MANTUA PROVINCE

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Real Estate Market -1st semester 2013 Lombardy - Italy

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MANTUA PROVINCE Real Estate Market -1st Semester 2013 Lombardy - Italy

Index:

Introduction

Office real estate market Municipality level Lease Trend - Across the Globe

Industrial real estate market Province level Europe prime industrial cities - lease rate

Retail real estate market Retail High-street market

Hotel real estate market Hotel & tourism attractions Tourism flows Hotel investment “Appeal” Index Austria Switzerland Slovenia France

ITALY

1 Lugano Maggiore lake Como lake lake

Varese Idro lake lake

Garda lake

LOMBARDY REGION

2 LOMBARDY Real Estate REPORT LOMBARDY Real Estate REPORT

Lombardy’s GDP

Year GDP 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 GDP 247.051,8 259.431,0 270.653,3 279.450,4 289.471,2 297.600,4 307.717,7 320.843,8 323.973,3 310.952,0 330.997 337.285,9 327.167,3 Millions of euro GDP 27.488,1 28.765,6 29.836,9 30.448,8 31.059,5 31.545,2 32.356,3 33.442,5 33.424,8 31.743,1 33.500 33.624,2 32.615,5 per capita-Euro

Source: ISTAT, Italian National Institute of Statistics

Provinces of Lombardy

Area Municipalities Province Population (km²) (n°)

Bergamo 1.098.740 2.723 244

Brescia 1.256.025 4.783 206

Como 594.988 1.288 160

Cremona 363.606 1.772 115

Lecco 340.167 816 90

Lodi 227.655 782 61

Mantua 415.442 2.339 70

Milan 3.156.694 1.575 134

Monza & Brianza 849.636 405 55

Pavia 548.307 2.965 190

Sondrio 183.169 3.212 78

Varese 883.285 1.199 141 Lombardy 9.917.714 23.860,62 Italy 60.626.442 301.340

Source: ISTAT, Italian National Institute of Statistics

3 LOMBARDY Real Estate REPORT LOMBARDY Real Estate REPORT

A51

A9

Lugano Maggiore lake Como lake lake A26 A22

Varese Idro lake PEDE lake MONTANA

Garda lake

BREBEMI A4 A4

A21

Borni- Mortara

A1 A7

Regional Road Transport System

4 Mantua Province

The province of Mantua is situated to the south-east of Milan. It occupies a strategic position near the capital of Lombardy, Veneto and Emilia regions. Mantua is economically prosperous with around 42,800 companies, many of them small enterprises. Almost half (42%) are in the agriculture and trade sectors. 59% are owned by individuals, while a lot of firms employ just one worker (46.7%) or 2-5 workers (28.5%). Only 0.3% of enterprises employ more than 100 workers. Mantua is an affluent province (it has 31,521.22 GDP per capita of Euro ) and is wide open to international markets. In 2011 exports reached a total value of Euro 5,380 million. LOMBARDY Real Estate REPORT LOMBARDY Real Estate REPORT

Foreign companies percentage by sector

2,60% Food derivatives Precision mechanics equipment 2,60% 2,60% Other professional services Metalworking (inc, alloys) 5,30% 26,30% Other Plastic products 5,30%

Transport & logistics 5,30%

Metal products 5,30%

Electricity, gas & water 7,90%

26,30% Wholesale trading Machinery & Mechanical equipment 10,50%

Source: ISTAT, Italian National Institute of Statistics

Philippines China 5% Brazil 5% Ghana 16% Foreign Citizens Population 5% First 10 Nationalities Bangladesh 8% Source: ISTAT, Italian National Institute of Statistics

Morocco 16% Tunisia 9%

Ukraine Romania 11% 13% Albania 12%

Mantua’s GDP Trend

YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP 29.088,80 30.151,80 30.034,90 31.953,50 32.048,10 33.085,60 31.897,10 32.596,80 27.951,70 per capita-Euro

Sources: ISTAT, Italian National Institute of Statistics - Unioncamere - G. Tagliacarne Institute

6 LOMBARDY Real Estate REPORT OFFICE real estate market

Mantua city

300 €/mq 220 €/mq 200 €/mq 240 €/mq 180 €/mq Lake 220 €/mq Lake 160 €/mq 200 €/mq 180 €/mq 140 €/mq 160 €/mq 120 €/mq 140 €/mq 100 €/mq 80 €/mq 120 €/mq 60 €/mq 100 €/mq

No o ce market No o ce market

Streets Streets

A4 Highway A4 Highway Min annual lease rate €/m²/year Max annual lease rate €/m²/year

Lease Trend - Across The Globe

€ 1400

1200

1000

800

600

400

200 Sao Paulo Rio de Janeiro San Francisco Bogota Vancouver Lima London Brussels Moscow Paris Frankfurt Warsaw Madrid Prague Budapest Mantua Hong Kong Tokyo Beijing Delhi Singapore Shanghai Mumbai Kuala Lumpur Seoul Sydney Melbourne 0 Latin America- America-Canada Europe Asia Australia

Vacancy rate

31% %

20

15

10

5 San Francisco Sao Paulo Rio de Janeiro Vancouver Bogota Lima Hong Kong Tokyo Beijing Delhi Singapore Shanghai Mumbai Kuala Lumpur Seoul Sydney Melbourne 0 Budapest Mantua Prague Frankfurt Brussels Warsaw Moscow Madrid Paris London Latin America- America-Canada Europe Asia Australia

7 1st semester - 2013 Mantua Province INDUSTRIAL real estate market

Industrial Key Sectors Agriculture & Food processing Home furnishings Textiles & Stockings Agricultural Woodworking engineering

The port of Mantua Valdaro is the natural terminus of the Mantua - Adriatic waterway and the most important intermodal and logistics base in eastern Lombardy. Its trimodal freight transport system is world-class. The quality of infrastructure and intermodal transport links places the province of Mantua at the forefront of logistics both in Lombardy and in Italy and greatly improves access to international markets. Aside from its strategic location, Mantua is blessed with natural resources and has a rich cultural and artistic heritage. The province thus offers plenty of opportunities for cultural tourism. The province of Mantua lies near the heart of Europe and pivotal international trading routes. As well, Mantua is near to the most important Italian logistics centres. Verona (the most important logistics base in northern Italy) is only 40 km away as well. Garda Lake

Brescia Mantua Province - industrial zones €/m²/year

Average annual lease price

Verona 50 €/mq 40 €/mq 35 €/mq 30 €/mq 25 €/mq

No/local market

Mantua LEGEND

LOGISTIC HUB Cremona ACTUAL INFRASTRUCTURE A22 HIGHWAY RAILWAY LINE

Ferrara

Modena Bologna

All values are expressed in € / sq m / year and may be increased or decreased up to 25% in relation to the characteristics and location of the property, the law, and the state of conserv -ation. In particular, the analyzed sample took into account property from 5,000 to 20,000 square meters for logistics. It must be considered that for properties with the courier / transport use values can vary from a minimum of 10% to a maximum of +40%.

8 LOMBARDY Real Estate REPORT

Agriculture & Food processing International trade The agriculture sector is crucial to the Mantua economy and its 2012 superb performance makes it an attractive area for investment. Ample space is still available for businesses looking for develop- ment opportunities along the supply chain. The success of agriculture is closely linked to the fortunes of the food process- ing industry, which makes excellent use of local produce.

Agricultural engineering

The fact that the majority of companies in this sector are small enterprises benefits investors in two ways: one, it guarantees a flexible and structured approach to production; and two, these small enterprises are ideally placed to network, which strength- ens their impact on foreign markets and helps them to meet different demands.

9 LOMBARDY Real Estate REPORT 1st semester - 2013 Mantua Province HOTEL real estate market

EXPORT 4,900 Millions of € International trade 2012 IMPORT 4,522 Millions of €

Europe prime industrial cities - lease rate €/m²/year

€ 140,00

€ 120,00

€ 100,00

€ 80,00

€ 60,00

€ 40,00

€ 20,00 l t t r v v s s e e a a a h n n n o o r g d i w i w w u i i l s i m m m e r l l r e n l u n n r c u g c t v o i r s a i b o o i e m f u a a b e a n r r g s o d o a d A s e n c K g l k o b d R d

O u r h u e P e h a a n l a n r r i s s t a n e B s r R k t Z h h D e r o e e o V a o c A a M P t t l s c c c r r Mantua T e t L I W a t s M M Brussels n u o a F G o t e a m B B R S P

A M . t S

10 LOMBARDY Real Estate REPORT RETAIL real estate market Mantua city- Retail High streets

Corso Umberto I

Lease: 200-290 €/m²/year Examples of existing brands: KiKo - LACOST - PINKO CALZEDONIA - LIU.JO - goldenpoint Luisa Spagnoli - GEOX -MaxMara Foot Locker - Tezenis SWAROVSKI - MAX&Co LACOSTE -Intimissimi

LAKE

LAKE

Historical Centre Zone

11 LOMBARDY Real Estate REPORT 1st semester - 2013 Mantua Province

Lease Rate - Milan City €/m²/year 100 130 160 1 2 2 270 300 330 360 390 420 450 480 510 530 Country City Prime street 90 1 0 40

Italy Mantua Corso Umberto I

Lease Rate - Across The Globe €/m²/year

Country City Prime Street 2011 2012 2013 China Hong Kong Causeway Bay 12,644 22,307 22,764 U.S.A New York Fifth Avenue 18,003 22,047 22,340 U.K London Oxford Street - West 9,353 13,406 13,103 France Paris Avenue des Champs-Elysées 7,310 10,375 11,229 Switzerland Zurich Bahnhofstrasse 7,997 8,164 8,216 Italy Mantua Corso Umberto I 300 300 290 Australia Sydney Pitt Street Mall 7,544 7,243 7,141 Belgium Brussels Rue Neuve 7,800 7,409 7,115 Russia Moscow Tverskaya 5,769 5,669 5,718 Japan Tokyo Ginza (Chuo Street ) 5,108 5,116 4,965 Germany Munich Kaufingerstraße 4,346 4,103 4,083 Germany Frankfurt Zeil 3,550 3,609 3,620 Germany Hamburg Spitalerstraße 3,157 3,483 3,470 Germany Berlin Tauentzienstraße 2,889 2,738 3,100 China Shanghai Nanjing Road West 2,730 2,772 2,851 China Beijing Wangfujing 2,152 2,495 3,324 S.Corea Seoul Myeongdong 2,085 2,090 2,062 Spain Madrid Puerta del Sol Preciados 2,303 2,487 2,343 India Delhi Khan Market 2,319 2,169 2,174 Brazil Rio de Janeiro Garcia D`Avila 1,340 1,532 1,570 U.A.E Dubai Sheikh Zayed Road 151 327 361

BRIC countries

Lease €/sqm/year 25,000 2011 2012 2013 20,000

15,000

10,000

5,000

0,000 i i l i t y k s s e e n h n h o o d g g r g w l i a i a h u i r r r l l y e r i c c r o n u n e r o i i h o b i o d m f u k n j a r e d o d s i c e n e g k o b o d u n P D e Y a s n e s u n B S n D u y K R o T a Z u R i o o w m B a a M r S M g Mantua r L J h M n B F S N e H a H o

12 LOMBARDY Real Estate REPORT HOTEL real estate market

Mantua Province - Hotel & touristic attractions

Mantua's historic power and influence under the Gonzaga family made it one of the main artistic, cultural, and especially musical hubs of Northern Italy and the country as a whole. Mantua is noted for its significant role in the history of opera, and the city is known for its architectural treasures and artifacts, elegant palaces, and medieval and Renaissance cityscape. Mantua is surrounded on three sides by artificial lakes created during the 12th century.

Monzambano Volta Mantovana Mantua

Touristic Attractions: LEGEND Golf club Horse riding club Verona Spa

Hotel concentration number/municipality

Low High Mantua

Mincio Park

Modena San Benedetto Po

Sabbioneta Curtatone

13 LOMBARDY Real Estate REPORT 1st semester - 2013 Mantua Province

Mantua Province - Tourist flows

Touristic places Italians Foreigners Total Arrivals Night spent Arrivals Night spent Arrivals Night spent Mantua 43.961 79.604 21.239 39.314 65.200 118.918

Alto Mantovano & 5.580 9.354 1.787 3.737 7.367 13.091 Sabbioneta Other Municipalities 49.915 109.642 19.533 43.442 69.448 153.084 TOTAL 99.456 198.600 42.559 86.493 142.015 285.093

Mantua City Centre - Hotel investment appeal index

A tool for evaluation of different investment options is highly essential for a safe investment. Due to this fact it is provided an appeal index for Hotel real estate investments in Italy. This Index indicates the appeal of invest- ment and initiation of a hotel business in a specific zone of the city. In calculation process of investment appeal Index many important parameters has been taken in to considera- tion among those we can mention ; Location in a city, annual occupational rate depending on the hotel stars, annual lease price, annual rooms revenue, room numbers, hotel services and so on.

Min Annual Lease price*3 Room revenue Room lease Hotel investment room revenue occupation rate*2 €/m2/year €/per year €/year appeal index /night*1

3 Stars Hotel 64-80 48,90% 80-120 8409,60 - 10512,00 2.000,00 - 3.000,00 0,71 - 0,76 4 Stars Hotel 80-100 49,30% 80-120 11388,00 - 14235,00 2.560,00 - 3.840,00 0,73 - 0,78 5 Stars 150 -170 47,70% 80-120 23323,50 - 25127,00 4.440,00 - 5.160,00 0,77 - 0,81 Hotel

Primary Sources *1- Booking.com™ *2- Istat, Italian National Institute Of Statistics - Federturismo Confindustria - Italian Hotel Monitor - Trademark Italy *3- World Capital

14

Phase 1 Our Expertise Identifying needs: - Location for your business - Type of property - Budget - Timing

Phase 2 RESEARCH AND SELECTION: A network of local real estate consultants, according to a speci c search criteria, individualize a series of real estate oppor- tunities in order to propose the best solutions to customers.

Phase 3 EVALUATION AND CONCLUSION OF THE CONTRACT: The client consider the best market opportunities to choose the one suits his needs and then formulate the lease or purchase proposal. The customer will be companied until the conclusion of the nal contract.

Phase 4 REAL ESTATE INVESTMENT: Completed the contractual de nition, World Capital individualizes, in the case of lease, the investor (private, company,

® real estate found etc) that is interested in purchasing the asset.

A G E N C Y - C O N S U LT IN G - P R O P E R T Y - IN V E S T M E N T Phase 5 EQUIPMENT, PLANNING, REALIZATION Piazza Maestri del Lavoro, 7 - 20063 Cernusco sul Naviglio (MI) AND COMPLEMENTARY SERVICES: Tel. +39 02 95305886 Based on the customer request, World www.worldcapital.it - [email protected] Capital provides technical advice about the property. MANTUA PROVINCE

Via Restelli, 3/7 (MI) 20124 Milan Tel. +39 02 87365130 Fax. +39 0 2 95305209

Neda Aghabegloo Research Department [email protected]

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