following the terms including, include, in particular or any similar expression shall be construed as 4. CLIENT OBLIGATIONS illustrative and shall not limit the sense of the words preceding those terms. 4.1. The Client shall:

2.6. Headings are for convenience only and do not affect a) notify JLL promptly if it considers that any details or the interpretation of this Agreement. requirements set out in the Engagement are incomplete or inaccurate; 3. SERVICES b) co-operate with JLL in all matters relating to the 3.1. JLL shall provide the Services using reasonable care Services; and skill. c) provide JLL, its employees, agents, consultants and 3.2. JLL has no obligation to provide any services other subcontractors, with access to the relevant property than the Services and has no obligation to provide nor any as reasonably required by JLL to provide the liability for: Services; and a) an opinion on the price of a property (unless d) obtain and maintain all necessary licences, specifically agreed in writing); permissions and consents which may be required by the Client before the date on which the Services are b) any advice regarding the condition of a property to start. (unless specifically agreed in writing); 4.2 The Client shall promptly provide JLL with such c) the security or management of a property unless information and materials as it may reasonably require in specifically instructed to arrange it; order to supply the Services and warrants that: d) the safety of any third party entering any premises; a) such information is complete and accurate and was or obtained and drafted in accordance with all applicable laws; e) the management or payment of any third party suppliers. b) it shall ensure that where the information and material includes representations or descriptions of 3.3. Where the Parties have agreed that JLL shall carry a property, that such information and material out estate agency business, JLL shall (i) report in writing all contains no misrepresentation or false impression; offers it receives regarding the relevant property; and (ii) comply with its obligations under the Estate Agents Act 1979 c) where the Client will advertise a property under and regulations made under that Act together with any other JLL’s logo, that such advertisement (including its similar laws and regulations. content and context in which it will appear) is approved in writing by JLL prior to its publication; 3.4. Where agreed in writing JLL shall use reasonable and endeavours to meet any performance dates. JLL shall not be

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 2 c) it shall immediately notify JLL on becoming aware the due date until actual payment of the overdue amount, of any changes or issues that may render inaccurate whether before or after judgment. The Client shall pay the any information or material provided to JLL. interest together with the overdue amount.

4.3. In the event of any act or omission by the Client in 5.5. If termination of the Agreement takes place prior to breach of the Agreement or failure by the Client to perform the Services being completed, JLL shall, without limitation to any relevant obligation (Client Default): its other rights and remedies under this Agreement or at law, be entitled to receive from the Client a reasonable fee a) JLL shall without limiting its other rights or remedies proportionate to the part of the Services performed to the have the right to suspend performance of the date of termination. Services until the Client remedies the Client Default, and to rely on the Client to relieve it from the 5.6 If the Client has agreed to engage JLL as its sole performance of any of its obligations to the extent agent for the acquisition of an interest in a property, the Client the Client Default prevents or delays JLL’s shall be liable for payment of JLL’s fees and expenses where performance of any of its obligations; and an Affiliate of the Client or an individual with a majority stake in the Client completes the relevant acquisition. b) JLL shall not be liable for any costs or losses sustained or incurred by the Client arising directly or 6. INTELLECTUAL PROPERTY RIGHTS indirectly from the Client Default. 6.1. All intellectual property rights in or arising out of or 4.4. The Client is responsible for effecting and in connection with the Services including the intellectual maintaining adequate property and public liability insurance property rights in Materials shall be owned by JLL unless in relation to its activities and any relevant properties owned otherwise expressly agreed in writing. For this purpose or occupied by it and shall be responsible for the safety of any “intellectual property rights” means patents, utility models, person entering the relevant property. rights to inventions, copyright and related rights, trademarks and service marks, trade names and domain names, rights in 5. PAYMENTS get-up, goodwill and the right to sue for passing off or unfair competition, rights in designs, rights in computer software, 5.1. Whenever possible, the fees and expenses (if known) database rights, rights to preserve the confidentiality of for the Services shall be as set out in the Engagement. Where information (including know-how and trade secrets) and any fees and expenses for the Services are not specified in writing, other intellectual property rights, including all applications JLL shall be entitled to the fee specified by the Royal for (and rights to apply for and be granted), renewals or Institution of Chartered Surveyors (RICS) or if there is none extensions of, and rights to claim priority from, such rights specified, by any other applicable professional body chosen and all similar or equivalent rights or forms of protection by JLL (acting reasonably) or, if none is specified, a fair and which subsist or will subsist, now or in the future, in any part reasonable fee by reference to time spent undertaking the of the world. Services; and reimbursement of any expenses properly incurred by JLL on the Client’s behalf. 6.2. The Client shall have an irrevocable, royalty-free, non-exclusive licence to use the Materials for the purposes for 5.2. All amounts payable by the Client under the which they are prepared by JLL, subject to JLL having received Agreement are exclusive of value added tax (VAT) or similar full payment for the Services in accordance with this taxes which the Client shall pay at the applicable rate. Agreement. Such licence shall be capable of sub-licence by 5.3. In consideration of the provision of the Services, the the Client to its employees, agents and subcontractors and Client shall pay each invoice submitted by JLL in accordance shall survive termination. No third party has any right to use with the Agreement within 28 days from the date of invoice. any such Materials without JLL’s specific consent. . JLL shall not be liable for the use of any Material for any purpose other 5.4. If the Client fails to make any payment due to JLL than that for which JLL provided it to the Client. under the Agreement by the due date for payment, then JLL reserves the right to charge late payment interest after the 6.3 Nothing in this clause 6 shall affect the Client’s due date on the overdue amount at the rate of 4% per cent per intellectual property rights that pre-exist the Services. The annum above the Bank of England's official bank rate from Client shall grant to JLL an irrevocable, royalty-free, non- time to time. Such interest shall accrue on a daily basis from exclusive, sub-licensable licence to use such pre-existing

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 3 intellectual property rights for the purpose of carrying out the where that information or material provided is Services. inaccurate or incomplete;

7. CONFIDENTIALITY b) to the extent that the Client or someone on the Client’s behalf for whom JLL is not responsible is A Party (receiving party) shall keep in strict confidence all responsible, and where JLL is one of the parties technical or commercial know-how, processes or initiatives liable in conjunction with others, JLL’s liability shall which are of a confidential nature and have been disclosed to be limited to the share of loss reasonably the receiving party by the other Party (disclosing party), its attributable to JLL on the assumption that all other employees, agents or subcontractors, and any other parties pay the share of loss attributable to them confidential information concerning the disclosing party's (whether or not they do); or business, its products and services which the receiving party may obtain. The receiving party shall only disclose such c) due to any failure by the Client or any representative confidential information to those of its employees, agents and or agent of the Client to follow JLL’s advice or subcontractors who need to know it for the purpose of recommendations. discharging the receiving party's obligations under the Agreement, and shall ensure that such employees, agents and 8.3. JLL owes no duty of care and has no liability to subcontractors comply with the obligations set out in this anyone but the Client unless specifically agreed in writing by clause as though they were a party to the Agreement. The JLL. receiving party may also disclose such of the disclosing party's 9. TERMINATION confidential information as is required to be disclosed by law, any governmental or regulatory authority or by a court of 9.1. Without limiting its other rights or remedies, either competent jurisdiction, or with the consent of the disclosing Party may terminate the Agreement by giving the other Party party. 28 days’ written notice.

8. LIABILITY 9.2. Without limiting its other rights or remedies, either Party may terminate the Agreement with immediate effect by 8.1. Save in respect of JLL’s liability for death or personal giving written notice to the other Party if: injury caused by its negligence, or the negligence of its employees, agents or subcontractors or for fraud or a) the other Party commits a material breach of the fraudulent misrepresentation (which is not excluded or Agreement and (if such a breach is remediable) fails limited in any way): to remedy that breach within 14 days of that Party being notified in writing to do so; a) JLL shall under no circumstances whatsoever be liable, whether in contract, tort (including b) a conflict of interest arises which prevents JLL negligence), breach of statutory duty, or otherwise, continuing to act for the Client; or for any loss of profit, loss of revenue or loss of anticipated savings, or for any indirect, special or c) the other Party becomes Insolvent. consequential loss arising out of or in connection with the Agreement and/or the Services; and 9.3. Without limiting its other rights or remedies, JLL may suspend provision of the Services under the Agreement b) JLL’s total liability in respect of all losses arising out or any other contract between the Client and JLL if the Client of or in connection with the Agreement and/or the becomes Insolvent, or JLL reasonably believes that the Client Services, whether in contract, tort (including is about to become Insolvent, or if the Client fails to pay any negligence), breach of statutory duty, or otherwise, amount due under the Agreement on the due date for shall not exceed £5 million. payment.

8.2. JLL shall have no liability for the consequences, 9.4. On termination of the Agreement for any reason: including delay in or failure to provide the Services: a) the Client shall immediately pay to JLL all of JLL's a) due to any failure by the Client or any representative outstanding unpaid invoices and interest and, in or agent of the Client to provide information or other respect of Services supplied but for which no invoice material that JLL reasonably requires promptly, or has been submitted and associated expenses, JLL

shall submit an invoice, which shall be payable by processor shall comply with Data Protection Legislation as it the Client immediately on receipt; relates to data processors. Nothing within this Agreement relieves either party of its own direct responsibilities and b) the Client shall return any Materials which have not liabilities under Data Protection Legislation. been fully paid for. Until they have been returned, the Client shall be solely responsible for their safe 10.3 JLL shall not process personal data other than on keeping and will not use them for any purpose not the documented instructions of the Client, unless it is required connected with the Agreement. Where all fees have to process the personal data by any law to which it is subject. been paid the Client shall be entitled to retain such In such a case JLL shall inform the Client of that legal Materials and they shall be licensed in accordance requirement before complying with it, unless that law with clause 6.2; prohibits JLL from doing so. c) JLL may, to comply with legal, regulatory or 10.4 JLL shall ensure that it and any third party with professional requirements, keep one copy of all access to the personal data has appropriate technical and material it then has that was supplied by or on organisational security measures in place, to guard against behalf of the Client in relation to the Services; the unauthorised or unlawful processing of personal data and against the accidental or unlawful destruction, loss, d) the accrued rights, remedies, obligations and alteration, unauthorised disclosure of, or access to, the liabilities of the Parties as at expiry or termination personal data. On request in writing, JLL shall provide to the shall be unaffected, including the right to claim Client a general description of the security measures it has damages in respect of any breach of the Agreement adopted. which existed at or before the date of termination or expiry; and 10.5 JLL shall take reasonable steps to ensure any person that has access to personal data is made aware of their e) clauses which expressly or by implication survive responsibilities, and subject to enforceable duties of termination shall continue in full force and effect. confidentiality.

9.5. JLL may destroy any papers it has after six years 10.6 JLL shall notify the Client without undue delay if it: from the earlier of completion of the Services or termination of the Agreement. 10.6.1 receives a request from an individual for subject access, or a request relating to any of the other individuals’ 10. DATA PROTECTION rights available under the Data Protection Legislation, in respect of personal data; 10.1. JLL (including third parties as described in our Privacy Statement available at www.jll.co.uk) may process in 10.6.2 receives any enquiry or complaint from a data hard copy and/or in electronic form, personal data regarding subject, supervisory authority or third party regarding the the Client, its officers and any other individuals connected processing of the personal data; with the Client (‘Client Contacts’). It may also verify the identity of Client Contacts including carrying out checks with 10.6.3 becomes aware of a personal data breach affecting third parties such as financial probity, anti-money laundering personal data, unless the breach is unlikely to result in a risk or sanctions-checking agencies. To facilitate compliance with to the rights and freedoms of data subjects. money laundering regulations and avoid duplication of due diligence, the Client acknowledges that JLL may share Client 10.7 JLL shall assist and provide all information Contacts’ personal data with such third party agencies and reasonably requested in writing by the Client in relation to JLL Affiliates. data protection impact assessments or ‘prior consultation’ with supervisory authorities, or matters under clause 10.6. 10.2 Unless the Agreement and factual arrangements dictate otherwise, as between the parties for the purposes of 10.8 JLL shall maintain all the records and information the Agreement, the Client is deemed to be the controller and necessary to demonstrate its compliance with the JLL is deemed to be the processor. The Client will ensure that requirements set out in this clause 10. any transfer of personal data to JLL (and any sub-processors 10.9 JLL shall allow the Client (or its appointed auditor) under clause 10.11) complies with Data Protection to audit JLL’s compliance with this clause 10. The Client Legislation. In providing the Services, JLL in its role as agrees to give reasonable notice of any audit, to undertake

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 5 any audit during normal business hours, to take steps to have the right to terminate the Agreement immediately by minimise disruption to JLL’s business, and not exercise this giving written notice to the Party. right of audit more than once every year unless instructed otherwise by a supervisory authority. 11.3. This clause does not apply to the payment of fees due to JLL by the Client. 10.10 JLL shall upon receipt of a written request from the Client delete or return all the personal data at the end of the 12. GENERAL provision of the Services. JLL may retain copies of the 12.1. Subcontracting. JLL may subcontract or deal in any personal data in accordance with any legal or regulatory other manner with all or any of its rights or obligations under requirements, or any guidance that has been issued in the Agreement to any third party or agent provided that: relation to deletion or retention by a supervisory authority. (i) where JLL subcontracts or delegates its obligations 10.11 JLL shall only engage a sub-processor where: at the specific request of the Client, JLL shall have no 10.11.1 the Client has agreed in writing to the engagement liability for the acts or omissions of the third party or of the sub-processor; or agent; and

10.11.2 the sub-processor is an Affiliate of JLL or a service (ii) otherwise, JLL shall remain liable for the acts or provider engaged by JLL to support the infrastructure and omissions of the third party or agent, unless the administration of its business (with details maintained at Client agrees to rely only on the third party or agent, http://www.jll.co.uk/sub-processors). such agreement not to be unreasonably withheld.

10.12 JLL shall ensure that any arrangements between JLL 12.2. Notices. a) Any notice or other and a sub-processor are governed by a written contract communication, including the service of any including terms which offer at least the same level of proceedings or other documents in any legal action protection for personal data as those set out in this clause. given to a Party under or in connection with the Where JLL intends to engage a new sub-processor under Agreement shall be in writing, addressed to that 10.11.2 and the Client objects, then Client may choose to Party at its registered office (if it is a company) or its terminate the Services in accordance with clause 9. principal place of business (in any other case) or such other address as that Party may have specified 10.13 In accordance with clause 12.1, JLL shall remain to the other Party in writing in accordance with this liable for the acts and omissions of its sub-processors. clause, and shall be delivered personally or sent by pre-paid first class post or commercial courier. Any 10.14 JLL shall only transfer personal data outside the notice or other communication sent to a Party European Economic Area where it has ensured the transfer located in a different country to the sending Party complies with Data Protection Legislation. must be sent by commercial courier.

11. FORCE MAJEURE b) A notice or other communication shall be deemed to have been received: if delivered personally, when 11.1. Neither Party shall be liable to the other Party as a left at the address referred to in clause 12.2.a); if sent result of any delay or failure to perform its obligations under by pre-paid first class post at 9.00 am on the second the Agreement as a result of any event beyond the reasonable business day after posting; or if sent by commercial control of either Party including strikes, lock-outs or other courier, on the date and at the time that the industrial disputes (whether involving the workforce of JLL or courier's delivery receipt is signed. For this purpose any other party), failure of a utility service or transport a business day means a day (other than a Saturday network, act of god, war, riot, civil commotion, malicious or Sunday) on which banks are open for business in damage, compliance with any law or governmental order, London. rule, regulation or direction, accident, breakdown of plant or machinery, fire, flood, storm or default of suppliers or 12.3. Severance. a) If any provision or part-provision subcontractors. of the Agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the 11.2. If such an event prevents either Party from providing minimum extent necessary to make it valid, legal any of the Services for more than four weeks, the affected and enforceable. If such modification is not Party shall, without limiting their other rights or remedies,

possible, the relevant provision or part-provision 12.9. Directors. Some employees of JLL have the title of shall be deemed deleted. Any modification to or “director”. The Client acknowledges that this does not mean deletion of a provision or part-provision under this they hold the office of director for the purposes of the clause shall not affect the validity and enforceability Companies Act 2006. Rather, it means that they hold a senior of the rest of the Agreement. role as an employee. b) If any provision or part-provision of the Agreement 12.10. Complaints. JLL’s complaints procedure is available is invalid, illegal or unenforceable, the Parties shall on request. negotiate in good faith to amend such provision so that, as amended, it is legal, valid and enforceable, 12.11. Publicity. Neither Party may publicise or issue any and, to the greatest extent possible, achieves the specific information to the media about the Services or the intended commercial result of the original Agreement’s subject matter without the consent of the other. provision. 12.12. Criminal Activity. The Client acknowledges that to 12.4. Waiver. A waiver of any right under the Agreement or comply with law and professional rules on suspected criminal law is only effective if it is in writing and shall not be deemed activity JLL is required to check the identity of Clients. JLL is to be a waiver of any subsequent breach or default. No failure also required by law to report to the appropriate authorities or delay by a Party in exercising any right or remedy provided any knowledge or suspicion that a Client’s funds (or any funds under the Agreement or by law shall constitute a waiver of provided for or on behalf of a client) derive from the proceeds that or any other right or remedy, nor shall it prevent or of crime and may be unable to tell the Client that it has done restrict its further exercise of that or any other right or remedy. this. No single or partial exercise of such right or remedy shall 12.13. Regulated Activity. JLL is not permitted to carry out prevent or restrict the further exercise of that or any other any activity regulated by the Financial Services and Markets right or remedy. Act 2000 including the insurance of property, except through 12.5. No Partnership or Agency. Nothing in the Agreement an authorised person and in accordance with a separate is intended to, or shall be deemed to, establish any agreement. Unless JLL specifically agrees otherwise in partnership or joint venture between the Parties, nor writing, no communication by JLL is intended to be, or should constitute either Party the agent of the other for any purpose. be construed as, an invitation or inducement to any person to Neither Party shall have authority to act as agent for, or to engage in investment activity for the purposes of the Financial bind, the other Party in any way. Services and Markets Act 2000, or as the approval of any communication of any such invitation or inducement. 12.6. Third parties. Subject to clause 12.8, a person who is not a Party to the Agreement shall not have any rights to 12.14. Anti-bribery. Both parties shall comply with all enforce its terms unless specifically agreed in writing. applicable laws, statutes, regulations, relating to anti-bribery and anti-corruption including but not limited to the Bribery 12.7. Variation. Except as set out in these Terms, no Act 2010. variation of the Agreement, including the introduction of any additional terms and conditions, shall be effective unless it is 12.15. Governing Law. The Agreement and any disputes agreed in writing and signed by both parties. Unless otherwise arising from it (including non-contractual claims and expressly agreed, variation of these terms does not require the disputes) are governed by English Law. consent of any third party (whether any employee referred to 12.16. Jurisdiction. Each Party irrevocably agrees that the in clause 12.8 or otherwise). courts of England shall have exclusive jurisdiction over any 12.8. Protection of Employees. Save in respect of fraud or dispute or claim arising out of or in connection with this criminal conduct no employee of JLL or any Affiliate has any agreement or its subject matter or formation (including non- personal liability to the Client nor to anyone representing the contractual disputes or claims). Client. Neither the Client nor anyone representing the Client 12.17 Language. These Terms are provided in English and may make a claim or bring proceedings against an employee JLL will communicate with the Client in English. or former employee personally. Any such employee of JLL is entitled to enforce this provision pursuant to the Contracts 12.18. Survival. Clauses 5 to 9 shall survive termination of (Rights of Third Parties) Act 1999. the Agreement.

General Principles July 2017 V1.1

General Principles Adopted in the preparation of Valuations and Reports

These General Principles should be read in conjunction with JLL’s General Terms and Conditions of Business except insofar as this may be in conflict with other contractual arrangements.

1 RICS Valuation - Global Standards 2017 All work is carried out in accordance with the Professional Standards, Valuation Technical and Performance Standards and Valuation Applications contained in the RICS Valuation – Global Standards 2017 published by the Royal Institution of Chartered Surveyors and the RICS Valuation – Professional Standards UK January 2014 (revised April 2015) as applicable (“the RICS Red Book”), by valuers who conform to the requirements thereof. Our valuations may be subject to monitoring by the RICS. The valuations are undertaken by currently Registered RICS Valuers.

2 Valuation Basis: Our reports state the purpose of the valuation and, unless otherwise noted, the basis of valuation is as defined in “the RICS Red Book”. The full definition of the basis, which we have adopted, is either set out in our report or appended to these General Principles.

3 Assumptions and Special Assumptions: Where we make an ‘assumption’ or ‘special assumption’ in arriving at our valuations, we define these terms in accordance with “the RICS Red Book” as follows: Assumption: A supposition taken to be true. Special Assumption: An assumption that either assumes facts that differ from the actual facts existing at the valuation date, or that would not be made by a typical market participant in a transaction on the valuation date. We will not take steps to verify any assumptions.

4 Disposal Costs Taxation and Other Liabilities: No allowances are made for any expenses of realisation, or for taxation, which might arise in the event of a disposal. All property is considered as if free and clear of all mortgages or other charges, which may be secured thereon. However, we take into account purchaser’s costs in investment valuations in accordance with market conventions. No allowance is made for the possible impact of potential legislation which is under consideration. Valuations are prepared and expressed exclusive of VAT payments, unless otherwise stated.

5 Sources of Information: Where we have been provided with information by the client, or its agents, we assume that it is correct and complete and is up to date and can be relied upon. We assume that no information that has a material effect on our valuations has been withheld. In respect of valuations for loan security purposes, commissioned by a lending institution, we may also rely on information provided to us by the Borrower or its advisors. In such cases, we have similarly assumed that all information is correct, complete, up-to-date and can be relied upon and that no pertinent information has been withheld.

General Principles July 2017 V1.1

6 Title and Tenancy Information: We do not normally read leases or documents of title. We assume, unless informed to the contrary, that each property has a good and marketable title, that all documentation is satisfactorily drawn and that there are no encumbrances, restrictions, easements or other outgoings of an onerous nature, which would have a material effect on the value of the interest under consideration, nor material litigation pending. Where we have been provided with documentation we recommend that reliance should not be placed on our interpretation without verification by your lawyers. We have assumed that all information provided by the client, or its agents, is correct, up to date and can be relied upon.

7 Tenants: Although we reflect our general understanding of a tenant’s status in our valuations i.e. the market’s general perception of their creditworthiness, enquiries as to the financial standing of actual or prospective tenants are not normally made unless specifically requested. Where properties are valued with the benefit of lettings, it is therefore assumed, unless we are informed otherwise, that the tenants are capable of meeting their financial obligations under the lease and that there are no arrears of rent or undisclosed breaches of covenant.

8 Measurements/Floor Areas: All measurement is carried out in accordance with either the International Property Measurement Standards (IPMS) or the Code of Measuring Practice (6th Edition) issued by the Royal Institution of Chartered Surveyors, except where we specifically state that we have relied on another source. The areas adopted are purely for the purpose of assisting us in forming an opinion of capital value. They should not be relied upon for other purposes nor used by other parties without our written authorisation. Where floor areas have been provided to us, we have relied upon these and have assumed that they have been properly measured in accordance with the International Property Measurement Standards (IPMS) or the Code of Measuring Practice referred to above.

9 Site Areas: Site areas are generally calculated using proprietary digital mapping software and are based on the site boundaries indicated to us either at the time of our inspection, or on plans supplied to us. No responsibility is accepted if the wrong boundaries are indicated to us.

10 Estimated Rental Values: Our assessment of rental values is formed purely for the purposes of assisting in the formation of an opinion of capital value and is generally on the basis of Market Rent, as defined in “the RICS Red Book”. Where circumstances dictate that it is necessary to utilise a different rental value in our capital valuation, we will generally set out the reasons for this in our report. Such a figure does not necessarily represent the amount that might be agreed by negotiation, or determined by an Expert, Arbitrator or Court, at rent review or lease renewal or the figure that might be obtained if the property or unit were being let on the open market.

11 Town Planning, Acts of Parliament and Other Statutory Regulations: Information on town planning is, wherever possible, obtained either verbally from local planning authority officers or publicly available electronic or other sources. It is obtained purely to assist us in forming an opinion of capital value and should not be relied upon for other purposes. If reliance is required we recommend that verification be obtained from lawyers that: i the position is correctly stated in our report; ii the property is not adversely affected by any other decisions made, or conditions prescribed, by public authorities; and iii that there are no outstanding statutory notices.

General Principles July 2017 V1.1

Our valuations are prepared on the basis that the premises (and any works thereto) comply with all relevant statutory and EC regulations, including fire regulations, access and use by disabled persons, control and remedial measures for asbestos in the workplace, the Energy Performance of Buildings Directive and any applicable bye laws. All buildings are assumed to have Energy Performance Certificates. Our valuation does not take into account any rights, obligations or liabilities, whether prospective or accrued, under the Defective Premises Act 1972, or the Health and Safety at Work etc. Act 1974.

12 Structural Surveys: Unless expressly instructed, we do not carry out a structural survey, nor do we test the services and we, therefore, do not give any assurance that any property is free from defect. We seek to reflect in our valuations any readily apparent defects or items of disrepair, which we note during our inspection, or costs of repair which are brought to our attention. Otherwise, we assume that each building is structurally sound and that there are no structural, latent or other material defects. Unless stated otherwise in our reports we assume any tenants are fully responsible for the repair of their demise either directly or through a service charge.

13 Deleterious Materials: We do not normally carry out or commission investigations on site to ascertain whether any building was constructed or altered using deleterious materials or techniques (including, by way of example high alumina cement concrete, woodwool as permanent shuttering, calcium chloride or asbestos). Unless we are otherwise informed, our valuations are on the basis that no such materials or techniques have been used.

14 Site Conditions: We do not normally carry out or commission investigations on site in order to determine the suitability of ground conditions and services for the purposes for which they are, or are intended to be, put; nor do we undertake archaeological, ecological or environmental surveys. Unless we are otherwise informed, our valuations are on the basis that these aspects are satisfactory and that, where development is contemplated, no extraordinary expenses, delays or restrictions will be incurred during the construction period due to these matters.

15 Environmental Contamination: Unless expressly instructed, we do not carry out or commission site surveys or environmental assessments, or investigate historical records, to establish whether any land or premises are, or have been, contaminated. Therefore, unless advised to the contrary, our valuations are carried out on the basis that properties are not affected by environmental contamination. However, should our site inspection and further reasonable enquiries during the preparation of the valuation lead us to believe that the land is likely to be contaminated we will discuss our concerns with you.

16 Insurance: Unless expressly advised to the contrary we assume that appropriate cover is and will continue to be available on commercially acceptable terms. In particular, we will have regard to the following: Composite Panels Insurance cover, for buildings incorporating certain types of composite panel may only be available subject to limitation, for additional premium, or unavailable. Information as to the type of panel used is not normally available. Accordingly, our opinions of value make no allowance for the risk that insurance cover for any property may not be available, or may only be available on onerous terms. Terrorism Our valuations have been made on the basis that the properties are insured against risks of loss or damage including damage caused by acts of Terrorism as defined by the 2000 Terrorism Act. We have assumed that the insurer, with whom cover has been placed, is reinsured by the Government backed insurer, Pool Reinsurance Company Limited.

General Principles July 2017 V1.1

Flood and Rising Water Table Our valuations have been made on the assumption that the properties are insured against damage by flood and rising water table. Unless stated to the contrary our opinions of value make no allowance for the risk that insurance cover for any property may not be available, or may only be available on onerous terms.

17 Outstanding Debts: In the case of property where construction works are in hand, or have recently been completed, we do not normally make allowance for any liability already incurred, but not yet discharged, in respect of completed works, or obligations in favour of contractors, subcontractors or any members of the professional or design team.

18 Confidentiality and Third Party Liability: Our Valuations and Reports are confidential to the party to whom they are addressed and for the specific purpose to which they refer, and no responsibility whatsoever is accepted to any third parties. Neither the whole, nor any part, nor reference thereto, may be published in any document, statement or circular, or in any communication with third parties, without our prior written approval of the form and context in which it will appear.

19 Statement of Valuation Approach: We are required to make a statement of our valuation approach. In the absence of any particular statements in our report the following provides a generic summary of our approach. The majority of institutional portfolios comprise income producing properties. We usually value such properties adopting the investment approach where we apply a capitalisation rate, as a multiplier, against the current and, if any, reversionary income streams. Following market practice we construct our valuations adopting hardcore methodology where the reversions are generated from regular short term uplifts of market rent. We would normally apply a term and reversion approach where the next event is one which fundamentally changes the nature of the income or characteristics of the investment. Where there is an actual exposure or a risk thereto of irrecoverable costs, including those of achieving a letting, an allowance is reflected in the valuation. Vacant buildings, in addition to the above methodology, may also be valued and analysed on a comparison method with other capital value transactions where applicable. Where land is held for development we adopt the comparison method when there is good evidence, and/or the residual method, particularly on more complex and bespoke proposals. There are situations in valuations for accounts where we include in our valuation properties which are owner- occupied. These are valued on the basis of existing use value, thereby assuming the premises are vacant and will be required for the continuance of the existing business. Such valuations ignore any higher value that might exist from an alternative use.

20 Capital Expenditure Requirement: Where buildings are undergoing works, such as refurbishment or repairs, or where developments are in progress, we have relied upon cost information supplied to us by the client or their appointed specialist advisors.

21 Goodwill, Fixtures and Fittings: Unless otherwise stated our valuation excludes any additional value attributable to goodwill, or to fixtures and fittings which are only of value, in situ, to the present occupier.

22 Plant and Machinery: No allowance has been made for any plant, machinery or equipment unless it forms an integral part of the building and would normally be included in a sale of the building.

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23 Services: We do not normally carry out or commission investigations into the capacity or condition of services. Therefore we assume that the services, and any associated controls or software, are in working order and free from defect. We also assume that the services are of sufficient capacity to meet current and future needs.

24 Land and Building Apportionments: When instructed, we will provide apportionments between land and buildings for depreciation purposes only. Such apportionments are not valuations and should not be used for any other purpose unless specified in the report.

25 Portfolio Valuations: In respect of valuations of portfolios of properties, our overall valuation is an aggregate of the individual values of each individual property. The valuation assumes, therefore, that each property would be marketed as an individual property and not as part of a portfolio. Consequently no portfolio premium or discount has been reflected and any consequence of marketing a range of individual properties together has also not been reflected in our valuations. However, if adjoining or complimentary properties might achieve a higher value by being marketed together (known as “prudent lotting”), we have reported the higher value that would emerge.

26 Rating: Any information regarding rating has generally been obtained from the Valuation Office website. We will not investigate whether any rating assessment is a fair assessment or considered the likelihood of an appeal being successful.

27 Plans and Maps: All plans and maps included in our report are strictly for identification purposes only, and, whilst believed to be correct, are not guaranteed and must not form part of any contract. All are published under licence and may include mapping data from Ordnance Survey © Crown Copyright. All rights are reserved.

Market Value July 2017 V1.1

Market Value

Definition and Interpretive Commentary reproduced from the RICS Valuation – Global

Standards 2017, VPS 4 and IVS Framework

1.1 Market Value

1.1.1 The definition of Market Value as defined in IVS 104 paragraph 30.1 is:

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

1.1.2 Market value is a basis of value that is internationally recognised and has a long-established definition. It describes an exchange between parties that are unconnected and are operating freely in the marketplace and represents the figure that would appear in a hypothetical contract of sale, or equivalent legal document, at the valuation date, reflecting all those factors that would be taken into account in framing their bids by market participants at large and reflecting the highest and best use of the asset. The highest and best use of an asset is the use of an asset that maximises its productivity and that is possible, legally permissible and financially feasible – fuller treatment of this particular premise of value can be found at section 140 of IVS 104.

1.1.3 It ignores any price distortions caused by special value (an amount that reflects particular attributes of an asset that are only of value to a special purchaser) or marriage value. It represents the price that would most likely be achievable for an asset across a wide range of circumstances. Market rent applies similar criteria for estimating a recurring payment rather than a capital sum.

1.1.4 In applying market value, regard must also be had to the requirement that the valuation amount reflects the actual market state and circumstances as of the effective valuation date. The full conceptual framework for market value can be found at paragraph 30.2 of IVS 104.

1.1.5 Notwithstanding the disregard of special value, where the price offered by prospective buyers generally in the market would reflect an expectation of a change in the circumstances of the asset in the future, the impact of that expectation is reflected in market value. Examples of where the expectation of additional value being created or obtained in the future may have an impact on the market value include:

 the prospect of development where there is no current permission for that development and

 the prospect of marriage value arising from merger with another property or asset, or interests within the same property or asset, at a future date.

1.1.6 The impact on value arising by use of an assumption or special assumption should not be confused with the additional value that might be attributed to an asset by a special purchaser.

1.1.7 In some jurisdictions a basis of value described as ‘highest and best use’ is adopted and this may either be defined by statute or established by common practice in individual countries or states.

Market Value July 2017 V1.1

IVS Framework

30.2 The definition of Market Value shall be applied in accordance with the following conceptual framework:

(a) “the estimated amount” refers to a price expressed in terms of money payable for the asset in an arm’s length market transaction. Market Value is the most probable price reasonably obtainable in the market on the valuation date in keeping with the market value definition. It is the best price reasonably obtainable by the seller and the most advantageous price reasonably obtainable by the buyer. This estimate specifically excludes an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangements, special considerations or concessions granted by anyone associated with the sale, or any element of value available only to a specific owner or purchaser;

(b) “an asset or liability should exchange” refers to the fact that the value of an asset or liability is an estimated amount rather than a predetermined amount or actual sale price. It is the price in a transaction that meets all the elements of the Market Value definition at the valuation date;

(c) “on the valuation date” requires that the value is time-specific as of a given date. Because markets and market conditions may change, the estimated value may be incorrect or inappropriate at another time. The valuation amount will reflect the market state and circumstances as at the valuation date, not those at any other date;

(d) “between a willing buyer” refers to one who is motivated, but not compelled to buy. This buyer is neither over eager nor determined to buy at any price. This buyer is also one who purchases in accordance with the realities of the current market and with current market expectations, rather than in relation to an imaginary or hypothetical market that cannot be demonstrated or anticipated to exist. The assumed buyer would not pay a higher price than the market requires. The present owner is included among those who constitute “the market”;

(e) “and a willing seller” is neither an over eager nor a forced seller prepared to sell at any price, nor one prepared to hold out for a price not considered reasonable in the current market. The willing seller is motivated to sell the asset at market terms for the best price attainable in the open market after proper marketing, whatever that price may be. The factual circumstances of the actual owner are not a part of this consideration because the willing seller is a hypothetical owner;

(f) “in an arm’s length transaction” is one between parties who do not have a particular or special relationship, eg parent and subsidiary companies or landlord and tenant that may make the price level uncharacteristic of the market or inflated. The Market Value transaction is presumed to be between unrelated parties, each acting independently;

(g) “after proper marketing” means that the asset has been exposed to the market in the most appropriate manner to effect its disposal at the best price reasonably obtainable in accordance with the Market Value definition. The method of sale is deemed to be that most appropriate to obtain the best price in the market to which the seller has access. The length of exposure time is not a fixed period but will vary according to the type of asset and market conditions. The only criterion is that there must have been sufficient time to allow the asset to be brought to the attention of an adequate number of market participants. The exposure period occurs prior to the valuation date;

Market Value July 2017 V1.1

(h) “where the parties had each acted knowledgeably, prudently” presumes that both the willing buyer and the willing seller are reasonably informed about the nature and characteristics of the asset, its actual and potential uses, and the state of the market as of the valuation date. Each is further presumed to use that knowledge prudently to seek the price that is most favourable for their respective positions in the transaction. Prudence is assessed by referring to the state of the market at the valuation date, not with benefit of hindsight at some later date. For example, it is not necessarily imprudent for a seller to sell assets in a market with falling prices at a price that is lower than previous market levels. In such cases, as is true for other exchanges in markets with changing prices, the prudent buyer or seller will act in accordance with the best market information available at the time;

(i) “and without compulsion” establishes that each party is motivated to undertake the transaction, but neither is forced or unduly coerced to complete it.

30.3 The concept of Market Value presumes a price negotiated in an open and competitive market where the participants are acting freely. The market for an asset could be an international market or a local market. The market could consist of numerous buyers and sellers, or could be one characterised by a limited number of market participants. The market in which the asset is presumed exposed for sale is the one in which the asset notionally being exchanged is normally exchanged.

30.4 The Market Value of an asset will reflect its highest and best use. The highest and best use is the use of an asset that maximises its potential and that is possible, legally permissible and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid.

30.5 The nature and source of the valuation inputs must be consistent with the basis of value, which in turn must have regard to the valuation purpose. For example, various approaches and methods may be used to arrive at an opinion of value providing they use market-derived data. The market approach will, by definition, use market-derived inputs. To indicate Market Value, the income approach should be applied, using inputs and assumptions that would be adopted by participants. To indicate Market Value using the cost approach, the cost of an asset of equal utility and the appropriate depreciation should be determined by analysis of market-based costs and depreciation.

30.6 The data available and the circumstances relating to the market for the asset being valued must determine which valuation method or methods are most relevant and appropriate. If based on appropriately analysed market-derived data, each approach or method used should provide an indication of Market Value.

30.7 Market Value does not reflect attributes of an asset that are of value to a specific owner or purchaser that are not available to other buyers in the market. Such advantages may relate to the physical, geographic, economic or legal characteristics of an asset. Market Value requires the disregard of any such element of value because, at any given date, it is only assumed that there is a willing buyer, not a particular willing buyer.

1.2 Special Value Special value is an amount that reflects particular attributes of an asset that are only of value to a special

purchaser. A special purchaser is a particular buyer for whom a particular asset has special value because of advantages arising from its ownership that would not be available to other buyers in a market.