Cremona Light

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Real Estate Market -1st semester 2013 Lombardy - Italy

Index:

Introduction

Office real estate market Province and Municipality Lease Trend - Across the Globe

Retail real estate market Retail High-street market

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

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

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 Cremona Province

Cremona's business environment is an interesting mix of leading international players and, for the most part, small and micro enterprises in the agriculture and food processing sectors. These segments have remained economically stable in recent years as they are part of the real economy and are thus less exposed to periodic market ﬂuctuations and international crises. LOMBARDY Real Estate REPORT LOMBARDY Real Estate REPORT

Foreign companies percentage by sector

Precision mechanics equipment 4,31% 4,31% Food derivatives

Metalworking (inc, alloys) 4,31% 2,20% Other professional services

28,36% Other Plastic products 4,31%

Transport & logistics 6,51%

Metal production 6,51%

Electricity, gas & water 6,51%

Machinery & mechanical equipment 23,95% Wholesale trading 8,72%

Sources: ISTAT, Italian National Institute of Statistics

India Nigeria Ukraine Serbia Foreign Citizens Population 2% Tunisia 4% First 10 Nationalities China 4% 4% Sources: ISTAT, Italian National Institute of Statistics Ivory Coast 5% 47% Romania

Morocco 13%

17% Albania

Cremona’s GDP Trend

YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP 24.872,70 26.505,80 27.226,70 28.412,10 28.775,00 29.164,30 28.389,10 29.800,70 25.314,70 per capita-Euro

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

6 LOMBARDY Real Estate REPORT OFFICE real estate market

Cremona Province - Office Real Estate Value €/m²/year

The area has a strong agricultural and breeding industry dating back over a thousand years, a very high level of applied technology and a production level among the highest in the world. Frontella The stock of companies currently registered with the Chamber of Commerce is very stable, and statistics on

surplusMilan value per economic sphere reveal that Cremona's agriculture is very important to the regional San Donato economy: Milanese it has the highest percentage of the overall total in Lombardy (4.4%). Orzinuovi

Brescia Lodi

Pontevico

Average annual lease price

150 €/mq 130 €/mq 110 €/mq Codogno- 90 €/mq Pavia 70 €/mq Cremona

No oﬃce market

LEGEND

OFFICE CENTRE Piacenza ORIO AL SERIO AIRPORT Parma INFRASTRUCTURE UNDER CONSTRUCTION

ACTUAL INFRASTRUCTURE A4 HIGHWAY RAILWAY LINE Viadana

Cremona Municipality - Office Real Estate Values €/m²/year

Crema Crema 240 €/mq 300 €/mq 220 €/mq 240 €/mq Mantua Mantua 200 €/mq 220 €/mq 180 €/mq 200 €/mq 160 €/mq 180 €/mq 140 €/mq 160 €/mq 120 €/mq 140 €/mq 100 €/mq 120 €/mq 80 €/mq 100 €/mq

No o ce market No o ce market

Road Road

SS10 Highway SS10 Highway Min annual lease rate Max annual lease rate

17 LOMBARDY Real Estate REPORT 1st semester - 2013 Cremona Province

Lease Trend - Across The Globe

Lease rate €/sq.m/year

€ 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 Cremona Hong Kong Tokyo Beijing Delhi Singapore Shanghai Mumbai Kuala Lumpur Seoul Sydney Melbourne 0 Latin America- America-Canada Europe Asia Australia

Growth rates %

Beijing

20 Sao Paulo

10 Stockholm

5 New York Shanghai London Dubai Frankfurt Rome Cremona 0

-5 Moscow Barcelona Brussels Madrid Paris -10

Hong Kong -15

Vacancy rate %

31%

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 Cremona Prague Frankfurt Brussels Warsaw Moscow Madrid Paris London Latin America- America-Canada Europe Asia Australia

8 LOMBARDY Real Estate REPORT RETAIL real estate market Brescia city- Retail High streets

Corso Campi

Lease: 180-350 €/m²/year Examples of existing brands:

MaxMara - Sisley intimissimi - Swatch Max & Co -Motivi - TEZENIS Benetton - COSE - LIU-JO KIKO - SEPHORA

Historical Centre Zone

Pedestrian zone

9 LOMBARDY Real Estate REPORT 1st semester - 2013 Cremona Province

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

Italy Cremona Corso Campi

Lease Trends - 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 Cremona Corso Campi 355 350 350 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 r L J h M n B F Cremona S N e H a H o

10 LOMBARDY Real Estate REPORT INDUSTRIAL real estate market

Industrial Key Sectors Agriculture & Food processing Cosmetics Metalworks Engineering ICT Tourism

Cremona is a growing industrial territory and oﬀers a new industrial area of 1 million of m2 connected with intermodal transport system (by railway, roads and ﬂuvial transport), strategically located in the centre of the river Po valley. As well as historically more developed industrial sectors, metalworks engineering equipment exports are very common and substantial growth has been recorded in cosmetics.

Cremona province - industrial zones €/m²/year

Frontella LEGEND

LOGISTICS HUB Milan ACTUAL INFRASTRUCTURE San Donato A4 HIGHWAY Milanese Orzinuovi RAILWAY LINE

Average annual lease price

50 €/mq Brescia 40 €/mq Lodi 35 €/mq Pontevico 30 €/mq 25 €/mq

No/local market

Codogno- Pavia Cremona

Piacenza Parma

Viadana

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%.

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

EXPORT 3,256 Millions of € International trade 2012 IMPORT 3,055 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 T e t L I W a t s M M Brussels n u o a F G o Cremona t e a m B B R S P

A M . t S

12 LOMBARDY Real Estate REPORT HOTEL real estate market

Cremona Province - Hotel & touristic attractions

The province of Cremona has a lot to offer tourists, mainly thanks to its important art and cultural heritage and historical figures such as Stradivari. The city is the lutherie capital of the world and has a "music district" where you can find the famous theatres. For companies looking to invest in nature tourism, Cremona has an extensive cycle path network and a strong rowing tradition, being surrounded by greenery and situated by the river Po. Cremona is undoubtedly the world capital of the most worldwide famous violin makers (Stradivari, Guarneri, Amati) with a tradition still alive nowadays in more than 150 local workshops.

Pandino Crema

Soncino Crema

Brescia

Touristic attractions: LEGEND S.Giovanni in Croce Golf club Horse riding club Spa Cremona Hotels concentration number/municipality Piacenza Low High Parma

Pizzighettone Adda Park-South

Torre de Picenardi

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

Cremona Province - Tourist flows

Touristic Places Italians Foreigners Total Arrivals Night spent Arrivals Night spent Arrivals Night spent Cremona 29.823 46.890 22.869 38.599 52.692 85.489 Crema e Casalmaggiore 13.968 29.124 6.456 18.067 20.424 47.191

Other municipalities 94.568 167.491 12.196 30.113 106.764 197.604

TOTAL 138.359 243.505 41.521 86.779 179.880 330.284

Cremona 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 investment 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 45-70 45,80% 50-160 7522,65 - 11701,90 1.250,00 - 4.000,00 0,66 - 0,83 4 Stars Hotel 60-75 44,40% 50-160 9723,60 - 12154,50 1.600,00 - 5.120,00 0,58 - 0,84

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

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 opportunities 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. CREMONA 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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