VALUATION REPORT ASUNTO OY VUORIKATU 6 (SHARES 1-142) OFFICE UNIT LH2, 142 sq m VUORIKATU 6 00100

Value Date: 3.2.2021 The Date of the Report: 9.2.2021 CONTENTS DESCRIPTION OF THE ASSIGNMENT

• Contents and Description of the assignment • The valuation report is ordered by Harri Saravuo, PKS Retail Oy for • Property Description financing purposes. • Location and Area • The purpose of the valuation is to define the market value of the office unit. • Site and Town plan The valuation currency is Euro. • Building, Pictures and Floor plans • The valuation object is the shares 1-142 of Asunto Oy Vuorikatu • Rental income • 6, located at the address Vuorikatu 6, 00100 Helsinki. The shares • The Property Compared to Market entitle the holder to control an office unit LH2 with lettable area • Market review of 142 sqm. The valuation object is described more detailed on • Economy page 7. • Corona – Material Valuation Uncertainty • The valuation report is conducted by Tiina Kykyri as the • Investment Market responsible valuer and Kaj Söderman as the controller of the valuation. They both act in this valuation in the capacity of an • HMA Office Market independent valuer. • Comparable transactions • Tiina Kykyri has visited the valuation object and made an external • Valuation and internal inspection on 3.2.2021 and gives more information • Valuation assumptions and parametres about the report: • Market Value and Summary [email protected], • Basic principals, Terminology and Liability +358 50 530 4664. • Data used in the valuation • The valuers are qualified and have the required experience. • The valuation is based on information regarding the property and Due to the outbreak of the Novel Coronavirus (COVID-19), at the valuation date its surroundings received from the client, from public registers we do not consider that we can rely upon previous market evidence to fully and from other information sources. inform opinions of value. Our valuation is therefore reported on the basis of This valuation has been conducted in accordance with the rules ‘material valuation uncertainty´. • of the Property Valuation Board of Chamber of Please also note our commentary on the ongoing COVID-19 situation on page 10- Commerce, Good valuation practice (Finnish regulations) and 13 of this report. International Valuation Standards (IVS 2020).

2 PROPERTY DESCRIPTION LOCATION AREA

• The valuation object is an office unit located in district in • Kluuvi is a district which covers majority of the Helsinki Helsinki, on the street level at the address Vuorikatu 6. commercial centre. The district is bordered by Mannerheimintie • Vuorikatu is located in Helsinki city centre. Distance to the main on the west side, Pohjoisesplanadi on the south side, Unioninkatu railway station is ca. 500 meters. on the east side and water areas on the north side. • The property is easily reached with public transportation. Nearest • Majority of the buildings on the area are in commercial use metro station is Helsinki University, located ca. 50 meters north including shopping centres, offices, high street retail and hotels. from the property. Several bus and tram line stops available in There are also some residential properties, and some commercial immediate vicinity. properties have residential units in the upper floors. • All the Helsinki centre services are located in immediate vicinity • On the west side of Vuorikatu the buildings are in residential and within walking distance. Kluuvi shopping centre is located only office use. On the east side the properties are mainly occupied by few steps away. University of Helsinki.

4 PROPERTY CITY PLAN

PROPERTY INFORMATION CITY PLAN Address Vuorikatu 6, Helsinki Valid from 6.11.2009 Register no 91-2-2-2 Planning symbol AK, site for residential buildings Site area 1,288 sq m Building right 5,400 sqm above ground and 300 sq m underground. Possession Freehold, owner Asunto Oy Vuorikatu 6 In addition 250 sq m reserved for warmed and covered pedestrian areas. Easements Easements concerning common wall, ways in the wall and structures. The easements are typical for the city Other In the buildings with street facades the first floor centre asset. must be reserved for commercial use. Encumbrances The property has mortgages worth 900,000 €. Building protection Sr2, protected building that can not be demolished, or repaired so that the style of the street side façade Description of the The rectangularly shaped site is bordered by or roof is altered. site Vuorikatu on the east side, and neighbouring properties on other sides.

5 BUILDING HOUSING COMPANY

BASIC INFORMATION The housing company Asunto Oy Vuorikatu 6 ownes two mainly Year of construction 1922, refurbished 1997, new part contructed 1998 residential buildings located at the address Vuorikatu 6. AB-building Type of use Residential, office and retail building is completed in 1922 and renovated in 1997. C-building is completed Number of floors 5 ja kellari in 1998. The premises controlled by the shares are divided as Area 4,001.4 sq m according to articles of association follows: Parking spaces The building doesn’t have parking spaces. However TYPE UNIT AMOUNT AREA, sq m there are several private parking halls operating in immediate vicinity (closet Kluuvi within 50 meters Residential 57 3,025.4 from the building). Other 1 22 Retail 3 191 TECHNICAL DATA Office 8 763 Frame Concrete, brick TOTAL 69 4,001.4 Facade Concrete, brick In addition the company has control of the basement, storage and Roof Goblet roof covered with bitumen/steel technical facilities. Heating District heating Ventilation Natural ventilation According to the housing manager’s certificate the fees are as follows: Water and sewage Municipality • Maintenance fee: 5.0 €/share/month CONDITION AND LONG TERM REPAIR PLAN • Capital fee no 1: 0.8 €/share/month The building has been totally renovated in 1997-1998, including Capital fee no 2: 0.5 €/share/month heating and plumbing, electrical engineering, facades, interior • construction work and elevator cars. The company has two loans concerning roof renovation (capital fee no 1) and attic repairs/renovations (capital fee no 2). At the time of According to the long term repair plan confirmed in the general meeting valuation, the exact amount of loans was not known. According to in 18.5.2020 the planned renovations for the next 10 year equal to house manager’s certificate dated 31.10.2017 the total amount was 764,000 € (ca. 1.6 €/sqm/month). The largest renovations needs 298,888.67 €. concern the roof coating (30,000 € in 2020-2021), façade, window and In this valuation we have not taken into account the balcony renovations (350,000 € in 2022-2023) and bathroom/shower company loans which are the responsibility of the shareholder. room renovations (300,000 € in 2024-2028).

6 VALUATION OBJECT RENTAL INCOME AND EXPENCES

The valuation object is the shares 1-142 of Asunto Oy Vuorikatu 6, The unit is currently leased to Unigrafia Oy. The Rating Alfa status of entitling the holder to control an office unit LH2 with lettable area of the company as at 9.2.2021 is AAA, excellent. The agreement is valid 142 sqm. The unit is located on first floor with direct access from until further notice with 4 months notice period. The monthly rent is Vuorikatu and from inner yard. The floor plan is presented below. 4,200 € (29.58 €/sqm/month). The rent is tied to changes in cost of living index, and adjusted annually (upwards only) starting in 2022. The office unit consists of open office with one conference room, According to KTI the average market gross rent in the Helsinki city kitchenette and two toilets, of which one is equipped with shower. centre offices, in new lease agreements (size 51-200 sqm) was 30.9 The walls are painted white and the floor is covered with grey €/sqm/month in September 2020. The median level was 30.0 carpet. The unit has been totally refurbished (including the €/sqm/month and the lower-upper quartile range 27.0-33.4 ventilation unit and tubes, electricity, lightning, toilet and shower €/sqm/month. premises, kitchen and surfaces) during the summer 2020, and is in excellent condition. The office unit is equipped with cooling. In the prime CBD locations (, Eteläesplanadi, Pohjoisesplanadi and the immediate side streets) the asking rents in fully refurbished offices are roughly 40.0 €/sqm/month, even higher in some particular assets. Although the distance to Aleksanterinkatu is only some 100 meters, the location of the valuation object is clearly more modest and remote compared to the prime locations. Also it is located on the street level, and the windows on Vuorikatu side are rather small. However the condition of the unit is excellent Therefore we believe the accurate market rent level in the target unit to be close to the average and median level, 30.0 €/sqm/month. In our calculations we have adopted the current maintenance fee of 5.0 €/sqm/month as operating and maintenance cost. In addition a capex reservation of 1.6 €/sqm/month, based on the current long term repair plan, is adopted for the cashflow period of 10 years. For terminal value a slightly lower reservation of 1.0 €/sqm/month is adopted. We have adopted a long term vacancy rate of 3% through the cashflow, which reflects the tenant rotation (average 3 year lease agreement with 2 months void in between). 7 PICTURES

8 MARKET REVIEW CORONA - MATERIAL VALUATION UNCERTAINTY RICS MATERIAL VALUATION UNCERTAINTY CLAUSE

The Coronavirus (COVID-19) pandemic rapidly changed the outlook The outbreak of the Novel Coronavirus (COVID-19), declared by the for the world economy, the Finnish economy and, of course, the real World Health Organisation as a “Global Pandemic” on 11 March estate market. 2020, has impacted global financial markets. Travel restrictions have The effects have been clearly visible on the stock market globally, been implemented by many countries. first with sharp falls in prices globally and afterwards with recovery Market activity is being impacted in many sectors. As at the /fluctuation. The pandemic and actions of the authorities to stop it valuation date, we consider that we can attach less weight to have had a direct impact, for example on private consumption and previous market evidence for comparison purposes, to inform business conditions. The real estate market is known to be post- opinions of value. Indeed, the current response to COVID-19 means cyclical, i.e. in addition to quick reactions deeper changes in the operating environment are reflected with a lag in property rental that we are faced with an unprecedented set of circumstances on levels, vacancy rates, investors' return targets and market values. which to base a judgement. The situation lives on every day in the light of new information. It is Our valuations are therefore reported on the basis of ‘material already clear that COVID-19 was not a rapidly transient epidemic, valuation uncertainty’ as per VPS 3 and VPGA 10 of the RICS Red but when expanded into a pandemic, its effects on the world Book Global. economy will be long-lasting. Coronavirus has also affected the real estate market, both rental and investment markets, but in a more Consequently, less certainty – and a higher degree of caution – polarizing way compared to economic effects. should be attached to our valuation than would normally be the case. Given the unknown future impact that COVID-19 might have It is currently impossible to predict how much of an impact and on the real estate market, we recommend that you keep the disruption caused by the COVID-19 virus will have on the real estate valuation of properties under frequent review. market and how long it will last. Anyhow there is still a lot of real estate focused investment capital available. GEM NOTE! As a result, we don’t have any clear view on the value implications of Above clause is prepared for RICS Valuations based on Red Book COVID-19 in real estate. The accuracy of the valuation in general is Global standards. weaker than before but there is a clear variation in it between different asset classes and sub-markets. GEM Valuation Oy follows the Finnish valuation practice in accordance with the International Valuation Standards 2020, and The subscriber / reader of the valuation report should understand this uncertainty in the valuation and take it into account when therefore RICS clause has been applied to the extent as appropriate making their own decisions. to the Finnish AKA certified valuers.

10 SAVILLS VALUATION UNCERTAINTY CLAUSE [1/2]

SHORT TERM IMPACTS ON PROPERTY MARKETS Landlords are directly affected by the issues described above in the The hotel sector is the earliest and, as things stand at present, also case of turnover-linked rents or leases. In addition, we expect rent the most affected. For short term residential, occupancy rates are reductions or deferral requests from particularly affected users. declining significantly, especially at trade fair locations. Since some events are merely postponed, a certain catch-up effect can certainly Regarding the rental/occupational markets, we assume that rental be expected once the corona crisis has been overcome. decisions will be postponed in some cases due to uncertainty about Nevertheless, even with a "mild" course of events, considerable future economic developments and existing travel restrictions. losses in turnover and, without state support, insolvencies are to be However, this will probably not be measurably reflected in the sales expected. figures for the second quarter. Conversely, we already see an uptick The same applies to the retail trade, especially in tourist locations. in enquiries for short term occupation of last-mile delivery or Shops and catering facilities in railway stations and airports are also logistics space in some sectors. likely to experience a sharp drop in sales. Many investment deals are also likely to be delayed due to possible Ongoing development projects are likely to be negatively impacted. travel restrictions imposed by contractual partners and increased This is due to either illness of site workers or restrictions imposed by uncertainty. The temporary uncertainty is also likely to have a governments regarding workers accessing sites, as well as the negative impact on the availability of debt capital. The distortions on probable supply chain issues with materials. The knock on impact of the financial markets have opposite effects on the real estate this is clearly an increasing development period and delayed investment markets. On the one hand, bond yields and interest rates completion date. have fallen, making real estate even more relatively attractive. On Flexible workspaces are already showing lower capacity utilisation the other hand, the slide in the stock markets has caused the real (with many Governments encouraging or insisting on home working) estate ratio in multi-asset portfolios to rise - possibly beyond the especially with regard to their event rooms. However, we do not target ratio. However, we do not expect this to trigger property sales expect the extent of the threat to the existence of these companies in the short term. Instead, investors are likely to wait and see how to become apparent until the number of infected individuals the markets develop in the coming months. Meanwhile, risk increases significantly and the pandemic lasts longer. aversion is even higher than it has been recently, which translates into a stronger core focus on the real estate markets and a corresponding yield spread between core and other risk classes.

11 SAVILLS VALUATION UNCERTAINTY CLAUSE [2/2]

MEDIUM TERM IMPACTS ON PROPERTY MARKETS In the second, less favourable scenario, the number of infected Turning to the medium term possibilities, there are two probable individuals will continue to rise in the coming months and will not scenarios for the rest of the year. peak until the second half of the year. A global recession would then be virtually unavoidable. For the real estate markets, this would In the more favourable scenario, the number of people infected probably mean a significant drop in demand, space turnover and worldwide will peak in the coming weeks and then level off. This rents in all segments as well as rising vacancy rates. In this scenario, would then result in a U-turn for the economies, i.e. a rapid collapse demand within housing markets would also be negatively affected in economic activity, followed by a brief trough and a rapid recovery due to rising unemployment and/or falling incomes. including catch-up effects. In this case, the effects on the real estate markets would be limited. Although the short-term effects described Transaction volumes in the investment market would fall because above would persist for some time, they would essentially be of a increased risk aversion would meet with rising market risks and debt temporary nature, especially since many governments have already capital would only be available to a limited extent. The declining adopted supportive fiscal policy measures and would probably demand would be met by an increasing willingness to sell and initial decide on further measures if necessary. yields would likely rise.

Nevertheless, we expect a somewhat higher risk of rent losses SUMMARY BY GEM across all types of commercial uses, especially in the segments that are particularly affected, even in this scenario. Some business The effects of the spread of Covid-19 on the different types of models are not resilient enough to withstand even a brief slump in premises and submarkets of the real estate market will be differen- demand. Since deals are already being postponed in both the tiated and, in some cases, further polarize the investment market. investment and letting markets, and the entire transaction process is therefore being postponed, we expect lower take-ups and The effects will also be differentiated over time so that the short- term effects and the longer-term consequences will be affected by transaction volumes for the current year. varying intensity on different target types.

Moreover, the impact on the Finnish market will be of its own nature, which reflects the characteristics of the market and thus at least partly different from other countries. GEM view of the Finnish situation is presented on the next page.

12 IMPACT ON THE FINNISH MARKET

In the beginning of the spread of global Covid-19 in Finland from Covid-19 has had the greatest impact on the hotel and restaurant mid-March onwards the market reactions were first minor and sector, on gatherings and other public meetings, and on premises in waiting whilst effects in the major market, in many cases also heavily their use. In these industries increased domestic demand during the infected by the virus, were monitored. 2000 summer holidays lifted visitor numbers partly even above 2019 figures. Towards the year-end the situation again deteriorated. In April the marked soon started to cool down, both in terms of the Restrictions on restaurant opening hours and customer numbers in sales and rental market. The more Helsinki CBD oriented and more the spring were eased since June, but they begun to tighten again international investment sector was in question the deeper the from October onwards. The same development was seen also with cooling was. And the other way around, the further from Helsinki restrictions on public events, after eased period in August. and dominated by local players the sub-market was the less it was harmed by Covid-19. The number of infections increased worryingly in September and by the end of November Finland experienced the highest daily infection Situation started to improve and market become more active in late rates during the epidemic. Tighter restrictions and recommenda- May and after opening of restaurants and certain public services tions from 23rd November onwards on gatherings, hobbies and e.g. museums, people became more relaxed which again boosted use of masks have helped to bring infection rates under control, at positive atmosphere. The development during June and July was least momentarily. International travelling restriction have tightened from the end of 2020 based on international Covid-19 development. supported by the stabilizing number on new infections at less than 10 cases per day and number of casualties reduced towards zero. The atmosphere due to the start of vaccinations in late December is Towards the year-end, the infection situation started to deteriorate optimistic, although health and economic conditions are expected dramatically compared to the summer. to remain challenging in 2021, despite forecasted faster economic recovery that in the worst-case scenarios in late spring 2020. So far values and rents of the prime and secondary residential, office and logistic markets haven’t been affected by the virus too much, and even certain retail sectors also beyond grocery segment are doing pretty well. Some of the sales processes and leasing negotiations put on hold due to Covid-19 have continued from May 2020 onwards and completely new ones have been launched, and in both situations we have also seen successfully closed deals.

13 ECONOMY

Finland's economic and employment development seems to have The world economy will recover from the deep recession within survived from 2020 with much less damage than many other 2021 as growth accelerates towards the end of the year. The world countries. However, the second wave of the pandemic will slow economy is expected to grow 4.7% in 2021 and 3.8% in 2022. World economic growth as demand for services remains weak and foreign trade in goods is already recovered to pre-crisis levels, driven by the trade suffers from the continuation of the pandemic. The labor emerging economies. Risks are the worsening pandemic and the market situation, weakened by the crisis, is also hampering wave of bankruptcies, especially in the service sectors. economic growth. Employment clearly weakened last year. In 2020, employment will In 2020, GDP is estimated to contract less than expected, by 3.3%. decrease by an average of 1.5% and the employment rate will fall to This year, GDP growth is estimated at 2.5% and in 2022 at 2%. about 71.5%. The number of employed is forecast to decline slightly Estimates of growth are subject to exceptional uncertainty. In the further in 2021 and to turn to growth in 2022. The slow economic medium term, growth will slow due to lower labor input growth. recovery and the fall in employment are likely to raise the unemployment rate to 8% in 2021. Source: VM Although World Trade and Finland's export demand turned to growth after spring, the volume of exports is estimated to shrink by Inflation has been clearly slowed by the corona crisis. In 2020, 10.4% in 2020. Exports are estimated to grow by 5% in 2021, with a inflation remained slightly positive at around 0.3%. Weak demand focus on the second half of the year. Exports are expected to and general uncertainty will keep inflation low in early 2021. The increase by 4.6% in 2022 but to remain at 2.2% in 2023. In Jan-Nov full-year 2021 inflation rate is estimated to increase to 1.0%. 2020, the value of exports decreased by 13.7% y-o-y due to both a Public debt will increase from just under 60% to 69% of GDP in decrease in volume and lower prices. Sources: VM, Customs 2020. The imbalance between government revenue and Uncertainty in the global economy impedes companies' willingness expenditure and the automatic increase in expenditure due to an to invest in 2021. Private investments are estimated to decrease by aging population will sustain the growth of the debt ratio, which will 6.0% in 2020 and 2.0% in 2021. Investment in construction, slow but is likely to increase to 75% by 2025. especially housing construction, will clearly decrease in 2021. The volume of construction is forecast to decrease by 1.1% in 2020, Private consumption is estimated to decrease by 3.9% in 2020 but to but in 2021 construction will decrease clearly, by about 4.3%, as the increase by 3.8% in 2021 to the level before the Covid-19 pandemic. number of building permits granted has fallen sharply. The Covid-19 crisis has changed the structure of consumption from The ECB keep financial conditions light for a long time, thus consumption of services to consumer durables and groceries. In supporting euro area economies over the crisis. Strong fiscal policy 2020 and 2021, real disposable income is projected to grow by only measures have offset the impact of the crisis and the EU Recovery about half a percent per year. Source: VM Fund will support investment and demand. The ECB will continue its Pandemic Purchasing Program with € 1,350 billion. Interest rates remain at historically low levels. Source: VM, Bank of Finland 14 INVESTMENT MARKET

According to KTI's preliminary calculation, total investments in 2020 Last year, the share of portfolio transactions rose to 54% due to a reached approximately EUR 5.6 billion, which is 13% less than last strong first and last quarter. Cross border investments accounted for year. The timing of major transactions largely determines the just over half of the total volume. Of the foreign investments, the other development of the transaction volume in Finland, especially Nordic countries accounted for 47%, the rest of Europe for about 34% quarterly but also annually. Investment demand has remained good. and other foreign countries for 19% (24% in 2019). Source: KTI However, there is short supply of good, large enough properties or portfolios. In addition to offices, there is now demand especially for The Helsinki Metropolitan Area's share of the total volume in 2020 was th residential portfolios and public use properties. 57% thanks to major transactions in Q1 2020. In the 4 quarter, the share of the rest of Finland rose to as much as 58%, mainly driven by The volume of EUR 2.81 billion in Q1 was exceptionally high. Due to care home and residential portfolio transactions. the stringent restrictions, the impact of the corona was most reflected in Q2's volume, which remained at EUR 460 million, which The largest single transaction in 2020 was the sale of OP's head office was the lowest quarter since Q3/2013. In the summer, as property for EUR 480 million to Varma and South Korean investors. In restrictions eased, investment activity gradually recovered, although 2020, the largest office portfolio transaction was 9 office properties in total Q3 volume (EUR 750 million) fell sharply from the 3rd quarter Ruoholahti, Helsinki that Antilooppi bought from Sponda. The largest of the previous year (EUR 1.53 billion). The transaction volume of care home property transaction took place in Q4 2020, when eQ EUR 1.54 billion in October-December reached almost last year's Hoivakiinteistöt fund sold a portfolio of 55 properties for EUR 222 level, when almost EUR 1.6 billion was transacted. million to SBB i Norden AB.

In 2020, most transactions were made in offices worth EUR 1.8 Transaction volume (Billion €) billion. Of the total volume, offices accounted for 32%, while public 12 use properties (incl. care) rose to second place with a share of 23%. 10 Residential properties accounted for 18%, retail properties for 17% 8 and industrial and logistics properties for 10%. 6 Property prices in Helsinki CBD more than doubled in the 2010s. 4 Yields dropped to an all-time low pre pandemic. No significant shift 2 in initial yields for prime properties have been observed, excluding 0 prime shopping center initial yields with a shift upward. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: KTI Foreign investor Domestic investor 15 OFFICE PROPERTY MARKET OPERATING ENVIRONMENT

The office market is fragmented with numerous submarkets with HMA Offices, Gross Take-up, sqm their own characteristics. Within the area, the space stock may be 450 000 heterogeneous, with rental levels and occupancy rates varying by 400 000 property. Divergence is expected to be increasingly visible in 350 000 liquidity, yields, rental levels and occupancy rates in the future. 300 000 The megatrend among tenants is to favor high-quality but space- 250 000 efficient spaces. This is due to enhancing tenants' own business and 200 000 new space utilization strategies to increase productivity. User 150 000 companies focus on efficient cost management. 100 000 50 000 As squares and workstations decrease, more attention is paid to the 0 comfort and interactivity of the premises. Business premises and their surroundings have become one of the companies' 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 attractiveness factors in hiring the best employees. The supply has Source: KTI Q1-3/2020 also been boosted by the multi-seated work, which are a sign of a multi-office and coworking-office growth. Prime Yields

For advanced space users, flexibility in contract terms is often more 10,0 % important than, for example, rent-free months. If the premises are 9,0 % not functional or the location does not attract, no incentives are enough for tenants. 8,0 % 7,0 % Finnish rental practice is safe and internationally one of the most 6,0 % straight forward. Indeed, there is a wide spectrum of existing leases 5,0 % with various clauses, which makes it difficult to determine and compare actual market rents. 4,0 % 3,0 %

Helsinki Turku Oulu Jyväskylä 16 OFFICE PROPERTY MARKET USER MARKET AND RENTAL TREND

Rental activity was brisk and rents for prime premises have been on the rise since 2017. The annual net take-up in the Helsinki Net take-up HMA Office, sqm Metropolitan Area (HMA) was positive for four consecutive years but 100000 turned negative in early 2020 and has continued to decline. 50000 However, brisk construction and companies’ willingness to relocate have kept annual gross take-up high at nearly 400,000 sqm. 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 In the HMA, the vacancy rate has risen to almost 12%. In other large -50000 cities, the vacancy rate has remained almost unchanged, in Tampere at less than 10% and in Turku and Oulu at 7-7.5%. Sources: Catella; -100000 KTI -150000 The Helsinki office occupancy rates have decreased during the year. Increase in the vacancy rate has so far been moderate, about a Source: KTI couple of percentage points. Although conversions and demolitions have increased, brisk construction, the popularity of space efficiency Average Gross Rents, Offices In Central City Areas and the decline in space requirements keep vacancy high. In the fall eur/sqm/month Autumn 2020 RAKLI-KTI barometer, the outlook was negative with about 60% of 40 Forecast autumn 2020 + 12 mths respondents predicting an increase in vacancy in the HMA and 35 elsewhere in Finland, although balance figures showed a slight 30 increase from the spring barometer. 25 20 15 KTI's index of new office leases in Helsinki CBD decreased by 1.3% in 10 the leases that started in March-Sep, but still showed an annual 5 increase of just over 1%. The median remained at €30 but the upper 0 quartile fell from €36 to €33.50. The market is blurred by Corona, as Oulu Turku Espoo

the number and squares of new leases clearly decreased from Helsinki Tampere previous periods. In the centers of Tampere, Turku and Oulu, the Jyväskylä average gross rental levels stand at 20-23 euros. Source: KTI

Vantaa (Aviapolis) Vantaa Source: RKLI-KTI barometre survey

17 OFFICE PROPERTY MARKET OFFICE BUILDING

The HMA office stock of approx. 8.8 million sqm covers approx. 45% of Commercial Property Stock 31.12.2019 the total nationwide office stock. Helsinki accounts for almost 70%, Industrial and warehouse Office Retail Espoo for 20% and Vantaa for 10%. The HMA has received approx. 1.7 Helsinki million sqm new or refurbished office space between 2008 and 2019. Espoo During the same period, approx. 900,000 sqm of office space has been Vantaa converted or demolished. The other major cities: Tampere, Turku, Tampere Oulu, Jyväskylä, Lahti, and Kuopio cover approx. 19% of the Finnish Turku office stock. Source: KTI; RT Oulu Kuopio Jyväskylä Source: Statistics Finland The uncertainty in demand for office space caused by Corona is Lahti expected to continue for a long time. The start volumes for commercial and office buildings will decrease less than forecast in - spring but to remain at 4.1-4.2 million cubic meters this year and next. sqm 500000,0

Office construction is slowing down, especially outside large cities. 1000000,0 1500000,0 2000000,0 2500000,0 3000000,0 3500000,0 4000000,0 4500000,0 5000000,0 5500000,0 6000000,0 However, large regional building projects, especially in the HMA and Tampere, will continue for several years. Sources: RT, KTI Office Construction 2019/Q4-2020/Q3 In 2019/Q4-2020/Q3, approx. 222,000 sqm (leasable area) of new or (1000 sqm rentable area) redeveloped office space was completed, and in Sep, approx. 223,000 Lahti Completed Under construction Under Planning sqm was under construction in the HMA. Of the completed projects, Jyväskylä Helsinki accounts for 192,000 sqm. Most of new office space under Kuopio construction, 148,000 sqm, locates in Helsinki. The volume of Oulu conversions in Q1-Q3 2020 was equal to the completed new projects, Turku so no growth in the office stock is expected. Tampere Vantaa Source: KTI, RPT In other large cities, some 105,000 sqm of new office space was Espoo completed in 2019/Q4-2020/Q3. Most of the space was completed in Helsinki the Tampere region, about 35,200 sqm. About 52,400 sqm of new or refurbished office space was under construction, most of the space, 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 about 21,200 sqm, in Tampere. Sources: RT, KTI and RPT Docu

18 COMPARABLE TRANSACTIONS PROPERTY COMPARED TO MARKET

In the table below we have listed some latest transactions of STRENGTHS commercial units in the Helsinki city centre area. Source: KVKL • Office unit in excellent condition • Located in Helsinki city centre • Coefficient of maintenance fee 1.0 • Demand for small city centre offices is high

WEAKNESSES • The location is not prime, although the distance to prime office locations in Helsinki CBD is very short. The unit price has varied between 2,682-6,000 €/sqm the average • Street side of the unit is partly underground being 4,791 €/sqm. Majority of the 1st floor premises are currently in • Current lease agreement is valid until further notice -> unit can retail use. Information about the possible rental situation is not be vacated in 4 months notice known, so the units can have been sold as vacant or there may have been a lease contract in place. OPPORTUNITIES Single commercial units are normally purchased by owner users or • Find a tenant willing to commit for a long term small investors. The unit prices vary a lot depending on the • Amount of small companies is increasing which will increase the purchaser, intended use and leasing situation. In Helsinki city centre rental demand for smaller city centre offices the yields for office and retail units are on a level of 5.5-6.0%, but the level quickly rises to 6.0-7.0% when city centre distance • Amount of private investors and owner users is increasing, which increases. will increase the investment demand for retail and office units in good locations

THREATS • Micro location decreases the demand and rent level

19 VALUATION KÄYTETYT OLETUKSET JA MUUTTUJAT

21 KASSAVIRTALASKELMA

22 MARKET VALUE SUMMARY

• We have estimated the market value of the shares 1-142 of • The valuation object is a totally renovated small office unit of 142 Asunto Oy Vuorikatu 6, entitling the holder to control an office sqm located on the street level. The location is a little remote, unit LH2 with lettable area of 142 sqm located at the address but still clearly in Helsinki city centre. Vuorikatu 6 Helsinki, to be • The unit is currently leased with a lease agreement valid until further notice, with 4 months notice period. The current rent is Seven Hundred Forty Thousand Euros roughly on a market level. (740,000 €). • We believe that in its current condition the unit would be an interesting investment opportunity to a range of small investors as well as for some owner users. • As the most probably buyer is an investor the main valuation approach used is income approach. Note: The presented market value is debt-free; we have not • Value date is 3.2.2021. • taken into account the company loans which are the Valuation accuracy is typical, i.e. +/- 10 %. • responsibility of the shareholder.

Helsinki 9.2.2021 GEM Valuation Oy

Tiina Kykyri Kaj Söderman M.Sc. (Tech.) M.Sc. (Tech.) Due to the outbreak of the Novel Coronavirus (COVID-19), at the valuation date Authorized real estate Authorized real estate we do not consider that we can rely upon previous market evidence to fully inform opinions of value. Our valuation is therefore reported on the basis of valuer (AKA) valuer (AKA) ‘material valuation uncertainty´.

Please also note our commentary on the ongoing COVID-19 situation on page 10- 13 of this report.

23 TERMINOLOGY CONFIDENTIALITY AND LIABILITY

MARKET VALUE CONFIDENTIALITY AND CONFLICTS OF INTERESTS • Market value is the estimated amount for which an asset or This valuation report is confidential and valuer GEM Valuation Oy liability should exchange on the valuation date between a willing will not take any responsibility toward third parties. buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties each acted knowledgeably, Consent of the valuer shall be asked in case of disclosing this report prudently, and without compulsion (IVS). to third parties. • Market value is without debt. The valuer has no conflicts of interest with the client or other parties • If there is remaining company loan encumbering the shares, that of the assignment. share of the loan has to be reduced from the market value when defining the purchase price. LIABILITY NET OPERATING INCOME NOI GEM Valuation Oy has a liability insurance for its operation granted • NOI I is passing rent minus those operating costs not covered by by IF Insurance Company. In addition, GEMs AKA authorized valuers tenants. are insured through the Association of the Property Valution in Finland (SKAY) via liability insurance from OP Pohjola. • NOI I is based on the annualized first month net rent. • NOI II is NOI I minus long term repair and renovation costs. The maximum allowance for damages is no more than the fee from the assignment, except in the case of intent or gross negligence. INITIAL YIELD GEM is liable for the third party damage according to applicable law. • NOI is divided by the estimated market value. • NOI is calculated for NOI I and for NOI II. • Initial yield for NOI I is equal to UK gross initial yield.

24 DATA USED IN THE VALUATION

PROPERTY LEASE CONTRACTS • Extract from land data bank system (real estate). • We have seen the lease agreement • City of Helsinki for town plan information. OPERATIONAL COST AND MAINTENANCE CHARGE TECHNICAL DATA • Operational costs and maintenance charge information is based • Information provided by the Client on information received from the client. • Site visit. • Benchmarking figures by the Institute of Real Estate Economics (KTI). • We have assumed that there has not been any changes between the site visit and the Valuation date or the Date of the Report. • KTI information should not be given to third parties.

ENVIRONMENTAL DATA COMPARABLE TRANSACTIONS • Not available. • KVKL (Central Federation of Finnish Real Estate Agencies) database FLOOR AREA • The net lettable area mentioned in this report is based on the house manager’s certificate. We have not had any floor area measurement certificates in use.

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