Castellana -English Version

INFORMATION MEMORANDUM ON THE LISTING ON THE ALTERNATIVE EQUITY MARKET MERCADO ALTERNATIVO BURSÁTIL (MAB), SOCIMIs SEGMENT (“MAB-SOCIMIs”), OF THE SHARES OF THE COMPANY CASTELLANA PROPERTIES SOCIMI, S.A. JULY 2018 This Information Memorandum on the Listing to the Alternative Equity Market (“Mercado Alternativo Bursátil”) (the “Market ” or “ MAB ”), in its Real Estate Investment Trusts segment (“Sociedades Cotizadas de Inversión en el Mercado Inmobiliario”) (“ MAB-SOCIMIs”), of the company Castellana Properties SOCIMI, S.A. (“ Castellana ”, the “ Company ”, the “ Firm ” or the “ Issuer ”), has been drawn up in accordance with the standard form provided in the Appendix of MAB Circular 9/2017, of 21 December, on the requirements and procedures applicable to the listing and de-listing on the MAB of shares issued by Growth Companies and Spanish Real Estate Investment Trusts (SOCIMIs) (“ MAB Circular 9/2017 ”), duly designating Renta 4 Corporate, S.A. as Registered Advisor in compliance with MAB Circulars 9/2017 and 16/2016, of 26 July, on the Registered Advisor (“ MAB Circular 16/2016 ”). The investors of companies traded on the MAB-SOCIMIs must be aware that they assume a risk greater than the one of investing in companies listed on the Securities Markets. Investment in companies listed on the MAB-SOCIMIs must receive advice from an independent professional. We recommend that the investor reads this Information Memorandum on the Listing to the MAB (“ Information Memorandum ”) carefully and in full before making any investment decision concerning marketable securities. Neither the Governing Body of the MAB nor the National Securities Market Commission ( CNMV ) have approved or conducted any type of verification or check with regards to the contents of this Information Memorandum. Information Memorandum for the MAB Listing of Castellana Properties SOCIMI, S.A. July 2018 i Renta 4 Corporate, S.A., with registered office at Paseo de la Habana 74, Madrid, and holder of tax identification number A-62585849, duly registered with the Mercantile Registry of Madrid in Volume 21918, Page 11, section B, Sheet M-390614, Registered Advisor in the MAB, acting in this status with respect to the Company, an entity that has applied for the incorporation of its shares on the MAB, and for the purposes set out in the MAB Circular 16/2016, HEREBY DECLARES One. Having carried out the actions deemed necessary for this purpose, it has verified that Castellana complies with the requirements imposed for its shares to be listed on the Market. Two. Has assisted and collaborated with the Company in the preparation and drafting of the Information Memorandum, as required under MAB Circular 9/2017. Three. Has reviewed the information that the Company has gathered and published and understands that it complies with the regulations in terms of content, accuracy and clarity requirements that apply to it, does not omit relevant information and does not mislead investors. Four. Has advised the Company about any facts that could affect compliance with the obligations undertaken by the Company as a consequence of being included in the MAB-SOCIMIs segment, as well as the best way of dealing with these facts to avoid any potential breach of these obligations. Information Memorandum for the MAB Listing of Castellana Properties SOCIMI, S.A. July 2018 ii 1. SUMMARY ..................................................................................................................................... 1 1.1. Responsibility for the Document ........................................................................................... 1 1.2. Information used to determine the reference price per share ................................................. 1 1.3. Main risk factors .................................................................................................................... 1 1.4. Brief description of the company, of the issuer’s business and strategy ................................ 3 1.5. Financial information, significant trends and, where appropriate, forecasts or estimates. It will include the key figures that summarise the issuer’s financial situation .......................... 4 1.6. Directors and senior executives of the issuer ......................................................................... 7 1.7. Shareholder base .................................................................................................................... 8 1.8. Information related to the shares ............................................................................................ 8 2. GENERAL INFORMATION REGARDING THE COMPANY AND ITS BUSINESS .......... 9 2.1. Person or persons that will have the status of director, responsible for the information contained in the Document. A declaration from them that, to the best of their knowledge, it is in accordance with the facts and there is no relevant omission .......................................... 9 2.2. Company’s Account Auditors ................................................................................................ 9 2.3. Complete identification of the Company (registry information, registered office, etc.) and corporate purpose ................................................................................................................. 10 2.4. Brief statement of the history of the company, including reference to the most relevant milestones ............................................................................................................................ 12 2.4.1. Legal and commercial name ............................................................................... 12 2.4.2. The most important events in the history of the Company ................................. 12 2.5. Reasons it has decided to request listing to trading on the MAB-SOCIMI ......................... 19 2.6. General description of the Issuer’s business, with particular reference to the activities it performs, the characteristics of its products or services and its position in the markets in which it operates .................................................................................................................. 19 2.6.1. Description of the real estate assets, location and status, depreciation period, concession or management. Where appropriate, detailed information will be provided concerning the obtaining of building permits for consolidated urban Information Memorandum for the MAB Listing of Castellana Properties SOCIMI, S.A. July 2018 iii land. Information will also be provided on the status of the development (the contract with the construction company, progress of the works and scheduled completion, etc.). ................................................................................................. 19 2.6.2. Possible cost of commissioning due to a change of lessee .................................. 42 2.6.3. Tax information .................................................................................................. 42 2.6.4. Description of the investment and asset replacement policy. Description of activities other than real estate activities ............................................................. 50 2.6.5. Valuation report carried out by an independent expert in accordance with internationally accepted criteria, unless within the six months prior to the request there has been a placement of shares or a financial transaction took place that was relevant in determining a first reference price for the start of trading of the Company’s shares ............................................................................................... 51 2.6.5.1. Valuation report .................................................................................................. 51 2.7. Strategy and competitive advantages of the Issuer .............................................................. 56 2.8. Brief description of the Issuer’s group of companies. Description of the characteristics and activity of the subsidiaries with a significant effect on the Issuer’s valuation or position ... 57 2.9. Where applicable, dependence on patents, licences or similar ............................................ 58 2.10. Diversification level (relevant contracts with suppliers or customers, information on possible concentration on certain products, etc.) ................................................................. 58 2.11. Reference to environmental aspects that may affect the Issuer’s activity ............................ 60 2.12. Financial information ........................................................................................................... 61 2.12.1. Financial information for the last three years (or for the shortest period of activity of the Issuer), with the corresponding audit report for each year. The annual accounts must be formulated in accordance with the International Financial Reporting Standards (IFRS), national accounting standard or US GAAP, as the case may be, in accordance with the Circular addressing Listing Procedures and Requirements. ............................................................................ 61 2.12.2. Should the audit reports contain any unfavourable opinions or opinions with disclaimers or rejections, then they will report the reasons why, the corrective actions to be taken, and the time frame. .............................................................. 72 2.12.3. Description of the dividend policy .....................................................................

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