Valuation Report

Project Calvino Office Portfolio Bank of America Merrill Lynch

June 2014

Contents

Valuation Letter ...... 4 1.1 Introduction and Scope of Work ...... 4 1.2 Basis of the Valuation ...... 5 1.3 Special Assumptions ...... 5 1.4 Valuation Date ...... 5 1.5 Valuation Purpose ...... 5 1.6 The Portfolio ...... 6 1.7 Compliance ...... 6 1.1 Conduct of the Assignment ...... 6 1.8 Professional Indemnity Insurance Cover and Liability ...... 6 1.9 Reliance ...... 7 1.10 Warranty ...... 7 1.11 Market Rents ...... 7 1.12 Market Values ...... 8 2 General Principles ...... 10 2.1 Sources of Information ...... 10 2.2 Measurements and Areas ...... 11 2.3 Titles ...... 12 2.4 Town Planning and Other Statutory Regulations ...... 12 2.5 Site Visits ...... 12 2.6 Structural Survey ...... 12 2.7 Deleterious materials and Pollution ...... 12 2.8 Environmental Contamination ...... 13 2.9 Disposal Costs and Liabilities ...... 13 3 Valuation Approach and Assumptions ...... 14 3.1 Valuation Approach ...... 14 3.2 Building Reinstatement Cost ...... 14 1.13 General Valuation Assumptions ...... 14 3.3 Tax Matters ...... 15 4 Market Overview ...... 16 4.1 Economy ...... 16 4.2 Real Estate Office Market Overview of Milan ...... 16 4.3 Real Estate Office Market Overview of Rome ...... 20 4.4 Real Estate Office Market Overview of Turin ...... 24 4.5 Real Estate Office Market Overview Regional Markets ...... 25 5 Rome, Via Pianciani 26 ...... 28 5.1 Location ...... 28 5.2 Accessibility ...... 28 5.3 Site and Property Description ...... 29 5.4 State of Repairs ...... 30 5.5 Accommodation ...... 30 5.6 Environmental Aspects ...... 32 5.7 Cadastral Data ...... 33 5.8 Town Planning Data ...... 34 5.9 Building Certifications ...... 34 5.10 Annual Non-Recoverable Costs ...... 35 5.11 Tenure ...... 36 5.12 Tenancy ...... 37 5.13 Letting and Investment Transactions ...... 38 5.14 Market Rent ...... 38

1 5.15 Future Income Performance ...... 39 5.16 Valuation Data ...... 40 5.17 SWOT ANALYSIS ...... 41 5.18 Alternative use ...... 41 5.19 Saleability ...... 41 5.20 Indication on the Building Reinstatement Cost ...... 41 5.21 Market Rent ...... 42 5.22 Market Value ...... 42 6 Milan, Viale Sarca 222 ...... 44 6.1 Location ...... 44 6.2 Accessibility ...... 44 6.3 Site and Property Description ...... 45 6.4 State of Repairs ...... 46 6.5 Accommodation ...... 46 6.6 Environmental Aspects ...... 47 6.7 Cadastral Data ...... 48 6.8 Town Planning Data ...... 48 6.9 Building Certifications ...... 50 6.10 Annual Non-Recoverable Costs ...... 51 6.11 Tenure ...... 52 6.12 Tenancy ...... 53 6.13 Letting and Investment Transactions ...... 53 6.14 Market Rent ...... 54 6.15 Future Income Performance ...... 55 6.16 Valuation Data ...... 55 6.17 SWOT ANALYSIS ...... 56 6.18 Alternative use ...... 56 6.19 Saleability ...... 56 6.20 Indication on the Building Reinstatement Cost ...... 57 6.21 Market Rent ...... 57 6.22 Market Value ...... 57 7 Assago, Milanofiori, Strada 1 – Building F4 – F11 ...... 60 7.1 Location ...... 60 7.2 Accessibility ...... 60 7.3 Site and Property Description ...... 61 7.4 State of Repairs ...... 62 7.5 Accommodation ...... 63 7.6 Environmental Aspects ...... 63 7.7 Cadastral Data ...... 65 7.8 Town Planning Data ...... 66 7.9 Building Certifications ...... 67 7.10 Annual Non-recoverable Costs ...... 68 7.11 Tenure ...... 69 7.12 Tenancy ...... 69 7.13 Letting and Investment Transactions ...... 71 7.14 Market Rent ...... 72 7.15 Future Income Performance ...... 73 7.16 Valuation Data ...... 73 7.17 SWOT ANALYSIS ...... 74 7.18 Alternative use ...... 74 7.19 Saleability ...... 75 7.20 Indication on the Building Reinstatement Cost ...... 75 7.21 Market Rent ...... 75 7.22 Market Value ...... 76 8 Agrate Brianza, Via Paracelso 22-24-26 ...... 78 8.1 Location ...... 78 8.2 Accessibility ...... 78 8.3 Site and Property Description ...... 79 8.4 State of Repairs ...... 80 8.5 Accommodation ...... 80

2 8.6 Environmental Aspects ...... 81 8.7 Cadastral Data ...... 82 8.8 Town Planning Data ...... 83 8.9 Building Certifications ...... 84 8.10 Annual Non-recoverable Costs ...... 84 8.11 Tenure ...... 85 8.12 Tenancy ...... 86 8.13 Letting and Investment Transactions ...... 89 8.14 Market Rent ...... 89 8.15 Future Income Performance ...... 90 8.16 Valuation Data ...... 90 8.17 SWOT ANALYSIS ...... 91 8.18 Alternative use ...... 92 8.19 Saleability ...... 92 8.20 Indication on the Building Reinstatement Cost ...... 92 8.21 Market Rent ...... 93 8.22 Market Value ...... 93 9 Ivrea, Via Jervis 9 ...... 95 9.1 Location ...... 95 9.2 Accessibility ...... 95 9.3 Site and Property Description ...... 96 9.4 State of Repairs ...... 97 9.5 Accommodation ...... 97 9.6 Environmental Aspects ...... 98 9.7 Cadastral Data ...... 99 9.8 Town Planning Data ...... 100 9.9 Building Certifications ...... 101 9.10 Annual Non-recoverable Costs ...... 102 9.11 Tenure ...... 103 9.12 Tenancy ...... 103 9.13 Local Market ...... 104 9.14 Market Rent ...... 105 9.15 Future Income Performance ...... 106 9.16 Valuation Data ...... 106 9.17 SWOT ANALYSIS ...... 107 9.18 Alternative Use ...... 108 9.19 Saleability ...... 108 9.20 Indication on the Building Reinstatement Cost ...... 108 9.21 Market Rent ...... 109 9.22 Market Value ...... 109 10 Turin, Via Vincenzo Lancia 55 ...... 111 10.1 Location ...... 111 10.2 Accessibility...... 111 10.3 Site and Property Description ...... 112 10.4 State of Repairs ...... 113 10.5 Accommodation ...... 113 10.6 Environmental Aspects ...... 114 10.7 Cadastral Data ...... 116 10.8 Town Planning Data ...... 116 10.9 Building Certifications ...... 117 10.10 Annual Non-recoverable Costs ...... 118 10.11 Tenure ...... 118 10.12 Tenancy ...... 119 10.13 Letting Transactions ...... 119 10.14 Market Rent ...... 120 10.15 Future Income Performance ...... 121 10.16 Valuation Data ...... 121 10.17 SWOT ANALYSIS ...... 122 10.18 Alternative use ...... 122 10.19 Saleability ...... 123

3 10.20 Indication on the Building Reinstatement Cost ...... 123 10.21 Market Rent ...... 123 10.22 Market Value ...... 124 11 Treviso, Via Sante Zanon 7 ...... 126 11.1 Location ...... 126 11.2 Accessibility...... 126 11.3 Site and Property Description ...... 127 11.4 State of Repairs ...... 128 11.5 Accommodation ...... 128 11.6 Environmental Aspects ...... 129 11.7 Cadastral Data ...... 130 11.8 Town Planning Data ...... 130 11.9 Building Certifications ...... 131 11.10 Annual Non-recoverable Costs ...... 132 11.11 Tenure ...... 132 11.12 Tenancy ...... 133 11.13 Local Market ...... 133 11.14 Market Rent ...... 134 11.15 Future Income Performance ...... 135 11.16 Valuation Data ...... 135 11.17 SWOT ANALYSIS ...... 136 11.18 Alternative use ...... 137 11.19 Saleability ...... 137 11.20 Indication on the Building Reinstatement Cost ...... 137 11.21 Market Rent ...... 138 11.22 Market Value ...... 138 12 Trieste, Via Giovanni Verga 5 ...... 140 12.1 Location ...... 140 12.2 Accessibility...... 140 12.3 Site and Property Description ...... 141 12.4 State of Repairs ...... 142 12.5 Accommodation ...... 142 12.6 Environmental Aspects ...... 143 12.7 Cadastral Data ...... 144 12.8 Town Planning Data ...... 144 12.9 Building Certifications ...... 145 12.10 Annual Non-recoverable Costs ...... 146 12.11 Tenure ...... 146 12.12 Tenancy ...... 147 12.13 Local Market ...... 147 12.14 Market Rent ...... 148 12.15 Future Income Performance ...... 149 12.16 Valuation Data ...... 149 12.17 SWOT ANALYSIS ...... 150 12.18 Alternative use ...... 151 12.19 Saleability ...... 151 12.20 Indication on the Building Reinstatement Cost ...... 151 12.21 Market Rent ...... 152 12.22 Market Value ...... 152 13 Venezia Mestre, Via Tevere 34 ...... 154 13.1 Location ...... 154 13.2 Accessibility...... 154 13.3 Site and Property Description ...... 154 13.4 State of Repairs ...... 155 13.5 Accommodation ...... 155 13.6 Environmental Aspects ...... 156 13.7 Cadastral Data ...... 157 13.8 Town Planning Data ...... 157 13.9 Building Certifications ...... 158 13.10 Annual Non-recoverable Costs ...... 159

4 13.11 Tenure ...... 159 13.12 Tenancy ...... 160 13.13 Local Market ...... 161 13.14 Market Rent ...... 162 13.15 Future Income Performance ...... 162 13.16 Valuation Data ...... 163 13.17 SWOT ANALYSIS ...... 164 13.18 Alternative use ...... 164 13.19 Saleability ...... 164 13.20 Indication on the Building Reinstatement Cost ...... 164 13.21 Market Rent ...... 165 13.22 Market Value ...... 165

Appendices

Appendix 1………………………………………………………………………………………….....………..Location Appendix 2………………………………………………………………………………………….………Photographs Appendix 3………………………………………………………………………………………….…….…………Plans Appendix 4………………………………………………………………………..……………Valuation Calculations Appendix 5………………………………………………………………General Terms and Conditions of Business

Via Agnello 8, 20121, Milano, Italia tel +39 02 85 86 861

www.joneslanglasalle.it

For the attention of Debbie Pauza Our ref Market Manager Direct line +39.02.85868651 Bank of America Merrill Lynch International [email protected] 2 King Edward Street London EC1A 1HQ

26 June 2014

Dear Sirs,

Valuation Letter

1.1 Bank of America Statement Bank of America makes no warranties or representations regarding this document or the conclusions contained herein

1.2 Introduction and Scope of Work Further to the instruction letter dated 25 May 2014 we have performed the necessary analysis aiming to provide you with the valuation of the portfolio consisting of nine office buildings identified as Project Calvino (the Portfolio). The scope of the valuation exercise is to provide you with our professional opinion of the following values reflecting market conditions as at the valuation date, 5 June 2014:

. Market Value of each property in its current state of repairs and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, reflecting market conditions as at the valuation date . Market Rent of each property in its current state of repairs and use, reflecting market conditions as at the valuation date . An indication of the possible Building Reinstatement Costs for each property based on market and construction costs benchmarks for similar properties in terms of use and quality The present analysis has been carried out taking into consideration the market information at the valuation date and the documentation made available.

Via Agnello 8, 20121, Milano, Italia tel +39 02 85 86 861

www.joneslanglasalle.it

1.3 Basis of the Valuation Our analyses are carried out in accordance with the principles, guidelines and definitions contained in the RICS Professional Standards Global – RICS Valuation Professional Standards January 2014 Edition incorporating the IVSC International Valuation Standards. The subject valuation is carried out in accordance with the following definition of Market Value settled by the International Valuation Standards Committee and referred to in the Red Book under section VPS4 – 1.2.:

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 subject valuation will be carried out in accordance with the following definition of Market Rent settled by the International Valuation Standards Committee and referred to in the Red Book under section VPS4 – 1.3:

Market Rent “The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.” The General Principles upon which our valuation has been performed are reported in Section 3 and any Special Assumptions requested by the Client are reported below.

1.4 Special Assumptions No Special Assumptions have been adopted in our analysis.

1.5 Valuation Date The subject analysis has been carried out taking into consideration market conditions and market information available during June 2014. The valuation date is 5 June 2014.

1.6 Valuation Purpose The subject valuation analysis has been carried out for financing purposes. The intended use of the valuation report is to provide information for use in making business and credit decisions concerning an actual or prospective loan or line of credit. This report is for the use and benefit of, and may be relied upon by, Bank of America, N.A. as Lender, or, Bank of America, N.A. as Administrative Agent for certain Lenders.

Via Agnello 8, 20121, Milano, Italia tel +39 02 85 86 861

www.joneslanglasalle.it

1.7 The Portfolio The subject of this valuation instruction is a real estate portfolio named Project Calvino (hereinafter the Portfolio) composed of nine office properties located in Northern Italy and Rome. The properties set out in the table below:

Code Property GFA M2 1 Rome, Via Pianciani 26 13,503 2 Milan, Viale Sarca 222 10,008 3 Assago, Strada 1 – Building F4-F11 37,966 4 Agrate Brianza, Via Paracelso 22-24-26 15,880 5 Ivrea, Via Jervis 9 21,921 6 Turin, Via Vincenzo Lancia 55 35,264 7 Treviso, Via Sante Zenon 7 7,821 8 Trieste, Via Verga 5 2,610 9 Venezia Mestre, Via Tevere 34 2,939

1.8 Compliance This appraisal has been prepared in accordance with the principles, guidelines and definitions contained in the RICS Professional Standards Global – RICS Valuation Professional Standards January 2014 Edition incorporating the IVSC International Valuation Standards. In the context of the valuation, JLL acts as an Independent Valuer qualified for the purposes of the valuation and working in a fee earning capacity for the Bank. We confirm that no part of this instruction was sub-contracted. We confirm that this engagement has been performed independently and without bias toward the Client or others. We have complied with the code of conduct and adhered to the ethical standards set out in the RICS Professional Standards Global and the International Valuation Standards (IVS). We confirm that at the analysis date there are no conflicts of interest for the preparation of the subject valuation. If, during the course of fulfilling the valuation instruction we become aware of a potential conflict of interest, we confirm that will immediately contact Bank of America CAS.

1.1 Conduct of the Assignment This assignment has been directed by Mr Luca Villani MRICS – National Director and Head of Valuation Advisory Department and prepared by Mr. Federico Trevaini MRICS. All people involved are experienced appraisers in the Italian market and have experience in the valuation of assets of similar nature to the subject portfolio.

1.9 Professional Indemnity Insurance Cover and Liability We confirm that we have adequate professional indemnity insurance cover for this instruction. Our professional liability is capped at €20m in aggregate for the purpose of this instruction.

Via Agnello 8, 20121, Milano, Italia tel +39 02 85 86 861

www.joneslanglasalle.it

1.10 Reliance This report may be relied upon by Bank of America, N.A, and its successors and/or assigns in connection with respective consideration of the extension of credit related to the property and/or the beneficial ownership thereof (the “Loan Financing”). This information also may be relied upon by any actual or prospective purchaser, co- lender, participant, investor, transferee, assignee and servicer of the Loan Financing, any actual or prospective investor (including agents and advisors) in any securities evidencing a beneficial interest in, or backed by, the Loan Financing, any rating agencies actually or prospectively rating any such securities, any indenture trustee and any institutional provider(s) from time to time of any liquidity facility or credit support for such Loan Financing. In addition, this report or a reference to this report, may be included or quoted in any offering circular, registration statement, or prospectus in connection with a securitisation or transaction involving the Loan Financing and/or related securities that may be issued. This report has no other purpose and should not be relied upon by any other person or entity."

1.11 Warranty Bank of America makes no warranties or representations regarding this document or the conclusions contained herein.

1.12 Market Rents Based on the information contained in this valuation report, our opinion of the Market Rent for each property in their current state of repair and use, as at the valuation date is as follows:

Code Property Market Rent 1 Rome, Via Pianciani 26 €2,560,000 2 Milan, Viale Sarca 222 €1,543,000 3 Assago, Strada 1 – Building F4-F11 €3,841,000 4 Agrate Brianza, Via Paracelso 22-24-26 €1,436,000 5 Ivrea, Via Jervis 9 €1,486,000 6 Turin, Via Vincenzo Lancia 55 €2,621,000 7 Treviso, Via Sante Zenon 7 €271,600 8 Trieste, Via Verga 5 €115,600 9 Venezia Mestre, Via Tevere 34 €143,000

Via Agnello 8, 20121, Milano, Italia tel +39 02 85 86 861

www.joneslanglasalle.it

1.13 Market Values Based on the information contained in this valuation report, our opinion of the Market Value of each property forming the Portfolio in their current state of repair and use, subject to the existing lease agreement/s and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows:

Code Property Market Value 1 Rome, Via Pianciani 26 €32,700,000 2 Milan, Viale Sarca 222 €17,300,000 3 Assago, Strada 1 – Building F4-F11 €37,900,000 4 Agrate Brianza, Via Paracelso 22-24-26 €10,150,000 5 Ivrea, Via Jervis 9 €15,450,000 6 Turin, Via Vincenzo Lancia 55 €32,100,000 7 Treviso, Via Sante Zenon 7 €3,500,000 8 Trieste, Via Verga 5 €1,420,000 9 Venezia Mestre, Via Tevere 34 €1,780,000

The above reported Market Values reflect a Net Value, after the deduction of purchaser’s costs of acquisition of 5.00%. Our assessment of the Gross Value before deduction of purchaser’s costs is as follows:

Code Property Gross Value 1 Rome, Via Pianciani 26 €34,335,000 2 Milan, Viale Sarca 222 €18,165,000 3 Assago, Strada 1 – Building F4-F11 €39,750,000 4 Agrate Brianza, Via Paracelso 22-24-26 €10,657,600 5 Ivrea, Via Jervis 9 €16,222,500 6 Turin, Via Vincenzo Lancia 55 €33,705,000 7 Treviso, Via Sante Zenon 7 €3,675,000 8 Trieste, Via Verga 5 €1,491,000 9 Venezia Mestre, Via Tevere 34 €1,869,000

This report was completed on 26 June 2014, in good faith on the basis of information made available to us reflecting market conditions at the valuation date.

Via Agnello 8, 20121, Milano, Italia tel +39 02 85 86 861

www.joneslanglasalle.it

1.14 Confidentiality This report may be relied upon by Bank of America, N.A., its successors and/or assigns in connection with their respective consideration of the extension of credit related to the property and/or the beneficial ownership thereof (the "Loan Financing"). This information also may be relied upon by any actual or prospective purchaser, co- lender, participant, investor, transferee, assignee and servicer of the Loan Financing, any actual or prospective investor (including agents and advisors) in any securities evidencing a beneficial interest in, or backed by, the Loan Financing, any rating agencies actually or prospectively rating any such securities, any indenture trustee and any institutional provider(s) from time to time of any liquidity facility or credit support for such Loan Financing. In addition, this report or a reference to this report, may be included or quoted in any offering circular, registration statement, or prospectus in connection with a securitization or transaction involving the Loan Financing and/or related securities that may be issued. This report has no other purpose and should not be relied upon by any other person or entity.

Yours faithfully

Pierre Marin MRICS Dermot Charleson MRICS CEO Regional Director For and on behalf of JLL For and on behalf of JLL

2 General Principles

The following are the General Principles upon which our Valuations and Reports are prepared; they apply unless we have agreed otherwise and specifically mentioned any variations in the body of the report. The extent of the analyses carried out by us in connection with the subject valuation mandate are detailed in the following sections and are in line with the terms of engagement agreed with the Client. We would like to bring to your attention that, in the subject report, we refer to Bank of America Merrill Lynch as the Client, to Cordea Savills SGR SpA as the Borrower and to Cushman & Wakefield as the Borrowers’ Advisor.

2.1 Sources of Information In accordance with our agreement, we have carried out our analysis on the basis of the documentation and data provided by the Client, the Borrower or Borrower’s Advisor. For the purposes of this valuation, we have assumed that the information provided to us is accurate and correct; we highlight that the documentation and information provided to us has been analysed within the limits of our valuation instruction. We report below the documentation provided to us for all properties: . Information Memorandum issued by Pirelli RE, dated 10 July 2007

. Project Calvino – Investment Memorandum issued by CBRE, dated May 2014 – hereinafter the IM . Project Calvino – Comps Presentation issued by Cordea Savills, dated May 2014 . Copy of the Draft Technical Due Diligence Report issued by WT Partnership, dated May 2014 – hereinafter the TDD Report . Copy of the Draft Environmental Due Diligence Report – Phase 1 Environmental Assessment issued by Tecno Habitat, dated May 2014 – hereinafter the EDD Report . Tenancy Schedule

Rome, Via Pianciani 26 . Lease contract subscribed by First Atlantic RE SGR S.p.A. and ANAS S.p.A. dated 01/09/2010 and the lease contract integrations (letters) dated 15/02/2013 and 11/06/2014 . Lease contract subscribed by First Atlantic RE SGR S.p.A. and Emme Più S.r.l. dated 23/03/2009 Milan, Viale Sarca 222 . Copy of the Building Registry Certificate (Visura storica dell’immobile) and Cadastral Map, dated 23 May 2014

. Copy of the Technical Due Diligence Report issued by WT Partnership, dated May 2014 – hereinafter the TDD Report

. Table reporting rent payments since May 2009

. Communication of reduction of annual rent increase to 75% of ISTAT

. Lease contract subscribed by Kappa S.r.l. and Pirelli Cavi & Sistemi Energia S.p.A. on 11 May 2005 and lease contract integrations dated 31 March 2003, 10 February 2004, 20 September 2004, 30 November 2004 and 27 February 2008;

Assago, Strada 1, Building F4-F11 . Copies of the Lease agreements in place . Property plans . Copy of the Building Certificate of use dated 20 May 2014

Agrate Brianza, Via Paracelso 22-24-26 . Copies of the Lease agreements in place . Property plans

Ivrea, Via Jervis 9 . Cadastral Data (Visura storica dell’immobile), dated 15 March 2014 . Lease contract subscribed by Vodafone Omnitel N.V. and Tiglio I S.r.l. on 30 June 2004;

. Lease contract subscribed by Pirelli & C. Real Estate Facility Management S.p.A and Tiglio I S.r.l. on 20th June 2005

. Lease contract subscribed by Vodafone Omnitel N.V and Fondo Berenice. on 15th June 2006

Torino, Via Vincenzo Lancia 55 . Lease contract subscribed by Telecom Italia S.p.a. and IM.SER. S.pa. on 28th November 2000

. Amendment of the lease contract subscribed by Telecom Italia S.p.a. and EMSA S.r.l on 24th October 2002

Treviso, Via Sante Zenon 7 . Lease contract subscribed by Telecom Italia S.p.A. and Tiglio II S.r.l. on 29 October 2002

Trieste, Via Verga 5 . Lease contract subscribed by Telecom Italia S.p.A. and Tiglio II S.r.l. on 29 October 2002

Venezia Mestre, Via Tevere 34 . Lease contract subscribed by Telecom Italia S.p.A and Tiglio Il Srl. on 29 October 2002

2.2 Measurements and Areas In accordance with our agreement we have not measured the properties and have relied on the areas contained within the IM provided by the Borrower and/or its appointed advisor. We have made an assumption that the areas have been measured in accordance with local market practice.

2.3 Titles For the purposes of the subject valuation, we have not studied the details of the title deed, general or specific ground lease conditions, or other restrictions or rights of third parties, if not otherwise specified in the relevant sections of the subject report.

2.4 Town Planning and Other Statutory Regulations We have based our opinion on information contained within the TDD Report provided to us.

We have in all cases assumed that the uses to which the land and buildings are put are established for planning purposes, and that all necessary town-planning consents and byelaw approvals have been obtained, and all other relevant statutory regulations complied with, if not otherwise specified in the relevant sections of the subject report.

2.5 Site Visits As instructed, all properties were inspected according to the following schedule:

Inspection Code Property Inspected by date 1 Rome, Via Pianciani 26 30 May 2014 Mr. Luca Villani 2 Milan, Viale Sarca 222 16 June 2014 Ms. Sabrina Serafinelli 3 Assago, Strada 1 – Building F4-F11 16 June 2014 Ms. Sabrina Serafinelli 4 Agrate Brianza, Via Paracelso 22-24-26 30 May 2014 Ms. Sabrina Serafinelli 5 Ivrea, Via Jervis 9 04 June 2014 Ms. Federica Maiello 6 Turin, Via Vincenzo Lancia 55 12 June 2014 Ms. Federica Maiello 7 Treviso, Via Sante Zenon 7 16 June 2014 Ms. Vanja Saric 8 Trieste, Via Verga 5 16 June 2014 Ms. Vanja Saric 9 Venezia Mestre, Via Tevere 34 16 June 2014 Ms. Vanja Saric

2.6 Structural Survey It is our opinion that the data and information collected/provided by us during the inspection of the subject property is appropriate for carrying out the subject valuation instruction. In addition, we have relied on the information contained within the TDD report. We bring to your attention that, in any case, our inspections aim at gaining a general understanding of the state of repair of the property and of their functional qualities (with reference to the areas we have inspected) with a purely visual analysis.

2.7 Deleterious materials and Pollution We have relied on the information contained within the EDD Report provided to us. Please note that we do not normally carry out 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, wood-wool 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.

2.8 Environmental Contamination We have relied on the information contained within the EDD Report provided to us. Please note that we do not carry out site surveys or environmental assessments, or investigate historical records to establish whether any land or premises are or have been contaminated. Unless we are specifically advised to the contrary, our valuations assume that the properties are not affected by environmental contamination.

2.9 Disposal Costs and Liabilities For the purposes of this valuation, we have not taken into account the effect of the changes to VAT legislation, nor of the changes to the provisions on property transfer and registration charges, or of the introduction of legal measures intended to close loopholes in property-tax legislation. If you require certainty as to the possible considerable effects of changes in legislation on the value of the property, we advise you to contact your tax advisor.

3 Valuation Approach and Assumptions

3.1 Valuation Approach Each property forming the Portfolio has been analysed using an Income Capitalisation Approach with a Discounted Cash Flow Methodology (DCF analysis). The methodology is based on a direct capitalisation model, where the lease based income has been capitalised with an all risk yield in perpetuity. The choice of methodology represents the likely basis of analysis to be used by a potential generic buyer (investor).

We have extracted a 10 year cash flow from the net present value, which has been calculated using the aforementioned income capitalisation method. The resulting Internal Rate of Return (IRR) is equivalent to the Discount Rate. The direct capitalisation, as well as the 10 year cash-flow period, has been carried out with the assumption that all payments are made quarterly in advance. We have estimated the Market Value based on the analysis made and the documentation/information provided by the Client’s appointed representative. As requested the analysis has been carried out utilising the valuation software Argus Valuation Capitalisation.

3.2 Building Reinstatement Cost We have been instructed to also provide you with an Indication of the Reinstatement Cost applicable for the property under analysis. We bring to the Client’s attention that our estimate is just an indication serving as a guide and without warranty, as a formal estimate for insurance purposes can be given only by a Quantity Surveyor, Building Surveyor or other expert with sufficient current experience of replacement costs. The reinstatement cost approach reflects the cost of replacing the building irrespective of its age, size or suitability. It might be described as “New for Old”. This approach differs from the depreciated replacement cost approach, which necessarily focuses on the replacement cost of the existing structure and reflects deductions for the age and condition as a result of obsolescence.

1.15 General Valuation Assumptions Cash Flow Start Date The cash flow start date is the valuation date of 5 June 2014.

Holding Period The present analysis takes in consideration a 10 year holding period over which a set of income streams, the related costs, and the exit value have been projected.

Inflation and Rental Growth The cash flow has been performed on the basis of the parameters determined as at the date of our analysis with explicit assumptions made for the rental indexation, cost inflation and the market growth1 as follows:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 57- 10 Inflation/Indexation 0.80% 1.10% 1.70% 2.00% 1.90% 1.50% 2.00% Market Growth 0.00% 1.10% 1.70% 2.00% 1.90% 1.50% 2.00% Source: Consensus Economics Long Term Forecast – Latest available long term forecast April 2014.

For the purpose of the present valuation, in consideration of the current market conditions, we deemed appropriate to not consider market growth for the first year of the cash flow.

Letting and re-letting costs In our calculations Letting Costs have been estimated in the order of 10% of the gross rent as per current market practice.

Purchase Costs The purchase costs to arrive at the gross market value have been estimated in the amount of 5.00% (inclusive of applicable taxation – please refer to section 3.3 below).

Disposal Costs We have considered the disposal costs in the exit year of the cash flow in the order of 1.00% of the Exit Value.

3.3 Tax Matters Value Added Tax Our valuation does not take into account VAT.

Register Tax, Cadastral Tax and Mortgage Tax For the purpose of the subject valuation analysis we considered the taxes related to the purchase of a property as follows: 1) Register Tax (€200)

2) Mortgage Tax (3%) 3) Cadastral Tax (1%) In accordance with professional practice, these costs have been calculated as percentage on the Market Value estimated by us and reported in the relevant section of the present valuation report. We would like to bring your attention that the total purchase costs adopted are equal to 5.0% of the Market Value. This includes legal advisory, technical and commercial fees, etc. of 1.0% and takes into account the above mentioned taxation of 4%.

1Source: Consensus Economics Long Term Forecast – Latest available long term forecast April 2014.

4 Market Overview

4.1 Economy Macro-economic forecasts for Italy are finally improving, with Italy finally expected to exit its two-year recession from Q1 2014. Positive growth is then expected from Q2 2014 with an annual GDP growth rate estimated at +0.5% (Consensus, December 2013) thanks to an upturn in export demand mostly from the Eurozone, where approximately 55% of Italy’s output is directed. The employment rate, however, is worsening as occurred in other G8 countries in the first phases of their own recovery. It is expected to start recovering in 2015; importantly, financial and business services annual employment is also expected to increase between 2014 and 2015 when household consumption is also finally expected to return positive after a -0.1% estimated for 2014. Industrial production, importantly, is at last projected to start growing again in 2014. Overall, the latest Consensus forecasts report of greater optimism among respondents. The European Commission’s Economic confidence indicators also reflects strengthened perceptions among Italian service sector, retail trade and industrial players, with Italy moving up the overall ranking by four places and taking over France and Poland. Policy changes owing to the newly formed government under the helm of Matteo Renzi are to be monitored throughout 2014 to assess any relevant impact on the Commercial Real Estate sector.

Key Indicators

2012 2013 2014 Forecast GDP Growth rate1 -2.2% -1.8%  0.5% 

Unemployment rate1 10.6% 12.2%  12.6% 

Inflation rate1 3.1% 1.6%  1.1% 

Household consumption1 -3.6% -2.5%  -0.1% 

Industrial production1 -6.5% -3.2%  1.1% 

10 yrs BTP yield2 4.497% 4.125%  4.1% ► 1Consensus Forecast, December 2012, January 2014 forecasts 2 Bloomberg, 15/01/2014 and Consensus Forecast January 2014

4.2 Real Estate Office Market Overview of Milan Key Indicators

Change* Outlook Key indicators Q1 2014 Q-o-Q Y-o-Y 12 months Take-up (000s sq m) 52 -55% +117%  Vacancy (000s sq m) 1.66 +3.8% +7.71%  Vacancy rate (%) 13.3 +120 bps +130 bps  Prime rent (€/sq m) 450 0% -6%  Completions (000s sq m) 33.2 +170% -64%  Prime Net Yield % 5.15% 0 bps +5bps n.a % change for prime rents, investment volumes and capital values calculated in Euro.

General Overview – Stock, Vacancy, Pipeline The total office stock in Milan at Q1/2014 is of approx. 12.510 million sq m. The majority of the Milan office stock is concentrated in the Periphery, with just over 3.6 million sq m of office space scattered across the locations of Certosa, Lorenteggio, Navigli, Ripamonti, Lambrate, Forlanini and Bicocca, which has recently gained tenants’ interest thanks to the opening of the Bicocca underground station (north-west to north-east). The Hinterland is the second densest office location, including the main locations of Milanofiori, with Milanofiori Nord having recently become one of the most popular non-central locations in Milan, San Donato Milanese, Segrate and Sesto San Giovanni (south-west to north-east). The remainder office floorspace is located across the Semi-centre, Centre and CBD. Such locations have only recently seen a meaningful increase in development activity thanks to a number of important refurbishments and new high density schemes which are boosting their share of the overall Milan office market. On the supply side, approximately 33,000 sq m of office space was delivered in Q1, of which 22,000 sq m involved the pre-let HQ of Nestlè in Milanofiori Nord – delivered at the beginning of the year whilst the remaining 11,000 sq m are speculative and located in the CBD (Porta Nuova Isola – new development) and in the semicentre (refurbishment). This combined with the series of releases mostly in the Centre and Periphery sub-markets has led to the increase in the vacancy rate to 13.3%. The development activity in 2013 was concentrated in the in the CBD sub-market (Porta Nuova & Varesine scheme - 91,400 sq m) so contributing to the increase in the available Grade A floorspace in central and well accessible locations. The Q1/2014 speculative completions were concentrated in the CBD once again, with the delivery of 8,500 sq m of office space within Porta Nuova Isola scheme and some additional 2,700 in the semi-centre of which 2,100 is currently available on the market. The pipeline over the next three years remains limited with approximately 185,000 sq m under construction and expected to be completed by 2017. Of this, however, less than 100,000 sq m is speculative office space. The schemes under construction are equally split between new constructions and refurbishments, mainly located in the CBD.

Letting Market . The first quarter of 2014 continues to reflect the dynamics recorded in the Milan letting market over the last two years, as renegotiations undertaken over the past 24 months have prolonged the life of leases that were due to expire in 2014 . Nonetheless, the Q1 take up has been quite active, with quarterly take up reaching 52,000 sq m, an increase on Q1/2013 (+117%) and broadly in line with the five year quarterly average (63,000 sq m) . The number of transactions has also grown, and is higher than the five year average, resulting in a decrease in the average deal size (approximately -35% on the five year quarterly average) . During the last 12 months (Q1/13 – Q1/14) the take up activity has been growing in the central sub- markets, which have benefited from a significant repricing over 2013. The Centre and the CBD sub- markets have together accounted for almost the half of number of transactions registered in this period (76 of 163 total) . Thanks to such activity in the CBD and Centre, the share of transactions priced more than €300/sq m p.a. has grown compared to 12 months period to Q1/2013 (Q1/12-Q1/13), from 15% to 35% of the total number of deals recorded

. The importance of quality in occupiers’ decision making was confirmed as approximately 65% of the absorbed floorspace in the analysed 12 months (Q1/13-Q1/14) has regarded Grade A buildings, slightly above the five year average annual (48%)

. Once again Manufacturing confirms as the leader sector that drives the take up activity (+39%) with growing importance for Services (+22%), thanks to the activity driven by international corporates mainly located in the central zones of the city (Centre, Historical Centre and CBD) . The recovered level of activity in prime locations suggests a stabilisation in prime face rents, which were thus confirmed at the level of Q4/2013 - €450/sq m as well as average incentive levels

Milan, Office Prime Rents Q1.2014

Source: JLL Research – April 2014

. The outlook for the rest of 2014 is stable: the overall annual take up is expected to be in line with the 5 year average, mostly due to sustained consolidation activity and the overall market friendly conditions. In the short to medium term it is still unclear whether the reforms announced by the new Renzi government, including the Jobs Act and tax reforms, will have a positive impact on corporates’ business and their real estate choices as a result.

Investment market . The disconnection between occupier trends (sluggish) and those in the investment markets (buoyant) throughout 2013 has been raising some concerns about the sustainability of the real estate upturn. JLL’s latest real estate data, while generally positive, suggest that these worries have not yet gone away. However, the improving macro-economic outlook lending conditions, particularly strong expectations about the impact of the recovery on future rents, have been fuelling growing investors’ confidence. . Investment volumes at a global level have witnessed the traditional seasonal dip in Q1, with quarterly volumes totalling just under €100m and down by 35% on Q4 2013. The increase on Q1 2013, however, paves the way for expectations of a year-end increase in 2013 by more than 10%. Yield compression in Q1 occurred across a range of countries and sectors, including UK regions, Dublin, Prague, Madrid, Lisbon, London (retail) and Paris (offices). No single market recorded higher prime yields than at end- 2013.

. In Italy Q1 has marked a further improvement on 2013, with approximately €820m worth of investment, up by 25% year-on-year and well above the five year Q1 average of approximately €730m. This represents 2% of the overall €36bn recorded at EMEA level. . The retail sector is once again the most dynamic, with eight out of 14 transactions, for a total of €290m. All deals were small lot size purchases by domestic investors, with an average deal size of about €36m that is just above the five year average of approximately €60m. . Q1 featured two long-rumoured portfolio deals: FAP Investments’ portfolio of 11 logistics assets located in northern and central Italy reportedly acquired by Blackstone for a price in the region of €150m to €200m. The other is a German open ended fund’s mixed use portfolio totalling approximately 200,000 sq m, once again to Blackstone. Other portfolio operations are ongoing across a range of sectors, including Klepierre’s recent purchase of seven galleries across Italy. . Overall, investors continue to target the Italian investment market with a variety of investment profiles. Q1 and on-going activity has focused on core assets on one hand as well as on assets with repositioning potential or purely opportunistic deals on the other. While Italy is still far from being considered a core market for global players, the number of non-opportunistic investors taking an active interest in investment opportunities in Italy is growing. . Ongoing activity confirms that non-domestic investors are still counting on a recovery of Italy’s real estate market performance, either in terms of country risk alone (reflected in a wider tendency towards yield compression) or in terms of real estate fundamentals for prime assets. The appetite is also growing for product offering opportunities for value uplift through an active asset management strategy. . The figure below sets Q1 2014 in context by offering an overview of the young Italian Commercial Real Estate office market, from 2003 to date. While the prime net yields have already started to move in at the end of 2013 in the Retail sector (currently at 6.35% net), both the Logistics and the Office sector (at 7.80% and 5.15% in Milan respectively) are yet to experience some compression, which is expected over the next 12 to 24 months.

Total Commercial Real Estate investment volumes, € bn (left axis)

Prime net yields, All sectors, % (right axis)

Source: Jones Lang LaSalle Research, April 2014 . Value uplift expectations for good secondary as well as repositioned assets are consistent with letting market trends that have been strengthening during the crisis

. The Office sector has performed weakly, with approximately €152m invested, compared with €430m (- 65%) in Q1 2013

. Milan, in particular, has registered two transactions, that represent the totality of investment volume in the office sector during the considered period; this is in line with evidence from the 12 months leading to Q1 2014, which have seen Milan attract most of investors’ interest with 77% of the office investment volume directed to Milan . After revising prime net yields slightly upward at the end of 2013, in Q1 values are stable at 5.15%

4.3 Real Estate Office Market Overview of Rome The office stock in Rome amounts to 12.1 million sq m. Most of the stock is concentrated in the E.U.R sub- market, the Core, Colombo, Laurentina, Torrino and Ostiense macro areas and the Semi Centre. The E.U.R. and Semi Centre markets represent 60% of the total office space stock in Rome. Q1 totaled 21,000 sq m of take-up marking a decline on both Q1 2013 and the five year quarterly average (-40%). The slowdown is mostly the result of a decline in the average deal size (approximately 1,000 sq m), which has resented from the lack of large owner occupation deals that characterised 2013.

Grade A floorspace represented just under a third of the quarterly and the 12 month rolling take up, in line with evidence that quality is an important but not crucial driver of tenants’ locational choices in the Rome market. At a

geographical level, the E.U.R. sub-market has been the most active in Q1 2014 (accounting for approximately 35% of take up) as for the 12 month rolling (approximately 45%). On the supply side, the overall choice is broadly stable at 5.2%, with some speculative schemes completed during the quarter. Looking ahead, the pipeline for the next three years adds to approximately 155,000 sq m, the majority of which is new-build.

Letting Market . The take up activity of office space in the first quarter of 2014 totals approximately 21,000 sq m, a decrease of approximately 38% if compared to Q1/2013, the take up data was also under the five year quarterly average (38,000 sq m)

. In Q1 2014 the 30% of the spaces were taken up by IT companies, followed by manufacturing, media and communication sector, while in 2013 the financial company was the occupier sector most active, representing 43% of the total take-up . 60% of the annual take up (Q1 2013 – Q1 2014) involved Grade A building, approximately 10% up on the annual average. The Grade A building take up is in decline by ca. 20% if compared to Q1 2013 . The deal size most frequent is represented by office portion under 500 sq m (30%), followed by office space between 1,000 sq m and 2,000 sq m . In terms of sq m take up, the most active sub-market in terms of take-up was EUR Sub-markets with a total of 9,600 sq m letting transaction, while the most flat markets were Tiburtina and Core EUR sub- markets . Q1/2014, the prime rents have remained stable at €400/sq m and the forecast is unchanging for the next 12 months . The offices most rented fall between the rental band of €300/sq m and €400/sq m (30%), followed by the band between €200/sq m and €300/sq m . The outlook foresees a decrease of the take up and an increase of the vacancy rate, while the prime rent will remain stable. The new completions are expected to increase.

Rome, Office Prime Rents Q1. 2014

Source: JLL Research – April 2014

. Investment volumes at a global level have witnessed the traditional seasonal dip in Q1, with quarterly volumes totalling just under €100m and down by 35% on Q4 2013. The increase in Q1 2013, however, paves the way for expectations of a year-end increase in 2013 by more than 10%. Yield compression in Q1 occurred across a range of countries and sectors, including UK regions, Dublin, Prague, Madrid, Lisbon, London (retail) and Paris (offices). Not a single market recorded higher prime yields than at end-2013. . In Italy Q1 has marked a further improvement on 2013, with approximately €820m worth of investment, up by 25% year-on-year and well above the five-year Q1 average of approximately €730m. This represents 2% of the overall €36bn recorded at EMEA level. . The retail sector is once again the most dynamic, with eight out of 14 transactions, for a total of €290m. All deals were small lot size purchases by domestic investors, with an average deal size of about €36m that is just above the five year average of approximately €60m.

. Q1 featured two long-rumoured portfolio deals: FAP Investments’ portfolio of 11 logistics assets located in northern and central Italy reportedly acquired by Blackstone for a price in the region of €150m to €200m. The other is a German open ended fund’s mixed use portfolio totalling approximately 200,000 sq m, once again to Blackstone. Other portfolio operations are ongoing across a range of sectors, including Klepierre’s recent purchase of seven galleries across Italy. . Overall, investors continue to target the Italian investment market with a variety of investment profiles. Q1 and ongoing activity has focused on core assets on one hand as well as on assets with repositioning potential or purely opportunistic deals on the other. While Italy is still far from being considered a core market for global players, the number of non-opportunistic investors taking an active interest in investment opportunities in Italy is growing. . Ongoing activity confirms that non-domestic investors are still counting on a recovery of Italy’s real estate market performance, either in terms of country risk alone (reflected in a wider tendency towards yield compression) or in terms of real estate fundamentals for prime assets. The appetite is also growing for product offering opportunities for value uplift through an active asset management strategy. . The figure below sets Q1 2014 in context by offering an overview of the young Italian Commercial Real Estate office market, from 2003 to date. While the prime net yields have already started to move in at the end of 2013 in the Retail sector (currently at 6.35% net), both the Logistics and the Office sector (at 7.80% and 5.15% in Milan respectively) are yet to experience some compression, which is expected over the next 12 to 24 months.

Total Commercial Real Estate investment volumes, €bn (left axis)

Prime net yields, All sectors, % (right axis)

Source: Jones Lang LaSalle Research, April 2014

. Value uplift expectations for good secondary as well as repositioned assets are consistent with letting market trends that have been strengthening during the crisis

. The Office sector has performed weakly, with approximately €152m invested, compared with €430m (- 65%) in Q1 2013 . The Office investment sector in Rome did not register any transaction activity during the first quarter of 2014. The market that represented the totality of investment volume in the office sector in Q1/2014 is Milan that attracts most of investors’ interest with 77% of the Office investment volume directed to Milan. . The prime net yield, in Q1 values is stable at 5.30%

4.4 Real Estate Office Market Overview of Turin Turin is one of the largest regional office markets in Italy. Two of the first largest 10 Italian companies by revenue have their headquarters in Torino. Five have important offices located within the city with more than 300-400 employees (up to 2,000-5,000 for Unicredit, Intesa San Paolo, Telecom and Finmeccanica). Moreover, Turin hosts 17 companies listed on the Italian Stock Exchange (BasicNet, FIAT, Prime Industria, Reply, Juventus, etc.) and several foreign corporates which have their Italian headquarters in Town (Michelin, GM Powertrain, Denso, Kimberly-Clark, etc.). Other important companies are historically located in Turin (RAI Broadcasting, Lavazza, United Nations, Fondiaria-Sai, Reale Mutua, etc.) According to Jones Lang LaSalle estimates, Turin Province office stock is approximately 4 million sq m. About 10% of total office stock is occupied by the Public Sector and around 850,000 sq m. of office stock is distributed out of town spread across different Municipalities within the Province. Compared to the Milan and Rome prime markets, Turin has no specific office location or district, where a consistent office stock is concentrated. Even though we confirm that no real office business district exists in Turin, it is possible to identify nine sub-markets reported in the graph below.

A relevant proportion of office stock in the Torino Province is obsolete therefore not attractive for the market. This is mainly due to age, inefficient layout distribution and energy performance.

In the last 10 years many offices have been built in Torino both for owner occupiers (SEAT PG, GM Powertrain, Amiat, etc.) as well as speculative, mainly in the semi-centre and periphery, usually in industrial contexts. Many other initiatives regarded office buildings refurbishments, as, for example, the building in Marconi Avenue (former FIAT), the new headquarters for Torino Province (former Telecom), the building in Lugaro street (former Intesa San Paolo). Many other old business buildings located in the historical city centre are ongoing or will be converted to residential use (Palazzo Martini di Cigala – former AXA, C.so Matteotti – former Exor, Palazzo Gualino – former Torino Municipality, etc.). This is a very strong trend and is likely to reduce office available stock and hence the vacancy rates in the historical centre and along the Po river axis, towards areas that are characterised by a more modern, efficient and accessible offer.

Letting Market . Generally, 30-35% of yearly take up has been expressed by corporates for medium and large new offices (>1,000sq m) . Take up is driven by three different categories of occupiers: Local professionals and service sector companies (size units below 1,500sq m); Local corporates, financial, insurance and other business sector companies (generally owner occupier of large size units);International corporates (size units above 1,500-2,000sq m) . Torino City prime office rents averaged €140/sq m p.a. Some iconic and historical buildings located in the city centre can reach higher rents, in the range between €170-€180 sq m p.a. (asking) if they are fully refurbished buildings. . Lack of good quality stock availability in central locations and local vacancy levels are the main factors driving the prime rents trend . In Turin the limited extension of the subway lines offer (the most priced by the market) makes this element less significant. The choice of some companies to move closer to the city centre from the suburbs is driven by the need to have an easier access to human capital and essential services (hotels for clients, bars, restaurants, etc.). . With a «tenant friendly» market such as the current one there are a large number of renegotiations in progress, with a reduction of rental levels up to 10-20%.

4.5 Real Estate Office Market Overview Regional Markets The Italian office market is a two-tier market featuring Milan and Rome on one hand and regional markets on the other. Milan and Rome are dynamic office markets attracting large national and international corporate occupiers, with a variety of sub-markets to suit a range of tenants. The term regional markets refer instead to small and medium sized office markets gravitating around provincial cities across the country; these include for instance Turin. The smaller towns such as Treviso, Venezia and Trieste are considered very smaller secondary regional markets. Milan and Rome have historically been the two main Italian office markets. Rome has a wide range of public sector tenants, including publicly participated entities, alongside international corporates from all sectors such as P&G, Colgate-Palmolive , Accenture, Ernst & Young and Esso. Milan has a more markedly private business base, with a strong manufacturing component including Nestlè, Unilever, Shell Italia, Mediaset, Pirelli, and all major Italian and international investment banks such as JP Morgan, Morgan Stanley, Goldman Sachs and business consultancies such as the Boston Consulting Group, Bain, PWC, Accenture, etc.

Limited transparency is a typical characteristic of the regional market. Often the result of a fragmented ownership and a dominant role played by private domestic players, it mostly affects regional markets. As a result accurate monitoring of such markets is much more difficult to achieve. Outside the main office markets of Milan and Rome are a variety of regional markets. Inner city locations are likely to offer a range of office solutions including both stand-alone office buildings and, more often, residential units converted to office use. In town office units tend to be mostly between 50–100 sq m in size up to approximately 300 sq m. Occupiers within those locations are generally local players, including law or tax advisor firms, as well as Italian services and manufacturing companies covering local markets and public sector players. Some markets may benefit from the presence of manufacturing or retail companies operating at a national or international level, but in general such tenants are likely to prefer peripheral locations adjoining their production facilities with built-to-own or pre-let deals.

Investment Transactions The number of comparable investment deals for which price and yield information is publicly available is quite limited. Below is a summary table of the transactions above €5m in value, publicly recorded in the market.

Investment Date of Property Sub-market Sale price sq m GIY Type transaction Piazza Vittorio Centre €11,700,000 3,650 7.30% Investment October 2013 Veneto 11,Bergamo Via Manzoni, Centre €9,700,000 6,900 8.60% Investment June 2013 Palermo Via Bolzano 30, CBD €29,000,000 20,000 8,25% Investment June 2013 Turin

Property Report

Rome, Via Pianciani 26

5 Rome, Via Pianciani 26

5.1 Location The property under analysis is located in Via Pianciani no.26 in Rome. Rome is the capital of Italy as well as the capital city of the province of Rome and of Lazio region. It is located in the central-western sector of Italy on the River Tiber. As at 1 January 2013, the city ‘s resident population was 2.6 million and it is the country’s largest and most populated municipality. Inside the city boundaries is Vatican City which is an independent country – the only example of a country within a city existing today. Rome is one of the most visited cities in the world and the most popular tourist attraction in Italy. Its historical centre is listed by UNESCO as a World Heritage Site. The property falls within Castro Pretorio XVIII Rione of Rome (one of the districts of Rome) that delimits the city centre. The first urbanisation of this area dates back to the period between the second half of 800 extending to 1920, in fact the area of analysis is mainly characterised by the presence of historical buildings mainly of mixed use with offices and residential units on the above ground floors and some retail units on ground floor levels. The property is well located, just a few minutes away from Termini railway station. The area of analysis is not a traditional tertiary district and the presence of offices is limited to the offices of the local Public Administration, Ministries that occupy entire buildings; exception made for this, the stock is characterised by smaller office units (500sq m -1,000sq m) hosting attorney’s, notarial studies or private professional studies whose activity is fundamental to the central and easily accessible location. The area is not a primary retail destination either and it is comprised of mainly primary services (e.g. restaurants, bars, tobacconists, grocers etc.). The CBD of Rome is 3km away from the subject property.

5.2 Accessibility Road The property is positioned outside the area defined as ZTL (Areas subject to vehicular circulation restriction). It is easily accessible from Via Casilina, an important vehicular axis of the city that connects the eastern part of the GRA (Grande Raccordo Anulare) to the city centre. The GRA is approximately 10km from the property. Via Nomentana and Via Salaria, two of the main road axes connecting the north-eastern part of the city and its peripheral area, are positioned respectively 3km and 5km distance from the property. Rail The main city Railway Station, Roma Termini, is situated in Piazza del Cinquecento 1.5km from the property while the Roma Tiburtina Station is situated 4km to the north-east. Public Transport The property is served by several lines of public transport (all within a radius of 600m), such as: the underground stops of Manzoni and Vittorio Emanuele (on Line A, Battistini–Anagnina), the bus lines 105, 105L, N12, N 18 649 and tram lines 5 and 14.

Air Fiumicino International Airport is situated 31km to the south-west and is reachable by rail (from Termini rail station), bus line, and underground line as well as via the motorway network (A91 motorway). Ciampino Airport is situated 14km to the south-east of the subject property and is reachable by train (from Termini rail station), by bus, by underground (Anagnina stop, Line A) and via the motorway network (SS Via Appia).

5.3 Site and Property Description Site Characteristics and Accessibility The property forms part of a larger stand-alone building. The building is developed on an almost rectangular shaped land plot and is bounded by Via Principe Eugenio to the north-west, by Viale Manzoni to the south-west, by Via Pianciani to the east and Via Conte Verde to the south-east. The property has three pedestrian entrances and one vehicular entrance (from Viale Manzoni) leading to the covered parking level on the second basement floor. The pedestrian entrance to the offices is from Via Pianciani. The retail unit has two entrances: one serving as a customer entrance whilst the second as a secondary entrance servicing the storage areas, both on Via Principe Eugenio.

Property Description The property is a mixed use building (office and retail use) totalling a gross area of 13,504 sq m. It is developed on eight floors above ground and two basement levels. The ground floor hosts a retail unit (supermarket), the entrance and common areas, the floors from the first to the seventh floor host offices. The first basement level hosts the storages and the technical rooms, while the second basement level has 27 covered parking spaces and 37 motorbike parking spaces. The roof hosts the plant, and is partially accessible to grant maintenance to the machine and rooftop. The property was thought to have been built around around the 1960s, and was refurbished in 2010. It has a reinforced concrete frame structure; the rooftop is a hip-roof type. The façade is finished with stone elements incorporating aluminium frames. The retail unit is composed by a sale area and storage on the ground floor; the ground floor is connected to the storage and changing rooms on the first basement level via a staircase. The unit benefits from good visibility with shop windows on: Viale Manzoni, Via Pianciani and Via Principe Eugenio. The offices are positioned on the floors from the first to the seventh. The typical office floor (from the first to the fourth) has an almost rectangular layout presenting single offices with removable partitioning. The single offices are positioned next to the perimeter walls, and around the internal courtyards, creating a circular corridor distribution. The spaces have raised floors and suspended ceilings. The lighting is provided mainly by recessed elements positioned in the suspended ceiling and heating is provided by perimeter fan coil elements. The fifth and the sixth floor presents some differences if compared to the typical one described before, because of the presence of a balcony facing on Via Pianciani. The seventh floor has an “L” shaped terrace facing Viale Manzoni and Via Principe Eugenio and a balcony on Via Pianciani. The seventh floor differs from the other floors also in terms of equipment, in fact the spaces are not equipped with suspended ceilings, and the lighting elements are suspended. The offices are finished with either parquet (raised floor) or linoleum. The common spaces are finished with marble tiles both on the floors and walls.

The offices are equipped with primary air system, heating and conditioning via two pipes fan coils, CCTV security system and fire prevention system including: fire alarm, fire detection, water tanks, and hydrants. The parking spaces are equipped with sprinkler fire extinguishing system. The retail unit is served by a dedicated cooling and heating plant and is equipped with sprinkler system, hydrants, and anti-burglar system. Access to the upper floors is provided by: . Four lifts and two staircases serving the ground to seventh floor

. One staircase serving the second basement ground to the ground . One staircase serving the ground to the first basement . Three staircases serve the seventh floor to the rooftop

5.4 State of Repairs We inspected the property on 30 May 2014. Based on a purely visual inspection, it is our opinion that the overall state of repair of the property is good, showing only the usual signs of wear and tear.

Commentary We bring to the Client’s attention that during our inspection, the storage of the supermarket in the basement level and the control temperature storages on the ground floor were not accessible. Therefore in our analysis we have assumed their conditions are in line with the state of repairs of the property (overall good).

5.5 Accommodation For the purposes of this valuation we have adopted the following Gross Floor Areas (GFA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements either on site or on the plans. If more certainty is required we advise you to commission a measured survey of the building.

Storage Archives Tech. Office Retail Terraces Stairs Parking Total Floor Retail (sq Offices Rooms (sq m) (sq m) (sq m) (sq m) (sq m) (sq m) m) (sq m) (sq m)

-2 1,173 1,173

-1 1,088 58 107 1,253

G 1,147 151 58 1,356

1 1,308 86 188 1,582

2 1,307 80 1,387

3 1,304 80 1,384

4 1,304 80 1,384

5 1,250 54 80 1,384

6 1,199 60 80 1,339

7 847 337 78 1,262

Total 8,519 1,147 1,088 151 537 782 107 1,173 13,504

The property has a Gross Area of 13.504 sq m. The Gross Lettable Area (GLA) adopted in our analysis is 11,442 sq m. The GLA adopted includes the areas referred to in the table above under the columns: office, retail, storage retail, archive office and terraces. The GLA does not include the areas identified as common areas: stairs and technical rooms.

The above GLA does not include the areas for parking facilities as these have been valued based on there being 27 parking spaces and 37 motorbike parking spaces (in the second basement).

Commentary The TDD report provided states the property has a GFA of 14,678 sq m. When compared to the GFA above of 13,504 sq m this shows a difference in the order of +8.7%. This discrepancy has been detected in the following uses:

. Terraces: the TDD shows a less extended surface of the use “Balcony” if compared with IM data; the TDD does not show the presence of a balcony on the first floor

. Stairs: the TDD shows a more extended surface in the use “Internal common areas” if compared with use “Stairs” of the IM. The TDD includes the “Internal common areas” the following spaces: stairs, lifts, lifts landing and other common spaces on the ground floor. . Technical Rooms: the TDD shows a more extended surface in the use “Plant rooms” if compared with use “Technical rooms” of the IM. The TDD surface counting the technical area on the second basement level hosting heating/cooling plants etc., mainly air shafts at above ground levels, external plant room on the seventh level and other plant on the eighth level, while the IM reports just 107sq m of technical spaces at the first basement . Parking: the TTD shows a more extended surface in the use “Underground car parking”. The TDD counted in the parking area also includes ramps on the ground and first basement levels. . Archive Offices: the TDD counted the use “Archives offices” on the ground floor into another use (probably into retail or common area) . Office: the TDD shows the use “Residence” on the seventh floor for a total of 64 sq m, while the IM counted 64 sq m of the Residence use inside Office use. We deem appropriate to underline that, during the site visit conducted on 30 May 2014, we did not observe the presence of the residence spaces mentioned in the TDD.

. Retail Storage: the TDD shows a more extended surface of the use “Supermarket Storage Rooms” on the first basement level.

The TDD Report does not provide the area split per use, such as: office, storage, vertical circulation, horizontal circulation, hall etc. therefore for the purposes of this valuation we have relied on the areas contained within the IM. We understand that check measurements were not taken on site or from plans for the purposes of the TDD. Therefore the discrepancy could be due to the different sources of information used for the preparation of the IM and of the TDD report.

5.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, except for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . The only raw material potentially dangerous for the soil, subsoil and groundwater is the gasoline stored in underground tanks of the two thermal power plants;

Soil, Subsoil and Groundwater . The sampling showed hydrocarbon parameters exceeding the limits for residential, commercial and industrial use

. The EDD underlines that, based on the documents available in 2005, a land remediation of the contaminated soil has not been carried out; there is no evidence of the opening of an administrative procedure in accordance with the site remediation legislation . The EDD advises to inform the Local Authorities on the pollution and to start the procedure (administrative and technical) to remediate the soil pollution

GHG Emissions and ODS . The EDD underlines the absence of a proper management related to R134A-R410-R125 fluorinated greenhouse gases and advises to retrieve or set up a new declaration referred to article16 of the 43/2012 law, and to create a new machinery register with the plant maintenance activities.

Water Discharges . The EDD underlines that there is no documentation about the maintenance of the sewage system, the EDD advises to proceed with sampling the waste water of the supermarket

. The EDD report shows no evidence of the presence of de-oiling tanks necessary for the car parking spaces discharged water in the secondd basement floor. The EDD advise to install the de-oiling tanks.

Pathogens . The building hosts two AHU . The EDD reports that there is no evidence of proper management of the AHU in compliance with Accordo Stato Regioni. The EDD advises that an implementation of the sanitation of air treatment unit for each floor of the building is required.

Materials Containing Asbestos (AMC) . The site has been subject to reclamation of the following AMC: roof asbestos removal, linoleum, and seven water tanks, the two chimneys could be made with material containing asbestos. The EDD advises to conduct the AMC sampling campaign.

Man Made Vitreous Fibres (MMVF) . Disused piping insulation on the second basement floor could contain MMVF

. The EDD advises to conduct a MMVF sampling campaign.

The EDD report quantifies an amount equal to €127,000 for the necessary verification of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

Commentary We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material within the property, therefore if you wish for certainty regarding this issues we should advise you instruct a qualified surveyor.

5.7 Cadastral Data Based on the information reported in the TDD Report it is our understanding that the property under analysis is registered as follows:

Building Registry of the Municipality of Rome

Sheet Parcel Sub. Category 502 100 3 A/10 502 100 4 A/10 502 100 5 A/10 502 100 6 A/10 502 100 7 A/10 502 100 8 A/10 502 100 10 D/1 502 100 501 A/4 502 100 502 A/10 502 100 13 C/6 502 100 504 D/8 502 100 506 C/2 502 100 507 BCNC

502 100 508 BCNC

Land Registry of the Municipality of Rome

Sheet Parcel 502 100

5.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below: . A valid Building Certificate of Use (CDU) has not been made available for the purposes of the TDD analysis . Based on the new town planning instrument (PRG) drawing no.18-IV (Tavola 18-IV) the property falls within “Historical centre zone ”, “XX Centuries expansion area – T6” (“Sistema insediativo della città storica”, “Tessuti di espansione novecentesca a fronti continui – T6”)

− The uses permitted are: Residential, Retail up to medium surface unit, Service, Hotels (Motel excluded), light-industrial, isolated parking spaces

. Based on the “Building Quality Guide” (“Guida per la qualità degli interventi”) the property is defined as “building with special characteristics with service and office use” (“Edifici con tipologia edilizia speciale – ad impianto seriale - edificio per servizi ed uffici”) . The property falls within a UNESCO site: “Sito patrimonio Roma”

. The TDD underlines that the building interventions different from “ordinary maintenance” are subject to the approval of the Cultural Heritage Local Authority (“Sovraintendenza Capitolina dei Beni Culturali”).

The present valuation is based on the assumption that the property is used in compliance with the town-planning regulations and that the current use of the property (office use) is compliant with the planning tool in place. Moreover, we have assumed that all missing relevant building permits were regularly requested and granted by the Local Authority and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated with this aspect.

5.9 Building Certifications CPI – Fire Prevention Certificate . The TDD reports that the building does not benefit from a valid CPI . The retail unit CPI documentation was not made available for the TDD purposes . The office building portion has a compliance opinion (“Parere di conformità”) no.60293 issued on 21/09/2011 that reports that the building can host 462 people, as for class 3 office use

The TDD underlines that: . Clarifications must be given about the maximum number of employees allowed without modifications to the fire prevention procedure required

. It has to be verified if the adjustment works required in the above-mentioned compliance opinion, have been completed

. Documentation about office, lift and technical room (heating plant) utilisation were not made available for TDD purposes

Commentary For the purposes of this valuation we have considered in our analysis an amount of €95,000 relating to the fire prevention intervention or to recover missing documents. The amount has been estimated as part of the TDD analysis and reported in the TDD report.

Fitness for Use Certificate According to the TTD report, the Fitness for Use Certificate no.408 has been issued on 25/03/1964 (“Licenza di Abitabilità”) for a six floor above ground, one attic, and two basement level building for office and retail use. The TDD underlines: . An irregularity between Fitness for Use Certificate no.408 issued on 25/03/1964 and the Building Permit issued on 18/09/1963 no.458 . The absence of documentation certifying the regularity of the building

Commentary For the purposes of this valuation we have assumed that all irregularities (if any) will be rectified prior to the sale of the property – as mandatory by Law - and therefore no related risks & costs were taken into account in our analysis.

5.10 Annual Non-Recoverable Costs For the purposes of this valuation we have adopted the following non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €433,653 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance €10,028 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Property 0.80% on the Gross Rent. This amount represents the The IM Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Expenditure 4% The yearly Capital Reserves JLL Estimate has been estimated to reflect the future capital

expenditures to be sustained over the holding period starting from 01/10/2018. Service Charges €25.52/sq m To be applied to the vacant Borrower office spaces.

The following Capital Expenditures have been gathered from the Technical Due Diligence Report:

Period Building Defects Administrative Costs Source of Data 0 -6 months €205,500 none Technical Due Diligence Report 7-12 months €210,000 none Technical Due Diligence Report 13–60 months €502,500 none Technical Due Diligence Report

We highlight that the above reported CAPEX is inclusive of all cost related building defects given in the TDD report are included in the DCF model, while the “administrative costs” relating to missing documents and certificates have been excluded, as it appears reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

5.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis. Easements . The TDD reports the presence of an easement (reported in the original Notary deed n. 54026/13003 dated 17/06/1964), on the fourth boundary in favour of the Istituto Nazionale Delle Assicurazioni. The TDD report states that the effectiveness of the easement is to be verified . The TDD report states that the transformer room is subject to a loan for use for 30 years (in favour of ACEA), the related documents were not provided . The TDD underlines the absence of a legal obligation in favour of Rome Municipality (Notary deed no. 49522/11418 dated 23/08/1963) For further information, please refer to the TDD report. Commentary For the purposes of this valuation analysis we have assumed the subject property to be free from any onerous or unusual outgoings, covenants and/or restrictions, general or specific ground lease conditions, or other restrictions or rights of Third Parties.

5.12 Tenancy At the valuation date, the property is fully let to two tenants on the basis of two lease agreements and their further amendments. The main contractual details are summarised as follows:

Tenants & Areas

Storage Technolo N. Office Retail Storage N. Floor on Stairs Terraces gical Motorbike GLA GLA GLA PS Tenant Floor Rooms PS (sq (sq m) (sq m) (sq m) (sq m) (sq m) (sq m) m) G - 151 58 1 1,308 188 86 2 1,307 80 3 1,304 80 ANAS 4 1,304 80 5 1,250 80 54 6 1,199 80 60 7 847 78 337 -2 27 37 Emme G 1,147 più -1 58 1,088 107

Lease Dates & Break Options

2nd Lease Notes Lease 1 Lease Term Break Tenant Lease Start Term length Expiry Option Expiry ANAS 01/09/2010 6+6 31/08/2016 31/08/2022 - - Emme Più 01/03/2009 9+6 28/02/2018 28/02/2024 - -

Passing Rent, Step Rents and Headline Rent

Passing Date Step Tenant Step 1 HR Date HR Rent 1 ANAS 2,620,448 01/07/2014 2,227,381 2,227,381 01/07/2014 Emme Più 438,086 - - - -

Rent revision & Indexation

Tenant ISTAT Indexation % ANAS 75% Emme Più 75%

Commentary We bring to the Client’s attention that based on the lease contract integrations (letters) dated 11/06/2014 (N.5967) and 15/02/2013 (N.0021984). ANAS lease agreement is regulated by the Law no.135/2012 “Spending Review”, foreseeing:

. Rent reduction of 15% of the annual rent from 01/07/2014 . Relief from ISTAT indexation from 7/07/2012 to 31/12/2014

5.13 Letting and Investment Transactions Letting Transactions The table below illustrates recent, relevant office letting transactions in the Rome market:

Date of Location Sub-market sq m €/sq m Quality transaction Via S. Vitale 19 Centre 1,000 €280 Grade A Q4/2013 Via Varese 16B Centre 1,600 €230 Grade B Q1/2014 Via Puccini 6 Centre 550 €310 Grade B Q1/2014 Via G. Belli 122 Centre 270 €320 Grade B Q1/2014

The letting transactions report the headline rents; we are not aware of the level of incentives granted to the Tenants.

Investment Transactions The investment market in Rome did not register any transaction activity during Q1/2014. We have provided some of the most recent investment transactions closed in Rome.

GLA sq Investment Date of Property/Location Sub-market Sale price GIY m Type transaction Owner Via dei Villini 5 Centre €8,000,000 2,000 N.a. Q2/2013 Occupation Via Aureliana 12 CBD €72,000,000 18,873 6.12% Investment Q2/2013 Via Laurentina 445 EUR €37,00,000 6,105 Confidential Investment Q3/2013

We bring to the Client’s attention that the transactions reported in the table above are not directly comparable with the property under analysis, due to the reference sub-market and the investment type.

5.14 Market Rent The Market Rent we have adopted takes into account the use of the property, its location, age, state of repair and maintenance. We have adopted the following Market Rents: . €240/sq m for office use

. €265/sq m for retail use

. €1,000 for each motorbike parking space . €2,500 for each covered car parking space The estimated Market Rent has been weighted according to use as follows:

. Offices: 100% . Retail: 100% . Storages: 33%

. Vertical Circulation: 0% . Terrace: 0% . The car parking spaces have been valued on a number of parking space bases. The total Market Rent is of €2,560,120. The Gross Income as at 1st July 2014 is €2,665,487 while the at the valuation date is €3,058,534 (due to the pre-discount rent of ANAS).

Marketing Assumptions Our Market Rent estimate considers the following marketing assumptions: . Letting Void (at renewal): Nine months

. Rent free period: Six months . TI’s: €120/sq m equal to six months of rent.

Comments The adopted Market Rent for the office space is line with market evidence for Grade B office buildings in central locations but situated outside of the CBD; the estimated Market Rent also takes into account the impact of the surrounding characteristics and the overall appeal to generic tenants. The Market Rent applied to the retail unit considers the potential unit appeal for similar market occupiers due to the consistent residential component in the surrounding area and the lack of direct competitors near-by.

5.15 Future Income Performance The main tenant is a Public Entity subject to the spending review measures which foresees the block of the CPI (annual indexation) until 1 January 2015 and to a rebate of the annual rent in the amount of 15% from 1 January 2015. Due to a recently introduced decree the Tenant has applied for the rental discount -15% prior to the aforementioned date; the present valuation is already based on the reduced rental income. The office component rental income is largely in line with the estimated market rental value and the renewal of the lease contract at the same conditions. The renegotiation of the lease contract for the retail component at market rental level has been assumed at the first lease break foreseeing a rent free period of six months.

5.16 Valuation Data The DCF analysis is based on the following parameters: Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date Gross Rent as at the Valuation Date: €3,058,534 Letting Void (renewal) Nine months Rent Free period (current & future Six months vacancy): Tenant Improvements (Capital €120 (equal to six months’ rent); contribution future leases ): Non recoverable costs: Annual non-recoverable costs include: . Property tax (IMU): €433,653p.a. . Building Insurance: €10,028p.a. . Building Management: 0.80% on the gross rent . Capital Reserves 4% on the gross annual rental income starting from 01/10/2018 . CAPEX Urgent: €205,500 . CAPEX 6-12 months: €210,000 . CAPEX 13-60 months: €502,500 . Service Charges: €25.52sq m (on GLA and applicable only for vacant spaces . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent Gross Initial Yield: 9.35%; Net Initial Yield: 7.50%; Gross Exit Yield: 7.90%; Net Exit Yield: 6.05%; Equivalent Yield: 5.85%; IRR (unleveraged): 7.00%.

Comments The adopted gross initial yield is influenced by the over-rent situation as at the valuation date; the gross yield as at 1st July 2014, based on the reduced rent of the main tenant stands at 8.15%, as it is only influenced by the over-rent situation of the retail unit. Our analysis is benchmarked on the gross yield evolution taking into account, as a point of reference, the income generated as at 1st July 2014. It is our opinion that the adopted yields reflect the current market appreciation for Grade B properties in central locations but outside of the CBD. The net yield

reflected in the valuation falls within the expected prime yield range for similar central locations of between 5.70% and 6.95%.

5.17 SWOT ANALYSIS Strengths . The property provides good quality office accommodation both considering its technical specifications and state of repair . The property was refurbished and adapted to match the market requirements for office space and the benefit of car parking facilities . The property is situated close to Termini Railway Station

Opportunities . To enhance the property liquidity by renegotiating a long term lease at market rental level for the retail unit

Weakness . The building is not situated in an office district and its surrounding area is characterised by residential blocks of average/good quality in average/poor state of repair . The retail offer in the area can be described as average

Threats . Limited upside for value enhancement in the medium term . Potential decreasing appeal of the location due to the turnover in the retail offer

5.18 Alternative use The property is not suitable for an alternative use considering its typology and current planning use without foreseeing its redevelopment and a change of use procedure.

5.19 Saleability The property would represent an appealing investment opportunity for a wide range of investors considering its volume, the secured income flow, mainly generated by ANAS, and the limited management necessary to preserve its value in the short term.

5.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property: . The present analysis is based on the gross built area GLA of the asset of 11,442 sq m

. We have considered an average construction cost per sq m based on market benchmarks of approximately €1,300/sq m on GLA reflecting an overall construction cost of €14,874,600

. We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution (10% on the construction costs). Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs.

On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approximately €18,280,000 (rounded) reflecting a cost of €1,598/sq m of GLA.

5.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is:

€2,560,000 (rounded) (Two Million Five Hundred and Sixty Thousand Euros)

5.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows: €32,700,000 (Thirty Two Million Seven Hundred Thousand Euros)

The above reported Market Value reflects a Net Value, after the deduction of purchaser’s costs of acquisition of 5.00%. Our assessment of the Gross Value before deduction of purchaser’s costs is as follows: €34,335,000 (Thirty Four Million Three Hundred and Thirty Five Thousand Euros)

42 Appendix 1

Location

Macro Location

Via Pianciani 26, Rome

Micro Location

Via Pianciani 26, Rome

Appendix 2

Photos

Via Pianciani 26, Rome

External Pictures

Via Pianciani 26, Rome

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Rome,16,Via Panciani,Rome File/Ref No 1

Gross Valuation €35,275,392 Capital Costs -€918,200 Net Value Before Fees €34,357,192

Less Stamp Duty @4.00% of Net Value -€1,308,845 Agents Fee @0.75% of Net Value -€245,409 Legal Fee @0.25% of Net Value -€81,803

Net Valuation €32,721,135 Say €32,700,000

Equivalent Yield 5.6531% True Equivalent Yield 5.8599% Initial Yield (Deemed) 7.4951% Initial Yield (Contracted) 7.4951% Reversion Yield 5.7652%

Total Contracted Rent €3,058,534 Total Current Rent €3,058,534 Total Rental Value €2,560,120 No. Tenants 2 Capital value per m² €2,651.85

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €3,058,534 €2,575,104 7.4951 % 7.8598 % 01-Jul-2014 €2,665,467 €2,187,147 6.3659 % 6.6275 % 28-Feb-2018 €2,227,381 €1,754,756 5.1074 % 5.2747 % 28-Aug-2018 €2,626,482 €2,148,668 6.2539 % 6.5062 % 01-Oct-2018 €2,626,482 €2,043,609 5.9481 % 6.1760 % 01-Sep-2022 €2,560,120 €1,980,764 5.7652 % 5.9791 %

Yields based on €34,357,192

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold Anas NA 31-Aug-2022 €2,620,448 Unrounded €2,161,019 All Units Initial Yield 7.300 €30,535,134 Emme Più NA 29-Feb-2024 €438,086 Unrounded €399,101 All Units Initial Yield 7.300 €4,740,259 Total €3,058,534 €2,560,120 €35,275,392

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Rome,16,Via Panciani,Rome,Rome DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €34,335,000 Geared IRR 6.9858% Start: Acquisition Fee @ 5.0000% -€1,635,000 Ungeared IRR 6.9858% Start: Net Value €32,700,000

Exit Results

Exit: Gross Value €38,052,766 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €38,052,766 Exit: Vendors Fees -€380,528 Exit: Rent adjustments €0 Exit: Adjusted Net Value €37,672,239

Exit: Rent payable (gross) €2,965,356 Exit: Market rent (gross) €3,031,455 Exit: Rent receivable (net) €2,302,192 Exit: Market rent (net) €2,368,291 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 6.0500% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 6.0500% (Net Rent / Net Value X 100) Exit: Net Revn Yield 6.2237% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 6.2237% (Net ERV / Net Value X 100) 7.9665% (Gross ERV / Gross Value X 100) 7.9665% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 5.9458% Exit: Vendors Fees 1.0000% (-€380,528)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€33,892,441 €666,367 €0 €2,560,120 -€223,808 €0 1.0000 -€33,895,134 2 05-Sep-2014 04-Dec-2014 €443,869 €666,367 €0 €2,560,120 -€222,497 €0 0.9771 €433,714 3 05-Dec-2014 04-Mar-2015 €441,692 €666,607 €0 €2,560,120 -€224,915 €0 0.9605 €424,238 4 05-Mar-2015 04-Jun-2015 €441,928 €667,065 €0 €2,565,099 -€225,137 €0 0.9443 €417,315 5 05-Jun-2015 04-Sep-2015 €425,039 €671,032 €0 €2,572,124 -€245,993 €0 0.9288 €394,776 6 05-Sep-2015 04-Dec-2015 €550,381 €671,032 €0 €2,579,168 -€120,651 €0 0.9136 €502,809

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Rome,16,Via Panciani,Rome,Rome DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €550,487 €671,370 €0 €2,586,232 -€120,883 €0 0.8980 €494,356 8 05-Mar-2016 04-Jun-2016 €550,806 €672,024 €0 €2,596,042 -€121,218 €0 0.8830 €486,341 9 05-Jun-2016 04-Sep-2016 €430,709 €677,911 €0 €2,607,006 -€247,202 €0 0.8682 €373,925 10 05-Sep-2016 04-Dec-2016 €555,897 €677,911 €0 €2,618,015 -€122,015 €0 0.8539 €474,687 11 05-Dec-2016 04-Mar-2017 €556,038 €678,414 €0 €2,629,072 -€122,376 €0 0.8394 €466,734 12 05-Mar-2017 04-Jun-2017 €556,567 €679,371 €0 €2,641,556 -€122,804 €0 0.8253 €459,320 13 05-Jun-2017 04-Sep-2017 €438,376 €687,233 €0 €2,654,667 -€248,857 €0 0.8115 €355,731 14 05-Sep-2017 04-Dec-2017 €563,469 €687,233 €0 €2,667,841 -€123,764 €0 0.7982 €449,737 15 05-Dec-2017 04-Mar-2018 €522,977 €647,172 €0 €2,681,082 -€124,195 €0 0.7845 €410,278 16 05-Mar-2018 04-Jun-2018 €451,414 €574,562 €0 €2,693,918 -€123,148 €0 0.7711 €348,101 17 05-Jun-2018 04-Sep-2018 €372,565 €621,751 €0 €2,706,624 -€249,186 €0 0.7578 €282,338 18 05-Sep-2018 04-Dec-2018 €534,949 €687,915 €0 €2,719,389 -€152,966 €0 0.7460 €399,063 19 05-Dec-2018 04-Mar-2019 €535,048 €688,430 €0 €2,732,216 -€153,382 €0 0.7333 €392,348 20 05-Mar-2019 04-Jun-2019 €535,549 €689,363 €0 €2,743,185 -€153,814 €0 0.7210 €386,105 21 05-Jun-2019 04-Sep-2019 €542,353 €696,795 €0 €2,753,415 -€154,442 €0 0.7091 €384,609 22 05-Sep-2019 04-Dec-2019 €541,924 €696,795 €0 €2,763,682 -€154,871 €0 0.6973 €377,874 23 05-Dec-2019 04-Mar-2020 €542,049 €697,253 €0 €2,773,989 -€155,204 €0 0.6854 €371,529 24 05-Mar-2020 04-Jun-2020 €542,374 €698,057 €0 €2,786,765 -€155,683 €0 0.6739 €365,511 25 05-Jun-2020 04-Sep-2020 €549,366 €705,805 €0 €2,800,595 -€156,439 €0 0.6628 €364,145 26 05-Sep-2020 04-Dec-2020 €548,818 €705,805 €0 €2,814,494 -€156,987 €0 0.6517 €357,691 27 05-Dec-2020 04-Mar-2021 €548,943 €706,380 €0 €2,828,462 -€157,436 €0 0.6407 €351,686 28 05-Mar-2021 04-Jun-2021 €549,449 €707,422 €0 €2,842,500 -€157,973 €0 0.6299 €346,085 29 05-Jun-2021 04-Sep-2021 €557,610 €716,395 €0 €2,856,607 -€158,785 €0 0.6196 €345,474 30 05-Sep-2021 04-Dec-2021 €557,039 €716,395 €0 €2,870,785 -€159,356 €0 0.6092 €339,342 31 05-Dec-2021 04-Mar-2022 €557,166 €716,978 €0 €2,885,032 -€159,812 €0 0.5988 €333,646 32 05-Mar-2022 04-Jun-2022 €557,679 €718,036 €0 €2,899,350 -€160,357 €0 0.5888 €328,335 33 05-Jun-2022 04-Sep-2022 €560,702 €721,518 €0 €2,913,739 -€160,816 €0 0.5791 €324,704 34 05-Sep-2022 04-Dec-2022 €566,870 €728,714 €0 €2,928,200 -€161,844 €0 0.5694 €322,783 35 05-Dec-2022 04-Mar-2023 €567,000 €729,307 €0 €2,942,733 -€162,307 €0 0.5597 €317,366 36 05-Mar-2023 04-Jun-2023 €567,521 €730,381 €0 €2,957,337 -€162,860 €0 0.5503 €312,310 37 05-Jun-2023 04-Sep-2023 €570,076 €733,402 €0 €2,972,014 -€163,326 €0 0.5413 €308,578 38 05-Sep-2023 04-Dec-2023 €575,362 €739,648 €0 €2,986,764 -€164,286 €0 0.5322 €306,226 39 05-Dec-2023 04-Mar-2024 €575,505 €740,261 €0 €3,001,587 -€164,756 €0 0.5232 €301,093 40 05-Mar-2024 04-Jun-2024 €576,022 €741,339 €0 €3,016,484 -€165,317 €0 0.5144 €296,303 41 05-Jun-2024 Final period €37,672,239 €3,031,455 0.5093 €19,188,216 PV factor is averaged over multi-discount dates. NPV Balance €288

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Rome,16,Via Panciani,Rome,Rome DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity Anas €2,508,250 €1,967,796 €2,558,877 €2,018,423 €32,525,561 100.00% Emme Più €457,106 €334,396 €472,578 €349,868 €5,527,206 100.00%

Sum of tenant gross values €2,965,356 €2,302,192 €3,031,455 €2,368,291 €38,052,766 100.00%

Property Report

Milan, Via Sarca 222

6 Milan, Viale Sarca 222

6.1 Location The property is located in the peripheral area of Milan. Milan is the main industrial, commercial and financial centre of Italy and is also the capital city of the Lombardy Region. Its agglomeration, creating a metropolitan region of 7-9 million people, stretches over the provinces of Milan, Bergamo, Como, Lecco, Lodi, Monza and Brianza, Pavia, Varese and Novara. The city is located in the north-western sector of Italy, in the Po Valley. Milan is the main financial, commercial and industrial centre of Italy. It hosts Italy’s main stock exchange (Borsa Italiana), the HQ of national banks (UniCredit, Mediobanca, Mediolanum, Intesa) and a number of foreign bank groups. It is home to a large number of media/advertising agencies, national newspapers, telecommunication companies (RAI, Mediaset, Telecom, SKY). The city is also an important manufacturing centre. Other sectors include: chemicals, machinery, pharmaceutical and plastics. The city is also the major world fashion and design capital and will host the 2015 Universal Exposition. The property under analysis is situated in the northern sector of the Municipality of Milan. It is located in close proximity to Viale Fulvio Testi, one of the major arterial roads of the city. The area is known as Bicocca District and is approximately10km from the City centre. Bicocca has been one of the Milan’s most important industrial hubs until the second half of the ‘90s. The district is mainly characterised by the presence of some significant companies headquarters, an important university campus, a shopping centre (the Bicocca Village), Arcimboldi theatre, residential buildings/complexes, green areas and parks. In close proximity to the subject property are several office buildings (including the Siemens and the Deutsche Bank headquarters) and some residential buildings.

6.2 Accessibility Road The property benefits from very good road accessibility being positioned close to Viale Fulvio Testi, one of the major arterial roads linking Milan’s city centre with the neighbouring Municipalities of the Milanese area (Cinisello Balsamo, Monza, as well as to the A4 motorway – closest exit/entrance “Cinisello/Sesto S. Giovanni” is positioned some 7km to the north. The property is easily accessible from Viale Sarca where several parking spaces, subject to payment, are available. Rail The Central Railway Station (FS Centrale) is approximately 5km from the property under analysis and is reachable by the underground line MM5 that links to the MM3 line (MM Zara) that serves also FS Centrale. Public Transport The property is easily accessible by public transport (surface and underground transport) having several stops along Via Fulvio Testi (500m from the property), such as: the underground transport: MM stop Ponale of a recently opened new underground line MM5 and the surface transport: Tram lines n. 7 and no. 31 and bus lines (no. 51).

Air The closest airport is Linate Airport of Milan situated in the Municipality of Peschiera Borromeo approximately 17km distance while Malpensa International Airport, situated in the Municipality of Ferno, is apprxoimately 51km to the north. Both airports are easily reachable by the national motorway network and by public transport via dedicated private bus lines from the Central Railway Station (having its stop in Piazza Luigi di Savoia).

6.3 Site and Property Description

Site Characteristics and Accessibility The property under analysis is identified as “Building 307”. It is developed on a rectangular shaped land plot. The land plot is entirely covered by the office complex and its appurtenances: a small internal courtyard and the vehicular ramp that connects to the underground parking both located to the north side. The site is entirely fenced and is bounded by Viale Sarca to the west and by Third Party properties on the remaining sides. The property has one pedestrian entrance, positioned on the southern side, along the pedestrian internal road that connects to a third party parking area, and one vehicular entrance leading to the underground parking area on the basement level, positioned on the northern side.

Property Description The office property under analysis consists of an “H” shaped building, with an open double courtyard, other than the landscaped courtyard and the vehicular ramp leading to the basement levels. The building, that is part of the original industrial nucleus that was occupied by Pirelli, was then subject to an extension in 1996 and subsequently refurbished in 2005, when the façade was clad with glazed panels. The building is developed on five above ground levels and one basement level totalling 10,009 sq m of gross floor area. The building presents the following structural features: prefabricated frame structure with regular structural grid, flat roof hosting the technical plant and plastered facades clad with glazed panels.

The ground floor hosts the entrance hall and the reception (southern portion) whilst the eastern and western sides accommodate archive and technical plant and the northern side has some office space. The mezzanine, the first and second levels host offices whilst the third floor hosts the management offices and technical plant. The basement level hosts parking facilities and technical plant. The building has a rectangular floor plate. The mezzanine floor is smaller in size (640 sq m of office space) due to the presence of void area in the northern area. The second floor slightly differs from the third in size (2,113 sq m second floor vs 2,034 sq m third floor). The office spaces present either open plan layout or single offices equipped with demountable partitioning walls. The toilet blocks are four on the ground, first and second floors, two on the mezzanine levels and one on the third floor. The offices are equipped with suspended ceilings, raised floors made of PVC and aluminium windows. The building is equipped with primary air system, HVAC system includes: heating and air-conditioning system via four pipes units incorporated in the suspended ceiling, perimeter fan coil units (only in the ground and mezzanine levels), air treatment unit (incorporated in the suspended ceiling). The other plants include: watering plant and sewage system, gas detectors and fire-extinguishing plant. The vertical connection is guaranteed by three lifts, five staircases and one goods lift serving every floor.

The property benefits from 32 lettable covered car parking facilities in the basement level. The external area is composed of a small internal courtyard and a ramp serving the underground parking area - both positioned on the northern side.

6.4 State of Repairs We inspected the property on 30 May 2014. Based on the purely visual analysis the property is overall in a good state of repair both with reference to the finishes and to the technical specification. We have been informed that in 2005 the building was completely refurbished, both architecturally and functionally (including the technical features), maintaining its original tertiary function linked to production.

6.5 Accommodation For the purposes of this valuation we have adopted the following Gross Floor Areas (GFA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried out.

Vertical Parking Total Gross Floor Office Storage Connection Area Area Basement 193 1,821 2,014 Ground 1,970 61 417 2,448 Mezzanine 640 271 911 First 1,869 61 183 2,113 Second 1,790 61 183 2,034 Third 324 166 490 Total Gross Area 6,893 182 1,413 1,821 10,009

The property totals a GFA of 10,009 sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 6,775 sq m. The GLA adopted includes the areas referred to in the table above as: offices and storages. The GLA does not include the areas identified as vertical connection. The GLA does not include the area for the parking facilities (1,821 sq m) as these are being valued based on there being 32 spaces as opposed to a sq m basis.

Commentary The TDD report provided reports a GFA of 10,307 sq m and cannot be comparable with the GFA reported in the IM of 10,009 sq m as this does not include the technical rooms whilst the GFA of the TDD Report includes this surface. The TDD Report does not provide the area split per use, such as: office, storage, vertical circulation, technical rooms, etc therefore for the purposes of this valuation we have relied on the areas contained within the IM. For completeness of the information we report that the area referred to as office in the TTD seems to include also storage on floor and the vertical circulation totalling 7,154 sq m (-13% if compared to 8,188 sq m extrapolated from The IM and corresponding to offices, storages and vertical circulation).

We highlight that, it is our understanding that the for the purposes of the TDD, a check has not been performed or measurement on site nor on property plans, therefore the discrepancy could be due to the different source of information used for the preparation of the IM and of the TDD report.

6.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, except for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . The only material employed on site and potentially dangerous for the soil, subsoil and groundwater is the over ground gasoline tank positioned near the access ramp to the car park

Soil, Subsoil and Groundwater: . The analysis on the micro samplings carried out to identify the presence of deleterious materials (eg. Cadmium-Copper-total Chromium- Chromium VI-Mercury-Lead-Nickel-Zinc, Aromatic Hydrocarbons, PAC, Light Hydrocarbons) have been carried out. The results were compared with the limits set by Law for industrial sites and they do not exceed the Law limits. . The presence of landfill in the first meter layer has been identified

. The presence of filling material must be taken into account during any intervention that might involve excavation works and earth movement. The EDDR advises to analyse the landfill quality in case excavation or earth movement occurs.

Man Made Vitreous Fibres (MMVF) . The documentation made available for the purposes of the Environmental Assessment shows no sign of sampling on materials potentially containing MMVF since 2005. On site survey detects the following elements as potentially containing MMVF: piping insulation of the AHUs on the mezzanine and first floor, pipe insulation of the district heating plant -14 pipes-from the basement to the third floor, insulation of the AHU’s and piping, false ceiling panels in the offices.

. It is recommended to proceed with the MMVF sampling

Electromagnetic Field . It is recommended to proceed with the measurement of the electromagnetic field inside the technical rooms (the data centre and the electric transformer sub-station) in order to assess the levels of non- ionizing electromagnetic radiation. The EDD report quantifies an amount equal to €27,000 for the costs related to necessary verification e/o administrative costs of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

Commentary We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material with the property, therefore if you wish for certainty regarding this issues we should advise you instruct a qualified surveyor.

6.7 Cadastral Data Based on the information reported in the TDD Report the property under analysis is registered as follows:

Building Registry of the Municipality of Milan

Sheet N. Parcels/Maps N: Sub N. Floors Category 81 4 701 -1, G, 1, 2, 3, 4 D/7 81 73 701 81 74 701 81 4 702 D/1

Land Registry of the Municipality of Milan

Sheet N. Parcels/Maps N. Category Site Area 81 4,73,74 - - Commentary The TDD Report highlights the following: . The building registry certificates and maps are not consistent with the current state of the property and therefore needs to be updated accordingly (the access ramp to the underground floor is not reported in the map)

. The parties committed themselves to update the cadastral identification For the purposes of this valuation we have assumed that the cadastral identification of the building has been rectified at the local authority prior to the sale of the property – as required by the Law - and therefore no related risks were taken into account in our analysis.

6.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below:

. A valid Building Certificate of Use (CDU) has not been made available for the purposes of the TDD analysis

. The CDU made available states that at the date of the issuance of this CDU (06/04/2005) the property had fallen within areas zoned as: Special Area Z4 Bicocca – areas dedicated to the Technological Pool. The area is subject to the prescriptions of The Main Planning Agreement undersigned between the local authority and Pirelli Spa (Convenzione Quadro) and its further versions/amendments (in N. 4) detailed in the TDD Report – please refer to the TDD Report for further information.

. For the purposes of the TDD analysis it was not possible to verify the building use (presumably industrial); the total allowed office/service ratio foreseen within the area Z4 at the date of construction (up to 30% of the SLP – authorised developable gross area) seems to have been allocated in the adjacent buildings

. In November 2012 a new town planning tool (named The Territorial Government Plan – PGT) was approved and has been in force since then. The PGT is structured in three sections (Documento di Piano - DdP, Piano delle Regole - PdR, and, Piano dei Servizi – PdS). Each section zones the site according to the applicable prescriptions as follows: − According to the DdP, the site is identified within table n. D. 02 and falls within area zoned as Areas subject to fairly recent Planning Agreements (Ambiti dei piani regolatori recenti) within the perimeter of Areas characterised by recognisable urban texture (AdR – ambiti contraddistinti da un disegno urbano riconoscibile); − According to the PdR, the site falls within area zoned as: Consolidated Urban Area (TUC – Tessuto Urbano Consolidato) - Art n. 2.1a of PdR Technical Tool (Norme di Attuazione N.A) and further classified under areas identified within the tables R. 01 and R. 02 as Urban Area of Recent Development (TRF - Tessuto Urbano di Recente Formazione) –Art.2.1.a.ii of PdR Technical Tool.

. The building use (offices integrated with industrial activity) is compatible with the urban functions foreseen by the PGT for TUC and the change of use into office use is feasible subject to two administrative procedures: “Change of use without building works” or Change of use with building works”. Within areas zoned as TUC all uses are allowed without any exclusions and no pre-established ratios to be applied.

. The change of use with the procedure: “Change of use without works” is always permitted . The change of use with the procedure: “Change of use with works” for the areas covering a surface of less than 5,000 sq m the entire GFA of 7,500 sq m can be possibly recovered for office use. This can be achieved by verifying whether:

− The standard areas required for office use have been duly provided and the required planning fees have been duly paid – if not, the missing standards and planning fees will have to be paid/granted; − The required environmental assessment has been carried out – mandatory for all cases where the change of use from production to other uses is requested.

. In 1996 the building was subject to an extension of 215 sq m. This extension covered the GFA still available at that date. It has to be clarified whether the related planning fees were either paid or balanced by standards . The following restrictions apply: − Restriction deriving from the airport vicinity Law n. 58/63 as the property falls within perimeter of 3,000m from the airport of Bresso

Our valuation does not take into account any potential costs necessary to obtain a “change of use without works” – from industrial into offices.

With reference to the building permits, the TDD report states that the administrative documents allowing the construction of the building as well as some additional drawings ( for example: attachments to the Building permit no. 2672 dated 26/04/1996) and plans are missing therefore the conformity of the building cannot be ascertained. For the purposes of this valuation it has been assumed that all relevant building missing permits were regularly requested and granted by the Local Authority and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated to this aspect.

6.9 Building Certifications CPI – Fire Prevention Certificate The TTD reports that the building benefits from a valid CPI (Procedure N. 348089) for activities no. 092 (garages up to 50 car parking spaces) no. 015 (storage for flammable liquids) and no. 064 (electrical generator 100Kwa). The CPI is addressed to Prysmian Spa and is valid until 15/09/2014. The TDD highlights that: . The original CPI was issued only for activity no. 92 . It is necessary to obtain the designs submitted by Prysmian for activities no. 015 and no. 062 along with transfer of CPI registration subsequently issued, as these documents are necessary for the future renewals . The Vendor should state the number of employees present with the building, in order to verify whether an additional CPI has to be issued for this activity as well.

Commentary No costs have been identified by the TDD. For the purposes of this valuation we have assumed that all irregularities (if any) will be rectified prior to the sale of the property – as mandatory by Law - and therefore no related risks and costs were taken into account in our analysis.

Fitness for Use Certificate According to the TTD report, the Fitness for Use Certificate (Certificato di Agibilità) was issued by the Municipality of Milan on 29 September 2005 for industrial use. The TDD highlights that:

. The Fitness for Use Certificate refers only to the Building permit dated 05/12/2003 and its further amendments and does not refer to the original Agreement nor to the one involving the extension

. Further clarification has been requested at the date of the TDDR report but none were provided

6.10 Annual Non-Recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-Recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €154,829 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance €6,912 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Property 1% on the gross rent This amount represents the The IM Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves 1.50% The yearly Capital Reserves JLL Estimate has been estimated to reflect the future capital expenditures to be sustained over the holding period starting from 01/01/2018 Service Charges €30/sq m To be applied to the vacant JLL Estimate office spaces.

The following Capital Expenditures have been gathered from the Technical Due Diligence Report:

Period Building Defects Administrative Costs Source of Data 0-6 months €60,800 None Technical Due Diligence Report 7-12 months €9,300 None Technical Due Diligence Report 13–60 months None None Technical Due Diligence Report

We highlight that the above reported CAPEX are inclusive of all costs related building defects highlighted in the TDD report are included in the DCF model, while the “administrative costs” related to missing documents and certificates have been excluded, as it appears reasonable that they will be borne by the Vendor to guarantee the building’s compliance with the mandatory legislation.

6.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis. Easements The TDD report states that the property is subject to the following easements: . Easement granted by virtue of the Deed no. 157945/32668 dated 31/05/2003 burdening the portion of map no. 52 (current map. no. 73 of Sheet no.81). This is an everlasting easement granting accessibility to the Buildings no. 307 (the subject property) and no. 143 free of charge. It is unclear whether this easement involves also the land portion on which the ramp is located leading to the underground car parking area, therefore this aspect (the existence of the easement and deriving obligations) must be verified and if applicable rectified prior to the property transfer. . Easement and Surface Right by virtue of the Deed no. 48.522/7.668 dated 29/06/2006 burdening the land portion map. 73 of sheet no.81 establishing the pedestrian and vehicular accessibility to Viale Sarca, to the portions subject to surface right constructed underground. In addition, this deed includes also the Right to light easement (Servitù di Luci e Vedute) in favour of the subject property. A document (quoted in the TDD report) states that the subject property is linked to building 143 by an underground tunnel and that some of its technical plants are shared, as well as some connections are present also on the ground level (and therefore easements). The document ruling this reciprocal obligation is not available.

We bring to the Client’s attention our analysis is carried out on the basis that the Landlord will have to grant the independence of the building therefore if any segregation is required to be carried out, these costs will have to be discounted from the MV reported in the relevant section of this report. For further information, please refer to the TDD report. Commentary For the purposes of this valuation analysis we have assumed the subject property to be free from any onerous or unusual outgoings, covenants and/or restrictions, general or specific ground lease conditions, or other restrictions or rights of Third Parties that might limit the marketability of the property.

6.12 Tenancy At the valuation date, the property is fully let to Prysmian Spa. The main contractual details were extrapolated from the IM and are summarised below:

Lease Dates and Break Options

2nd Lease Notes Lease 1 Lease Term Break Tenant Lease Start Term length Expiry Option Expiry Yes2 starting from the 10th Prysmian Spa 29/04/2005 9+6 28/04/2014 28/04/2020 yr of the lease.

Passing Rent, Step Rents and Headline Rent

Passing Date Step Date Step Tenant Step 1 Step 2 HR Date HR Rent 1 2 Prysmian Spa €2,003,021 ------

Rent revision & Indexation

Next Rent Tenant ISTAT Indexation % Revision Date Prysmian Spa April 2015 100%

Based on the information contained within the TDD report, we report that: . The building is let to Prysmian Spa (former Pirelli Cavi & Sistemi Energia Spa) that took over the original lease starting from 01/02/2008; . The Tenant has committed itself to using the building only for laboratories and offices linked to the production activity.

6.13 Letting and Investment Transactions Letting Transactions The table below reports some letting transactions undergone during the last 12 months in the Periphery Office Sub-market:

Date of Location Sub-market sq m €/sq m Quality transaction Viale Fulvio Testi 280 Bicocca 560 €160 Grade B Q2/2013 Viale dell’Innovazione Bicocca 1,500 €240 Grade A Q3/2013

2 The Tenant has the right to exercise the BO starting from the 10th yr of the lease (29/04/2015). The withdrawal can be exercised either by: communication to be delivered within the end of each lease year or with at least 2yr notice starting from the year end of the year when the BO has been exercised.

Viale dell’Innovazione Bicocca 1,800 €230 Grade A Q4/2014 Viale Fulvio Testi Bicocca 11,600 €200 Grade A Q4/2014

The letting transactions report the headline rents; we are not aware of the level of incentives granted to the Tenants.

Investment Transactions Please find below some recently investment transaction closed in the Milan market during the last 12 months:

Investment Date of Property/Location Sub-market Sale price GLA sq m GIY Type transaction HQ2 Pirellli Periphery €47.4 13.600 Confidential Investment Q4/2013 Pergolesi 25 CBD €28 million 5,630 6.19% Investment Q4/2013 Milanofiori HQ Nestlè €69 million 22,000 Confidential Investment Q1/2014 Nord Milanofiori Building U10 €44.5 million 11,520 Confidential Investment Q2/2014 Nord Light Building Periphery €45 million 18,000 Confidential Investment Q2/2014

6.14 Market Rent The Market Rent estimated takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be €225/sq m and €1,200 p.a. for each covered parking space in the basement. The estimated Market Rent has been weighted according to use as follows:

. Offices: 100% . Storage: 33% . Vertical Circulation: 0%

. The car parking spaces have been valued on a number of parking space bases The total Market Rent is €1,542,612. If compared to the gross passing rent of €2,003,021 it shows an over- rented situation of approximately 30%.

Marketing Assumptions Our Market Rent estimate considers the following marketing assumptions:

. Letting Void (at renewal): Nine months to reach full occupancy . Rent free period: Nine months . TI’s: €112.50/sq m equal to six months’ rent.

Comments The adopted Market Rent of €225/sq m for the office space is line with market evidence for good quality office space within the Bicocca district ranging between €200/sq m and €240 sq m. In arriving at our opinion of the Market Rent the position of the property within the Bicocca Office District has been considered along with its current planning use.

6.15 Future Income Performance The present valuation analysis foresees the property release by the tenant Telecom (at the first possible break date 31/12/2016) and its subsequent re-letting based on a multi-tenant scenario at market rental level, having taken into account the current over rental status of the property and the rolling break option of the lease contract. The re-letting period has been estimated as nine months – in total – subject to the TI’s reported at Section no. 10.4.

6.16 Valuation Data The DCF analysis is based on the following parameters: Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date Gross Rent as at the Valuation Date: €2,003,021 Market Rent: €1,542,612 Letting Void (renewal) Nine months Rent Free period (current & future Nine months vacancy): Tenant Improvements (Capital €112.50 (equal to six months’ rent); contribution future leases ): Non recoverable costs: . Property tax (IMU): €154,829 p.a . Building Insurance: €6,912 p.a . Building Management: 1% on the gross rent . Capital Reserves 1.5% starting from 01/01/2018 . CAPEX Urgent: €60,800 . CAPEX 6-12 months: €9,300 . Service Charges: €30/sq m (on office GLA and applicable only for vacant spaces . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent. Gross Initial Yield: 11.58% Net Initial Yield: 10.00% (rounded) Gross Exit Yield: 7.80% Net Exit Yield: 6.65% Equivalent Yield: 6.53% IRR (unleveraged): 8.10%

Comments The adopted gross initial yield is influenced by the over-rent situation as at the valuation date while the gross exit yield reflects current planning use and the potential risk associated with its market appeal. The yield shows a difference of approximately 50-75 bps in comparison with pure office buildings within the Bicocca District and is in line with the registered market transactions.

6.17 SWOT ANALYSIS Strengths . The property is situated in the established office district of Bicocca . The area currently benefits from the opening of a new underground line serving the Bicocca district ( 500m away) . The property was refurbished and adapted to match the current market requirements for modern office space

Opportunities . A potential re-letting of the property to multiple tenants at market rent level will enhance the investment liquidity and market appeal

Weakness . In the event that the property should be vacated, the re-letting marketing activity will have to target only tenants falling within specific categories of activity in consideration of the current planning use (industrial)

Threats . The property is markedly over-rented and the lease contract in place foresees a rolling break option . A Change of Use procedure “without works” would imply the payment of planning costs and its feasibility will have to be checked with the Local Authority

6.18 Alternative use The property is not suitable for an alternative use in consideration of its typology and location.

6.19 Saleability The property appeal as investment opportunity will increase subject either to a renegotiation of the existing lease contract which provides a limited income security or to a reletting at market rental level to a different

tenant/tenants. The current planning use of the property might represent an investment constrain for some investor categories (i.e. traditional investors focused on pure office building and/or core assets).

6.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property: . The present analysis is based on the gross built area GLA of the asset of 6,775sq m . We have considered an average construction cost per sq m based on market benchmarks of approximately €1,300/sq m on GLA reflecting an overall construction cost of €8,805,700 . We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution (10% on the construction costs)

Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs. On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approximately €10,930,000 (rounded) reflecting a cost of €1,614/sq m of GLA.

6.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is: €1,543,000 (rounded)

(One Million Five Hundred and Forty Three Thousand Euros)

6.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows:

€17,300,000 (Seventeen Million Three Hundred Thousand Euros)

€18,165,000 (Eighteen Million One Hundred and Sixty Five Thousand Euros)

58 Appendix 1

Location

Macro Location

Viale Sarca 22, Milano

Micro Location

Viale Sarca 22, Milano

Appendix 2

Photos

Viale Sarca 22, Milan

External Pictures

Viale Sarca 22, Milan

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Milan,222,Viale Sarca,Milan File/Ref No 2

Gross Valuation €18,917,231 Capital Costs -€752,981 Net Value Before Fees €18,164,250

Less Stamp Duty @4.00% of Net Value -€691,971 Agents Fee @0.75% of Net Value -€129,745 Legal Fee @0.25% of Net Value -€43,248

Net Valuation €17,299,286 Say €17,300,000

Equivalent Yield 6.2965% True Equivalent Yield 6.5289% Initial Yield (Deemed) 9.9719% Initial Yield (Contracted) 9.9719% Reversion Yield 7.3479%

Total Contracted Rent €2,003,021 Total Current Rent €2,003,021 Total Rental Value €1,542,612 No. Tenants 5 Capital value per m² €2,112.59

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €2,003,021 €1,811,325 9.9719 % 10.6258 % 31-Dec-2016 €0 -€407,321 -2.2424 % -2.2742 % 31-Mar-2017 €0 -€872,488 -4.8033 % -4.9511 % 30-Jun-2017 €0 -€779,548 -4.2917 % -4.4093 % 01-Jul-2017 €0 -€1,426,627 -7.8540 % -8.2553 % 30-Sep-2017 €0 -€1,351,447 -7.4401 % -7.7994 % 01-Oct-2017 €0 -€1,365,145 -7.5156 % -7.8823 % 31-Dec-2017 €493,379 -€879,167 -4.8401 % -4.9901 % 01-Jan-2018 €493,379 -€298,313 -1.6423 % -1.6593 % 31-Mar-2018 €493,379 -€248,976 -1.3707 % -1.3825 % 01-Apr-2018 €1,081,633 €782,610 4.3085 % 4.4271 % 01-Jul-2018 €1,542,612 €1,288,585 7.0941 % 7.4201 % 01-Oct-2018 €1,542,612 €1,334,683 7.3479 % 7.6981 %

Yields based on €18,164,250

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold Tenant 1 NA 28-Apr-2020 €598,506 Unrounded €460,979 All Units Initial Yield 9.575 €5,640,313 Tenant 2 NA 28-Apr-2020 €194,439 Unrounded €150,000 All Units Initial Yield 9.575 €1,808,504 Tenant 3 NA 28-Apr-2020 €567,821 Unrounded €438,254 All Units Initial Yield 9.575 €5,394,333 Tenant 4 NA 28-Apr-2020 €543,820 Unrounded €418,079 All Units Initial Yield 9.575 €5,164,335 Tenant 5 NA 28-Apr-2020 €98,435 Unrounded €75,300 All Units Initial Yield 9.575 €909,746 Total €2,003,021 €1,542,612 €18,917,231

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Milan,222,Viale Sarca,Milan,Milan DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €18,165,000 Geared IRR 8.1085% Start: Acquisition Fee @ 5.0000% -€865,000 Ungeared IRR 8.1085% Start: Net Value €17,300,000

Exit Results

Exit: Gross Value €22,664,372 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €22,664,372 Exit: Vendors Fees -€226,644 Exit: Rent adjustments €0 Exit: Adjusted Net Value €22,437,729

Exit: Rent payable (gross) €1,752,031 Exit: Market rent (gross) €1,826,616 Exit: Rent receivable (net) €1,507,181 Exit: Market rent (net) €1,581,766 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 6.6500% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 6.6500% (Net Rent / Net Value X 100) Exit: Net Revn Yield 6.9791% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 6.9791% (Net ERV / Net Value X 100) 8.0594% (Gross ERV / Gross Value X 100) 8.0594% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 6.1771% Exit: Vendors Fees 1.0000% (-€226,644)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€17,741,804 €501,735 €0 €1,542,612 -€78,539 €0 1.0000 -€17,744,390 2 05-Sep-2014 04-Dec-2014 €423,316 €501,735 €0 €1,542,612 -€78,419 €0 0.9746 €412,571 3 05-Dec-2014 04-Mar-2015 €448,985 €501,735 €0 €1,542,612 -€52,750 €0 0.9556 €429,047 4 05-Mar-2015 04-Jun-2015 €451,225 €504,078 €0 €1,545,610 -€52,853 €0 0.9371 €422,848 5 05-Jun-2015 04-Sep-2015 €456,754 €505,119 €0 €1,549,844 -€48,365 €0 0.9193 €419,894 6 05-Sep-2015 04-Dec-2015 €456,642 €505,119 €0 €1,554,088 -€48,477 €0 0.9016 €411,689

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Milan,222,Viale Sarca,Milan,Milan DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €456,530 €505,119 €0 €1,558,344 -€48,589 €0 0.8839 €403,538 8 05-Mar-2016 04-Jun-2016 €459,777 €508,522 €0 €1,564,255 -€48,744 €0 0.8668 €398,557 9 05-Jun-2016 04-Sep-2016 €461,042 €510,034 €0 €1,570,862 -€48,992 €0 0.8504 €392,048 10 05-Sep-2016 04-Dec-2016 €455,324 €504,490 €0 €1,577,494 -€49,167 €0 0.8339 €379,709 11 05-Dec-2016 04-Mar-2017 -€453,276 €0 €0 €1,584,158 -€453,276 €0 0.8195 -€371,453 12 05-Mar-2017 04-Jun-2017 -€606,129 €0 €0 €1,591,680 -€606,129 €0 0.8049 -€487,847 13 05-Jun-2017 04-Sep-2017 -€403,574 €0 €0 €1,599,579 -€403,574 €0 0.7893 -€318,561 14 05-Sep-2017 04-Dec-2017 -€364,150 €0 €0 €1,607,518 -€364,150 €0 0.7724 -€281,267 15 05-Dec-2017 04-Mar-2018 -€36,437 €128,854 €0 €1,615,495 -€165,291 €0 0.7622 -€27,773 16 05-Mar-2018 04-Jun-2018 €233,190 €282,052 €0 €1,623,231 -€48,862 €0 0.7413 €172,854 17 05-Jun-2018 04-Sep-2018 €351,331 €404,551 €0 €1,630,886 -€53,220 €0 0.7275 €255,584 18 05-Sep-2018 04-Dec-2018 €351,001 €406,288 €0 €1,638,578 -€55,286 €0 0.7134 €250,410 19 05-Dec-2018 04-Mar-2019 €350,791 €406,307 €0 €1,646,308 -€55,516 €0 0.6995 €245,363 20 05-Mar-2019 04-Jun-2019 €352,321 €408,037 €0 €1,652,918 -€55,716 €0 0.6859 €241,661 21 05-Jun-2019 04-Sep-2019 €354,079 €410,013 €0 €1,659,082 -€55,934 €0 0.6729 €238,259 22 05-Sep-2019 04-Dec-2019 €355,328 €411,477 €0 €1,665,268 -€56,148 €0 0.6599 €234,486 23 05-Dec-2019 04-Mar-2020 €355,160 €411,494 €0 €1,671,477 -€56,334 €0 0.6470 €229,788 24 05-Mar-2020 04-Jun-2020 €356,515 €413,076 €0 €1,679,177 -€56,560 €0 0.6345 €226,202 25 05-Jun-2020 04-Sep-2020 €358,300 €415,135 €0 €1,687,509 -€56,835 €0 0.6224 €223,015 26 05-Sep-2020 04-Dec-2020 €359,759 €416,871 €0 €1,695,885 -€57,112 €0 0.6104 €219,606 27 05-Dec-2020 04-Mar-2021 €359,534 €416,893 €0 €1,704,301 -€57,359 €0 0.5985 €215,173 28 05-Mar-2021 04-Jun-2021 €361,253 €418,865 €0 €1,712,759 -€57,612 €0 0.5869 €212,011 29 05-Jun-2021 04-Sep-2021 €363,348 €421,249 €0 €1,721,260 -€57,901 €0 0.5757 €209,197 30 05-Sep-2021 04-Dec-2021 €364,937 €423,127 €0 €1,729,803 -€58,190 €0 0.5646 €206,057 31 05-Dec-2021 04-Mar-2022 €364,706 €423,150 €0 €1,738,387 -€58,444 €0 0.5536 €201,894 32 05-Mar-2022 04-Jun-2022 €366,449 €425,151 €0 €1,747,014 -€58,702 €0 0.5429 €198,930 33 05-Jun-2022 04-Sep-2022 €368,575 €427,571 €0 €1,755,684 -€58,996 €0 0.5326 €196,288 34 05-Sep-2022 04-Dec-2022 €370,187 €429,478 €0 €1,764,399 -€59,291 €0 0.5223 €193,344 35 05-Dec-2022 04-Mar-2023 €369,951 €429,500 €0 €1,773,154 -€59,550 €0 0.5121 €189,436 36 05-Mar-2023 04-Jun-2023 €371,719 €431,532 €0 €1,781,955 -€59,812 €0 0.5022 €186,659 37 05-Jun-2023 04-Sep-2023 €373,876 €433,988 €0 €1,790,799 -€60,113 €0 0.4926 €184,180 38 05-Sep-2023 04-Dec-2023 €375,511 €435,923 €0 €1,799,687 -€60,412 €0 0.4831 €181,415 39 05-Dec-2023 04-Mar-2024 €375,270 €435,946 €0 €1,808,618 -€60,676 €0 0.4737 €177,750 40 05-Mar-2024 04-Jun-2024 €377,064 €438,008 €0 €1,817,593 -€60,944 €0 0.4645 €175,147 41 05-Jun-2024 Final period €22,437,729 €1,826,616 0.4589 €10,296,686 PV factor is averaged over multi-discount dates. NPV Balance €5

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Milan,222,Viale Sarca,Milan,Milan DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity Tenant 1 €523,685 €449,130 €545,848 €471,293 €6,753,835 100.00% Tenant 2 €169,562 €142,637 €177,616 €150,691 €2,144,924 100.00% Tenant 3 €495,411 €429,641 €518,939 €453,169 €6,460,766 100.00% Tenant 4 €477,392 €414,088 €495,050 €431,746 €6,226,887 100.00% Tenant 5 €85,981 €71,684 €89,163 €74,866 €1,077,960 100.00%

Sum of tenant gross values €1,752,031 €1,507,181 €1,826,616 €1,581,766 €22,664,372 100.00%

Property Report

Building F4 – F11, Assago, Milanofiori, Strada 1

7 Assago, Milanofiori, Strada 1 – Building F4 – F11

7.1 Location The property is an office building portion named Building F4-F11 (hereinafter referred to as the Property) forming part of a wider office building (Building F). The property is situated in Strada 1, within the Municipality of Assago and is part of the Milanofiori Business Park.

The Municipality of Assago is positioned to the south-east of Milan approximately 10km from the city centre, with a resident population of 8,244 inhabitants (1 January 2013).

Assago is a well-known and well established office district that forms part of Hinterland Office District of Milan; the existing office stock is divided in two sub-markets: Milanofiori Nord and Milanofiori Business Park.

The office stock of Milanofiori is represented by Milanofiori Business Park - that also hosts the property under analysis - enclosed between Viale Milanofiori and Via Gran San Bernardo, just off the western by-pass of Milan. It was developed approximately 30years ago and includes 19 office buildings (401,000 sq m of office stock), NH Hotel and Conference Centre and Milanofiori Shopping Centre that has undergone some extension and refurbishment works. Among the main occupiers are Autogrill, Accenture, DHL and Billa. The second sub-market is represented by Milanofiori Nord Business Park that is a result of a wider mixed use development positioned at the beginning of the A7 Milan-Genova motorway towards Milan, of which construction at the valuation date is still ongoing. The development project foresees the realisation of some 218,000 sq m of gross floor area dedicated to office use (approximately 121,000 sq m), residential use (approximately 30,000 sq m), retail schemes (large retail scheme of approximately 36,000 sq m and MSU’s of 9,600 sq m), leisure and entertainment (approximately12,000 sq m) and accommodation facility (8,200 sq m). Phase I of the development terminated in September 2010 and includes the realisation of four office buildings (U4,U7, U9 and U10) positioned in front of the newly developed underground station of MM2 line, a Retail Park with seven medium to large retail units, a Plaza connecting the office blocks and accommodating retail units (including restaurants and bars), a multiplex cinema and Fitness & Health centre, a 4* Hotel and a portion of the residential component of 30,000 sq m.

7.2 Accessibility Road The property benefits from very good road accessibility being positioned in close proximity to the A7 Milan- Genova motorway and just off the western by-pass-road of Milan. The western city-by-pass links to the northern and to the eastern city by-pass and consequently to the motorways A1 Milan-Naples, A4 Turin-Trieste, A8 Varese-Milan and A9 Chiasso-Milan. The city centre of Milan is reachable through Via del Mare (800m) that leads to Piazza Maggi, the closest city access point.

Rail The closest railway station is FS Porta Genova situated 9km from the subject property and is part of the southern railway line Milano – Mortara. FN Cadorna station is positioned 11km away while the closest railway station providing connections throughout Italy is FS Centrale some 16km from the property. The railway stations are easily reachable by the underground line MM2.

Public Transport The property is served by the underground line (MM2 green line), of which stop Assago M. Forum is positioned five minutes walking distance away. The MM2 underground line provides direct connection to all mentioned railway stations. In addition to the underground line, Assago is well served also by buses; two bus lines connect to Milan and stop within a radius of 600m.

Air The closest airport is Linate Airport of Milan situated in the Municipality of Peschiera Borromeo some 16km distance while Malpensa International Airport, situated in the Municipality of Ferno, is approximately 55km to the north. Both airports are easily reachable by the national motorway network and by public transport. Linate Airport is accessible via a dedicated private bus line running from FS Centrale station and by bus line no. 73 of the public transport network, having its stop in Piazza San Babila. Malpensa airport is reachable via a dedicated railway line, Malpensa Express, running from FS Cadorna and by a private bus line running from FS Centrale.

7.3 Site and Property Description Site Characteristics and Accessibility The subject property is a portion of a wider office building identified as “Building F”. The Building is developed on an irregular shaped land plot. The site is not fenced and is bounded on each side by uncovered parking spaces and green areas. The property has eight pedestrian entrances, positioned along Strada 1, and corresponding to the numbers from four to 11, adjacent but external to the main building. Each entrance leads to a vertical connection block composed of stairs and lifts. A further six pedestrian entrances can be found at the back of the building. The office complex is served by vehicular entrances leading to the external uncovered parking area that are common for the entire office complex and connect directly to the A7 motorway “Milan-Genoa” and to the western by-pass of Milan. Property Description The property is a portion of the building identified as Building F, developed on seven above ground floors and an underground level. In its entirety, the building, from a horizontal perspective, can be seen as a sequence of connected perpendicular segments, identified with a number comprised between F1 and F11. The portion of the building under analysis is that comprised between Blocks F4 and F11, all blocks including all floors from the underground level to the rooftop – hereinafter the property. The property is developed on seven above ground levels and an underground level totalling 37,966 sq m of gross floor area. The property has a pilotis structure with a pedestrian arcade along the main front. The frame structure is made of reinforced concrete; the façade consists of curtain glazed walls. The blocks are connected on all floors, thus making a single structure with irregular layout.

The ground floor is used as covered walkway for public use, hosts a pilotis entrance area where the accesses of each block are positioned, four retail units and a reception linked to a keeper’s lodgings. Floors one to five are entirely destined for offices whilst the basement hosts storage, technical plant and covered parking spaces. The sixth floor is smaller in size than the other floors due to the presence of a walkable perimeter terrace, and hosts offices and technical plant. Each block presents roughly a similar floor layout (either open plan or single offices equipped with demountable partitioning walls). The eight blocks present similar technical specification and finishes. The toilet blocks are seven on the floors from first to sixth and six on the ground floor. The offices are generally equipped with suspended ceiling, raised floor and aluminium window frames. The floor finishes in the offices differ on each floor according to tenants needs and is either carpeted (e.g. fourth floor Block F9, sixth floor block F8, F9 and F10), wooden (e.g. sixth floor Block F4, F5 and F6), or made of PVC/linoleum (e.g. firs to fifth floor Block F10). The technical specification includes a primary air system, heating and conditioning system via perimeter fan coil units in the offices; the heating in the bathrooms is provided via traditional heating units and medium tension power supply. The fire prevention system includes smoke detectors and manual alarms. The building is equipped with an anti-burglar system and surveillance system using TVCC system. The vertical connection is guaranteed by eight central vertical connection blocks, adjacent but external to the building and serving all floors from basement to sixth: five of these blocks are equipped with two lifts and a staircase whilst the remaining three blocks with three lifts and one staircase. Each block presents also an external emergency staircase. The property also benefits from: . 56 reserved covered car parking facilities in the underground level . 73 surface car parking spaces in the external area The property includes an external area used as parking lot that is not landscaped.

7.4 State of Repairs We inspected the property on30 May 2014. Based on the purely visual analysis the property is overall in average/good state of repair both with reference to the level of finishes regarding technical specifications, presenting only damage typical to age and usage.

7.5 Accommodation For the purposes of this valuation we have adopted the following Gross Floor Areas (GFA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried.

Vertical Techn. Floor Office Retail Residential Hall Storages Terraces Parking Total Circ. Rooms -1 1,558 391 123 1,061 3,133

G 839 148 55 450 846 2,338

1 5,119 398 5,517

2 5,119 398 5,517

3 5,119 398 5,517

4 5,118 398 5,516

5 5,122 467 5,589

6 3,149 467 1,223 4,839

Total 28,746 839 148 1,558 3,367 123 1,223 1,907 37,966

The property totals a GFA of 37,966 sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 31,144 sq m. The GLA adopted includes the areas referred to in the table above as: offices, retail and storages. The GLA does not include the areas identified as: residential, hall, vertical circ., technical rooms, and terraces. The GLA does not include the area for the parking facilities (1,907 sq m) as being valued on the number of parking space basis and not on a square meter basis in number of 56 underground parking spaces and 73 surface car parking spaces.

Commentary The TDD report provides a GFA of 38,836 sq m and cannot be comparable with the GFA reported in the IM of 37,966 sq m as this does not include the common areas in the basement level, whilst the GFA of the TDD Report includes this surface. With reference to the GLA, the GLA reported in the TDD report is 30,912 sq m, -0.70% if compared to the GLA by us adopted of 31,144 sq m (average -15 sq m per floor, except for the sixth floor where the gap is -150 sq m). The TDD Report does not provide the area split per use and per Tenant, therefore our analysis is based on the gross areas reported within the IM. For the purposes of the TDD, a check measurement has not been performed on site nor on property plans therefore the discrepancy could be due to the different source of information used for the preparation of the IM and of the TDD report.

7.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, except for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . There are two underground tanks containing gasoline to fuel the thermal plant

Soil, Subsoil and Groundwater . PCA (Environmental Characterisation Plan) was filled out in November 2008. The PAC determines the collection of 14 ground samples and four groundwater samples – all resulting with values inferior to the limits prescribed by the Law for commercial/industrial sites. It is noted that a reclamation activity (MISE) in compliance with the DL 152/06 related to the groundwater is still ongoing. Several monitoring campaigns have been carried out between 2008 and 2011, all of them analysed by ARPA. The last one shows the presence of hydrocarbons. . Given that the last available campaign still shows the presence of hydrocarbons, and as at the date of July 2013, the Municipality has not decided whether to continue with the monitoring campaign, it is likely that they will ask for further monitoring.

GHG Emissions and ODS (Ozone Depleting Substances) . The maintenance status of the plant cooling units is not available, therefore, the register of maintenance has not been made available, however, there is no evidence of notification to the Environmental Ministry related to GHG emission.

Asbestos (ACM) . Some ACM is present on site within the material forming the mineral wool pipe insulation of the proofed heating and air-conditioning plants (approximately 280 sq m) that would be not adequately managed. It is also reported that some additional materials could be ACM or contain ACM – please refer to the EDD for detailed information; . According to the EDD, it is necessary to proceed with the ACM maintenance and control programme as per Law. DM 06/09/94 including the air quality monitoring. It is also advisable to proceed with Phase 2 for the sampling and analysis of the ACM found.

Man Made Vitreous Fibers (MMVF) . The documentation made available for the purposes of the Environmental Assessment shows no sign of sampling on materials potentially containing MMVF since 2005. On site survey detects some materials as potentially containing MMVF – please refer to the EDD report for detailed information. . It is recommended to proceed with the MMVF sampling

Electromagnetic Field . It is recommended to proceed with the measurement of the electromagnetic field inside the technical rooms (the electric transformer sub-station) in order to assess the levels of non-ionizing electromagnetic radiation.

Ionizing Radiation: Radon . The documentation does not show whether a monitoring campaign has been conducted therefore it is recommended to proceed with the assessment of the radon level in the environment (if any)

found. It is required to recover the documentation, or in the absence to design a specific sanitation programme for the air ducts.

The EDD report quantifies an amount equal to €92,000 for the necessary verification of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

Commentary We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material with the property, therefore we have relied on the information contained within the EDD.

7.7 Cadastral Data Based on the information reported in the TDD Report the property under analysis is registered as follows:

Building Registry of the Municipality of Assago

Sheet N. Parcels/Maps N: Sub N. Floors Category 14 11 502-503 G A/3 14 11 505-507 G C/1 14 11 508 -1 D/1 14 11 509 -2 D/1 14 11 706 -1 C/6 14 11 707-715,717 -1 C/2 14 11 716 -1 C/6 14 11 718 1 D/8 14 11 720 1 A/10 14 11 722-725 2 D/8 14 11 726-729 3 D/8 14 11 730-734 4 D/8 14 11 735-738 5 D/8 14 11 739-740 6 D/8 14 11 742 G D/8 14 11 743 1 D/8 14 11 744 4 D/8

Land Registry of the Municipality of Assago

Sheet N. Parcels/Maps N. Category Site Area 14 11

Commentary The TDD Report highlights the following: . Minor differences have been observed (internal space distribution) between the cadastral maps and the property state at the inspection that should be rectified at the Local Building Registry For the purposes of this valuation we have assumed that the cadastral identification of the building has been rectified at the local authority prior to the sale of the property – as required by the Law - and therefore no related risks were taken into account in our analysis.

7.8 Town Planning Data The copy of the Building Certificate of Use (CDU) provided to us reports: . The site upon which the property is developed falling within the areas zoned as D3 – Milanofiori – Existing Tertiary District (Comparto Terziario di livello metropolitano esistente) ruled by the Planning Tool (PGT) and RE (Regolamento Edilizio) of the Municipality of Assago . The area is not subject to the prescriptions of Law no. 428 dated 29/10/1993, ex Art. 1bs The information contained within the TDD report refers to the CDU dated 04/03/2005 while the CDU provided to us is dated 14/05/2014 – being the most recent document we have reported the more recent information. The TDD report highlights the following:

. The original zoning plan was not made available. This plan allows the identification of the urban compound and all related agreements and permits the assessment of the conformity of the property with building codes and obligations; . It is necessary to obtain the plans attached to the Planning Agreement (Convenzione no. 38644/6322 dated 20/11/1997) in order to identify the landscaped areas on which exists a 30yr obligation of maintenance . The documentation (Building permits) that allowed the change of use of the fifth floor from storage into offices generating an increase in the SLP of 3,022.52 sq m is not complete. It is necessary to obtain the evidence of the payment of the related planning fees.

. With reference to the building permits, the TDD report states that a series of documents has not been made available therefore additional verification should be made – please refer to the TDD report for detailed information. The present valuation is based on the assumption that the property is used in compliance with the town planning regulations and that the current use of the property (office use) is compliant with the planning tool in place. With reference to the change of use of the sixth floor, we have assumed that the relevant building permit was regularly requested and granted by the Local Authority and the related planning fees have been fully paid.

Moreover, we have assumed that all relevant building missing permits were regularly requested and granted by the Local Authority and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated to the this aspects.

7.9 Building Certifications CPI – Fire Prevention Certificate The copies of the CPI were not made available for the purposes of the TDD analysis. The TDD highlights that: . In 2009 has been requested the renewal of the CPI for activities no. 15, 91 and 92. The issued CPI has not been made available. . On 13/09/2012 the Local Fire Brigade issued the compliance opinion with some prescriptions. For the activities no. 73C, 74,12,75,49 – offices with permanent staff presence of above 500 units. On 18/01/2013 a building permit was issued that includes also the works requested by the Fire Brigade and necessary for the CPI certification completion. . It is necessary to grant the completion of all works foreseen for the CPI certification – as prescribed by the Local Fire Brigade in the compliance opinion issued in 2012 – Estimated cost of €700,000 . The building benefits of a CPI issued for activity no. 64 valid until 05/09/2014

Fitness for Use Certificate According to the TDD report, the Fitness for Use Certificate made available (Certificate no. 338/77 dated 02/09/1981) refers to a surface of 2,112sq m. The TDD report highlights that: . Two requests for Certification have been submitted (one in 1980 – for the entire property and one in 1989 for the sixth floor changes) – there is no evidence on the effectively undergone certification . There is no evidence on the certification requested for the works (Building permit no. 2005) related to the creation of the nursery – therefor it is necessary to understand whether the certificate has been requested and if so, granted . The TDD advises that in case any Certification be missing, to request the Vendor to submit a Request for Property Titles (Atto Ricognitivo) to the Local Authority that includes the certification also of the fitness for use as the documentation made available for the purposes of the TDD is incomplete.

7.10 Annual Non-recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €270,861 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance €27,438 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Property 1% of the gross rent This amount represents the JLL Estimate Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves 4% The yearly Capital Reserves JLL Estimate has been estimated to reflect the future capital expenditures to be sustained over the holding period starting from 01/07/2015 Service Charges €30/sq m To be applied to the vacant JLL Estimate office spaces.

The following Capital Expenditures have been gathered from the Technical Due Diligence Report:

Period Building Defects Administrative Costs Source of Data 0 -6 months €28,500 None Technical Due Diligence Report 7-12 months €306,300 None Technical Due Diligence Report 13–60 months None None Technical Due Diligence Report

We highlight that the above reported CAPEX is inclusive of all costs related building defects highlighted in the TDD report are included in the DCF model, while the “administrative costs” related to missing documents and certificates have been excluded as it appears reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

7.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis. Easements The TDD report states that the property is subject to the following easements: . The property forms part of Milanofiori Comprensorium and is subject to the related mutual easements – please refer to TDD for detailed information . Easement no. 8117/1 serie 3 registered on 17/02/1983 and linked to the electro duct piping transit over the land portion of 20m (sheet .14, map 11). For further information, please refer to the TDD report.

Commentary For the purposes of this valuation analysis we have assumed the subject property to be free from any onerous or unusual outgoings, covenants and/or restrictions, general or specific ground lease conditions, or other restrictions or rights of Third Parties that might limit the marketability of the property.

7.12 Tenancy At the valuation date, the property is let to seven Tenants. The current vacancy represents 45% of the GLA and includes:

. GF Retail unit: 213sq m . First floor Office: 2,646sq m . Second floor Office: 2,645sq m . Third floor Office: 1,731sq m . Fourth floor Office: 2,653sq m . Fifth floor Office: 3,190sq m . Storage: 883sq m . Eight covered parking spaces.

The main contractual details were extrapolated from the IM and are summarised below:

Tenants & Areas

Office Floor Retail GLA Storage GLA N. PS N. Surface Tenant GLA Covered Parking Space (sq m) (sq m) (sq m) Birra Peroni 4 533 Giemme s.n.c. G 1 203 (Restaurant) 6 1,232 Hasbro Italy SrL -1 25 Ipsoa Francis Lefebvre 3 916 6 1,917 OTS SpA G 15 W&L Solutions s.r.l. G 423 (Nursery) G 1 1 2,473 2 2,474 3 2,473 4 1,932 Wolters Kluwer Italia s.r.l. 5 1,932 U 675 U 23 G 18

Lease Dates & Break Options

2nd Lease Lease 1 Lease Term Break Tenant Lease Start Term Notes length Expiry Option Expiry Birra Peroni 15/11/2005 6+6 14/11/2011 14/11/2017 n.a - Giemme snc 01/01/2012 6+6 31/12/2017 31/12/2023 n.a - Hasbro Italy 21/02/2014 6+6 20/01/2020 20/01/2026 n.a - Hasbro Italy 2 21/02/2014 6+6 20/01/2020 20/02/2026 n.a 3 months’ notice Ipsoa Francis Lefebvre 01/06/2004 6+6 31/05/2010 31/05/2016 n.a - OTS Spa 01/04/2014 6+6 31/03/202 31/03/2026 yes3 - W&L Solutions srl 01/01/2014 6+6 31/12/2019 31/12/2025 no - Wolters Kluwer Italia s.r.l 01/08/2011 6+6 31/07/2017 31/07/2024 no -

3 B.O on 31/03/2018 with 9 months’ notice and a penalty of €230,000.

Passing Rent, Step Rents and Headline Rent

Passing Date Step Date Step Tenant Step 1 Step 2 HR Date HR Rent 1 2 Birra Peroni €92,437 ------Giemme snc €21,000 - - - - €27,487 01/08/2015 Hasbro Italy €0 €37,600 21/02/2015 €47,600 21/02/2016 €147,600 21/02/2017 Hasbro Italy 2 €25,000 ------Ipsoa Francis Lefebvre €136,650 ------OTS Spa €75,000 €150,000 01/04/2018 €230,000 01/04/2019 W&L Solutions srl €45,000 Wolters Kluwer Italia s.r.l €1,838,499

Rent revision & Indexation

Tenant ISTAT Indexation % Birra Peroni 75% Giemme snc 75% Hasbro Italy 75% Ipsoa Francis Lefebvre 75% OTS Spa 75% W&L Solutions srl 75% Wolters Kluwer Italia s.r.l 75%

7.13 Letting and Investment Transactions Letting Transactions The table below reports some letting transactions undergone during the last 12 months in the Periphery Office Sub-market:

Date of Location Sub-market sq m €/sq m Quality transaction Building A10 Milanofiori centro 7,500 €150 Grade B Q1/2014 Palazzo L Milanofiori centro 2,200 €150 Grade B Q4/2013 Palazzo L Milanofiori centro 1,100 €155 Grade B Q4/2013 Palazzo A7 Milanofiori centro 650 €145 Grade B Q3/2013

The letting transactions report the headline rents; we are not aware of the level of incentives granted to the Tenants.

Investment Transactions Please find below some recently investment transaction closed in the Milan market during the last 12 months:

Investment Date of Property/Location Sub-market Sale price GLA sq m GIY Type transaction Bodio 4, Bodio 5, La Semi-centre €63.9 million 28,000 Confidential Investment Q2/2013 Vela & La Stilo Pergolesi 25 CBD €28 million 5,630 6.19% Investment Q4/2013 Milanofiori HQ Nestlè €69 million 22,000 Confidential Investment Q1/2014 Nord Milanofiori Building U10 €44.5 million 11,520 Confidential Investment Q2/2014 Nord Light Building Periphery €45 million 18,000 Confidential Investment Q2/2014

7.14 Market Rent The Market Rent estimated takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be of €125/sq m for the offices, €100/sq m for the retail unit, €600 p.a for each surface car parking space and of €1,000/sq m for each covered car parking fees. The estimated Market Rent has been weighted according to use as follows:

. Offices: 100% . Retail: 100% . Storages: 33%

. Terraces: 0% . Technical Rooms: 0% . Hall: 0%

. Residential: 0% . Vertical Circulation: 0% . The car parking spaces have been valued on a number of parking space bases The total Market Rent is €3,841,343. The gross stabilised rent of the property is €4,239,320 (that includes: Headline Rent and the MR on current vacancies) showing an over-rented situation of approximately 10%.

Marketing Assumptions Our Market Rent estimate considers the following marketing assumptions:

. Letting Void (current vacancy): 36 months to full occupancy . Letting Void (at renewal): Nine months . Rent free period: 12 months

. TI’s: €62.5/sq m equal to six months’ rent.

Comments The adopted Market Rent for the office space of €125sq m, reflects the difference between the subject property and the reported market evidence within the Milanofiori District, which refers to better quality, refurbished space.

7.15 Future Income Performance The property is not fully let as at the valuation date. Rental Values within the Milanofiori District have been relatively stable benefitting from the underground station opening, which provides direct access to city. Over the last 24 months the letting activity within Assago showed an increasing interest for the Assago Milanofiori 2000, which is the new Office District of Assago. An increase of Milanofiori District rental values is not foreseeable in the short-medium term. The income performances of the property will improve subject to the absorption of the currently vacant spaces (from €2.2m approximately to €4.2m approximately).

7.16 Valuation Data The DCF analysis is based on the following parameters:

Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date Gross Rent as at the Valuation Date: €2,233,585 Market Rent: €3,841,343 p.a. Letting Void (renewal) Nine months Rent Free period (current & future 12 months vacancy): Tenant Improvements (Capital €62.5 (equal to six months’ rent on the office space) contribution future leases ): Non recoverable costs: . Property tax (IMU): €270,861 p.a. . Building Insurance: €27,438 p.a. . Building Management: 1% on the gross rent . Capital Reserves 4% starting from 01/07/2015 . CAPEX Urgent: €28,500 . CAPEX six-12 months: €306,300 . Service Charges: €30/sq m (on office GLA and applicable only for vacant spaces . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent

Gross Initial Yield: 5.89% Net Initial Yield: 3.60% Gross Exit Yield: 8.40% Net Exit Yield: 7.20% Equivalent Yield: 6.95% IRR (unleveraged): 8.45%

Comments The adopted gross initial yield is influenced by the current level of vacancy as the potential reversion yield of 10.15% remunerates the risk and the estimated timeframe to reach income stabilization. The adopted exit yield reflects the potential market appreciation for a Grade B property within the established office district of Milanofiori in comparison with the Milanofiori Nord where the yield level stands between 7.5% and 7.75% for recently developed and fully income producing buildings at market rental levels.

7.17 SWOT ANALYSIS Strengths . The property provides a Grade B office accommodation situated in an established office district

. The property presents the same technical characteristics of the adjoining properties within the Milanofiori Office District

Opportunities . The letting up of the vacant spaces will almost double the current passing rent . The property refurbishment might enhance both its value and attractiveness, however, the amount to be invested should be balanced by the achievable rental values, the demand main drivers and the value enhancement.

Weakness . The building presents some physical constrains (i.e. internal clear height)

Threats . Costs and risks associated to the current vacancy would discourage several investors’ categories reducing the potential spectrum of potential buyers to the opportunistic ones

7.18 Alternative use The property is not suitable for an alternative use in consideration of its typology and current planning use without foreseeing its redevelopment and a change of use procedure.

7.19 Saleability The property would represents an appealing investment opportunity for a wide range of investors in consideration of its volume, the secured income flow, mainly generated by ANAS, and the limited management necessary to preserve its value in the short term.

7.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property: . The present analysis is based on the gross built area GLA of the asset of 31,144sq m . We have considered an average construction cost per sq m based on market benchmarks of approximately €1,200/sq m on GLA reflecting an overall construction cost of €37,372,800 . We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution (10% on the construction costs).

Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs. On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approximately €46,100,000 (rounded) reflecting a cost of €1,480/sq m of GLA.

7.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is: €3,841,000 (rounded)

(Three Million Eight Hundred and Forty One Thousand Euros)

7.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows:

€37,900,000 (Thirty-seven Million Nine Hundred Thousand Euros)

€39,750,000 (Thirty Nine Million Seven Hundred Fifty Thousand Euros

76 Appendix 1

Location

Macro Location

Milanofiori, Strada 1-Building F4-F11, Assago

Micro Location Milanofiori, Strada 1-Building F4-F11, Assago

Appendix 2

Photos

Milanofiori, Strada 1-Building F4-F11, Assago

External Pictures

Milanofiori, Strada 1-Building F4-F11, Assago

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Assago Milanofiori,1,Strada,F4-11,Milan File/Ref No 3

Gross Valuation €40,126,805 Capital Costs -€335,000 Net Value Before Fees €39,791,805

Less Stamp Duty @4.00% of Net Value -€1,515,878 Agents Fee @0.75% of Net Value -€284,227 Legal Fee @0.25% of Net Value -€94,742

Net Valuation €37,896,957 Say €37,900,000

Equivalent Yield 6.7112% True Equivalent Yield 6.9582% Initial Yield (Deemed) 3.6051% Initial Yield (Contracted) 3.6051% Reversion Yield 8.3732%

Total Contracted Rent €2,233,585 Total Current Rent €2,233,585 Total Rental Value €3,841,343 No. Tenants 15 Capital value per m² €1,051.06

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €2,233,585 €1,434,533 3.6051 % 3.6878 % 05-Dec-2014 €2,233,585 €1,440,983 3.6213 % 3.7048 % 21-Feb-2015 €2,271,185 €1,478,019 3.7144 % 3.8022 % 05-Jun-2015 €2,271,185 €1,133,308 2.8481 % 2.8995 % 01-Jul-2015 €2,277,671 €1,048,589 2.6352 % 2.6792 % 05-Dec-2015 €2,277,671 €1,176,365 2.9563 % 3.0117 % 21-Feb-2016 €2,287,671 €1,185,815 2.9800 % 3.0364 % 01-Jun-2016 €2,151,021 €1,026,410 2.5795 % 2.6216 % 05-Jun-2016 €2,566,203 €663,955 1.6686 % 1.6861 % 01-Dec-2016 €2,566,203 €682,775 1.7159 % 1.7344 % 05-Dec-2016 €2,912,139 €2,290,296 5.7557 % 5.9689 % 21-Feb-2017 €3,012,139 €2,384,796 5.9932 % 6.2246 % 05-Jun-2017 €3,603,629 €2,717,326 6.8289 % 7.1306 % 31-Jul-2017 €1,765,130 €979,945 2.4627 % 2.5011 % 15-Nov-2017 €1,672,694 €874,983 2.1989 % 2.2295 % 01-Dec-2017 €1,787,194 €994,635 2.4996 % 2.5391 %

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

05-Dec-2017 €1,787,194 €1,338,676 3.3642 % 3.4361 % 31-Dec-2017 €1,759,708 €1,312,702 3.2989 % 3.3681 % 31-Jan-2018 €3,231,852 €2,703,878 6.7951 % 7.0937 % 01-Apr-2018 €3,306,852 €2,774,753 6.9732 % 7.2880 % 15-May-2018 €3,306,852 €2,785,701 7.0007 % 7.3181 % 05-Jun-2018 €3,650,893 €3,145,223 7.9042 % 8.3107 % 01-Jul-2018 €3,671,793 €3,164,974 7.9538 % 8.3655 % 01-Apr-2019 €3,751,793 €3,240,574 8.1438 % 8.5758 % 15-May-2019 €3,818,418 €3,310,197 8.3188 % 8.7700 % 01-Jan-2026 €3,773,418 €3,249,192 8.1655 % 8.5998 % 21-Feb-2026 €3,600,818 €3,031,035 7.6172 % 7.9942 % 01-Apr-2026 €3,370,818 €2,728,005 6.8557 % 7.1598 % 01-Jul-2026 €3,370,818 €2,742,195 6.8914 % 7.1987 % 21-Aug-2026 €3,370,818 €2,779,345 6.9847 % 7.3006 % 01-Oct-2026 €3,370,818 €2,840,163 7.1376 % 7.4677 % 05-Jun-2027 €2,955,636 €2,335,827 5.8701 % 6.0920 % 01-Jul-2027 €2,998,536 €2,380,658 5.9828 % 6.2134 % 21-Aug-2027 €3,177,536 €2,567,713 6.4529 % 6.7218 % 01-Oct-2027 €3,426,161 €2,827,526 7.1058 % 7.4329 % 05-Dec-2027 €3,080,225 €2,062,782 5.1839 % 5.3563 % 05-Jun-2028 €2,488,735 €1,468,688 3.6909 % 3.7777 % 05-Dec-2028 €2,903,917 €1,106,233 2.7801 % 2.8290 % 05-Jun-2029 €2,905,812 €2,295,767 5.7694 % 5.9836 % 05-Dec-2029 €3,497,302 €2,628,297 6.6051 % 6.8871 % 05-Jun-2030 €3,497,302 €2,972,338 7.4697 % 7.8319 % 05-Dec-2030 €3,841,343 €3,331,861 8.3732 % 8.8305 %

Yields based on €39,791,805

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold OTS S.p.A. 6 NA 31-Mar-2026 €75,000 Unrounded €248,625 All Units Initial Yield 3.575 €1,405,759 Birra Peroni S.p.A. 1 NA 14-Nov-2017 €92,436 Unrounded €66,625 All Units Initial Yield 3.575 €2,411,048 Giemme s.n.c. (Restaurant) 2 NA 31-Dec-2023 €21,000 Unrounded €20,900 All Units Initial Yield 3.575 €510,128 Hasbro Italy S.r.l. 3 NA 20-Feb-2026 €0 Unrounded €154,000 All Units Initial Yield 3.575 -€424,488 Ipsoa Francis Lefebvre S.r.l. 5 NA 31-May-2016 €136,650 Unrounded €114,500 All Units Initial Yield 3.575 €3,531,631 W&L Solutions S.r.l. (Nursery) 7 NA 31-Dec-2025 €45,000 Unrounded €42,900 All Units Initial Yield 3.575 €1,097,362 Wolters Kluwer Italia S.r.l. 8 NA 31-Jul-2023 €1,838,499 Unrounded €1,472,144 All Units Initial Yield 3.575 €47,582,639 Vacant 1 9 NA 04-Jun-2028 €0 Unrounded €21,300 All Units Initial Yield 3.575 -€331,852 Vacant 2 10 NA 04-Dec-2026 €0 Unrounded €0 All Units Initial Yield 3.575 -€230,155 Vacant 3 11 NA 04-Jun-2029 €0 Unrounded €344,041 All Units Initial Yield 3.575 -€3,313,818 Vacant 4 12 NA 04-Jun-2028 €0 Unrounded €344,914 All Units Initial Yield 3.575 -€3,312,673 Vacant 5 13 NA 04-Jun-2028 €0 Unrounded €225,276 All Units Initial Yield 3.575 -€2,168,608 Vacant 6 14 NA 04-Dec-2027 €0 Unrounded €345,936 All Units Initial Yield 3.575 -€3,322,896 Vacant 7 15 NA 04-Jun-2027 €0 Unrounded €415,182 All Units Initial Yield 3.575 -€3,996,084 Hasbro Italy S.r.l. (Parking) 4 NA 20-Feb-2026 €25,000 Unrounded €25,000 All Units Initial Yield 3.575 €688,811 Total €2,233,585 €3,841,343 €40,126,805

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 3 REPORT Discounted Cashflow jones lang lasalle

Address Assago Milanofiori,1,Strada,F4-11,Milan,Milan DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €39,795,000 Geared IRR 8.4547% Start: Acquisition Fee @ 5.0000% -€1,895,000 Ungeared IRR 8.4547% Start: Net Value €37,900,000

Exit Results

Exit: Gross Value €51,761,362 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €51,761,362 Exit: Vendors Fees -€517,614 Exit: Rent adjustments €0 Exit: Adjusted Net Value €51,243,749

Exit: Rent payable (gross) €4,319,097 Exit: Market rent (gross) €4,548,553 Exit: Rent receivable (net) €3,726,818 Exit: Market rent (net) €3,956,274 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 7.2000% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 7.2000% (Net Rent / Net Value X 100) Exit: Net Revn Yield 7.6433% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 7.6433% (Net ERV / Net Value X 100) 8.7875% (Gross ERV / Gross Value X 100) 8.7875% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 6.7434% Exit: Vendors Fees 1.0000% (-€517,614)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€39,449,751 €559,462 €0 €3,841,343 -€214,213 €0 1.0000 -€39,452,846 2 05-Sep-2014 04-Dec-2014 €345,646 €560,065 €0 €3,841,343 -€214,419 €0 0.9707 €335,520 3 05-Dec-2014 04-Mar-2015 €212,229 €564,313 €0 €3,841,343 -€352,084 €0 0.9483 €201,263 4 05-Mar-2015 04-Jun-2015 €217,153 €569,863 €0 €3,848,807 -€352,710 €0 0.9291 €201,765 5 05-Jun-2015 04-Sep-2015 €233,158 €573,848 €0 €3,859,350 -€340,691 €0 0.9088 €211,889 6 05-Sep-2015 04-Dec-2015 €275,159 €575,079 €0 €3,869,918 -€299,920 €0 0.8926 €245,608

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Assago Milanofiori,1,Strada,F4-11,Milan,Milan DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €281,886 €576,387 €0 €3,880,516 -€294,501 €0 0.8743 €246,464 8 05-Mar-2016 04-Jun-2016 €298,347 €566,656 €0 €3,895,235 -€268,308 €0 0.8579 €255,957 9 05-Jun-2016 04-Sep-2016 €160,229 €681,095 €0 €3,911,686 -€520,865 €0 0.8304 €133,047 10 05-Sep-2016 04-Dec-2016 €186,490 €653,148 €0 €3,928,208 -€466,658 €0 0.8168 €152,321 11 05-Dec-2016 04-Mar-2017 €635,704 €777,308 €0 €3,944,796 -€141,604 €0 0.8108 €515,422 12 05-Mar-2017 04-Jun-2017 €623,376 €766,852 €0 €3,963,528 -€143,475 €0 0.7942 €495,076 13 05-Jun-2017 04-Sep-2017 €392,753 €645,834 €0 €3,983,198 -€253,082 €0 0.7773 €305,283 14 05-Sep-2017 04-Dec-2017 €251,054 €448,086 €0 €4,002,967 -€197,032 €0 0.7602 €190,843 15 05-Dec-2017 04-Mar-2018 €598,381 €706,364 €0 €4,022,834 -€107,983 €0 0.7476 €447,351 16 05-Mar-2018 04-Jun-2018 €721,746 €854,206 €0 €4,042,097 -€132,460 €0 0.7326 €528,764 17 05-Jun-2018 04-Sep-2018 €850,800 €982,316 €0 €4,061,159 -€131,516 €0 0.7183 €611,141 18 05-Sep-2018 04-Dec-2018 €827,045 €959,324 €0 €4,080,314 -€132,279 €0 0.7037 €582,022 19 05-Dec-2018 04-Mar-2019 €828,531 €961,313 €0 €4,099,558 -€132,782 €0 0.6894 €571,201 20 05-Mar-2019 04-Jun-2019 €858,490 €992,431 €0 €4,116,019 -€133,940 €0 0.6755 €579,909 21 05-Jun-2019 04-Sep-2019 €872,600 €1,008,432 €0 €4,131,369 -€135,832 €0 0.6622 €577,836 22 05-Sep-2019 04-Dec-2019 €874,043 €1,010,443 €0 €4,146,775 -€136,400 €0 0.6489 €567,161 23 05-Dec-2019 04-Mar-2020 €875,054 €1,011,840 €0 €4,162,236 -€136,786 €0 0.6357 €556,266 24 05-Mar-2020 04-Jun-2020 €877,169 €1,014,389 €0 €4,181,406 -€137,219 €0 0.6229 €546,393 25 05-Jun-2020 04-Sep-2020 €883,555 €1,021,468 €0 €4,202,160 -€137,913 €0 0.6106 €539,479 26 05-Sep-2020 04-Dec-2020 €885,133 €1,023,743 €0 €4,223,014 -€138,611 €0 0.5983 €529,589 27 05-Dec-2020 04-Mar-2021 €886,429 €1,025,559 €0 €4,243,973 -€139,129 €0 0.5861 €519,570 28 05-Mar-2021 04-Jun-2021 €888,898 €1,028,514 €0 €4,265,035 -€139,616 €0 0.5743 €510,526 29 05-Jun-2021 04-Sep-2021 €896,218 €1,036,575 €0 €4,286,203 -€140,357 €0 0.5630 €504,555 30 05-Sep-2021 04-Dec-2021 €897,996 €1,039,097 €0 €4,307,474 -€141,101 €0 0.5517 €495,400 31 05-Dec-2021 04-Mar-2022 €899,333 €1,040,964 €0 €4,328,853 -€141,631 €0 0.5404 €486,041 32 05-Mar-2022 04-Jun-2022 €901,836 €1,043,964 €0 €4,350,337 -€142,127 €0 0.5296 €477,582 33 05-Jun-2022 04-Sep-2022 €909,265 €1,052,146 €0 €4,371,926 -€142,881 €0 0.5191 €472,002 34 05-Sep-2022 04-Dec-2022 €911,068 €1,054,706 €0 €4,393,625 -€143,639 €0 0.5087 €463,432 35 05-Dec-2022 04-Mar-2023 €912,422 €1,056,601 €0 €4,415,430 -€144,179 €0 0.4983 €454,677 36 05-Mar-2023 04-Jun-2023 €914,961 €1,059,646 €0 €4,437,343 -€144,685 €0 0.4883 €446,762 37 05-Jun-2023 04-Sep-2023 €922,499 €1,067,951 €0 €4,459,366 -€145,452 €0 0.4786 €441,542 38 05-Sep-2023 04-Dec-2023 €924,327 €1,070,550 €0 €4,481,499 -€146,223 €0 0.4690 €433,531 39 05-Dec-2023 04-Mar-2024 €925,705 €1,072,478 €0 €4,503,739 -€146,773 €0 0.4595 €425,340 40 05-Mar-2024 04-Jun-2024 €928,275 €1,075,564 €0 €4,526,090 -€147,289 €0 0.4502 €417,941 41 05-Jun-2024 Final period €51,243,749 €4,548,553 0.4445 €22,776,506 PV factor is averaged over multi-discount dates. NPV Balance €131

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Assago Milanofiori,1,Strada,F4-11,Milan,Milan DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity OTS S.p.A. €247,089 €205,403 €294,398 €252,712 €2,852,824 100.00% Birra Peroni S.p.A. €76,627 €66,638 €78,891 €68,902 €925,527 100.00% Giemme s.n.c. (Restaurant) €23,865 €19,641 €24,747 €20,523 €272,785 100.00% Hasbro Italy S.r.l. €163,113 €136,090 €182,352 €155,329 €1,890,140 100.00% Ipsoa Francis Lefebvre S.r.l. €129,874 €112,805 €135,580 €118,511 €1,566,735 100.00% W&L Solutions S.r.l. (Nursery) €51,076 €42,207 €50,798 €41,929 €586,208 100.00% Wolters Kluwer Italia S.r.l. €1,667,077 €1,444,727 €1,743,175 €1,520,825 €20,065,650 100.00% Vacant 1 €24,299 €19,913 €25,221 €20,835 €276,569 100.00% Vacant 2 €0 -€2,115 €0 -€2,115 -€29,376 100.00% Vacant 3 €394,232 €342,096 €407,381 €355,245 €4,751,338 100.00% Vacant 4 €393,467 €341,384 €408,414 €356,331 €4,741,444 100.00% Vacant 5 €256,987 €222,924 €266,750 €232,687 €3,096,165 100.00% Vacant 6 €390,925 €338,888 €409,625 €357,588 €4,706,775 100.00% Vacant 7 €472,050 €409,365 €491,619 €428,934 €5,685,619 100.00% Hasbro Italy S.r.l. (Parking) €28,416 €26,853 €29,602 €28,039 €372,960 100.00%

Sum of tenant gross values €4,319,097 €3,726,818 €4,548,553 €3,956,274 €51,761,362 100.00%

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 3 Headings Start date Months 1 - 12 Months 13 - 24 Months 25 - 36 Months 37 - 48 Months 49 - 60 Months 61 - 72 Months 73 - 84 Months 85 - 96 Months 97 - 108 Months 109 - 120 Month 121 Jun-14 Jun '14-May '15 Jun '15-May '16 Jun '16-May '17 Jun '17-May '18 Jun '18-May '19 Jun '19-May '20 Jun '20-May '21 Jun '21-May '22 Jun '22-May '23 Jun '23-May '24 Jun '24 Assago Milanofiori,1,Strada,F4-11,Milan,Milan OTS S.p.A. 0 75,123 75,669 76,454 95,411 170,000 230,701 233,676 237,181 240,739 244,350 2,852,824 Birra Peroni S.p.A. 0 92,739 93,384 94,376 35,293 9,085 70,599 72,330 73,417 74,520 75,639 925,527 Giemme s.n.c. (Restaurant) 0 21,063 27,486 27,775 14,003 22,075 22,357 22,652 22,992 23,338 23,689 272,785 Hasbro Italy S.r.l. 0 13,473 41,199 83,433 148,389 150,546 152,522 154,495 156,817 159,172 161,568 1,890,140 Ipsoa Francis Lefebvre S.r.l. 0 136,728 126,258 0 68,684 119,577 121,824 123,453 125,289 127,169 129,076 1,566,735 W&L Solutions S.r.l. (Nursery) 0 45,135 45,457 45,934 46,572 47,253 47,855 48,483 49,211 49,949 50,699 586,208 Wolters Kluwer Italia S.r.l. 0 1,844,385 1,857,280 1,876,920 791,144 1,551,705 1,571,398 1,592,415 1,616,138 1,640,419 1,665,065 20,065,650 Vacant 1 000023,28422,33222,62222,91723,26123,61023,965276,569 Vacant 2 000000000 0 0-29,376 Vacant 3 00000382,938 367,022 371,803 377,389 383,059 388,814 4,751,338 Vacant 4 0000377,036 361,615 366,309 371,081 376,656 382,315 388,059 4,741,444 Vacant 5 0000246,256 236,184 239,250 242,366 246,007 249,703 253,455 3,096,165 Vacant 6 0 0 0 200,372 354,966 362,010 366,605 371,505 377,042 382,707 388,457 4,706,775 Vacant 7 0 0 0 447,639 427,603 433,837 439,469 445,193 451,881 458,671 465,562 5,685,619 Hasbro Italy S.r.l. (Parking) 0 25,057 25,238 25,500 25,851 26,227 26,571 26,915 27,319 27,729 28,147 372,960 Overall data Total Rental income 0 2,253,703 2,291,970 2,878,403 2,654,490 3,895,384 4,045,103 4,099,284 4,160,600 4,223,099 4,286,543 0 Total LH Ground Rent payments 000000000 0 00 Registration Acquisition Tax 0 -200 0000000 0 00 Capex Urgent 0 -28,500 0000000 0 00 Capex 6-12 months 0 -306,300 0000000 0 00 Service Charges 0 -465,561 -306,346 -95,619 -9,275 0000 0 00 Letting Fees 00-76,659 -71,988 -42,711 0000 0 00 IMU 0 -271,651 -274,517 -278,823 -284,186 -289,603 -294,290 -299,821 -305,817 -311,934 -318,172 0 Insurance 0 -27,491 -27,781 -28,216 -28,759 -29,307 -29,782 -30,341 -30,948 -31,567 -32,199 0 Capital reserves 00-91,994 -112,316 -106,896 -154,177 -161,585 -163,727 -166,159 -168,655 -171,188 0 RTL 0 -11,241 -11,490 -14,037 -13,305 -19,144 -20,194 -20,460 -20,764 -21,076 -21,393 0 Building management 0 -22,482 -22,980 -28,074 -26,610 -38,287 -40,387 -40,920 -41,528 -42,152 -42,785 0 *Undefined 000-15,513 00000 0 00 Tenant Improvments 0000-178,816 0000 0 00 Capex Letting 000000000 0 00 Tenant Improvements 00-383,913 -635,757 00000 0 00 Total Operating revenues 000000000 0 00 Total Capital receipts 000000000 0 051,790,738 Total Operating costs 0 -798,426 -1,195,680 -1,280,343 -690,557 -530,518 -546,237 -555,270 -565,217 -575,384 -585,737 0 Total Capital expenditure -39,795,000 -335,000 0000000 0 0-546,989 SUMMARY Interest/service 000000000 0 00 Total Debt/Equity 000000000 0 00 Net Cash Flow -39,795,000 1,120,277 1,096,290 1,598,060 1,963,933 3,364,866 3,498,866 3,544,014 3,595,384 3,647,716 3,700,806 51,243,749 Net Cash Balance -39,795,000 -38,674,723 -37,578,433 -35,980,373 -34,016,440 -30,651,575 -27,152,709 -23,608,695 -20,013,311 -16,365,595 -12,664 ,789 38,578,960

Property Report

Agrate Brianza, Via Paracelso 22-24-26

8 Agrate Brianza, Via Paracelso 22-24-26

8.1 Location The property is comprised within the Centro Direzionale Colleoni, (hereinafter the Business Park) a peripheral office business park to the north-west of the city of Milan located in the Municipality of Agrate Brianza, next to the intersection of the SP 13 (extra urban road) with the Milan’s Eastern Bypass.

Agrate Brianza is located in the Province of Monza-Brianza in the west part of the Lombardy Region. The main cities near Agrate Brianza, are: Monza (7km west); Milano (20km south-west) and Bergamo (30km to the north- east). The municipality has approximately 15,000 inhabitants (1 January 2013). Agrate Brianza is a renowned Municipality for its active urban context hosting important industrial areas, such as STAR and STMicroelectronics, and a very high number of national and international firms. The Business Park was developed during the 1980s and 1990s and accommodates 10 Buildings, each one with 8/9 floors above ground, totalling a lettable area of circa 120,000 sq m. It is a consolidated scheme offering a wide range of ancillary services including banks, a nursery, post office, underground and surface parking facilities, a four star hotel, canteen, sports centre and several restaurants. It benefits also from good visibility on the by-pass road. The subject property whose main façade is turned to the west, facing Via Paracelso.

8.2 Accessibility Road The property benefits from good road accessibility being located less than 1km away from Milan’s Eastern Bypass which allows direct connection to the A4 Torino-Trieste Motorway as well as to the Milan’s city centre. Rail Agrate Brianza does not have the benefit of a railway station. The nearest railway station falls within the Municipality of Monza and is served by Milan’s suburban lines: S8 line (Milano Porta Garibaldi-Lecco), S9 (Albairate -Vermezzo-Seregno), S11 (Milano Porta Garibaldi-Chiasso), and by regional lines: Line R (Milano- Molteno-Lecco), Line R (Milano Porta Garibaldi-Bergamo), Line RE (Milano Centrale-Sondrio-Tirano).

Public Transport Cologno Nord is the nearest underground station (line M2 of the underground system of Milan) to Via Colleoni and is situated some 8km south-west of the property. There is a free bus shuttle connecting the office park with the above referred metro station as well as with Cascina Gobba metro station. The future opening of a new underground station Agrate Colleoni (extension of line M2 of the underground system of Milan), based on the information made available the works will start in 2015.

Air The international airport of Linate is located some 20km south of the property, while international airport of Malpensa is located approximately 50km north-west of the property.

8.3 Site and Property Description Site Characteristics and Accessibility The subject property is an office building identified as “Cassiopea”. It is developed on an irregular shaped land plot. The site is not fenced and it is bounded by the parking area to the east and by green areas on the remaining sides. The building under analysis has three main pedestrian entrances, positioned along Via Paracelso 22, 24 and 26. Three secondary pedestrian entrances are positioned along the western side of the building. The property is served by two vehicular accesses leading to the external uncovered parking area; the accesses are respectively positioned on the south side and on the north side of the land plot.

Property Description The office property under analysis is an office building totalling a gross area of 15,880 sq m. The property is developed on nine above ground floors and an underground level. It is equipped with an external parking area. The ground floor hosts the entrances and internal common space, and a portion of office space. The floor from first to the seventh host offices, the basement level hosts storages and technical room, while the roof top hosts technical rooms. The ground level benefits from 84 uncovered parking spaces. The building was probably constructed during the 1980s and the façade has been refurbished in 2013. The building has a reinforced concrete frame structure, curtain wall façade partially glazed and partially characterised by ribbon-windows. The rooftop is flat and is accessible for maintenance activity. The building has an irregular shape plan resulting from the union of three rectangular blocks. The typical floor is from the first to the seventh (approximately 1,500 sq m of GFA per floor). The offices present either open-plan or single office layout. The floor plan is flexible: the floor could be let up to three tenants per floor being composed of three blocks that could be kept connected or divided, being equipped with vertical connection (two lifts, one goods lift and a staircase) on each block. In terms of finishing, the offices are equipped with suspended ceilings, raised floors and aluminium window frames. The floor finishes in the offices differ on each floor according to tenants’ needs and includes: carpeting, wooden flooring or made of PVC.

The building is equipped with heating and air conditioning system via fan coil perimeter units, water plant and sewage system. The fire-extinguishing plant includes hydrants. The vertical connection in each block is guaranteed by: . Two lifts, serving floors from ground to seventh . One staircase serving all floors

. One goods lift serving all floors . External emergency staircase The Business Park benefits from a wide landscaped area in the inner part of the land plot. The building under analysis is bounded to the east by the aforementioned landscaped area and to the west by surface parking space and vehicular viability.

8.4 State of Repairs We inspected the property on 30 May 2014. Based on the purely visual analysis the property is overall in good state of repairs both with reference to the fishes as to technical specification presenting only damages typical to age and usage.

8.5 Accommodation For the purposes of this valuation we have adopted the following Gross Floor Areas (GFA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried out.

Horizontal Vertical Office Archives External Total (sq Floor Connections Connections (sq (sq m) (sq m) Parking (sq m) m) (sq m) m) First Basement - 1,169 - 95 - 1,264 Ground 1,208 - - 124 2,177 3,509 First 1,383 - - 117 - 1,500 Second 1,386 - - 117 - 1,503 Third 1,416 - - 124 - 1,540 Fourth 1,390 - - 120 - 1,510 Fifth 1,381 - - 117 - 1,498 Sixth 1,415 - - 124 - 1,539 Seventh 1,415 - - 124 - 1,539 Eight - - 435 43 - 478 Total 10,994 1,169 435 1,105 2,177 15,880

The property totals a GFA of 15,880 sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 12,163 sq m. The GLA adopted includes the areas referred to in the table above as: offices and archives. The GLA does not include the areas identified as: horizontal and vertical connection.

The GLA does not include the area for the parking facilities (2,177 sq m) as being valued on number of car parking space basis and not on a square meter basis in number of 184 surface parking spaces.

Commentary The TDD report provided reports a GFA of 21,846sq m and cannot be comparable with the GFA reported in the IM of 15,880 sq m as the areas in the IM does not report the technical rooms on all floor whilst the TDD reports this surface. With reference to the GLA, the GLA reported in the TDD report is of 12,579 sq m, in the order of +3% if compared to the GLA by us adopted of 12,163 sq m. The TDD Report does not provide the area split per use and per Tenant, therefore our analysis is based on the gross areas reported within the IM. We highlight that, it is our understanding that the for the purposes of the TDD, has not been performed a check measurement on site nor on property plans therefore the discrepancy could be due to the difference source of information used for the preparation of the IM and of the TDD report.

8.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, except for the below reported findings extrapolated from the EDDR Report provided, as follows:

Soil, Subsoil and Groundwater . The EDD reports that, in 2003 analysis was carried out the on the micro samplings to identify the presence of deleterious materials around the area where underground tanks were positioned. The results were compared with the limits set by Law for commercial sites and they do not exceed the Law limits.

. The presence of filling material must be properly taken into account during any intervention that might involve excavation works and earth movement. The EDDR advises to analyse the landfill quality in case excavation or earth movement occurs.

GHG Emissions and ODS . The EDD underline that the documentation made available was not inclusive of documents relating to the management of fluorinated greenhouse gases. The EDD advise to retrieve the missing documentation or draw up new maintenance documents.

Pathogens . The building hosts two AHU on the rooftop . The EDD reports that there is no evidence of a proper management of them in compliance with Accordo Stato Regioni. The EDD advises that an implementation of the sanitation of air treatment unit for each floor of the building is required.

Materials Containing Asbestos (AMC) . The EDD reports that during the inspection of the building it has been observed the presence of materials that could contain AMC. The EDD advises to conduct the AMC sampling campaign.

Man Made Vitreous Fibres (MMVF) . The documentation made available for the purposes of the Environmental Assessment shows no sign of sampling on materials potentially containing MMVF. The EDD reports that during the inspection of the building has been observed the presence of materials that could be contain MMVF, the EDD advises to conduct the MMVF sampling campaign and, if the assessment will find the presence of MMVF, it will be necessary to integrate the “Chemical risk assessment document” as per Law 81/2008.

Ionizing and Non-Ionizing Radiations . The building has a basement floor hosting technical rooms, object of maintenance activity by technicians . The documentation made available for the purposes of the Environmental Assessment shows no sign of sampling campaign of Radon (radioactive gas). The EDD advises to conduct the Radon monitoring campaign that could be present in the basement level. The EDD report quantifies an amount equal to €52,500 for the necessary verification of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the building compliance with the mandatory legislation.

Commentary We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material with the property, therefore for the purposes of this valuation we have relied on the findings of the EDD.

8.7 Cadastral Data Based on the information reported in the TDD Report the property under analysis is registered as follows:

Building Registry of Agrate Brianza

Sheet Parcel Sub Category 31 94 2 n.a. 31 94 10 n.a. 31 94 25 n.a. 31 94 28 n.a. 31 94 From 701 to 764 n.a. 31 94 From 767 to 771 n.a. 31 94 775 n.a. 31 94 From 780 to793 n.a. 31 94 890 n.a. 31 109 From 2 to 189 n.a.

Land Registry of the Municipality of Agrate Brianza

Sheet Parcels Category Site Area 31 109 Urban entity n.a. 31 94 Urban entity n.a.

Commentary The TDD reports that the administrative documents allowing the construction of the building are missing. The TDD states that after the retrieving of the missing documentation, will be necessary to verify that the cadastral variations have been correctly done.

For the purposes of this valuation we have assumed that the cadastral identification of the building will be amended prior to the sale of the property and therefore no related risks were taken into account in our analysis.

8.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below:

. A valid Building Certificate of Use (CDU) has not been made available for the purposes of the TDD analysis

. In the CDU made available (dated 09/06/1995) is reported a zoning plan of a wider area, where belong also the property under analysis. The area is zoned as reported below:

 Office area (“Zona Terziaria T”), where can be hosted: office, administrative and commercial activity

 Street boundary limits area (“Zona ASR di salvaguardi e rispetto stradale”)  Public service area (“Zona SC Aree per servizi e attrezzature pubbliche”) The TDD reports that it was not possible to properly identify the zone where the property falls, because the CDU was a black and white copy, and the boundary of the listed zones was not visible. . The Municipality of Agrate Brianza approved in 2009 a new town planning tool (named The Territorial Government Plan – PGT). The PGT define the area where the property falls as a dedicated mainly office use (“Unità territoriali UP – Ambiti a prevalente specializzatione terziaria”); . The planning aim for the mentioned zone is to maintain the current urban characteristics and use. All the typologies of the building intervention are allowed and the main use foreseen is office use. The uses not allowed are: agricultural, manufacturing, energy production, waste management, car dealer, retail (shopping centre, medium and big surface units, telephone centre), logistics, betting shops, recreational activity, residential; . With reference to the planning documentation, the TDD report states that the following documents - Parcelling plan issued by Municipality on 06/07/1981, and approved by Region of Lombardy on 23/10/1981 (“Piano di Lottizzazione”), Planning agreement dated 12/01/1982 no.280904/11397 (“Convenzione di Lottizzazione”), and integrative deed dated 11/04/1989 no.81267/8792 (“Atto integrativo alla convenzione”) - are missing, therefore the duty discharge and the conformity of the building cannot be ascertained;

. With reference to the building permit, the TDD report states that that the administrative documents allowing the construction of the building (undersigned by the architect/engineer and validated by the Municipality): building permit no.5/82 dated 21/10/1982 (“Concessione edilizia originaria”), integrative modifications dated 12/01/1983, 23/03/1983, 01/04/1984 and 28/05/1985 (“variant alla concessione edilizia”) are missing, therefore the conformity of the building cannot be ascertained;

. The TDD underline that the documents related to the internal works carried out by five tenants were not made available.

Commentary

For the purposes of this valuation it has been assumed that all relevant building missing permits were regularly requested and granted by the Local Authority and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated to these aspects.

8.9 Building Certifications CPI – Fire prevention Certificate The TDD reports that the building benefits from a CPI (dated 19/04/2005) related to the heating plant, and lifts, updated on 03/08/2010 and valid until 14/07/2013. On 14/04/2014 was presented a request for a compliance renewal (related to the CPI about to expiry on 14/07/2013). The TDD highlights that the available CPI was issued before the Law 151/2011 was in force; the Law place the building under analysis into activity category 73/c. The Law foresees some fulfillment for buildings that fall within the activity category 73/c that must be done before 07/10/2014 (not described in the TDD). The TDD advises to provide a guarantee to cover the obligation before the expiry date 07/10/2014, date that based on the TDD report, could be delayed.

Fitness for Use Certificate According to the TTD report, the Fitness for Use Certificate (Certificato di Agibilità) was issued on 4 May 1984 for a covered surface of 1,572.20 sq m and a volume of 40,255.50 with reference to the building permit no.5/82 and following modification on 12/01/1983 and 23/03/1983.

8.10 Annual Non-recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €142.403 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance €9.477 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Property 1% of the gross stabilised rent This amount represents the The IM Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of

Cost Amount p.a /% on Gross Rent Note Source of Data the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves 4% The yearly Capital Reserves JLL Estimate has been estimated to reflect the future capital expenditures to be sustained over the holding period starting from 01/07/2015. Service Charges €30 To be applied to the vacant JLL Estimate office spaces.

The following Capital Expenditures have been gathered from the Technical Due Diligence Report:

Period Building Defects Administrative Costs Source of Data 0 -6 months €159,000 none Technical Due Diligence Report 7-12 months €56,800 none Technical Due Diligence Report 13 60 months none none Technical Due Diligence Report

8.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis.

Easements The TDD states that is to be clarified if the part 103.728/1,000 of Lot D and 196.325/1,000 of building B7 (technological rooms) sold by Prefim S.p.A. to MAA Assicurazioni Auto e Rischi Diversi, were included in the transaction and if they are held by Berenice – Fondo Uffici.

The TDD report states that the property is subject to the following easements: . Easement granted by virtue of the Deed no.54299/5612 dated 14/11/1985 in favour of Enel that have the right to place electrical plant in a dedicated room. The TDD report that the plan indicating the room object of the easement was not made available;

. Easement granted by virtue of the Deed no. 44335 dated 17/02/1984 in favour of the buildings of Centro Colleoni, including the property under analysis, regarding a right of way on retail plaza on building B5, on first and second floor level accesses and on stairs and lift of the same building; . Easements granted by virtue of the District Regulations (“Regolamento di Comprensorio”) regarding right of way, positioning of street furniture etc. For further information please refer to DDT.

8.12 Tenancy At the valuation date, the property is let to 14 Tenants on the basis of 14 lease agreements and their further amendments. The current vacancy is represented by: . Office: 6,070sq m;

. Archives: 343m. The main contractual details are summarised as follows:

Tenants & Areas

Horizontal Vertical Floor Office GLA Archives Tenant connection Connection N. PS (sq m) (sq m) (sq m) (sq m) (sq m) 3 472

S1 80 American Appraisal Italia G 3 s.r.l. 8 18.68

All 47.44

5 197

T 6 Atmel Italia s.r.l. 8 7.79

All 19.80

2 204

Bivio Networks G 3 Europe Limited 8 8.07

All 20.50

2 157

S1 35

C. Besati & C. G 3 s.r.l. 8 6.21

All 15.78

Card Protection 5 471

Plan LTD S1 31

Horizontal Vertical Floor Office GLA Archives Tenant connection Connection N. PS (sq m) (sq m) (sq m) (sq m) (sq m) G 3 8 18.64

All 47.34

4 156

S1 77 Constructor Dexion Italia G 2 s.r.l. 8 6.17

All 15.68

1 99

Hamilton Italia G 1 s.r.l. 8 3.92

All 9.95

1 126

I.L.F. Engineers G 1 Italia s.r.l. 8 4.99

All 12.66

5 156

S1 25

Inter Data s.r.l. G 2 8 6.17

All 15.68

T 346

S1 29 LTX Credence G 10 Italia s.r.l. 8 13.69

All 34.78

2 324 Maxim Integrated G 4 Products UK 8 12.82

LTD All 32.57

6 943

7 944 REAG Real Estate S1 506

Advisory Group G 26 S.p.A. 8 74.66

All 189.66

1 231 Terminal G 4 Rinfuse Italia 8 9.14 S.p.A. All 23.22

4 98

S1 44 TFE Thin Film G 1 Equipment s.r.l. 8 3.88

All 9.85

Lease Dates & Break Options

Lease Lease 1 Lease 2nd Lease Term Tenant Break Option Start length Term Expiry Expiry

30/06/2014 or American Appraisal Italia s.r.l. 01/07/2010 6+6 30/06/2016 30/06/2022 30/06/2020 9 months’ notice 16/01/2015 Atmel Italia s.r.l. 17/01/2011 6+6 16/01/2017 16/01/2023 9 months’ notice

Bivio Networks Europe Limited 01/02/2010 6+6 31/01/2016 31/01/2022 None

C. Besati & C. s.r.l. 01/04/2010 6+6 31/03/2016 31/03/2022 None Card Protection Plan LTD 01/01/2011 6+6 31/12/2016 31/12/2022 None

Constructor Dexion Italia s.r.l. 01/03/2005 6+6 28/02/2011 28/02/2017 None

Hamilton Italia s.r.l. 05/03/2010 6+6 04/03/2016 04/03/2022 None I.L.F. Engineers Italia s.r.l. 10/06/2004 6+6 09/06/2010 09/06/2016 None Inter Data s.r.l. 08/01/2014 6+6 07/01/2020 07/01/2026 None From 1st to 15th September 2018 LTX Credence Italia s.r.l. 01/09/2009 6+6 31/08/2015 31/08/2021 12 months’ notice 01/09/2018 Maxim Integrated Products UK LTD 01/04/2006 6+6 31/03/2012 31/03/2018 None REAG 31/07/2020 01/08/2011 6+6 31/07/2017 31/07/2023 Real Estate Advisory Group S.p.A. 9 months’ notice Terminal Rinfuse Italia S.p.A. 01/07/2009 6+6 30/06/2015 30/06/2021

30/06/2019 TFE Thin Film Equipment s.r.l. 01/07/2010 6+6 30/06/2016 30/06/2022 6 months’ notice

Passing Rent, Step Rents and Headline Rent

Passing Tenant Step 1 Date Step 1 HR Date HR Rent American Appraisal Italia s.r.l. 77,949 77,949 Atmel Italia s.r.l. 34,032 34,032 Bivio Networks Europe Limited 35,073 35,073 C. Besati & C. s.r.l. 27,859 27,859 Card Protection Plan LTD 72,970 72,970 Constructor Dexion Italia s.r.l. 36,820 36,820 Hamilton Italia s.r.l. 17,432 17,432 I.L.F. Engineers Italia s.r.l. 19,177 19,177 Inter Data s.r.l. 7,500 21,000 08/01/2015 21,000 08/01/2015 LTX Credence Italia s.r.l. 63,834 63,834 Maxim Integrated Products UK LTD 51,273 51,273 REAG Real Estate Advisory Group S.p.A. 338,015 338,015 Terminal Rinfuse Italia S.p.A. 40,418 40,418 TFE Thin Film Equipment s.r.l. 16,854 16,854

Indexation

Tenant ISTAT Indexation %

American Appraisal Italia s.r.l. 75% Atmel Italia s.r.l. 75% Bivio Networks Europe Limited 75% C. Besati & C. s.r.l. 75% Card Protection Plan LTD 75% Constructor Dexion Italia s.r.l. 75% Hamilton Italia s.r.l. 75% I.L.F. Engineers Italia s.r.l. 75% Inter Data s.r.l. 75% LTX Credence Italia s.r.l. 75% Maxim Integrated Products UK LTD 75% REAG 75% Real Estate Advisory Group S.p.A. Terminal Rinfuse Italia S.p.A. 75% TFE Thin Film Equipment s.r.l. 75%

8.13 Letting and Investment Transactions Letting Transactions The table below reports some letting transactions undergone during the last 12 months in the Hinterland Office Sub-market:

Date of Location Sub-market sq m €/sq m Quality transaction Milano 3 Basiglio Hinterland 2,000 €100 Grade B Q2/2013 Via Gozzano – Cinisello Balsamo Hinterland 750 €120 Grade B Q2/2013 Via Volta – Cologno Monzese Hinterland 10,900 €170 Grade A Q4/2014 Via Assunta – Nova Milanese Hinterland 2,430 €126 Grade B Q1/2014

The letting transactions report the headline rents; we are not aware of the level of incentives granted to the Tenants.

Investment Transactions Please find below some recently investment transaction closed in the Milan market during the last 12 months:

Investment Date of Property/Location Sale price GLA sq m GIY Type transaction Palazzo Fermi - Basiglio €21.7 million 16.000 9.20% Investment Q2/2013 Via Fara €28 million 8,822 Confidential Investment Q1/2013 Pergolesi 25 €28 million 5,630 6.19% Investment Q4/2013 HQ Nestlè €69 million 22,000 Confidential Investment Q1/2014

8.14 Market Rent

The Market Rent takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be €110/sq m for the office spaces and €1,000 p.a. for each surface parking space.

The estimated Market Rent has been weighted according to use as follows: . Offices: 100% . Storage: 33%

. Horizontal Circulation: 0% . Vertical Circulation: 0% . The car parking spaces have been valued on a number of parking space bases The total Market Rent is of €1,435,808. The resulting total Market Rent of €1,435,808 p.a. is below (-13%) the Gross Expected Rent of €1,647,857 (that includes: Headline Rent and the MR on the vacancies).

Marketing Assumptions Our Market Rent estimate considers the following marketing assumptions:

. Letting Void (current vacancy): 36 months to full occupancy . Letting Void (at renewal): 15 months . Rent free period: 12 months

. TI’s: €110/sq m equal to 12 months’ of rent

Comments The adopted Market Rent for the office space of €110/sq m takes into account the reported market evidence of office buildings situated within similar out-of-town districts. The Market Rent is lower than the most recent letting within the property as it considers, the current vacancy level within the subject asset and Colleoni District and the small size of the office unit recently let (approximately 150 sq m).

8.15 Future Income Performance The property is currently affected by a high vacancy rate. The valuation model foresees a total letting period of 36 months based on the estimated Market Rent and Marketing Assumptions (refer to Section no. 10.2). The property represents a suitable opportunity for tenants looking for back-up offices or decentralised offices with a direct access to the motorway network. The current rental level in the Business Park is under pressure due to the increasing level of vacancy (over the last 24 months) therefore a future increase of the rental value is not foreseeable in the medium term.

8.16 Valuation Data The DCF analysis is based on the following parameters:

Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date Gross Rent as at the Valuation Date: €839,206 Market Rent: €1,435,808 Letting Void (renewal) 12 months Rent Free period (current & future 12 months vacancy): Tenant Improvements (Capital €110 (equal to 12 months’ rent on the office space) contribution future leases ): Non recoverable costs: . Property tax (IMU): €142,403 p.a. . Building Insurance: €9,477 p.a. . Building Management: 1% on the gross rent . Capital Reserves 4% starting from 01/07/2015 . CAPEX Urgent: €159,600 . CAPEX 6-12 months: €56,800 . Service Charges: €30/sq m (on office GLA and applicable only for vacant spaces . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent Gross Initial Yield: 8.27% Net Initial Yield: 4.30% Gross Exit Yield: 9.25% Net Exit Yield: 7.75% Equivalent Yield: 7.85% IRR (unleveraged): 10.55%

Comments The adopted gross initial yield is influenced by the current level of vacancy and by the over-rent situation. The net exit yield falls within our estimate for peripheral office locations of between 7.30% and 7.80%, being close to the upper end of the range to reflect the limited appeal to investors for limited quality products in out-of-town locations. The gross exit yield is line with reported market evidence for a Grade B office buildings in a similar location (Palazzo Fermi – Basiglio). The resulting IRR of the valuation reflects the risk profile associated with an office building partially vacant situated within an out-of-town Office District not served by the underground/railway network and the current vacancy level within the Office District itself.

8.17 SWOT ANALYSIS

Strengths . The property is located in Milan Hinterland, within the well-known Colleoni Business Park . The Business Park is easily accessible via the extra-urban road network

. The property is an office building already configured for multi-tenant occupation

Opportunities . Active management focused on the property market repositioning securing a stabilised long-term secured income flow

Weakness . The property is a Grade B office building with limited potential for rental value upside (considering the refurbishment costs versus rental values in the Business Park)

Threats . Increasing level of vacancy within the Business Park representing a direct competition

8.18 Alternative use The property is not suitable for an alternative use in consideration of its typology and location.

8.19 Saleability The property’s current saleability is limited by the high level of vacancy; it would appeal to a limited number of investors with an opportunistic profile. Upon completion of the market repositioning of the asset, it would represent an investment opportunity for institutional investors with a long-term investment horizon.

8.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property:

. The present analysis is based on the gross built area GLA of the asset of 12,163sq m . We have considered an average construction cost per sq m based on market benchmarks of approximately €1,200/sq m on GLA reflecting an overall construction cost of €14,595,600 . We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution (10% on the construction costs) Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs.

On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approximately €17,960,000 (rounded) reflecting a cost of €1,477/sq m of GLA.

Commentary We would like to bring to the Client’s attention that the above reported cost estimates should be considered as indicative, based on average parametric costs applicable for properties with similar characteristics to the property under analysis; if you wish for certainty in regarding the costs estimates, we would advise you to consult a cost consultant. With reference to the construction cost contribution, in absence of the information publicly available we have estimated said cost based on market benchmarks for similar locations. If you wish for certainty we advise to instruct a planning specialist to provide the fees estimate.

8.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is:

€1,436,000 (rounded) (One Million Four Hundred and Thirty Six Thousand Euros)

8.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows: €10,150,000 (Ten Million One Hundred and Fifty Thousand Euros)

The above reported Market Value reflects a Net Value, after the deduction of purchaser’s costs of acquisition of 5.00%. Our assessment of the Gross Value before deduction of purchaser’s costs is as follows: €10,657,600 (Ten Million Six Hundred and Fifty-seven Thousand Six Hundred Euros)

93 Appendix 1

Location

Macro Location

Via Paracelso 22-24-26, Agrate Brianza

Micro Location

Via Paracelso 22-24-26, Agrate Brianza

Appendix 2

Photos

Via Paracelso 26, Agrate Brianza

External Pictures

Via Paracelso 26, Agrate Brianza Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Agrate Brianza,22-24-26,Via Paracelso,Agrate Brianza File/Ref No 4

Gross Valuation €10,878,091 Capital Costs -€216,600 Net Value Before Fees €10,661,491

Less Stamp Duty @4.00% of Net Value -€406,152 Agents Fee @0.75% of Net Value -€76,154 Legal Fee @0.25% of Net Value -€25,385

Net Valuation €10,153,801 Say €10,150,000

Equivalent Yield 7.5657% True Equivalent Yield 7.8481% Initial Yield (Deemed) 4.2853% Initial Yield (Contracted) 4.2853% Reversion Yield 11.3023%

Total Contracted Rent €839,206 Total Current Rent €839,206 Total Rental Value €1,435,808 No. Tenants 22 Capital value per m² €740.66

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €839,206 €456,880 4.2853 % 4.4026 % 08-Jan-2015 €852,706 €470,177 4.4101 % 4.5343 % 05-Jun-2015 €852,706 €367,998 3.4517 % 3.5274 % 30-Jun-2015 €812,288 €320,286 3.0041 % 3.0614 % 01-Jul-2015 €812,288 €262,853 2.4654 % 2.5039 % 31-Aug-2015 €748,454 €199,977 1.8757 % 1.8979 % 05-Dec-2015 €748,454 €16,878 0.1583 % 0.1585 % 31-Jan-2016 €685,522 -€52,087 -0.4886 % -0.4900 % 04-Mar-2016 €668,090 -€72,644 -0.6814 % -0.6843 % 05-Jun-2016 €668,090 -€114,418 -1.0732 % -1.0804 % 10-Jun-2016 €648,913 -€133,308 -1.2504 % -1.2602 % 30-Jun-2016 €554,110 -€226,689 -2.1262 % -2.1548 % 05-Sep-2016 €677,774 -€104,880 -0.9837 % -0.9898 % 30-Sep-2016 €677,774 -€99,920 -0.9372 % -0.9427 % 01-Dec-2016 €726,887 -€51,543 -0.4835 % -0.4849 % 05-Dec-2016 €726,887 €91,549 0.8587 % 0.8633 %

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

31-Dec-2016 €653,917 €19,673 0.1845 % 0.1847 % 16-Jan-2017 €619,885 -€13,848 -0.1299 % -0.1300 % 01-Mar-2017 €583,065 -€57,762 -0.5418 % -0.5436 % 05-Mar-2017 €804,767 €160,615 1.5065 % 1.5208 % 30-Apr-2017 €804,767 €167,592 1.5719 % 1.5875 % 01-May-2017 €826,307 €186,265 1.7471 % 1.7663 % 04-Jun-2017 €826,307 €188,462 1.7677 % 1.7874 % 05-Jun-2017 €826,307 €332,415 3.1179 % 3.1796 % 31-Jul-2017 €488,292 -€529 -0.0050 % -0.0050 % 05-Sep-2017 €703,616 €211,565 1.9844 % 2.0092 % 10-Sep-2017 €718,476 €226,202 2.1217 % 2.1501 % 30-Sep-2017 €789,677 €299,276 2.8071 % 2.8570 % 05-Dec-2017 €789,677 €433,334 4.0645 % 4.1699 % 30-Dec-2017 €819,087 €462,303 4.3362 % 4.4563 % 05-Mar-2018 €940,958 €582,346 5.4621 % 5.6538 % 31-Mar-2018 €996,893 €637,442 5.9789 % 6.2092 % 01-Apr-2018 €945,620 €586,938 5.5052 % 5.7000 % 16-Apr-2018 €973,290 €614,193 5.7609 % 5.9744 % 01-May-2018 €973,290 €616,737 5.7847 % 6.0001 % 01-Jun-2018 €973,290 €622,187 5.8358 % 6.0551 % 04-Jun-2018 €973,290 €623,376 5.8470 % 6.0671 % 05-Jun-2018 €973,290 €747,223 7.0086 % 7.3267 % 01-Aug-2018 €998,730 €772,281 7.2436 % 7.5839 % 04-Sep-2018 €1,010,620 €783,993 7.3535 % 7.7043 % 05-Sep-2018 €1,123,208 €894,892 8.3937 % 8.8532 % 31-Oct-2018 €1,375,146 €1,143,051 10.7213 % 11.4801 % 01-Jun-2019 €1,375,146 €1,145,246 10.7419 % 11.5037 % 01-Jul-2019 €1,414,786 €1,184,292 11.1081 % 11.9243 % 01-Sep-2019 €1,436,741 €1,205,917 11.3110 % 12.1581 % 04-Jun-2021 €1,374,965 €1,128,160 10.5816 % 11.3203 % 04-Jun-2022 €1,374,965 €1,077,114 10.1028 % 10.7745 % 04-Jun-2023 €1,374,965 €1,145,068 10.7402 % 11.5018 % 04-Sep-2023 €1,436,741 €1,205,917 11.3110 % 12.1581 % 08-Jan-2026 €1,415,741 €1,185,232 11.1169 % 11.9345 % 05-Jun-2026 €1,353,853 €1,124,273 10.5452 % 11.2786 % 05-Dec-2026 €1,132,151 €905,896 8.4969 % 8.9680 % 08-Apr-2027 €1,152,218 €925,662 8.6823 % 9.1747 % 05-Jun-2027 €936,894 €696,624 6.5340 % 6.8098 % 05-Dec-2027 €815,023 €515,807 4.8380 % 4.9879 % 05-Jun-2028 €702,435 €294,723 2.7644 % 2.8128 % 05-Dec-2028 €702,435 €78,348 0.7349 % 0.7383 % 05-Jun-2029 €702,435 -€143,969 -1.3504 % -1.3618 % 05-Sep-2029 €764,323 -€83,009 -0.7786 % -0.7824 %

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

05-Dec-2029 €764,323 €60,083 0.5636 % 0.5655 % 05-Mar-2030 €986,025 €278,459 2.6118 % 2.6550 % 05-Jun-2030 €986,025 €627,904 5.8895 % 6.1128 % 05-Sep-2030 €1,313,937 €950,897 8.9190 % 9.4392 % 05-Dec-2030 €1,313,937 €1,084,955 10.1764 % 10.8581 % 05-Mar-2031 €1,435,808 €1,204,998 11.3023 % 12.1482 %

Yields based on €10,661,491

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 3 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold American Appraisal Italia S.r.l. NA 30-Jun-2022 €77,949 Unrounded €57,824 All Units Initial Yield 4.200 €1,665,024 Atmel Italia S.r.l. NA 16-Jan-2023 €34,032 Unrounded €27,670 All Units Initial Yield 4.200 €738,882 Bivio Networks Europe Limited NA 31-Jan-2022 €35,073 Unrounded €25,440 All Units Initial Yield 4.200 €761,191 C. Besati & C. S.r.l. NA 31-Mar-2022 €27,859 Unrounded €21,540 All Units Initial Yield 4.200 €596,907 Card Protection Plan LTD NA 31-Dec-2022 €72,970 Unrounded €55,935 All Units Initial Yield 4.200 €1,561,482 Constructor Dexion Italia S.r.l. NA 28-Feb-2017 €36,820 Unrounded €21,955 All Units Initial Yield 4.200 €796,285 Hamilton Italia S.r.l. NA 04-Mar-2022 €17,432 Unrounded €11,890 All Units Initial Yield 4.200 €379,046 I.L.F. Engineers Italia S.r.l. NA 09-Jun-2016 €19,177 Unrounded €14,860 All Units Initial Yield 4.200 €411,850 Inter Data S.r.l. NA 07-Jan-2026 €7,500 Unrounded €20,067 All Units Initial Yield 4.200 €122,379 LTX Credence Italia S.r.l. NA 31-Aug-2021 €63,834 Unrounded €49,113 All Units Initial Yield 4.200 €1,385,344 Maxim Integrated Products UK LTD NA 31-Mar-2018 €51,273 Unrounded €39,640 All Units Initial Yield 4.200 €1,105,025 REAG Real Estate Advisory Group S.p. NA 31-Jul-2023 €338,015 Unrounded €251,938 All Units Initial Yield 4.200 €7,226,231 Terminal Rinfuse Italia S.p.A. NA 30-Jun-2021 €40,418 Unrounded €29,410 All Units Initial Yield 4.200 €878,421 Vacant Ground Floor NA 04-Jun-2029 €0 Unrounded €112,588 All Units Initial Yield 4.200 -€1,008,866 Vacant Floor 1 NA 04-Dec-2028 €0 Unrounded €121,871 All Units Initial Yield 4.200 -€1,084,933 Vacant Floor 2 NA 04-Jun-2028 €0 Unrounded €91,548 All Units Initial Yield 4.200 -€820,436 Vacant Floor 3 NA 04-Jun-2028 €0 Unrounded €123,776 All Units Initial Yield 4.200 -€1,104,827 Vacant Floor 4 NA 04-Dec-2027 €0 Unrounded €148,290 All Units Initial Yield 4.200 -€1,329,544 Vacant Floor 5 NA 04-Dec-2027 €0 Unrounded €73,412 All Units Initial Yield 4.200 -€651,891 Vacant Floor 6 NA 04-Jun-2027 €0 Unrounded €61,888 All Units Initial Yield 4.200 -€552,418 Vacant Floor 7 NA 04-Jun-2027 €0 Unrounded €61,776 All Units Initial Yield 4.200 -€551,245 TFE Thin Film equipment S.r.l. NA 30-Jun-2022 €16,854 Unrounded €13,377 All Units Initial Yield 4.200 €354,183 Total €839,206 €1,435,808 €10,878,091

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 4 REPORT Discounted Cashflow jones lang lasalle

Address Agrate Brianza,22-24-26,Via Paracelso,Agrate Brianza,Agrate Brianza DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €10,657,500 Geared IRR 10.5491% Start: Acquisition Fee @ 5.0000% -€507,500 Ungeared IRR 10.5491% Start: Net Value €10,150,000

Exit Results

Exit: Gross Value €17,611,995 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €17,611,995 Exit: Vendors Fees -€176,120 Exit: Rent adjustments €0 Exit: Adjusted Net Value €17,435,875

Exit: Rent payable (gross) €1,638,127 Exit: Market rent (gross) €1,700,139 Exit: Rent receivable (net) €1,364,930 Exit: Market rent (net) €1,426,942 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 7.7500% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 7.7500% (Net Rent / Net Value X 100) Exit: Net Revn Yield 8.1021% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 8.1021% (Net ERV / Net Value X 100) 9.6533% (Gross ERV / Gross Value X 100) 9.6533% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 6.5472% Exit: Vendors Fees 1.0000% (-€176,120)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€10,622,955 €210,132 €0 €1,435,808 -€175,587 €0 1.0000 -€10,623,738 2 05-Sep-2014 04-Dec-2014 €34,696 €210,275 €0 €1,435,808 -€175,578 €0 0.9509 €32,992 3 05-Dec-2014 04-Mar-2015 €89,240 €213,603 €0 €1,435,808 -€124,364 €0 0.9369 €83,606 4 05-Mar-2015 04-Jun-2015 €89,323 €213,978 €0 €1,438,591 -€124,655 €0 0.9131 €81,564 5 05-Jun-2015 04-Sep-2015 -€42,478 €199,162 €0 €1,442,530 -€241,640 €0 0.9334 -€39,650 6 05-Sep-2015 04-Dec-2015 €84,448 €188,748 €0 €1,446,480 -€104,299 €0 0.8702 €73,487

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Agrate Brianza,22-24-26,Via Paracelso,Agrate Brianza,Agrate Brianza DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 -€162,119 €177,065 €0 €1,450,441 -€339,184 €0 0.8676 -€140,660 8 05-Mar-2016 04-Jun-2016 €75,774 €167,621 €0 €1,455,944 -€91,846 €0 0.8276 €62,713 9 05-Jun-2016 04-Sep-2016 -€178,487 €140,835 €0 €1,462,090 -€319,322 €0 0.8227 -€146,837 10 05-Sep-2016 04-Dec-2016 €107,190 €185,664 €0 €1,468,269 -€78,474 €0 0.7901 €84,692 11 05-Dec-2016 04-Mar-2017 -€51,322 €156,276 €0 €1,474,469 -€207,599 €0 0.7935 -€40,726 12 05-Mar-2017 04-Jun-2017 €155,823 €226,983 €0 €1,481,473 -€71,160 €0 0.7530 €117,331 13 05-Jun-2017 04-Sep-2017 -€34,808 €153,778 €0 €1,488,822 -€188,586 €0 0.7611 -€26,491 14 05-Sep-2017 04-Dec-2017 €161,499 €220,961 €0 €1,496,212 -€59,462 €0 0.7165 €115,715 15 05-Dec-2017 04-Mar-2018 €152,286 €212,367 €0 €1,503,638 -€60,081 €0 0.6978 €106,267 16 05-Mar-2018 04-Jun-2018 €200,324 €261,565 €0 €1,510,837 -€61,241 €0 0.6810 €136,424 17 05-Jun-2018 04-Sep-2018 €200,344 €259,666 €0 €1,517,964 -€59,322 €0 0.6639 €133,007 18 05-Sep-2018 04-Dec-2018 €287,055 €347,245 €0 €1,525,123 -€60,190 €0 0.6480 €186,013 19 05-Dec-2018 04-Mar-2019 €300,246 €361,702 €0 €1,532,316 -€61,456 €0 0.6316 €189,635 20 05-Mar-2019 04-Jun-2019 €300,656 €362,344 €0 €1,538,466 -€61,689 €0 0.6159 €185,185 21 05-Jun-2019 04-Sep-2019 €315,437 €377,361 €0 €1,544,204 -€61,924 €0 0.6009 €189,544 22 05-Sep-2019 04-Dec-2019 €319,947 €382,359 €0 €1,549,963 -€62,412 €0 0.5861 €187,525 23 05-Dec-2019 04-Mar-2020 €320,795 €383,435 €0 €1,555,742 -€62,640 €0 0.5714 €183,297 24 05-Mar-2020 04-Jun-2020 €321,407 €384,321 €0 €1,562,907 -€62,914 €0 0.5572 €179,097 25 05-Jun-2020 04-Sep-2020 €323,314 €386,542 €0 €1,570,665 -€63,229 €0 0.5436 €175,765 26 05-Sep-2020 04-Dec-2020 €323,932 €387,467 €0 €1,578,461 -€63,535 €0 0.5302 €171,743 27 05-Dec-2020 04-Mar-2021 €325,033 €388,876 €0 €1,586,293 -€63,843 €0 0.5169 €168,007 28 05-Mar-2021 04-Jun-2021 €315,866 €384,743 €0 €1,594,166 -€68,877 €0 0.5042 €159,253 29 05-Jun-2021 04-Sep-2021 €306,435 €375,405 €0 €1,602,075 -€68,970 €0 0.4919 €150,740 30 05-Sep-2021 04-Dec-2021 €307,096 €376,404 €0 €1,610,029 -€69,308 €0 0.4797 €147,326 31 05-Dec-2021 04-Mar-2022 €308,206 €377,853 €0 €1,618,017 -€69,647 €0 0.4677 €144,148 32 05-Mar-2022 04-Jun-2022 €235,864 €378,662 €0 €1,626,050 -€142,797 €0 0.4584 €108,113 33 05-Jun-2022 04-Sep-2022 €315,580 €381,045 €0 €1,634,120 -€65,465 €0 0.4449 €140,399 34 05-Sep-2022 04-Dec-2022 €316,273 €382,059 €0 €1,642,230 -€65,785 €0 0.4339 €137,221 35 05-Dec-2022 04-Mar-2023 €317,423 €383,530 €0 €1,650,382 -€66,107 €0 0.4230 €134,266 36 05-Mar-2023 04-Jun-2023 €317,937 €384,351 €0 €1,658,573 -€66,414 €0 0.4125 €131,140 37 05-Jun-2023 04-Sep-2023 €325,183 €391,929 €0 €1,666,805 -€66,746 €0 0.4023 €130,833 38 05-Sep-2023 04-Dec-2023 €338,039 €405,375 €0 €1,675,075 -€67,336 €0 0.3925 €132,687 39 05-Dec-2023 04-Mar-2024 €339,205 €406,869 €0 €1,683,388 -€67,664 €0 0.3827 €129,803 40 05-Mar-2024 04-Jun-2024 €339,882 €407,859 €0 €1,691,743 -€67,977 €0 0.3732 €126,836 41 05-Jun-2024 Final period €17,435,875 €1,700,139 0.3672 €6,401,762 PV factor is averaged over multi-discount dates. NPV Balance €34

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Agrate Brianza,22-24-26,Via Paracelso,Agrate Brianza,Agrate Brianza DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity American Appraisal Italia S.r.l. €65,072 €53,210 €68,469 €56,607 €686,585 100.00% Atmel Italia S.r.l. €31,465 €26,722 €32,764 €28,021 €344,805 100.00% Bivio Networks Europe Limited €29,092 €24,385 €30,123 €25,416 €314,651 100.00% C. Besati & C. S.r.l. €24,409 €20,202 €25,505 €21,298 €260,674 100.00% Card Protection Plan LTD €63,560 €52,471 €66,233 €55,144 €677,049 100.00% Constructor Dexion Italia S.r.l. €25,269 €20,491 €25,997 €21,219 €264,402 100.00% Hamilton Italia S.r.l. €13,625 €11,369 €14,079 €11,823 €146,700 100.00% I.L.F. Engineers Italia S.r.l. €16,705 €13,857 €17,595 €14,747 €178,804 100.00% Inter Data S.r.l. €23,699 €19,720 €23,761 €19,782 €254,445 100.00% LTX Credence Italia S.r.l. €55,245 €46,509 €58,155 €49,419 €600,113 100.00% Maxim Integrated Products UK LTD €45,477 €38,049 €46,937 €39,509 €490,952 100.00% REAG Real Estate Advisory Group S.p.A. €285,291 €234,055 €298,321 €247,085 €3,020,067 100.00% Terminal Rinfuse Italia S.p.A. €33,254 €27,891 €34,824 €29,461 €359,886 100.00% Vacant Ground Floor €129,788 €108,914 €133,316 €112,442 €1,405,340 100.00% Vacant Floor 1 €139,117 €116,638 €144,308 €121,829 €1,505,009 100.00% Vacant Floor 2 €105,036 €88,069 €108,402 €91,435 €1,136,372 100.00% Vacant Floor 3 €142,011 €119,131 €146,563 €123,683 €1,537,168 100.00% Vacant Floor 4 €168,456 €140,990 €175,591 €148,125 €1,819,221 100.00% Vacant Floor 5 €83,396 €69,884 €86,927 €73,415 €901,724 100.00% Vacant Floor 6 €70,674 €59,239 €73,281 €61,846 €764,370 100.00% Vacant Floor 7 €72,432 €60,991 €73,149 €61,708 €786,986 100.00% TFE Thin Film equipment S.r.l. €15,054 €12,142 €15,839 €12,927 €156,672 100.00%

Sum of tenant gross values €1,638,127 €1,364,930 €1,700,139 €1,426,942 €17,611,995 100.00%

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 3 Headings Start date Months 1 - 12 Months 13 - 24 Months 25 - 36 Months 37 - 48 Months 49 - 60 Months 61 - 72 Months 73 - 84 Months 85 - 96 Months 97 - 108 Months 109 - 120 Month 121 Jun-14 Jun '14-May '15 Jun '15-May '16 Jun '16-May '17 Jun '17-May '18 Jun '18-May '19 Jun '19-May '20 Jun '20-May '21 Jun '21-May '22 Jun '22-May '23 Jun '23-May '24 Jun '24 Agrate Brianza,22-24-26,Via Paracelso,Agrate Brianza,Agrate Brianza American Appraisal Italia S.r.l. 0 78,182 78,523 0 44,378 60,646 61,421 62,228 63,163 64,112 65,075 686,585 Atmel Italia S.r.l. 0 34,127 34,372 18,704 5,945 28,856 29,462 29,847 30,295 30,750 31,213 344,805 Bivio Networks Europe Limited 0 35,163 20,554 0 0 24,236 27,129 27,479 27,891 28,309 28,734 314,651 C. Besati & C. S.r.l. 0 27,905 16,332 3,654 22,062 22,550 22,843 23,140 23,487 23,840 24,199 260,674 Card Protection Plan LTD 0 73,189 73,711 36,806 14,538 58,364 59,544 60,328 61,235 62,157 63,092 677,049 Constructor Dexion Italia S.r.l. 0 36,899 37,167 24,821 0 0 19,346 23,838 24,196 24,558 24,927 264,402 Hamilton Italia S.r.l. 0 17,468 11,808 0 0 10,176 12,684 12,849 13,043 13,239 13,438 146,700 I.L.F. Engineers Italia S.r.l. 0 19,236 18,246 0 12,240 15,580 15,782 15,988 16,228 16,472 16,719 178,804 Inter Data S.r.l. 0 13,988 21,084 21,305 21,601 21,916 22,197 22,488 22,825 23,168 23,517 254,445 LTX Credence Italia S.r.l. 0 64,046 10,623 28,903 50,530 51,356 52,005 52,708 53,489 54,293 55,109 600,113 Maxim Integrated Products UK LTD 0 51,357 51,730 52,266 39,590 0 42,038 43,009 43,654 44,309 44,973 490,952 REAG Real Estate Advisory Group S.p.A. 0 339,097 341,468 345,079 28,157 175,170 268,606 272,514 276,574 280,729 284,947 3,020,067 Terminal Rinfuse Italia S.p.A. 0 40,428 0 0 15,218 30,768 31,266 31,690 32,159 32,642 33,132 359,886 Vacant Ground Floor 0000098,224120,829 122,403 124,242 126,109 128,004 1,405,340 Vacant Floor 1 000041,678129,024 130,462 132,205 134,176 136,192 138,239 1,505,009 Vacant Floor 2 000078,36596,53397,78699,059100,548 102,058 103,592 1,136,372 Vacant Floor 3 0000105,952 130,515 132,209 133,932 135,944 137,986 140,059 1,537,168 Vacant Floor 4 0 0 0 49,727 153,992 155,996 157,976 160,087 162,474 164,915 167,392 1,819,221 Vacant Floor 5 0 0 0 24,618 76,235 77,228 78,208 79,254 80,435 81,643 82,870 901,724 Vacant Floor 6 0 0 0 51,984 64,020 64,953 65,796 66,653 67,655 68,671 69,703 764,370 Vacant Floor 7 0 0 0 51,891 63,905 64,837 65,678 61,533 0 0 58,045 786,986 TFE Thin Film equipment S.r.l. 0 16,904 16,977 0 10,266 14,029 14,209 14,396 14,612 14,832 15,055 156,672 Overall data Total Rental income 0 847,988 732,595 709,759 848,671 1,330,958 1,527,476 1,547,628 1,508,324 1,530,985 1,612,032 0 Total LH Ground Rent payments 000000000 0 00 RTL 0 -4,422 -3,802 -3,664 -4,213 -6,353 -7,560 -7,749 -7,527 -7,640 -8,019 0 Capex Urgent 0 -159,600 0000000 0 00 Capex 6-12 months 0 -56,800 0000000 0 00 Letting Fees 00-34,821 -40,086 -12,907 -2,321 000-7,031 00 Service Charges 0 -218,603 -168,142 -61,845 -8,022 000-19,093 000 IMU 0 -142,830 -144,338 -146,601 -149,421 -152,269 -154,734 -157,642 -160,795 -164,010 -167,291 0 Insurance 0 -9,485 -9,585 -9,736 -9,923 -10,112 -10,276 -10,469 -10,678 -10,892 -11,110 0 Capital reserves 00-58,006 -58,938 -60,080 -61,218 -62,201 -63,387 -64,654 -65,947 -67,266 0 Building management 0 -8,443 -7,605 -7,328 -8,426 -12,705 -15,120 -15,499 -15,055 -15,281 -16,038 0 Tenant Improvements 0000-117,281 0000 0 00 Tenant Improvement 00-349,804 -346,000 00000-70,627 00 Total Operating revenues 000000000 0 00 Total Capital receipts 000000000 0 017,611,995 Total Operating costs 0 -383,584 -776,103 -674,197 -370,273 -244,978 -249,890 -254,746 -277,802 -341,429 -269,723 0 Total Capital expenditure -10,657,500 -216,600 0000000 0 0-176,120 SUMMARY Interest/service 000000000 0 00 Total Debt/Equity 000000000 0 00 Net Cash Flow -10,657,500 247,804 -43,508 35,561 478,397 1,085,980 1,277,585 1,292,883 1,230,522 1,189,556 1,342,309 17,435,875 Net Cash Balance -10,657,500 -10,409,696 -10,453,203 -10,417,642 -9,939,245 -8,853,264 -7,575,679 -6,282,796 -5,052,275 -3,862,719 -2,520,410 14,915,465

Property Report

Ivrea, Via Jervis 9

9 Ivrea, Via Jervis 9

9.1 Location The property under analysis is a portion of a complex situated in Via Jervis 9, within the Municipality of Ivrea, the capital city of Piedmont, Northern Italy. The Municipality of Ivrea is located near the borders of Piedmont with the Lombardy region; the nearest cities are: Turin (57km to the south-west), Novara (72km to the north-east), Alessandria (98km to the south-east) and Milan (115km to the east). As at December 2013 the Municipality of Ivrea had 23,942 inhabitants. The property is located in the southern peripheral area of the municipality. In the past this area has been the district hosting the HQ of the Olivetti, a leader in the manufacture and sale of typewriters. Nowadays, Olivetti has maintained only limited number of properties and the area has seen the development of a technological district of small to medium enterprises, such as: Vodafone, Comdata and Olivetti. The immediate surrounding area is characterised mainly by the presence of residential buildings of poor quality in terms of finishes and by offices as aformentioned.

9.2 Accessibility Road The property is located near the SP 68, a provincial road that links to the motorway A5 (Turin-Aosta). The motorway A5 is reachable through the exit “Ivrea” that is approximately 2.5 km from the property. From this exit is also reachable the A4/A5 motorway (Ivrea-Santhià) that joins the A5 with theA4 motorway towards Milan. The property is located near the SS26, an important national road that starts from Chivasso and finishes in Val d’Aosta, passing through many municipalities, one of which is Ivrea.

Rail Ivrea is served by a railway station. The station is positioned close to the property (approximately 400m) and serves the line Chivasso-Aosta. It connects to Turin, Chivasso, Aosta and Novara.

Public Transport The property is well served by public transport. Within the immediate surrounding (approximately 100m) there is a bus stop that serves almost all bus lines of the Municipality, such as: lines no. 2, 3, 5 and 6.

Air The closest airport is Torino-Caselle Airport situated approximately 52km away. Malpensa International Airport is approximately 115km away.

9.3 Site and Property Description Site Description and Accessibility The property under analysis is a building portion forming part of a stand-alone building developed on a square shaped land plot. The site is bounded by Via Jervis to the north and by Third Parties to the east, south and west. The property presents three entrances: one pedestrian entrance and two vehicular entrances, all on Via Jervis. One vehicular entrance is shared with the nearby assets and serves the area of the property dedicated to the loading and unloading of goods. The second vehicular entrance represents the access to the surface parking situated in the courtyard in front of the hall of the property.

Property Description The property is a portion of a wider mixed used complex that is part of the former industrial and office site of Olivetti named ICO. The complex has been developed over 25 years, starting from 1934, based on the project designed by the architects Figini and Pollini and it is composed of three blocks: ICO Vecchia, ICO Centrale e ICO Nuova. The subject property is part of the ICO Nuova block that includes: Officina H (now converted into a theatre) and occupying a portion of the ground floor, the University of Turin occupying a portion of the ground floor. The remainder of the ICO Nuova Block represents the property under analysis (basement, portion of the ground floor and the floors from the first to the second). The analysed portion is composed of two buildings (named together the property). The main building, (Building A), faces Via Jervis and is developed on one basement level and three floors above ground. The second building (Building B) is positioned to the right of Building A within the internal courtyard and is developed on two floors above ground (G and 1). The two buildings are internally connected on all floors. The property has reinforced concrete frame structure, facades finished with glazed curtain wall and flat roof. Building A is square shaped, the ground floor is L shaped on the ground floor (the remainder portions forming a square does not form part of this valuation). The basement hosts archive and technical rooms, the ground floor data room, while the first and the second floor offices. Building B is rectangular shaped.The ground floor hosts offices and the lobby of the property, while the first floor hosts only offices. The office spaces differ in the two buildings in terms of finishes and overall quality. The offices in Building A present open plan layout and have been refurbished to fulfil the requirements for modern office space including: suspended ceilings, raised floors. The lighting is provided mainly by recessed elements incorporated in the suspended ceiling. The technical specification includes: HVAC system with primary air system and heating and conditioning via four pipes air system with distribution from the suspended ceiling. The offices in Building B are of lower quality in terms of finishes compared to Building A and technical specification and includes: suspended ceiling on the ground floor, and partially on the first floor, the raised floor is present only on the first floor. The offices present traditional office layout with single offices developed around a central corridor. The technical specification includes: primary air system, the heating and conditioning is provided by perimeter fan coil units. Overall the property is equipped also with special plant: Anti-burglar system (TVCC, access with badge, alarms.) and fire prevention system with sensors installed in the suspended ceilings and in the floors. The vertical connection is guaranteed by:

. Three lifts serving from the basement to second floor

. One lift and two staircases serving from the basement to the roof . One staircase serving from the ground to the first floor

9.4 State of Repairs We inspected the property on 4 June 2014. Based on the visual inspection, it is our opinion that overall the building’s state of repairs is good overall. With reference to Building A the offices occupied by Vodafone are in a very good state of repair. The vacant office spaces on the ground floor, not accessible during the visual inspection, are in an average state of repair as verbally informed during the site visit. The office spaces in Building B are in a good state of repair, presenting dated finishes in a good state of repair and fully functional for the foreseen use, presenting only damage typical to age and usage.

Commentary We bring to the Client ‘s attention that the vacant portion on the ground floor has not been accessible during our inspection. It is our understanding that these spaces present the level of finishes and overall quality inferior if compared to Building A. During our inspection the office spaces in the Building B were undergoing some changes involving the layout with creation of new meeting rooms. We are not aware of whether the works involves also upgrading of the finishes or improvement on the technical specification. The works should be completed before the end of June – as communicated during the property visit.

9.5 Accommodation For the purposes of this valuation we have adopted the following Gross Areas (GA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried.

External Horizontal Vertical Total Office Technological Archives Other Floor Parking Connections Connections Gross (sq m) Rooms (sq m) (sq m) (sq m) (sq m) (sq m) (sq m) Area Basement 27 3,349 637 44 125 4,182 Ground Floor 2,357 1,434 49 707 215 165 271 5,198 First Floor 6,157 36 175 6,368 Second Floor 5,542 155 5,697 Third Floor 263 83 23 107 476 Total 14,056 1,724 3,481 1,344 215 268 833 21,921

The property totals a Gross Area of 21,921 sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 20,806 sq m. The GLA adopted includes the areas referred to in the table above as: offices, technological rooms, archives, horizontal connections on the above

ground floors, other areas that should include storages. The GLA does not include the areas identified as common areas: horizontal connections in the basement and roof floor and vertical connections. We bring to the Client’s attention that the category “Other” has been included in the amount of the GLA, because based on the information collected during our inspection and based on the information provided by the Client, said space is storage. The above GLA does not include the areas for the parking facilities (215 sq m) as being valued on number of parking space basis and not on a square meter basis in number of 16.

Commentary The TDD report states a GFA (excluding the roof) of 22,249 sq m and cannot be comparable with the GFA (excluding the roof floor) reported in the IM of 21,445 sq m as this does not include the technical rooms whilst the GFA of the TDD Report includes this surface. The TDD Report does not provide the area split per use, such as: office, storage, vertical circulation, technical rooms, etc. therefore for the purposes of this valuation we have relied on the areas contained within the IM. For completeness of the information we report that the area referred to as office in the TTD seems to include also technological rooms, “other”, and the horizontal and vertical circulation totalling 16,372sq m (-10% if compared to 18,225 sq m extrapolated from The IM and corresponding to offices, technological rooms, “other” and vertical and horizontal circulation).

We highlight that, it is our understanding that the for the purposes of the TDD, has not been performed a check measurement on site nor on property plans therefore the discrepancy could be due to the difference source of information used for the preparation of the IM and of the TDD report.

9.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, exception made for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . At the moment, the fuel externally supplied is gasoline for the electrical generators. The fuel is stored in dedicated underground tanks near to the plant they service (electrical generators).

Soil, Subsoil and Groundwater . The analysis on the samplings was carried out in the E side car park, in front of the ex-Centro Studi with the aim to identify the presence of deleterious materials. The results were compared with the limits set by Law for industrial sites and they do not exceed the Law limits.

. There is no evidence of any leak tightness tests or soil and subsoil investigations regarding the two underground tanks along the north-east sector and the two underground tanks installed after 2005, by Vodafone, along the west side . The presence of filling material must be properly taken into account during any intervention that might involve excavation works and earth movement. The EDDR advises to analyse the landfill quality in case excavation or earth movement occurs.

Asbestos (ACM)

. On site survey detects the following elements as containing ACM: - Pipe insulation in ACM in the basement, in the storage rooms along the west sector. A similar insulation in the no. 9 power substation no longer in use and in the adjacent technical compartment - Flocked plaster in the offices in the south sector, found on the main supporting structural beam and proofed by metal sheet casing confinement - Flocked plaster in ACM, found in the offices in the west and south sector, side facing the outer area of the building - Flocked plaster ceilings encapsulated and with a false ceiling covering found in the offices Area on the north side . There was not found on the site the updated Maintenance and Control Programme (MCP) . It is recommended to update the MCP in compliance with D.M. 06/09/94, including a description of the maintenance status of the ACM and the results of the monitoring of indoor compartments containing ACM

Man Made Vitreous Fibres (MMVF) . The documentation made available for the purposes of the Environmental Assessment shows no sign of sampling on materials potentially containing MMVF since 2005. On site survey detects the following elements as potentially containing MMVF: false ceilings in some compartments in the basement (Vodafone conductor). . It is recommended to proceed with the MMVF sampling.

Electromagnetic Field . It is recommended to proceed with the measurement of the electromagnetic field inside the technical rooms (the data centre and the electric transformer sub-station) in order to assess the levels of non- ionizing electromagnetic radiation. The EDD report quantifies and an amount equal to €54,000 for the costs related to necessary verification e/o administrative costs of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

Commentary We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material with the property, therefore if you wish for certainty regarding this issues we should advise you instruct a qualified surveyor.

9.7 Cadastral Data Based on the information reported in the TDD Report the property under analysis is registered as follows:

Building Registry of the Municipality of Ivrea

Sheet Parcel Sub Category 56 306 30 Urban Area

56 306 31 Urban Area 56 306 31 D/8 Commentary The TDD Report highlights the following: . It has to be verified whether the inclusion in the DOCFA filing system dated 30/6/2011, due to modifications in the internal building layout, is supported by a building procedure formalising the change of use . Part of the urban areas (Sheet .56 part 306 subs 30-31) are identified in the lease Agreement signed by Vodafone as ‘other owner- car parking spaces at the service of the university’. It has to be clarified whether the definition is incorrect, since the updated cadastral survey identifies the areas as belonging to ‘Berenice’ . The ownership of the guard’s station and entrance area needs to be clarified (corresponding to sub. 29), as this is not shown as being part of the demise. For the purposes of this valuation we have assumed that the cadastral identification of the building has been rectified at the local authority prior to the sale of the property – as required by the Law - and therefore no related risks were taken into account in our analysis.

9.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below: . A valid Building Certificate of Use (CDU) has not been made available for the purposes of the TDD analysis . The last CDU made available is dated 06/04/2005 . Based on the valid PRG the property falls within areas zoned as: TSM3 ‘tessuti Olivettiani polifunzionali‘ (multi-functional area of the Olivetti district), in which the allowed uses, besides the traditional office and service activities, include other uses (amongst which public non-retail facilities, cultural facilities, banks, post offices, artisan activities, congress facilities)

. The property is listed within the Catalogue of Architectural Cultural Heritage (Catalogo dei Beni Culturali Architettonici) of the Municipality of Ivrea. Any building intervention is subject to the specific dispositions reported in the technical rules (NTA) of the planning tool in place (PRG) It is our understanding that the property has gradually undergone change of use from the workshop to offices. Regarding this, the TDD highlights the following: . It has to be verified whether the change of use has been duly authorised by the Municipality of Ivrea (ex. Building Permit should be retrieved), that the planning fees have been paid and that the standards are adequate to the current designation of use The present valuation is based on the assumption that the property is used in compliance with the town-planning regulation and that the current use of the property (office use) has been dully authorised and all planning fees and standards duly paid and fulfilled.

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With reference to the building permits, the TDD report states that the administrative documents allowing the construction of the building as well as some documents related to the changing of destination use are missing therefore the conformity of the building cannot be ascertained. For the purposes of this valuation it has been assumed that all relevant building missing permits were regularly requested and granted by the Local Authority and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated to the this aspects.

9.9 Building Certifications CPI – Fire Prevention Certificate Based on the information reported in the TDD report, it is our understanding that there is an existing procedure for the CPI certification – Prot. N. 58225. It is unclear whether the certificate has been granted and therefore refers to a renewal or a new certification as the documentation is incomplete. The TDD report states that: . The documentation made available for the purposes of the TDD includes a document: Request for CPI release dated 30/11/2007 referring to two projects approved by the Local Fire Brigade (Prot. 12962 dated 07/12/2004 and Prot. 5678 dated 09/05/2007), the DIA and the technical/fire prevention report presented to the Local Fire Brigade;

. It is necessary to obtain the copies of the approved projects (above mentioned) and annexed certification in order to ascertain the CPI regularity and the management of the future renewals.

Fitness for Use Certificate Based on the information reported in the TDD report, the building benefits of Fitness for Use Certificate issued in 1962 and in 1965 for the original activity. The authorisation included the property named Nuova ICO, for the floors: basement, ground and first and second – uses: workshop, offices, locker rooms and school.

The TDD highlights that: . The documentation is incomplete as it does not include the certification related to unauthorised works regulation (Concessione in Sanatoria) Prot. 108 dated 12/07/1993, the documentation authoring the change of use undergone in 1987 (Prot. 5825) and in 2000

. From the analysis of the building permits and cadastral documentation, it is evident that the building has undergone change of use from workshop into office (the current use). Therefore it is necessary to obtain the documentation presented to the Local Authority for the new fitness for use certification or the documentation attesting the silent approval procedure.

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9.10 Annual Non-recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €94,087 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance €13,026 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Property 1% on the gross rent. This amount represents the The IM Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves 3.00% The yearly Capital Reserves JLL Estimate has been estimated to reflect the future capital expenditures to be sustained over the holding period starting from 01/07/15. Service Charges €30 To be applied to the vacant JLL Estimate spaces.

The following Capital Expenditures have been gathered from the Technical Due Diligence Report:

Period Building Defects Administrative Costs Source of Data 0 -6 months none none Technical Due Diligence Report 7-12 months €265,000 none Technical Due Diligence Report 13 – 60 months none none Technical Due Diligence Report

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certificates have been excluded as it appears reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

9.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis. Easements The TDD report states that that the documentation provided for the TDD analysis is incomplete and that further verification should be with reference to: . Some of the easements stated in the TDD report might not be valid as the deeds subsequent to the purchase deed between Olivetti Multiservices and the Municipality of Ivrea rep. 54191/11014 , dated 07/04/2000, does not mention the easements and their uses . The portion identified as sub 29 (building entrance area) and the guardian’s room, are not included in the property of the Fund, as mentioned before in the paragraph 6.1. The documentation certifying the easement in favor of the Found is not available. . The cooling units are shared by ICO Centrale e Nuova ICO and it is unclear whether both buildings are owned by the Fund and whether reciprocal easements shall have to be established after the sale of the “Nuova ICO” building (easements regarding the use of the connections, walkways and technological systems as being shared). For the purposes of this valuation we have assumed that all irregularities (if any) will be cleared prior to the sale of the property and that all easements (if necessary) will be duly constituted. Commentary For the purposes of this valuation analysis we have assumed the subject property to be free from any onerous or unusual outgoings, covenants and/or restrictions, general or specific ground lease conditions, or other restrictions or rights of Third Parties.

9.12 Tenancy At the valuation date, the property is let to two tenants: Vodafone Spa and to Manutencoop Facility Management Spa. The current vacancy is represented by: . A portion at the ground floor of 2,121sq m (GLA) hosting offices, archives and data rooms and 16 surface parking spaces.

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The main contractual details were extrapolated from the IM and are summarised below:

Tenants & Areas

Floor Office Other Archives Technological Horizontal Tenant GLA rooms Connections (sq m) (sq m) (sq m) (sq m) Basement 3,062 1,434 Ground 398 707 49 94 Vodafone Spa First 6,157 36 Second 5,542 Third 19 263 Vodafone Spa Basement 287 Manutencoop Spa Basement 637

Lease Dates & Break Options

2nd Lease Notes Lease 1 Lease Term Break Tenant Lease Start Term length Expiry Option Expiry Vodafone Spa 01/07/2004 6+6 30/06/2010 30/06/2016 - - Vodafone Spa 01/08/2005 6+6 31/07/2011 31/07/2017 - - Manutencoop Spa 20/06/2005 6+6 19/06/2011 19/06/2017 - -

Passing Rent, Step Rents and Headline Rent

Passing Date Step Date Step Tenant Step 1 Step 2 HR Date HR Rent 1 2 Vodafone Spa €1,534,556 Vodafone Spa €5,143 Manutencoop Spa €11,277

Rent revision & Indexation

Tenant ISTAT Indexation % Vodafone Spa 75% Vodafone Spa 75% Manutencoop Spa 75%

9.13 Local Market

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Ivrea is a very small sized regional office market, located in the Province of Turin. The city’s economy is centred on technological industries. As in other regional markets the local market is dominated by local players, but also by international companies such as for example: Vodafone, Olivetti and Comdata.

Supply The supply is mainly represented by small sized office building or office portions. However, in the past years a strong development has converted the industrial Olivetti’s buildings in office buildings (ex. ICO complex) bringing many square metres on the market. Being a very local and opaque market there is no available information on the existing stock and on their quality.

Completion and plans The information publicly available as today does not highlight any major development/redevelopments in the urban area of Ivrea. The development sector is not very dynamic for office premises.

Rents The often blurred boundaries between the residential and office letting offer, alongside a high incidence of owner- occupation, are likely to result in a volatile office market in which asking and actual rents are highly variable. Rental values varies within a wide range depending on the unit size (on average small 100sq m - 250sq m) and on their location. Professionals and private practices, the most active players of the local market are focused on the city centre locations where prime rent can reach up to €100/sq m for small portions of good quality. The local market practice for TI’s is uncertain.

Letting Transactions We report below a selection of the results of the market enquiries carried out in terms of asking rents in the area of reference for pure offices. We deem it appropriate to bring to the Client’s attention that there is no information available for comparable leasing transactions concluded in the area of interest.

Area Asking Rent Adress Sub-Area Quality (sq m) (€/sq m) - Centre 120 71 Good Via Di Vittorio Semicentre 180 48 Average

Via Campo sportivo Semicentre 110 70 Very good

We deem appropriate to point out that the rental values above reported refers to asking rents and not to transactions closed; these values do not reflect the potential discount deriving from the negotiation process.

9.14 Market Rent The Market Rent by us estimated takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be of €90/sq m and €500 p.a. for each surface parking space.

The estimated Market Rent has been weighted according to use as follows: . Offices: 100% . Technological Rooms: 33%

. Archives: 33%

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. Other: 33% . Horizontal Circulation (from Ground to Second Floor): 100% . Horizontal Circulation (Basement and Third Floor): 0%

. Vertical Circulation: 0% . The car parking spaces have been valued on a number of parking space bases. The total Market Rent is of €1,485,636. The property is over-rented by approximately 20% (PR vs MR occupied units). The over-rent decreases starting from 01/07/2016 when the full rent is achieved to 17% (PR+MR vacant vs. MR).

Marketing Assumptions Our Market Rent estimate considers the following marketing assumptions:

. Letting Void (current vacancy): 36 months to full occupancy . Letting Void (at renewal): 18 months . Rent free period: 12 months

. TI’s: €45/sq m equal to six months of rent

Comments The adopted Market Rent for the office space of €90/sq m is higher than the registered rental values for office spaces, both with reference to our analysis and to the available public information. In our valuation we have given weight to the higher quality of the subject property in comparison with the standard quality of the local stock.

9.15 Future Income Performance The property provides an opportunity for reversion in the short term based on the lease up of the currently vacant space and a relatively secured income flow generated by Vodafone. Rental Values in Ivrea Market are expected to remain stable therefore it is not foreseeable a potential increase of the income in the short-medium term. The calculation model considers to lease up all office spaces within six months from the valuation date, having taken into account the ongoing negotiation, and of the vacant car parking spaces in 36 months at the renegotiation date of Vodafone lease contract. The renegotiation at market rental level of Vodafone contract has been considered reasonable having taken into account the improvement costs sustained by the Tenant itself (€17m).

9.16 Valuation Data The DCF analysis is based on the following parameters: Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date

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Gross Rent as at the Valuation Date: €1,550,976 Market Rent: €1,485,627 Letting Void (renewal) 18 months Rent Free period (current & future 12 months vacancy): Tenant Improvements (Capital €45/sq m (equal to six months’ rent on the office space) contribution future leases ): Non recoverable costs: Annual non-recoverable costs include: . Property tax (IMU): €94,087 p.a. . Building Insurance: €13,026 p.a. . Building Management: 1% on the gross rent . Capital Reserves: 3% starting from 01/07/2015 . CAPEX 6-12 months: €265,000 . Service Charges: €30/sq m (on GLA and applicable only for vacant spaces . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent Gross Initial Yield: 10.04% Net Initial Yield: 8.35% Gross Exit Yield: 9.20% Net Exit Yield: 8.00% Equivalent Yield: 8.11% IRR (unleveraged): 9.50%

Comments The adopted gross initial yield is in line with the registered gross yield for office buildings in other regional markets – please refer to Section n. 4.5 – showing an increase of 175bp to reflect the different market appreciation between a more consolidated and attractive market (i.e. Turin) and the current over-rental status of the subject asset.

9.17 SWOT ANALYSIS Strengths . The main Tenant, Vodafone, provides a good/excellent covenant . The property is a good quality office building situated in a secondary market characterised by a limited offer for similar properties

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. It is reasonable to assume that Vodafone will remain in occupation of the building having invested an amount of approx. €17m

Opportunities . Increase of the annual income by letting up the currently vacant spaces . Renegotiation/renewal of Vodafone lease contract at market rental level securing a minimum lease term of six years with no break-option

Weakness . The local market is characterised by the limited dynamism with no foreseeable positive variation of the main real estate indicators (rental values and yields) in the medium term . The limited secured income flow generated by Vodafone

Threats . The property location might impact its attractiveness to a wide range of market investors

9.18 Alternative Use No potential alternative use can be identified for the property in consideration of its configuration and of the uses within the surrounding area.

9.19 Saleability The property would only appeal to institutional and opportunistic investors targeting office building located in secondary markets. The property liquidity will be enhanced by the lease up of the currently vacant space and by a renegotiation with the main tenant foreseeing a longer secured income period.

9.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property: . The present analysis is based on the gross built area GLA of the asset of 20,806sq m . We have considered an average construction cost per sq m based on market benchmarks of approximately €1,100/sq m on GLA reflecting an overall construction cost of €22,886,600 . We deem appropriate to highlight that the Reinstatement Costs estimated take into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution (5% on the construction costs).

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On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approximately €27,000,000 (rounded) reflecting a cost of €1,300/sq m of GLA.

9.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is:

€1,486,000 (rounded) (One Million Four Hundred and Eighty Six Thousand Euros)

9.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows: €15,450,000 (Fifteen Million Four Hundred and Fifty Thousand Euros)

The above reported Market Value reflects a Net Value, after the deduction of purchaser’s costs of acquisition of 5.00%. Our assessment of the Gross Value before deduction of purchaser’s costs is as follows: €16,222,500 (Sixteen Million Two Hundred and Twenty-two Thousand , Five Hundred Euros)

109 Appendix 1

Location

Macro Location

Via Jervis 9, Ivrea

Micro Location

Via Jervis 9, Ivrea

Appendix 2

Photos

Via Jervis 9, Ivrea

External Pictures

Via Jervis 9, Ivrea

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Ivrea ,6,Via Jervis 9,Ivrea File/Ref No 5

Gross Valuation €16,577,597 Capital Costs -€358,402 Net Value Before Fees €16,219,195

Less Stamp Duty @4.00% of Net Value -€617,874 Agents Fee @0.75% of Net Value -€115,851 Legal Fee @0.25% of Net Value -€38,617

Net Valuation €15,446,853 Say €15,450,000

Equivalent Yield 7.7347% True Equivalent Yield 8.1162% Initial Yield (Deemed) 8.3454% Initial Yield (Contracted) 8.3454% Reversion Yield 8.0878%

Total Contracted Rent €1,550,976 Total Current Rent €1,550,976 Total Rental Value €1,485,636 No. Tenants 5 Capital value per m² €711.78

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €1,550,976 €1,353,561 8.3454 % 8.7996 % 05-Dec-2014 €1,550,976 €1,402,060 8.6445 % 9.1325 % 01-Jul-2015 €1,550,976 €1,355,531 8.3576 % 8.8131 % 05-Dec-2015 €1,737,379 €1,552,186 9.5701 % 10.1711 % 01-Jul-2016 €1,467,613 €1,294,560 7.9817 % 8.3963 % 05-Jul-2016 €1,467,613 €1,293,860 7.9773 % 8.3915 % 05-Jan-2017 €1,474,613 €1,300,545 8.0186 % 8.4371 % 20-Jun-2017 €1,463,336 €1,289,775 7.9522 % 8.3637 % 05-Jul-2017 €1,463,336 €1,290,475 7.9565 % 8.3684 % 01-Aug-2017 €1,458,193 €1,285,564 7.9262 % 8.3350 % 01-Feb-2018 €1,466,717 €1,293,704 7.9764 % 8.3904 % 20-Jun-2018 €1,485,636 €1,311,772 8.0878 % 8.5137 % 05-Mar-2027 €1,299,233 €1,133,757 6.9902 % 7.3066 % 05-Dec-2027 €1,485,636 €1,311,772 8.0878 % 8.5137 % 05-Jul-2028 €1,478,636 €1,305,087 8.0466 % 8.4681 % 05-Jul-2029 €1,485,636 €1,311,772 8.0878 % 8.5137 %

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Yields based on €16,219,195

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold Vodafone 1 NA 30-Jun-2016 €1,534,556 Unrounded €1,264,790 All Units Initial Yield 8.165 €17,394,473 Vodafone 2 NA 31-Jul-2017 €5,143 Unrounded €8,524 All Units Initial Yield 8.165 €44,171 Manutencoop NA 19-Jun-2017 €11,277 Unrounded €18,919 All Units Initial Yield 8.165 €96,373 Vacant 1 NA 04-Mar-2027 €0 Unrounded €186,403 All Units Initial Yield 8.165 -€957,420 Vacant 2 NA 04-Jul-2028 €0 Unrounded €7,000 All Units Initial Yield 8.165 €0 Total €1,550,976 €1,485,636 €16,577,597

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 3 REPORT Discounted Cashflow jones lang lasalle

Address Ivrea ,6,Via Jervis 9,Ivrea,Ivrea DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €16,222,500 Geared IRR 9.5067% Start: Acquisition Fee @ 5.0000% -€772,500 Ungeared IRR 9.5067% Start: Net Value €15,450,000

Exit Results

Exit: Gross Value €18,372,661 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €18,372,661 Exit: Vendors Fees -€183,727 Exit: Rent adjustments €0 Exit: Adjusted Net Value €18,188,934

Exit: Rent payable (gross) €1,672,363 Exit: Market rent (gross) €1,759,150 Exit: Rent receivable (net) €1,469,813 Exit: Market rent (net) €1,556,600 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 8.0000% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 8.0000% (Net Rent / Net Value X 100) Exit: Net Revn Yield 8.4724% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 8.4724% (Net ERV / Net Value X 100) 9.5748% (Gross ERV / Gross Value X 100) 9.5748% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 7.3943% Exit: Vendors Fees 1.0000% (-€183,727)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€15,883,150 €388,904 €0 €1,485,636 -€49,554 €0 1.0000 -€15,885,638 2 05-Sep-2014 04-Dec-2014 €339,448 €388,906 €0 €1,485,636 -€49,458 €0 0.9702 €329,349 3 05-Dec-2014 04-Mar-2015 €158,472 €388,906 €0 €1,485,636 -€230,434 €0 0.9447 €149,712 4 05-Mar-2015 04-Jun-2015 €176,956 €388,908 €0 €1,488,523 -€211,952 €0 0.9245 €163,598 5 05-Jun-2015 04-Sep-2015 €347,088 €391,673 €0 €1,492,599 -€44,585 €0 0.9067 €314,710 6 05-Sep-2015 04-Dec-2015 €346,976 €391,677 €0 €1,496,687 -€44,701 €0 0.8864 €307,545

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Ivrea ,6,Via Jervis 9,Ivrea,Ivrea DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €405,082 €451,954 €0 €1,500,786 -€46,872 €0 0.8665 €351,012 8 05-Mar-2016 04-Jun-2016 €391,306 €438,281 €0 €1,506,480 -€46,975 €0 0.8468 €331,360 9 05-Jun-2016 04-Sep-2016 €327,318 €373,168 €0 €1,512,842 -€45,850 €0 0.8280 €271,009 10 05-Sep-2016 04-Dec-2016 €329,179 €373,455 €0 €1,519,230 -€44,276 €0 0.8094 €266,436 11 05-Dec-2016 04-Mar-2017 €331,404 €375,839 €0 €1,525,647 -€44,435 €0 0.7910 €262,140 12 05-Mar-2017 04-Jun-2017 €330,924 €375,571 €0 €1,532,891 -€44,647 €0 0.7732 €255,874 13 05-Jun-2017 04-Sep-2017 €331,835 €376,667 €0 €1,540,499 -€44,832 €0 0.7561 €250,902 14 05-Sep-2017 04-Dec-2017 €331,496 €376,432 €0 €1,548,145 -€44,936 €0 0.7391 €245,016 15 05-Dec-2017 04-Mar-2018 €333,278 €378,385 €0 €1,555,827 -€45,107 €0 0.7223 €240,720 16 05-Mar-2018 04-Jun-2018 €333,807 €379,148 €0 €1,563,276 -€45,342 €0 0.7061 €235,690 17 05-Jun-2018 04-Sep-2018 €343,711 €389,477 €0 €1,570,650 -€45,766 €0 0.6905 €237,328 18 05-Sep-2018 04-Dec-2018 €343,051 €389,098 €0 €1,578,058 -€46,048 €0 0.6750 €231,554 19 05-Dec-2018 04-Mar-2019 €343,374 €389,587 €0 €1,585,502 -€46,213 €0 0.6596 €226,501 20 05-Mar-2019 04-Jun-2019 €343,275 €389,603 €0 €1,591,867 -€46,328 €0 0.6448 €221,340 21 05-Jun-2019 04-Sep-2019 €347,425 €393,992 €0 €1,597,803 -€46,567 €0 0.6305 €219,065 22 05-Sep-2019 04-Dec-2019 €347,425 €394,168 €0 €1,603,761 -€46,742 €0 0.6164 €214,150 23 05-Dec-2019 04-Mar-2020 €347,689 €394,565 €0 €1,609,742 -€46,876 €0 0.6024 €209,437 24 05-Mar-2020 04-Jun-2020 €347,563 €394,573 €0 €1,617,155 -€47,010 €0 0.5888 €204,656 25 05-Jun-2020 04-Sep-2020 €351,793 €399,082 €0 €1,625,182 -€47,289 €0 0.5758 €202,564 26 05-Sep-2020 04-Dec-2020 €351,803 €399,308 €0 €1,633,247 -€47,505 €0 0.5629 €198,021 27 05-Dec-2020 04-Mar-2021 €352,139 €399,824 €0 €1,641,354 -€47,684 €0 0.5501 €193,706 28 05-Mar-2021 04-Jun-2021 €352,001 €399,833 €0 €1,649,500 -€47,832 €0 0.5377 €189,274 29 05-Jun-2021 04-Sep-2021 €356,919 €405,054 €0 €1,657,686 -€48,135 €0 0.5258 €187,676 30 05-Sep-2021 04-Dec-2021 €356,924 €405,289 €0 €1,665,912 -€48,365 €0 0.5140 €183,465 31 05-Dec-2021 04-Mar-2022 €357,274 €405,822 €0 €1,674,180 -€48,548 €0 0.5023 €179,468 32 05-Mar-2022 04-Jun-2022 €357,133 €405,831 €0 €1,682,489 -€48,698 €0 0.4910 €175,360 33 05-Jun-2022 04-Sep-2022 €362,124 €411,131 €0 €1,690,839 -€49,007 €0 0.4802 €173,880 34 05-Sep-2022 04-Dec-2022 €362,129 €411,369 €0 €1,699,232 -€49,241 €0 0.4694 €169,982 35 05-Dec-2022 04-Mar-2023 €362,483 €411,911 €0 €1,707,664 -€49,428 €0 0.4587 €166,279 36 05-Mar-2023 04-Jun-2023 €362,339 €411,920 €0 €1,716,139 -€49,581 €0 0.4484 €162,475 37 05-Jun-2023 04-Sep-2023 €367,404 €417,300 €0 €1,724,656 -€49,895 €0 0.4385 €161,103 38 05-Sep-2023 04-Dec-2023 €367,408 €417,541 €0 €1,733,215 -€50,133 €0 0.4287 €157,490 39 05-Dec-2023 04-Mar-2024 €367,767 €418,091 €0 €1,741,817 -€50,324 €0 0.4189 €154,059 40 05-Mar-2024 04-Jun-2024 €367,620 €418,100 €0 €1,750,462 -€50,480 €0 0.4095 €150,534 41 05-Jun-2024 Final period €18,188,934 €1,759,150 0.4036 €7,341,243 PV factor is averaged over multi-discount dates. NPV Balance €45

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Ivrea ,6,Via Jervis 9,Ivrea,Ivrea DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity Vodafone 1 €1,423,250 €1,250,624 €1,497,646 €1,325,020 €15,632,803 100.00% Vodafone 2 €9,651 €7,480 €10,093 €7,922 €93,498 100.00% Manutencoop €21,375 €16,560 €22,402 €17,587 €207,003 100.00% Vacant 1 €210,207 €187,623 €220,721 €198,137 €2,345,289 100.00% Vacant 2 €7,880 €7,525 €8,288 €7,933 €94,068 100.00%

Sum of tenant gross values €1,672,363 €1,469,813 €1,759,150 €1,556,600 €18,372,661 100.00%

Property Report

Turin, Via Vincenzo Lancia 55

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10 Turin, Via Vincenzo Lancia 55

10.1 Location The property is a stand-alone building situated in Via Lancia 55, within the Municipality of Turin, the capital city of Piedmont, Northern Italy. Turin is the third economic hub and one of the most important educational, cultural, touristic and scientific centres of Italy. The nearest cities are Novara (103km to the north-east), Milan (149km to the north-east) and Alessandria (89km to the south-east).

The property is located within the San Paolo district. In the past this area represented an industrial zone of the city, hosting the production site of Lancia and Pininfarina industries, Fiat Ferroviaria and Asnaldo. Starting from the 1990s this area has undergone important redevelopment from industrial use to retail and residential use. The surrounding area is characterised mainly by the presence of residential buildings. However, it is important to underline also the presence of office buildings (such as the Lancia Skyscraper) and some older industrial sites.

10.2 Accessibility Road The property benefits from very good road accessibility being positioned in proximity to some of the main roads in Turin: Corso Francia (SS25) connecting the property to the motorway A-32 and to northern city-by-pass and Corso Lecce that connects the northern part of the city to the southern part. The northern city-by-pass and the motorway A-32 (Torino-Bardonecchia) are respectively approximately 9km and 12km from the property. The A6 Torino-Savona motorway and the A4 Torino-Trieste motorway are respectively approximately 8km and 10km from the property.

Rail Turin is Italy’s third railway junction. The main railway station is Porta Nuova, about 4km from the property, and connects the city to Genoa, Milan and France. Turin also benefits from a secondary railway station, called “Porta Susa”, 4 km from the subject premises. Trains between Torino Porta Nuova and Milan stop at this station, including TAV services between Paris and Milan and other services using the Turin–Milan high-speed line. The four lines of the Turin Passante regional railway also stop here. The third railway station of the city is Turin Lingotto. It forms part of the Turin-Genoa line linking Turin with secondary southern cities. Turin also has a VAL automatic high speed subway running across the city. The nearest stops to the property are “Vinzaglio” and “Bernini” both at approximately 1km.

Public Transport The property is not served by the underground public network, but is served by surface public transport. In front of the main entrance there is bus stop for line no. 64 and in the immediate surrounding, in a radius of approx.200m, there is also the stop for bus lines 2, 71 and 259tk.

Air The closest airport is Torino-Caselle Airport situated some 18km away.

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10.3 Site and Property Description Site Description and Accessibility The property under analysis is developed on an almost square shaped land plot. The site is bounded by Via Vincenzo Lancia to the north, by Via Issiglio to the east and by Third Parties to the north and to the west. The property presents four entrances: three pedestrian entrances and one vehicular entrance. Two pedestrian entrances are located on Via Lancia, one of which is currently unused; the third pedestrian entrance is on Via Issiglio. The vehicular entrance is located in Via Lancia and represents the access to the external area of the property.

Property Description The property was built in the 60s and now is one of the main HQ for Telecom. It is composed of two buildings. The main building ( Building A) is developed on two basement levels and six floors above ground. The second building (Building B) is located within the inner courtyard and is developed on two floors above ground (G and first). The two buildings are not connected. The property has reinforced concrete frame structure, flat roof; the facades are finished with tiles.

Building A The building presents an H shaped floor plan from the ground floor to the third floor, and by a rectangular shaped plan on the fourth and fifth floors. The second basement level hosts a corridor used for the maintenance of the plant, the first basement hosts technical rooms, the ground floor the storage and technical rooms, the first and the second floors the technical rooms, the third floor the CED and offices, the fourth and the fifth host offices. In terms of finishes and specifications the offices present raised floors and suspended ceilings, the floor finishes is made of PVC tiles whilst the suspended ceiling is either metallic or made of mineral fibre. The spaces present traditional single office layout delimited by removable partitioning. The technical rooms are not equipped with raised floors nor with suspended ceilings (except for a portion in the hall), the floor finishes include either PVC or Gres tiles. The spaces are equipped with primary air treatment unit, heating and conditioning by fan coils in the offices and traditional perimeter heating units within the sanitary rooms and common areas (such as: stairs, corridors). The vertical connection is guaranteed by four lifts and three goods lifts:

. Two lifts and two goods-lifts serve the building from the first basement level to the fifth floor . One goods lift and two lifts serve the building from the ground floor to the fifth floor . The building is also served by two stairs that connect the ground floor to the roof floor and a ramp that connects the basement floor to the external area at the ground floor

Building B The building has an almost rectangular shaped floor plate. The ground floor host technological rooms while the first floor has a canteen and offices.

In terms of finishes and specification, the offices present suspended ceiling, the canteen is not equipped with raised floors and presents stoneware tile floor finishes and suspended ceilings. The spaces are equipped with primary air treatment unit (canteen), heating and conditioning by fan coils in the offices.

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The vertical connection is guaranteed by a staircase that connects the ground floor to the first floor. Overall the property is equipped also with special plant: Anti-burglar system (TVCC, access with badge, alarms.), fire prevention system with sensors installed in the suspended ceilings and in the floors, fire extinguisher system with gas in the CED and in the battery room.

10.4 State of Repairs We inspected the property on 12 June 2014. Based on the visual inspection, it is our opinion that the state of repair of the offices in the Building A is good, also in consideration of the fact that they were refurbished between 2005 and 2007. The floors (Ground, First and Second) hosting the technical rooms are in a poor state of repair.

Building B is in an overall good state of repair, except for the office spaces on the first floor that are in a poor state of repair.

10.5 Accommodation For the purposes of this valuation we have adopted the following Gross Areas (GA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried.

Technical Ext. Horiz. Vert. Total Office Technological Archives Common Ext.Parking Ext. Circ. Floor Plants (sq Area Conn.(sq Conn.(sq Gross (sq m) Room (sq m) (sq m) (sq m) (sq m) (sq m) m) (sq m) m) m) Area

-2 558 558 -1 3,373 209 121 11 580 141 716 153 5,304 G 5,005 114 582 1,455 1,010 325 378 8,869 1st 811 3,136 68 1,233 84 209 254 5,795 2nd 4,193 243 108 317 254 5,115 3rd 2,215 2,241 117 68 217 4,858 4th 1,027 179 912 177 2,295 5th 1,978 137 153 2,268 6th 102 20 80 202 Total 5,004 18,975 1,055 2,266 385 582 2,055 1,151 2,125 1,666 35,264

The property totals a Gross Area of 35,264 sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 27,096 sq m. The GLA adopted includes the areas referred to in the table above as: offices, technological rooms, archive and horizontal connections on the floor upper the basement level. The GLA does not include the areas identified as common areas: horizontal connections in the basement levels, vertical connections and common areas and the technical plants.

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Based on the site inspection, the technological rooms and the archives on the fourth floor (reported in the table above) are used as offices. Therefore, in our analysis we have considered said spaces as offices. The above GLA does not include the areas for the external parking (582 sq m) as being valued on number of parking space basis and not on a square meter basis in number of 36.

Commentary The TDD report provided reports a GFA of 35,333 sq m. If compared to the GFA above reported (35,264 sq m) highlights a minor difference (+0.20%). The TDD Report does not provide the area split per use, such as: office, storage, vertical circulation, horizontal circulation, etc. therefore for the purposes of this valuation we have relied on the areas contained within the IM. We highlight that, it is our understanding that the for the purposes of the TDD, has not been performed a check measurement on site nor on property plans therefore the discrepancy could be due to the different source of information used for the preparation of the IM and of the TDD report.

10.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, exception made for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . The only material employed on site and potentially dangerous for the soil, subsoil and groundwater are the underground gasoline tanks serving the generator units;

Soil, Subsoil and Groundwater: . Subsequent to the environmental characterisation plan (Piano di Caratterizzazione Ambientale), dated 2006, a potential contamination of the soil and subsoil has been found in the east and in the west sector. After the drafting of the Risk Analysis, only the west sector was confirmed as polluted by heavy hydrocarbons and in need of reclamation. For this sector has been presented a POB (Piano Di Bonifica) in 2009, after turned into an Operational Securing Project (Progetto di Messa in Sicurezza Operativa) through the annual monitoring of soil gases. The results of the monitoring have showed that limits were never exceeded by the limits settled by Law. Nevertheless, the Certificate of complete reclamation (Certificato di Avvenuta Bonifica) released by the Torino Province is not available as well as the PCA (Environmental Characterisation Plan) or the results of the site-specific Risk analysis are not available in Data Room.

. Subsequent to a preliminary analysis on the site, in 2003, a potential contamination in the soil and sub soil of heavy hydrocarbons was found in the north-west sector (near thermal plant). However there is no available information concerning the management of the potential contamination in sector north- west . It is recommended to re-draft the Risk Analysis of the north-west sector also due to the fact that in November 2013 ISS-INAIL published an updated version of the contaminating substances toxicological database

. It is recommended also a new perimeter measurement to define the precise area undergoing reclamation through MISO (west sector – generators).

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GHG Emissions and ODS (Ozone Depleting Substances) . The cooling plant is composed of some roofed cooling units and some autonomous split units. The gas employed for the fluid cooling is R134a, more than 60 Kg. Based on the EDD it is necessary to retrieve or create a new machinery register for each cooling unit so as to verify the presence of any GHG gas (R134A) leaks through a technical survey.

Asbestos (ACM) . Based on the documentation available in the Data Room the following elements contain ACM: - Coating of the pipes of the air-conditioning plant on the ground floor of the York CDZ compartment - Gaskets of flanges in York compartment - Coated chimneys - Fibre cement canopy (parking area)

. It is recommended to update the MCP in compliance with D.M. 06/09/94, including a description of the maintenance status of the ACM and the results of the monitoring of indoor compartments containing ACM

Man Made Vitreous Fibres (MMVF) . The documentation made available for the purposes of the EDD shows no sign of sampling on materials potentially containing MMVF since 2005. On site survey detects the following elements as potentially containing MMVF: insulation of the AHU piping, insulation of the pipes of the heating plant, insulating mat on the first floor in the pump compartment . It is recommended to proceed with the MMVF sampling

Electromagnetic Field . It is recommended to proceed with the measurement of the electromagnetic field in order to verify compliance with the limits for the population and for workers

Ionizing Radiation: Radon . The documental analysis does not show whether a monitoring campaign on radon has been conducted or not. Therefore it is suggested to proceed with a one year long monitoring campaign

Pathogens . No documentation on the implementation of measures to sanitise the AHU ducts has been found. It is required either to recover the documentation or, alternatively, to design a specific sanitation programme for the air ducts. The EDD report quantifies an amount equal to €70,500 for the costs related to necessary verification e/o administrative costs of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

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material with the property, therefore if you wish for certainty regarding this issues we should advise you instruct a qualified surveyor.

10.7 Cadastral Data Based on the information reported in the TDD Report the property under analysis is registered as follows:

Building Registry of the Municipality of Turin:

Sheet Parcel Sub Category 1290 24 1 D/1 Commentary The TDD Report highlights the following:

. Some discrepancies were found during the site inspection between the existing internal layout and the drawings provided. Therefore they shall have to be regularised at the Building registry office

. In the data Room is available a building registry certificate referred to a unit register as Sheet. 82, Parcel.309, Sub.2. located in Via Isonzo 113 and owned by SIP S.p.a. This unit is included in the perimeter of the property and based on the purchase deed between Tiglio I and Berenice and it has been registered as annexed to the parcel 308 that was after converted in the sub.24. It has to be verified which part of the building is identified in parcel 309 sub 2 Sheet 82, registered in SIP’s name. The incorrect transcription has to be amended, since SIP still results to be the owner. . In the DOCFA, dated 2005, are indicated areas used as offices. The legitimacy of the office designation of use indicated in the DOCFA documentation of 2005 has to be ascertained, because it is not compatible with the existing cadastral category D/1-Factories. For the purposes of this valuation we have assumed that the cadastral identification of the building has been rectified at the local authority prior to the sale of the property – as required by the Law - and therefore no related risks were taken into account in our analysis.

10.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below:

. A valid Building Certificate of Use (CDU) has not been made available for the purposes of the TDD analysis

. The CDU made available states that at the date of the issuance of this CDU (24/02/2005) the property had fallen within area zoned as: Public Services S - Equipment and technological systems (Servizi Pubblici-Attrezzature e Impianti tecnologici) . Based on the currently valid Town General Plan, it is necessary to verify whether it is possible to use the entire building, or part of it, for office use, since the building is currently intended for public services- technological equipment and systems, which is not compatible with office/service use . It has to be clarified whether the industrial use restriction on the area has been cancelled by a formal deed

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. The building falls in an area designated for public services that might be included in areas to be developed with public infrastructures (municipal standards). In the case of change of use and utilisation of the building for private use, the planning tools would need to be modified together with the provision of standards areas and the payment of planning fees. . It is presumed that the spaces of the property used as offices have exceeded the maximum limit foreseen in the subject area (25% of GFA). Therefore it has to be verified whether the office use has been duly authorised by the Municipality of Turin (ex. Building Permit should be retrieved) and that the planning fees have been paid or if the change of use has been allowed further to building pardon procedure. . A document is available, dated 1970, in which SIP S.p.a established an obligation with the Municipality of Turin. The obligation consists in the maintenance of the use of the area (industrial) for 15 years. It is necessary to update the notarial report on the 20-year period in order to verify whether the obligation has expired. The present valuation is based on the assumption that the property is used in compliance with the town-planning regulation and that the current use of the property has been duly authorised and all planning fees and standards duly paid and fulfilled. With reference to the building permits, the TDD report states that the administrative documents allowing the construction of the building therefore the conformity of the building cannot be ascertained. For the purposes of this valuation it has been assumed that all relevant building missing permits were regularly requested and granted by the Local Authority and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated to the this aspects.

10.9 Building Certifications CPI - Fire Prevention Certificate The TDD highlights that:

. No currently valid Fire Prevention Certificates are available . It is necessary to obtain the copies of the approved projects and annexed certification in order to ascertain the CPI regularity and the management of the future renewals . The Vendor should state the number of employees present with the building in order to verify whether an additional CPI has to be issued for this activity

Fitness for Use Certificate The TDD highlights that:

. The existing Fitness for Use Certificates date back to 1976. These documents do not make any reference to office use and office activities, which are currently performed in the building.

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. There are not available applications for Fitness for Use Certificates and Fitness for Use Certificates related to the Building Permit no. 801 of 1992, to the Building Permit no. 500 of 1995 and the DIA 1995-09-3566 19/09/1995.

10.10 Annual Non-recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €190,519 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance none Insurance Building is paid The IM by the Tenant Property 1% on the Gross Rent. This amount represents the The IM Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves none The Extraordinary The IM Maintence is carried out and related costs are entirely paid by the Tenant. Service Charges €30/sq m to be applied to the vacant JLL Estimate spaces.

We highlight that the our analysis does not take into account the “administrative costs” related to missing documents and certificates reported in the TDD report as it appears reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

10.11 Tenure

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The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis. Easements The TDD report does not state any easements related to the property.

10.12 Tenancy At the valuation date, the property is fully let to Telecom Spa. The main contractual details were extrapolated from the IM and are summarised below:

Lease Dates & Break Options

2nd Lease Notes Lease 1 Lease Term Break Tenant Lease Start Term length Expiry Option Expiry Telecom Spa 01/12/2000 21+6 30/11/2021 30/11/2027 - -

Passing Rent, Step Rents and Headline Rent

Passing Date Step Date Step Tenant Step 1 Step 2 HR Date HR Rent 1 2 Telecom Spa €2,689,681 ------

Rent revision & Indexation

Tenant ISTAT Indexation % Telecom Spa 75%

Based on the information contained within the TDD report, we report that: . The original lease agreement was modified in the 2002. There is no modification exception made for the elimination of the art. 12.3.d). It is necessary to proceed with a legal analysis that examines this modification.

10.13 Letting Transactions

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We report below a selection of the results of the market enquiries carried out in terms of asking rents in the area of reference for pure offices. We deem appropriate to bring to the Client’s attention that there is no information available for comparable leasing transactions concluded in the area of interest.

Area Asking Rent Adress Sub-Area Quality (sq m) (€/sq m) Via Millio Semicentre 50 €120 Average Via Tolmino Semicentre 120 €110 Average Corso Peschiera Semicentre 150 €80 Poor We deem appropriate to point out that the rental values above reported refers to asking rents and not to transactions closed; these values do not reflect the potential discount deriving from the negotiation process.

10.14 Market Rent The Market Rent by us estimated takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be of: . €110/sq m for the offices and related horizontal connections . €105/sq m for the technological rooms at the fourth floors

. €95/sq m for the technological rooms and related horizontal circulation on the other floors . €800 p.a. for each surface parking space The estimated Market Rent has been weighted according to use as follows:

. Offices: 100% . Technological Rooms: 100% . Archives: 33%

. Horizontal Circulation (Upper Ground) 100% . Horizontal Circulation (Basement ) 0% . Vertical Circulation: 0%

. The car parking spaces have been valued on a number of parking space bases

As reported in the paragraph 5.4 the archives and the technological rooms located on the fourth floor, have been considered as offices and so their market rent has been weighted at 100%. The total Market Rent is of €2,621,000. If compared the passing rent of €2,689,861 to the market rent it shows an over-rented situation of approximately 3%.

Marketing Assumptions Our Market Rent estimate also considers the following marketing assumptions: . Letting Void (future leases): 24 months

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. Rent Free period (future leases): 12 months . Tenant Improvement’s (capital €110/sq m (equal to 12 months of rent) contribution on future leases):

Comments The adopted Market Rent for the office space of between €110/sq m and €105/sq m, is line with reported data for other properties in comparable locations. The office rental value has been used as point of reference to estimate the probable Market Rent for the remaining spaces in consideration of their use.

10.15 Future Income Performance We are of the opinion that the building is currently slightly over-rented market therefore the present valuation assumes that the Tenant at the first lease term expiry (30/11/2021) will renegotiate its lease at market rent by us estimated, also in consideration of the specialisation of the property (CED). We highlight that the ability to generate future income would be limited and based on the redevelopment of the property. In the event that the tenant should opt for the property release due to non-real estate related drivers (i.e. business activity) the property will be suitable for a redevelopment subject to verification with the Local Authority of its planning use.

10.16 Valuation Data The DCF analysis is based on the following parameters: Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date Gross Rent as at the Valuation Date: €2,689,861 Market Rent: €2,621,000 Letting Void (future leases) 24 months Rent Free period (future vacancy): 12 months Tenant Improvements (Capital €110 (equal to 12 months’ rent) contribution future leases ): Non recoverable costs: Annual non-recoverable costs include: . Property tax (IMU): €190,519 p.a. . Building Management: 1% on the gross rent . Service Charges: €30/sq m (on GLA and applicable only for vacant spaces . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent No Building Insurance and Capital Expenditure has been taken into

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account in our analysis as being paid by the Tenant. Gross Initial Yield: 8.38% Net Initial Yield: 7.30% Gross Exit Yield: 8.45% Net Exit Yield: 7.60% Equivalent Yield: 7.20% IRR (unleveraged): 9.00%

Comments The adopted Gross Yield is based on the registered market evidence within the Turin market. The property is located in an appealing and central location but it is let to a Public Entity at a passing rent higher than the market rental level (at the date of the valuation) therefore the secured income period may be considered as uncertain.

10.17 SWOT ANALYSIS

Strengths . The property is let to a prime tenant with a lease contract expiring at the end of 2021 . The Tenant is responsible for all extraordinary costs

Opportunities . In-town location within a mixed semi-central area; the surrounding area includes residential blocks of average to low quality, some limited private and public office accommodations . Potential redevelopment of the property for a different use (subject to verification with the Local Authority) if vacated by the current tenant

Weakness . The property is not suitable for reletting if it should be vacated by the current Tenant at the first lease expiry in consideration of its specialised configuration

Threats . The planning procedure to secure a change of use of the property (from industrial to residential), if it should be vacated by the Tenant, will foresee the payment of planning costs whose amount cannot be foreseen to date

10.18 Alternative use Based on the characteristics of the immediate surrounding area, which is mainly residential, and of the property quality and lettability it is our opinion that the property would be suitable for a redevelopment for a different use potentially/partially residential. The current planning use of the property would not allow a residential

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redevelopment, however, it is reasonable to assume that an industrial redevelopment would not be favoured by the Local Authority.

10.19 Saleability The property would appeal to local and institutional investors in consideration of its investment volume, of the tenant’s covenant and of the secured income flow until 2021. It is our opinion that the current ease contract and its potential renewal for an additional period would be the main investment drivers having taken into account the limited appeal of Turin market.

10.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property:

. The present analysis is based on the gross built area GLA of the asset of 27,096sq m . We have considered an average construction cost per sq m based on market benchmarks of approximately €1,100/sq m on GLA reflecting an overall construction cost of €29,805,600 . We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution (5% on the construction costs). Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs. On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approximately €35,380,000 (rounded) reflecting a cost of €1,306/sq m of GLA.

Commentary The above reported costs estimates should be considered as indicative, based on average parametric costs applicable for properties with similar characteristics to the property under analysis; if you wish for certainty in regarding the costs estimates, we would advise you to consult a cost consultant. With reference to the construction cost contribution, in absence of the information publicly available we have estimated said cost based on market benchmarks for similar locations. If you wish for certainty we advise to instruct a planning specialist to provide the fees estimate.

10.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is: €2,621,000 (rounded)

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(Two Million Six Hundred and Twenty thousand Euros)

10.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows:

€32,100,000 (Thirty Two Million One Hundred Thousand Euros)

€33,705,000 (Thirty Three Million Seven Hundred and Five Thousand Euros

124 Appendix 1

Location

Macro Location

Via Vincenzo Lancia 55, Turin

Micro Location

Via Vincenzo Lancia 55, Turin

Appendix 2

Photos

Via Vincenzo Lancia 55, Turin

External Pictures

Via Vincenzo Lancia 55, Turin

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Turin,6,Via Vincenzo Lancia,Turin File/Ref No 6

Gross Valuation €33,684,850 Capital Costs -€200 Net Value Before Fees €33,684,650

Less Stamp Duty @4.00% of Net Value -€1,283,225 Agents Fee @0.75% of Net Value -€240,605 Legal Fee @0.25% of Net Value -€80,202

Net Valuation €32,080,619 Say €32,100,000

Equivalent Yield 6.8916% True Equivalent Yield 7.1985% Initial Yield (Deemed) 7.3000% Initial Yield (Contracted) 7.3000% Reversion Yield 7.0987%

Total Contracted Rent €2,689,861 Total Current Rent €2,689,861 Total Rental Value €2,621,025 No. Tenants 1 Capital value per m² €925.55

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €2,689,861 €2,458,994 7.3000 % 7.6456 % 01-Dec-2027 €0 -€190,519 -0.5656 % -0.5676 % 01-Dec-2028 €2,621,025 €2,391,191 7.0987 % 7.4252 %

Yields based on €33,684,850

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold Telecom Italia S.p.A. NA 30-Nov-2027 €2,689,861 Unrounded €2,621,025 All Units Initial Yield 7.300 €33,684,850 Total €2,689,861 €2,621,025 €33,684,850

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Turin,6,Via Vincenzo Lancia,Turin,Turin DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €33,705,000 Geared IRR 8.9658% Start: Acquisition Fee @ 5.0000% -€1,605,000 Ungeared IRR 8.9658% Start: Net Value €32,100,000

Exit Results

Exit: Gross Value €38,209,717 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €38,209,717 Exit: Vendors Fees -€382,097 Exit: Rent adjustments €0 Exit: Adjusted Net Value €37,827,620

Exit: Rent payable (gross) €3,178,241 Exit: Market rent (gross) €3,103,573 Exit: Rent receivable (net) €2,903,938 Exit: Market rent (net) €2,829,270 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 7.6000% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 7.6000% (Net Rent / Net Value X 100) Exit: Net Revn Yield 7.4046% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 7.4046% (Net ERV / Net Value X 100) 8.1225% (Gross ERV / Gross Value X 100) 8.1225% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 7.0311% Exit: Vendors Fees 1.0000% (-€382,097)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€33,090,451 €672,465 €0 €2,621,025 -€57,917 €0 1.0000 -€33,094,546 2 05-Sep-2014 04-Dec-2014 €616,315 €674,126 €0 €2,621,025 -€57,812 €0 0.9722 €599,159 3 05-Dec-2014 04-Mar-2015 €619,414 €677,395 €0 €2,621,025 -€57,981 €0 0.9513 €589,221 4 05-Mar-2015 04-Jun-2015 €619,293 €677,395 €0 €2,626,123 -€58,102 €0 0.9310 €576,568 5 05-Jun-2015 04-Sep-2015 €619,162 €677,395 €0 €2,633,315 -€58,233 €0 0.9115 €564,386 6 05-Sep-2015 04-Dec-2015 €621,484 €679,849 €0 €2,640,527 -€58,365 €0 0.8922 €554,472

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Turin,6,Via Vincenzo Lancia,Turin,Turin DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €626,070 €684,677 €0 €2,647,759 -€58,606 €0 0.8730 €546,550 8 05-Mar-2016 04-Jun-2016 €625,887 €684,677 €0 €2,657,802 -€58,790 €0 0.8544 €534,773 9 05-Jun-2016 04-Sep-2016 €625,682 €684,677 €0 €2,669,026 -€58,995 €0 0.8365 €523,401 10 05-Sep-2016 04-Dec-2016 €629,283 €688,483 €0 €2,680,298 -€59,200 €0 0.8188 €515,235 11 05-Dec-2016 04-Mar-2017 €636,397 €695,973 €0 €2,691,617 -€59,576 €0 0.8012 €509,852 12 05-Mar-2017 04-Jun-2017 €636,163 €695,973 €0 €2,704,399 -€59,810 €0 0.7841 €498,818 13 05-Jun-2017 04-Sep-2017 €635,918 €695,973 €0 €2,717,821 -€60,055 €0 0.7677 €488,193 14 05-Sep-2017 04-Dec-2017 €640,304 €700,605 €0 €2,731,309 -€60,301 €0 0.7514 €481,122 15 05-Dec-2017 04-Mar-2018 €648,964 €709,718 €0 €2,744,865 -€60,755 €0 0.7352 €477,142 16 05-Mar-2018 04-Jun-2018 €648,724 €709,718 €0 €2,758,007 -€60,995 €0 0.7196 €466,813 17 05-Jun-2018 04-Sep-2018 €648,486 €709,718 €0 €2,771,015 -€61,232 €0 0.7045 €456,880 18 05-Sep-2018 04-Dec-2018 €652,811 €714,282 €0 €2,784,084 -€61,471 €0 0.6896 €450,159 19 05-Dec-2018 04-Mar-2019 €661,349 €723,262 €0 €2,797,216 -€61,913 €0 0.6747 €446,238 20 05-Mar-2019 04-Jun-2019 €661,144 €723,262 €0 €2,808,446 -€62,118 €0 0.6604 €436,605 21 05-Jun-2019 04-Sep-2019 €660,952 €723,262 €0 €2,818,919 -€62,310 €0 0.6466 €427,348 22 05-Sep-2019 04-Dec-2019 €664,497 €726,999 €0 €2,829,431 -€62,502 €0 0.6328 €420,516 23 05-Dec-2019 04-Mar-2020 €671,491 €734,352 €0 €2,839,982 -€62,861 €0 0.6192 €415,803 24 05-Mar-2020 04-Jun-2020 €671,252 €734,352 €0 €2,853,062 -€63,099 €0 0.6061 €406,817 25 05-Jun-2020 04-Sep-2020 €670,994 €734,352 €0 €2,867,222 -€63,358 €0 0.5934 €398,144 26 05-Sep-2020 04-Dec-2020 €675,579 €739,197 €0 €2,881,451 -€63,618 €0 0.5808 €392,351 27 05-Dec-2020 04-Mar-2021 €684,637 €748,732 €0 €2,895,752 -€64,094 €0 0.5683 €389,061 28 05-Mar-2021 04-Jun-2021 €684,375 €748,732 €0 €2,910,123 -€64,357 €0 0.5562 €380,635 29 05-Jun-2021 04-Sep-2021 €684,111 €748,732 €0 €2,924,566 -€64,620 €0 0.5445 €372,527 30 05-Sep-2021 04-Dec-2021 €688,892 €753,778 €0 €2,939,080 -€64,885 €0 0.5330 €367,164 31 05-Dec-2021 04-Mar-2022 €698,330 €763,707 €0 €2,953,667 -€65,376 €0 0.5215 €364,190 32 05-Mar-2022 04-Jun-2022 €698,063 €763,707 €0 €2,968,326 -€65,644 €0 0.5104 €356,302 33 05-Jun-2022 04-Sep-2022 €697,794 €763,707 €0 €2,983,057 -€65,913 €0 0.4997 €348,712 34 05-Sep-2022 04-Dec-2022 €702,670 €768,853 €0 €2,997,862 -€66,183 €0 0.4891 €343,693 35 05-Dec-2022 04-Mar-2023 €712,297 €778,981 €0 €3,012,740 -€66,684 €0 0.4786 €340,910 36 05-Mar-2023 04-Jun-2023 €712,024 €778,981 €0 €3,027,692 -€66,957 €0 0.4684 €333,525 37 05-Jun-2023 04-Sep-2023 €711,750 €778,981 €0 €3,042,718 -€67,231 €0 0.4586 €326,421 38 05-Sep-2023 04-Dec-2023 €716,724 €784,230 €0 €3,057,819 -€67,507 €0 0.4489 €321,722 39 05-Dec-2023 04-Mar-2024 €726,543 €794,560 €0 €3,072,995 -€68,017 €0 0.4392 €319,116 40 05-Mar-2024 04-Jun-2024 €726,264 €794,560 €0 €3,088,246 -€68,296 €0 0.4299 €312,211 41 05-Jun-2024 Final period €37,827,620 €3,103,573 0.4241 €16,041,907 PV factor is averaged over multi-discount dates. NPV Balance €116

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Turin,6,Via Vincenzo Lancia,Turin,Turin DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity Telecom Italia S.p.A. €3,178,241 €2,903,938 €3,103,573 €2,829,270 €38,209,717 100.00%

Sum of tenant gross values €3,178,241 €2,903,938 €3,103,573 €2,829,270 €38,209,717 100.00%

Property Report

Treviso, Via Sante Zanon 7

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11 Treviso, Via Sante Zanon 7

11.1 Location The property is located in Treviso, the capital city of the Province of Treviso, in the eastern part of Veneto Region. As at January 2013, the Province of Treviso totaled approximately 881,000 inhabitants. Treviso stands at the confluence of the rivers Botteniga and Sile, approximately 35km north of Venice, 93km east of Vicenza and 65km north-east of Padua. The city is situated some 15km south-west from the right bank of the Piave River, on the plain between the Gulf of Venice and the Alps.

The local economy is characterised by small-medium sized industries and activities connected to agriculture and wine production (Prosecco).

The property is located in the semi-central area of Treviso, in Via Sante Zenon n.7, north-west from the city centre. The micro area is characterised by the presence of average-quality family villas and residential buildings constructed mainly in the ‘60s and the ‘70s, and some of more recent development. The villas are constructed on two above ground floors, and the residential buildings vary in height, from three to nine floors above ground. Several industrial buildings are also present south from Strada Feltrina.

11.2 Accessibility

Road Treviso is reachable via the Highway A27 Venezia–Belluno and is served by two exits Treviso Nord and Treviso Sud, which are situated approximately 9km and 11.5km away from the property. The property is easily reachable through Via Sante Zenon which is connected to Via Feltrina, one of the city’s main roads.

Rail The railway station Treviso Centrale is situated approximately 3km east of the subject property; the station is served by railway lines Venezia-Udine, Montebelluna-Treviso, Vicenza-Treviso and Treviso-Portogruaro

Public Transport Treviso is well served by the public transport; urban bus lines no.20 and no.21 serving Via Feltrina; the bus station is approximately 300m from the property.

Air The nearest airport is Treviso Airport at about 5.3km from the subject property, following by Venice Marco Polo Airport and Ronchi dei Legionari Airport which are about 32km and 127km from the subject property.

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11.3 Site and Property Description Site Description and Accessibility The property under analysis is a stand-alone building developed on an irregular shaped land plot. The site is bounded by Via Sante Zenon and Vicolo Feltrina to the west, a water flow and Via Stefanini and Third Party properties to the east, Strada Feltrina to the south and by green area to the north. The site is entirely fenced. The site is accessible by two entrances; the main entrance is positioned onto Via Sante Zenon and the secondary entrance onto Strada Feltrina; this last one is not being used. Both entrances are both vehicular and pedestrian.

Property Description The subject property is a stand-alone complex composed of two interconnected buildings developed in different periods. The complex totals a gross area of 7,821sq m; the spaces are dedicated to office space and to telephone exchange. The older portion is positioned on the southern side of the site; it presents a rectangular layout and is developed on two floors above ground. The more recent portion is adjacent to the northern side of the original building, it presents an “L” shape and is developed on three floors above ground. The two portions are connected on the first floor, while on the ground floor are separated by a passageway from where some technical rooms are accessible. The property has reinforced concrete frame structure and flat roof finished with tinplate elements. The façades are partially glazed and partially plastered.

The office space presents an open layout on the first floor and traditional layout on the second floor. The office spaces on both levels are equipped with floating floor and suspended ceilings. The finishes include floor covered with marble (lobbies and staircase), with ceramic tiles (toilets and technical rooms), and PVC (office and data rooms). The spaces are equipped with perimeter fancoils and ventilation system anchored to the ceiling in data rooms and traditional radiators positioned in the toilets. The lighting is provided by recessed and anchored lighting elements. The vertical connection is guaranteed by:

. One lift positioned in the more recently constructed building . Two staircases, one per each building The property is equipped with 15 entrances, out of which nine positioned on the eastern side, four on the western side and the remaining two on northern and southern sides respectively. A covered emergency exit is positioned on the western side of the property.

External Areas The external area is dedicated to vehicular circulation and parking spaces (in the number of 57) and to landscaped area. The floor around the property is finished in asphalt and concrete, while the southern side of the plot is finished with grass pavers.

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11.4 State of Repairs We inspected the property on 16 June 2014. Based on a purely visual inspection, it is our opinion that overall state of repairs of the property is good, showing usual signs of wear and tear.

11.5 Accommodation For the purposes of this valuation we have adopted the following Gross Floor Areas (GFA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried.

Technical External External External Office Technological Hor. Con. Archives Vert. Con Total F Rooms (sq Circulation Area (sq Parking (sq m) Room (sq m) (sq m) (sq m) (sq m) (sq m) m) (sq m) m) (sq m)

G 244 762 13 41 54 68 1,978 789 2,076 6,025

1 515 684 54 1,253

2 374 140 29 543

Tot. 1,133 1,586 13 41 137 68 1,978 789 2,076 7,821

The property totals a GFA of 7,821sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 2,773 sq m. The GLA adopted includes the areas referred to in the table above as: Office, Technological Rooms, Horizontal connections, and archives. The GLA does not include the areas identified as: technical rooms, vertical circulation, external circulation, and external area. The GLA does not include the area for the parking facilities (2,076sq m) as being valued on number of parking space basis and not on a square meter basis in number of 57 surface car parking spaces.

Commentary The TDD report provided reports a GFA of 8,279 sq m. If compared to the GFA above reported (7,821 sq m) highlights minor difference +5.9%.

The TDD Report does not provide the area split per use, such as: office, archives, vertical circulation, horizontal circulation, etc. therefore for the purposes of this valuation we have relied on the areas contained within the IM. We highlight that, it is our understanding that the for the purposes of the TDD, has not been performed a check measurement on site nor on property plans therefore the discrepancy could be due to the difference source of information used for the preparation of the IM and of the TDD report.

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11.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, exception made for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . The only material employed on site is the gasoline in service of the electrical generator. This is stored in three underground tanks.

Soil, Subsoil and Groundwater . The EDD reports that, in 2003 analysis was carried out on the micro samplings to identify the presence of deleterious materials, around the area where underground tanks were positioned. The results were compared with the limits set by Law for industrial/commercial sites and they do not exceed the Law limits.

. The EDD underlines that two underground tanks (currently disused) were not sealed that could leak heavy hydrocarbons. It is important to keep under control the maintenance of the underground tank through a leak tightness test. In case of negative results the EDD advise to conduct soil sampling. The EDD states that was never been done any underground water sampling. . The EDD underlines that the presence of filling material must be properly taken into account during any intervention that might involve excavation works and earth movement. The EDDR advises to analyse the landfill quality in case excavation or earth movement occurs.

Atmospheric Emission . The electrical generators’ setup and conduction booklet needs to be retrieved.

Water Discharge . The EDD underline that during the inspection it was not observed the connection to the public sewage system. It is necessary to retrieve the sewage connection to the public sewage system permit documentation.

Electromagnetic Field . The EDD recommends to proceed with the measurement of the electromagnetic field inside the technical rooms and near the antenna on the roof top in order to assess the levels of non-ionizing electromagnetic radiation.

Pathogens . On site sanitary conditions fully observe the standards required by the current legislation. It should be noted that no documentation on the implementation of measures to sanitise the AHU ducts has been found. It is required to recover the documentation, or in the absence to design a specific sanitation program for the air ducts. The EDD report quantifies and an amount equal to €22,000 for the costs related to necessary verification e/o administrative costs of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

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Commentary We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material with the property, therefore we have relied on the findings of the DRR analysis.

11.7 Cadastral Data Based on the information reported in the TDD Report the property under analysis is registered as follows:

Building Registry of the Municipality of Treviso

Sheet N. Parcels/Maps N: Sub N. Floors Category 1 278 4 G-1st -2nd D/1

Land Registry of the Municipality of Treviso

Sheet Parcels Category Site Area 19 278 and 1083 Urban entity n.a.

Commentary The TDD Report highlights that the cadastral documentation is not compliant with the object built. For the purposes of this valuation we have assumed that the cadastral documentation of the building will be amended prior to the sale of the property and therefore no related risks were taken into account in our analysis.

11.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below: . The CDU made available is dated 15/04/2005 (no.129) and states that the property under analysis and external area fall within the area zoned as: − Special Area F6 (“F6 - Attrezzature Specialistiche”) ruled by the Art. 66 and 73 of the technical rules (NTA). . From the analysis of the documentation available on line of the Town Planning Tool in force (PRG) the property results to be falling within the area zoned as follows: − Special Area with Public Use (are allowed intervention made by public subjects, or by private subject leads by public aim or firms that provide public services); − Destination of use allowed: motorway services, airport services, military activities, electrical warehouse (with a component of office use), bus depot, jail, cemetery, telecommunications plant and equipment (with a component storage and office use).

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. In consideration of the functional area in which the asset is located, the areas of the property can be considered as “standards” – areas within the municipality dedicated to public structures of public interest. The areas that have been calculated as standards cannot be dedicated to other uses as for public use. Therefore in case it is wished to change the use of the building, it will be necessary to change the contents of the PRG and it would become necessary to find other surfaces within the municipality area to be destined as standards in exchange;

. In addition, it has to be also verified if part of the parcel no.1083, falls within public viability to be given to the local Public Administration.

The present valuation is based on the assumption that the property is used in compliance with the town-planning regulation and that the current use of the property (technical rooms) is compliant with the planning tool in place. Moreover, the TDD highlight that the documentation related to the building permits is incomplete (drawings). For the purposes of this valuation we have assumed that all relevant missing building permits were regularly requested and granted by the Local Authority and related costs dully paid, and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated to the this aspects.

11.9 Building Certifications

CPI – Fire Prevention Certificate The building benefits of a CPI for activity n. 091 issued to Telecom Italia Spa and valid until 02/02/2015. The TDD highlights that:

. It is necessary to obtain the project drawings approved by Fire Brigade and the related certification attached to the CPI application as these documents are necessary for future renewals of the CPI.

Fitness for Use Certificate The building benefits of a fitness for use certificate (“Licenza di Occupazione”) dated 14/07/1977 n.6098 and for a building portion (“Certificato di Agibilità di porzione di immobile”) dated 21/09/2009 n. 63431 for industrial use.

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11.10 Annual Non-recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €15,711 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance - The All Risk Policy is paid The IM by the Tenant. Property 1% on the gross rent This amount represents the JLL Estimate Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves n.a. The Extraordinary The IM Maintenance is carried out and sustained by the tenant. Service Charges €30/sq m To be applied to the vacant JLL Estimate spaces.

11.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis. Easements The TDD reports the presence of the following documentation: . The regional board provision (“Provvedimento del presidente della Giunta Regionale”) relate to the landscape protection constraint (“Vincolo di protezione delle bellezze naturali”). The DDT advices to investigate on the nature of the mentioned constraint.

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. Restriction of Use established by the Deed no. 24.178/14223 dated 22/03/1971: the purchaser must keep the building in a use related to the purchaser activity. The TDD advice to investigate if the restriction is currently in place. For further information, please refer to the TDD report. Commentary For the purposes of this valuation analysis we have assumed the subject property to be free from any onerous or unusual outgoings, covenants and/or restrictions, general or specific ground lease conditions, or other restrictions or rights of Third Parties that might limit the marketability of the property.

11.12 Tenancy At the valuation date, the property is fully let to Telecom Italia Spa.The main contractual details were extrapolated from the IM and are summarised below:

Lease Dates & Break Options

Lease 2nd LT Break Tenant Lease Start 1 LT Expiry Notes length Expiry Option Telecom Italia 01/11/2002 21+6 30/102021 30/10/2027 None -

Passing Rent, Step Rents and Headline Rent

Passing Tenant Rent Telecom Italia €289,182

Rent revision & Indexation

Tenant ISTAT Indexation % Telecom Italia 100%

Based on the information contained within the TDD report, we report that:

. The agreement foresees that, both the ordinary and extraordinary maintenance activities fall under the tenant's responsibilities.

11.13 Local Market Treviso is a small sized regional office market. The city’s economy is centred on the industrial sector rather than on the services. As in other regional markets the local market is mainly dominated by local players, public playersand local banks.

Supply The supply is mainly represented by small sized office buildings or office portions. Being a very local and opaque market there is no available information on the existing stock and on its quality.

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Completion and plans The information publicly available as today does not highlight any major development/redevelopments in the urban area of Treviso. The development sector is not very dynamic for office premises.

Rents The often blurred boundaries between the letting offer, alongside a high incidence of owner-occupation, are likely to result in a volatile office market in which asking and actual rents are highly variable. Rental values varies within a wide range depending on the unit size (on average small 100sq m - 250sq m) and on their location. Professionals and private practices, the most active players of the local market are focused on the city centre locations where prime rent can reach up to €200/sq m for portions of good quality. The local market practice for TI’s is uncertain.

Letting Transactions We report below a selection of the results of the market enquiries carried out in terms of asking rents in the area of reference for pure offices. We deem appropriate to bring to the Client’s attention that there is no information available for comparable leasing transactions concluded in the area of interest.

Area Asking Rent Adress Sub-Area Quality (sq m) (€/sq m) - Centre 630 €190 Very Good - Periphery 129 €144 New

- Semicentre 384 €144 Good

11.14 Market Rent The Market Rent takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be €115 for the office use, €80 for the technological rooms and €200 p.a for each surface car parking space.

The estimated Market Rent has been weighted according to use as follows: . Technological Rooms: 100% . Office: 100%

. Storages: 33% . Horizontal Circulation: 100% . Technical Rooms: 0%

. External Area: 0% . External Circulation: 0% . Vertical Circulation: 0%

. The car parking spaces have been valued on a number of parking space bases.

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The total Market Rent is of €271,561 and compared to the PR as at the valuation date of €289,182 shows a slight over-rented situation of approx. 6.50%.

Marketing Assumptions Our Market Rent estimate also considers the following marketing assumptions:

. Letting Void (future leases): 18 months . Rent Free period (future leases): 12 months . Tenant Improvement’s (capital €115/sq m (equal to 12 months of rent) contribution on future leases):

Comments Our market analysis has not identified comparables for similar properties within an adequate timeframe. The adopted Market Rent represents a marked discount for the current use of the space (technological) and is largely in line with the rent paid by the tenant in similar regional markets.

11.15 Future Income Performance We are of the opinion that the building is currently slightly over-rented therefore the present valuation assumes that the Tenant at the first lease term expiry (30/11/2021) will renegotiate its lease at market rent by us estimated, also in consideration of the specialisation of the property (CED). We highlight that the ability to generate future income would be limited and based on an important refurbishment of the property. In the event that the tenant should opt for the property release due to non-real estate related drivers (i.e. business activity) the property will be suitable for a redevelopment subject to verification with the Local Authority of its planning use.

11.16 Valuation Data The DCF analysis is based on the following parameters:

Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date Gross Rent as at the Valuation Date: €289,182 Market Rent: €271,561 Letting Void (future vacancy) 18 months Rent Free period (future vacancy): 12 months Rent Free period (current lease at 0 months renegotiation) Tenant Improvements (Capital €115/sq m (equal to 12 months of rent) contribution future leases ):

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Tenant Improvements (current lease None at renegotiation) Non recoverable costs: . Property tax (IMU): €15,711p.a. . Building Management: 1% on the gross rent . Service Charges: €30/sq m (applicable only for vacant spaces) . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent. . No Building Insurance and Capital Expenditure has been taken into account in our analysis as being paid by the Tenant. Gross Initial Yield: 8.26% Net Initial Yield: 7.30% Gross Exit Yield: 8.10% Net Exit Yield: 7.40% Equivalent Yield: 7.15% IRR (unleveraged): 8.50%

Comments The present valuation reflects a gross yield in line with the registered yield level for transactions in regional markets (please refer to Section n. 4.5) and the market appeal represented by the tenant’s covenant. There have not been any similar recent transactions. The most recent one refers to a Telecom Building centrally located in Milan at a gross yield of 7.75%-7.80% in Q1 2012; the reflected 65-70bp of difference should be considered bearing in mind that in Q1 2012 market conditions were far less attractive with 2012 registering as the lowest investment volume of the last decade.

11.17 SWOT ANALYSIS Strengths . The property is let to a prime tenant with a lease contract expiring at the end of 2021 . The Tenant is responsible for all extraordinary costs

Opportunities . In-town location within a mixed use area and residential, however, villas are situated in the immediate surroundings . Potential redevelopment of the property for residential use (subject to verification with the Local Authority) if vacated by the current tenant

Weakness . The property is not suitable for reletting if it should be vacated by the current Tenant at the first lease expiry in consideration of its specialised configuration

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Threats . The potential reletting to the property will be subject to heavy refurbishment costs to make it suitable for a generic user . The planning procedure to secure a change of use of the property (from industrial to residential), if it should be vacated by the Tenant, will foresee the payment of planning costs whose amount cannot be foreseen to date

11.18 Alternative use Based on the characteristics of the immediate surrounding area, which is residential, and of the property quality and lettability it is our opinion that the property would be suitable for a redevelopment for residential use. The current planning use of the property would not allow a residential redevelopment, however it is reasonable to assume that an industrial redevelopment would not be favoured by the Local Authority.

11.19 Saleability The property would appeal local and private investors in consideration of its investment volume, of the tenant’s covenant and of the secured income flow. On the other hand, due to the limited investment volume and its location, it would be of interest only for a limited number of institutional players having secondary markets as an investment target.

11.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property:

. The present analysis is based on the gross built area GLA of the asset of 2,773sq m . We have considered an average construction cost per sq m based on market benchmarks of approximately €1,000/sq m on GLA reflecting an overall construction cost of €2,773,000 . We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution/waste disposal (€1.65/sq m on the GBA of 2,978) Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs. On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approximately €3,160,000 (rounded) reflecting a cost of €1,140/sq m of GLA.

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11.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is: €271,600 (rounded) (Two Hundred and Seventy One Thousand Euros)

11.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows: €3,500,000

(Three Million Five Hundred Thousand Euros)

(Three Million Six Hundred and Seventy Five Thousand Euros

138 Appendix 1

Location

Macro Location

Via Sante Zanon 7, Treviso

Micro Location

Via Sante Zanon 7, Treviso

Appendix 2

Photos

Via Sante Zanon 7, Treviso

External Pictures

Via Sante Zanon 7, Treviso

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Treviso,7,Via Sante Zanon,Treviso File/Ref No 7

Gross Valuation €3,686,757 Capital Costs -€200 Net Value Before Fees €3,686,557

Less Stamp Duty @4.00% of Net Value -€140,440 Agents Fee @0.75% of Net Value -€26,333 Legal Fee @0.25% of Net Value -€8,778

Net Valuation €3,511,007 Say €3,500,000

Equivalent Yield 6.8479% True Equivalent Yield 7.1512% Initial Yield (Deemed) 7.3000% Initial Yield (Contracted) 7.3000% Reversion Yield 6.8292%

Total Contracted Rent €289,182 Total Current Rent €289,182 Total Rental Value €271,561 No. Tenants 1 Capital value per m² €608.27

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €289,182 €269,133 7.3000 % 7.6456 % 31-Oct-2021 €271,561 €251,777 6.8292 % 7.1310 %

Yields based on €3,686,757

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold Telecom Italia S.p.A. NA 31-Oct-2027 €289,182 Unrounded €271,561 All Units Initial Yield 7.300 €3,686,757 Total €289,182 €271,561 €3,686,757

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Treviso,7,Via Sante Zanon,Treviso,Treviso DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €3,675,000 Geared IRR 8.5366% Start: Acquisition Fee @ 5.0000% -€175,000 Ungeared IRR 8.5366% Start: Net Value €3,500,000

Exit Results

Exit: Gross Value €3,977,718 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €3,977,718 Exit: Vendors Fees -€39,777 Exit: Rent adjustments €0 Exit: Adjusted Net Value €3,937,941

Exit: Rent payable (gross) €317,807 Exit: Market rent (gross) €321,557 Exit: Rent receivable (net) €294,351 Exit: Market rent (net) €298,101 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 7.4000% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 7.4000% (Net Rent / Net Value X 100) Exit: Net Revn Yield 7.4943% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 7.4943% (Net ERV / Net Value X 100) 8.0840% (Gross ERV / Gross Value X 100) 8.0840% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 6.9912% Exit: Vendors Fees 1.0000% (-€39,777)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€3,607,917 €72,296 €0 €271,561 -€5,212 €0 1.0000 -€3,608,331 2 05-Sep-2014 04-Dec-2014 €67,595 €72,615 €0 €271,561 -€5,020 €0 0.9736 €65,810 3 05-Dec-2014 04-Mar-2015 €67,742 €72,777 €0 €271,561 -€5,035 €0 0.9536 €64,600 4 05-Mar-2015 04-Jun-2015 €67,732 €72,777 €0 €272,089 -€5,045 €0 0.9343 €63,279 5 05-Jun-2015 04-Sep-2015 €67,721 €72,777 €0 €272,834 -€5,056 €0 0.9156 €62,004 6 05-Sep-2015 04-Dec-2015 €68,217 €73,284 €0 €273,581 -€5,067 €0 0.8970 €61,192

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Treviso,7,Via Sante Zanon,Treviso,Treviso DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €68,452 €73,541 €0 €274,330 -€5,089 €0 0.8786 €60,142 8 05-Mar-2016 04-Jun-2016 €68,437 €73,541 €0 €275,371 -€5,104 €0 0.8608 €58,910 9 05-Jun-2016 04-Sep-2016 €68,420 €73,541 €0 €276,534 -€5,121 €0 0.8436 €57,718 10 05-Sep-2016 04-Dec-2016 €69,183 €74,321 €0 €277,702 -€5,138 €0 0.8265 €57,179 11 05-Dec-2016 04-Mar-2017 €69,545 €74,718 €0 €278,875 -€5,173 €0 0.8095 €56,297 12 05-Mar-2017 04-Jun-2017 €69,526 €74,718 €0 €280,199 -€5,192 €0 0.7931 €55,139 13 05-Jun-2017 04-Sep-2017 €69,506 €74,718 €0 €281,589 -€5,212 €0 0.7772 €54,022 14 05-Sep-2017 04-Dec-2017 €70,451 €75,684 €0 €282,987 -€5,233 €0 0.7615 €53,647 15 05-Dec-2017 04-Mar-2018 €70,900 €76,175 €0 €284,391 -€5,275 €0 0.7459 €52,881 16 05-Mar-2018 04-Jun-2018 €70,880 €76,175 €0 €285,753 -€5,295 €0 0.7307 €51,792 17 05-Jun-2018 04-Sep-2018 €70,861 €76,175 €0 €287,101 -€5,314 €0 0.7161 €50,743 18 05-Sep-2018 04-Dec-2018 €71,809 €77,143 €0 €288,455 -€5,334 €0 0.7016 €50,380 19 05-Dec-2018 04-Mar-2019 €72,259 €77,635 €0 €289,815 -€5,376 €0 0.6872 €49,654 20 05-Mar-2019 04-Jun-2019 €72,242 €77,635 €0 €290,979 -€5,392 €0 0.6732 €48,636 21 05-Jun-2019 04-Sep-2019 €72,227 €77,635 €0 €292,064 -€5,408 €0 0.6598 €47,653 22 05-Sep-2019 04-Dec-2019 €73,017 €78,441 €0 €293,153 -€5,424 €0 0.6464 €47,198 23 05-Dec-2019 04-Mar-2020 €73,393 €78,851 €0 €294,246 -€5,458 €0 0.6331 €46,468 24 05-Mar-2020 04-Jun-2020 €73,373 €78,851 €0 €295,602 -€5,478 €0 0.6203 €45,513 25 05-Jun-2020 04-Sep-2020 €73,352 €78,851 €0 €297,069 -€5,499 €0 0.6079 €44,590 26 05-Sep-2020 04-Dec-2020 €74,332 €79,853 €0 €298,543 -€5,521 €0 0.5956 €44,270 27 05-Dec-2020 04-Mar-2021 €74,797 €80,362 €0 €300,025 -€5,565 €0 0.5834 €43,633 28 05-Mar-2021 04-Jun-2021 €74,776 €80,362 €0 €301,514 -€5,586 €0 0.5715 €42,735 29 05-Jun-2021 04-Sep-2021 €74,754 €80,362 €0 €303,010 -€5,608 €0 0.5601 €41,868 30 05-Sep-2021 04-Dec-2021 €72,036 €77,666 €0 €304,514 -€5,630 €0 0.5487 €39,527 31 05-Dec-2021 04-Mar-2022 €70,770 €76,362 €0 €306,025 -€5,592 €0 0.5374 €38,034 32 05-Mar-2022 04-Jun-2022 €70,748 €76,362 €0 €307,544 -€5,614 €0 0.5265 €37,251 33 05-Jun-2022 04-Sep-2022 €70,726 €76,362 €0 €309,070 -€5,636 €0 0.5160 €36,495 34 05-Sep-2022 04-Dec-2022 €71,734 €77,393 €0 €310,604 -€5,658 €0 0.5056 €36,266 35 05-Dec-2022 04-Mar-2023 €72,188 €77,892 €0 €312,146 -€5,704 €0 0.4952 €35,746 36 05-Mar-2023 04-Jun-2023 €72,165 €77,892 €0 €313,695 -€5,726 €0 0.4851 €35,010 37 05-Jun-2023 04-Sep-2023 €72,143 €77,892 €0 €315,252 -€5,749 €0 0.4754 €34,299 38 05-Sep-2023 04-Dec-2023 €73,171 €78,943 €0 €316,816 -€5,772 €0 0.4658 €34,083 39 05-Dec-2023 04-Mar-2024 €73,634 €79,452 €0 €318,389 -€5,818 €0 0.4562 €33,594 40 05-Mar-2024 04-Jun-2024 €73,611 €79,452 €0 €319,969 -€5,841 €0 0.4470 €32,903 41 05-Jun-2024 Final period €3,937,941 €321,557 0.4411 €1,737,162 PV factor is averaged over multi-discount dates. NPV Balance -€8

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Treviso,7,Via Sante Zanon,Treviso,Treviso DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity Telecom Italia S.p.A. €317,807 €294,351 €321,557 €298,101 €3,977,718 100.00%

Sum of tenant gross values €317,807 €294,351 €321,557 €298,101 €3,977,718 100.00%

Property Report

Trieste, Via Giovanni Verga 5

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12 Trieste, Via Giovanni Verga 5

12.1 Location The property is situated in Trieste, the capital of the Friuli Venezia-Giulia Region, located at the north-eastern extremity of the Italian territory, next to the Slovenian border. The Province of Trieste is stretched long being bordered by the Trieste Gulf to the west and the Adriatic Alps to the northeast, which is the main reason for its dense population. As at 1 January 2013 Trieste had a residential population of approximately 201,000. The city’s geographical position has rendered it one of Italy’s principal ports, furthermore given its border to the east with Slovenia, it is a major interchange for trade and commerce. Trieste is seat of the laboratories of Alcatel and Telit (telecommunication). The food sector is represented by important companies such as Illy (caffè) and Dreher breweries (a Hungarian beer brewery). 90% of all industrial companies are located in the industrial zone Valli di Zaule and delle Noghere, Muggia and San Dorligo della Valle/Dolina. Trieste is well known for its advanced science research sector; furthermore, it accommodates insurance companies, founded in Trieste during the Habsburg period such as Generali, SASA Assicurazioni, RAS and Lloyd Adriatico (today Allianz Italia SpA).The city is well connected due to motorways, railways and air transport systems; the city benefits from A4 motorway connection (Trieste–Milan–Turin) as well as a Eurostar link and the airport of Ronchi dei Legionari. The property is located in the north-eastern part of the city, in the district named Guardiella, approximately five minutes (drive time) from the city centre. The area is characterised by the presence of the shopping mall Il Giulia and the University of Trieste. The immediate surroundings are characterised by the presence of residential buildings built mainly in the ‘60s and the ‘70s, developed on 5-8 floors above ground and some family villas.

12.2 Accessibility Road The property is easily accessible by Via Giovanni Verga, a road delimiting the public park San Giovanni and connecting it to Via Giulia, one of the city’s main roads. The nearest motorway exit is Basovizza-Padriciano, part of the Highway A4 (Turin - Trieste) and is approximately 7km from the property. It is reachable through the SS14 – Strada per Basovizza. The aforementioned SS14 is an important road connecting Trieste to two towns positioned on the border with Slovenia, Pesek (10km) and Fernetti (13km), passing through Basovizza to the north and Villa Opicina to the Ssuth.

Rail The Trieste railway station (Trieste Centrale) is positioned approximately 3km from the asset. It is the most eastern railway stop in Italy and is well connected to the national railway network.

Public Transport With reference to the public transport supply, the property benefits of a good location being it close to Via Giulia which is served by several bus lines. The bus stop is approx. 250m from the property.

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Air The nearest airport is Ronchi dei Legionari Airport, located in Gorizia at about 45km from the property and is easily reachable through the Highway A4.

12.3 Site and Property Description Site Description and Accessibility The property under analysis is a building portion part of a stand-alone building developed on an irregular shaped land plot. The site is bounded by Via Giovanni Verga to the west and to the north and by Third Parties to the east and south. The site is entirely fenced. The site is accessible by two entrances, both positioned on Via Giovanni Verga. The main entrance, positioned to the east, is both vehicular and pedestrian and the secondary entrance, positioned to the north, is exclusively vehicular.

Property Description The subject property is an independent building part of a mixed-use stand-alone building totalling 2,610sq m. The property is entirely dedicated to telephone exchange, while the adjacent building hosts residential units. The property presents an irregular rectangular layout and is developed on four above ground floors and one underground floor. The underground level is dedicated to technical rooms, while the upper floors are dedicated to laboratories and data rooms and in a small portion to office space. The property has reinforced concrete frame structure; the rooftop is flat. All floors present a height of approximately 3.5m. The façade is finished with prefabricated panels covered with small ceramic tiles decoration; the window frames are made of aluminium. The spaces are not equipped with floating floor or with suspended ceilings except from one room on the third floor where suspended ceiling is present and is finished with tinplate. The finishes include floor covered with marble (entrance and staircase), with ceramic tiles (underground level and toilets), and PVC in the rest of the spaces. The spaces are equipped with traditional radiators which are not used; the office space is equipped with suspended air-conditioning system and the laboratories with a ventilation system. The lighting is provided mainly by recessed lighting elements. The spaces are equipped with traditional partitioning and the walls are plastered. The vertical connection is guaranteed by: . One goods lift serving all floors . One staircase serving all floors. The access to the property is granted through the main entrance positioned on the eastern side of the building. A secondary entrance, positioned on the western side, grants access to the underground level through an external staircase. The external area is dedicated to vehicular and parking spaces (in the number of 8) positioned on the eastern and northern sides, and to landscaped area. The floor presents concrete finishing.

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12.4 State of Repairs We inspected the property on16 June 2014. Based on a purely visual inspection, it is our opinion that overall state of repairs of the property is good, showing usual signs of wear and tear.

12.5 Accommodation For the purposes of this valuation we have adopted the following Gross Floor Areas (GFA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried.

Technical External External External Vertical Technological Terraces Total (sq Floor Rooms (sq Parking (sq Circulation Area (sq Connections Room (sq m) (sq m) m) m) m) (sq m) m) (sq m)

-1 116 168 15 299

Ground 320 15 94 192 243 22 886

1 318 17 21 356

2 320 15 22 357

3 321 14 22 357

4 17 326 12 355

Total 1,395 246 326 94 192 243 114 2,610

The property totals a GFA of 2,610sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 1,395sq m. The GLA adopted includes the areas referred to in the table above as: Technological Rooms. The GLA does not include the areas identified as: technical rooms, terraces, vertical circulation, external area and circulation. The GLA does not include the area for the parking facilities (94²) as being valued on number of parking space basis and not on a square meter basis in number of 8 surface car parking spaces.

Commentary The TDD report provided reports a GFA of 2,917 sq m showing a discrepancy of +12% if compared to the GFA of 2,610sq m reported in the IM. The discrepancy is largely due to the external areas. With reference to the GLA, the GLA reported in the TDD report is of 1,610sq m, +15% if compared to the GLA by us adopted of 1,395sq m. The discrepancy is due to the fact that the TDD does not provide a detailed split of areas per use therefore the areas referred to as technological rooms (used as data centre) includes also the technical plants that for the purposes of this valuation have not been taken into account for the GLA counting. The TDD Report does not provide a detailed area split per use therefore our analysis is based on the gross areas reported within the IM. We highlight that, it is our understanding that the for the purposes of the TDD, has not been performed a check measurement on site nor on property plans therefore the discrepancy could be due to the difference source of information used for the preparation of the IM and of the TDD report.

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12.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, except for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . The only material employed on site is the gasoline in service of the electrical generator. This is stored in one underground tank.

Soil, Subsoil and Groundwater . It is important to keep under control the maintenance of the underground tank through a leak tightness test. In case of negative result, it is advisable to an environmental sampling (4-5m depth).

Atmospheric Emission . The electrical generators’ setup and conduction booklet needs to be retrieved.

Water Discharge . It is necessary to retrieve the sewage connection to the public sewage system permit documentation.

Asbestos (ACM) . The documentation in data room shows the presence of ACM and there is no evidence of its removal.

Electromagnetic Field . It is recommended to proceed with the measurement of the electromagnetic field inside the technical rooms (data centre and the electrical transformer) in order to assess the levels of non-ionizing electromagnetic radiation.

Ionizing Radiation: Radon . Given the presence of basement that can accommodate workers with potential interactions with radon released from the soil, it is suggested to proceed with a one year long monitoring campaign.

The EDD report quantifies and an amount equal to €30,700 for the costs related to necessary verification e/o administrative costs of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

Commentary

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We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material with the property, therefore we have relied on the findings of the DRR analysis.

12.7 Cadastral Data Based on the information reported in the TDD Report the property under analysis is registered as follows:

Building Registry of the Municipality of Trieste

Sheet N. Parcels/Maps N: Sub N. Floors Category 11 674/2 - S1-3 D/1

The property is also registered under the following Drawing Data (Dati Tavolati):

. P.T. 6171 di Guardiella, c.t.1°, part. n.274/2.

Commentary The TDD Report highlights that the documentation is incomplete. The asset seems to be correctly registered at the building registry, however ,the cadastral charts are incomplete. For the purposes of this valuation we have assumed that the missing documentation has been retrieved by the Vendor prior to the sale of the property.

12.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below: . The CDU made available is dated 08/03/2003 (Prot. Gen.05-40150) and states that the property under analysis falls within the area zoned as: − Special Area dedicated to infrastructural use of technical plants Z3 (Zona di Destinazione Speciale ad usi infrastrutturali Z3 impianti tecnologici) ruled by the Art. 5.17.13-16 of the technical rules (NTA) – Drawing D; − Within this area is permitted the realization of technical plants.

. From the analysis of the documentation available on line of the Town Planning Tool in force (PRG) the property results to be falling within the area zoned as:

− Public Area – according to the PRG, its General variant 118 that reviews the restriction of public properties, A5 – table no.2.

. It is necessary to perform an in-depth analysis regarding the exact use and planning zoning of the site as according to one table of the PRG results to be defined as for public use

. In consideration of the functional area in which the asset is located, the areas of the property can be considered as “standards” – areas within the municipality dedicated to public structures of public interest. The areas that have been calculated as standards cannot be dedicated to other uses as for public use. Therefore in case in case it is wished to change the use of the building, it will be necessary

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to change the contents of the PRG and it would become necessary to fins other surface within the municipality area to be destined as standards in exchange.

. In addition, it has to be also verified if the restriction deriving from Law. 246 dated 05/03/1963 art. 15, letter d), restricting the use of the land parcel 674/2 to industrial use, is still valid.

The present valuation is based on the assumption that the property is used in compliance with the town-planning regulation and that the current use of the property (technical rooms) is compliant with the planning tool in place being already authorised by the former PGR and preserves their destination. Moreover, the TDD highlight that the documentation related to the building permits is incomplete. For the purposes of this valuation we have assumed that all relevant missing building permits were regularly requested and granted by the Local Authority and related costs dully paid, and that all irregularities (if any) had been rectified, therefore in forming our opinion of the property value we have not considered any risks or costs associated to the this aspects.

12.9 Building Certifications CPI – Fire Prevention Certificate The building benefits of a CPI for activity no. 064 (technical plants) issued to Telecom Italia Spa and valid until 21/01/2015.

The TDD highlights that: . It is necessary to obtain the plans approved by the Local Authority together with all certification as these documents are necessary for future renewals of the CPI.

Fitness for Use Cetificate According to the TDD report, the Fitness for Use certificate was requested in 1998 (Prot. no, 29197 dated 27/11/1998) and the related procedure seems to be concluded in 2001 (Document issued by The Municipality of Trieste on 08/10/2001) nonetheless the copy of the Certificate has not been made available for the purposes of the TDD.

Commentary For the purposes of this valuation, based on the findings of the TDD, we assumed that the building benefits from a regular Fitness for Use Certificate.

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12.10 Annual Non-recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €6,397 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance €0 The All Risk Policy is paid The IM by the Tenant. Property 1% on the gross rent. This amount represents the The IM Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves n.a. The Extraordinary The IM Maintenance is carried out and sustained by the tenant. Service Charges €30/sq m To be applied to the vacant JLL Estimate spaces.

12.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis. Easements The TDD report states that the property is subject to the following easements:

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. Mutual Right of Way between land parcels 674/2 and 674/1 established by the Deed n. 76871/11947 dated 31/05/1972 . Restriction of Use related to parcel n. 674/2 established by the Deed n. 76872/11948 dated 31/05/1972 For further information, please refer to the TDD report. Commentary For the purposes of this valuation analysis we have assumed the subject property to be free from any onerous or unusual outgoings, covenants and/or restrictions, general or specific ground lease conditions, or other restrictions or rights of Third Parties that might limit the marketability of the property.

12.12 Tenancy At the valuation date, the property is fully let to Telecom Italia Spa.The main contractual details were extrapolated from the IM and are summarised below:

Lease Dates & Break Options

Lease 2nd LT Break Tenant Lease Start 1 LT Expiry Notes length Expiry Option Not foreseen - Telecom Italia 01/12/2000 21+6 30/11/2021 30/11/2027 in the 1st LT

Passing Rent, Step Rents and Headline Rent

Passing Date Step Date Step Tenant Step 1 Step 2 HR Date HR Rent 1 2 Telecom Italia €119,658 ------

Rent revision & Indexation

Tenant ISTAT Indexation % Telecom Italia 100%

Based on the information contained within the TDD report, we report that:

. The agreement foresees that, both the ordinary and extraordinary maintenance activities fall under the tenant's responsibilities.

12.13 Local Market Trieste is a small sized regional office market. The city’s economy is centred on the industrial sector rather than on the services. As in other regional markets the local market is mainly dominated by local players. However, this city is also the HQ of several Insurance Companies such as: Generali, Sasa Assicurazioni, Ras e Lyod Adriatic.

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Supply The supply is mainly represented by small sized office building or office portions (exception made for the HQ of the mentioned companies). Being a very local and opaque market there is no available information on the existing stock and on its quality.

Completion and plans The information publicly available as today does not highlight any major development/redevelopments in the urban area of Trieste. The development sector is not very dynamic for office premises.

Rents The often blurred boundaries between the offer, alongside a high incidence of owner-occupation, are likely to result in a volatile office market in which asking and actual rents are highly variable. Rental values varies within a wide range depending on the unit size (on average small 100sq m - 250sq m) and on their location. Professionals and private practices, the most active players of the local market are focused on the city centre locations where prime rent can reach up to €110/sq m for small portions of good quality. The local market practice for TI’s is uncertain.

Area Asking Rent Adress Sub-Area Quality (sq m) (€/sq m) Via San Francesco Semi-Centre 130 €88 Average Via Lazzaretto Vecchio Centre 70 €111 Good

Piazza Venezia Centre 150 €120 Very Good

12.14 Market Rent The Market Rent takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be of €80/sq m for the technological rooms and of €500 p.a for each surface car parking space. The estimated Market Rent has been weighted according to use as follows: . Technological Rooms: 100%

. Technical Rooms: 0% . Terraces: 0% . External Circulation: 0%

. External Area: 0%

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. Vertical Circulation: 0% . The car parking spaces have been valued on a number of parking space bases. The total Market Rent is of €115,600 and compared to the PR as at the valuation date of €119,658 shows a slight over-rented situation of approx. 3.50%

Marketing Assumptions Our Market Rent estimate also considers the following marketing assumptions: . Letting Void (future leases): 18 months . Rent Free period (future leases): 12 months

. Tenant Improvement’s (capital €80/sq m (equal to 12 months of rent) contribution on future leases):

Comments Our market analysis has not identified comparables of similar properties within an adequate timeframe. The adopted Market Rent represents a slight discount for the current use of the spaces (technological) but it is largely in line with the rent paid by the tenant in similar regional markets.

12.15 Future Income Performance We are of the opinion that the building is currently slightly over-rented market therefore the present valuation assumes that the Tenant at the first lease term expiry (30/11/2021) will renegotiate its lease at market rent by us estimated, also in consideration of the property level of specialisation (CED). We highlight that the ability to generate future income for a different use would be fairly limited given its age, functionality and flexibility without carrying out important refurbishment works; the costs to be sustained might not be balanced by the potential income. This potential constrain has not be accounted as a risk in consideration of the letting situation and current lease length. In the event that the tenant should opt for the property release due to non-real estate related drivers (i.e. business activity), the property would be suitable for a redevelopment subject to verification with the Local Authority.

12.16 Valuation Data The DCF analysis is based on the following parameters: Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date Gross Rent as at the Valuation Date: €119,658 Market Rent: €115,600 Letting Void (future vacancy) 18 months Rent Free period (future vacancy): 12 months

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Rent Free period (current lease at 0 months renegotiation) Tenant Improvements (Capital €80 (equal to 12 months’ rent) contribution future leases ): Tenant Improvements (current lease None at renegotiation) Non recoverable costs: . Property tax (IMU): €6,397 p.a. . Building Management: 1% on the gross rent . Service Charges: €30/sq m (applicable only for vacant spaces . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent No Building Insurance and Capital Expenditure has been taken into account in our analysis as being paid by the Tenant. Gross Initial Yield: 8.43% Net Initial Yield: 7.50% Gross Exit Yield: 8.25% Net Exit Yield: 7.60% Equivalent Yield: 7.55% IRR (unleveraged): 8.90%

Comments The present valuation reflects a gross yield in line with the registered yield level for transactions in regional markets (please refer to Section n. 4.5) and the market appeal represented by the tenant’s covenant. There have not been any similar recent transactions. The most recent one refers to a Telecom Building centrally located in Milan at a gross yield of 7.75%-7.80% in Q1 2012; the reflected 65-70bp difference should be considered bearing in mind that in Q1 2012 market conditions were far less attractive with 2012 registering as the lowest investment volume of the last decade.

12.17 SWOT ANALYSIS Strengths . The property is let to a prime tenant with a lease contract expiring at the end of 2021 . The Tenant is responsible for all extraordinary costs

Opportunities . In-town location within a consolidated residential area . Potential redevelopment of the property for residential use (subject to verification with the Local Authority) if vacated by the current tenant

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Weakness . The property is not suitable for reletting if it should be vacated by the current Tenant at the first lease expiry in consideration of its specialised configuration

12.18 Alternative use Based on the characteristics of the surrounding area, which is mainly residential, and of the property quality and lettability it is our opinion that the property would be suitable for a redevelopment for residential use. The current planning use of the property would not allow a residential redevelopment, however it is reasonable to assume that an industrial redevelopment would not be favoured by the Local Authority.

12.19 Saleability The property would appeal to local and private investors in consideration of its investment volume, of the tenant’s covenant and of the secured income flow. On the other hand, due to the limited investment volume and its location, it would be of interest only for a limited number of institutional players having secondary markets as prime investment target.

12.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property: . The present analysis is based on the gross built area GLA of the asset of 1,395sq m.

. We have considered an average construction cost per sq m based on market benchmarks of approx. €1,000/sq m on GLA reflecting an overall construction cost of €1,395,000.

We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution/waste disposal (€2/sq m on the GBA of 2,081sq m). Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs. On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approx. €1,620,000 (rounded) reflecting a cost of €1,164/sq m of GLA.

Commentary

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We would like to bring to the Client’s attention that the above reported costs estimates should be considered as indicative, based on average parametric costs applicable for properties with similar characteristics to the property under analysis; if you wish for certainty in regarding the costs estimates, we would advise you to consult a cost consultant. With reference to the construction cost contribution, in absence of the information publicly available we have estimated said cost based on market benchmarks for similar locations. If you wish for certainty we advise to instruct a planning specialist to provide the fees estimate.

12.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is: €115,600 (rounded) (One Hundred Fifteen Thousand and Six Hundred Euros)

12.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows: €1,420,000

(One Million Four Hundred and Twenty Thousand Euros)

(One Million Five Hundred and Nine Thousand Euros

152 Appendix 1

Location

Macro Location

Via Giovanni Verga 5, Trieste

Micro Location

Via Giovanni Verga 5, Trieste

Appendix 2

Photos

Via Giovanni Verga 5, Trieste

External Pictures

Via Giovanni Verga 5, Trieste

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Trieste,5,Via Giovanni Verga,Trieste File/Ref No 8

Gross Valuation €1,486,215 Capital Costs -€200 Net Value Before Fees €1,486,015

Less Stamp Duty @4.00% of Net Value -€56,610 Agents Fee @0.75% of Net Value -€10,614 Legal Fee @0.25% of Net Value -€3,538

Net Valuation €1,415,252 Say €1,420,000

Equivalent Yield 7.2052% True Equivalent Yield 7.5417% Initial Yield (Deemed) 7.5000% Initial Yield (Contracted) 7.5000% Reversion Yield 7.2311%

Total Contracted Rent €119,658 Total Current Rent €119,658 Total Rental Value €115,600 No. Tenants 1 Capital value per m² €564.39

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €119,658 €111,466 7.5000 % 7.8652 % 31-Oct-2021 €115,600 €107,469 7.2311 % 7.5701 %

Yields based on €1,486,215

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold Telecom Italia S.p.A. NA 31-Oct-2027 €119,658 Unrounded €115,600 All Units Initial Yield 7.500 €1,486,215 Total €119,658 €115,600 €1,486,215

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Trieste,5,Via Giovanni Verga,Trieste,Trieste DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €1,491,000 Geared IRR 8.9309% Start: Acquisition Fee @ 5.0000% -€71,000 Ungeared IRR 8.9309% Start: Net Value €1,420,000

Exit Results

Exit: Gross Value €1,653,266 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €1,653,266 Exit: Vendors Fees -€16,533 Exit: Rent adjustments €0 Exit: Adjusted Net Value €1,636,734

Exit: Rent payable (gross) €135,287 Exit: Market rent (gross) €136,882 Exit: Rent receivable (net) €125,648 Exit: Market rent (net) €127,243 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 7.6000% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 7.6000% (Net Rent / Net Value X 100) Exit: Net Revn Yield 7.6965% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 7.6965% (Net ERV / Net Value X 100) 8.2795% (Gross ERV / Gross Value X 100) 8.2795% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 7.1781% Exit: Vendors Fees 1.0000% (-€16,533)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€1,463,333 €29,915 €0 €115,600 -€2,248 €0 1.0000 -€1,463,509 2 05-Sep-2014 04-Dec-2014 €27,995 €30,047 €0 €115,600 -€2,051 €0 0.9725 €27,225 3 05-Dec-2014 04-Mar-2015 €28,056 €30,114 €0 €115,600 -€2,057 €0 0.9517 €26,701 4 05-Mar-2015 04-Jun-2015 €28,052 €30,114 €0 €115,824 -€2,061 €0 0.9315 €26,131 5 05-Jun-2015 04-Sep-2015 €28,048 €30,114 €0 €116,142 -€2,066 €0 0.9121 €25,582 6 05-Sep-2015 04-Dec-2015 €28,253 €30,323 €0 €116,460 -€2,070 €0 0.8928 €25,224

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Trieste,5,Via Giovanni Verga,Trieste,Trieste DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €28,351 €30,430 €0 €116,779 -€2,079 €0 0.8737 €24,769 8 05-Mar-2016 04-Jun-2016 €28,344 €30,430 €0 €117,222 -€2,086 €0 0.8552 €24,240 9 05-Jun-2016 04-Sep-2016 €28,338 €30,430 €0 €117,717 -€2,092 €0 0.8373 €23,727 10 05-Sep-2016 04-Dec-2016 €28,653 €30,753 €0 €118,214 -€2,099 €0 0.8196 €23,484 11 05-Dec-2016 04-Mar-2017 €28,803 €30,917 €0 €118,713 -€2,114 €0 0.8020 €23,101 12 05-Mar-2017 04-Jun-2017 €28,795 €30,917 €0 €119,277 -€2,121 €0 0.7851 €22,606 13 05-Jun-2017 04-Sep-2017 €28,787 €30,917 €0 €119,869 -€2,130 €0 0.7687 €22,128 14 05-Sep-2017 04-Dec-2017 €29,178 €31,316 €0 €120,464 -€2,138 €0 0.7524 €21,954 15 05-Dec-2017 04-Mar-2018 €29,364 €31,520 €0 €121,061 -€2,155 €0 0.7363 €21,621 16 05-Mar-2018 04-Jun-2018 €29,356 €31,520 €0 €121,641 -€2,163 €0 0.7207 €21,157 17 05-Jun-2018 04-Sep-2018 €29,348 €31,520 €0 €122,215 -€2,171 €0 0.7057 €20,710 18 05-Sep-2018 04-Dec-2018 €29,741 €31,920 €0 €122,791 -€2,179 €0 0.6907 €20,543 19 05-Dec-2018 04-Mar-2019 €29,927 €32,124 €0 €123,370 -€2,196 €0 0.6759 €20,229 20 05-Mar-2019 04-Jun-2019 €29,920 €32,124 €0 €123,866 -€2,203 €0 0.6616 €19,796 21 05-Jun-2019 04-Sep-2019 €29,914 €32,124 €0 €124,328 -€2,210 €0 0.6478 €19,378 22 05-Sep-2019 04-Dec-2019 €30,241 €32,457 €0 €124,791 -€2,216 €0 0.6341 €19,175 23 05-Dec-2019 04-Mar-2020 €30,397 €32,627 €0 €125,257 -€2,230 €0 0.6205 €18,861 24 05-Mar-2020 04-Jun-2020 €30,389 €32,627 €0 €125,833 -€2,238 €0 0.6074 €18,457 25 05-Jun-2020 04-Sep-2020 €30,380 €32,627 €0 €126,458 -€2,247 €0 0.5947 €18,067 26 05-Sep-2020 04-Dec-2020 €30,786 €33,041 €0 €127,086 -€2,256 €0 0.5821 €17,921 27 05-Dec-2020 04-Mar-2021 €30,978 €33,252 €0 €127,716 -€2,274 €0 0.5697 €17,647 28 05-Mar-2021 04-Jun-2021 €30,969 €33,252 €0 €128,350 -€2,283 €0 0.5576 €17,268 29 05-Jun-2021 04-Sep-2021 €30,961 €33,252 €0 €128,987 -€2,291 €0 0.5459 €16,903 30 05-Sep-2021 04-Dec-2021 €30,449 €32,749 €0 €129,627 -€2,300 €0 0.5344 €16,272 31 05-Dec-2021 04-Mar-2022 €30,208 €32,506 €0 €130,271 -€2,298 €0 0.5229 €15,797 32 05-Mar-2022 04-Jun-2022 €30,199 €32,506 €0 €130,917 -€2,307 €0 0.5119 €15,458 33 05-Jun-2022 04-Sep-2022 €30,190 €32,506 €0 €131,567 -€2,316 €0 0.5012 €15,131 34 05-Sep-2022 04-Dec-2022 €30,620 €32,945 €0 €132,220 -€2,325 €0 0.4906 €15,022 35 05-Dec-2022 04-Mar-2023 €30,813 €33,158 €0 €132,876 -€2,344 €0 0.4801 €14,794 36 05-Mar-2023 04-Jun-2023 €30,804 €33,158 €0 €133,536 -€2,353 €0 0.4699 €14,475 37 05-Jun-2023 04-Sep-2023 €30,795 €33,158 €0 €134,198 -€2,362 €0 0.4601 €14,169 38 05-Sep-2023 04-Dec-2023 €31,233 €33,605 €0 €134,864 -€2,372 €0 0.4504 €14,068 39 05-Dec-2023 04-Mar-2024 €31,431 €33,822 €0 €135,534 -€2,391 €0 0.4407 €13,852 40 05-Mar-2024 04-Jun-2024 €31,421 €33,822 €0 €136,206 -€2,400 €0 0.4314 €13,555 41 05-Jun-2024 Final period €1,636,734 €136,882 0.4254 €696,330 PV factor is averaged over multi-discount dates. NPV Balance €19

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Trieste,5,Via Giovanni Verga,Trieste,Trieste DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity Telecom Italia S.p.A. €135,287 €125,648 €136,882 €127,243 €1,653,266 100.00%

Sum of tenant gross values €135,287 €125,648 €136,882 €127,243 €1,653,266 100.00%

Property Report

Venezia Mestre, Via Tevere 34

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13 Venezia Mestre, Via Tevere 34

13.1 Location The property is located in Mestre-Carpenedo, the most populous municipality within the Municipality of Venice, in the eastern part of Veneto Region. As at January 2013, the Province of Venice totaled approx. 848,000 inhabitants. Mestre is located in the northern part of the Municipality of Venice, about 9km north of Venice and about 40km west of Padua. The local economy is characterised by small-medium sized industries and agricultural activities. The property is located in the semi-central area of Mestre, in Via Tevere n.34, north-east from the city centre. The micro area is characterised by the presence of average-quality buildings constructed mainly in the ‘60s and some of more recent development, which vary in height, from three to six floors above ground. The destination of use is prevalently residential with some retail units hosted on the ground floor. The property is situated in the proximity of one of the major city parks, Parco Albanese.

13.2 Accessibility Road Mestre is reachable through the Highways A4 Torino–Trieste and A27 Venezia–Belluno. Both highways are connected to Mestre through a by-pass; the interconnection to A4 is approx. 13km from the property to the west and about 16km to the east, and the connection to A27 is at some 8km. The by-pass is reachable through Via Giovanni da Verrazzano and is 2.2km away. The property is easily accessible by the vehicles through Via Tevere. Public parking spaces are available in the area of reference.

Rail The railway station Venezia Mestre is situated approximately 4.5km south of the subject property; the station is an important hub connecting Venice to Milan, Udine, Trento, Trieste and Adria.

Public Transport The property is not well served by public transport. The closest bus stops are approx. .800m from the property and are located on Via Garibaldi and Via San Donà. These bus stops serve the line numbers 2, 3 and 4. Air The nearest airport is Venice Marco Polo Airport at about 9km from the subject property, following by Treviso Airport and Ronchi dei Legionari Airport (Gorizia) which are about 33km and 127km from the subject property

13.3 Site and Property Description Site Description and Accessibility The property under analysis is a stand-alone building developed on a square shaped land plot. The site is bounded by Via Tevere to the North, Via Metauro to the West, Via Garigliano to the East and by Third Parties to the South. The site is entirely fenced. The site is accessible by two entrances positioned onto Via Tevere and Via Metauro; the first one grants both vehicular and pedestrian access, while the second is only a vehicular entrance not in use.

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Property Description The subject property is a stand-alone building dating back to 1972. It is entirely dedicated to telephone exchange and totals 2,939sq m of gross area. The property presents an irregular rectangular layout and is developed on three above ground floors. The spaces are dedicated to laboratories, data rooms and deposits, and the roof is partially used as terrace hosting technical plants. The property has reinforced concrete frame structure; the rooftop is flat. The façades are plastered and painted with the stone framed windows. All floors present a height of approximately 3.5m. The spaces are partially equipped with floating floor and suspended ceilings finished with tinplate. The finishes include floor covered with marble (lobbies and staircase), with ceramic tiles (toilets), and PVC (data rooms). The spaces are equipped with perimeter fan coils and ventilation system anchored to the ceiling and traditional radiators positioned in the toilets. The lighting is provided by recessed (where the suspended ceiling is present) and anchored lighting elements. The spaces are separated with both traditional and demountable partitioning. The vertical connection is guaranteed by:

. One lift serving all floors . One staircase serving all floors The access to the property is granted through the main entrance positioned on the eastern side of the building and a secondary/emergency entrance positioned on the western side of the property. The property is equipped also with an anti-burglar system (TVCC, access with badge, alarms). The external area is dedicated to vehicular and parking spaces positioned on the Eastern and Southern sides of the site and to landscaped area. The floor is finished in asphalt.

13.4 State of Repairs We inspected the property on 16 June 2014. Based on a purely visual inspection, it is our opinion that overall state of repairs of the property is good, showing usual signs of wear and tear.

13.5 Accommodation For the purposes of this valuation we have adopted the following Gross Floor Areas (GFA) reported in the Investment Memorandum (The IM). In our analysis we have considered these areas to be accurate and correct without carrying out any check measurements neither on site nor on the plans as not forming part of our valuation instruction. If you wish for certainty we advise the Client to instruct for a building survey to be carried.

Technical Horiz. Vert. Total Technological Ext. Parking Ext. Area Floor Rooms (sq Conn.(sq Conn. (sq Gross Room (sq m) (sq m) (sq m) m) m) m) Area Ground 483 59 1,092 105 22 7 1,768 Mezzanine 21 9 30 First 509 21 22 19 571 Second 530 22 18 570 Total 1,522 101 1,092 105 66 53 2,939

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The property totals a GFA of 2,939sq m. The Gross Lettable Area (GLA) adopted in our analysis is of 1,588sq m. The GLA adopted includes the areas referred to in the table above as: technological rooms and horizontal connections. The GLA does not include the areas identified as vertical connection, technical rooms, external area and external parking.

Commentary The TDD report provided reports a GFA of 3,082sq m (excluding the roof floor). If compared to the GFA (excluding the roof floor) reported in the IM of 2,939 sq m highlights a difference of +5%. The TDD Report does not provide the area split per use, such as: technological rooms, vertical connections, horizontal connections, etc therefore for the purposes of this valuation we have relied on the areas contained within the IM. We highlight that, it is our understanding that the for the purposes of the TDD, has not been performed a check measurement on site nor on property plans therefore the discrepancy could be due to the difference source of information used for the preparation of the IM and of the TDD report.

13.6 Environmental Aspects The results of the Environmental Assessment detect no particular issues, except for the below reported findings extrapolated from the EDDR Report provided, as follows:

Raw Materials and Materials Employed on Site . The only one material employed on site and potentially dangerous for the soil, subsoil and groundwater is the the gasoline in service of the electrical generator, which is stored in an underground tank.

Soil, Subsoil and Groundwater: . The last leak-tightness test on the underground tank was carried out in 2003.There is no evidence of further leak-tightness tests. . The presence of filling material must be property taken into account during any intervention that might involve excavation works and earth movement. The EDD advises to analyse the landfill quality in case excavation or earth movement occurs.

GHG Emissions and ODS (Ozone Depleting Substances) . It was not possible to verify the presence of any GHG-emissions or ODS. However, based on the documentation available, there are two cooling units on the roof floor that use gas R22. Starting from 01/01/2015 the R22 must be replaced by other gas not harmful to the ozone.

Man Made Vitreous Fibers (MMVF) . The documentation available in the Data Room shows no sign of sampling campaigns of materials potentially containing MMFV.

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The EDD report quantifies and an amount equal to €14,500 for the costs related to necessary verification e/o administrative costs of the reported items. These costs have not been taken into account in our analysis as it is reasonable that they will be borne by the Vendor to guarantee the buildings compliance with the mandatory legislation.

Commentary We would like to bring to your attention it is not our usual procedure to lead surveys about the goodness and nature neither of the soil on which the property had been developed nor to assess the presence of deleterious material with the property, therefore if you wish for certainty regarding this issues we should advise you instruct a qualified surveyor.

13.7 Cadastral Data The TDD Report does not report Cadastral information of the property (Building Registry Certificates, Cadastral Plan, etc).

However the TDD Report highlights the following: . The documentation relating the cadastral aspects is not complete, however the property seems to be correctly identified at the cadastral offices. For the purposes of this valuation we have assumed that the cadastral identification of the building has been rectified at the local authority prior to the sale of the property – as required by the Law - and therefore no related risks were taken into account in our analysis.

13.8 Town Planning Data For the purposes of this valuation we have relied on the information and findings of the TDD Report and summarised below:

. A valid Building Certificate of Use (CDU) has not been made available for the purposes of the TDD analysis

. The CDU made available states that at the date of the issuance of this CDU (21/04/2005) the property had fallen within areas zoned as: Industrial Area D6 – Equipment for the maintenance of the existing technological plants (Attrezzature per la gestione degli impianti tecnologici esistenti) and Equipment of urban and local mobility – existing viability (Attrezzatura di scala urbana e territorial mobilità-viabilità esistente). This destination is confirmed by the on line document;

. Based on the currently in force Genera Town Plan (PRG) the current use of the building appears to be compatible with the laws in force

. In consideration of the fact that the property is included in the Area D6, it could fall into the "standard" quota (understood as spaces of municipality areas devoted to public uses or public interest, which every municipality must have) as required by town planning regulations (Ministerial Decree no. 1444/1968). The areas of the property which have been calculated as "standard" cannot be used for purposes different by public or public interest. In the case in which it is wished to modify the use and destination of building, it will be necessary to change the provisions contained in the PRG and it would become necessary finding other areas inside the municipality to be destined to public uses – in exchange.

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. A portion of the analysed area should be utilised for viability purposes and for this reason it should be transferred to the Public Administrations

. A document, dated in 1972, in which SIP S.p.a establishes an obligation with the Municipality of Venice. The obligation consists in the maintenance of the industrial use of the area ( identified at the Building Register with Sheet. 14 Parcel. 1760 D/8, Parcel. 1761 sub 1 A/4, Parcel. 1761 sub 2 A/4 and at the Land Register Sheet 14 Parcel 1697) for 15 years. It is necessary update the notarial report on the 20-year period in order to verify whether the obligation is expired.

. In the data room is available a communication of the Ministry of Cultural Heritage, dated 30/05/2005, informing that the property is free from any constraints

The present valuation is based on the assumption that the property is used in compliance with the town-planning regulation and that the current use of the property has been dully authorised and all planning fees and standards duly paid and fulfilled.

13.9 Building Certifications CPI – Fire Prevention Certificate The TTD does not report information about valid or expired CPI. The TDD highlights that: . It is necessary to obtain the copies of the approved projects and annexed certification in order to ascertain the CPI regularity and the management of the future renewals.

Fitness for Use Certificate According to the TTD report, the Fitness for Use Certificate (Certificato di Agibilità) was issued by the Municipality of Venezia on 12 January 1976 for telephone exchange use. The TTD does not report information about valid Fitness for Use Certificate.

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13.10 Annual Non-recoverable Costs For the purposes of the subject valuation analysis we have adopted the following Non-recoverable costs:

Cost Amount p.a /% on Gross Rent Note Source of Data Property Tax – IMU €7,480 This amount represents the The IM calculation basis for the adopted annual cost over the holding period, subject to the inflation index.

Building Insurance €- Insurance Building is paid The IM by the Tenant Property 1% This amount represents the JLL Estimate Management calculation basis for the adopted annual cost over the holding period, subject to the inflation index. Lease Registration 0.50% The total lease registration The IM Tax tax is in the order of 1% of the gross annual rent and is divided equally between the Tenant and the Landlord (50% each). Capital Reserves none The extraordinary The IM maintence is carried out and sustained by the Tenant. Service Charges €30/sq m To be applied to the vacant spaces.

13.11 Tenure The documentation provided to us for the purposes of the present valuation was not inclusive of the Legal Due Diligence report. Based on the findings of the TDD report it is our understanding that the property is owned by Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso managed by Fondi Immobiliari Italiani SGR Spa. For further information please refer to the TDD Report. Our analysis is on the basis that the Atlantic 2 – Berenice – Fondo Uffici - Fondo Comune di investimento immobiliare di tipo chiuso hold a full ownership title over the property under analysis.

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Easements The TDD report states that that the documentation provided for the TDD analysis is incomplete and that further verification should be with reference to: . The available documentation does not present any agreement with ENEL for the use of the power station present in side property analysed.

13.12 Tenancy At the valuation date, the property is fully let to Telecom Spa. The main contractual details were extrapolated from the IM and are summarised below:

Lease Dates & Break Options

2nd Lease Notes Lease 1 Lease Term Break Tenant Lease Start Term length Expiry Option Expiry Telecom Spa 01/11/2002 19+6 31/10/2021 31/10/2027 -

Passing Rent, Step Rents and Headline Rent

Passing Date Step Date Step Tenant Step 1 Step 2 HR Date HR Rent 1 2 Telecom Spa €150,301 ------

Rent revision & Indexation

Tenant ISTAT Indexation % Telecom Spa 75%

Based on the information contained within the TDD report, we report that: . The available documentation does not present any agreement with ENEL for the use of the power station present in side property analyzed . The agreement foresees that, both the ordinary and extraordinary maintenance activities fall under the tenant's responsibilities

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13.13 Local Market Mestre falls within the municipality of Venice, however, it is a district characterised by different morphological and geographical features if compared with the island of Venice. Mestre is located on the dry land and here are concentrated modern residential developments, services and important economic and industrial activities, different to the island which is characterised by aged buildings and activities mainly concerning the touristic sector. In consideration of what mentioned before the office market of Mestre cannot be associated to the office market of Venice (island). As in other regional markets the local market of Mestre is dominated mainly by local players, public players and local banks.

Supply The supply is mainly represented by small sized office building or office portions. However in the last year, several office developments have led on the market also office characterised by medium and large sized of modern quality. Being a very local and opaque market there is no available information on the existing stock and on its overall quality.

Completion and plans The information publicly available as today highlights some important office development/redevelopments in the urban area of Mestre. The development is mainly concentrated in the area of Marghera-San Colombano. An important completion of this years has been “Vega 1” (Phase 1 of the requalification project foreseen for Porto Marghera), a scientific park of 65,000sq m that hosts offices and services. Other important development plans of which completion is foreseen in the next years are “Hibrid Tower” (mixed use-mainly residential and office) and “Porto Marghera” a mixed use development that will host about 11,500 sq m of offices. In addition is important underline also the presumable immediate starting of the development “Vega 2” (two towers of 40.000sq m mainly used as offices), adjacent to Vega 1.

Rents The often blurred boundaries between the offer, alongside a high incidence of owner-occupation, are likely to result in a volatile office market in which asking and actual rents are highly variable. Rental values varies within a wide range depending on the unit size (on average small 100sq m - 250sq m) and on their location. Professionals and private practices, the most active players of the local market are focused on the central locations where prime rent can reach up to €180/sq m for small portions of good quality. The local market practice for TI’s is uncertain.

Letting Transactions We report below a selection of the results of the market enquiries carried out in terms of asking rents in the area of reference for pure offices. We deem appropriate bring to the Client’s attention that there is no information available for comparable leasing transactions concluded in the area of interest.

Adress Sub-Area sq m €/sq m Quality

Piazza Ferretto Centre 100 €180 Very Good Piazza Ferretto Centre 100 €132 Average

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Via Torino Semi-Centre 1,370 €145 New

13.14 Market Rent The Market Rent by us estimated takes into account the use of the property, its location, age, state of repairs and maintenance and has been estimated to be of €90/sq m. The estimated Market Rent has been weighted according to use as follows: . Technological rooms 100%

. Horizontal Circulation 100% . Vertical Circulation: 0% . External Area 0% The total Market Rent is of €142,920. If compared to the gross passing rent of €150,301 it shows a slight over- rented situation of approx. 5.2%.

Marketing Assumptions Our Market Rent estimate also considers the following marketing assumptions: . Letting Void (future leases): 18 months

. Rent Free period (future leases): 12 months . Tenant Improvement’s (capital €90/sq m (equal to 12 months of rent) contribution on future leases):

13.15 Future Income Performance We are of the opinion that the building is currently slightly over-rented therefore the present valuation assumes that the Tenant at the first lease term expiry (30/11/2021) will renegotiate its lease at market rent by us estimated, also in consideration of the specialisation of the property (CED).

We highlight that the ability to generate future income would be fairly limited given its age, functionality and flexibility without carrying out important refurbishment works; the costs to be sustained might not be balanced with the potential income. In the event that the tenant should opt for the property release due to non-economic related drivers (i.e. business activity), the property will be suitable for a redevelopment subject to verification with the Local Authority of its planning use.

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13.16 Valuation Data The DCF analysis is based on the following parameters: Investment Horizon: 10 yrs Date of Valuation: 05/06/2014 Cash Flow start date: The cash flow start date is the valuation date. Gross Rent as at the Valuation Date: €150,301 Market Rent: €142,920 Letting Void (future leases) 18 months Rent Free period (current lease at 0 months renegotiation) Rent Free period (future leases): 12 months Tenant Improvements (Capital €90/sq m (equal to 12 months of rent) contribution future leases ): Tenant Improvements (Current lease None; at renegotiation): Non recoverable costs: . Property tax (IMU): €7,480p.a. . Building Management: 1% on the gross rent . Service Charges: €30/sq m (applicable only for vacant spaces) . Lease Registration tax: shared in equal parts between Landlord and Tenants equalling to 1% (in total) of the annual rent No Building Insurance and Capital Expenditure has been taken into account in our analysis as being paid by the Tenant. Gross Initial Yield: 8.44% Net Initial Yield: 7.50% Gross Exit Yield: 8.25% Net Exit Yield: 7.60% Equivalent Yield: 7.45% IRR (unleveraged): 8.90%.

Comments The present valuation reflects a gross yield in line with the registered yield level for transactions in regional markets (please refer to Section n. 4.5) and the market appeal represented by the tenant’s covenant. There have not been any similar recent transactions. The most recent one refers to a Telecom Building centrally located in Milan at a gross yield of 7.75%-7.80% in Q1 2012; the reflected 65-70bp difference should be considered bearing in mind that in Q1 2012 market conditions were far less attractive with 2012 registering as the lowest investment volume of the last decade.

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13.17 SWOT ANALYSIS Strengths . The property is let to a prime tenant with a lease contract expiring at the end of 2021 . The Tenant is responsible for all extraordinary costs

Opportunities . In-town location characterised by the residential use . Potential redevelopment of the property for residential use (subject to verification with the Local Authority) if vacated by the current tenant

Weakness . The property is not suitable for reletting if it should be vacated by the current Tenant at the first lease expiry in consideration of its specialised configuration

13.18 Alternative use Based on the characteristics of the immediate surrounding area, which is residential, and of the property quality and lettability it is our opinion that the property would be suitable for a redevelopment for residential use. The current planning use of the property would not allow a residential redevelopment, however it is reasonable to assume that an industrial redevelopment would not be favoured by the Local Authority.

13.19 Saleability The property would appeal to local and private investors in consideration of its investment volume, of the tenant’s covenant and of the secured income flow. On the other hand, due to the limited investment volume and its location, it would be of interest only for a limited number of institutional players having secondary markets as an investment target.

13.20 Indication on the Building Reinstatement Cost We have considered the following assumptions to arrive at our indicative reinstatement cost of the property:

. The present analysis is based on the gross built area GLA of the asset of 1,588sq m . We have considered an average construction cost per sq m based on market benchmarks of approximately €1,000/sq m on GLA reflecting an overall construction cost of €1,588,000

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. We deem appropriate to highlight that the Reinstatement Costs estimate takes into account the demolition costs (€50/sq m) and includes also the costs related to professional fees (5% on construction costs), contingency 3% on the construction costs) and the construction costs contribution/waste disposal (€2/sq m on the GBA of 1,742sq m) Please note that we have not taken into consideration any planning fees (primary and secondary planning fees), any insurance of rental loss during the construction period; nor we have made allowance for any additional potential planning costs and the expected finance costs.

On the basis of the information above, we are of the opinion that an indication on the reinstatement cost of the subject property as at the valuation date could be in the order of approx. €1,810,000 (rounded) reflecting a cost of €1,141/sq m of GLA.

Commentary We would like to bring to the Client’s attention that the above reported costs estimates should be considered as indicative, based on average parametric costs applicable for properties with similar characteristics to the property under analysis; if you wish for certainty in regarding the costs estimates, we would advise you to consult a cost consultant. With reference to the construction cost contribution, in absence of the information publicly available we have estimated said cost based on market benchmarks for similar locations. If you wish for certainty we advise to instruct a planning specialist to provide the fees estimate.

13.21 Market Rent Based on the information herein-above reported, our opinion of the Market Rent based on the current state of repair and use, as at the valuation date is:

€143,000 (rounded) (One Hundred and Forty Three Thousand Euros)

13.22 Market Value Based on the information herein-above reported, it is our opinion that the Market Value of the subject property in its current state of repair and use, subject to the existing lease agreement and with the benefit of vacant possession for the portions non income producing, as at the valuation date is as follows: €1,780,000 (One Million Seven Hundred and Eighty Thousand Euros)

The above reported Market Value reflects a Net Value, after the deduction of purchaser’s costs of acquisition of 5.00%. Our assessment of the Gross Value before deduction of purchaser’s costs is as follows: €1,869,000 (One Million Eight Hundred and Sixty Nine Thousand Euros

165 Appendix 1

Location

Macro Location

Via Tevere 34, Mestre

Micro Location

Via Tevere 34, Mestre

Appendix 2

Photos

Via Tevere 34, Mestre

External Pictures

Via Tevere 34, Mestre

Internal Pictures

Appendix 3

Valuation Calculations

REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Property

Address Venice Mestre,34,Via Tevere,Venezia Mestre File/Ref No 9

Gross Valuation €1,874,220 Capital Costs -€200 Net Value Before Fees €1,874,020

Less Stamp Duty @4.00% of Net Value -€71,391 Agents Fee @0.75% of Net Value -€13,386 Legal Fee @0.25% of Net Value -€4,462

Net Valuation €1,784,781 Say €1,780,000

Equivalent Yield 7.1288% True Equivalent Yield 7.4580% Initial Yield (Deemed) 7.5000% Initial Yield (Contracted) 7.5000% Reversion Yield 7.1121%

Total Contracted Rent €150,301 Total Current Rent €150,301 Total Rental Value €142,920 No. Tenants 1 Capital value per m² €963.72

Running Yields

Date Gross Rent Net Rent Annual Quarterly 05-Jun-2014 €150,301 €140,566 7.5000 % 7.8652 % 31-Oct-2021 €142,920 €133,296 7.1121 % 7.4398 %

Yields based on €1,874,220

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 REPORT Valuation Summary jones lang lasalle

Report Date 19 June 2014 Valuation Date 05 June 2014

Tenants

Tenant name File / Ref No Next Review Expiry Date Current Rent ERV Method ERV Cap.Group Val.Meth. Yield 1 Yield 2 Gross Value Freehold Telecom Italia S.p.A. NA 31-Oct-2027 €150,301 Unrounded €142,920 All Units Initial Yield 7.500 €1,874,220 Total €150,301 €142,920 €1,874,220

Portfolio: Project Calvino AGG CIRCLE VISUAL INVESTOR 2.50.028 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Venice Mestre,34,Via Tevere,Venezia Mestre,Venezia DCF Start Date 05-Jun-2014

Assumptions

Equity Owned 100.00% Duration 10 years Discounting Monthly

ERV Growth set up using tenant growth rates

Exit Tables: Annually In Arrears

Cashflow Results

Start: Gross Value €1,869,000 Geared IRR 8.8778% Start: Acquisition Fee @ 5.0000% -€89,000 Ungeared IRR 8.8778% Start: Net Value €1,780,000

Exit Results

Exit: Gross Value €2,050,689 Exit: Capital Expenditure €0 Exit: Purch.Fees €0 Exit: Net Value €2,050,689 Exit: Vendors Fees -€20,507 Exit: Rent adjustments €0 Exit: Adjusted Net Value €2,030,183

Exit: Rent payable (gross) €167,259 Exit: Market rent (gross) €169,232 Exit: Rent receivable (net) €155,852 Exit: Market rent (net) €157,825 (Gross market rent minus revenue costs and heads rents paid at exit)

Exit: Net Init Yield 7.6000% (Net Rent / Gross Value X 100) Exit: Gross Initial Yield 7.6000% (Net Rent / Net Value X 100) Exit: Net Revn Yield 7.6962% (Net ERV / Gross Value X 100) Exit: Gross Revn Yield 7.6962% (Net ERV / Net Value X 100) 8.2524% (Gross ERV / Gross Value X 100) 8.2524% (Gross ERV / Net Value X 100) Exit: Equivalent Yield 7.2379% Exit: Vendors Fees 1.0000% (-€20,507)

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

1 05-Jun-2014 04-Sep-2014 -€1,834,058 €37,575 €0 €142,920 -€2,634 €0 1.0000 -€1,834,280 2 05-Sep-2014 04-Dec-2014 €35,304 €37,741 €0 €142,920 -€2,437 €0 0.9727 €34,339 3 05-Dec-2014 04-Mar-2015 €35,381 €37,826 €0 €142,920 -€2,445 €0 0.9520 €33,681 4 05-Mar-2015 04-Jun-2015 €35,376 €37,826 €0 €143,197 -€2,450 €0 0.9319 €32,966 5 05-Jun-2015 04-Sep-2015 €35,371 €37,826 €0 €143,590 -€2,455 €0 0.9125 €32,277 6 05-Sep-2015 04-Dec-2015 €35,629 €38,089 €0 €143,983 -€2,460 €0 0.8934 €31,830

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 1 REPORT Discounted Cashflow jones lang lasalle

Address Venice Mestre,34,Via Tevere,Venezia Mestre,Venezia DCF Start Date 05-Jun-2014

Item Start End Period Total Rent Grd Rent ERV Costs Interest PV factor NPV

7 05-Dec-2015 04-Mar-2016 €35,752 €38,223 €0 €144,377 -€2,471 €0 0.8743 €31,259 8 05-Mar-2016 04-Jun-2016 €35,744 €38,223 €0 €144,925 -€2,478 €0 0.8559 €30,594 9 05-Jun-2016 04-Sep-2016 €35,736 €38,223 €0 €145,537 -€2,486 €0 0.8382 €29,953 10 05-Sep-2016 04-Dec-2016 €36,134 €38,628 €0 €146,152 -€2,494 €0 0.8205 €29,648 11 05-Dec-2016 04-Mar-2017 €36,323 €38,834 €0 €146,769 -€2,512 €0 0.8031 €29,170 12 05-Mar-2017 04-Jun-2017 €36,313 €38,834 €0 €147,466 -€2,521 €0 0.7861 €28,547 13 05-Jun-2017 04-Sep-2017 €36,304 €38,834 €0 €148,198 -€2,530 €0 0.7698 €27,948 14 05-Sep-2017 04-Dec-2017 €36,796 €39,336 €0 €148,933 -€2,540 €0 0.7536 €27,731 15 05-Dec-2017 04-Mar-2018 €37,030 €39,592 €0 €149,672 -€2,561 €0 0.7376 €27,313 16 05-Mar-2018 04-Jun-2018 €37,021 €39,592 €0 €150,389 -€2,571 €0 0.7220 €26,731 17 05-Jun-2018 04-Sep-2018 €37,012 €39,592 €0 €151,098 -€2,580 €0 0.7071 €26,170 18 05-Sep-2018 04-Dec-2018 €37,505 €40,095 €0 €151,811 -€2,589 €0 0.6922 €25,961 19 05-Dec-2018 04-Mar-2019 €37,740 €40,350 €0 €152,527 -€2,610 €0 0.6775 €25,567 20 05-Mar-2019 04-Jun-2019 €37,732 €40,350 €0 €153,139 -€2,618 €0 0.6632 €25,022 21 05-Jun-2019 04-Sep-2019 €37,725 €40,350 €0 €153,710 -€2,626 €0 0.6494 €24,498 22 05-Sep-2019 04-Dec-2019 €38,136 €40,769 €0 €154,284 -€2,633 €0 0.6358 €24,245 23 05-Dec-2019 04-Mar-2020 €38,332 €40,982 €0 €154,859 -€2,650 €0 0.6222 €23,851 24 05-Mar-2020 04-Jun-2020 €38,323 €40,982 €0 €155,572 -€2,660 €0 0.6091 €23,343 25 05-Jun-2020 04-Sep-2020 €38,312 €40,982 €0 €156,344 -€2,670 €0 0.5965 €22,852 26 05-Sep-2020 04-Dec-2020 €38,823 €41,503 €0 €157,120 -€2,680 €0 0.5839 €22,669 27 05-Dec-2020 04-Mar-2021 €39,066 €41,768 €0 €157,900 -€2,702 €0 0.5715 €22,325 28 05-Mar-2021 04-Jun-2021 €39,055 €41,768 €0 €158,684 -€2,712 €0 0.5594 €21,849 29 05-Jun-2021 04-Sep-2021 €39,045 €41,768 €0 €159,471 -€2,723 €0 0.5478 €21,390 30 05-Sep-2021 04-Dec-2021 €37,970 €40,703 €0 €160,263 -€2,733 €0 0.5363 €20,363 31 05-Dec-2021 04-Mar-2022 €37,469 €40,189 €0 €161,058 -€2,720 €0 0.5249 €19,666 32 05-Mar-2022 04-Jun-2022 €37,458 €40,189 €0 €161,857 -€2,730 €0 0.5138 €19,247 33 05-Jun-2022 04-Sep-2022 €37,448 €40,189 €0 €162,661 -€2,741 €0 0.5031 €18,841 34 05-Sep-2022 04-Dec-2022 €37,980 €40,731 €0 €163,468 -€2,751 €0 0.4926 €18,708 35 05-Dec-2022 04-Mar-2023 €38,219 €40,994 €0 €164,279 -€2,774 €0 0.4821 €18,425 36 05-Mar-2023 04-Jun-2023 €38,209 €40,994 €0 €165,094 -€2,785 €0 0.4719 €18,031 37 05-Jun-2023 04-Sep-2023 €38,198 €40,994 €0 €165,914 -€2,796 €0 0.4621 €17,653 38 05-Sep-2023 04-Dec-2023 €38,740 €41,547 €0 €166,737 -€2,807 €0 0.4524 €17,527 39 05-Dec-2023 04-Mar-2024 €38,985 €41,815 €0 €167,565 -€2,830 €0 0.4428 €17,261 40 05-Mar-2024 04-Jun-2024 €38,974 €41,815 €0 €168,396 -€2,841 €0 0.4335 €16,894 41 05-Jun-2024 Final period €2,030,183 €169,232 0.4275 €867,937 PV factor is averaged over multi-discount dates. NPV Balance €0

DCF Exit calculations

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity

ARGUS Valuation - Capitalisation 2.50.028 19-Jun-2014 Page 2 REPORT Discounted Cashflow jones lang lasalle

Address Venice Mestre,34,Via Tevere,Venezia Mestre,Venezia DCF Start Date 05-Jun-2014

Tenant Gross Rent Net Rent Gross ERV Net ERV Gross Valuation Equity Telecom Italia S.p.A. €167,259 €155,852 €169,232 €157,825 €2,050,689 100.00%

Sum of tenant gross values €167,259 €155,852 €169,232 €157,825 €2,050,689 100.00%

Appendix 4

General Terms and Conditions of Business

Introduction

1. When the Terms apply

These Terms of Business (“the Terms”) apply where Jones Lang LaSalle provides a service to a client and there is no written agreement for the provision of that service or if there is, to the extent that these Terms do not conflict with the terms of that written agreement. In the case of conflict between these Terms and the terms of any written agreement, the terms of the written agreement shall prevail to the extent of the conflict. Reference in these Terms to the agreement means the written or informal agreement that incorpo- rates these Terms (“the Agreement”).

2. Jones Lang LaSalle

Jones Lang LaSalle means Jones Lang LaSalle, S.p.A., 8 Via Agnello, 20121 Milan, Registration no. and VAT no. 10040460155.

Service Level

3. Standard

Jones Lang LaSalle is to provide the service to the specification and performance level stated in writing in the Agreement or, if none is stated, to the specification and performance level that it ordinarily provides in accordance with Jones Lang LaSalle’s duty of care as set out below. Any variations must be agreed in writing.

4. What is not included

Jones Lang LaSalle has no responsibility for anything that is beyond the scope of the service so defined. In particular, it has no obligation to provide nor liability for:

• an opinion on price unless specifically instructed to carry out a formal valuation;

• advice, or failure to advise, on the condition of a property unless specifically instructed to carry out a formal survey;

• the security or management of property unless specifically instructed to arrange it; • the safety of those visiting a property, unless that is specified in its instructions.

5. Financial and Insurance Services

Jones Lang LaSalle is not permitted to carry out any financial or investment services or any further activity regulated by the Legislative Decree no. 58 of 24 February 1998 or by Legislative Decree no. 385 of 1 Sep- tember 1993 “Testo Unico in materia bancaria e creditizia”, as from time to time implemented.

6. Estate Agency

Where instructed to carry out estate agency business Jones Lang LaSalle must:

• report in writing all offers it receives;

• comply with any applicable statutory provisions of law or regulation for the provision of agency services.

Liability and Duty of Care

7. Duty of Care

Jones Lang LaSalle owes to the client a duty to act with reasonable skill and care in providing the service and complying with the client’s instructions where those instructions do not conflict with (a) these Terms, (b) the Agreement or (c) applicable law and professional rules. Jones Lang LaSalle is not obliged to carry out any instructions of the client which conflict with the applicable law, regulations and professional rules.

8. Liability to the Client

Jones Lang LaSalle has no liability for the consequences, including delay in or failure to provide the services of any failure by the client or any agent of the client:

• promptly to provide information or other material that Jones Lang LaSalle reasonably requires, or where that information or material provided is inaccurate or incomplete. The client warrants that, where it provides information or material to Jones Lang LaSalle, Jones Lang LaSalle is entitled to rely on its accuracy. • to follow Jones Lang LaSalle’s advice or recommendations.

The liability of Jones Lang LaSalle in contract, tort (including negligence or breach of statutory duty) or otherwise howsoever caused arising out of or in connection with the provision of services or otherwise under the Agreement is not limited for fraud or gross negligence or when its negligence causes death or personal injury or in case of breach of public policy rules (“norme di ordine pubblico”), but otherwise:

• is excluded if caused by circumstances beyond Jones Lang LaSalle’s reasonable control; • excludes loss of profit (“lucro cessante”) and any indirect damages;

• (where Jones Lang LaSalle is but one of the parties liable) is limited to the share of loss reasonably attributable to Jones Lang LaSalle –with the express exclusion of any joint liability (‘re- sponsabilità solidale’) thereof– regardless as to whether or not on the assumption that all the other parties pay the share of loss attributable to them (whether or not they do); and

• in any event is limited to five million euro (€5.000.000,00) in aggregate under this Agreement.

9. Liability to Third Parties

Jones Lang LaSalle owes no duty of care and has no liability to anyone but its client, unless specifically agreed in writing by Jones Lang LaSalle. No third party is intended to have any rights under the Agree- ment unless agreed in writing.

10. Liability for Others

As an express derogation to article 1228 of the Italian Civil Code, Jones Lang LaSalle has no liability for products or services that it reasonably needs to obtain from others in order to provide the service.

11. Delegation

Jones Lang LaSalle may delegate to a third party the provision of the service, or part of it, only where this is reasonable but remains liable for what the third party does unless the client agrees to rely only on the third party (and the client must not unreasonably withhold that agreement). If delegation is at the client’s specific request, Jones Lang LaSalle is not liable for what the third party does or does not do.

The Client shall effect and maintain adequate property and public liability insurance and general third party liability insurance providing coverage for bodily injury and property damage which will either include Jones Lang LaSalle as a joint insured or a waiver of the insurer’s subrogation rights against Jones Lang LaSalle, its employees or delegates.

12. Protection of Employees

Apart from fraud or criminal conduct, the client hereby waives any right it may have nor anyone representing the client to may make a claim or bring proceedings against an employee of Jones Lang LaSalle or former employee personally; for the purposes hereof, Jones Lang LaSalle executes the Agreement also in the name and on behalf of its employees in order to make this provision not revocable to the benefit of such employees, pursuant to article 1411, second paragraph, of the Italian Civil Code.

13. Liability to Jones Lang LaSalle

The client agrees to indemnify Jones Lang LaSalle against all third party (including any insurer of the client) claims (including without limitation all third party actions, claims, proceedings, loss, damages, costs and expenses) (“Claims”) • for which the client has agreed to insure under the Agreement;

• that relate in any way to the provision of the service except a Claim that a court of competent jurisdiction decides or Jones Lang LaSalle acknowledges (whether or not it admits liability) was caused by the fraud, wilful default, breach of contract or gross negligence of Jones Lang LaSalle or of a delegate for whom Jones Lang LaSalle is expressly held responsible under these Terms.

Delivering the Service

14. Timetable

Jones Lang LaSalle is to use reasonable endeavours to comply with the client’s timetable but is not responsible for not doing so unless specifically agreed in writing. Even then, Jones Lang LaSalle is not liable for delay that is beyond its control or which is caused by a failure or delay of the client to enable Jones Lang LaSalle to access any properties for their inspection.

15. Outside Italy

Where Jones Lang LaSalle reasonably requires a service to be performed by a service provider outside the Italian territory it may require the client to enter into a separate contract with that service provider that is subject to local law, separate invoicing arrangements and a standard of service no greater than that reasonably obtainable in that locality.

16. E-mail and on-line Services

Jones Lang LaSalle may use electronic communication and systems to provide services, making available to the client any software required that is not generally available.

17. Conflict

If Jones Lang LaSalle becomes aware of a conflict of interest it is to advise its client promptly and recom- mend an appropriate course of action.

18. Publicity

Neither Jones Lang LaSalle nor its client may publicise or issue any specific information to the media or to any third party about the service or its subject matter without the consent of the other.

19. Personal Data

The client hereby represents and warrants that it has duly provided the Information Notice pursuant to article 13 of Legislative Decree no. 196/2003, as subsequently amended (the “Privacy Code”), as well as that it has duly obtained any consents, authorisations or approvals from any third party in order to enable Jones Lang LaSalle to legitimately process any personal data provided to it under this Agreement. The Client, however, undertakes to indemnify and hold harmless Jones Lang LaSalle against all third party claims (including without limitation all third party actions, claims, proceedings, loss, damages, costs and expenses) in any way connected with or arising out to the processing by Jones Lang LaSalle of third party’s personal data communicated by the Client.

Subject to the foregoing, Jones Lang LaSalle processes and protects personal data about individuals in compliance with Italian data protection law and exclusively to the extent required to provide the services to the client or otherwise permitted under this Agreement.

20. Intellectual Property

All intellectual property rights in material supplied by the client belong to the client and in material prepared by Jones Lang LaSalle belong to Jones Lang LaSalle, unless otherwise agreed in writing. Each has a non- exclusive right to use the material provided only for the purposes for which it is supplied or prepared. No third party has any right to use it without the specific consent of the owner.

21. Access to the Properties

In the event that Jones Lang LaSalle has to carry out any property inspection as part of the services, the client shall take, under its sole responsibility, any necessary actions to ensure the legitimate access to the property by Jones Lang LaSalle (this including the obtainment of any consents and authorisations thereof) as well as to ensure that all appropriate safety and security measures are in place and that the visit to the property is carried out by Jones Lang LaSalle in a safe manner.

The client shall have to enable Jones Lang LaSalle to carry out any property inspection (when included as part of the services), and shall do its best efforts in order to enable Jones Lang LaSalle to carry out such inspection as soon as possible after execution of the Agreement.

22. Confidential Material

Each party must keep confidential all confidential information and material of commercial value to the other party of which it becomes aware but it may:

• use it to the extent reasonably required in providing the service;

• disclose it if the other party agrees;

• disclose it if required to do so by law, regulation or other competent authority

This obligation continues after termination of the Agreement.

23. The effect of Termination on Client Material

On termination of the Agreement Jones Lang LaSalle may, to comply with legal, regulatory or professional requirements, keep one copy of all material it then has that was supplied by or on behalf of the client in re- lation to the service. The client may request the return or destruction of all other client material.

24. Destruction of Papers

Except as required by art. 2220 of the Italian civil code, Jones Lang LaSalle may from the earlier of completion of the service or termination of the Agreement destroy any papers it retains.

Remuneration

25. Not specified

Where the fees and expenses payable for the service are not specified in writing Jones Lang LaSalle is entitled to:

• the fee specified by the RICS or other applicable professional body or, if none is specified, to a fair and reasonable fee by reference to time spent;

• reimbursement of expenses properly incurred on the client’s behalf.

26. Part performance

Where the service is not performed in full Jones Lang LaSalle is entitled to a reasonable fee proportionate to the service provided as estimated by Jones Lang LaSalle.

27. VAT

The client must pay VAT at the rate then current on the issue of a valid VAT invoice.

28. Interest on Overdue Amounts

If an invoice is not paid in full within the relevant due date Jones Lang LaSalle may charge interest on the balance due at a daily rate of 2% above the applicable legal interest base rate (“saggio di interesse le- gale”).

Miscellaneous

29. Transfer

The client may transfer the Agreement but must first get the written consent of Jones Lang LaSalle, which will not be unreasonably withheld.

30. Termination

The client or Jones Lang LaSalle may terminate the Agreement immediately by notice to the other if the other:

• has not satisfactorily rectified a substantial or persistent breach of the Agreement within the reasonable period specified in an earlier notice to rectify it;

• is insolvent according the laws of its country of incorporation.

31. Effect of Termination on Claims

Termination of the Agreement does not affect any claims that arise before termination or the entitlement of Jones Lang LaSalle to its proper fees up to the date of termination or to be reimbursed its expenses.

32. Waiver and Severance

Failure to enforce any of these Terms is not a waiver of any right to subsequently enforce that or any other term of the Agreement. The invalidity, illegality and unenforceability in whole or in part of any of the provisions of this Agreement shall not affect the validity, legality or enforceability of its remaining provisions which shall remain in full force and effect.

33. Notices

A notice is valid if in writing addressed to the last known address of the addressee and is to be treated as served:

• when delivered, if delivered by hand (if that is during normal business hours) otherwise when business hours next commence;

• two business days after posting, if posted by recorded delivery;

• when actually received, if sent by ordinary mail or fax. Notice may not be given by electronic mail.

34. Governing Law

The law of Italy applies to the Agreement and to the Terms. Jones Lang LaSalle and the client submit to the exclusive jurisdiction of the courts of Milan.

Instruction Letter Award Confirmation Letter Supplier is hereby authorized to perform the Statement of Work detailed below. Supplier acknowledges that this confirmation letter is a summary of select contract terms and conditions which is provided for convenience. To view the complete agreement electronically accepted by Supplier, Supplier is referred to Bank of America's Commercial Valuation Services Information Management System.

Supplier: Statement of Work Service Type ID: 14-004242-APR01-001 Supplier: Jones Lang LaSalle Americas, Inc. Service: Appraisal (Order) Supplier Representative: Dermot Charleson Borrower: Cerberus Agreement Number: CW145879; CW307989; CW454549 Award Terms and Conditions Sourcing Manager: Debbie Pauza, Market Manager Other Terms or Conditions: Date Awarded: 05/23/2014 Fees: EUR 61,000 Bank Contact: Wayne Miller Contact Phone: 813.968.7283 Appraisal Type: International-Other Certification: Contracted Appraiser Must Sign Service Delivery Requirements Due Date Description 06/23/2014 Need Gross Fee inclusive of VAT and Expenses. Scope to include inspection and full valuation of all 9 assets. Report deliverable to be under a single cover. Standard liability limits to apply in aggregate to all syndication partners. Please bid primary assignment without Pfandbrief valuations and then include add-on for Pfandbrief valuations in comments. Service Definition Currency Premise Qualifier Interest Appraised Allocations Description EUR Market Value As-Is Freehold Real Estate Subject to existing leases. EUR Insurable Cost As-Is Freehold Real Estate a/k/a Reinstatement Value Policies and Procedures Supplier is required to review, update and/or enter key summary information about the property appraised and associated value conclusions as part of this service. 1. Please include the following language in the Letter of Transmittal and the Intended Use Section of the report: "This report may be relied upon by Bank of America, N.A., its successors and/or assigns in connection with their respective consideration of the extension of credit related to the property and/or the beneficial ownership thereof (the "Loan Financing"). This information also may be relied upon by any actual or prospective purchaser, co-lender, participant, investor, transferee, assignee and servicer of the Loan Financing, any actual or prospective investor (including agents and advisors) in any securities evidencing a beneficial interest in, or backed by, the Loan Financing, any rating agencies actually or prospectively rating any such securities, any indenture trustee and any institutional provider(s) from time to time of any liquidity facility or credit support for such Loan Financing. In addition, this report or a reference to this report, may be included or quoted in any offering circular, registration statement, or prospectus in connection with a securitization or transaction involving the Loan Financing and/or related securities that may be issued. This report has no other purpose and should not be relied upon by any other person or entity." 2. Please include the following statement in your letter of transmittal: ?Bank of America makes no warranties or representations regarding this document or the conclusions contained herein.? Reappraisal assignments must document and explain assumption changes and resulting value differences for all Bank of America assignments completed within the prior two years. All appraisal reports (including all addendum and related attachments) and invoices must be uploaded to VSIMS in Adobe Acrobat-compatible format (PDF). Document security must be set to allow Commenting, Copying and Extracting of Content for use in the Bank's review function. Documents may be otherwise restricted from changes subject to the supplier's personal security preference. Additional Microsoft and Argus documents may be uploaded in their native format, where appropriate. Vendors are prohibited from accepting payment for services rendered from anyone other than Bank of America, N.A., its successors and/or assigns unless otherwise specified within this agreement. Time is of the essence. Review of all attachments and initial communication with identified project or property contacts must occur within five days of engagement. Liquidated damages may be assessed if the Statement of Work (SOW), including the delivery of all reports and requested data, is incomplete by the listed due date. Damages will be assessed at a rate of 5% of the negotiated fee for each day (cumulative) the SOW remains incomplete. Damages will not be imposed for delays resulting from circumstances beyond the appraiser's control if timely notice is provided; such circumstances to be judged for their validity solely by the Sourcing Manager. Addressee and Distribution Instructions Report Distribution Name Address CD/DVD Bound Comments Addressee, Recipient and Debbie Pauza, Market Manager Bank of America Merrill Lynch 0 0 Intended User International | 2 King Edward St | London | EC1A 1HQ Documents (content available online only) Project Attachments Miscellaneous (APR) BANK_OF_AMERICA_EMEA_VALUATION_REQUIREMENTS_UPDATED_02- 2013_05192014_144324.pdf Miscellaneous (APR) PROJECT_CALVINO_PROPERTY_LIST_05192014_143021.xlsx Project Contacts Name Company / Role Telephone Comments Property Contact (additional contacts may be listed for each property. Refer to the online property profile for details) Name Company / Role Telephone Comments Emanuele Rosetti Z Cerberus +44 20 7647 6000 Properties (detailed descriptions may be viewed online or downloaded) # Property Type Property Address 1 Office - Institutional/Governmental 9 Locations in Italy, Milan, LO