INSIGHTS ON THE PHILIPPINE REAL ESTATE MARKET

David Leechiu – CEO February 2017

1 THE The Philippines

LITERACY RATE 97.5% 6.8% GROWTH 103 LABOR FORCE GDP 68.1 Mn million 2.6%

23 years old INFLATION RATE POPULATION Average age of

D E B T CREDIT PHILIPPINE RATING GDP EXTERNAL $292.45B S & P BBB $76.62B (SEPT 2016) MOODY’S Baa2 FOREIGN PUBLIC RESERVES FITCH BBB- 47.4% of GDP $81B (1H2016)

Source: Trading Economics, BSP 3 Foreign Investment in the Philippines

LEASE TERM

25 years Renewable for another 25 years 40% In some cases, FOREIGN EQUITY LIMIT 50 years Renewable for another 25 years

PERSONAL INCOME TAX

If annual net taxable 30% income is at least P500,000 annual income (USD10,000) CORPORATE 32% INCOME TAX

4 Philippine Foreign Direct Investments (FDI)

In USD Billions

Philippines’ FDI is steadily growing but still needs a “more welcoming environment” for investors

Source: World Bank 5 Government’s Socioeconomic Agenda

PRES. DUTERTE’S 10-POINT SOCIOECONOMIC AGENDA

Current Tax Reform Ease of Doing Infrastructure Rural and macroeconomic Business Spending value chain policies development

Security and Human Capital Science, technology, Social protection Responsible land tenure Development and programs Parenthood & creative arts Reproductive Health

Source: DOH 6 Demand Drivers

Urban BPO Employee’s Overseas Filipino Population Growth Housing Need Remittances

Need to live 48.6% 10 million Growing number near OF’s can invest in Real Estate of Filipinos of BPO workers live in Urban their Areas* workplace.

More than 50% Housing backlog needs of remittances are to be addressed and real estate related It is projected to rise to 56.3% demand for dormitories by 2030 and 66% by 2050. will rise.

Source: Keynote speech of Sec. Arsenio M. Balisacan Director General of NEDA “The Philippine Economic Growth and the Growth in the Property Sector” 2015 7 * 2010 Metro Cityscapes

• Most of these districts will be fully developed by 2018. • There will be little land left for development. • The most important districts moving forward will be , Bay Area, , and .

3 MAJOR CBDs

MAKATI CBD. CENTURY CITY. . .

Manila San Juan ORTIGAS ORTIGAS CBD. ROCKWELL BUSINESS CENTER. . SILVER CITY. . Manda- Ortigas/ luyong BGC BONIFACIO GLOBAL CITY. MCKINLEY WEST. MCKINLEY HILL. UPTOWN. VERITOWN. Makati Bay/ BGC / 46 BUSINESS PARKS

QUEZON CITY. UP TECHNOHUB. . . Parañaque ARANETA, CYBERARK. ROBINSONS IT PARK. . UP TOWN CENTER. . ALI CLOVERLIEF BALINTAWAK. NUVO. . . . ROCKWELL SHERIDAN. SAN JUAN. Las Pinas ROCKWELL HILLSIDE. . FILINVEST CORPORATE CITY. LA FUERZA. NORTHGATE CYBERZONE. MADRIGAL BUSINESS PARK. WEST. TAGUIG. ARCA SOUTH. LAS PINAS. PORTOFINO. EVIA. PASAY. NEWPORT CITY. SM MALL OF ASIA COMPLEX. METROPOLITAN BUSINESS PARK. DOUBLE DRAGON CYBERCAMPUS. FILINVEST Alabang CYBERZONE PASAY. PARANAQUE. ASIAWORLD CITY. ASEANA BUSINESS PARK. AYALA ASEANA. MANILA. CITYPLACE. SAN LAZARO.

8 Regional Cityscapes

LAOAG. CAMELLA. VALDEZ CENTER. CAGAYAN. CAGAYAN Unprecedented countryside SPECIAL ECONOMIC ZONE AND FREEPORT. BAGUIO. development. BAGUIO TECHNOHUB. SM BAGUIO CYBERZONE BUILDING. PCH IT CENTER. ABANAO SQUARE. TARLAC. LAOAG CAGAYAN LUISITA BUSINESS PARK. TARLAC PROVINCIAL IT PARK. 2 Approximately BULACAN. PDC TECHNOPARK. ALTARAZA. FIRST BULACAN 130,900 hectares BAGUIO 1 IT PARK. CIUDAD DE VICTORIA. ABS-CBN CAMPUS. of master-planned or URDANETA. CB MALL. 4 TARLAC mixed-use developments 2 9 BULACAN PAMPANGA . BATANGAS. . VERMOSA. Over 80 I.T. parks and 5 PONTEFINO. SUNTECH IT PARK. HAMILO COAST. PANGASINAN 1 1 QUEZON SMDM IT CENTER. SOUTHFORBES IT PARK. business districts CAVITE / BATANGAS 11 SOUTHWOODS. NUVALI. ETON CITY. / LAGUNA GREENFIELD CITY. PUERTO AZUL. Countryside development going through . CEBU IT PARK. CEBU SRP. unprecedented construction boom driven by . MACTAN NEWTOWN. AKLAN 1 1 CAPIZ ABOITIZLAND CEBU. WATERFRONT TOWNSHIP. CITTA DE MARE. SMC. OAKRIDGE BUSINESS PARK BPO and tourism. PALAWAN 3 DAVAO. MATINA IT PARK. . DAVAO PARK 2 9 CEBU DISTRICT. LANANG IT PARK. DAMOSA IT PARK. 6 PAMPANGA. CLARK SPECIAL ECONOMIC ZONE. NORTHPOINT. CAMELLA. CIUDADES. LUBI ISLAND PHILEXCEL BUSINESS PARK. BERTAPHIL BUSINESS PLANTATION. PARK. SM CITY CLARK. CLARK GREEN CITY. GGLC. DUMAGUETE 4 NEPO CENTER. ALVIERRA. CAPILION. AKLAN. PALAWAN. LIO RESORT TOWN. SAN BORACAY NEW COAST. CAPIZ. PUEBLO DE PANAY 4 VICENTE. QUEZON. BALESIN ISLAND TECHNOPARK. ILOILO. ILOILO TECHNOHUB. ATRIA CAGAYAN DE ORO CLUB PARK DISTRICT. GAISANO CAPITAL ZAMBOANGA 4 ZAMBOANGA. MEGALAND MALL. . BACOLOD. LOPUE’S 9 CITYMALL ZAMBOANGA. EAST IT CENTER. ONE AND TWO SANPARQ. THE 1 DAVAO ZAMBOECOZONE AND FREEPORT NEW BLOCK IT PARK. ROBINSONS CYBERGATE CENTER. GENERAL TOWNSHIP. ZAMBOECOZONE SANTOS HIGHLANDS. CAGAYAN DE ORO. LOPUE’S SOUTHSQUARE IT PARK. BACOLOD IT . SM CITY BPO 2. PARK. . DUMAGUETE. . ONE PROVIDENCE. DUMAGUETE BUSINESS PARK. LINKSYS IT PARK. LP Legend: IT PARK. YY STAR DAS. Number of townships 9 Growth Sectors

Persistent growth despite prevailing political, Prepare for a boom in infrastructure, security TOURISM AND problems and natural disasters INFRASTRUCTURE for the past 15 years. Overseas Filipinos Remittance Philippine economy standing on two strong legs: In In billions USD BPO Revenue and OF Remittance Tourism potentially is the 3rd strong leg that can be BPO Revenue developed in a very short time frame.

Tourism Receipts

Source: UNWTO, iBPAP, World Bank 10 PH Growth Amidst Historical Events

ZTE Scandal GDP expanded by 7% EDSA II Makati Bus Explosion Conviction of ERAP National and Local Elections EDSA III Tropical Storm Juaning 2 Bombing Rodrigo Duterte proclaimed as new Pres. 9-11 Typhoon Sendong Manila Peninsula Mutiny 2011 Pres. Duterte enjoys a record high trust Phil. General Elections Arrest of former Pres. Gloria Arroyo

2001 Cotabato Bus Station Bombing 2007 rating of 92% Dos Palmas Kidnapping Congress Bombing Corona Impeachment Trial Spratly Islands Dispute

Typhoon Pablo 2016 Davao Bombing Bombing in Zamboanga Cotabato City Bombing Cebu Governor Suspension War on Drugs Capture and sentence of Kidnapping 2012 6.9 Magnitude Earthquake Negros and Cebu Above investment grade rating (BBB) Jemaah Islamiyah MV Princess of the Star Sank Tropical Dispute with China State of Emergency Declaration 2002 ZTE-NBN Irregularities Oakwood Mutiny 2008 Stockholders Meeting Super Typhoon Haiyan Overseas SARS Outbreak Cebu Ferry Tragedy Filipinos Jemaah Islamayah escape H1N1 Outbreak Killing of Taiwanese Fisherman

Jose Pidal plunder case Typhoon Ondoy 2013 Senate Pork Barrel Scam Hearing Remittance 2003 Davao airport bombing Typhoon Pepeng 5.4 Magnitude Earthquake Cebu and Bohol Typhoon Marakot Infanta Mud Slide Superferry sank in Zamboanga Typhoon Hagupit BPO

Superferry Bombing Death of Binay Alleged Corruption Hearings 2009

Phil. General Elections 5 Robbery DMCI Construction Hearings Revenue 2014

2004 General Santos Christmas Bombing Maguindanao Massacre Pres. Aquino’s Final SONA Typhoon Megi Kentex Manufacturing Slippers Factory Fire V-day Bombing Manila Hostage Crisis Typhoon Nona Hello Garci Scandal Phil. General Elections Typhoon Koppu

General Santos City Mall Bombing DLSU explosion during Bar Exams 2015 PNP-SAF killed in Maguindanao 2005

2010 Inauguration of Pres. Noynoy Aquino Vizconde Massacre Case Finished Milenyo Southern Leyte Mud Slide

State of Emergency Declaration 2006 Tourism Receipts

11 OFFICE MARKET Metro Manila Current vs. Pipeline Supply

Current vacancy rate across Metro Manila is at an all time low of 3.6%.

As of January 2017, there is a record number of 470,000 sqm pre-commitments for office space for 2017.

Bonifacio Global City, Quezon City, and Bay Area will more or less double its office space stock in the next 6 years.

Future office supply will mostly come from BGC, followed by Ortigas/Pasig/Mandaluyong, and Bay Area.

Supply Current supply Pipeline supply 3.08M sqm for 56 years (1960s to 2016) for 6 years (2017 to 2022E) Vacancy 1% Supply 8.76M sqm 4.06M sqm 1.56M sqm Supply 1.73M sqm Vacancy Supply 1% Vacancy 1.01M sqm 3% Supply Vacancy Supply 411K sqm 12% 572K sqm Supply Vacancy Supply 936K sqm Vacancy 1% 915K sqm Supply Supply 9% Supply Vacancy 632K sqm 721K sqm Vacancy Supply 502K sqm 78% 86% Vacancy 361K sqm Vacancy Vacancy 90% 88% Vacancy 89% 88%

Current Pipeline Current Pipeline Current Pipeline Current Pipeline Current Pipeline Current Pipeline MAKATI CITY ORTIGAS/ BONIFACIO GLOBAL QUEZON CITY ALABANG BAY AREA PASIG/ CITY/ MANDALUYONG TAGUIG 13 Metro Manila Supply Pipeline Per District, per Year (2017 to 2022E)

2017 2018 2019 2020 2021 2022 Leased 25% Leased 9% Total Supply Total Supply Total Total 770,325 sqm 511,498 sqm Supply Supply Under Nego 9% Vacant 91% 88,638 67,171 Vacant 66% Total Supply sqm sqm 1,261,514 sqm Total Supply 4.06M sqm 1,369,415 SQM Total supply 2017 to 2022E

*Gross Leasable Area in thousands (sqm) 14 FY 2016 Supply and Demand

Full year 2016 saw another historical high in Manila office space take-up at 630,000 square meters of net office space demand, against the supply of a little over 700,000 square meters.

2016 For the year ended December 31, 2016 * Leased 76% Under Nego 13% Vacant 10% Total Supply 701,568 sqm

*Gross Leasable Area in thousands (sqm) Metro Manila Demand Activity 2016 | By Location and Industry

70% of demand are coming from the information technology – business process management (IT-BPM) industry and 60% prefer Bonifacio Global City (BGC) over any other district.

By Location By Industry

630,000 630,000 sqm sqm FY 2016 FY 2016 transactions transactions

*Online gaming transactions are concentrated in the Bay Area 16 2017E Supply and Demand

2017 supply is also at an historical high of 1,369,415 square meters, most of which are in BGC, constructed at a much higher grade of specification, materials, workmanship, and quality, and catering primarily to multinational corporate tenants. Nonetheless, demand for 2017 is forecasted to reach new heights judging by the significant and unprecedented level of pre-commitments of 470,000 sqm by tenants to buildings under construction. 2017E Leased 25% * Under Nego 9% Vacant 66% Total Supply 1,369,415 SQM

*Gross Leasable Area in thousands (sqm) Metro Manila Demand Activity 2017E | By Location and Industry

By Location By Industry

470,000 470,000 sqm sqm Pre-commitments Pre-commitments for FY 2017 for FY 2017

*Online gaming transactions are concentrated in the Bay Area 18 PEZA Status 2016 and 2017E Office Buildings

• IT-BPM tenants, a significant driver in the demand for office space, need to locate in PEZA-certified buildings. • Currently, there is a risk of scarcity of such PEZA-registered projects, as so few have been granted this status in the last seven months—only two buildings in Metro Manila, one in , and one in the . • For the supply in 2017, only 19% are PEZA spaces with vacancies; others are either leased or non-PEZA. • Much of the vacant PEZA buildings are due for completion at the end of 2017 and are at risk of delays (Q1- or Q2-2018) • We forecast rents for these PEZA buildings to be driven up, given the limited supply and the significant demand from IT- BPM tenants for them.

2016 2017E

Non-PEZA PEZA Space Space Non-PEZA Leased/Under PEZA Space Space Negotiation Under Application

PEZA Space 701,560 Under 1,369,415 PEZA Space sqm Application sqm Vacant 2016 Metro Manila 2017 Metro Manila Supply Supply

PEZA Space PEZA Space Total PEZA Space: Leased/Under Total PEZA Space: Vacant 80% Negotiation 37% Metro Manila Current Supply Developer Market Share (1960’s to 2016)

Others 4.9M sqm Top 5: 793K sqm Daiichi Properties ETON Properties Federal Land 784K sqm Rockwell Land Ortigas & Co.

8.7M sqm 665K sqm Supply 359K sqm

291K sqm

270K sqm

205K sqm

177K sqm

161K sqm 154K sqm 20 Metro Manila Supply Pipeline Developer Market Share (2017 to 2022E)

21 Metro Manila Rental Range (PhP per sqm. per month)

7-year boom in rental rates. Rents will continue to move upwards this 2017 as new deals are done at higher rates than immediately preceding transactions.

22 Land Values by Business District

Y-o-Y Accommodation Accommodation Y-o-Y Increase Land Values Land Values Business *FAR Value Value Increase % Php/sqm Php/sqm District Range GFA/sqm GFA/sqm % (2014- (2015) (2016) (2015) (2016) (2015-2016) 2015)

Filinvest City 6 – 14 17% 99k – 264k 19,000 120k-280k 20,000 6%

Arca South 6 – 8 0% 210k – 220k 28,000 210k-280k 35,000 27%

Bay City 6 38% 150k – 180k 30,000 198k 33,000 10%

Bonifacio 6 – 15 14% 270k – 600k 360k-900k Global City 40,000 60,000 50%

Makati 6 – 16 27% 210k – 560k 35,000 300k – 800k 50,000 43%

Ortigas N/A 10% 109k – 223k N/A 200k – 350k N/A 57%

Bonifacio Global City still has the highest land values in the Philippines in the last 10 years.

23 PROVINCIAL OFFICE MARKET Provincial Pipeline (2017 to 2022E)

PROVINCES Supply (sqm)

CEBU 464,766

CALABARZON 258,777

DAVAO 92,919

PAMPANGA 126,614

1.29M sqm ILOILO 72,168

Supply BACOLOD 36,000

REST OF LUZON 156,590

REST OF VISAYAS 40,039

REST OF 41,565 TOTAL 1.29M sqm

25 Provincial Pipeline Developer Market Share (2017 to 2022E)

183K sqm Others 354K sqm

134K sqm 1.28M sqm Supply 77K sqm 124K sqm

83K sqm

105K sqm 122K sqm

108K sqm 26 IT-BPM MARKET Philippine IT-BPM Sector Revenue and Employment Forecast

IT-BPM forecasted revenue of

US$ 38.9 billion by 2022 with 1.8 M FTEs.

FTEs (‘000) FTEs US$ US$ Billions

Contact Center IT Services Healthcare Animation Global In-house Centers

2022 Outlook Philippines will move up the value curve with the help of high-value services.

*Source: IBPAP’s Roadmap 2022, Frost & Sullivan analysis, IBPAP data for 2010 28 BPO Distribution

6% 70% NORTH AND CENTRAL LUZON NCR 3% CALABARZON 3% REST OF VISAYAS

15% CEBU 1.15million

Estimated Number LEGEND of FTEs Luzon by end of 2016 MINDANAO Visayas 3% Mindanao 29 Next Wave Cities Recommended Provincial Locations

RIZAL CAGAYAN • Taytay • Binangonan • Tuguegarao • • PANGASINAN LAGUNA • Calamba • Dagupan

CAVITE BULACAN • Imus • Dasmarinas • Meycauayan • Rosario • Malolos • Bacoor

MISAMIS ORIENTAL BATANGAS • Cagayan De Oro • Batangas City

AKLAN • Kalibo Healthy labor pool, local government support, fiber LEYTE optic connectivity, • Tacloban accessibility and strong tourism play attract IT-BPM companies to locate in these BOHOL provinces. LEGEND • Tagbilaran Untapped locations for IT-BPMs 30 Presence of 3+ IT-BPM locators 30 RESIDENTIAL MARKET Residential Outlook 2016

BPO sector creating a new breed of condominium dwellers

Strong presence of OFWs, major bulk of growing middle income market

Only condominiums will continue to grow in NCR because there is no more supply of developable land for residential open lots, but reaching a plateau

Developers have no more significant landbank, thus the direction to go out of NCR, looking at: 1) Reclamation projects along and and 2) Townships in Major Cities and Towns like Cavite, Laguna, Clark, Cebu, Iloilo and Davao 3) Government land and military bases

Significant unmet housing demand needs a unified government effort to 1) Increase attractiveness to private sector developers and 2) To enable target market capability to borrow or acquire such homes (specifically for lowest income groups)

32 Residential Historical Land Values (2011 to 2015)

Strong growth in residential due to scarcity and increased demand from domestic market.

33 Residential Supply Projected NCR Licenses to Sell Issued

34 TOURISM 2015 Int’l Tourist Arrivals Asia Pacific

TOTAL GLOBAL TOURIST ARRIVALS 1.20 BILLION

5.3 PHILIPPINES MILLION 44% OF 1%

Source: UNWTO 36 Philippine Tourist Arrivals Domestic and International

1H2016: Total of 44 million tourist arrivals

Domestic Travelers International Tourist Arrivals 92% 8%

40.4M tourists 3.6M tourists

In In millions In In millions

Source: DoT 37 Philippine Tourism

National Tourism Development Plan 2017 -2022 target areas: - Enhanced air access - Increased accommodation capacity - Improved human resources - Stepped up marketing campaigns Luzon TOTAL (Philippines) No. of Accommodation 10,194

No. of Rooms 240,435

Ave. Occupancy Rate 67% Visayas

Ave. Length of Stay 2 Days

Mindanao 38 Source: DOT Philippine Flight Ratios

No. of Airports Annual Passenger Land mass (ha) Population and Flights* Footprint 7 North Luzon 9,566,801 35,460,000 1,527,333 49 flights daily

South Luzon 7 (excluding Metro Manila and 3,019,850 8,700,660 241,711 Palawan) 30 flights daily

1 Metro Manila 63,600 12,221,000 36,681,601 650 flights daily

4 *Palawan 1,489,000 994,340 909,635 42 flights daily

Visayas City 12 5,629,100 24,299,354 8,599,860 (excluding ) 274 flights daily

1 Cebu City 31,500 866,171 7,781,239 170 flights daily

14 Mindanao 9,753,000 23,167,704 3,245,471 (excluding Davao City) 101 flights daily

1 Davao City 244,000 1,449,296 2,790,000 71 flights daily *Palawan will become the most accessible with 4 upcoming new and expanded airports completed by 2017

*inbound and outbound flights. No. of airports include pipeline. 39

Source: Civil Aviation Authority of the Philippines (via Wikipedia website), ourairports.com, NSCB statistics Metro Manila Hotels: 2010 to 2019

40 Top 5 Source Markets

1H2016: PhP 148.56 Billion Expenditures of international visitors in the Philippines • Korea remains largest tourism market • Highest increase in Chinese tourism under current administration

Source: DoT 41 Chinese Tourist Arrivals 2014 - 2016

For the first half of 2016, Chinese international tourists reached 59M globally. From that, 342,000 or 0.6% went to the Philippines.

The top three destinations of Chinese international tourists are Thailand, South Korea and Japan.

Source: DOT, China National Tourism Administration 42 ABOUT LEECHIU PROPERTY CONSULTANTS MISSION

To deliver superior value and profitable real estate solutions for like- minded partners through local, dynamic & insightful property-related expertise in corporate leasing and investments.

To be the advisor of choice who provides the most strategic and outstanding property-related advice, solutions and services to our customers. Our company values unity, integrity and passion for excellence.

VISION

Together, our firm, redefines the real estate industry by being a catalyst of sustainable growth, through principled and expert property consulting advice and action. Our Services

Occupier Project IT-BPM Site Investment Research & Solutions Leasing Selection Sales Consultancy

The Philippines’ deepest bench of seasoned real estate advisors & brokers Occupier Solutions

Occupier Solutions transactions to date Closed Deals Live Deals 82,000 SQM 333,000 SQM

Our Clients

IT-BPM Site Selection Clients Project Leasing

We also advise and support landlords, building owners and real estate developers. Our leasing experts create and implement strategies for finding the right tenant mix and ensure maximum occupancy in a timely manner. Our real estate brokers have managed to lease more than thirty office buildings in Metro Manila on behalf of developers.

Currently marketing 28 projects Total of 722,000 sqm BGC. Citibank Plaza. Ecoprime. Menarco Tower. Net Park. Milestone at Fifth Avenue. Orē Central. The Curve. Twenty-five Seven McKinley. W CityCenter. W Fifth Avenue. W Global Center. W Office at High Street. High Street South Corporate Plaza I QUEZON CITY. Hexagon Corporate Center. One Luna Global Connections. Panorama Technocenter. ALABANG. Asian Star Building MAKATI CITY. Frabelle Salcedo. Liberty Plaza. M1 Tower. MJ Corporate Plaza. Nex Tower. . St. Francis Square. BAY AREA. DoubleDragon Plaza. Nexgen Tower. CAVITE. Suntech iPark. CEBU. Latitude Corporate Center. Mabuhay Tower. Looking to exclusively handle more project leasing appointments across the Philippines in 2017 Investment Sales

LPC officially started October 1, 2015 and in the first year of operating, we have concluded the following:

 Prime Commercial Lots in Bonifacio Global City PhP 3.5 billion  Office floor in Grade AAA building or USD 70 along , Makati million  Prime Residential Apartment Building in Salcedo Village, Makati  Residential Apartment Buildings in , Makati  Office floors in Filinvest City

LPC looking to transact circa PhP 25 billion or USD 500 million in 2017

USD to PHP $1 : 50.04 PHP Source: Investment Sales pipeline as of January 2017 48 Research and Consultancy

Our research and consultancy arm allows us to offer to clients a full suite of consulting services that include business planning, highest and best use studies, market research, project conceptualization, and project feasibility.

Completed Projects – Highest and Best Use Study

Central Business District: Project Cost of BGC and Muntinlupa PhP 58.1 billion Mixed Use developments: Lakewood City Cabanatuan or USD 1,211 Batulao, Woodlands Batangas million USD to PHP $1 :48 PHP Pico de Loro, Batangas CBRE Strategic Alliance with Leechiu Property Consultants

EFFECTIVE JANUARY 1, 2017

Source: CBRE Website Our Insights. Your Success. www.leechiu.com

This document is prepared by Leechiu Property Consultants (LPC) for information only and is based on information and representations provided to LPC. While reasonable care has been exercised in preparing this document, LPC does not warrant the accuracy or completeness of the information contained herein. LPC shall not be responsible for any losses or liability of any nature arising from or in connection with reliance, in whole or in part, on the contents of this document. Except as may otherwise be expressly indicated herein, LPC does not undertake any obligation to advise any recipient hereof of any changes or updates with respect to the information contained herein.

Interested parties should not rely on the statements or representations of fact as contained in this document, and are expected to conduct due diligence and independent verification of the information contained herein. Interested parties are encouraged to consult with their legal, financial, and tax advisers in evaluating the transaction described herein, as this document does not purport to be an exhaustive and/or definitive summary of all commercial, legal, and financial matters which may be material to your decision to proceed (or not to proceed) with the proposed transaction.

This document does not constitute, in whole or in part, an offer by LPC or contract between LPC and any recipient hereof.