Building Wealth “Anybody Can Buy a Building

BUILDING WEALTH “ANYBODY CAN BUY A BUILDING. EVERYBODY IS AN EXPERT IN PROPERTIES. BUT IT TAKES A CERTAIN KIND OF SOMEBODY TO BUILD WEALTH WITH REAL ESTATE ASSETS.”

KLAUS W. BENDER ACRON HELVETIA XII IMMOBILIEN AG CITY HOTEL OBERLAND INTERLAKEN

INVESTMENT IN AN ESTABLISHED HOTEL IN THE TOURISM HOT SPOT

PUBLICATION MARCH 2018 TOP OF EUROPE TOP LOCATION THE BEST AMONG THE TOP INVESTMENT OPPORTUNITIES CONTENTS

THE INVESTMENT AT A GLANCE 5

INVESTMENT CONCEPT — THE OFFER 6

INVESTMENT HIGHLIGHTS 8

FINANCING AND INVESTMENT PLAN 9

HOTEL’S OPERATION ACCOUNTINGS 12

THE FORECAST 13

ORGANIZATIONAL STRUCTURE 18

SWITZERLAND AS AN INVESTMENT LOCATION: TOP GLOBAL RANKING 20

SWISS HOTEL MARKET: ON A GROWTH TRAJECTORY IN A GLOBALLY EXPANDING SECTOR 22

THE PROPERTY: FROM 3-STAR STANDARD HOTEL TO A MODERN MULTIFUNCTIONAL ASSET 26

INTERLAKEN AS A VACATION, ADVENTURE AND CONFERENCE REGION 44

YOUR PARTNERS 48

RISK FACTORS 54 Against the backdrop of ACRON AG’s solid track record of success in Switzerland and long-standing experience and knowledge of the Swiss market, ACRON presents a core plus investment in an excellent location: the heart of Interlaken, a hot spot for tourism in the Swiss Alps. By carrying out focused construction projects, we aim to further improve the variety of amenities and quality of the three-star City Hotel Oberland property over the next three-and-a-half years, thereby setting the stage for also increasing future cash flows and achieving value growth for investors.

ACRON offers qualified investors in Switzerland the opportunity to participate in a real estate investment in a Swiss hotel property:

THE PROPERTY – CITY HOTEL OBERLAND, INTERLAKEN, SWITZERLAND

192-room hotel with restaurants, a bar, retail space, and staff housing Three-star lodgings for the following target groups: ■■ Individual travelers ■■ Seminar and meeting attendees ■■ Adventure tourists ■■ Groups Modernization: beginning in off-season 2018

ACRON HELVETIA XII IMMOBILIEN AG

■■ Annual cash-on-cash return (ratio of average cash distributions to the total amount of cash invested) of 8.25% (forecast) and ■■ annual IRR (internal rate of return) of 15.5% (forecast) based on ■■ a planned medium-term investment horizon of only four years.

4 | AHXII Investing Together – THE INVESTMENT Your Interests Are Our Interests AT A GLANCE Maximizing distributions and returns is our top priority – This is the goal ACRON has in mind when structuring an investment ACRON HELVETIA XII Immobilien AG (AHXII) model with a preferred return for investors. holds the City Hotel Oberland in Interlaken ACRON will not receive a share of the through the intermediary City Hotel investment return until a specified annual Oberland AG. ACRON HELVETIA XII distribution yield of at least 6% and a total Immobilien AG has acquired all of the shares of annual investment return (IRR) of at least 12% has been realized for investors. This City Hotel Oberland AG. ensures that the interests of investors and ACRON are aligned. This incentivization The capital structure for the acquisition will of ACRON also avoids a concentration be as follows: on ongoing asset management fees and ■■ Equity from ACRON AG and co-investors in encourages ACRON to exit the investment the amount of CHF 22,600,000 as early as possible and at an optimal time for investors. ■■ Financing in the amount of CHF 21,000,000 from Raiffeisen Bank (Switzerland) ■■ Financing in the amount of CHF 4,000,000 After all liabilities owed have been paid and from Schweizerische Gesellschaft für the appropriate reserves set up as determined Hotelkredit (SGH) by the AHXII Board of Directors, AHXII will distribute any remaining cash (“available cash The CHF 25,000,000 in borrowed capital will flow”) once a year as follows:: be used firstly to refinance the City Hotel Oberland AG liability and secondly to finance ■■ The operating cash flow will first be the planned renovations. distributed to the holders of preference shares until an annual return of six percent AHXII investors are invited to participate (6%) on their total initial capital contribution in the company’s capital increase by up is reached (“preferred return”). This preferred to CHF 22.5 million by way of the issue of return is not cumulative. 45,000 preference shares at an issue price ■■ If there is any available cash flow remaining, of CHF 500.00 each. seventy-five percent (75%) will be distributed to all holders of preference shares and The use of the funds will be strictly in twenty-five percent (25%) will be distributed accordance with the “Financing and Investment to ACRON AG, the founding shareholder and Plan” section in this brochure. The funds will be holder of the AHXII ordinary shares. used exclusively to acquire equity investments ■■ The cash available upon exit (sale or in the property company described in this refinancing of the property or AHXII) will document, to repay short-term liabilities and initially be distributed to the holders of loans from banks, and to pay fees and other preference shares until an annual return costs associated with this investment in the (IRR) totaling twelve percent (12%) has been appropriate amounts. reached. ■■ If there is any available cash flow remaining ACRON AG acts as the initiator of this subsequently, sixty-five percent (65%) will transaction, and as service provider and be distributed to all holders of preference property manager and will make available its shares and thirty-five percent (35%) will be professional expertise and wealth of experience paid to the sponsor, ACRON AG. to AHXII investors.

THE INVESTMENT AT A GLANCE | AHXII | 5 INVESTMENT CONCEPT — THE OFFER

investors who ACRON HELVETIA XII IMMOBILIEN AG want to invest their FOR ... investors who available liquidity in would like to benefit Swiss francs for the from tax-advantaged medium term and prefer distributions. a tangible asset.

investors who would like to invest investors who in Switzerland, a top want to benefit from global investment the opportunities of location. investing in a foreign currency, specifically Swiss francs. investors who already hold investments in US dollars investors who and euros and would INVEST IN would like to invest like to further diversify ACRON HELVETIA XII IMMOBILIEN AG in an international their portfolio with an SWITZERLAND growth sector. investment in Swiss INTERLAKEN francs. CITY HOTEL OBERLAND

EuroAirport Basel Mulhouse Freiburg Zurich Airport Business Airport St. Gallen-Altenrhein Basel Zurich St. Gallen

Lucerne Bern Bern Airport Chur

Lake Thun Lake Brienz Interlaken St. Moritz Lausanne Montreux Aéroport International de Genève

Genf Lugano Zermatt Lugano Airport

6 | AHXII | INVESTMENT CONCEPT — THE OFFER ACRON HELVETIA XII IMMOBILIEN AG

Investment volume CHF 47,600,000 Equity CHF 22,600,000 Total revenues hotel and retail CHF 11,500,000 (2020) Registered office c/o Buchhaltungs- und Revisions - AG Bundesstrasse 3, 6302 Zug Legal form stock corporation Registered on September 26, 2017 Company number/UID CHE-301.519.542 Valor CH039904504 ISIN CH0399045043 Share capital (ordinary shares) CHF 100,000.00 (100,000 registered shares with a nominal value of CHF 1.00) Share capital (preferred shares) CHF 45,000.00 (45,000 registered shares with a nominal value of CHF 1.00) Subscription (issue price) CHF 500 per share Number of voting rights per share 1 President of the Board of Directors Kai Bender Member of the Board of Directors Peer Bender

ACRON HELVETIA XII IMMOBILIEN AG | 7 INVESTMENT

HIGHLIGHTS annual 15.5% return (IRR)* ACRON HELVETIA XII Immobilien AG carries on ACRON’s proven investment concept in the Swiss real estate market, offering investors a secure, transparent, and profitable real estate investment: ∅ cash-on-cash- 8.25% distribution* ■■ Property already acquired ■■ Full alignment of the interests of the initiator, hotel operator, and investors ■■ Preferred distributions for investors ■■ Investment by ACRON with secondary investment horizon 4 years entitlement to distributions maximally* ■■ Right to preferred return on equity investments ■■ Tax optimization: partial repayment of equity through payouts from the capital contribution reserve, so no withholding tax attractive exit ■■ Acquisition of the property well under options market value ■■ Current property appraisal by prominent *forecast Swiss real estate appraisers completed ■■ Property with enormous appreciation potential ■■ Security: risk minimization and independence thanks to mix of uses and guests ■■ Financing commitment for renovation already obtained ■■ Ten-year management contract (plus options) signed with experienced local hotel operator ■■ Ten-year lease with retail anchor tenant Investment volume Bongénie Grieder CHF 46,700,000 ■■ Experienced investment initiator with Real estate acquisition a highly effective local expert network CHF 32,600,000 ■■ Cash flow forecast by ACRON based on Refurbishment costs conservative assumptions CHF 10,500,000 ■■ Maximum transparency: ACRON standards Market value at actual state (annual reports, NAV reporting, General CHF 45,370,000 (E&Y) Meeting of Shareholders, Intralinks, etc.) Market value after refurbishment CHF 60,140,000 (E&Y) (132.5%)

Appraisal of Ernst and Young as of September 30, 2017

8 | AXII | INVESTMENT HIGHLIGHTS FINANCING AND INVESTMENT PLAN

SOURCE OF FUNDS Per Key (rounded) CHF Equity 117,098 22,600,000 Senior Debt 129,534 25,000,000 TOTAL SOURCE OF FUNDS 246,632 47,600,000

USE OF FUNDS Real estate acquisition 168,912 32,600,000 Working capital reserve 1,036 200,000 Financing costs 3,109 600,000 Due diligence costs 2,902 560,000 Refurbishment and project development fee 2,591 500,000 Loan fee (Origination Fee) (1%) 1,295 250,000 Transition, brand fees, third party costs 2,435 470,000 CAPEX PIP/architectural services, construction controlling 60,000 11,580,000 Transaction fee 2,591 500,000 Equity fee 1,762 340,000 TOTAL USE OF FUNDS 246,632 47,600,000

SUMMARY

Equity 22,600,000 Debt 25,000,000 Total source of funds 47,600,000

Real estate acquisition 32,600,000 Acquisition costs and CAPEX 11,580,000 Soft costs 1,900,000 Total use of funds 47,600,000

INVESTORS’ PROFIT (upon exit in December 31, 2021) Distributions (2018-2021) 8.25% Equity investment -22,600,000 Total cash flow from investment 7,458,000 Net sale proceeds 31,838,000 Profit 16,696,000

Internal rate of return (IRR) p.a. 15.5% Equity multiple 1.7x

FINANCING AND INVESTMENT PLAN | AHXII | 9 NOTES TO THE FINANCING AND INVESTMENT PLAN

Equity CHF 13,550,000 raised by City Hotel Oberland The total equity amounts to CHF 22,600,000. The AG, making the purchase price transferred to equity is divided into 100,000 ordinary shares held the property approximately CHF 32,600,000. by ACRON AG and 45,000 preference shares from The appraisal prepared for the acquisition authorized capital to be offered for subscription determined a market value for the property of to qualified investors in the course of a capital CHF 45,370,000. increase at an issue price of CHF 500 per share. All shares have a par value of CHF 1.00 per share. Working capital reserve The difference between the par value of the share These funds are held by City Hotel Oberland AG and the issue price per share will be allocated to the as a cash reserve. company’s capital contribution reserve and can then be used for future distributions. The distributions Financing costs from the capital contribution reserve are expected In addition to commission for the banks granting to be subject neither to Swiss withholding tax nor to the loans of around CHF 30,000, the total ongoing taxation of the investor. amount of CHF 600,000 includes an interest reserve for interest payments for prefinancing Borrowed capital (Senior Debt) the acquisition by ACRON AG. This is a maximum The borrowed capital amounts to a total amount. If the interest reserve is insufficient of CHF 25,000,000 and was contractually to pay the interest incurred for purposes of agreed with Raiffeisen Schweiz bank (Zurich, prefinancing, ACRON AG will assume the surplus Switzerland) and Schweizer Gesellschaft für exceeding the amount in the investment plan for Hotelkredit (SGH). At the time of acquisition, its own account. a loan totaling CHF 14,500,000 was disbursed (thereof CHF 12,900,000 from Raiffeisen Due diligence costs Schweiz and CHF 1,500,000 from SGH). These The expenses for due diligence amount to funds were used by City Hotel Oberland AG (see approximately CHF 560,000 and comprise the organizational structure on page 18), primarily costs of third-party service providers hired by for refinancing existing liabilities to other ACRON AG to carry out due diligence activities. credit institutions. Information about the terms Most of these service providers are lawyers, tax and conditions is available in the notes to the advisors, property appraisers, and hotel experts. forecast (interest on bank loans and repayment The costs amounting to roughly CHF 560,000 of bank loans). comprise a lump-sum amount owed to ACRON AG, which covers the costs of the third-party Total source of funds service providers. The related costs charged This figure represents the source of the funds directly to ACRON HELVETIA XII are deducted available for investment. from the lump-sum compensation of ACRON AG. This approach ensures that the costs for due Real estate acquisition diligence cannot exceed the amount included On November 30, 2017, ACRON HELVETIA XII in the investment plan and allows the required Immobilien AG (ACRON HELVETIA XII) acquired investment to be determined. 100% of the shares of City Hotel Oberland AG, which holds the hotel building in Interlaken as Refurbishment and project development fee its only investment property. The purchase price The refurbishment and project development of the shares was CHF 19,050,000 and was fee amounts to CHF 500,000 and was agreed paid with a shareholder loan and a guarantee as a lump-sum amount with ACRON AG, which by ACRON AG. In addition, ACRON HELVETIA XII is responsible for refurbishment and project assumed the borrowed capital of around development activities.

10 | AHXII | FINANCING AND INVESTMENT PLAN Loan fee (Origination Fee) Equity fee The origination fee comprises a loan fee of 1% An amount totaling around CHF 340,000 on the loan amount paid to a third-party broker. corresponds to 1.5% of the equity capital to be raised and is earmarked for bank partner and Transition, brand fees, third-party costs asset manager commissions. Total costs of CHF 470,000 relate to non- recurring expenses arising from the transfer Total use of funds of hotel management to Barcli Hospitality This figure refers to the total funds planned or Management GmbH. These consist of costs already invested of ACRON HELVETIA XII. associated with rebranding, IT expenses, and brand fees. The estimate of total costs is conservative. If the actual costs fall below this amount, the surplus will allotted to the company and its owners.

Capex for property improvement plan (PIP) / architectural services, building inspection The amount estimated for renovations consists partly of CHF 10,500,000 from the planned additional investments in the hotel upgrade (described below). In addition, the total investment of CHF 11,580,000 includes CHF 630,000 to be paid to Barcli Hospitality Management GmbH for assisting with the planning and completion of the renovations (as per Section 2.3 of the management contract, CHF 210,000 per year for the duration of the renovations) and CHF 450,000 for a third-party building inspector to monitor the construction process for the banks granting the loans (Raiffeisen and SGH) and coordinate the loan disbursements. The amount estimated for the building inspector is conservative. If the actual costs fall below this amount, the surplus will remain with the company and be allotted to the shareholders.

Transaction fee The transaction fee of CHF 500,000 will be invoiced by ACRON AG and amount to approximately 1.05% of the total investment amount. In view of comparable investments with transaction fees between 1.25% and 1.75%, this fee is well under the market rate for the included services: identification of the investment property, negotiation of the purchase price, and structuring of the investment.

FINANCING AND INVESTMENT PLAN | AHXII | 11 HOTEL’S OPERATION ACCOUNTINGS HOTEL PRO FORMA | FIRST YEAR OF OPERATION: 2018 (PRELIMINARY)

CHF (000') Forecast Forecast Forecast Forecast Forecast 2018 2019 2020 2021 2022

Number of rooms 193 193 193 193 193 Days in year 365 365 365 365 365 Rooms available 70,445 70,445 70,445 70,445 70,445 Rooms sold 49,079 47,751 50,520 53,259 54,127 Occupancy % 69.7% 67.8% 71.7% 75.6% 76.8% ADR 126.00 140.00 135.00 131.00 135.00 ADR growth % 11.1% -3.6% -3.0% 3.1% Revpar 87.78 94.90 96.82 99.04 103.73 RevPar growth % 8.1% 2.0% 2.3% 4.7%

CHF (000') CHF (000') CHF (000') CHF (000') CHF (000') REVENUE Rooms 6,180 68.1% 6,681 62.6% 6,817 59.0% 7,003 57.5% 7,281 56.8% Total Food & Beverage 2,295 25.3% 3,301 30.9% 4,010 34.7% 4,442 36.5% 4,801 37.5% Other revenues 225 2.5% 229 2.1% 234 2.0% 243 2.0% 248 1.9% Rental revenues 379 4.2% 461 4.3% 488 4.2% 488 4.0% 488 3.8% TOTAL REVENUE 9,079 100.0% 10,671 100.0% 11,549 100.0% 12,176 100.0% 12,818 100.0%

DEPARTMENTAL COSTS Rooms 2,588 41.9% 2,530 37.9% 2,677 39.3% 2,890 41.3% 2,949 40.5% Food & Beverage 2,124 92.6% 2,576 78.1% 2,906 72.5% 3,065 69.0% 3,234 67.4% Retail 114 50.6% 1 3 7 59.8% 138 58.9% 143 58.9% 146 58.8% TOTAL DEPARTMENTAL COSTS 4,826 53.2% 5,243 49.1% 5,721 49.5% 6,098 50.1% 6,329 49.4%

UNALLOCATED OPERATING EXPENSES Admin & General 620 6.8% 637 6.0% 656 5.7% 667 5.5% 690 5.4% Marketing & Sales 236 2.6% 348 3.3% 3 7 2 3.2% 3 7 4 3.1% 381 3.0% Repairs & Maintenance 126 1.4% 122 1.1% 11 7 1.0% 123 1.0% 123 1.0% Utilities 326 3.6% 357 3.3% 3 7 6 3.3% 392 3.2% 407 3.2% TOTAL UNALLOCATED EXPENSES 1,308 14.4% 1,464 13.7% 1,522 13.2% 1,555 12.8% 1,600 12.5%

House profit 2,945 32.4% 3,964 37.1% 4,306 37.3% 4,524 37.2% 4,888 38.1% Basic fee (Management fee) 214 2.35% 2 7 6 2.59% 326 2.82% 343 2.82% 361 2.82% AGOP 2,732 30.1% 3,688 34.6% 3,980 34.5% 4,180 34.3% 4,527 35.3%

Real estate tax 28 0.31% 30 0.28% 30 0.26% 30 0.25% 30 0.25% Insurance 59 0.65% 65 0.61% 70 0.61% 70 0.57% 70 0.57% FF&E reserve 8 7 1.00% 153 1.50% 221 2.00% 292 2.50% 370 3.00% Leases & other 45 0.50% 45 0.42% 45 0.39% 45 0.37% 45 0.35% TOTAL DEDUCTIONS 219 2.41% 293 2.75% 366 3.17% 437 3.59% 515 4.02%

NOI 2,513 27.7% 3,395 31.8% 3,614 31.3% 3,743 30.7% 4,012 31.3%

12 | AHXII | HOTEL’S OPERATION ACCOUNTINGS THE FORECAST

NET CASH FLOW Year 1 Year 2 Year 3 Year 4 Full Year 2018 Full Year 2019 Full Year 2020 Full Year 2021 Jan. 1, 2018 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2021 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021

Occupancy 69.7% 67.8% 71.7% 75.6% ADR (average daily rate) 126.00 140.00 135.00 131.00 RevPar (revenue per available room) 88.00 95.00 97.00 99.00

Total hotel revenues 8,699,941 10,210,373 11,060,612 11,688,183 Total retail income 378,600 460,607 488,216 488,216 Departmental expenses 4,847,018 5,242,882 5,720,910 6,098,141 Unallocated expenses 1,307,739 1,464,443 1,521,789 1,554,559 Gross Operating Profit (GOP) 2,923,784 3,963,654 4,306,129 4,523,698

Management fees 213,536 275,845 325,677 343,374 FF&E reserve 86,999 153,156 221,212 292,205 Insurance, other costs 104,000 110,000 115,000 115,000 Real estate taxes 28,000 30,000 30,000 30,000 Net Operating Income (NOI) 2,491,248 3,394,654 3,614,240 3,743,119

Asset management fees -200,000 -200,000 -200,000 -200,000 Interest on bank loans -256,262 -290,172 -347,015 -360,564 Amortization of bank loans -440,000 -440,000 -440,000 -605,000 Cash flow after debt service 1,594,986 2,464,482 2,627,225 2,577,555

Cash flow sponsor -59,747 -277,120 -317,806 -305,389 Addition to (-)/distribution of (+) reserve -179,240 -153,361 -275,419 -238,166 Distribution to investors 1,356,000 2,034,000 2,034,000 2,034,000 in % of initial equity p.a. 6.0% 9.0% 9.0% 9.0%

TRANSACTION PROJECTIONS Year 1 Year 2 Year 3 Year 4 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021

Cap rate 6.2% Sale proceeds 60,000,000 Repayment of mortgage debt -22,975,000 Hotel management incentive sales fee -2,314,792 Costs of sale (1,5%) -900,000 Return of working capital & reserve 1,046,186 Carried interest sponsor -3,018,026 Net residual 31,838,368

DISTRIBUTION SUMMARY Year 1 Year 2 Year 3 Year 4 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021

Cash flow operations 1,356,000 2,034,000 2,034,000 2,034,000 Sale/Loan proceeds 0 31,838,368 TOTAL CASH FLOW 1,356,000 2,034,000 2,034,000 33,872,368 in % of initial equity 6.0% 9.0% 9.0% 149.9%

TOTAL DISBURSEMENTS TO EQUITY INVESTORS 39,296,368 Equity partners’ IRR 15.5% Equity multiple 1.7x

THE FORECAST | AHXII | 13 NOTES TO THE FORECAST

The forecast denominated in CHF presents Departmental expenses both hotel and rental income and the expenses Departmental expenses arise primarily in associated with the property. The figures are conjunction with income from the rental of rooms based on a fiscal year running from January 1 to to guests (lodging) and income from catering December 31. In accordance with the concept, services for hotel guests and other visitors (food the City Hotel Oberland property will be sold and beverage). See also page 12 for details by the end of 2021. The forecast presents a concerning the hotel operations accounting. summary of the combined cash flows of City These directly attributable costs are increased Hotel Oberland AG and ACRON HELVETIA XII annually by between 7% and 9% until the planned Immobilien AG. year of sale (2021). This increase is mainly attributable to expanded food and beverage Total hotel revenues services, and here primarily to operating and The hotel income generated from management staff costs. of the City Hotel Oberland is derived from the income statement of the hotel for the period Unallocated expenses from 2018 to 2022 (page 12) and is based Unallocated expenses are expenses not uniquely on the hotel’s historical figures as well as the attributable to one of the hotel’s sources of calculation taking into account the planned income. These costs chiefly include general renovation projects. An average occupancy rate administrative expenses, system operating of 69.7% and an average room price of CHF 126 costs, sales and marketing expenses and were assumed for 2018. In contrast with the ancillary costs, maintenance and repairs, and occupancy rate of around 80% and room rate of maintenance of furniture and other equipment. CHF 119 achieved in 2016, the hotel income for 2018 already includes the effects of the planned Gross operating profit (GOP) renovation of the hotel, which will result on the Gross operating profit is defined as the one hand in reduced occupancy for this year, operating profit of the hotel before deduction of and on the other hand to a successive increase management fees and property-related costs. The in the average room rate. In subsequent years, GOP is an expression of the hotel’s profitability occupancy is expected to be brought back up to and is intended to enable comparability with other the 2016 level through the planned renovation hotels. In this context, the GOP margin is the most projects and by 2022 increased to approximately interesting figure: It is forecast at 17% in 2018 and 76%. Along with an increase in the average room is expected to rise to 35% by the year of sale. rate to CHF 131 for 2021, total hotel revenues of around CHF 11,688,000 can be expected. Management fee The management fee for the hotel manager Total retail income (Barcli Hospitality Management GmbH) was The retail income derives from the leasing of parts determined in the management contract signed of the investment property to third-party tenants. on September 28, 2017. Accordingly, the The majority of the lease income stems from the management fee amounts to 2.5% of the adjusted existing lease with the tenant Bongénie Grieder for net total revenue in the first year. In the second a total space measuring 337 m2, which expires on year of operation, the management fee rises May 31, 2026. See page 33 of this prospectus for to 2.75% and from the third fiscal year onward more information on the tenants. The company’s amounts to 3.0%. The adjusted net total revenue planning stipulates turning other spaces that are generally comprises all income generated by not currently being used optimally into leased the hotel, with the exception, for example, of space and thereby increasing the rental income to possible ancillary costs and services, tax, and a total of CHF 488,000 by 2020. charges included in tourist package prices and

14 | AXII | THE FORECAST tax reimbursements. Based on past experience, Interest on bank loans these exceptions were estimated at around 6% of This item includes interest agreed with the total revenue, which is why the net total revenue financing banks, Raiffeisen Schweiz and was forecast at 94% of total revenue. Schweizerische Gesellschaft für Hotelkredit (SGH), for the loans assumed by City Hotel FF&E reserve Oberland AG. In 2018, the interest amount A reserve amounting to 1% of hotel revenue reflects interest charged at an annual rate of (excluding rent from third-party tenants) was 1.5% on the loan amount drawn down from set up for ongoing maintenance and repair Raiffeisen Schweiz totaling CHF 12,900,000 and of furniture, fixtures, and equipment (FF&E) at a rate of 1.65% on the loan amount extended in 2018. In the second year of operation, by SGH totaling CHF 1,500,000. Moreover, the this reserve increases to 1.5% and then rises interest assumed for 2018 reflects a partial gradually to 2.5% of hotel revenue by 2021. From disbursement of loans for the hotel renovation 2022 onward, the FF&E reserve will amount to agreed with Raiffeisen Schweiz (CHF 168,750 3.0%. This is based on the management contract per month from January 2018 onward) and a with Barcli Hospitality Management GmbH dated partial disbursement of CHF 50,000 from the September 28, 2017. loan for renovations from SGH totaling CHF 2,400,000. The interest rates on these loans Insurance and other costs additionally drawn down for the renovations This item includes expenses for building are identical to the terms for the loans already insurance and other business-related insurance drawn down. as well as rent for the Niesen meeting room and is estimated at a total of CHF 104,000 for In 2019, the forecast assumes that an amount 2018. The forecast assumes that these costs of CHF 337,500 from the Raiffeisen loan and will increase to CHF 115,000 by 2020 and then CHF 100,000 from the SGH loan will be drawn remain constant in subsequent years. down per month for purposes of hotel renovation. The remaining loans will be drawn down in 2020, Real estate taxes and the monthly amounts will then again be Real estate taxes comprises the real estate taxes equal to those in 2018. and the so-called “Schwellentelle” levied by the canton of Berne and the municipality. Amortization of bank loans Loans are repaid in the amounts agreed with the Asset management fee banks granting the loans. The Raiffeisen Schweiz The asset management fee amounts to loan will be repaid in the amount of CHF 70,000 per CHF 200,000 and was agreed as a lump- quarter. This amounts to repayment at an annual sum amount with ACRON AG. According rate of approximately 2.2% of the loan already to the contract dated November 30, 2017, disbursed in the amount of CHF 12,900,000. After ACRON AG will provide asset management for drawdown of the full amount of the loan extended ACRON HELVETIA XII Immobilien AG and will for renovation of the hotel, the repayment amount be responsible, among other things, for the will increase to a total of CHF 125,000 per quarter activities of the company under corporation from June 2021 onward. Based on the projected law, coordination of the General Meetings loan amount as of January 1, 2021, the annual of Shareholders, reporting to shareholders, rate of repayment will again amount to 2.2 %. For accounting for ACRON HELVETIA XII the loan from SGH of CHF 1,500,000 initially, a Immobilien AG, and ongoing supervision of quarterly repayment amount of CHF 40,000 was the hotel manager and the financing with agreed starting on March 31, 2018. This amounts which the property is encumbered. to an annual rate of repayment of roughly 10.7%.

THE FORECAST | AHXII | 15 Cash flow sponsor Out of the total net sale price, the hotel manager, This is the statutory share of the profit accruing Barcli Hospitality Management GmbH, will to ACRON AG, which in turn is paid out of the receive a performance-based bonus agreed in distributable cash flow of ACRON HELVETIA the management contract dated September XII. The amount for 2018 is calculated from the 28, 2017. According to this provision, up to a difference of the total annual cash flow of around total annual internal rate of return (IRR) on the CHF 1,595,000 less the preferred annual return investment of 11%, the hotel manager will not of 6% for investors. According to the Articles of receive a share of the profits. Only when the Association of ACRON HELVETIA XII, ACRON AG total return reaches an annual rate of 11% will receives 25% of the distributions exceeding that the hotel manager receive 10% of the total return amount, in other words around CHF 60,000 for exceeding an annual rate of 11%. If the total profit 2018. The same is true for subsequent years. generated by the investment exceeds an annual rate of 17%, the hotel manager would additionally Additions to/distribution of reserves receive 20% of the surplus over the annual rate In order to ensure that the company’s distribution of 17%. This performance-based compensation policy is uniform and predictable for investors, is intended to ensure that the interests of the the forecast projects ongoing additions of the hotel manager align with those of the investors cash flow exceeding the distribution target to a and ACRON AG, and that the manager will also reserve to be held by ACRON HELVETIA XII and aim above all to optimize the proceeds obtained to be paid out to investors upon exit from the from the sale. investment. The Board of Directors reserves the right to decide on the use of this reserve each The amount listed under “Return of working year and, if necessary, propose distributing this capital and reserve” comprises the cash flow to investors prior to a planned exit. allocated to the reserve from 2018 to 2021, which will be distributed to investors no later Distributions to investors than at the time of exit from the investment (see These are the planned distributions to investors “Additions to/distribution of reserves”). over the forecast course of the investment concept. The plan stipulates making ongoing The share of the profits accruing to ACRON AG distributions from the capital contribution is determined in accordance with the Articles of reserve that was set up in the course of the Association of ACRON HELVETIA XII Immobilien capital increase by ACRON HELVETIA XII. As AG. According to the Articles, ACRON AG will not a rule, these payments are neither subject to receive a share until the total return achieved for personal taxation at the level of the investor nor investors has reached an annual IRR of at least to Swiss withholding tax. 12%. Only when the holders of preference shares have obtained a minimum annual return on their Transaction projections capital of 12% will ACRON AG receive 35% of the Assuming the sale of ACRON HELVETIA XII surplus. This approach ensures that the interests Immobilien AG based on a projected property of ACRON AG and the holders of preference value of CHF 60,000,000, the financing of shares are considered equally and incentivizes approximately CHF 22,975,000 with which the ACRON AG to generate a minimum annual return property is encumbered would first have to be of 12% for investors. repaid. Moreover, the forecast includes costs amounting to 1.5% on the sale price (e.g., to Distribution summary be paid to the brokers involved or for other This overview describes the aggregate distribu transaction costs associated with the sale). tions to the preferred shareholders from ongoing operation of the hotel and the forecast exit at the end of 2021.

16 | AXII | THE FORECAST THE FORECAST | AXII | 17 ORGANIZATIONAL STRUCTURE

ACRON AG acts as the initiator, service provider, and property manager for this transaction and will make available its professional expertise and extensive experience to investors.

BORROWED CAPITAL EQUITY

Raiffeisen Schweizerische Gesellschaft ACRON AG and Schweiz für Hotelkredit (SGH) Co-Investors

ACRON HELVETIA XII IMMOBILIEN AG in Zug, CHE-301.519.542

100 %

Hotel management contract Barcli Hospitality City Hotel Oberland AG Management GmbH

Property

Planned structure for the acquisition of City Hotel Oberland AG (share deal):

ACRON HELVETIA XII Immobilien AG acquired all of the shares of City Hotel Oberland AG on November 30, 2017. City Hotel Oberland will be extensively renovated and the brand repositioned for approximately CHF 10,500,000. City Hotel Oberland AG has signed a hotel management contract with Barcli Hospitality Management GmbH (in formation) with a term running until December 31, 2027.

The capital structure for the acquisition will be as follows: ■■ Equity from ACRON AG and co-investors ■■ Financing in the amount of CHF 21,000,000 from Raiffeisen Schweiz ■■ Financing in the amount of CHF 4,000,000 from Schweizerische Gesellschaft für Hotelkredit

The CHF 25,000,000 in borrowed capital will be used firstly to refinance the City Hotel Oberland AG liabilities and secondly to finance the renovations.

18 | AHXII | ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURE | AHXII | 19 SWITZERLAND AS AN INVESTMENT LOCATION: TOP GLOBAL RANKING

As a safe harbor, Switzerland is known Population: 8,417,700 internationally as one of the best locations for Capital: Bern investment in the world. Thanks to its political Area: 41,284 km2 neutrality and importance as a financial hub, the Cantons: 26 country has a reputation as a bulwark for the Language: German, French, protection of assets. Italian, Rhaeto-Romanic Its strong economy, minimal government debt, Currency: Swiss franc and low inflation and unemployment rates make Unemployment: 3.1% (Q1 2018) Switzerland not only a safe location for investments, Inflation rate: 0.8% (Q4 2017) but also an attractive and livable country. In terms GDP: CHF 660 billion (Q1 2018) of competitiveness, Switzerland remains the GDP per capita: CHF 76,210 (Q1 2018) undisputed number one in the world. GDP growth: 2.3 % (forecast)

FACTS & FIGURES: SWITZERLAND

■■ Stronghold of security and stability ■■ Protection of ownership, protection against expropriation, no unjustified intervention by the government ■■ Protection of privacy ■■ Best possible credit rating - AAA ■■ “Swiss made” stands for highest quality all over the world ■■ Reliability, effectiveness, responsibility, honesty, predictability, and efficiency ■■ Friendly customer service in many languages and in an environment in which service is traditionally valued highly ■■ Complete range of financial, investment, and trading options ■■ Above-average financial strength and effective risk management, liquidity, funding and compliance

20 | AHXII | SWITZERLAND AS AN INVESTMENT LOCATION SWITZERLAND IS THE MOST COMPETITIVE NATION IN THE WORLD

VWSLOODU ,QVWLWXWLRQV WKSLOODU QGSLOODU ,QQRYDWLRQ 7 ,QIUDVWUXFWXUH

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WKSLOODU WKSLOODU )LQDQFLDOPDUNHW *RRGVPDUNHW GHYHORSPHQW WKSLOODU HIILFLHQF\ /DERUPDUNHW HIILFLHQF\ Switzerland Europe and North America 6ZLW]HUODQGSource: World Economic Forum,(XURSDXQG1RUWK$PHULF The Global Competitiveness Report 2017-2018,D 2017

STANDOUT SWITZERLAND – GLOBAL COMPETITIVENESS INDEX

Edition 2012-13 2013 -14 2014 -15 2015 -16 2016 -17 2017-18 Rank 1/144 1/148 1/144 1/140 1/138 1/137

Score 5.7 5.7 5.7 5.8 5.8 5.9

Source: World Economic Forum, The Global Competitiveness Report 2017-2018, 2017.

For the ninth consecutive year, Switzerland leads the Global Competitiveness Index (GCI) with an even better showing than in previous years. Since 2009, Switzerland has consistently placed first among all of the 137 countries in the survey.

The country’s strength is its balance. Garnering 6.4 out of 7 possible points, Switzerland received the best score for basic conditions of competitiveness, which include the quality of its institutions, infrastructure, public-sector budget stability, and the general education of its population.

The economy is characterized by a high degree of flexibility, and the country’s labor markets are regarded as the best functioning in the world. In 11 categories measured by the Global Competitive Index, Switzerland ranks in the top ten, and in three categories, it take first place: labor market efficiency, economic development, and innovation. Switzerland further improved its scores in economic sector development and innovation, thereby defending its leading global position in these two important fields.

SWITZERLAND AS AN INVESTMENT LOCATION | AHXII | 21 SWISS HOTEL MARKET: ON A GROWTH TRAJECTORY IN A GLOBALLY EXPANDING SECTOR

■■ Tourism is extremely important for the canton of Berne as a business hub. ■■ The economic importance of this industry is significant: Five percent of the workforce in the canton works in tourism. In the Bernese Oberland region, this figure is 18%. ■■ The availability of hotel beds is distributed differently among tourist regions: The supply is greatest in Grisons, followed by Valais, the Zurich region, and then the property’s location in the Bernese Oberland. ■■ Whereas metropolitan areas are more dependent than others on the general performance of the economy, in rural and Alpine regions, tourism is responsible for a bulk of the economic value generated. The Berne region (Bernese Oberland and the area around Berne) is Switzerland’s second largest tourism region after Zurich. ■■ In the first 11 months of 2017, Swiss hotels attracted more guests: 34.67 million overnight stays - 4.8% more than in the same period of the previous year.

A Grisons B Eastern Switzerland C Zurich Region & 1 % D Lucerne/Lake Lucerne ( E Basel Region F Bern Region G Bernese Oberland + ) H Jura and Three Lakes Country ' I Lake Geneva area (Waadtland) J Geneva , $ K Valais * L Ticino 0 M Freiburg Region / N Aargau Region - . over 3 million overnight stays 2 to 3 million overnight stays 1 to 2 million overnight stays to 1 million overnight stays 10 000 = number of beds (in percent of total)

Source: Hotelleriesuisse; Federal Statistical Office; basis for maps: ThemaKart, Neuchâtel 2016

Hotel capacity (rooms) Interlaken

Hotel category Number of hotels Rooms Beds 2 313 588 9 546 1015 16 797 1541 7 171 310 Total 34 1 827 3 454

Source: Interlaken tourism, hotelleriesuisse, Interlaken Hostels & Adventure, 2016

22 | AHXII | SWISS HOTEL MARKET Overnight stays, summer season 2017 (May to October): largest increase in the Berne region

In the summer 2017 tourist season, the Swiss Summer Change season 2017 in %* hotel industry logged a total of 21.3 million overnight stays (+5.9%/+1.2 million over the Total overnight stays 21,288,710 +5.9 same period in the previous year). With a total Swiss overnight stays 9,215,668 +4.0 of 12.1 million overnight stays, demand from Foreign overnight stays 12,073,042 +7.3 abroad grew 7.3% (+823,000). A majority of these Europe (without Switzerland) 6,275,349 +3.0 tourists came from Asia: 398,000 additional Asia 3,591,074 +12.5 overnight stays (+12.5%): India (+27.1%), China (not including Hong Kong; +11.8%), and the America 1,819,434 +13.5 Republic of Korea (+34.9%). Demand from the Remaining continents 387,185 +7.1 Americas also rose sharply (+216,000/+13.5%). *compared with the corresponding period of the previous year Source: Federal Statistical Office, media release of Dec. 5, 2017 The United States added 154,000 overnight stays (+12.7%), the greatest absolute growth out of all countries sending tourists to Switzerland. Domestic demand increased 4.0% (+356,000) and reached a total of 9.2 million overnight stays. All 13 tourist regions saw overnight stays increase. The Berne region (area around Berne and Bernese Oberland) added 240,000 nights (+8.4%), the largest increase in absolute terms.

TOURISM AND THE HOTEL INDUSTRY – A WORLDWIDE GROWTH SECTOR

■■ In many countries, tourism is the key to economic progress and is among the largest and fastest growing sectors of the economy in the world. ■■ Nearly 10% of all workers worldwide are employed in the global growth industry of tourism. ■■ For the period from 2010 to 2030, growth in global tourism is forecast at 3.3% annually with growth markets exhibiting enormous potential and growing twice as rapidly as traditional markets.

International tourist arrivals by region (in billions)

Africa ELOOLRQ ǹ Near East America Asia-Pacific ELOOLRQ ǹ Europe ELOOLRQ ǹ

Source: World Tourism Organization 2016

SWISS HOTEL MARKET | AHXII | 23

THE PROPERTY: FROM 3-STAR STANDARD HOTEL TO A MODERN MULTIFUNCTIONAL ASSET

CITY HOTEL OBERLAND Hotel address Höheweg 7, 3800 Interlaken Parcels 545, 969, 1759, 1760, 292, 1652 Staff house Wychelstrasse 2, 3800 Matten Parcel 49 Hotel Management Barcli Hospitality Management GmbH Asset class Commercial real estate with hotel, display cooking restaurant, bar, gastronomy offer, several retail spaces and staff housing Years of construction 1910/1911, 1912, 1975, 1982/83 1991, 1992, 1993 Renovation at regular intervals, major renovations in 2007/12 Land areas 3,120 m2 (hotel: 2,890 m2, staff house: 230 2m )

Building volume 50,000 m3 Usable space 10,574 m2 Hotel business 192 rooms with 396 beds after refurbishment 193 rooms (incl. new suite) Conference space 663 m2 Food & Beverage 3 gastronomy offer after refurbishment display cooking restaurant and bar/café plus another gastronomy offer Retail after refurbishment 680 m2 (i.a. anchor tenant Grieder) Parking 6 underground | 14 outdoor| 2 bus parking | public parking in within close proximity

26 | Business is already very good at City Hotel Oberland, which boasts above-average occupancy rates, but we aim to make the VALUE APPRECIATION STRATEGY property not only a new, chic meeting place in Interlaken in the future, but also take steps ■■ Increase income mix and synergy between to transform it into a sustainably successful indoor and outdoor spaces: asset on track to appreciate in value. ■■ The basement area in the main building will be The hotel with a total of 192 rooms a centerpiece of the hotel. Featuring an open- (as of 2019: 193 rooms) and 396 beds is plan concept, the City Hotel Oberland will be distributed across several buildings. a meeting place for travelers and locals alike, Thanks to the hotel’s excellent micro location who will be able to experience the hotel’s many on Interlaken’s busy market square and offerings day and night. promenade, City Hotel Oberland’s business ■■ Restaurant, bar/café, retail zone, reception performance is already robust. area, and lobby form a single unit. ■■ Seasonal global cuisine highlighted by a display kitchen will attract not only hotel guests but PROPERTY HIGHLIGHTS the broader public from outside the hotel. ■■ Gourmet store directly adjacent will generate ■■ From an established hotel with above- synergies. average occupancy rates (>80%) into an ■■ Other retail spaces will be created out of up-to-date 193-room hotel with a restaurant spaces not necessary for hotel operations in featuring display cooking, an outdoor terrace order to generate a constant stream of income facing the market square with a lounge/bar, separate from the hotel’s operations. and attractive retail spaces and staff housing ■■ Bar/café with outdoor terrace facing the ■■ Value growth through market square invites visitors to stay and relax, ■■ renovating and modernizing the existing whether they have just finished shopping or rooms for improved individual comfort touring the city, or are attending a conference ■■ Highlight areas: new, attractive areas such or event on the market square. as a restaurant offering display cooking, ■■ Expanding the mix of guests: bar with outdoor terrace – the new place In order to increase the ADR and minimize the to meet in Interlaken risks of operating as purely a hotel for tourist ■■ Repurposing of spaces: The spaces groups, the target audience will be shifted to: not required to run the hotel will be ■■ Individual travelers repurposed into attractive, income- ■■ Seminar and meeting attendees generating retail spaces ■■ Adventure tourists ■■ Variety of income sources thanks to new ■■ Groups mix of uses ■■ Renovating/modernizing the guest rooms: ■■ Shift in target audience with new guest mix ■■ In the coming years, renovations, construction ■■ Excellent micro location in a first-rate macro and other projects to improve operations location will adapt the three hotel wings to the needs ■■ Tourist hot spot in the Alps of today’s world travelers. The construction ■■ Mecca of adrenaline projects will be target group-specific in order ■■ Sophisticated shopping street to address the individual needs of the visitors ■■ Conference region, business hub in the guest mix. ■■ City Hotel Oberland is a “Swiss Quality Hotel International”

THE PROPERTY | AHXII | 27 The properties are located in the center of Interlaken, directly on Höheweg, the main shopping street, and a busy market square. City Hotel Oberland has a total of 192 rooms of different standards in various buildings and wings of buildings. The reception area and restaurant are located in the main building with a central wing, “Pulverhaus” (addition in back), and “Markthaus” (addition on side built in 1991). In addition, the “Résidence” building is situated behind the main wing, and opposite it is the “Guesthouse”, which was constructed in 1993 and 1996. All of the rooms in a wing are of a similar standard in each case.

HISTORY: FROM CHALET TO CITY HOTEL OBERLAND

Starting in 1985, operations at the 60-room Chalet Hotel Oberland as it was known at the time, the Restaurant Chalet, and Pizzeria Mercato were expanded gradually. Eliminating the staff residence at the hotel created an additional 28 rooms, and Marktplatzhaus provided 12 guest rooms.

The takeover of the properties at Postgasse 6 and 8 added another 60 rooms. In January 2008, Chalet Hotel Oberland and Hotel City on opposite sides of the market square joined forces. Since then, the establishment has been known as City Hotel Oberland and currently features 192 rooms and 396 beds.

The major renovation phase in 2007/2008 created a unified look and made all of the buildings easily accessible. The newly created west- facing main entrance to the hotel led visitors into the center of the hotel, which consists of several buildings. The reception area is located in a lobby linking the various wings behind the original main hotel section. This allows the area to be used independently with direct access from busy Höheweg. Following the refurbishment of the space occupied by the former Restaurant Chalet in September 2016, the space has a fresh new look thanks to Geneva-based luxury fashion group Bongénie Grieder.

28 | AHXII | THE PROPERTY Parcel Plan Ground Land Commune No No area cover Address Ownership status 581 Interlaken 545 4567, 4568 305 m2 205 m2 Höheweg 7, 3800 Interlaken sole ownership

581 Interlaken 1652 4547, 4567 255 m2 223 m2 Marktgasse 6, 3800 Interlaken sole ownership

581 Interlaken 969 4568 518 m2 463 m2 Postgasse 1, 3800 Interlaken sole ownership

581 Interlaken 1759 4568 811 m2 643 m2 Postgasse 1, 3800 Interlaken sole ownership

581 Interlaken 1760 4548, 4568 506 m2 306 m2 Postgasse 1, 3800 Interlaken sole ownership

581 Interlaken 292 4568 495 m2 419 m2 Postgasse 6/8, 3800 Interlaken sole ownership/CO*

587 Matten near Interlaken 49 2208 230 m2 145 m2 Wychelstrasse 2, 3800 Matten sole ownership

*20/100 of the shares in condominium ownership are owned by an Indian restaurant.

THE PROPERTY | AHXII | 29 30 | AHXII | THE PROPERTY HOTEL

Hotel infrastructure ■ The hotel currently has 192 rooms with a total of 396 beds; a meeting room on the 4th floor not generating sufficient revenue will be converted into a suite to expand the target group and generate additional income. After renovations, the number of rooms will therefore total 193. ■ After the renovations are complete, the property will offer 663 2m of seminar and banquet space for all types of events. This space will be divided into seven rooms, with the rooms on the 2nd floor combinable. ■ Catering service for events in Interlaken and the surrounding area ■ Three food service options, two of which are located on the ground floor of the main building, are currently available to hotel guests and local residents. One of the restaurants will be unaffected by the renovation work. The other food service options on the ground floor will be replaced by a showpiece restaurant. This space will be converted into a restaurant featuring display cooking along with a bar/café that will make the property stand out in the neighborhood and attract new guests.

Season and target group ■ In the hotel’s high season, which begins in May and ends in October, the occupancy rate is 98%. ■ The ski season attracts groups of skiers from around the world from January to March. ■ Festival visitors account for a large number of guests in May and June. ■ Seminar attendees most commonly stay at the hotel in September. ■ Tour groups most frequently visit the hotel in November and December. ■ The bulk of the hotel’s bookings are accounted for by guests from Asia.

Operator Barcli Hospitality Management GmbH Lease term, operator Lease term of 10 years plus 1x option to extend for 5 years

| 31 “In Swiss terms, this level of purchasing power and variety of tourist attractions in such a small area is unique. A large number of our customers are already from the Bernese Oberland region, but to date we have not had a store here. We are now filling this gap with our new store in Interlaken. Here, it is possible for us to serve both of our customer segments in line with our business strategy of internationalizing our customer base. Interlaken is an attractive place to do business.” Pierre Brunschwig, Bongénie Grieder co-owner

(August 25, 2016 article in the Jungfrau Zeitung newspaper: “Interlaken ist ein attraktiver Standort” (“Interlaken is an attractive place to do business”))

32 | AHXII | THE PROPERTY RETAIL

Anchor tenant: Brunschwig Cie. SA (337 m2) Bongénie Grieder is the umbrella brand under which Brunschwig & Cie SA, a subsidiary of Brunschwig Holding SA, operates eight Bongénie and nine Grieder clothing stores (Bongénie in French-speaking Switzerland and Grieder in German-speaking Switzerland). For more than a hundred years, Grieder Bongénie has been bringing the world of fashion to consumers with an extensive range of international brands and designer- label clothing for both women and men. The company additionally sells lingerie, Wolford hosiery, exclusive housewares, and accessories such as jewelry, leather goods, silk scarves, and shoes.

Lease term 10 years (until May 31, 2026) Rent Minimum rent: CHF 300,000 plus revenue- based rent totaling 10% of annual revenue exceeding CHF 2,500,000 Indexing 70% every three years

Other tenants The tenants in the remaining retail space (342 m2) are long-term tenants operating chocolate and souvenir, hair styling, beverage, and wellness businesses. Lease terms Unlimited term; termination with notice of one to six months Indexing generally none Rent The rent for the five retail spaces (including Grieder) currently amounts to CHF 380,000, excluding the revenue-based component. Other Income from advertisements placed in display cases and on TVs. The renters are watchmakers, Casino Interlaken, and adventure sports tour companies.

STAFF HOUSING

Occupancy rate fully leased Tenants 20 Lease terms unlimited; termination with notice of one month Earnings CHF 96,000 (included in the hotel’s earnings) Ancillary costs in accordance with Swiss landlord-tenant law Indexing in accordance with Swiss landlord-tenant law

ACRON HELVETIA XII IMMOBILIEN AG | 33 34 | ACRON HELVETIA XII IMMOBILIEN AG | DIE LIEGENSCHAFT STRATEGIC REORGANIZATION OF THE HOTEL

STATUS QUO

The room occupancy at City Hotel Oberland very poor very good clearly exceeds the average occupancy rates in Economy the Bernese Oberland region and in Interlaken. Infrastructure offering City Hotel Oberland’s RevPAR (revenue per 5RRPRFFXSDQF\ JURVV available room) has continually improved in Demography recent years and is already at market levels. Commercial space Right now, the hotel concentrates on group Develop. public transport tourism, which is reflected in lower average daily Quality business situation room rates (ADR). The rooms were renovated in Quality of residential stages and on an ongoing basis. Around one- third of the hotel rooms have been refurbished. Externalities The standard can be described as average to Source: E&Y market value estimate of hotel property City Hotel Oberland, Sept. 30, 2017 very good, according to appraiser Ernst & Young. /RFDWLRQVWDUKRWHOV 5HJLRQ &LW\+RWHO2EHUODQG

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PLANNING Monoplan AG, an architectural firm based in Zurich, completed the construction audit of the properties and worked with ACRON and MACUN Capital Partners (MCP) to develop a concept for renovating the buildings. So as not to risk a loss of business during the high-income summer and fall months, the property will be renovated in the off-season for the next three years. The scope of this work totals CHF 10.5 million (room remodeling, facade, elevators, display kitchen, new layout for the basement area).&+) It is assumed that the total amount will be invested as follows: first quarter in 2018, half in 2019, last quarter/RFDWLRQV in 2020.WDUKRWHOV After the5HJLRQ renovations&LW\+RWHO2EHUODQ are finished,G the property will be like-new, which will enable more revenue to be generated from the hotel as well as the retail spaces.

THE PROPERTY | AHXII | 35 EXPANDING THE MIX OF GUESTS: In order to increase the ADR and minimize the risks of operating as purely a hotel for tourist groups, the target audience will be shifted to: Individual travelers - Seminar and meeting attendees - Adventure tourists - Groups - The marketing budget will be increased and a sales/marketing team employed.

RENOVATING/MODERNIZING THE GUEST ROOMS: In the coming years, renovations, construction and other projects to improve operations will adapt the three hotel wings (main building with the Pulverhaus and Marktplatzhaus additions as well as the Résidence and Guest House) HOTEL to the needs of today’s world travelers. The construction projects will be target group- specific in order to address the individual needs of the groups in the guest mix.

REPURPOSING SPACES: Interlaken is a tourist hub for prosperous guests from across the globe. For this reason, other RETAIL retail spaces will be created out of spaces not necessary for hotel operations in order to generate a constant stream of income separate from the hotel’s operations.

GENERATING SYNERGIES: Additional cross-over between the restaurant and retail spaces will be created, for example by a directly adjacent gourmet store.

36 | AHXII | THE PROPERTY INCREASE INCOME MIX AND SYNERGY BETWEEN INDOOR AND OUTDOOR SPACES: The basement area in the main building will be a centerpiece of the hotel. Featuring an open-plan concept, the City Hotel Oberland will be a meeting place for travelers and locals alike, who will be able to experience the hotel’s many offerings day and night.

CREATING COHESION: Restaurant, bar/café, retail zone, reception area, and lobby form a single unit. Whether guests want breakfast, lunch, or dinner, the ground floor will provide all of the services individual guests need without having to seek F&B alternatives outside the hotel. Seasonal global cuisine cooked in a display kitchen will attract not only hotel guests but the broader public as well.

ATTRACTING GUESTS FROM OUTSIDE THE HOTEL: Bar/café with outdoor terrace facing the market square invites visitors to stay and BAR relax, whether they have just finished shopping or touring the city, or are attending a conference or event on the market square. This will not only increase income but also attract other guests to the hotel with its retail and restaurant offerings.

MAKING HOTEL GUESTS INTO REGULAR VISITORS: Repeat guests ensure continual occupancy of the hotel, recommend the hotel to others, and bring in new guests.

THE PROPERTY | AHXII | 37 -0.02

WC D WC H -0.265 -0.03 Eingang A: 11,27 m2 2 Eingang A: 11,65 m2 A: 11,68 m WC A: 19,06 m2 Retail A: 3,48 m2 Retail Retail Retail A: 46,63 m2 2 A: 28,42 m2 A: 90,06 m A: 40,02 m2 Korridor A: 13,75 m2 +1.10 Lift Lift A: 2,93 m2 2 Retail WC A: 3,36 m 2 A: 6,13 m2 A: 236,14 m Treppenhaus Korridor WC 2 A: 10,11 m2 Rahmenür 90 Küche A: 29,44 m2 A: 4,07 m

Lift A: 2,44 m2 Treppenhaus +1.10 A: 48,01 m2 Restaurant SOUS-SOL Rahmenür 80 A: 226,92 m2 -1.095 A: 8,24 m2 WC Lift Motor 2 Economat 2 A: 2,79 m A: 2,91 m A: 6,64 m2

Lift Höheweg H.i.L UK BL= 325cm 2 Lounge A: 3,11 m A: 130,74 m2 Treppenhaus WC A: 19,76 m2 Technikraum A: 4,17 m2 A: 30,46 m2 Reception 2 A: 86,76 m +1.10 -0.35 cm Retail A: 46,39 m2

±0,00 - 0.515cm

Lift Koffer Windfang 2 -0.605 A: 3,04 m2 A: 11,17 m2 A: 16,96 m Korridor A: 3,90 m2 Treppenhaus A: 16,28 m2 Entrance Büro A: 24,78 m2 Main Treppenhaus The basement area A: 9,34 m2 in the main building will -0.004 Anlieferung A: 13,80 m2 Lift -0.065 be the hotel’s centerpiece. A: 1,78 m2 Retail Featuring an open-plan concept, -0.485 A: 57,99 m2 the City Hotel Oberland is Bar/Kaffe designed to be a meeting place for A: 76,31 m2 travelers and locals alike, who will be able to experience the hotel’s many offerings day and night. -0.065 Anlieferung

-0.555 The growing demand by many guests for more entertainment while dining will be The hotel met with a popular open display kitchen. currently has Display cooking serves not only an aesthetic spaces not being used 00 Erdgeschoss but also a psychological purpose that should for hotel operations. Interlaken not be overlooked, according to scientists from Vorstudie According to the new MASSSTAB 1:100 @ DIN A1 DATUM 22.09.2017 the University of Wageningen in the Netherlands: concept, these spaces will monoplan. architektur + design If guests see how their food is prepared, they HARDTURMSTRASSE 76 I 8005 ZÜRICH I SCHWEIZ be converted into income- PHONE +41 44 245 47 10 I FAX +41 44 245 47 11 perceive it as healthier and feel that they [email protected] I WWW.MONOPLAN.CH GSPublisherVersion 0.0.100.93 generating retail are doing something good for themselves spaces. eating it. Positive experiences lead to recommendations and return visits by guests.

38 | AHXII | THE PROPERTY -0.02

Lift A: 2,44 m2 Treppenhaus +1.10 A: 48,01 m2 Restaurant SOUS-SOL Rahmenür 80 A: 226,92 m2 -1.095 A: 8,24 m2 WC Lift Motor 2 Economat 2 A: 2,79 m A: 2,91 m A: 6,64 m2

Lift Höheweg H.i.L UK BL= 325cm 2 Lounge A: 3,11 m A: 130,74 m2 Treppenhaus WC A: 19,76 m2 Technikraum A: 4,17 m2 A: 30,46 m2 Reception 2 A: 86,76 m +1.10 -0.35 cm Retail A: 46,39 m2

±0,00 - 0.515cm

Lift Koffer Windfang 2 -0.605 A: 3,04 m2 A: 11,17 m2 A: 16,96 m Korridor A: 3,90 m2 Treppenhaus A: 16,28 m2 Entrance Büro A: 24,78 m2 Main The large ballrooms Treppenhaus A: 9,34 m2 on the upper floor will -0.004 Anlieferung A: 13,80 m2 Lift continue to be available for -0.065 A: 1,78 m2 groups as well as for events of

-0.485 Retail A: 57,99 m2 all kinds aimed at hotel guests

Bar/Kaffe and the public in all seasons. A: 76,31 m2 In-house events will bring to life the new product reflected in advertisements and the occupancy rate.

-0.065 Anlieferung

Adjacent to the highly frequented market square, -0.555 which in addition to its daily footfall attracts numerous visitors with regularly held events like “Musig The flow of visitors ufem Marktplatz,” the bar with its will be managed with inviting terrace is the perfect five entrances, which00 Erdgeschoss will location for lingering over a simultaneously direct people coming drink. Interlaken from various directions toVorstudie the hotel, restaurant, and bar. ForMASSSTAB deliveries, 1:100 @ DIN A1 DATUM 22.09.2017 monoplan. architektur + design the separate entrance withHARDTURMSTRASSE delivery 76 I 8005 ZÜRICH I SCHWEIZ PHONE +41 44 245 47 10 I FAX +41 44 245 47 11 area offers the optimalOFFICE solution@MONOPLAN .CH I WWW.MONOPLAN.CH

GSPublisherVersion 0.0.100.93 separate from the stream of visitors.

THE PROPERTY | AHXII | 39 GROUND PLAN OF THE GROUND FLOOR IN DETAIL

DISPLAY COOKING BUSINESS CENTER PREPARATION KITCHEN RETAIL RETAIL

BAR

HIGH TABLE LOBBY

TERRACE RECEPTION

«SNUG» — COZIER AREA WITH FIREPLACE

40 | AHXII | THE PROPERTY CONCEPT LOBBY/RESTAURANT/BAR: FRESH — MODERN — ALPINE

MOUNTAINS, FAUNA LOCAL AND FLORA PRODUCTS

COLORFUL NATURAL MATERIALS FRESH COLOR, COLOR, FRESH TRADITION

BAR MODERN FORMS

RUSTIC TO URBAN CEILING WALL SHOW-KITCHEN FLOOR

RECEPTION WALLPAPER FURNITURE DETAILS

BAR FLOOR

THE PROPERTY | AHXII | 41 ock Wetterhorn Schreckhorn Finsteraarhorn Eiger Mönch Jungfrau Grosshorn Breithorn Blümlisalp Doldenhorn Balmhorn Altels Wildstrubel Gletscherhorn 752 ft 3701 m 12143 ft 4078 m 13380 ft 4274 m 14019 ft 3970 m 13026 ft 4099 m 13449 ft 4158 m 13638 ft 3762 m 12339 ft 3782 m 12405 ft 3664 m 12018 ft 3643 m 11949 ft 3699 m 12133 ft 3629 m 11903 ft 3243 m 10637 ft 2943 m 9653 ft 32

Jungfraujoch – Top of Europe 3454 m 11333 ft

Gemmi Rawil

Furka Gespaltenhorn l Schilthorn 2971 m 9748 ft Engstligenalp Grimselpass asternta mersee Sefinenfurgge Hohtürli G Lauberhorn Bonderchrinde Eigergletscher Hahnenmoos Birg Sunnbüel Iffigenalp Kl. Scheidegg Oeschinen- Elsigenalp Sillerenbühl Trüt Handegg Männlichen see Tschentenalp Lötschberg-Simplon Metsch Betelberg Rosenlaui Schwarzwald- Gr. Scheidegg Wengernalp Allmenalp Gletscher- Stechelberg Gimmelwald alp Pfingstegg nnen schlucht First Wengen Allmendhubel Griesalp Kandersteg Adelboden Faulhorn Trümmel- Mürren Gehrihorn Wiriehorn Lenk Grindelwald bach- Blausee fälle Reichenbach- Grimmialp Frutigen Niesen fall Sulwald Kiental St. Stephan Bussalp Lauterbrunnen Nüegg

Schynige Platte Isenfluh Morgenberghorn Riedli Zweilütschinen Axalp Suldtal Springenboden Reichenbach Zw Brienzwiler Saxeten Mülenen Diemtigtal Diemtigen Ringoldingen Heustrich-Bad Oey-Diemtigen Därstetten Ballenberg Gsteigwiler Aeschiried Erlenbach Stock- Boltigen Aeschi Hofstetten Krattigen horn Weissenburg Kienholz Heimwehfluh Därligen LeissigenLeissigen Schwanden WilderswilWilderswil Wimmis Oberwil Giessbach Bönigen Hondrich Brienzer- IseltwaldIseltwald Rothorn Brienz Golf / 18 H FaulenseeFaulensee 2350 m 7710 ft Brienzersee Sundlauenen Reutigen InterlakenInterlaken Beatushöhlen Neuhaus T h u n e r s e e Spiez Goldswil BeatenbergBeatenberg Spiez Harder Niederhorn RinggenbergRinggenberg Nieder-/ Planalp Ebligen Niederried Einigen Oberried Augstmatthorn Oberstocken 2137 m 7011 ft Gwatt Tannhorn J u s t i s t a l Beatenbucht 2137 m 7011 ft Sigriswil Merligen Lombachalp Habkern Gunten Schwanden-Tschingel-Ringoldswil Grünenbergpass Aeschlen Hogant Saali HilterfingenHilterﬁ ngen 2197 m 7208 ft Oberhofen Heiligenschwendi HünibachHünibach Thun Blumenstein Goldiwil

Homberg 42 | ACRON HELVETIA XII IMMOBILIEN AG Ausser-Eriz Teuffental Inner-Eriz Steffisburg Schwarzenegg Uetendorf Heimberg Wattenwil Kreuzweg Schallenbergpass Heimenschwand TOURISM GROWING IN INTERLAKEN THANKS TO FACTORS INCLUDING NEW MEDIA: Interlaken is a magnet for visitors: A stop in the vacation destination in the Bernese Oberland region is a must for many tourists visiting Switzerland, as well as sharing the pictures. Interlaken is an Instagram hit: No Swiss subject is photographed more often for the image network. The town beats out even the Matterhorn in this regard and is thus the most popular Swiss subject on Instagram.

ock Wetterhorn Schreckhorn Finsteraarhorn Eiger Mönch Jungfrau Grosshorn Breithorn Blümlisalp Doldenhorn Balmhorn Altels Wildstrubel Gletscherhorn 752 ft 3701 m 12143 ft 4078 m 13380 ft 4274 m 14019 ft 3970 m 13026 ft 4099 m 13449 ft 4158 m 13638 ft 3762 m 12339 ft 3782 m 12405 ft 3664 m 12018 ft 3643 m 11949 ft 3699 m 12133 ft 3629 m 11903 ft 3243 m 10637 ft 2943 m 9653 ft 32

Jungfraujoch – Top of Europe 3454 m 11333 ft

Gemmi Rawil

Homberg Ausser-Eriz Teuffental ACRON HELVETIA XII IMMOBILIEN AG | 43 Inner-Eriz Steffisburg Schwarzenegg Uetendorf Heimberg Wattenwil Kreuzweg Schallenbergpass Heimenschwand INTERLAKEN AS A VACATION, ADVENTURE AND CONFERENCE REGION

The Bernese Oberland region is one of Switzerland’s top vacation destinations. During all seasons, tourists head to the higher altitude areas of the canton of Berne. Situated between Lake Thun and Lake Brienz at the foot of three mountains, the Eiger, Mönch, and Jungfrau peaks, Interlaken is where people from all over the world meet.

The name Interlaken – between the lakes – says it all! Interlaken’s unique beauty comes from the combi nation of a mild, lakeside climate and the eternally white, 4,000-meter-high mountain peaks in the Bernese Oberland. It’s not for nothing that the city is a gateway to many different outdoor activities: skiing, hiking, sailing, or just enjoying the view.

With over one million visitors per year, the journey up the Jungfraujoch (the “Top of Europe”) is the highlight of any trip to Switzerland in the truest sense of the word. For more than 100 years now, the Jungfraubahn train has been transporting visitors to Europe’s highest train station at 3,454 meters above sea level in the middle of the Swiss Alps Jungfrau-Aletsch UNESCO World Heritage site. Tourists from all over the world usually choose the Golden Pass Line: Milan - Interlaken - Lucerne - Paris, while European visitors often choose the Zurich - Lucerne - Interlaken - Montreux - Geneva line. Either way, all roads lead to Interlaken.

The planned “V-Bahn”, or cable car, will secure a successful future for the Jungfrau region’s tourist sector as a top destination, winter or summer: The Grindelwald-Männlichen Gondola Cableway and Jungfrau Railways are planning to build a cableway that will provide access to both the Eiger Glacier as well as Männlichen. Travel times to the Jungfraujoch and the ski area will be shortened considerably, by 47 minutes. The cableway is expected to be completed in 2019/2020, and will reinforce the Jungfraujoch as a beacon for the area known worldwide and help the winter sports destination take the top position in international competition. 44 | | AHXII | INTERLAKEN City Hotel Oberland is located in Interlaken’s city center. Although Interlaken’s hotels are distributed across the entire resort town, Höheweg and its side streets like Postgasse and Marktplatz undoubtedly make up the city’s core. This boulevard stretching from west to east features restaurants, cafés, and bars, and offers an attractive place for guests from all over the world to meet, stroll, and shop to the benefit of the retail outlets there. The location of City Hotel Oberland is excellent. Visitors also have optimal access to the area’s top tourist attractions:

■■ 1-minute walk to the Jungfraustrasse Distance Arrival Arrival 21-102-103 bus stop Airport to property by train by car Bern-Belp 50 km 1 h 45 min ■■ 1-minute walk to the Zentralplatz 102-105-M41 bus stop Zurich 130 km 2 h 2 h Basel 150 km 2 h 2 h ■■ 2-minute walk to the information center ■■ 5-minute walk to Höhematte park and festival grounds Arrival by direct train Distance ■■ 5-minute walk to the Interlaken West train station Milan 280 km ■■ 8-minute bus ride to the Interlaken Ost train station Frankfurt 470 km ■■ 5-minute bus ride or 9-minute walk to the Congress Centre/ Casino Kursaal Paris 640 km Brussels 700 km ■■ 6-minute drive to access the A8 highway Amsterdam 880 km

CONGRESS CENTRE KURSAAL

Bahnhof Interlaken Ost CITY HOTEL OBERLAND

TRAIN STATION

ACRON HELVETIA XII IMMOBILIEN AG | 45

Interlaken and the Thun region/Lake Thun are and attract over 1,000 participants. Congress the ideal destination for conferences and events Centre Kursaal Interlaken is the largest venue 365 days of the year. As a conference destination, for conferences in the region and is among Interlaken has ten hotels for this purpose. This is the leading centers in Switzerland. City Hotel where international opinion leaders, politicians, Oberland is located a short 5-minute bus ride or and businesspeople meet: The state-of-the-art 9-minute walk from the Congress Centre. With its infrastructure in Interlaken and Thun provide an very central location and capacity for seminars optimal platform for conferences and forums, and meetings for 10 to 150 attendees, City Hotel for networking events and knowledge exchange, Oberland is the ideal hotel partner for seminars such as the Swiss Economic Forum and X.DAYS and conferences and attractive supplementary which take place at Congress Centre Interlaken activities.

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City Hotel Oberland – Seminar and banquet rooms Harder Niesen Rugen Great Hall Veranda TV-Salon Chess room Lobby Total Résidence Résidence Résidence 1st floor 1st floor 1st floor 1st floor Reception

Theatre/Concert 45 120 20 140 45 25 420 Seminar 40 70 16 80 30 20 281 U-shape 25 40 50 20 135 Banquet 35 100 20 120 40 45 30 414 Reception 40 120 25 130 40 40 20 120 535 Meeting 25 40 16 40 20 12 153 Area (square meters) 53 156 28 116 39 54 31 186 663 Length (meters) 8.3 13 7 11 15 6.5 3.7 64.5 Width (meters) 6.4 12 4 10.5 2.6 8.3 8.3 52.1

Persons maximum

46 | AHXII | INTERLAKEN INTERLAKEN AS A MECCA FOR ADVENTURE SPORTS

Interlaken is considered a mecca for adventure This is an important factor for the tourism sports. No other place in Europe offers the industry in the region as a whole. After all, when same variety of adventure activities. Whether guests get to know a region as youth and young in the water, in the mountains, or in the airy adults, they often return to that destination in heights, adrenaline-laden adventures await later years. Since a majority of hotel guests daring visitors. With 75,000 adventure activities are university students, they are likely to later available each year, Interlaken is one of Switzer become middle- to upper-range earners who can land’s and Europe’s top destinations for youth afford high-end vacations in a star-class hotel. and adventure travel.

Promising outlook: Congress Centre Kursaal Interlaken will be holding the Swiss Outdoor & Adventure Summit starting in 2019. This will enable the region’s further expansion into a hot spot for the Swiss and international outdoor and adventure scenes in the coming years. The first Summit is expected to attract over 500 participants.

INTERLAKEN | AHXII | 47 YOUR PARTNERS

BARCLI HOSPITALITY MANAGEMENT THE ACRON GROUP GMBH (HOTEL MANAGER) Founded in 1981, ACRON is headquartered in Managed by Lucas Meier and Meinhard Huck, Switzerland, with subsidiaries in Luxembourg, Barcli Hospitality Management GmbH is a Germany, the United States,and Brazil. company domiciled in Switzerland specializing in hotel management, consulting, and services. ACRON focuses on real estate investments for BHM’s founders have many years of experience high net-worth clients. in operations in the international hospitality business as well as in the vacation, city, and First-class properties and prime projects conference hotel segments in the Swiss and in the world’s safe havens are ACRON’s assets. European markets. The high level of service quality provided and focused implementation All investments are structured for single of concepts have resulted in the founders and investors as well as multiple investors (club deal). their associated companies receiving awards such as the “Wallpaper City Guide,” “Cool An internationally minded company, ACRON Hotels,” “Best Designed Affordable Hotels,” combines its global expertise with a local as well as the “Scottish Hospitality Award” in presence in the most stable real estate recent years. markets.

ACRON initially assumes the full financial risk MONOPLAN AG for every investment. Investments are only (RENOVATION ARCHITECT) offered to ACRON’s investors if the investments fulfill the respective investor’s criteria. The architectural firm based in Zurich employs 40 architects and interior designers, and All investments, most of which are single-asset offers a full range of architectural, project structures, are set up as stock corporations management, construction management, unless a special customized structure is interior design, landscape architecture, graphic required. All shares have an International design, and branding services. Their work is Securities Identification Number (ISIN), featured in hotels, restaurants, office buildings, and they are tradable. medical buildings, and trade show booths in Switzerland, Austria, and Germany and as far afield as Ireland. The company’s hotel projects in Switzerland include Motel One in Zurich and Basel and Schweizer Hof in Berne.

48 | AHXII | YOUR PARTNERS OUR OUTSTANDING TEAM HAS YEARS OF EXPERIENCE IN REAL ESTATE, LAW, INVESTMENT BANKING, AND ASSET MANAGEMENT.

Klaus W. Bender, Chairman of the Board of Directors of ACRON AG, founder of the ACRON Group in 1981, President of the Norbert Ketterer, Vice President of the Board Board of Directors of ACRON US Holding of Directors of ACRON AG, founder and Chair- Corp., formerly CEO and attorney at his own man of HFS Helvetic Financial Services AG, international law firm, at ACRON since 1981. over 20 years of success in business.

Peer Bender, CEO and Delegate of ACRON AG since 2017, Member of the Board of Directors Kai Bender, Managing Director of ACRON of AHXII, Manager of ACRON Lux Management GmbH and Member of the Board of Directors S.à r.l., Vice President of ACRON US Holding of ACRON AG since 2017, President of the Corp., co-founder of ACCENSIS GmbH and Board of Directors of AHXII, CEO and Delegate formerly CEO of ACRON GmbH from 2006 to of the Board of Directors of ACRON AG from 2016, Product Manager at ACRON GmbH, at 2008 to 2016, formerly Managing Director of ACRON since 2004. ACRON GmbH, at ACRON since 2003.

Jürg Greter, Member of the Board of Directors of ACRON AG, attorney and owner of Greter & Claudia Schön, Chief Customer Officer Partners Attorneys, formerly Managing of ACRON GmbH, formerly Head of Fund Partner at MGR Meier Greter Attorneys and Administration at ACRON GmbH and employed Head of KPMG Private in Zurich, at ACRON in internal and external communications at an since 2005. international company, at ACRON since 2006.

André N. Lagler, Managing Director and Head Ertan Isen, Managing Director of ACRON of Sales of ACRON AG, formerly a Director and Lux Invest S.à r.l., Manager of ACRON Lux trader in the investment banking business at Management S.à r.l., Deputy Managing Credit Suisse and ABN AMRO, more than 25 Director of ACRON GmbH (2011 to 2016), years of experience in the international finan- formerly legal counsel to ACRON GmbH and cial sector. Möwe GmbH, at ACRON since 2009.

Michael Teperski, Managing Director Greg W. Wilson, Vice President of ACRON US Marketing of ACRON AG, formerly Head of Holding Corp.; President, Secretary, Treasurer Marketing & Communication at DJE Kapital, of ACRON U.S. Management, Inc.; formerly Germany, and Deputy Head of Marketing Controller and Vice President at American Investment Banking at Bank Vontobel AG, real estate companies and Vice President at Switzerland. Intervest Properties, at ACRON since 1998.

Lukas Jegher, Chief Financial Officer of Carole Hoffman, Head of Controlling and ACRON AG; formerly Senior Manager at Accounting at ACRON U.S. Management, PricewaterhouseCoopers; Fiduciary at KPMG; Inc.; formerly employed in real estate manage degrees: Certified Fiduciary, Advanced Federal ment and acquisition, accounting, at ACRON Diploma of Higher Education since 1999.

YOUR PARTNERS | AHXII | 49 ACRON’S WORLDWIDE HOTEL EXPERTISE

Steigenberger Alpenhotel und Spa**** Motel One Wien Westbahnhof*** Gstaad, Switzerland Vienna, Austria Acquired in 2005. Net purchase price of Acquired in 2012 for EUR 82.5 million. CHF 24 million. Sold in 2015 for a sale price Structured as ACRON Wien West A3 S.A. of CHF 26.26 million. Total distribution after Sold in December 2017 for an underlying a holding period of 10 years: 150% of the property value of EUR 110 million. Total originally invested estimated equity. Held by distribution after a holding period of 4.5 years: stock exchange-listed Swiss stock corporation 189% of the originally invested estimated ACRON HELVETIA II Immobilien AG. Annual IRR equity. Annual IRR of 14.3% realized. of 9.6% realized. Gloria Palace Hotel***** Radisson Blu Hotel Zurich Airport**** Rio de Janeiro, Brazil Zurich, Switzerland Development site acquired and sold in 2014 for Acquired in 2006. Net purchase price of BRL 207.1 million. Structured as Luxembourg CHF 147.6 million. Structured as Swiss stock stock corporation ACRON Gloria Palace S.A. corporation ACRON HELVETIA IV Immobilien AG (currently Al Maha Real Estate AG). Shares sold Sheraton Fisherman’s Wharf Hotel**** in 2009. Annual IRR of 18.7% realized. San Francisco, California, USA Acquired in 2016 for USD 200.0 million. Steigenberger Airport Hotel**** Structured as ACRON Fisherman’s Wharf Berlin-Brandenburg, Germany Hotel SF AG. Returned to seller/developer in 2013 based on an agreed completion guarantee due to the fact Solís Two Porsche Drive**** that Berlin International Airport did not begin Atlanta, Georgia, USA operations. Annual IRR of 8.9% realized. Development site acquired in 2015 for USD 52.8 million. Structured as Radisson Blu Hotel und Grand Casino**** ACRON 2 Porsche Drive Atlanta AG. St. Gallen, Switzerland Acquired in 2012 for CHF 58.5 million. Held Navy Pier Hotel**** by Swiss stock corporation ACRON HELVETIA Chicago, Illinois, USA St. Gallen AG. New hotel construction on world-renowned Navy Pier. Development cost around USD 101.5 million. Planned opening in January 2020. Structured as ACRON Navy Pier Hotel Chicago AG.

50 | AHXII | YOUR PARTNERS SOLIS TWO PORSCHE DRIVE ATLANTA, USA

“New Hotel Construction & Design Georgia” award received by ACRON in the International Property Awards, Region: Americas, in Toronto, Canada. Honor presented for the concept and design of the new, four-star SOLIS TWO PORSCHE DRIVE hotel in Atlanta, Georgia, opened in November 2017.

IHRE PARTNER | AHXII | 51 ACRON’S EXPERTISE AND SUCCESS STORY IN EUROPE

As a family-owned company, ACRON’s business rests on solid values. For more than 35 years now, the company has structured and implemented indirect and closed-end real estate investments for private individuals and institutional investors. The company aims to generate excellent returns for shareholders on their capital invested through income growth from first-rate real estate and value appreciation of high-quality properties.

Investment company Year Average Asset acquired return p.a. 1. ACRON HELVETIA I 2001 5.0% Office and logistics property in Buchs, ZH, Switzerland Office in Solothurn, SO, Switzerland 2. ACRON HELVETIA II 2005 IRR 9.6% Hotel in Gstaad, BE, Switzerland 3. ACRON HELVETIA III 2005 IRR 8.4% Office property in Bern, BE, Switzerland 4. ACRON HELVETIA IV 2005 IRR 18.7% Hotel in Zurich, ZH, Switzerland 5. ACRON HELVETIA V 2009 7.4% Logistics and office property in Münchenstein, BL, Switzerland 6. ACRON HELVETIA VI 2009 7.4% Logistics and office property in Zürich, ZH, Switzerland 7. ACRON HELVETIA VII 2009 IRR 10.2% Office property in Zurich, ZH, Switzerland 8. ACRON HELVETIA IX 2009 IRR 6.8% Shopping center in Näfels, GL, Switzerland 9. ACRON Berlin Brandenburg International Airport AG 2010 IRR 8.9% Hotel in Berlin, Germany 10. ACRON HELVETIA X 2012 5.0% Hotel und Casino in St. Gallen, SG, Switzerland 11. ACRON Wien West 2012 IRR 14.3% Retail, office and hotel property in Vienna, Austria 12. ACRON HELVETIA XI 2013 5.0% Shopping center in St. Gallen, SG, Switzerland 13. ACRON SWISS PROPERTIES I 2013 5.3% Shopping center in Sierre, VS, Switzerland 14. ACRON Swiss Premium Assets AG 2016 6.5% Portfolio in Zurich, ZH, Bern, BE, Switzerland 15. ACRON HELVETIA St. Gallen AG, Zug 2017 5.6% Portfolio in St. Gallen, SG, Switzerland 16. ACRON HELVETIA XII Immobilien AG 2017 8.3% Hotel in Interlaken, BE, Switzerland

52 | AHXII | YOUR PARTNERS ACRON FIGURES

ASSET CLASS BREAKDOWN1

Residential Logistics 5% 2% Retail 15%

Hotels 52% RADISSON BLU & GRAND CASINO Offices ST. GALLEN, SWITZERLAND 26%

RADISSON BLU HOTEL ZURICH AIRPORT ZURICH, SWITZERLAND

TRANSACTION VOLUME CHF 1.77 BILLION

INVESTORS BY REGION OF ORIGIN2 STEIGENBERGER ALPENHOTEL AND SPA GSTAAD-SAANEN, SWITZERLAND North America Austria Liechtenstein 2% 2% 1% Others* Luxembourg 1% 8% Mexico 8% Switzerland 41% Saudi Arabia 8%

Qatar 8%

Germany 21%

MOTEL ONE HOTEL VIENNA, AUSTRIA

As of September 2017 1 in relation to investment volume 2 in relation to total equity

YOUR PARTNERS | AHXII | 53 RISK FACTORS

The value of an investment in ACRON HELVETIA XII Immobilien AG (“AHXII”) may increase or decrease. An investment in AHXII is therefore subject to various risks and investment considerations, some of which are outlined below. This list of risk factors is not exhaustive. Prior to subscription, interested investors should carefully consider all of the information in the Articles of Association, issuing prospectus, and other AHXII documents. The investment made by AHXII is speculative by nature, and there is a possibility that the capital invested may be lost in whole or in part. Investors should only subscribe for registered shares (preference shares) if they can easily absorb the consequences of a loss. In particular, investors should consider the risk factors outlined below, which could individually or collectively have a material adverse effect on AHXII or its assets, and thereby result in a loss up to a total loss of the capital invested, or in returns lower than those presented here.

1. GENERAL REAL ESTATE RISKS 1.1 LIMITED LIQUIDITY IN THE SWISS REAL ESTATE MARKET The Swiss real estate market is relatively illiquid, particularly in terms of investments in larger Swiss real estate projects. For this reason, AHXII has only limited leeway to sell and liquidate the hotel in case a sale is necessary within a short period of time. This could result, among other things, in AHXII being forced to sell the hotel at a lower price than would otherwise be obtainable if AHXII had more time to sell the hotel.

1.2 REAL ESTATE-SPECIFIC RISKS Legal or actual limitations of the options for use, environmental pollution, or other defects discovered after the acquisition of the hotel could permanently impair the results of operations of AHXII.

1.3 RISKS OF OPERATING A HOTEL The hotel market is marked by intensive competitive pressure, including because of continuous growth in hotel capacity. In addition, hotels with a fixed supply are confronted with rather volatile demand, which is dependent on the economy and sensitive to price, among other factors, a situation that gives rise to the risk of declining occupancy and difficult-to-obtain prices. This in turn can result in planned and forecast revenue and earnings expectations from hotel operations failing to materialize in whole or in part, which could negatively affect the returns achievable by investors and result in losses of up to the total amount invested. The company’s success depends to a large degree on the entrepreneurial abilities of the Board of Directors and managerial staff of the hotel, the proper supervision of the managerial staff of the hotel by the Board of Directors, and the skills of third-party experts providing services to the company. Changes in key personnel could affect the performance of the company, which in turn could negatively affect the returns achievable by investors and result in losses of up to the total amount invested.

1.4 LEASING RISK The earnings expectations assume that the retail space already existing and the new retail space to be created and leased to third parties will be fully leased and generate a certain rental income. There is a risk that the spaces will not be leased or will not be leased under the assumed terms and conditions. After leases expire, extensions or leasing to new tenants could result in additional costs (renovation, refurbishment, granting of rent-free periods, lease commission) that exceed the costs planned for this purpose. The aforementioned factors could result in a reduction in the investment return for holders of preference shares up to the total loss of the equity invested.

54 | AHXII | RISK FACTORS 1.5 CONSTRUCTION RISK AHXII will extensively refurbish and renovate the hotel. The investment and financing plan estimates the construction costs for this project. Likewise, a time frame is estimated according to which the work is expected to be completed. Experience has shown that, in the case of extensive construction work like this, no assurance can be given that the work can be completed in line with the projected construction costs and during the construction period estimated. Detailed planning has not yet been prepared. In some cases, considerable cost increases and schedule overruns could therefore occur. Comparatively higher construction costs could reduce the profitability of the real estate investment. Extension of the construction period could result in lower than originally projected revenue.

2. USE OF BORROWED CAPITAL On the one hand, the use of borrowed capital can improve the returns on the capital invested and reduce the property-specific risk. On the other hand, this also results in a greater potential for loss due to the greater risks associated with adverse economic developments. These adverse developments could be factors such as rising interest rates, substantial economic downturns, or deterioration in the condition of a property or its market. At the same time, no guarantee can be given that AHXII will be able to fulfill its loan obligations incurred when assuming debt. Moreover, there is a risk that follow-on financing will not be obtained.

3. SPECIFIC RISKS ASSOCIATED WITH THE COMPANY 3.1 LACK OF A LIQUID MARKET FOR PREFERENCE SHARES Equity investments in AHXII are generally a relatively illiquid investment for the following reasons: a) AHXII is a closed-end investment, i.e., the company will not redeem the preference shares upon request by preferred shareholders; b) The issuing prospectus and the Articles of Association stipulate restrictions on transfer, i.e., transferring preference shares requires the approval of the Board of Directors; c) Preference shares are reserved exclusively for qualified investors as defined by FINMA and the applicable laws and standards in effect in Switzerland, and the transfer of preference shares is not valid if it results in non-qualified investors becoming shareholders of the company; and d) There is no right to redeem or withdraw the shares.

3.2 PERFORMANCE RECORD The experience of the individuals responsible for management of AHXII in connection with the ownership, administration, and sale of real estate may not necessarily provide the insights necessary for the outlook for AHXII, and no assurance can be given that the investment in AHXII will produce adequate returns.

3.3 TAX CONSIDERATIONS Despite concentrated efforts toward minimizing the tax liability of preferred shareholders, no assurance can be given of a tax liability in a certain amount. Changes in the tax rules of various jurisdictions in which the AHXII assets are held could have a negative effect on the tax situation of AHXII and its shareholders.

RISK FACTORS | AHXII | 55 CONTACT DISCLAIMER

ACRON HELVETIA XII Immobilien AG This brochure is intended exclusively for qualified c/o Buchhaltungs- und Revisions - AG investors within the meaning of the Swiss Bundesstrasse 3 Federal Act on Collective Investment Schemes 6302 Zug (CISA) in conjunction with the Ordinance on Switzerland Collective Investment Schemes (CISO), both as [email protected] amended from time to time. This brochure was phone: +41 (0)44 804 34 14 produced by ACRON HELVETIA XII Immobilien AG and/or its affiliates with the greatest care CHE‑301.519.542 and to the best of its knowledge and belief. It Board of Directors: is based upon information and data provided Kai Bender, President to ACRON HELVETIA XII Immobilien AG, and is Peer Bender, Member intended for informational purposes only and for the exclusive use of the recipient. It does not constitute an offer or a recommendation to ACRON AG buy or sell financial instruments and does not Splügenstrasse 14 release the recipient from the responsibility of 8002 Zurich, Switzerland exercising his or her own judgment. Specifically, phone: +41 (0)44 204 34 00 the recipient is advised to review the information fax: +41 (0)44 204 34 09 contained herein to determine whether the [email protected] investment is appropriate for his or her own www.acron.ch circumstances in terms of any legal, regulatory, tax, or other consequences, if necessary with the ACRON GmbH help of a professional advisor. © 2018; ACRON Grafenberger Allee 295 HELVETIA XII Immobilien AG, c/o Buchhaltungs- 40237 Düsseldorf, Germany und Revisions - AG, Bundesstrasse 3, 6302 phone: +49 (0)211 91 24 100 Zug, Commercial Register of the Canton of Zug, fax: +49 (0)211 91 24 200 CHE‑301.519.542 [email protected] www.acron.de

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