Valuation Report

VALUATION REPORT

Project Logo Comprising 3 Logistic Assets Located in Italy

Bank of America Merill Lynch International Limited

Valuation Date: 30 November 2017

In these terms and conditions (“Terms”) the following terms have the following meanings:

"Associated Person" means all associated partnerships, corporations and undertakings which carry the name (or related name) of CBRE and, as appropriate, its or their members, partners, shareholders, officers, employees and consultants;

"Client" means Bank of America any of its subsidiaries or companies within its group;

"CBRE" means CBRE;

"Properties" means those forming Project Logo and Camelot;

"Reports" means the summaries of the Properties prepared by us for the Client (including any schedules, annexures, appendices and/or attachments thereto);

"Transaction" means the transaction defined as such in the Heads.

1. CBRE understands that you wish to be provided with copies of the Reports. CBRE and the Client have authorised that copies of the Reports be provided to you subject to these Terms.

2. In consideration of CBRE and the Client agreeing to make the Reports available to you, you hereby agree and acknowledge for the benefit of CBRE, the Client and any Associated Person that:

a. CBRE’s work in preparing the Reports was undertaken, and such Reports were produced, solely in accordance with the terms of CBRE’s engagement agreed with the Client or relevant addressee(s), and in respect of the Reports, constitute Reports to the Client or relevant addressee(s) alone;

b. CBRE will not enter into any further correspondence or communication with you in relation to the Reports, nor will the Reports be updated to take account of any events or circumstances arising after the date of such Reports;

c. in providing you with copies of the Reports, neither CBRE nor any other Associated Person has or assumes any responsibility or liability to you, or any of your directors, officers, partners, agents, employees or advisers, whether in contract, tort (including negligence) or otherwise;

d. the Reports are provided to you for information only as set out in the next sub- paragraph, you cannot and will not rely on the Reports or any facts, findings or information contained within them, and it is for you to form your own view or take your own property and other professional advice in connection with your entering into the Transaction independently of and without any reliance on the Reports;

e. the Reports are provided to you only for the limited purpose of assisting you to familiarise yourself with the Properties, and you will only use the Reports for that limited purpose. CBRE makes no representations and gives no warranties as to the

accuracy or otherwise of any of the facts or other information set out in the Reports; f. the Client and its respective directors, officers, employees and agents have no liability or responsibility to you in connection with the Reports; g. subject to the next sub-paragraph, you will keep the Reports strictly confidential and will not:

i. disclose or pass the Reports, in whole or in part, to any third parties by any means; or

ii. quote or refer to the Reports, in whole or part, in any communication with any third parties,

and neither CBRE, nor any Associated Persons nor the Client accept liability or responsibility to any third party who may gain access to the Reports; and h. you may:

i. disclose the Reports, in whole or in part, if compelled to do so by law, regulation or the order of a court of competent jurisdiction (but then only to the extent of such compulsion);

ii. disclose any information contained in the Reports to the extent that you can demonstrate that it is already in the public domain, other than by reason of a breach of any provision of these Terms by you or by any person you are permitted to disclose such information to pursuant to the terms of these Terms;

iii. provide copies of the Reports or any part thereof to your professional advisers for the purposes of seeking advice in relation to the Transaction and provided that in such a case, such advisers each confirm in writing to you that they will keep the Reports strictly confidential and will not disclose the Reports or any findings or information contained within them, any such disclosure to your professional advisers also being conditional on their written acknowledgement to you that neither CBRE nor any other Associated Person nor the Client nor its respective directors, officers, employees and agents accepts any responsibility or liability to them in respect of the Reports. You will on demand provide CBRE with a certificate to that effect;

iv. with CBRE’s and the Client’s prior written consent, disclose the Reports to such other person and on such terms as CBRE or the Client may specify; and i. some or all of the Reports may contain price sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and you undertake not to use any Report for any unlawful purpose.

3. The provisions of these Terms do not operate to exclude or limit any liability (including fraud) to the extent that any such liability may not be excluded or limited by law.

4. If a provision of these Terms is found to be illegal, invalid or unenforceable, then, to the extent it is illegal, invalid or unenforceable, that provision will be given no effect and will be treated as though it were not included, but the validity or enforceability of the remaining provisions of these Terms agreement will not be affected.

5. CBRE, the Client, and any Associated Person may enforce these Terms directly against you subject to and in accordance with these Terms. No other person has any rights to enforce any of these Terms.

6. These Terms may not be varied or terminated without CBRE’s and the Client’s prior written consent and, subject to such consent being received, these Terms may be varied or terminated without the consent of any Associated Person.

7. By accepting these Terms, you agree to be bound by them and you further represent that you have the authority to do so on behalf of your employer or the entity that you represent.

8. These Terms are governed by, construed and take effect in accordance with the laws of England and Wales.

9. The courts of England and Wales have exclusive jurisdiction to settle any claim, dispute or matter of difference which may arise in any way whatsoever out of or in connection with these Terms or the legal relationships established by these Terms.

VALUATION REPORT 2

TABLE OF CONTENTS

1 VALUATION REPORT

2 SCHEDULE OF VALUES

3 PROPERTY REPORTS

4 MARKET REPORT

5 LETTER OF INSTRUCTION

6 ARGUS FILES

The contents of this Report may only be relied upon by:

(i) Addressees of the Report; or

(ii) Parties who have received prior written consent from CBRE in the form of a reliance letter.

This Report is to be read and construed in its entirety and reliance on this Report is strictly subject to the disclaimers and limitations on liability on page 17. Please review this information prior to acting in reliance on the contents of this Report. If you do not understand this information, we recommend you seek independent legal counsel.

VALUATION REPORT 3

1 VALUATION REPORT

VALUATION REPORT 4

VALUATION REPORT

CBRE Limited Henrietta House Henrietta Place London W1G 0NB U.K. Switchboard +44 (0) 20 7182 2000 Fax + 44 (0) 20 7182 2001

Report Date 30 November 2017

Addressee Bank of America Merrill Lynch International Limited 2 King Edward Street London EC1A 1HQ For the attention of: Wayne R. Miller, FRICS, MAI, AI-GRS Senior Vice President This report may be relied upon by Bank of America Merrill Lynch International Limited and its affiliates, successors and/or assigns; the selected Facility Agent, its successors and/or assigns; and the selected Security Agent, 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 arranger of the Loan Financing and their assigns, 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 (together the "Beneficiaries"). A Beneficiary shall be permitted to rely on the report only on the condition that it acknowledges that the valuers shall not be liable to the Beneficiary for any special, indirect or consequential, damages and that the valuers' total aggregate liability to all lenders, agents, Beneficiaries and any other third party who seeks to rely on the report (the "Aggregate Cap") shall be limited

VALUATION REPORT 5

to a sum not to exceed the lesser of 25% of the market value or twenty million pounds (20,000,000 GBP). Reliance by the Beneficiaries and any other third parties on the report shall constitute deemed acceptance of the above provisions in this paragraph and that any matters or disputes arising as a result shall be governed by English law and subject to the exclusive jurisdiction of the English courts. This report may be disclosed, without reliance, to any rating agency in connection with a Securitization." 2) Also, for letter of transmittal: "Bank of America Merrill Lynch makes no warranties or representations regarding this document or the conclusions contained herein."

The Properties The portfolio consists of 3 Logistics Assets in Italy

Property Description As indicated in our property report below.

Ownership Purpose Investment

Instruction To value the unencumbered freehold interest in the properties on the basis of Market Value as at the valuation date in accordance with the terms of engagement entered into between CBRE and the addressee(s) dated 17 November 2017.

Valuation Date 30 November 2017

Capacity of Valuer External Valuer, as defined in the RICS Valuation – Global Standards 2017

Purpose Secured Lending

Market Value EUR 56,120,000 (FIFTY SIX MILLION ONE HUNDRED TWENTY THOUSAND EUROS) excluding VAT, as shown in the Schedule of Capital Values set out below.

Where a property is owned by way of a joint tenancy in a trust for sale, or through an indirect investment structure, our valuation represents the relevant apportioned percentage of ownership of the value of the whole property, assuming full management control. Our valuation does not necessarily represent the 'Market Value' of the interests in the indirect investment structure through which the property is held.

VALUATION REPORT 6

Our opinion of Market Value is based upon the Scope of Work and Valuation Assumptions attached, and has been primarily derived using comparable recent market transactions on arm’s length terms.

Suitability of the We are of the opinion that the property interests property as security provide suitable security for mortgage purposes for mortgage although we have not been provided with the terms of purposes the loan in contemplation and cannot therefore comment on their suitability having regard to the nature of the Properties.

Compliance with The valuation has been prepared in accordance with Valuation Standards the RICS Valuation – Global Standards 2017 including the International Valuation Standards and the RICS Valuation – Professional Standards UK January 2014 (revised April 2015) (“the Red Book”).

We confirm that we have sufficient current local and national knowledge of the particular property market involved, and have the skills and understanding to undertake the valuation competently. Where the knowledge and skill requirements of The Red Book have been met in aggregate by more than one valuer within CBRE, we confirm that a list of those valuers has been retained within the working papers, together with confirmation that each named valuer complies with the requirements of The Red Book. This Valuation is a professional opinion and is expressly not intended to serve as a warranty, assurance or guarantee of any particular value of the subject property. Other valuers may reach different conclusions as to the value of the subject property. This Valuation is for the sole purpose of providing the intended user with the Valuer’s independent professional opinion of the value of the subject property as at the valuation date.

Assumptions The property details on which each valuation is based are as set out in this report. We have made various assumptions as to tenure, letting, town planning, and the condition and repair of buildings and sites – including ground and groundwater contamination – as set out below.

VALUATION REPORT 7

If any of the information or assumptions on which the valuation is based are subsequently found to be incorrect, the valuation figures may also be incorrect and should be reconsidered.

Special Assumption EUR 46,880,000 (FORTY SIX MILLION EIGHT HUNDRED Vacant Possession EIGHTY THOUSAND EUROS) excluding VAT, as shown in Value the Schedule of Capital Values set out below.

None. Variation from Standard Assumptions

Verification We recommend that before any financial transaction is entered into based upon these valuations, you obtain verification of any third-party information contained within our report and the validity of the assumptions we have adopted.

We would advise you that whilst we have valued the Properties reflecting current market conditions, there are certain risks which may be, or may become, uninsurable. Before undertaking any financial transaction based upon this valuation, you should satisfy yourselves as to the current insurance cover and the risks that may be involved should an uninsured loss occur.

Valuer The Property has been valued by a valuer who is qualified for the purpose of the valuation in accordance with the Red Book.

Conflicts of Interest As you are aware, being disclosed at the time of quotation, CBRE were involved from a from a Capital Market perspective at the time of the most recent sale. We have disclosed the relevant facts to you and the other clients involved, and have received everyone's unconditional to continue with this instruction. We certify that, to the best of our knowledge and belief: - The statements of fact contained in this report are true and correct.

VALUATION REPORT 8

- The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. - We have no present or prospective interest in the properties that is the subject of this report and no personal interest with respect to the parties involved. - We have no bias with respect to the properties that is the subject of this report or to the parties involved with this assignment. - Our engagement in this assignment was not contingent upon developing or reporting predetermined results. - Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this valuation (appraisal). - Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, only insofar as this is also in conformity with the RICS Valuation – Professional Standards (the “Red Book"). - We have made a personal inspection of the properties that are the subject of this report. - No one provided significant real property valuation (appraisal) assistance to the persons signing this certification.

Reliance This report is for the use only of the party to whom it is addressed for the specific purpose set out herein and no responsibility is accepted to any third party for the whole or any part of its contents.

Publication Neither the whole nor any part of our report nor any references thereto may be included in any published document, circular or statement nor published in any way without our prior written approval of the form and context in which it will appear.

VALUATION REPORT 9

Such publication of, or reference to this report will not be permitted unless it contains a sufficient contemporaneous reference to any departure from the Royal Institution of Chartered Surveyors Valuation – Professional Standards or the incorporation of the special assumptions referred to herein.

Yours faithfully Yours faithfully

Silvia Sassateli MRICS Graham Hughes MRICS Associate Director Executive Director Registered Valuer RICS Registered Valuer For and on behalf of For and on behalf of CBRE CBRE Limited

T: 020 7182 2631 T: 00 39

E: [email protected] E: [email protected]

CBRE – Valuation & Advisory Services T: 020 7182 2000 F: 020 7182 2273 W: www.cbre.co.uk

SCOPE OF WORK & SOURCES OF INFORMATION

Sources of We have carried out our work based upon information Information made available to us within the Project Logo Dataroom. Information included Tenancy/Cost Schedules together within Environment and Technical Due Dillagence Reports and CAPEX schedules.

The Property Our report contains a brief summary of the property details on which our valuation has been based.

Inspection The properties were inpected at the end of November and beginning of December 2017. Please refer to the individual property reports for specific inspection dates.

The inspections were undertaken by a combination of Lorena De Lorenzi, Peter Beatty, Graham MacMillan, Stephanie Chan, Antonio Montemurro and Laura Lenzi of CBRE.

Areas We have relied upon floor areas provided to us by the borrower, which we assume to be correct and comprehensive and which we understand have been calculated in accordance to best Italian market practices using the Gross Leasable Area (GLA)

Environmental Please refer individual property reports for explicit Matters environmental matters. We have not carried out any investigation into the past or present uses of the Property, nor of any neighbouring land, in order to establish whether there is any potential for contamination and have therefore assumed that none exists.

We understand that all main services including water, drainage, electricity and telephone are available to the properties. None of the services has been tested by us.

Services and Please refer individual property reports for explicit Amenities services and amenities. We have not carried out building surveys, tested services, made independent site investigations, inspected woodwork, exposed parts of the structure which were covered, unexposed or inaccessible, nor arranged for any investigations to be

carried out to determine whether or not any deleterious or hazardous materials or techniques have been used, or are present, in any part of the Property. We are unable, therefore, to give any assurance that the Property is free from defect.

Repair and Condition Please refer individual property reports for information regarding repair and condition.

Town Planning We have made online Planning enquiries only. Information supplied to us by planning officers is given without liability on their part and we cannot therefore accept responsibility for incorrect information or for material omissions in the information supplied to us.

Titles, Tenures and We have not conducted credit enquiries on the Lettings financial status of any tenants. We have, however, reflected our general understanding of purchasers’ likely perceptions of the financial status of tenants.

VALUATION ASSUMPTIONS

Capital Values The valuation has been prepared on the basis of “Market Value” which is defined as:

“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". No allowances have been made for any expenses of realisation nor for taxation which might arise in the event of a disposal. Acquisition costs have not been included in our valuation.

The valuation represents the figure that would appear in a hypothetical contract of sale at the valuation date. No adjustment has been made to this figure for any expenses of acquisition or realisation - nor for taxation which might arise in the event of a disposal.

No account has been taken of any inter-company leases or arrangements, nor of any mortgages, debentures or other charges.

No account has been taken of the availability or otherwise of capital based Government or European Community grants.

Rental Values Rental values indicated in our report are those which have been adopted by us as appropriate in assessing the capital value and are not necessarily appropriate for other purposes nor do they necessarily accord with the definition of Market Rent.

The Property Where appropriate we have regarded the shop fronts of retail and showroom accommodation as forming an integral part of the building.

Landlord’s fixtures such as lifts, escalators, central heating and other normal service installations have been treated as an integral part of the building and are included within our valuations.

Process plant and machinery, tenants’ fixtures and

specialist trade fittings have been excluded from our valuations.

All measurements, areas and ages quoted in our report are approximate.

Environmental In the absence of any information to the contrary, we Matters have assumed that:

(a) the Property is not contaminated and is not adversely affected by any existing or proposed environmental law;

(b) any processes which are carried out on the Property which are regulated by environmental legislation are properly licensed by the appropriate authorities.

(c) in England and Wales, the property possesses current Energy Performance Certificates (EPCs) as required under the Government’s Energy Performance of Buildings Directive, and that they have an energy efficient standard of ‘E’, or better. We would draw your attention to the fact that under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 it will be unlawful for landlords to rent out a business premise from 1st April 2017 unless the site has reached a minimum EPC rating of an ‘E’ or secured a relevant exemption. In Scotland, we have assumed that the property possesses current Energy Performance Certificates (EPCs) as required under the Scottish Government’s Energy Performance of Buildings (Scotland) Regulations, and that it meets energy standards equivalent to those introduced by the 2002 building regulations. We would draw your attention to the fact the Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016 came into force on 1st September 2016. From this date, building owners are required to commission an EPC and Action Plan for sale or new rental of non-domestic buildings bigger than 1,000 m2 that do not meet 2002 building regulations energy standards. Action Plans contain building improvement measures that must be implemented within 3.5 years, subject to certain exemptions.

(d) the properties are either not subject to flooding risk or, if they are, that sufficient flood defences are in place and that appropriate building insurance could be

obtained at a cost that would not materially affect the capital value.

Repair and Condition In the absence of any information to the contrary, we have assumed that:

(a) there are no abnormal ground conditions, nor archaeological remains, present which might adversely affect the current or future occupation, development or value of the property;

(b) the Property is free from rot, infestation, structural or latent defect;

(c) no currently known deleterious or hazardous materials or suspect techniques, including but not limited to Composite Panelling, have been used in the construction of, or subsequent alterations or additions to, the Property; and

(d) the services, and any associated controls or software, are in working order and free from defect.

We have otherwise had regard to the age and apparent general condition of the Property. Comments made in the property details do not purport to express an opinion about, or advise upon, the condition of uninspected parts and should not be taken as making an implied representation or statement about such parts.

Title, Tenure, Unless stated otherwise within this report, and in the Lettings, Planning, absence of any information to the contrary, we have Taxation and assumed that: Statutory & Local Authority requirements

(a) the Property possesses a good and marketable title free from any onerous or hampering restrictions or conditions;

(b) all buildings have been erected either prior to planning control, or in accordance with planning permissions, and have the benefit of permanent planning consents or existing use rights for their current use;

(d) all buildings comply with all statutory and local authority requirements including building, fire and health and safety regulations;

(e) only minor or inconsequential costs will be incurred if any modifications or alterations are necessary in order for occupiers of each Property to comply with the provisions of the Disability Discrimination Act 1995 (in Northern Ireland) or the Equality Act 2010 (in the rest of the UK);

(f) all rent reviews are upward only and are to be assessed by reference to full current market rents;

(g) there are no tenant’s improvements that will materially affect our opinion of the rent that would be obtained on review or renewal;

(h) tenants will meet their obligations under their leases, and are responsible for insurance, payment of business rates, and all repairs, whether directly or by means of a service charge;

(i) there are no user restrictions or other restrictive covenants in leases which would adversely affect value;

(j) where more than 50% of the floorspace of the Properties are in residential use, the Landlord and Tenant Act 1987 (the “Act”) gives certain rights to defined residential tenants to acquire the freehold/head leasehold interest in the Properties. Where this is applicable, we have assumed that necessary notices have been given to the residential tenants under the provisions of the Act, and that such tenants have elected not to acquire the freehold/head leasehold interest. Disposal on the open market is therefore unrestricted;

(k) where appropriate, permission to assign the interest being valued herein would not be withheld by the landlord where required; and

(l) vacant possession can be given of all accommodation which is unlet or is let on a service occupancy.

(m) Stamp Duty Land Tax (SDLT) – or, in Scotland, Land and Buildings Transaction Tax (LABTT) – will apply at the rate currently applicable.

LEGAL NOTICE

This valuation report (the “Report”) has been prepared by CBRE exclusively for Bank of America Merill Lynch International Limited (the “Client”) in accordance with the terms of engagement entered into between CBRE and the addressee(s) dated 10 August 2017 (“the Instruction”). The Report is confidential and it must not be disclosed to any person other than the Client without CBRE's prior written consent. CBRE has provided this report on the understanding that it will only be seen and used by the Client and no other person is entitled to rely upon it, unless CBRE has expressly agreed in writing. Where CBRE has expressly agreed that a person other than the Client can rely upon the report then CBRE shall have no greater liability to any party relying on this report than it would have had if such party had been named as a joint client under the Instruction.

CBRE’s maximum aggregate liability to all parties, howsoever arising under, in connection with or pursuant to reliance upon this Report, and whether in contract, tort, negligence or otherwise shall not exceed the lower of:

(i) 25% of the value of the property to which the Instruction relates on the date of the Valuation ; or

(ii) £20 million (Twenty Million Pounds); and

CBRE shall not be liable for any indirect, special or consequential loss or damage howsoever caused, whether in contract, tort, negligence or otherwise, arising from or in connection with this Report. Nothing in this Report shall exclude liability which cannot be excluded by law.

2 SCHEDULE OF VALUES

LOGO Market Value Property ID Address Total GFA (€) LOGO_1 Verona,14,Strada della Ferriera ,Verona,37135 8,480,000 8,452 LOGO_2 Chignolo,Via Generale Carlo Alberto dalla Chiesa,Chignolo,27013 18,590,000 40,024 LOGO_3 Milan Airport,24,Via Altiero Spinelli,Peschiera Borromeo,20068 29,050,000* 23,101

*The total Market Value for Milan Airport includes the separate car parking site. LOGO Market Value Property ID Address NIY RY EY psm LOGO_1 Verona,14,Strada della Ferriera ,Verona,37135 1,003.31 7.00% 6.46% 6.43% LOGO_2 Chignolo,Via Generale Carlo Alberto dalla Chiesa,Chignolo,27013 464.47 6.50% 6.74% 6.59% LOGO_3 Milan Airport,24,Via Altiero Spinelli,Peschiera Borromeo,20068 1,257.52 6.20% 6.20% 6.00%

*The total Market Value for Milan Airport includes*The the separatetotal Market car Valueparking for site. Milan Airport includes the separate car parking site. LOGO

Property ID Address VPV (€) ERC (€) LOGO_1 Verona,14,Strada della Ferriera ,Verona,37135 6,240,000 4,800,000 LOGO_2 Chignolo,Via Generale Carlo Alberto dalla Chiesa,Chignolo,27013 14,080,000 18,800,000 LOGO_3 Milan Airport,24,Via Altiero Spinelli,Peschiera Borromeo,20068 22,560,000 11,300,000

*The total Market Value for Milan Airport includes the separate car parking site. 19

3 PROPERTY REPORTS

PROPERTY ID: LOGO_1 - Verona ON BEHALF OF: BAML VALUATION DATE: 30/11/2017 FINAL 14, Strada della Ferriera, Verona, 37135, Italy

Active Property

Active Portfolio Valuation

VALUATION METRICS (currency - EUR) Metric Value Metric Value Market Value 8,480,000.00 Accomodation Area (sq m) 8,452.00 Market Value (per sq m) 1,003.31 WAULT to Break by Rent 2.17 Net Initial Yield 7.00% WAULT to Break by ERV 2.17 Reversionary Yield 6.46% WAULT to Expiry by Rent 2.17 Equivalent Yield 6.43% WAULT to Expiry by ERV 2.17 Gross Income 655,860.00 Percentage of Vacancy (Area) 0.00% Gross Income (per sq m) 77.60 Percentage of Vacancy (ERV) 0.00% Adj. Gross Income 655,860.00 Number of Tenants 1 Adj. Gross Income (per sq m) 77.60 Net Income 611,402.00 Net Income (per sq m) 72.34 RENT EXPIRY PROFILE Gross Rental Value 608,540.00 700,000 Gross Rental Value (per sq m) 72.00 600,000 Capital Expenditure -134,500.00 500,000 Transaction Costs 3.00% 400,000 Over / Under Rented 7.78% 300,000 Revenue Cost (day 1) -44,458.00 200,000

Gross Rent (EUR) Rent Gross 100,000 0 2017 2018 2019 2020 2021 2022 2023+ Year

Printed 14/12/2017 16:45 PROPERTY ID: LOGO_1 - Verona ON BEHALF OF: BAML VALUATION DATE: 30/11/2017 FINAL TOP 5 LEASES BY RENT Name Term to Break Term to Expiry Area (sq m) Current Rent ERV % of rent TNT (Fedex) 2.17 2.17 8,452 655,860 608,540 100.0%

Others 0 0 0 0.0% Vacant n/a n/a 0 n/a 0 n/a Total 2.17 2.17 8,452 655,860 608,540 100.0%

LEASE LENGTHS GROUPED BY... Vacant

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% < 1 yr

By Area, to break 1-3 yrs

By Area, to break Lease length by 3-6 yrs By Area, to expiry 6-9 yrs By Area, to expiry > 9 yrs

ASSET RATING Macro Asset Rating 1 Metric Value 2 Macro 3 3 Micro 2 Vacancy 4 Micro Asset Quality 3 5 Term to break 4 Vacancy 1

Average 2.6 5=Worst to 1=Best Term to break Asset Quality

Printed 14/12/2017 16:45 LOGO – 01 VERONA PROPERTY REPORT PAGE 1

Reference: LOGO 01

CROSS DOCKING WAREHOUSE Strada Della Ferriera 14 37135 VERONA Italy

LOGO – 01 VERONA PROPERTY REPORT PAGE 2

PROPERTY REPORT Cross Docking Warehouse – Strada Della Ferriera 14

Inspected by Date of Inspection Lorena De Lorenzi 29 November 2017

Location

 The subject property is located in the Municipality of Verona, in Northern Italy.  Verona has a population of 258,765 (2016 data) inhabitants and a land area of circa 200 square kilometres. Verona, together with its Province area, has a high level of economic and social development: a long-established industry, comprising almost all industry sectors, with a strong attitude for trading with other countries, a logistics Summary platform among the most efficient in Europe and an infrastructure system capable of attracting both domestic and international investments.  Verona is one of the capital cities of the Veneto Region, located some 150 kilometres east of Milan and about 100 kilometres from both Venice and Bologna.  The City benefits from a favourable location being at the crossroads of major motorways (A4 Turin – Trieste and A22 Modena – Brennero) and railways.

Situation

 The subject property is located in Strada della Ferriera, within a small industrial area to the very southern tip of the Verona Municipality.  The property is some 2,5 km from the A4 “Verona Sud” tollgate and 8 km from the A22 “Autostrada del Brennero” motorway junction. State and provincial roads include the SS12 Verona-Modena (north-south direction) and the SP434 Transpolesana, which is a 4-lane artery road linking the A4 and the A13 motorways.  As for public transport, Verona Porta Nuova is the nearest train station, some 8 km away from the subject property. Azienda Trasporti Verona S.r.l. provides bus connections both to the city centre and Verona’s surrounding municipalities. The Summary nearest bus stop is in Via Vigasio, approximately 1 kilometre away from the property. The closest airport is the “Valerio Catullo” Airport, which is just 10 km from the subject property.  The property benefits from a very good location considering both its current use (cross-docking facility) and tenant (express courier).  The surroundings are occupied by agricultural fields and a number of facilities, mainly logistics and light industrial, which have been recently developed along the A4 motorway, which runs in a kilometre span.  Apart from the local distribution centre of GLS (General Logistic Systems), the area comprises local businesses.

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Description

 The subject property is a build-to-suit warehouse which was completed in 2008. It comprises a single-level cross-docking facility with ancillary offices developed across two floors and two outbuildings (including the janitor’s lodge and some ancillary spaces for drivers), situated on a mostly rectangular shaped site . Internally the building is used as a cross-docking and last mile distribution facility. There is also office provision in a block located to the main front of the building. The office block is spread across two floors (ground and first). Please note that the site area has not been provided to us. Please note that we have not been provided with the site area of the property.  The building has a reinforced concrete frame structure and a flat concrete roof with bituminous waterproof system. External walls consist of vibrated pre-cast concrete panels. The main warehouse area has a clear height of 8 m. and a 12 x 21m column grid.  Lighting is from both LED lamps and natural light provided by translucent panels and ribbon windows installed along the building elevation. A battery charging room is available in the north-western corner of the building.  Loading bays are located on both the long sides of the building, 68 in total (55 for Light commercial vehicles (LCV) + 13 for Heavy goods vehicles (HGV)). Manoeuvring space is adequate. Summary  The office accommodation is used for the administration of the building. The space has different uses including separate private rooms for directors, meeting rooms, break areas and technical rooms. PVC-framed windows with internal blinds are installed within the office area.  The distribution facility is served by: - 68 raised loading docks - Artificial lighting – suspended LED spotlights. Natural lighting – translucent panels in both the building elevations and the roof - Fire extinguishing water storage and pressurization group serving the fire hydrants - Portable extinguishers and hose reels - TVCC system - Emergency power generator and UPS for the supply of emergency lighting  The office facilities are served by: - Solar water heaters (panels installed on the roof) - Raised floors with suspended ceilings - Artificial (fluorescent lighting) and natural lighting - Heating and air conditioning throughout provided by fan-coil units - A lift

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Floor Area

 We have relied on the information provided by Blackstone, including areas stated in the tenancy schedule, along with more detailed area breakdown of specific uses stated within a separate schedule.  We have cross-checked the areas against additional sources of information, including Technical Due Diligence prepared by JLL and where necessary, highlighted Summary material discrepancies. We have principally relied on areas within the tenancy schedule unless specifically requested otherwise.  The property extends to a gross lettable area (GLA) of 8,452 sq m, including cross- docking warehouse and ancillary office space. A detailed breakdown of the area is highlighted below.

Status Use Sq M Occupied by TNT (FedEx) Warehouse 7,028 Occupied by TNT (FedEx) Offices 1,424 TOTAL GLA 8,452

State of Repair

 At the time of our inspection undertaken for valuation purposes, the building appeared to be in reasonable condition commensurate with its age, use and construction. Summary  We observed nothing during our inspection that we consider would detrimentally impact the value or suitability of the property for secured lending purposes.  We have relied on the information provided by Blackstone, including Technical Due Diligence Report prepared by JLL. We have summarised the findings of the report below.

Environmental Considerations

 We have been provided with a Technical Due Diligence Report (TEDD) undertaken by JLL, which includes an Environmental assessment section.  Where necessary and based on information provided, we have allocated costs to Summary environmental remediation. We have assumed that no environmental risks exist which would have a material impact upon our opinion of value.

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Town Planning

 We have assumed that the Property benefits from all necessary planning consents Summary and that the current use is permitted under the designations imposed by the local authority

Tenure

 We have received confirmation from your legal advisers that the asset is held freehold equivalent. Further we have been provided with an updated version of the legal due diligence prepared by Allen & Overy dated 16th December. All issues highlighted within the same document are listed as low to medium risk as such we confirm have no detrimental effect on value. Summary

Tenancy

 The property is let in its entirely to TNT Global Express S.p.A. on the basis of an Italian commercial lease dated 1 February 2008 with a 6+6 year lease term. The current passing rent is €655,860 per annum, which we consider to be some 8% above our opinion of market rent. Currently, some 2.17 years remain to the end of the second lease term, with no break options.  TNT Global Express S.p.A. (TNT hereinafter) is one of the world’s largest delivery companies, operating in express shipments and road and air delivery services in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa. TNT, Summary which made €6.9 billion in revenue in 2015, was officially acquired by FedEx in 2016.  We consider that the property investment market would consider the covenants of the current tenant to be strong. Financial investigations are outside the scope of this instructions but we have assumed that investors would deem the tenant to be of good covenant strength.

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Market Rent

 We have provided commentary in the appendix of this report that highlights occupational demand for the region within which the subject property is located. This includes the most relevant comparable evidence of which we are aware in determining our opinion of Market Rent. We have also considered the evidence Summary highlighted by the letting of the subject property itself.  We are of the opinion that the Headline Market Rent is €608,544 per annum which equates to €72 per sq m per annum.  Based on the occupational evidence and characteristics of the property, we have adopted a blended ERV rate (equal to €72 per sq m p.a.) on the entire GLA.

Investment Evidence

 Please refer to the Investment Market commentary within the appendix of this report. This includes up to date discussion of the logistics market across Italy nationally and Summary associated evidence. In approaching our valuation, we have considered the sale of assets with similar characteristics and in similar locations to the subject property.

SWOT Analysis

Strengths Weaknesses  Good covenant strength of the current  Potential value falls as lease runs closer to tenant expiry.  Cross-docking facility of fairly recent  Poor provision of truck parking spaces construction (2007/08) within the property’s external area and in  Good provision of loading bays the immediate surroundings  Well-maintained building  Good accessibility to main Italian road  Build-to-suit building with specific building infrastructure (some 2,5 km to the A4 features (cross-docking facility) tollgate and 8 km to the A22 motorway  Property is currently circa 7% over market junction). rent.  The A4 Turin-Milan-Venice motorway is  WAULT of less than 3 years. recognized as a prime industrial/logistics communication road in Northern Italy.  Located within Verona, one of the main cities along the TEN-T “Scandinavian- Mediterranean” Corridor providing cross border north-south European communications.  Good location in strong logistics market (Verona Logistics Market).

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Opportunities Threats  Continued improvement in property market  Increasing competition within the Verona and strong demand for investments with Market good covenants.  Build-to-suit building with specific building features (cross-docking facility) that might reduce the pool of potential tenants.  100% income risk to a single tenant albeit a good covenant.

Liquidity (1 low – 5 high) 4. Although fully let broadly at market level, we consider low WAULT a potential risk. We would anticipate that the investment would attract investors such as property companies, REITs and funds. Opportunistic operators looking for immediate exposure in the logistics sector with a blend of opportunity and good underlying income would also look favourably at the subject property. Hence, we are of the opinion that the property could appeal a large pool of investors. As to the selling time, we assume a marketing time ranging between 9 to 12 months.

Valuation Methodology

 In determining our opinion of value we have adopted the traditional investment approach of valuation; reflecting the specific attributes of the building and lease Summary terms and having regard to the current occupational and investment market.  We highlight below the methodology adopted for the Market Value and Vacant Possession bases of valuation.

Market Value We have made the following allowances and assumptions in approaching our valuation.

 We have deducted non-recoverable costs, including management, property tax and insurance based on the information provided.  We have deducted immediate capital expenditure based on the Technical Due Diligence Report and additional information from the borrower.  We have deducted purchasers costs including Stamp Duty (2%) and Legal / Agents Fees (1%)

Having regarding to the characteristics of the property (location and income profile) we have targeted an Initial Yield of 7% which results in a total net value of €8,480,000, equating to a capital rate per sq m which falls within a reasonable range of the most comparable evidence.

A more detailed breakdown of the valuation metrics are available on the front page of this property report.

Vacant Possession Value Our approach is similar to the Market Value, including identical opinions of ERV, capex allowances and landlord costs. We have made the following additional assumptions and allowances:

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- Assumed the property is entirely vacant and allowed for a 12 month current void and 6 months rent free (or equivalent incentive) on a new 6 year lease. - We have incorporated additional costs, including letting fees (15% of annual rent) and further landlord shortfall amounting to €0.50 per sq m per month over the vacant space.

We have increased the yield to reflect the additional risk, adopting an Equivalent Yield of 7.5%, resulting in a total value of €6,240,000, equating to a capital rate of €738 per sq m.

Estimated Reinstatement The property has not been inspected by a suitably qualified building Cost Assessment (RCA) surveyor from CBRE, nor have we carried out a full Reinstatement Cost Assessment. For indicative purposes only we estimate that the reinstatement cost of the property for fire insurance purposes would be in the region of € 4,800,000 on a day one basis, including fees but excluding VAT and inflation. This figure should be compared with the current sum insured and if a material discrepancy exists we suggest that a full Reinstatement Cost Assessment is carried out.

PROPERTY ID: LOGO_2 - Chignolo ON BEHALF OF: BAML VALUATION DATE: 30/11/2017 FINAL Via Generale Carlo Alberto dalla Chiesa, Chignolo, 27013, Italy

Active Property

Active Portfolio Valuation

VALUATION METRICS (currency - EUR) Metric Value Metric Value Market Value 18,590,000.00 Accomodation Area (sq m) 40,024.00 Market Value (per sq m) 464.47 WAULT to Break by Rent 2.59 Net Initial Yield 6.50% WAULT to Break by ERV 2.59 Reversionary Yield 6.74% WAULT to Expiry by Rent 5.58 Equivalent Yield 6.59% WAULT to Expiry by ERV 5.58 Gross Income 1,395,180.00 Percentage of Vacancy (Area) 0.00% Gross Income (per sq m) 34.86 Percentage of Vacancy (ERV) 0.00% Adj. Gross Income 1,395,180.00 Number of Tenants 1 Adj. Gross Income (per sq m) 34.86 Net Income 1,244,690.00 Net Income (per sq m) 31.10 RENT EXPIRY PROFILE Gross Rental Value 1,440,900.00 1,600,000 Gross Rental Value (per sq m) 36.00 1,400,000 Capital Expenditure -314,000.00 1,200,000 Transaction Costs 3.00% 1,000,000 Over / Under Rented -3.17% 800,000 Revenue Cost (day 1) -150,490.00 600,000 400,000

Gross Rent (EUR) Rent Gross 200,000 0 2017 2018 2019 2020 2021 2022 2023+ Year

Printed 14/12/2017 16:45 PROPERTY ID: LOGO_2 - Chignolo ON BEHALF OF: BAML VALUATION DATE: 30/11/2017 FINAL TOP 5 LEASES BY RENT Name Term to Break Term to Expiry Area (sq m) Current Rent ERV % of rent Carrefour 2.59 5.58 40,024 1,395,180 1,440,900 100.0%

Others 0 0 0 0.0% Vacant n/a n/a 0 n/a 0 n/a Total 2.59 5.58 40,024 1,395,180 1,440,900 100.0%

LEASE LENGTHS GROUPED BY... Vacant

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% < 1 yr

By Area, to break 1-3 yrs

By Area, to break Lease length by 3-6 yrs By Area, to expiry 6-9 yrs By Area, to expiry > 9 yrs

ASSET RATING Macro Asset Rating 1 Metric Value 2 Macro 3 3 Micro 2 Vacancy 4 Micro Asset Quality 3 5 Term to break 3 Vacancy 1

Average 2.4 5=Worst to 1=Best Term to break Asset Quality

Printed 14/12/2017 16:45 LOGO 2 – LOGISTICS PROPERTY – CHIGNOLO PO PROPERTY REPORT PAGE

Reference: LOGO 2

Logistics property Via Generale Carlo Alberto Dalla Chiesa Chignolo Po (PV) Italy

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PROPERTY REPORT LOGISTICS PROPERTY – CHIGNOLO PO

Inspected by Date of Inspection Antonio Montemurro 28 November 2017

Location

 The subject property is located in the western peripheral area of Chignolo Po and precisely along the SP32 reachable from Via Generale Carlo Alberto dalla Chiesa.  Chignolo Po is an Italian municipality counting some 4,000 inhabitants in the province of Pavia, in the Lombardy Region. The municipality includes also the localities of Lambrinia, Alberone and Bosco.

Summary  Located some 60 Km distance from Milano, some 30 Km from Pavia and Piacenza, the subject area is easily reachable through the national road S.S. n. 234 Mantovana, primary communication axis between the municipalities of Pavia and Casalpusterlengo, until the junction of “Casalpusterlengo” along the motorway A1 “Milano-Napoli” (located some 15 km distance), and the junction “Castelsangiovanni” along the motorway A21 “Torino–Piacenza” and S.S. n. 9 Via Emilia.

Situation

 The subject property consists of a land lot characterised by the presence of a wide logistics property constructed in 2006 which, according to the Technical Due Dilligence report issued by JLL on 26th November 2016 on behalf of Logicor, develops on a gross floor area of 40,024 sq m in addition to a future Expansion Area of about 37,100 sq m located in front of the building.  The almost regular shape lot is delimited by a metallic fence with pedestrian entrances and janitor’s lodge along Via Generale Carlo Alberto Dalla Chiesa.  The subject area is well served by primary road infrastructures, motorways and railway lines; this location is logistically interesting and well known at national level, considering the presence of important logistics settlements. In fact, it is possible to find numerous big size properties settled in the subject area between the province of Summary Piacenza and the eastern area of Pavia bordering with Piacenza.  The municipality presents the typical features of a rural town characterised by an urban centre surrounded by numerous agricultural companies with wide cultivated fields and rural buildings used for the agricultural activity. The industrial properties are few, while it is possible to find numerous logistics settlement near the toll booth “Casalpusterlengo” (Ceva Logistics, Lidl, Number1 Logistics, H&M, Bticino).

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Description

The subject property consists of:  Warehouse used as storage constructed in 2014 with clear height of 10.50 m, arranged over one floor above ground, with pre-cast reinforced concrete bearing structure with pillar structure measuring12 m X 19 m and shed roof with aluminium window frames and thermal break glasses. It is internally split into 4 units and presents pre-cast reinforced concrete panel walls, painted aluminium window frames with thermal break glasses, concrete flooring. The property is provided with no. 37 loading bays, with PVC sectional doors, on both fronts (cross-docking); please note that, on the rooftop, a photovoltaic plant (not subject to valuation) has been installed pursuant to a 25-year surface right. The property is fully let to Carrefour;  Minor unit arranged over one floor above ground located within the warehouse near the northern corner, housing offices, toilets and dressing room;

Summary  Minor units housing technical premises located outside the warehouse in addition to a janitor’s lodge at the entrance of the property;  An external paved area of some 28,163 sq m, used as manoeuvring area and car park;  A future Expansion Area of about 37,100 sq m that will be subject to a future warehouse expansion as requested by the Tenant;  The industrial technical equipment of the logistics property includes: air conditioning system for the office portion provided with heat pumps; electric and lighting system; water and sanitary system; fire prevention system including smoke detectors, sprinkler units, fire hoses and an external and internal hydrants’ ring; telephone and data system; anti-intrusion system with perimeter sensors and a video-surveillance system.  Please note that we have not been provided with the site area of the property.

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Floor Area

 We have relied on the information provided by Blackstone, including areas stated in the tenancy schedule, along with more detailed area breakdown of specific uses stated within a separate schedule.  We have cross-checked the areas against additional sources of information, including Technical Due Diligence prepared by JLL and where necessary, highlighted Summary material discrepancies. We have principally relied on areas within the tenancy schedule unless specifically requested otherwise.  The property extends on a gross lettable area (GLA) of 40,024 sq m, including logistics and a small office space. A detailed breakdown of the area is highlighted below:

Status Use Sq M Occupied Warehouse 40,024 Occupied External area 28,163 TOTAL GLA 40,024

State of Repair

 At the time of our inspection undertaken for valuation purposes, the building appeared to be in reasonable condition commensurate with its age, use and construction.  We observed nothing during our inspection that we consider would detrimentally Summary impact the value or suitability of the property for secured lending purposes.  We have relied on the information provided by Blackstone, including Technical Due Diligence Report prepared by JLL. Based on the conclusion of the report, we have adopted an immediate (1 year) capital expenditure figure of €314,000 with our valuation.

Environmental Considerations

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Town Planning

 We have assumed that the Property benefits from all necessary planning consents Summary and that the current use is permitted under the designations imposed by the local authority.

Tenure

Summary

Tenancy

 According the documentation provided by Blackstone (Tenancy Schedule 24.11.17 file Top up schedule) the property is currently fully let to Carrefour, with a 9-years’ lease starting from 1 July 2014 until 30 June 2023, with break option on 1 July 2020.  The rent of € 1,380,000.00 per annum plus VAT is based on a GLA of 40,024 sq m. The passing rent is in line with the market level considering the subject typology and wide size.  We believe that the property investment market would view the tenant company as Summary providing good security. At the same time, considering the building features of the subject property, build-to-suit warehouse for the current tenant, we are of the opinion that the tenant will not exercise the break option and will stay within the premises.  Financial investigations are outside the scope of this instructions but we have assumed that investors would deem the tenant to be of good covenant strength.

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Market Rent

 We have provided commentary in the appendix of this report that highlights occupational demand for the region within which the subject property is located. This includes the most relevant comparable evidence of which we are aware in determining our opinion of Market Rent. We have also considered the evidence highlighted by the letting of the subject property itself. Summary  We are of the opinion that the Headline Market Rent is €1,440,864 per annum which equates to 36 €/ sq m per annum.  Based on the occupational evidence and characteristics of the property, we have adopted a blended ERV rate of 36 €/sq m for the entire accommodation.

Investment Evidence

SWOT Analysis

Strengths Weaknesses  Freehold.  Limited provision of office spaces;  Full let to a good covenant.  Despite its proximity the A1 motorway, the  Excellent state of maintenance and repair subject property is far from the junction considering the recent age of construction “Casalpusterlengo” compared with other (2014) logistics properties.  Location near the motorway tool booth

“Casalpusterlengo” along the motorway A1 (Autostrada del Sole);  Cross-docking

Opportunities Threats  Ongoing improvement in property market  Uncertain take-up in case of release of the and strong demand for investments with property by the current tenants at lease good covenants. expiry.  Asset suitable for multi-tenant purpose (already split-up in four units).  Potential enlargement of the building given the remaining building capability of the lot to the east of the property.

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Liquidity (1 low – 5 high) 4. Although fully let broadly at market level, we consider the secondary location along a provincial road in the Pavia Province and the long expiry term a low risk. Besides, the building is in line with the current logistics market requests with clear heights above 10 m and cross- docking. We are of the opinion that if the property were to be offered on the market, the most likely buyers would be Italian property companies or funds, maybe with some interest from European and International purchasers from the same investor groups. As a general view, the latest deals have seen very medium negotiation timing, up to 6 months.

Valuation Methodology

Market Value We have made the following allowances and assumptions in approaching our valuation.

Having regarding to the characteristics of the property (location and income profile) we have targeted an Initial Yield of 6.50% which results in a total net value of €18,590,000, equating to a capital rate per sq m which falls within a reasonable range of the most comparable evidence.

A more detailed breakdown of the valuation metrics are available on the front page of this property report.

We have increased the yield to reflect the additional risk, adopting an Equivalent Yield of 7.5%, resulting in a total value of €14,080,000, equating to a capital rate of €351 per sq m.

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Estimated Reinstatement The property has not been inspected by a suitably qualified building Cost Assessment (RCA) surveyor from CBRE, nor we have carried out a full Reinstatement Cost Assessment. For indicative purposes only, we estimate that the reinstatement cost of the property for fire insurance purposes would be in the region of € 18,800,000 on a day one basis, including fees but excluding VAT and inflation. This figure should be compared with the current sum insured and if a material discrepancy exists, we suggest that a full Reinstatement Cost Assessment is carried out.

PROPERTY ID: LOGO_3 - Milan Airport ON BEHALF OF: BAML VALUATION DATE: 30/11/2017 FINAL 24, Via Altiero Spinelli, Peschiera Borromeo, 20068, Italy

Active Property

Active Portfolio Valuation

VALUATION METRICS (currency - EUR) Metric Value Metric Value Market Value 29,050,000.00 Accomodation Area (sq m) 23,101.00 Market Value (per sq m) 1,257.52 WAULT to Break by Rent 1.09 Net Initial Yield 6.20% WAULT to Break by ERV 1.09 Reversionary Yield 6.20% WAULT to Expiry by Rent 2.75 Equivalent Yield 6.00% WAULT to Expiry by ERV 2.75 Gross Income 2,024,235.00 Percentage of Vacancy (Area) 0.00% Gross Income (per sq m) 87.63 Percentage of Vacancy (ERV) 0.00% Adj. Gross Income 2,024,235.00 Number of Tenants 2 Adj. Gross Income (per sq m) 87.63 Net Income 1,854,443.00 Net Income (per sq m) 80.28 RENT EXPIRY PROFILE Gross Rental Value 2,024,000.00 2,500,000 Gross Rental Value (per sq m) 87.62 Capital Expenditure -70,000.00 2,000,000 Transaction Costs 3.00% 1,500,000 Over / Under Rented 0.01% Revenue Cost (day 1) -169,792.00 1,000,000

500,000 Gross Rent (EUR) Rent Gross 0 2017 2018 2019 2020 2021 2022 2023+ Year

Printed 14/12/2017 16:45 PROPERTY ID: LOGO_3 - Milan Airport ON BEHALF OF: BAML VALUATION DATE: 30/11/2017 FINAL TOP 5 LEASES BY RENT Name Term to Break Term to Expiry Area (sq m) Current Rent ERV % of rent TNT (Fedex) 1.09 2.75 23,100 1,938,235 1,938,000 95.8% TNT (Fedex) 1.09 2.75 1 86,000 86,000 4.2%

Others 0 0 0 0.0% Vacant n/a n/a 0 n/a 0 n/a Total 1.09 2.75 23,101 2,024,235 2,024,000 100.0%

LEASE LENGTHS GROUPED BY... Vacant

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% < 1 yr

By Area, to break 1-3 yrs

By Area, to break Lease length by 3-6 yrs By Area, to expiry 6-9 yrs By Area, to expiry > 9 yrs

ASSET RATING Macro Asset Rating 1 Metric Value 2 Macro 1 3 Micro 1 Vacancy 4 Micro Asset Quality 2 5 Term to break 4 Vacancy 1

Average 1.8 5=Worst to 1=Best Term to break Asset Quality

Printed 14/12/2017 16:45 LOGO 3– MILAN AIRPORT – MILAN PROPERTY REPORT PAGE 1

Reference: LOGO 03

MILAN AIRPORT VIA ALTIERO SPINELLI PESCHIERA BORROMEO MILAN Italy

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PROPERTY REPORT MILAN AIRPORT – PESCHIERA BORROMEO

Inspected by Date of Inspection Peter Beatty & Graham 01 December 2017 MacMillan

Location

 The property is located in Peschiera Borromeo, in the Lombardy region of Italy, approximately 12km east of Milan city centre. Perschiera Borromeo is a relatively large pocket of land outside of Milan and as such, features a mix of commercial and residential uses. Given the immediate access to Milan Airport, the area is principally considered an industrial hub for businesses with air travel requirements.

The area is very well connected by road via the SP14 and SP415 which connect directly with the A51. Rail access is also available in the area and as previously Summary noted, Linate Airport is immediately to the west.

 Milan itself is the second most populated city in Italy after Rome, with a total population of 1,345,851 (2016 ISTAT). The city is recognised as the main industrial, commercial and financial capital of Italy, with a recent focus on service sectors and a fall in the presence of the traditional agriculture, industry and construction. The unemployment rate (7.9% in 2016) is significantly lower than the national average (11.9% in 2016) and the city continues to show gains in general productivity (producing one tenth of Italian GDP in 2016).

Situation

 The subject property is situated in the heart of the industrial area of Peschiera Borromeo, bounding Linate Airport to the west. The property can be accessed via various small slip roads off Via Giuseppe Di Vittorio. It has frontage on the south and east to Via Altiero Spineli, Via Giuseppe Garibaldi to the north and Linate Airport to the west.

 The main SP145 road is accessed a short drive to the south, providing a link to Milan Summary city centre and further east from the city.

 The immediate surrounding area is dominated by industrial, warehouse and logistics properties, including occupiers with connections to the distribution industry. The property is immediately opposite Schenker (a division of German retail operator Deutsche Bahn AH that focuses on logistics) who occupy a very similar building. Other buildings are more dated and smaller in scale, including basic warehouse units located immediately to the rear of the subject.

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Description

 The subject property comprises a distribution facility, with ancillary office accommodation and car parking. The property was constructed in 2009 and is characterised by 2 parallel logistics units, with inter-connected 2 storey office accommodation to the front (southern end) and a separate car parking element located 200 metres north. The property has a dedicated, barrier entrance with security outbuilding. The site is bounded by metal fencing. There are 2 points of access for HGVs. Based on the information provided, we understand that environmental issues existed over the car parking site. We have assumed that these issues have since been resolved. Please note that we have not been provided with the site area of the property. Please note that we have not been provided with the site area of the property.

 Industrial & Office: The 2 industrial units run parallel with the adjacent airport run way. Whilst both are of a similar configuration, the building on the eastern boundary is larger in size. We understand the units provide separate functions for the business. One services domestic deliveries, whilst the other services international orders. The physical characteristics of both are similar. They are of concrete frame construction, Summary with stone / metal panel / glazed finish elevations beneath a largely flat roof. The space provides open logistics space with charging stations, featuring screed concrete flooring, curved concrete / metal panel roof with natural light panelling, fluorescent beam and halogen spot lighting, ventilation / fan and sprinkler system. Based on the information provided, we understand the buildings provide a total of 185 loading doors, apportioned over the larger (118 loading doors) and smaller (67 loading doors) buildings. The office space is arranged over ground and first floors, with bridging element between the 2 warehouses. This space provides open plan / cellular office accommodation, meeting / rooms, training, WCs and locker facilities. The finish across the office is of a standard fit-out with part raised carpet covered / laminate tile flooring, suspended ceiling incorporating fluorescent panel lighting and ventilation. Radiators and power sockets are around the perimeter of the space and windows are double glazed. The space features 2 personnel lifts and stairwells on either side of the bridge.

 Shared car parking is available to the front of the site, with separate parking on land which does not fall within the site boundary of the main industrial units. It is situated a short distance north of the main property.

 We have relied on the information provided by Blackstone, including areas stated in the tenancy schedule, along with more detailed area breakdown of specific uses stated within a separate schedule.  We have cross-checked the areas against additional sources of information, including Technical Due Diligence prepared by Arcadis and where necessary, highlighted material discrepancies. We have principally relied on areas within the Summary tenancy schedule unless specifically requested otherwise.  The property extends to a gross lettable area (GLA) of 23,100 sq m, including industrial and ancillary office space. A detailed breakdown of the area is highlighted below.

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Floor Area

Status Use Sq M Occupied Warehouse 20,100 Occupied Offices 3,000 Occupied Parking -

TOTAL GLA 23,100

State of Repair

 At the time of our inspection undertaken for valuation purposes, the building appeared to be in reasonable condition commensurate with its age, use and construction.  We observed nothing during our inspection that we consider would detrimentally Summary impact the value or suitability of the property for secured lending purposes.  We have relied on the information provided by Blackstone, including Technical Due Diligence Report prepared by JLL. Based on the conclusions of the report, we have adopted an immediate (year 1) capital expenditure figure of €70,000.

Environmental Considerations

 We have been provided with Technical Due Diligence Report (TEDD) undertaken by JLL, which includes an Environmental assessment section.  Where necessary and based on information provided, we have allocated costs to environmental remediation. We have assumed that no environmental risks exist which Summary would have a material impact on our opinion of value. Based on the information provided, we understand that environmental issues existed over the car parking site. We have assumed that these issues have since been resolved.

Town Planning

 We have assumed that the property benefits from all necessary planning consents Summary and that the current use is permitted under the designations imposed by the local authority.

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Tenure

Tenancy

 The property is let by way of 2 occupational leases to TNT (Fedex) with a total passing rent of €2,024,235 per annum (€83.91 per sq m). The main warehouse / office building is let from 1 September 2008, with a lease expiry on 31 August 2020 at a passing rent of €1,938,235 per annum, whilst the car parking site is let from 25 October 2016 with lease expiry on 31 August 2020 at a passing rent of €86,000 Summary per annum. Both leases have a rolling break option every 12 months, with the next one falling on 31 December 2018.  TNT is an International express, mail delivery and logistics services company. The company was subject to a takeover by Fedex in 2016. The integration has cemented the position as one of the world’s largest industry providers.  Financial investigations are outside the scope of this instructions but we have assumed that investors would deem the tenant to be of good covenant strength.

Market Rent

 We have provided commentary in the appendix of this report that highlights occupational demand for the region within which the subject property is located. This includes the most relevant comparable evidence of which we are aware in determining our opinion of Market Rent. We have also considered the evidence highlighted by the letting of the subject property itself. Summary  We are of the opinion that the Headline Market Rent is €2,024,000 per annum. The Headline Market Rent over the warehouse / office space is €1,938,000, whilst we have adopted the passing rent over the car parking site at €86,000.  Based on the occupational evidence and characteristics of the property, we have adopted a Market Rent of €80 per sq m for the warehouse and €110 per sq m for the ancillary office accommodation.

Investment Evidence

 We have provided commentary in the appendix of this report that highlights occupational demand for the region within which the subject property is located. This Summary includes the most relevant comparable evidence of which we are aware in determining our opinion of Market Rent. We have also considered the evidence highlighted by the letting of the subject property itself.

LOGO 3– MILAN AIRPORT – MILAN PROPERTY REPORT PAGE 6

SWOT Analysis

Strengths Weaknesses  Freehold.  Rolling break option every 12 months,  Fully let to an occupier deemed to be of albeit the tenant has occupied the property good covenant strength. since construction and the location is  Excellent location adjacent to Linate excellent. Airport.  Any further environmental concern over the  Good accessibility to the city centre and car parking site. surrounding area.  Reasonably good general state of repair.  Good clear height.  The property is rack rented.

Opportunities Threats  Continued improvement in demand for the  Deterioration of the property market. distribution market.  100% income risk to a single tenant albeit  Remove the rolling break option and a good covenant. secure new lease terms with the occupier.  Issues with sub-dividing the site if for any reason DHL chose to consolidate the occupied space.

Liquidity (1 low – 5 high) 4. The property is in an excellent location and provides high quality / functional logistics accommodation. Whilst there may be some concern regarding the rolling break option, the tenant has occupied the property since construction and alternative space is currently limited assuming they wanted to remain in the immediate area. Investor interest would likely be significant for the property.

Valuation Methodology

Market Value We have made the following allowances and assumptions in approaching our valuation.

 We have deducted non-recoverable costs, including management, property tax and insurance based on the information provided.  We have deducted immediate capital expenditure based on the Technical Due Diligence Report and additional information from the borrower.  Having regard to the rolling break option, we have adopted a 6 month expiry void from December 2018.  We have deducted purchasers costs including Stamp Duty (2%) and

LOGO 3– MILAN AIRPORT – MILAN PROPERTY REPORT PAGE 7

Legal / Agents Fees (1%)

Having regarding to the characteristics of the property (location and income profile) we have targeted a Equivalent Yield of 6.00% which results in a total net value of €29,050,000, equating to a capital rate per sq m which falls within a reasonable range of the most comparable evidence.

A more detailed breakdown of the valuation metrics are available on the front page of this property report.

We have increased the yield to reflect the additional risk, adopting an Equivalent Yield of 7.00%, resulting in a total value of €22,560,000, equating to a capital rate of €977 per sq m. Estimated Reinstatement The property has not been inspected by a suitably qualified building Cost Assessment (RCA) surveyor from CBRE, nor have we carried out a full Reinstatement Cost Assessment. For indicative purposes only we estimate that the reinstatement cost of the property for fire insurance purposes would be in the region of € 11,300,000 on a day one basis, including fees but excluding VAT and inflation. This figure should be compared with the current sum insured and if a material discrepancy exists we suggest that a full Reinstatement Cost Assessment is carried out.

4 MARKET REPORT

MARKET REPORT

Bank of America

MARKET COMMENTARY

Italy Economic Overview, Q3 2017 Positive signals about the economic growth further strengthened the Euro area and the GDP growth was above expectation in Q2, showing a 2.3% increase on a yearly basis. Inflation in August was at 1.5%, remaining low and with a further fall expected by the end of 2017. The current period showed improvements in the labor market. The Italian economy is benefitting from the general macro positive trend and is improving in all main economic indicators. The Italian GDP, at +0.4% in the second quarter, kept growing for the third consecutive quarter; the forecast for the year end is confirmed to be +1.4%. Steady consumer confidence in September compared with the previous quarter, as the index moved from 106.4 to 115.5. In the second quarter of 2017, Italian household consumption rose, even if slowly, by 0.5% compared to the previous quarter and the annual expected growth is expected to stand at 1.3%. The internal demand is confirmed to be the main driver of growth.

Italy GDP evolution

Change (%) 2.0 1.5 1.0 0.5 0.0

-0.5

Q2 2016 Q2 Q1 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 -1.0 -1.5 -2.0 -2.5 -3.0 -3.5

Source: CBRE Research, Q3 2017

The composite index of the business confidence climate also improved, mainly driven by recovery of the manufacturing sector which suffered from a contraction at the beginning of the year. The number of people employed rose confirming an improved trend in the labor market; the unemployment rate slowly fell positioning at 11.2%. The youth unemployment rate, even though still very high, is lower than the previous quarter, dropping from 37% to 35.1%.

Italian customer confidence index evolution

120

110

100

90 Index

July… July…

ott-15 ott-13 ott-14 ott-16

lug-13 lug-14 lug-15 lug-16 lug-17

apr-13 apr-14 apr-15 apr-16 apr-17

gen-14 gen-15 gen-16 gen-17

Oct2010 Oct2011 Oct2012

Apr 2011 Apr 2012 Apr

Jan 2012 Jan 2013 Jan Jan 2011 Jan Source: CBRE Research, Q3 2017

The retail sales trend remains stable compared to the same period last year: the ISTAT retail sales index for the months May-July was slightly better on average compared to the same period last year. Fashion is the retail category suffering most from sales but food and beverages and services host better performances. The outlook for the year end is positive but the risk connected to the political situation and to the next election is still quite high.

Italian Logistics Market The never ending time of logistics; take-up and investments at record high In our view, all of the properties in the subject portfolio are subject to different macro market trends. Therefore, property reports are attached separately after the national market overview.

Overview The logistics market in Italy has evolved considerably over the last decade or so. As demand for high quality logistics space has developed over this period, this sub sector has become increasingly distinct from the industrial buildings market, with the former accommodating major companies seeking strategic hubs for their operations, and the latter accommodating companies with a stronger emphasis on production. In our view, prime logistics stock consists of buildings which are well located, of a modern specification, have internal floor to ceiling heights of at least 10m, have ample raised loading bay provisions (1 loading dock to <1,000 sqm, preferably 1 to every 800 sqm) and office accommodation of a high standard (preferably less than 5% of the total floor area). In addition, we consider Class A properties to have a yard depth of at least 35m and a site coverage ratio of less than 50%. Market factors determine that prime locations for logistics buildings are those which are near both major road routes and the main distribution markets in the country.

Of all of the logistics stock in Italy, we estimate that around 70% of this is located in the north west of the country, with around 15% located in the north east, 10% in the centre, and 5% in the south. This reflects the fact that the north accounts for the majority of economic activity in Italy, but also that the north benefits from being geographically closer to the rest of Europe. Further information on the main logistics markets in the north are provided below, but we consider that the prime logistics nodes are situated around the following cities: Milan (with Piacenza being a part of the Milan’s logistics market), Verona, Bologna and Rome. Prime regional markets are Turin, Venice and Florence and Secondary regional markets are Naples, Bari and Catania.

Although all the assets in the subject portfolio are located in Northern Italy and more in detail around Milan, Pavia, Piacenza, and Turin, we have firstly provided an overview of the overall logistics market encompassing the main nodes that service the cities mentioned above, before going into further detail on the main aspects of the subject markets. The table provides the main macro market indicators at a country level.

Logistics sector key data, Italy

Source: CBRE Research, Q3 2017. Net Yields are calculated as Net Passing rent on Gross Market Value. North-Western Italy Logistics Market overview

Warehouses and Intermodal hub The map reported below shows the distribution of logistics assets and intermodal hubs within the Milan logistics market. There is a high concentration of warehouses along the major east-west communication route: A4 Highway “Turin – Milan – Venice” and the major north-south communication route: A1 Highway “Milan – Rome”. Improvements carried out over the last few years (and some projects still underway) to the northern road infrastructure have facilitated movement between the cities of Milan, Bergamo and Brescia, which together create a major economic hub nationwide. Major road projects include new high-capacity arteries including the A35 motorway (BRE-BE-MI), A36 motorway (the “Pedemontana”) and the A55 motorway (the TEEM or external eastern ring road of Milan). In particular: ▪ The A35 or BRE-BE-MI motorway was completed in 2014 and connects Milan to Brescia, with the intention of off-loading the long-distance traffic flows that currently congest the A4. ▪ The A58 TEEM (“Tangenziale Est Esterna Milano” - New Eastern Milan bypass) is part of a broader plan for the strengthening of the busy road network of Milan and Lombardy; it was conceived as a good alternative for large amounts of traffic flow that now heavily congest regional and local roads. The A58 motorway connects to the A4 motorway, the A51 motorway (Milan East Ring Road), the A35 and the A1. It also provides links with the SP 14, the SP 103 Rivoltana-Cassanese and the SS 415 Paullese. Proceeding from the north, TEEM starts from the connection with the motorway A4 in Agrate Brianza, and heads to southward reaching the junction with the BreBeMi in Pozzuolo Martesana. In the last section TEEM turns towards the south-west, interconnecting the motorway A1 in Melegnano ▪ The A36 Pedemontana motorway, partially complete, will connect five Provinces (Bergamo, Monza e Brianza, Milano, Como, Varese) for the benefit of

approximately 4,000,000 inhabitants and 300,000 companies representing 10% of national GDP. The Pedemontana Lombarda comprises 67 km of motorway, which represents the main connection between Cassano magnagio and Osio Sotto, 20 km of by-passes (11 km for the system of the Varese Municipality and 9 km for the Como network) and 70 km of additional road network which intends to relieve the local traffic congestion. As a matter of fact, logistics assets in Italy are more related to the motorway network rather than to the railways due to lack of high capacity railway lines. Main intermodal hubs are the ones located on the railway lines from the port cities of Genoa and Venice. Relevant logistics stock is in the periphery of industrial and light industrial districts.

Intermodal Hub Warehouses Main railways lines Motorways

Source: CBRE Research, Q4 2015 (latest information available, an updated map and categorization of the sub-markets will be published in Q1 2018.) As shown on the map above, major concentration of warehouses is found at the junction

of major motorways, being the A1, A4, A8, A9, A21, A35, A51 and A55. The most consistent stock is located in the Piacenza area, some 40 km south of Milan and considered to be within the Milan logistics market. Logistics stock is concentrated especially among main highways, such as A4 Turin-Venice and A1 Milan-Naples. Piacenza benefits from a barycentre position at a key access route for all directions, being along the A1 “Milan-Rome” motorway and the A21 “Turin-Brescia” motorway. Both the A4 and A21 start from Turin in northwest Italy; the A4 passes through northern Milan, while the A21 bypasses Milan to the south, connecting with the A4 at Brescia. Important stock is also along Milan’s external ring road, encircling the city. The national logistics system is more connected to the road infrastructure rather than to rail network with the majority of the logistics stock placed near light industrial properties. Prime Rents are higher in the northern area and Milan’s eastern district where supply, especially of Grade A product, is limited. ERVs are lower in the southern and western areas (Piacenza, Tortona, Pavia and Novara) where there is the majority of available logistics stock. The geographical conformation of the territory and the high density of the built areas surrounding the city of Milan have not allowed many wide developments or new constructions to Grade A specification, which has in the past few years driven occupiers to take up space further away from Milan, but along major road infrastructure and built to suit. To the south, supply is strong with high competition, driving rental levels down. Secondary locations often offer good quality product at lower rents, and it has been recorded that several tenants prefer to move to more secondary locations (far from major road connections or in stand-alone warehouses instead of parks) in order to pay lower rents or receive higher incentives, with respect to those achieved in the immediate outskirts of Milan or within integrated logistics parks. Rental values are higher where the territory is highly industrialised and mostly urbanised. Over the last year and a half, strong demand and a lack of good quality product have driven prime rents up in the Milan logistics market with the prime rent now standing at €53 per sqm per annum, primarily for assets east of the city. Increase in rental rates have also been registered south of Milan toward Piacenza, with recent lettings registered above €40 per sq m. Rental levels to the west of Milan remain lower at between €30 and €35 per sqm per annum. In CBRE view, prime logistics stock consists of buildings which are well located, of a modern specification, have internal floor to ceiling heights of at least 10m, ample raised loading bay provision and office accommodation for administration (but limited to less than 5% of the total floor area). The ratio between the covered area and the external area shouldn’t be above 50%.

Occupational Market

Stock and developments The Italian Logistics stock is estimated to be in the region of 17,500,000 sq m. Over the past few years the new stock has mainly been driven by non-speculative development activity (Pre-let and/or BTS) while speculative development was almost flat. In the second part of 2017 the trend has reverted and speculative development is back in the agenda of some developers and investors, with few speculative projects that has started even though the plan of wait for pre-let agreements before developing new stock is still preferred. New stock completed since the beginning of 2017 stands at around 400,000 sq m, mainly non speculative. A big warehouse has been built in Passo Corese (some 150,000 sq m) developed by Vailog-Segro; in the same quarter, another important completion has been the one in Vercelli (108.000 sq m). Some other completions have interested mainly Lombardy, Emilia Romagna and Lazio for medium-small developments.

Development activity drying out, mainly comprised in non speculative schemes but he outlook is brighter

Source: CBRE Research, Q3 2017

The estimated vacancy rate within the market has been decreasing over the past two years, ending at around 5%. Due to the lack of transparency within the Italian market, the chart below must be read as an estimation as it is difficult now to have the exact number for vacant space.

Take Up Logistic take-up sharply accelerated in the second quarter of 2017 surpassing the total space absorbed in 2016 by the third quarter. The total take-up in the first three quarter of the year stood at almost 1,500,000 sqm. Lombardy continued to be occupiers’ preferred region accounting almost half of the total space absorbed (716,250 sqm) from the beginning of the year. Two leasing transactions contributed to this result: Italtrans took almost 80,000 sq m as owner occupier in Bergamo and an important Italian 3PL leased a similar size warehouse

near Cusago. A further important transaction near Pavia is a built to suits agreement involving a leading international food retailer letting little more than 50,000 sqm. The Emilia Romagna is the second most dynamic region, with a great location accounting for 24% of the total space absorbed (340,600 sq m). The leasing transaction that help to reach this position to the Emilia Romagna is the built to suit building lease signed by an important retailer in the electronics sector in the Piacenza Leasing Park during the second quarter of the year for 108,000 sqm. Another important letting was the one made by a 3PL in the Bologna Interporto for 40,500 sqm. Speculative developments continue to be scarce, but few projects have started in the Milan Core area.

Logistics, Take-up quarterly evolution, Italy

,000 Sq m 2,000

1,500

1,000

500

0 2010 2011 2012 2013 2014 2015 2016 2017 TOT Q1 Q2 Q3 Q4 Source: CBRE Research, Q3 2017

Milan and the greater area spreading out along major roadways (including Piacenza, Novara, Malpensa and Brescia) and Bologna are the leading logistics markets, where retailers and 3PLs are expanding and strengthening their networks. There is also a strong interest in Rome, however the lack of supply is slowing down occupier’s activity. Built to suit is the most preferred development choice for new buildings.

Take-up by Region, YTD 2017

7% 5%

44% 24%

9% 11% Lombardy Piemonte Veneto Emilia Lazio Other

Source: CBRE Research, Q3 2017

One of the key factors driving logistics take-up is the new consumers’ trends. Increasing consumer demand, the growth of urbanisation and the rise of e-commerce are all solid fundamentals which are underpinning logistics: the growing interest in this sector is expected to continue driving up demand and pushing up values in the future. Further to our commentary above, the graph below indicates that 3PLs are still the most dynamic players in the third quarter of 2017, accounting for 38% for the take up on the first three quarter of the year.

YTD 2017 Logistic take-up by business sector

21% 38%

10%

11% 15%

3PL Courier E-Commerce Industry Other Retailer Source: CBRE Research, YTD 2017

Prime Rents Prime logistics rents in Core Milan are higher than the Greater Milan level, where a larger availability of stock is located. The Core area is characterised by a lack of supply driven by the scarce speculative development activity since the beginning of the recession (2009) and by the high density of the built areas that have not allowed many comprehensive developments. Thanks to the changes in demand levels throughout the past years, which have drivien up demand for both XXL warehouse and parcel delivery center, the rental levels increased to 53 Euro sq m year. The Greater Milan market is characterized by a larger stock of distribution warehouses, good quality product and a lower rent which moved from 42 Euro sq m per year in 2016, up to 45 Euro sq m per year during the course of this year.

Milan Prime Rental Values Evolution (€/sqm p.a.)

Source: CBRE Research, Q3 2017

Typically, rental values follow a cyclical pattern. Current rents in Milan, together with several other prime European logistics locations, are considered to be within the growth part of the cycle, with good room still to grow. Prime rents are in the range of 53 €/sqm/pa for Milan Core market.

Milan Prime Rental Cycle

Source: CBRE Research, Q1 2017 It is worth noticing that headline rents may sustain upward pressure in the coming months as a result of both strong demand and a gradual depletion of supply, especially in Milan’s prime locations. The market continues to be tenant favourable and the incentives are typically 3-12 months on a standard lease duration of 6+6 or 9+6 years (free rents and others contribution) basing on building’s features and desiderability. However, the gap between prime locations and secondary locations remains significant, with transactions for grade B buildings in secondary locations south and west of Milan in the region of 30 to 35 €/sq m. Prime rents in Rome, mainly due to lack of product on the market and stronger demand, is also up from 52 €/sq m p.a. to €55 per sqm per annum.

Investment Market The Italian logistics investment volume in the first nine months of 2017 stood at circa 850 million Euro, sharply higher than the 231 million Euro invested in the same period of last year. In Q2 CIC made the largest acquisition so far, buying a pan-European portfolio, comprising 24 assets in Italy from Logicor. A further deal recorded in 2017 to date was the acquisition by Kryalos Sgr on behalf of Blackstone of a logistics portfolio of 4 buildings, sold by Fondo Ippocrate (IdeaFimit). Tristan Capital Partners has been active in the Italian market this year, with the purchase of a real estate portfolio from AXA, including two logistics buildings in Anagni and Pavia, for a total value estimated to be in the region of 20 million Euro (just for the logistics part). The investment volume to date combined with the strong investors’ demand for this asset class, reflected in the huge investment pipeline with completion expected by the year end, means that 2017 will be another record year for logistics in Italy. Foreign capital is still dominant, accounting for almost the total of year to date volume (95%) and it is higher than the same period of last year, even though the value is influenced by the huge investment made by CIC.

The interest in this sector is confirmed to be very high and an increasing number of investors are looking for opportunities, faced often with a lack of supply. More investors are considering smaller products too (less than 20 million Euro), with innovative and interesting locations, which could be regional or urban. The outlook for the coming quarters remains positive and the strong competition in the sector has led to a further contraction in prime net yields*, which are now at 5.9%.

Yearly Investment Volume.

Investments (€ M) Prime Net Yield (%) 900 9.0 800 8.0 700 7.0 600 6.0 500 5.0 400 4.0 300 3.0 200 2.0 100 1.0 0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017

Source: CBRE Research, Q3 2017. Net Yields are calculated as Net Passing rent on Gross Market Value.

Yield Evidence The table below includes a list of all the relevant logistics transactions carried out in Italy in 2016 and 2017 for which we have visibility. # YEAR LOCATION SIZE PRICE PRICE NET YIELD PURCHASER VENDOR TENANT (SQM) (€M) (€/SQM) (%) ANALYSIS 1 H1 Truccazzano 35,000 25 714 6.80% CBREGI AKNO N/A 2016 Business Parks 2 H1 Rolo N/A 40 N/A N/A Kryalos (Primitiv Fund) Panattoni Confidential 2016 (Blackstone- Logicor) Europe 3 H1 Gorgonzola N/A 24 N/A N/A AXA IM Real Assets Polis Fondi Confidential 2016 4 H1 Turin 24,000 16.3 690 6.25% to SEGRO Confidential Decathlon 2016 6.75% 5 H1 CSG/Bologna 120,850 Est. 620 6.00% to Fondo logita (Prelios sgr) - SEGRO Geodis, One 2016 (portfolio) 75mil 6.25% SELP (Segro European (90%) JV Express, Logistic Partnership (SELPis VAILOG Leroy Merlin 50%/50% owned by UK's (10%) Segro and Canada's PSP Investments) 6 H1 Monselice 48,300 24 487 N/A Corum Convictions SCPI Gimi Confidential 2016 7 H2 Brescia 33,000 16 485 7.25% to Tristan Capital Partners Festa NumberOne 2016 (Montichiari) 7.75% (BNPParibas sgr) Trasporti e Logistica + Isola Verde 8 H2 Trezzo 34249 20 593 7.25% Fondo Logita (Prelios sgr) BNP Paribas n.a. 2016 sull'Adda REIM 9 H2 Carisio 58700 23 387 8.9% gross GO Italia I managed by BNP Paribas Fiege, 2016 IdeaFimit Sgr (on behalf of REIM Sgr partly Greenoak) p.A. (Fondo vacant Club Deal) 10 H2 Various 130,700 70 536 6.70% Logicor (Mona lisa Fund by IDI Gazeley n.a. 2016 gross Kryalos sr) 11 H2 Various n.a. 153 n.a. Confidential GIC TPG Real Confidential 2016 Estate /Ivanhoé Cambridge 12 H2 Liscate 36,700 23 619 8.00% LaSalle Italia owned by Europa SDA - 2016 (gross) "LaSalle Liscate 1 S.r.l. & C. Immobiliare crossdock SAS". 1 - Vegagest sgr 13 H2 Agnadello 52300 23 444 8.70% GO Italia I managed by AXA RE IM 70% let to 2016 IdeaFimit Sgr (on behalf of (AXA Property retailers Greenoak) Trust) and GDO

14 H2 Various N.a. 50 n.a. Est 7.5-8% Logicor Logiman n.a. 2016 (gross) 15 H2 San Pietro 130,000 55 423 8.0% AEW DSV N/A 2016 Mosezzo 16 H1 Anagni 27,018 13 481 8.5% Tristan Capital Partners AXA REIM 2017 17 H1 Casorate 25,030 10 400 N/A Tristan Capital Partners AXA REIM N/A 2017 Primo 18 H1 Various 140,000 80 571 7.50% Fondo Camelot (Kryalos Castello sgr N/A 2017 SGR) (Fondo Augusto and Fondo Valore Immobiliare Globale) 19 H2 Truccazzano 31,000 25 806 Conf. CBREGI per EIF AKNO E-price 2017 <6.5% 20 H2 Nogara 66,000 32.6 490 Conf. CBREGI Fondo EIF Techbau STI 2017 <6.75% 21 H2 Siziano 41,000 22.5 550 7.6% Gross GFL Prologis GFL 2017 22 H2 Casaletto 17,000 7.3 430 n.a. GreenOak Picardo DHL 2017 Lodigiano 23 H2 Lacchiarella Circa Conf. 483 Conf. Carlyle N.a. Conf. 2017 30,000 24 H2 Various Circa Conf. 500 Conf. Carlyle Prologis Conf. 2017 180,000 25 H2 Various 160,000 76 475 n.a. Kryalos IdeaFimit K+N 2017 (Fondo Ippocrate) 26 H2 Basiano 44,000 40 900 Conf. Deutsche Asset Managment FAP n.a. 2017 <6.0% (RREEF Spezial Invest GMBH) The transactions listed above while may not be directly comparable are illustrative of the yields investors are prepared to pay for logistics assets across Italy. The lack of quality product has been driving down prime net yields which currently stand at 5.90% (Net Yield excluding provisions on total Purchase Price).

Local Market analysis

TURIN MACRO AREA (Cherasco) Turin is the most important city in the North-West of Italy and enjoys an excellent road connection; in fact is at the end of both A4 Turin-Venice and A21 Turin Brescia motorway, an easy access to all cities of Northern Italy. More and more often former industrial sites are used as storage units. The logistics sector lies is performing well: market dynamism has strongly increased in the past year reaching a 283,900 sqm take-up, corresponding to 20,5% of the overall Italian volume and an increase on the 2015 number, which was less than 40,000 sqm. Piedmont obtained a top position in the ranking of the locations preferred by the main players thanks to a couple of major logistics transaction: a prime e- commerce business chose Vercelli as its logistics hub with over 100,000 sqm while Michelin consolidated its presence in the region with a logistics warehouse of 56,000 sqm in Cuneo. The positive trend is confirmed in 2017. Despite this, grade A logistics stock in Turin area is currently very low and mostly located in few industrial and logistics compound around the city ring road.  Orbassano-SITO (Turin Intermodal Hub): is the original area of the freight village, characterized by a main road network and a secondary infrastructure network allowing access to the different land lots. Numerous logistic activities are located within the freight village, with the presence of hotel and organizational structures related to the logistics activities. The main companies to be found are: Bartolini, TNT, SDA, Battaglio, Unico and CAAT. Unit rental values for recently built solutions vary between 45 €/sq m/year and 52 €/sq m /year, reaching higher peaks for particular typologies. Unit rental values for obsolete solutions are in the region of 30-36 €/sq m /year. Offer for units for sale is in the region of 450-670€/sq m /year according to size, location, proximity to the main communication arteries. Turin Intermodal Hub construction started in 1985 and was operative from 1990. Nowadays the Hub is developed on a 90ha surface (comprising also external and maneuvering areas) plus 80,000 sqm rail- connected warehouses. Average internal height of the properties is 7,5m.  Settimo Torinese: is characterised by the presence of the IVECO manufacturing site and the Michelin former manufacturing site, which was established in 1972 and as at today only hosting logistics operations, few semi-finished products activities and the headquarters of the company in Italy. The level of vacancy in the area is scarce, with a current stock comprising small to medium sized warehouses, and rents varying from 30 to 45 €/sq m depending on the age, specifications and accessibility of the units.  Moncalieri-Trofarello: industrial and logistics compound composed by mainly small size warehouses built from the ‘70s. Main operator are express courier and 3PL: BRT, GLS and Geodis are settled here. Level of vacancy is low and mainly composed by old facilities out of requirements. Rental values are in line with the overall Turin figures.

Prime players choose Piedmont for their logistics activities, preferring opportunities among main roadways (A4 and A21) where there is a consistent availability for cheap logistics lands. This brought the take-up for Piedmont Region at 251,900 sqm (18.2% on the overall national figure). Turin is not a logistics hub or point of transit for main logistics

pole but can be considered as an ending point for all the flows heading to Turin, fourth Italian city in terms of population. Therefore the city is suitable to host activities linked to last mile logistics and goods sorting; stock is primarily composed by small size warehouses (below 10,000 sqm) held by local companies and owners.

Cherasco belongs to Turin macro-area secondary market, in fact it lies in the middle between Turin, Cuneo province and Savona. Due to the peculiar location, this area is not inside main logistics flows but joins and active local market. In Cuneo are operative main Italian corporation active in the food sector (Ferrero, Maina and Balocco) but also in automotive, sector hystorically active in Piedmont Region, in fact Michelin choose this location to built a 55,000 sqm production facility, for an overall investment above 30M € and more than 2,000 employees.

The location is also strategic for occupiers that needs a direct connection with Savona commercial harbor, which is one of Italian main commercial harbors exporting products to both the Americas and the UK. Two terminals are dedicated to general cargo (Savona Terminals is specialised in iron and steel handling, forest products, dry bulk and general cargo, while Savona Terminal Auto caters imports and exports cars and rolling stock) plus five terminals focused on dry bulk.

Rental Evidence The following table highlights recent rental transactions along with asking prices for logistics space in the area surrounding the subject property.

RENT (€/SQ TENANT M BUSINESS ID CITY YEAR SQ M GRADE P.A.) LETTING SECTOR NOTES Stand alone, multi-level warehouse, BTS for Decathlon by Vailog. LEED certification. The 1 Brandizzo Q2 2016 24,000 A 33 Pre - let Retailer provided rent is estimated on the covered surface of the warehouse, excluding the mezzanine area. Last mile, stand alone warehouse in the 2 Avigliana Q2 2016 3,900 A 46 Letting E-Commerce western area of the Province of Turin. Settimo Letting within a stand alone distribution 3 Q2 2016 5,000 A 35 Letting 3PL Torinese warehouse..

San Mauro 4 Q4 2016 12,000 C 24 Letting Curier n/a Torinese

Expansion and refurbishment of the 12,000 sqm existing old warehouse. The asset is not Gerbole Di 5 Q1 2017 16,000 A N.A. OO 3PL so close to the motorway access and it is not Volvera within an industrial area. Occupied by Arcese.

Stan alone warehouse close to the 6 Leini Q2 2017 6,000 B 38 Letting Retailer “Volpiano” motorway access (approx. 4 km).

Torrazza 7 Q3 2017 130,000 A 46 Letting Confidential Multi-storey warehouse. Piemonte

Cross-dockimg warehpouse inside Turin 8 Orbassano Q3 2017 7,300 A/B 47 Letting MultiLog Intermodal Hub.

NOVARA LOGISTICS MARKET (Cameri) The Novara Area market is one of the major logistics destinations of northern Italy, being located within the Milan-Turin axis and hosting historical warehouses together with modern logistics parks nearby to A4 Motorway exits, with an estimated stock of some 880,000 sq m. It is considered to be belonging to the extended “RLM – Regione Logistica Milanese” (Logistics Milan Region); this area is defined mostly by the “time frame” set by the delivery times to and from the Milan Hub. The Province is strategically located between the crossroad of Corridor XXIV (Genova- Rotterdam) and V (Lisbona-Kiev), also known as TEN-T Corridors (respectively Rhine- Alpine and Mediterranean Corridor). The Trans-European Transport Networks (TEN-T) are a planned set of road, rail, air and water transport networks in Europe. The TEN-T networks are part of a wider system of Trans-European Networks (TENs), including a telecommunications network (eTEN) and a proposed energy network (TEN-E or Ten- Energy). The logistics focus of the area has over the years brought the development of different logistics sites, such as Cameri, for some 182,000* sq m, dedicated to Retailer (Carrefour) distribution (managed by Kuehne&Nagel), Polo Logistico di Agognate, occupying some 263,000* sq m (with a large part which is no more operative) hosting DHL and FERCAM, The Novara Interporto, for some 840,000* sq m and a forecasted further expansion, Parco Logistico di Biandrate, with a total GLA of some 610,000* sq (currently featuring some 66,000 sq m of vacant spaces) and operators like Esselunga, Lidl, Italtrans and Trasgo, and the Parco Logistico di Romentino, with some 277,000* sq m of GLA hosting Yusen Logistics, Hitachi Trasport System, D’Alterio Logistica and Dap Sides. (*Site areas) The logistics market in Italy is a sector currently in expansion, as demonstrated by the key indicators registered in Italy in 2017 (record-breaking absorption levels and investment volumes not obtained since 2008). In previous years Novara recorded very low levels of take-up, with transactions being registered only for space within logistics parks: in 2012 and 2013, some 32,000 sq m was taken up in the Prologis Romentino Logistics park with a headline rent of 40 €/sq m p.a. and rental incentives. In the last two years, operators have shown a renewed interest for the logistics properties west of Milan, confirmed by several transactions carried out in the last two years: in 2015, a deal was closed in the north-western area of Milan, south of the subject property (for confidentiality reason we cannot disclose more details), for some 11,000 sq m and €6,200,000 of investment, registering one of the lowest yields on the market In 2016 and the first half of 2017, 5 transactions were registered mostly for Grade A building, but also a B/C building, with take-up totalling 170,000 sqm. Rental values, which fell after 2008, remain low, ranging at under €30 per sqm p.a. (for the

subject property) to €41 per sqm p.a. The majority of the transactions occurred along the A4 motorway and/or with the junction with the A26 motorway: in the San Pietro Mosezzo, Novara, Biandriate, Vercelli and Romentino logistics areas. In Q3 2017 a significant transaction was recorded, a 25,000 sqm pre-let for Giochi Preziosi in Agognate Novare. Occupiers in the the San Pietro Mosezzo logistics area comprise: the Italian logistics branch of Saima Avandero (occupying a plot of approximately 270,000 sq m and 4 XXL Warehouses), XPO Logistics and Bartolini. Major logistics areas within the vicinity of the subject property comprise:  Biandrate Logistics Park (some 7.5 km west of the subject property) – The park comprises two buildings of 36,500 sqm and 30,500 sqm respectively. The park is situated along the A4 motorway and is let to multiple tenants. Occupiers include LIDL, a German discount food retailer, DHL and Trasgo (an Italian 3PL). Currently the park is full-let.  Novara/Agognate Logistics Park Future Development (some 2 km north of the subject property, partially built up with buildable area) – The large scale logistics hub that has been under discussion for the last several years, was recently approved by the local municipality (June 2017). The development foresees some 200,000 sqm of new Grade A logistics buildings that will be built on a pre-let basis. Benefits from close proximity to A4 motorway.  Romentino Logistics Park (east of Novara at some 12 km from the subject property) – comprises four buildings totalling circa 110,000 sqm of built area. The site was first developed in 2004. Buildings divided into multiple units with Grade A features. Benefits from direct road frontage onto A4 motorway. Some 20 km from the Malpensa Airport. Occupiers include Eurospin, Hitachi Transport System, Dap Sides and Pentair.  Vercelli Logistics Market (some 15 km) – south of the A4 motorway. Logistics Capital Partners and AEW have signed a significant agreement with an e-commerce company for the development of a largescale hub tenant. The pre-let agreement comprises some 100,000 sqm to be developed. Development is currently underway. We consider the San Pietro Mosezzo logistics market to benefit from its location just off the A4 motorway, in proximity to Novara and within the Milan logistics market. The buildings are of Grade A construction with good ceiling height, office content ratios, generally good loading dock to sqm ratios and good manoeuvring area. In reaching our opinion of the market rent we took into consideration the comparables below. Letting Transactions

LOCATION TENANT BUSINESS GLA (sq m) RENT (€sq GRADE YEAR ASKING SECTOR m) /DEAL Agognate (Novara) Giochi Prezosi Retailer 25,000 42 A Q3 2017 Deal Albairate (Milan) Tuvia 3PL 11,000 35 A/B Q2 2017 Deal Lonate Pozzolo (Varese) Arco 3PL 4,000 35 n.a. Q2 2017 Deal Spedizioni

Biandrate, (Novara) DHL 6,000 40 A Q1 2017 Deal Agognate (Novara) Di Forco 3PL 11,000 n.a. B/C Q4 2016 Deal Oleggio (Novara) Geodis 3PL 22,000 35 A Q1 2016 Deal

We have also identified two comparable warehouse buildings available on the market, to better understand the level of asking rents in the area. On the Market

LOCATION TENANT BUSINES GLA (sq RENT GRADE YEAR ASKING /DEAL S SECTOR m) (sq m) San Pietro Mosezzo Vacant Industrial 2,000 30 n.a. Q1 2017 Asking /Storage San Pietro Mosezzo Vacant Industrial 6,100 29 n.a. Q1 2017 Asking /Storage

WEST MILAN (Cornaredo) Westrern Milan logistics area includes a multitude of Municipalities at the cross between Milan Core and Greater market. The area is well served interms of connections thanks to the proximity to A4 Turin-Venice highway and also A8 Milan - Varese and A9 Milan – Como, therefore serves both Milan and the Brianza area, one of the most populated and rich regions in Italy. In this macro-area the stock mainly consists in old production facilities alternated with small-medium logistics units and dense residential and retail areas. The overall quality of the stock is poor and consists in ex facilities turned into logistics. Main operators are settled in Arluno, Pregnana Milanese and Vuittone municipalities, among A4 highway, such as are Chanel, BRT, Gefco and Italmondo. The only former logistics park in the micro-area is Arese Logistics Park, located towards north. The core features of the area is also confirmed by the development of a speculative project, promoted by Green Oak, the first in Italy since 2017, on a brownfield inside Arese logistics Park. Main tenants in the area are Bennet, 40,000 sqm hub and Sifte Berti (which helds a 30,000 sqm logistics facility, owner-occupied). From Cornaredo to the South, also peripheral areas have been urbanized and are moving from light industrial to residential and retail. Few industrial compounds are still present and are mainly composed by small size light industrial activities. No major logistics Parks are present, the main occupier is Geodis with an 80,000 sqm hub in Trezzano sul Naviglio. Letting Transactions

LOCATION TENANT BUSINESS GLA (sq m) RENT (€ sq GRADE YEAR ASKING SECTOR m) /DEAL Cusago Ferrari 3PL 80000 n.a. A Q2 2017 Deal

Arese Franco Vago Retailer 13000 42 A Q2 2017 Deal Cornaredo F.A.N. Europe Retailer 11000 3,5 M B Q3 2017 Deal Lighting srl Albairate Tuvia 3PL 11000 35 A-B Q2 2017 Deal Baranzate Lavazza Retailer 10000 6,5 M B Q1 2017 Deal Legnano Prysmian Retailer 8000 n.a. A Q3 2017 Deal Draka Albairate Tuvia 3PL 5000 35 A-B Q3 2017 Deal

EAST MILAN (Peschiera, Liscate and San Giuliano) Please refer to Milan Core market description at p. 8. Letting Transactions

LOCATION TENANT BUSINESS GLA (sq m) RENT (€ sq GRADE YEAR ASKING SECTOR m) /DEAL Basiano Arcese Trasporti 3PL 56000 52 A Q1 2017 Deal Pozzuolo Brivio&Viganò 3PL 30000 54-56 A Q1 2017 Deal Martesana Truccazzano Banzai E-Commerce 27000 50 A Q1 2017 Deal Basiano Decathlon Retailer 44000 54 A Q2 2017 Deal Basiano Codognotto 3PL 21000 48 A Q3 2017 Deal Peschiera DB Schenker Courier 17000 70 A Q3 2017 Deal Borromeo Segrate Unes Retailer 10000 51 A-B Q3 2017 Deal

SOUTHERN MILAN (Marzano and Massalengo) The south of Milan, which includes part of Lodi and Pavia provinces, hosted the first Italian logistics development in the late ’90. From our analysis of the local market, the majority of letting transactions registered within the abovementioned Provinces were indeed located within business or logistics parks, in proximity to major roadways. Properties located within these schemes tend to achieve a higher ERV. Rental Evidence

TENANT RENT BUSINESS ID CITY YEAR SQ M GRADE (€/SQ M P.A.) LETTING SECTOR NOTES Letting of a stand-along building to the east Santa 1 Q1, 2016 10,000 A/B 37 Letting 3PL of Pavia. The spaces are let to a 3PL Cristina provider. The letting occured within the AKNO Business Park in Stradella. The tenant is a 2 Stradella Q2, 2016 9,500 A 38 Letting 3PL 3PL provider operating within the optical distribution sector.

Letting of a stand-alone building to the east 3 Copiano Q2, 2016 10,000 A 25 Letting 3PL of Pavia. Spaces are let to an Italian 3PL provider. The letting occured within the Siziano 4 Siziano Q3, 2016 5,500 A 45 Letting 3PL Logistic Park. The letting occurred within the AKNO 5 Stradella Q3, 2016 20,000 A 38 Letting 3PL Business Park in Stradella. The tenant is an italian 3PL provider. Letting of a stand-alone warehouse to the 6 Arena Po Q3, 2016 10,000 B 30 Letting 3PL east of Piacenza The letting occured within the AKNO 7 Stradella Q4, 2016 12,000 A 38 Letting 3PL Business Park in Stradella. The tenant is a 3PL provider for an e-commerce company. Letting of a stand-alone building to the east 8 Copiano Q4, 2016 14,000 C 22 Letting Curier of Pavia. Spaces are let to DHL. The letting occured within the AKNO 9 Stradella Q1, 2017 11,250 A 38 Letting Other Business Park in Stradella. The building is let to a subsidiary of the Canon Group.

10 Broni Q1, 2017 35,000 A 41 Pre-Let Retailer Pre-let within the AKNO Business Park

Letting of a small warehouse within the 11 Mortara Q2, 2017 5,000 A 40 Letting Other Mortara Integrated Logistics Park, to the west of Pavia.

12 Livraga Q3, 2017 7,000 B 40 Letting Other n/a

Letting of a stand-alone building to the east Cura 13 Q3, 2017 1,800 A 40-43 Letting Courier of Pavia. The tenant is an Italian Express Carpignano Courier.

PIACENZA MACRO AREA (Chignolo Po) The most consistent stock at national level is located in the Piacenza area which hosts the largest logistics district within Milan market. Piacenza benefits from being at the crossroads of the motorways A1 “Milan – Rome” and A21 “Torino – Piacenza – Brescia”. Over the last decade, the development of some larger logistics shemes within the surrounding area has attracted a good number of investors and operators. However, the demand for logistics spaces remains mainly oriented towards the Castel San Giovanni and AKNO (Stradella) logistics parks. From our analysis of the local market, the majority of letting transactions were indeed located within business or logistics parks, in proximity to major roadways. Properties located within these schemes tend to achieve a higher ERV. As a general comment, the Piacenza submarket does not reflect the values registered within the Castel San Giovanni Logistic Park, which achieves up to 45 €/sq m pa. In Castel San Giovanni Logistics Park, the average rental values are higher with respect to the surrounding Logistics Parks. This is due to the good quality of the buildings (mainly built in the past 10 years), the good management of the Park and the excellent access to the A21 Turin-Brescia motorway. The neighbouring logistics areas do not benefit from the same level of accessibility to main markets, such as Milan and Bologna (for example Broni and Stradella Logistics Parks), and are often far from the motorway access.

Rental Evidence

TENANT RENT BUSINESS ID CITY YEAR SQ M GRADE (€/SQ M P.A.) LETTING SECTOR NOTES

BTS building for a national electronics 1 Piacenza Q2 2017 110,000 A 43 Built-to-suit Retailer retailer

Letting transaction included property 2 Broni Q1 2017 35,000 A 41 Letting Retailer within AKNO Business Park

Recently built distribution warehouse for 3 Pontenure Q1 2017 7,800 A 38 Letting Courier an international courier company

Castel San Distribution warehouse for a national 4 Q1 2017 16,000 A 39 Letting Retailer Giovanni food retailer

Letting of a logistics stand-alone building 5 Pontenure Q3 2016 23,800 A 37 Letting 3PL to the south of Piacenza

Castel San E- BTS building for a top E-commerce 6 Q2 2016 20,000 A 39 Pre-let Giovanni Commerce company.

Castel San The letting occurred within the Castel San 7 Q2 2016 8,000 A 39 Letting 3PL Giovanni Giovanni logistic Park

Monticelli Newly built logistic park in the Piacenza's 8 Q2 2016 30,000 A 37 Letting Producer d'Ongina surroundings The letting occurred within a logistic park. 9 Piacenza Q1 2016 24,000 A 40 Letting 3PL Excellent accessibility to major transport network Letting of a stand-alone warehouse to the 10 Vigolzone Q3 2017 16,000 A/B 30 Letting 3PL south of Piacenza Castel San The letting occurred within the Castel San 11 Q3 2017 8,000 A 39 Letting 3PL Giovanni Giovanni logistic Park.

BOLOGNA (Bologna airport area and Parma) The Bologna province benefits from the presence of 4 strong logistics areas which attract and generate most of the logistics activities in the area; Interporto Bologna Bentivoglio, is the main hub in the Province, CenterGross, CAAB (Agricultural and Food Centre) and the Airport area. Outside these main hubs, the area hosts several smaller logistics developments, usually linked to previous industrial districts or to new linking infrastructure. The area benefits from its proximity to the A1 Milano-Firenze, A14 Milano-Ancona and A13 Padova-Bologna, which represents an important crossroads between the local distribution system and the Scandinavian-Mediterranean TEN-T corridor. The Trans- European Transport Networks (TEN-T) are a planned set of road, rail, air and water transport networks in Europe. The TEN-T networks are part of a wider system of Trans- European Networks (TENs), including a telecommunications network (eTEN) and a proposed energy network (TEN-E or Ten-Energy).

As illustrated above, CBRE divides Bologna market in two macro areas: Bologna main market, which comprises the A1 axis up to Modena and Bologna Intermodal Hub and Greater Bologna market which comprises the A1 axis from Parma to Cesena, Mantova and Ferrara to the north. The total stock in the Bologna Core area is estimated to be above 650,000 sq m of warehouses. Recent built-to-suit warehouses have been completed in 2017, within the Interporto di Bologna, for various different occupiers (from couriers, to e-commerce and standard retailers). Bologna greater market accounts for approx. 300.000 sqm. In 2017 YTD, approximately 135,500 sqm of logistics space was taken up in the Bologna core logistics market, considered one of Italy’s main logistics markets, and more developments are in pipeline. Lettings generally are within Grade A or similar (Grade A/B) buidings for rental values ranging from €45 to €60 per sqm per annum, with peaks for specialized cross docks. Lower grade buildings let at lower rents, while higher rents are achieved for Class A, built-to-suit properties. The more prime location within Bologna is north of the main city. Many international operators are active in the surrounding of Bologna, like DHL, Sifte Berti, Norble Dentressangle, Cogefrin Logistics Bulk terminal, Polyedra, FERCAM, Geodis, Saima Avandero, SDA Curier, Arcese, Bartolini, PGn Logistics; also the Bologna crossroad is very appealing for retailers, like Yoox, Assa Abloy or Herbovital, due to the baricentric position with easy access to north-east and central Italy. Major logistics companies with a presence in the surrounding area include Femi and Arcese. The other commercial occupiers in the area are mainly local companies (brand names for these include Alberici and Beltrami). There is some vacancy where businesses subsequently closed or relocated and the buildings they occupied have been left derelict. This includes a large vacant logistics warehouse located between the subject property and the A14 motorway to the south. This was formerly occupied by the motorbike manufacturer

Malaguti. Greater Bologna market take-up in 2017 YTD was 29,300 mainly referred to an owner- occupier BTS of approx. 15,000 sqm in Parma. Prime rents are lower than core Bologna and are in the range of 47 €/sqm/pa. Rental Evidence Letting transactions

BUSINESS GLA (sq RENT ( ASKING LOCATION TENANT GRADE YEAR SECTOR m) €sq m) /DEAL Bologna Logista 3PL 40,500 52 A Q3 2017 Deal Sala Bolognese Lamborghini/Ducati Industry 30,000 52 A Q3 2017 Deal Bologna FERCAM 3PL 18,000 n.a. A Q3 2017 Deal Crespellano Confidential E-commerce 8,000 n.a. B Q3 2017 Deal Aeroporto Bologna DHL Curier 15,000 > 60 n.a. Q2 2017 Deal Cadriano Barella 3PL 1,000 n.a. A Q1 2017 Deal Bentivoglio Jaguar land Rover Producer 18,000 46 A Q4 2016 Deal Bologna Geodis 3PL 14,700 44 A Q3 2016 Deal Calderara di Reno Logista (Philip 3PL 13,000 A/B 40-45 Q3 2016 Deal Morris) Valsamoggia Flay Logistic Srl 3PL 10,000 n.a. A/B Q3 2016 Deal Bentivoglio DB Schenker 3PL 12,000 n.a. A Q2 2016 Deal Castel Maggiore Franco Gomme Retailer 6,000 3 M € B Q2 2016 Deal Zola Pedrosa Producer 7,000 n.a. n.a. Q1 2016 Deal Castel San Pietro Terme Alce Nero Producer 7,500 40 A Q2 2015 Deal

On the market

BUSINESS GLA (sq RENT (€ ASKING LOCATION TENANT GRADE YEAR SECTOR m) sq m) /DEAL Via del Fonditore, Vacant Industriale 6000 47 n.a. Q1 2017 Asking Bologna Castel San Pietro Terme, Industriale/Artigia Vacant 470 51 n.a. Q1 2017 Asking Bologna nale

VERONA LOGISTICS MARKET (Oppeano+Verona+Veronella) Verona Logistic Market is one of the Core markets in Northern Italy, which develops along the A4 Turin-Milan-Venice-Trieste motorway, Italy’s main west-east communication road across the industrialised North. The following map shows the main strategic logistic corridors across Europe, as determined by the European Commission Trans-European Transport Network. In particular, the subject property (highlighted in red) is located not far from Verona, which is along the north-south Scandinavian-Mediterranean corridor.

Infrastructural System – European Commission TEN-T Corridors

Source: European Commission, Trans-European Transport Network, TEN-T Core Network Corridors

The Verona Logistic market benefits from the Verona Villafrance airport located at 25 km north of the subject property, which has a Cargo Service. Not far from the airport is the Interporto Europa Quadrante of the ZAI (Zona Agricola Industriale d’Italia – Italy Agricultural Industrial Zone) Consortium – an intermodal logistics park comprising rail, road and air access, controlled temperature warehouses and Customs service. The “Europa Quadrante” extends over some 2.5 million square meters and has key occupiers such as DB Schenker, Kuehne + Nagel, Volkswagen, Ortrans Arl, Poste Italiane Spa, Arcese Trasporti, Paneuropa Italia, Saima, among others. Over the last couple of years, an increased interest in the area has been registered, both from the occupational and investment point of view. Some logistics locations emerged in the past months (Nogarole Rocca, Oppeano and Nogara) tahnks to the availability of logistics land and good connections.

Rental Evidence The following table highlights recent rental transactions along with asking prices for logistics space in the area surrounding the subject property.

I City, YEAR SQ M GRAD REN LETTI NOTES D Province E T NG (€/S Q M P.A.) 1 Montichiari 2016 Q2 31,200 A 43 Letting We consider the sub-market to be a similar Brescia competing market – that is an industrial area accessible from the A4 motorway north-east of Milan. The property is a stand-alone building, let to a Third Party Logistics Provider.

2 Isola Rizza 2017 Q2 1,330 B/C 50 Asking The subject property is a warehouse in Isola Rizza at some 20 km from Verona. While it is close to the SS434 Transpolesana, the property has a low clear height of 5m. We would expect a discount on the asking price.

3 Nogara 2017 Q1 30,000 A 40 Letting The property is a BTS extension of a wider building for the same tenant, STI.

4 Oppeano 2017 Q1 15,000 A 42 Pre-let Pre-let agreement on a BTS warehouse for a confidential tenant.

5 Oppeano 2017 Q1 55,000 A 42 Pre-let Pre-let agreement on a BTS warehouse for a confidential tenant. The warehouse is along the high speed road connecting Verona with Rovigo, within an established logistics area.

5 LETTER OF INSTRUCTION

Award Confirmation

Graham Hughes MRICS on behalf of CBRE Limited is hereby authorized to perform the following Statement of Work (SOW) as further defined herein, execution of which must comply with all terms and conditions of this Order and master service agreement(s) CW973025. Vendor 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 Vendor, refer to Bank of America's Commercial Valuation Services Information Management System. Supplier: Statement of Work VSIMS ID: 17-009307-APR01-001 Service Requested: Appraisal (Order) Project Description: Project Logo; Portfolio of 3 Assets in Italy, VE, Verona, ITA Borrower / Client: Blackstone Sourcing Manager: Wayne Miller(813.968.7283) Terms Award Date Delivery Due Date Fee Delivery Performance 11/17/2017 12/11/2017 EUR 30,500 All deliveries due by 6 PM local time unless otherwise specified. 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. Service Definition Appraisal Type: International-Other ; Appraisal Certification: Contracted Appraiser Must Sign # CUR Premise Interest Allocations Market Value As-Is Freehold Real Estate 1 EUR Subject to leases to end tenants Market Value Other Freehold Real Estate 2 EUR Vacant Possession Value Replacement Cost Value As-Is Freehold Real Estate 3 EUR a/k/a Reinstatement Value Market Value Other Freehold Real Estate 4 EUR ERV Policies, Procedures, Other Terms and Conditions 1. The valuation must include the EMEA-APAC Certification Language in the attached reference document (altered as relevant for prior services and to name those who provided signification valuation assistance). 2. Appraisal reports must include remaining economic life, exposure time, marketing time, and identification and support of the most probable buyer (investor or owner-user). If the most probable buyer is an investor, the valuation should include appropriate deductions and discounts for vacant, owner- occupied and owner-affiliate-occupied space (treat as vacant and available for lease). The Cost Approach should be employed for proposed construction, new construction (24 months old or less) or gut renovation unless waived by Commercial Appraisal Services (CAS). Reappraisals must explain differences in value for assignments completed for Bank of America within the last two years. Please carefully review CAS Valuation Requirements prior to beginning an assignment and CAS Assignment Reminders prior to submitting assignment results. 3. To expedite invoice processing for all work performed outside the United States, your invoice must identify the address and work performed for all properties. Include the statement Â“FOREIGN SOURCEÂ” to expedite processing and ensure the appropriate accounting rules are followed. If not included on the invoice, please include a separate document listing your wire instructions so that we may process your payment electronically. 4. 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 Merrill Lynch International Limited and its affiliates, successors and/or assigns; the selected Facility Agent, its successors and/or assigns; and the selected Security Agent, 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 arranger of the Loan Financing and their assigns, 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 (together the "Beneficiaries"). A Beneficiary shall be permitted to rely on the report only on the condition that it acknowledges that the valuers shall not be liable to the Beneficiary for any special, indirect or consequential, damages and that the valuers' total aggregate liability to all lenders, agents, Beneficiaries and any other third party who seeks to rely on the report (the "Aggregate Cap") shall be limited to a sum not to exceed the lesser of 25% of the market value or twenty million pounds (20,000,000 GBP). Reliance by the Beneficiaries and any other third parties on the report shall constitute deemed acceptance of the above provisions in this paragraph and that any matters or disputes arising as a result shall be governed by English law and subject to the exclusive jurisdiction of the English courts. This report may be disclosed, without reliance, to any rating agency in connection with a Securitization." 2) Also, for letter of transmittal: "Bank of America Merrill Lynch makes no warranties or representations regarding this document or the conclusions contained herein." Documents (document content must be downloaded from VSIMS) SOW-specific Reference Documents 1. CAS_ASSIGNMENT_REMINDERS_20170504_05092017_160714.pdf 2. EMEA-APAC_CERTIFICATION_LANGUAGE_09012017_082842.docx 3. EMEA-APAC_VALUATION_REQUIREMENTS_09012017_083254.pdf Project-specific Documents 1. Miscellaneous (APR) ITALIAN_LOGISTICS_AND_LOGO_ASSET_INFORMATION_11172017_120851.xlsx Addressee and Distribution Instructions Report Distribution Name Address Comments Addressee, Recipient and Wayne R. Miller, FRICS, MAI, AI-GRS Bank of America Merrill Lynch International Limited | 2 0 CDs; 0Bound Copies; Intended User Senior Vice President King Edward St | London | EC1A 1HQ Global Project Contact(s) (optional contacts listed where applicable) Award Confirmation

Global Project Contact(s) (optional contacts listed where applicable) Name Company / Role Telephone Comments Property 001 Property Name Project Logo Logistics Property Address Portfolio of 3 Assets in Italy; Verona, VE Italy Site Owner Blackstone Tax Parcel ID(s) Multiple Property Type Industrial:Warehouse-Distribution Warehouse Property Use Current Use: Logistics; Proposed Use: Logistics Property Status Existing; Year Built/Age: 4-10 Years; Occupancy: 100% Tenancy Multi-Tenant (1 or more leases > 1yr); # of Tenants: 3 Property Measures Building: 71,577 SQ-M; 770,167 SF-GBA; Land Area: 53 Acres(Unknown; estimated); Marketing No Miscellaneous Ground Lease: N; AOC: N; Built pre-1989: Unknown; Flood Hazard: N; Other Comments Land size unknown. Estimated based upon a LTB ratio of 3:1 Contacts hahsdhrh (Blackstone) 0000000000 22

6 ARGUS FILES

REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Portfolio

Name Logo & Camelot Owner PBEATTY

File/Ref No. Managed By Contact No.

Portfolio Valuation

Gross Valuation €58,326,336 Capital Costs -€518,500 Net Value Before Fees €57,807,836

Less Acquisition costs -€1,683,725

Net Valuation €56,124,111 Say €56,120,000

Equivalent Yield 6.2608% True Equivalent Yield 6.5099%

Initial Yield (Deemed Rent) 6.4187% Reversion Yield 6.4156%

Running Yields

Date Gross Rent Net Rent Annual Quarterly 30-Nov-2017 €4,075,275 €3,710,535 6.4187 % 6.6847 % 31-Dec-2018 €2,051,040 €1,686,300 2.9171 % 2.9710 % 01-Jul-2019 €4,075,040 €3,710,300 6.4183 % 6.6843 % 01-Feb-2020 €4,027,720 €3,662,980 6.3365 % 6.5956 % 01-Jul-2020 €4,073,440 €3,708,700 6.4156 % 6.6813 %

Yields based on €57,807,836

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Address Milan Airport,24,Via Altiero Spinelli,Peschiera Borromeo,20068

File/Ref No LOGO_3

Assumptions

Valuation Tables Annually in Arrears

Valuation

Gross Valuation €29,994,477 Capital Costs -€70,000 Net Value Before Fees €29,924,477

Less Stamp Duty @2.00% of Net Value -€581,058 Agents Fee @0.75% of Net Value -€217,897 Legal Fee @0.25% of Net Value -€72,632

Net Valuation €29,052,890 Say €29,050,000

Equivalent Yield 6.0000% True Equivalent Yield 6.2254% Initial Yield (Deemed) 6.1971% Initial Yield (Contracted) 6.1971% Reversion Yield 6.1963%

Total Contracted Rent €2,024,235 Total Current Rent €2,024,235 Total Rental Value €2,024,000 No. Tenants 2 Capital value per m² €1,257.52

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Capex On Valuation Fixed €70,000 = -€70,000 -€70,000 -€70,000

Running Yields

Date Gross Rent Net Rent Annual Quarterly 30-Nov-2017 €2,024,235 €1,854,443 6.1971 % 6.4447 % 31-Dec-2018 €0 -€169,792 -0.5674 % -0.5694 % 01-Jul-2019 €2,024,000 €1,854,208 6.1963 % 6.4439 %

Yields based on €29,924,477

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 2 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Milan Airport,24,Via Altiero Spinelli,Peschiera Borromeo,20068 Freehold Tenure

Tenant - TNT (Fedex) (Milan Airport,24,Via Altiero Spinelli,Peschiera Borromeo,20068)

Description 4 - 1 Status Occupied and Let Lease 12 years from 01-Sep-2008 Expiring 31-Aug-2020 Rent Reviews every 0 years Upward only Parent Tenure Freehold Current Rent €1,938,235 Rental Value €1,938,000 from Areas (Rounded) Valuation Method Hardcore (6.000 % )

Notes

Breaks

Act Date Penalty * 31-Dec-2018 Landlord or Tenant €0

Areas

Areas per m² m² % of ERV +/-% adjust Rent pa Warehouse €80.00 20,100 100.00 % 0.00 €1,608,000 Office €110.00 3,000 100.00 % 0.00 €330,000 23,100 €1,938,000 *Rental Value using Rounded ERV €1,938,000

Lease History

Date Years Months Days Event Rent Paid 01-Sep-2017 1 0 0 Indexed €1,938,235 01-Sep-2018 0 3 30 Indexed €1,938,235 31-Dec-2018 0 6 0 Post Void €0 01-Jul-2019 0 0 0 Reversion €1,938,000

Running Costs

Label Timing Initial Annual Amount Insurance On Valuation every month In Perpetuity 23,100 m² x €0.65 pa = -€15,015 Management On Valuation every month In Perpetuity 23,100 m² x €0.76 pa = -€17,556 Property Tax On Valuation every month In Perpetuity 23,100 m² x €5.94 pa = -€137,214 -€169,785

Component Valuation

30-Nov-2017 Gross rent (Current over-rented) €1,938,235 Rental Value €1,938,000 Less costs -€169,785 Net rent €1,768,450 Valuation rent €1,768,450 YP perp @ 6.00% 16.6667 yp €29,474,167 31-Dec-2018 Gross rent (Re-letting Void) €0 Less costs -€169,785 Net rent -€169,785 Valuation rent -€1,938,235 YP 0 Yrs 6 Mths @ 6.00% 0.4786 yp PV 1 Year 1 Month @ 6.00% x 0.9387

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 3 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

0.4492 yp -€870,697 01-Jul-2019 Gross rent (Reversion) €1,938,000 Less costs -€169,785 Net rent €1,768,215 Valuation rent -€235 YP perp @ 6.00% 16.6667 yp PV 1 Year 7 Mths @ 6.00% x 0.9117 15.1954 yp -€3,571

Gross Value €28,599,899

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 4 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Tenant - TNT (Fedex) (Milan Airport,24,Via Altiero Spinelli,Peschiera Borromeo,20068)

Description 4 - 2 Status Occupied and Let Lease 3 years from 25-Oct-2016 Expiring 31-Aug-2020 Rent Reviews every 0 years Upward only Parent Tenure Freehold Current Rent €86,000 Rental Value €86,000 Valuation Method Hardcore (6.000 % )

Notes

Breaks

Act Date Penalty * 31-Dec-2018 Landlord or Tenant €0

Areas

Areas per m² m² % of ERV +/-% adjust Rent pa Parking €0.00 1 100.00 % 0.00 €0 1 €0 *Rental Value using Manually input ERV €86,000

Lease History

Date Years Months Days Event Rent Paid 25-Oct-2016 1 0 0 Review €0 25-Oct-2017 1 0 0 Indexed €86,000 25-Oct-2018 0 2 6 Indexed €86,000 31-Dec-2018 0 6 0 Post Void €0 01-Jul-2019 0 0 0 Reversion €86,000

Running Costs

Label Timing Initial Annual Amount Insurance On Valuation every month In Perpetuity 1 m² x €0.65 pa = -€1 Management On Valuation every month In Perpetuity 1 m² x €0.76 pa = -€1 Property Tax On Valuation every month In Perpetuity 1 m² x €5.94 pa = -€6 -€7

Component Valuation

30-Nov-2017 Gross rent (Current) €86,000 Less costs -€7 Net rent €85,993 Valuation rent €85,993 YP perp @ 6.00% 16.6667 yp €1,433,211 31-Dec-2018 Gross rent (Re-letting Void) €0 Less costs -€7 Net rent -€7 Valuation rent -€86,000 YP 0 Yrs 6 Mths @ 6.00% 0.4786 yp PV 1 Year 1 Month @ 6.00% x 0.9387 0.4492 yp -€38,633

Gross Value €1,394,578

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 5 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Address Chignolo,Via Generale Carlo Alberto dalla Chiesa,Chignolo,27013

File/Ref No LOGO_2

Assumptions

Valuation Tables Annually in Arrears

Valuation

Gross Valuation €19,463,019 Capital Costs -€314,000 Net Value Before Fees €19,149,019

Stamp Duty @2.00% of Net Value -€371,826 Agents Fee @0.75% of Net Value -€139,435 Legal Fee @0.25% of Net Value -€46,478

Net Valuation €18,591,280 Say €18,590,000

Equivalent Yield 6.5943% True Equivalent Yield 6.8738% Initial Yield (Deemed) 6.5000% Initial Yield (Contracted) 6.5000% Reversion Yield 6.7388%

Total Contracted Rent €1,395,180 Total Current Rent €1,395,180 Total Rental Value €1,440,900 No. Tenants 1 Capital value per m² €464.47

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Capex On Valuation Fixed €314,000 = -€314,000 -€314,000 -€314,000

Running Yields

Date Gross Rent Net Rent Annual Quarterly 30-Nov-2017 €1,395,180 €1,244,690 6.5000 % 6.7729 % 01-Jul-2020 €1,440,900 €1,290,410 6.7388 % 7.0324 %

Yields based on €19,149,019

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 6 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Chignolo,Via Generale Carlo Alberto dalla Chiesa,Chignolo,27013 Freehold Tenure

Tenant - Carrefour (Chignolo,Via Generale Carlo Alberto dalla Chiesa,Chignolo,27013)

Description 3 - 1 Status Occupied and Let Lease 9 years from 01-Jul-2014 Expiring 30-Jun-2023 Rent Reviews every 0 years Upward only Parent Tenure Freehold Current Rent €1,395,180 Rental Value €1,440,900 from Areas (Rounded) Valuation Method Hardcore (6.594 % )

Notes

Breaks

Act Date Penalty * 01-Jul-2020 Landlord or Tenant €0

Areas

Areas per m² m² % of ERV +/-% adjust Rent pa Warehouse €36.00 39,410 100.00 % 0.00 €1,418,760 Office €36.00 614 100.00 % 0.00 €22,104 40,024 €1,440,864 *Rental Value using Rounded ERV €1,440,900

Lease History

Date Years Months Days Event Rent Paid 01-Jul-2017 1 0 0 Indexed €1,395,180 01-Jul-2018 1 0 0 Indexed €1,395,180 01-Jul-2019 1 0 0 Indexed €1,395,180 01-Jul-2020 0 0 0 Reversion €1,440,900

Running Costs

Label Timing Initial Annual Amount Insurance On Valuation every month In Perpetuity 40,024 m² x €0.37 pa = -€14,809 Property Tax On Valuation every month In Perpetuity 40,024 m² x €3.09 pa = -€123,674 Management On Valuation every month In Perpetuity 40,024 m² x €0.30 pa = -€12,007 -€150,490

Component Valuation

30-Nov-2017 Gross rent (Current) €1,395,180 Less costs -€150,490 Net rent €1,244,690 Valuation rent €1,244,690 YP perp @ 6.59% 15.1646 yp €18,875,238 01-Jul-2020 Gross rent (Reversion) €1,440,900 Less costs -€150,490 Net rent €1,290,410 Valuation rent €45,720 YP perp @ 6.59% 15.1646 yp PV 2 Yrs 7 Mths @ 6.59% x 0.8478 12.8561 yp

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 7 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

€587,781

Gross Value €19,463,019

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 8 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Address Verona,14,Strada della Ferriera ,Verona,37135

File/Ref No LOGO_1

Assumptions

Valuation Tables Annually in Arrears

Valuation

Gross Valuation €8,868,841 Capital Costs -€134,500 Net Value Before Fees €8,734,341

Stamp Duty @2.00% of Net Value -€169,600 Agents Fee @0.75% of Net Value -€63,600 Legal Fee @0.25% of Net Value -€21,200

Net Valuation €8,479,941 Say €8,480,000

Equivalent Yield 6.4278% True Equivalent Yield 6.6973% Initial Yield (Deemed) 7.0000% Initial Yield (Contracted) 7.0000% Reversion Yield 6.4582%

Total Contracted Rent €655,860 Total Current Rent €655,860 Total Rental Value €608,540 No. Tenants 1 Capital value per m² €1,003.31

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Capex On Valuation Fixed €134,500 = -€134,500 -€134,500 -€134,500

Running Yields

Date Gross Rent Net Rent Annual Quarterly 30-Nov-2017 €655,860 €611,402 7.0000 % 7.3173 % 01-Feb-2020 €608,540 €564,082 6.4582 % 6.7276 %

Yields based on €8,734,341

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 9 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

Verona,14,Strada della Ferriera ,Verona,37135 Freehold Tenure

Tenant - TNT (Fedex) (Verona,14,Strada della Ferriera ,Verona,37135)

Description 2 - 1 Status Occupied and Let Lease 12 years from 01-Feb-2008 Expiring 31-Jan-2020 Rent Reviews every 0 years Upward only Parent Tenure Freehold Current Rent €655,860 Rental Value €608,540 from Areas (Rounded) Valuation Method Hardcore (6.428 % )

Notes

Breaks

Act Date Penalty 31-Jan-2020 Landlord or Tenant €0

Areas

Areas per m² m² % of ERV +/-% adjust Rent pa Warehouse €72.00 7,028 100.00 % 0.00 €506,016 Office €72.00 1,424 100.00 % 0.00 €102,528 8,452 €608,544 *Rental Value using Rounded ERV €608,540

Lease History

Date Years Months Days Event Rent Paid 01-Feb-2017 1 0 0 Indexed €655,860 01-Feb-2018 1 0 0 Indexed €655,860 01-Feb-2019 1 0 0 Indexed €655,860 01-Feb-2020 0 0 0 Reversion €608,540

Running Costs

Label Timing Initial Annual Amount Property Tax On Valuation every month In Perpetuity 8,452 m² x €3.84 pa = -€32,456 Management On Valuation every month In Perpetuity 8,452 m² x €0.67 pa = -€5,663 Insurance On Valuation every month In Perpetuity 8,452 m² x €0.75 pa = -€6,339 -€44,458

Component Valuation

30-Nov-2017 Gross rent (Current over-rented) €655,860 Rental Value €608,540 Less costs -€44,458 Net rent €611,402 Valuation rent €611,402 YP perp @ 6.43% 15.5574 yp €9,511,846 01-Feb-2020 Gross rent (Reversion) €608,540 Less costs -€44,458 Net rent €564,082 Valuation rent -€47,320 YP perp @ 6.43% 15.5574 yp PV 2 Yrs 2 Mths @ 6.43% x 0.8734

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 10 REPORT Portfolio Valuation CBRE Ltd

Report Date 19 December 2017 Valuation Date 30 November 2017

13.5885 yp -€643,006

Gross Value €8,868,841

Portfolio: Logo & Camelot ARGUS Valuation - Capitalisation 2.50.080 Page 11