YE2019 - Q12020 | Real Estate Market Overview | | May, 2020 | Private & Confidential 1.0 Synopsis Greece Real Estate Market: Synopsis

Global Economy Q1 2020 Greek Economy 2019 Policy Responses to the Pandemic

Coronavirus pandemic freezes Broad-based recovery led by exports Fiscal Policy expected to do the economic activity and public consumption heavy-lifting to combat Covid-19 • IMF states that GDP per capita shrinking in 170 • GDP continues to increase at positive rate of • Fiscal measures announced to support countries due to pandemic is now an optimistic 1.9% (2019). Data are provisional with a second economy and private sector corporations and scenario estimate expected in October 2020 employees. The second wave of budgetary • According to the IMF, the global economy is • Unemployment down to 16.6% (12/2019) from measures amounts to 3.8 bil. Euros. forecasted to shrink by 3% as a base case 27.5% in 2013. Euro area unemployment at • ENFIA tax will be calculated according to scenario and expected to bounce back in 2021 7.3% (February 2020) previous status quo and new fair value prices • The recovery is largely dependent on how long • Inflation rate is muted and is expected to remain will kick in 2021. the outbreak will last at low levels (0.9%) • European Investment Bank to provide 2 bn • More than 300,000 people have lost their lives • NPLs-to-Gross Loans down to 42.1% (Sep. euros liquidity to corporations. until May 2020. 2019) from 46.7% in September 2018 • ECB expected to maintain accommodative policy and Asset Purchases. House Prices 2019 Real Estate Supply Apartment Prices 2019

Prices of Dwellings continue to Number of building permits increase in YoY increase of 7.5% compared to increase in 2019 2019 2018

• Prices of dwellings increased by 7.5% on a y-o- • Total building activity at a country level has • Apartment prices are increasing but they remain y basis increased by 16.6% (Feb 2019- Jan.2020) at low levels • Percentage change in Q4 -2019 relative to Q1- • Production Index of Building Construction which • Relative to Q1-2019, prices of apartments older 2019 comes at 5% measures value of construction of buildings than 5 years grew by 4%. New up to 5 yeas • Domestic demand for houses is expected to (residential and non-residential) along with site grew at 6.4% increase as a result of low costs of financing formation, demolition, and general works for • On a y-o-y basis, apartment prices in Athens and reduction of NPL levels on banks’ balance buildings has dropped by 5.7% y-o-y basis. grew by 11% and apartment prices in sheets Thessaloniki by 5.5% • Apartment prices are driven by short rent platforms and “Golden Visa” investors.

Delfi Partners | Real Estate Market Research | Private & Confidential | 2 | 2.0 Greek Economy Greek Economy grew in 2019. Impact from pandemic estimated at -10% on GDP growth

Main drivers of growth in 2019 are exports of goods and services and government consumption. Impact of Covid-19 cannot be quantified yet. Expectations range from 0% to -10% GDP growth in 2020.

Real GDP Growth Key Figures

4.0% 2% EC Forecast ignoring COVID 2% 2% 2% GDP Growth 1.9% Expected to shrink 2.0% 1% -0.3% 0% 0% 0.0% Unemployment 16.6% Expected to increase, highly uncertain -2.0% -3% -4% Inflation 0.9% Not expected to change in short-run -4.0% -5% Investments (bn), ‘19) € 21.4 5% compared to 2018 -6.0% -7%

-8.0% -9% Government Debt1 181.1% Expected to increase to 200% IMF Forecast accounting for COVID -10.0% -10% Source: Eurostat, European Commission Projections -12.0% 1 General Government Gross Debt as a percentage of GDP (2018) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 Source: Eurostat Gross Fixed Capital Formation (mil. €) IMF expectations Real GDP Covid Effect 10000 Exports/Imports in mn € 8000 75,000 6000 67,218 69728 70,000 69,452 4000 66,889 65,000 69710 2000 63,353 62,130 61,292 60,000 59,915 55,931 54,317 66,736 0 55,000 52,866 54,845 59,454 57,837 55,840 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 50,000 49,958 54,835 53,059 45,000 Dwellings Other buildings and structures 40,000 Cultivated biological resources Total Machinery 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Transport equipment +weapon systems Information Communication Technology (ICT) equipment Exports Imports Other machinery and equipment +weapon systems Intellectual property products

Source: ELSTAT Source: ELSTAT

Delfi Partners | Real Estate Market Research | Private & Confidential | 3 | 3.0 Tourism Industry Greece scores first with 87.9% in hotel satisfaction index (GRI), June 2019 data.

Tourism is one of the leading contributors to GDP with a share of over 20%. Total arrivals are continuously increasing since 2010 signalling increasing demand for Greek destinations. In dealing with Covid-19 Greece has gained credibility which should be cashed during the 2021 season.

Total Arrivals* ('000s) Average Spend/Night by country of Origin (€) 35,000 30,123 80.0 30,000 27,194 24,799 73.1 73.9 23,599 70.0 69.6 71.1 70.4 25,000 22,033 68.6 67.0 67.7 69.0 17,920 60.0 20,000 16,427 15,007 15,518 15,000 50.0

10,000 40.0 2010 2011 2012 2013 2014 2015 2016 2017 2018* 5,000 Eurozone EU countries outside Eurozone 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Other Countries Total Border Survey**

Source: Insete Source: Insete *Excludes cruises *2018 data are provisional Hotel Occupancy Rates ** Cruise data not included • Average spend per night has exhibited a modest increase and remains lower than 2015 levels 100 74.8 76.2 • Other Countries segment includes US, Australia and Switzerland with 89.1,84.3 and 85.1€ spend 65.8 80 68.1 on average per night. From those countries only US tourists spent more in 2018 than in 2017 52.8 • 2018 Occupancy rates are fairly stable on a y-o-y basis 60 66.8 75.2 76.8 66.3 • Bank of Greece provisional data for January to March 2019 period showed a surplus of 212 mn € in 40 22.3 23.6 26.1 47.1 balance of travel services, up from 127 mn € surplus in same period for 2018 20 • UK tourists form a significant share of inbound arrivals. BREXIT negotiations pose a risk for Greek 22.1 21.8 25.5 tourism to the extent of the deal reached. Recent collapse of Thomas Cook will cost the economy 0 0.5bn€ according to government officials Jan Feb Mar Apr May Jun Jul Aug • For the period of 2019 according to preliminary data, arrivals are estimated at over 30 million and 2017 2018 generating approximately 18 bil euros in revenues • Hotel units are estimated at 9,917 Source: Insete Delfi Partners | Real Estate Market Research | Private & Confidential | 4 | 4.0 Banking Sector NPLs dropped to 42.1% but bad-debt management issue still looms over economy.

10 Year Greek Benchmark Government Bond yields drop to new lows, 2% on April. Yields increased during the period of lockdown Investor confidence to Greek economy picked up during 2019, as did the Bank Equity Market Index. The effect of the pandemic is apparent in bank equity sector.

10 Year Greek Government FTSE Bank Index Benchmark Bond Yield Quarterly Closing Prices 16 950 862 883 14 806 829 850 785 12 750 10 8 650 577 552 6 550 440 4 450 2 344 350 0 250

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Jul-15 Jul-16 Jul-17 Jul-18 Jul-19

Apr-18 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Oct-18 Apr-19 Oct-19 Apr-20

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Source: Athens Stock Exchange Source: Bloomberg

• Greece’s cost of financing has dropped to low levels, which can be used to finance more growth- NPL Ratio oriented policies and provide stimulus for economic recovery in response to the lockdown 49.1 50 49.1 48.7 48.6 • Confidence to Greek economy seems to cascade down to the financial sector with bank stocks 47.8 47.2 gaining in price before the lockdown and the prospects of a potential recession 48 46.7 45.4 • According to Bank of Greece data, total deposits and repos from private sector stood at 143 bn € , a 46 45.1 43.6 6.3% 12-month change (Public Source, December 2019) 44 42.1 • On the downside, Greece is the worst performing country in Euro area in terms of NPL ratio. NPLs 42 are a drag on banks’ balance sheets and hinder their ability to issue new loans to customers 40 • Greek banks Tier 1 Capital Ratio was estimated at 15.3% (ECB, January 2019) well above Basel III minimum requirement of 6%. Greece’s Tier 1 ratio is at the average of Euro Area level 38 • In dealing with the global pandemic there is uncertainty on the impact of Covid-19 on bank balance Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 sheets through the management of non-performing loans • Securitization is brought to halt at least until H2 2020 Source: Bank of Greece

Delfi Partners | Real Estate Market Research | Private & Confidential | 5 | 5.0 Population (2011 Census) Total Population per Region

East Macedonia – Thrace 608,182 (6%)

Central Macedonia 1,882,108(17%)

West Macedonia 283,689 (3%) North Aegean 199,231(2%) Epirus 336,856(3%))

Thessaly 732,762(7%) Central Greece Ionian islands 547,390(5%) 207,855(2%)

West Greece South Aegean 679,796(6%) Attica 3,828,434(35%) 309,015(3%)

Peloponnese 577,903(5%)

Source: ELSTAT Delfi Partners | Real Estate Market Research | Private & Confidential | 6 | 6.0 Residential Assets Demographics Residential market 2011 snapshot.

According to ELSTAT data from 2011 Census, there were approximately 6.4 million regular residential assets in Greece.

Status of Residential Properties Period of Detached Apartment Total 2 floor house Other 80% Construction House Building 70% 60% Before 1919 163,759 139,270 18,952 5,016 521 50% 40% 1919 - 1945 318,372 256,942 43,748 16,902 780 30% 1946 - 1960 605,693 393,987 105,838 104,431 1,437 20% 1961 - 1970 1,002,902 385,796 174,220 440,342 2,544 10% 0%

1971 - 1980 1,437,424 382,443 229,831 820,853 4,297

Attiki Crete

1981 - 1990 1,049,931 357,608 202,350 486,189 3,784 Epirus

1991 - 2000 806,977 261,589 138,610 403,882 2,896 Thessaly

Peloponese

West Greece West

Country Level Country IonianIslands Aegean North SouthAegean

2001 - 2005 539,009 149,230 76,783 311,497 1,499 Greece Central

West Macedonia West Centr.Macedonia after 2006 447,834 130,572 58,669 256,971 1,622 Mac. East Thrace Total 6,371,901 2,457,437 1,049,001 2,846,083 19,380 Occupied Vacant For Rent For Sale

Source: ELSTAT, 2011 Census Source: ELSTAT, 2011 Census Total Residential Assets Country Level 6,384,353 East Mac. Thrace 340,682 • Data shows that bulk of construction took place during 1960s to 1990s. There is Centr.Macedonia 1,076,148 significant decrease in the years following 2006, signifying more aged properties West Macedonia 159,409 • Highest percentage of residential assets is located in Attica region with Central Epirus 204,948 Macedonia coming in the second place Thessaly 397,301 Central Greece 359,236 • Share of assets occupied are in excess of vacant assets, except for Ionian Ionian Islands 160,298 Islands, Peloponnese, North and South Aegean where shares are almost West Greece 390,609 equivalent Peloponese 411,462 • We should note that most of the assets are available to rent while available for Attiki 2,121,155 sale are less than 1% of total regular assets North Aegean 151,449 South Aegean 229,919 Crete 381,737

Source: ELSTAT, 2011 Census Delfi Partners | Real Estate Market Research | Private & Confidential | 7 | 6.1 Greece Real Estate Market After 7 years of economy recession, Real Estate market shows signs of recovery.

Although prices are normalizing, they remain at low levels. Fiscal measures announced by the new government and heightened confidence to the economy are expected to drive real estate market. The pandemic has shocked global housing prices and the challenge for the Greek real estate market is the level of relative return it can provide to investors.

Residential Nominal Prices Athens and Thessaloniki Quarter Index Apartment Index 116.57 118.04 120 108.46 111.94 102.51 105.29 110.0 100.9 110 96.74 97.59 99.77 96.3 97.52 100.0 93.2 100 87.2 90 90.0 101.5 80 70.26 68.6 67.37 70.41 95.4 76.9 65.58 64.22 63.92 63.56 63.08 63.53 64.51 66.88 80.0 70 88.4 67.5 60 70.0 82.4 61.1 63.8 57.9 56.8 56.2 57.7 50 60.0 71.2 58.8 64.7 60.5 57.2 55.3 55.0 50.0 54.5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Euro Area Residential Nominal Prices (2010=100) Greece Residential Nominal Prices (2010=100) Athens Thessaloniki

Source: Bank for International Settlements Source: Bank of Greece

Other Areas Apartment Index* 110 103.3 105 101.3 100 95.4 95 91.2 90 85 80.7 80 73.3 75 69.7 66.5 67.8 70 64.6 64.1 64.8 • House prices have lost over 30% of value compared to peak in nominal terms 65 • Apartment Indices in Athens and Thessaloniki show that prices are at early stages of recovery 60 • The impact of the lockdown has not been quantified yet 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Bank of Greece * Region Capital cities except for Athens and Thessaloniki

Delfi Partners | Real Estate Market Research | Private & Confidential | 8 | 6.2 Greece Real Estate Market Demand for houses is predominantly exogenous, but this is likely to change

Golden Visa Scheme has attracted foreign investor interest in channelling funds to Greek residential market. A minimum investment of 250K is required to qualify for the scheme. The impact of the pandemic and the drop in prices could also be a driver of exogenous demand Residence Permits to Investors Residence Permits to Investors TImeseries Top-10 Countries (03/2020) 8000 7187 7414 Other 437 7000 Syria 59 6000 Jordan 64 Ukraine 74 5000 4107 Iraq 94 4000 Iran 120 Egypt 152 3000 2226 Lebanon 158 2000 1267 Russia 379 781 364 Turkey 520 1000 China 5352 0 2014 2015 2016 2017 2018 2019 Mar-20 0 1000 2000 3000 4000 5000 6000 Source: Ministry for Migration Policy Source: Ministry for Migration Policy

Residential Loans (bn €) 18.0 15.4 • Golden Visa scheme is a driver of demand for residential house prices. Since its inception permits for 16.0 13.6 individuals seeking to qualify for the scheme have increased at an exponential rate 14.0 12.4 • Chinese citizens have the lion’s share in residence permits issued and show a preference for residential 12.0 assets in the centre of Athens 10.0 8.0 8.0 • On the other hand domestic purchase ability remains weak, predominantly due to lack of access in means 6.6 8.0 5.9 to finance a home purchase 6.0 4.5 4.7 3.3 • Fiscal measures announced by the government are expected to increase both domestic demand – in 4.0 1.4 terms of purchase ability – and foreign demand, as tax burdens on residential properties decrease 2.0 0.7 0.5 0.5 0.2

0.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Bank of Greece

Delfi Partners | Real Estate Market Research | Private & Confidential | 9 | 6.3 Greece Real Estate Market Demand for residential properties in Athens remains at high levels

According to Bank of Greece data, apartments in Athens have continued to increase in price during the final quarters of 2019. Mean asking prices during the first quarter of 2020 echo this steady increase which is expected to come to a halt as transactions freeze and uncertainty risk rises.

On a year on year basis (Q1 2020 to Q1 2019) mean asking prices in properties in Athens have increased. Piraeus housing market shows signs of higher demand while prices in Athens are still growing but at lower rates.

House Asking Prices (€/sqm) Q1 2020 Q1 2019 % Change Athens-Center 1571 1500 5% Athens North Sub. 2246 2162 4% Athens South Sub 2593 2500 4% Athens West Sub 1273 1176 8% Athens East sub 1518 1450 5% Piraeus 1444 1302 11%

Source: Delfi Analytics, 2020

Delfi Partners | Real Estate Market Research | Private & Confidential | 10 | 6.4 Greece Real Estate Market Athens rent prices are also on the upside

Rent prices have followed suit but grew at a slower rate than purchase prices. On average, rent prices continue to exhibit positive slope. Data show that rents have increased the most in West Suburbs and Piraeus, with rent growth rates showing mixed signs in different areas of Athens.

During Q1 2020 rent asking prices in Athens centre continue to decrease compared to Q1 2019 and Q1 2018. Demand for rents picks up steam in other areas according to table below.

Rent Asking Prices (€/sqm) Q1 2020 Q1 2019 % Change Athens-Center 9.44 9.91 -5% Athens North Sub. 8.39 8 5% Athens South Sub 10.59 10.7 -1% Athens West Sub 6.22 5.71 9% Athens East sub 6.25 5.83 7% Piraeus 7.6 7 9% Source: Delfi Analytics, 2020

Delfi Partners | Real Estate Market Research | Private & Confidential | 11 | 6.5 Greece Real Estate Market Thessaloniki asking prices grow above national level.

As seen in page 9, apartment prices in Thessaloniki were less convex compared to Athens prices. Prices in Thessaloniki were more exposed on the downside as crisis unfolded and slower to bounce back as economy was transitioning to recovery.

From our data we see mean asking prices at a municipality level increasing at a staggering 28% on a y-o-y basis. Within the rest of Thessaloniki and its suburbs growth was at lower rates. House Asking Prices (€/sqm) Q1 2020 Q1 2019 % Change Thessaloniki - Municipality 1476 1154 28% Thessaloniki - Suburbs 1120 1037 8% Rest of Thessaloniki 800 781 2% Source: Delfi Analytics, 2020

Rent market in Thessaloniki seems less active with rent prices increasing nearly or above double digits on the regional level.

Highest increase is witnessed outside the Municipality area. Demand for lease seems to pick up in Rest of Thessaloniki.

Rent Asking Prices (€/sqm) Q1 2020 Q1 2019 % Change Thessaloniki - Municipality 7.6 7 9% Thessaloniki - Suburbs 5.3 4.8 10% Rest of Thessaloniki 3.8 2.8 36% Source: Delfi Analytics, 2020

Delfi Partners | Real Estate Market Research | Private & Confidential | 12 | 6.6 Greece Real Estate Market Asking Prices on Islands are increasing on an average basis.

The overall map of asking prices shows that on average asking prices in islands increased but at a slower rate than the national level of 8%, with the exception of Sporades. Peak of demand in Corfu is worth noticing as the island is a growing tourist destination with new hotel investments taking place. Mature primary destinations such as Cyclades have continued to exhibit positive growth rates.

House Asking Prices (€/sqm) Q1 2020 Q1 2019 % Change Dodecanese 1393 1316 6% Zante 1536 1500 2% Corfu 1625 1533 6% Cyclades 2556 2475 3% Lesvos 1026 1000 3% Lefkada 1874 1803 4% Samos 896 917 -2% Argosaronikos 1827 1714 7% Sporades 1750 1473 19% Source: Delfi Analytics, 2020

Delfi Partners | Real Estate Market Research | Private & Confidential | 13 | 6.7 Residential Assets Transactions

Transactions are picking up steam after reaching a trough in 2014. Demand is predominantly exogenous and facilitated though the Golden Visa scheme and the low price levels of Greek residential assets. The line chart below shows a time series of transactions according to most recent data. Real Estate Transactions Transactions Attica Region Country Level Residential Properties* (2017-2018) 180,000 157,978 160,000 135,967 10th percentile € 129 140,000 117,948 120,000 100,000 50th percentile € 479 83,665 79,532 80,000 69,826 57,650 60,540 49,774 54,631 60,000 43,443 90th percentile € 1,333 40,000 20,000 € - € 200 € 400 € 600 € 800 € 1,000 € 1,200 € 1,400 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source:ELSTAT Source:Ministry of Finance * Includes Houses/Apartments and Detached Houses

Construction Year of Average Price (€) Volume Average Main Area Properties Disposed /Sqm • Detached Houses Transactions in Attica totalled 1,378 over the past two years. before 1990 23,490 608 72.40 • The average Detached House was built in 1974 with a size area of 152 1990 - 1999 1,117 969 105.40 sqm and was sold at 1,146 €/sqm. 2000-2019 3950 1,222 95.00 • The average House/Apartment was built in 1975 with a size of 73 sqm Source: Ministry of Finance and was sold at 687 €/sqm. Includes Houses/Apartments and Detached Houses

Delfi Partners | Real Estate Market Research | Private & Confidential | 14 | 6.8 Residential Assets Transactions (2018)

Transactions in Thessaloniki at the Regional and City Level.

Transactions Thessaloniki Region City of Thessaloniki Residential Properties* (2017-2018) Transaction Price (€)/Sqm

10th Percentile 128 10th percentile € 129

50th Percentile 426 50th percentile € 429

90th Percentile 997 90th percentile € 1,000

€ - € 200 € 400 € 600 € 800 € 1,000 € 1,200 € - € 200 € 400 € 600 € 800 € 1,000 € 1,200

Source:Ministry of Finance Source:Ministry of Finance

Construction Year of Average Price (€) • Detached Houses Transactions in Thessaloniki totalled 346 over the Volume Average Main Area Properties Disposed /Sqm past two years. before 1990 6,793 456 68 • The average Detached House was built in 1979 with a size area of 112 sqm and was sold at 453 €/sqm. 1990 - 1999 724 673 72 • The average House/Apartment was built in 1977 with a size of 69 sqm 2000-2019 1597 763 81 and was sold at 530 €/sqm. Source: Ministry of Finance Includes Houses/Apartments and Detached Houses in Region of Thessaloniki

Delfi Partners | Real Estate Market Research | Private & Confidential | 15 | 6.9 Residential Assets Transactions (2018)

Transaction Price/sqm in selected prefectures across Greece. Data include both House/Apartment and Detached House asset sub-types. (1/2)

Prefecture of Chalkidiki Prefecture of Piraeus Prefecture of Chania Transaction Price (€)/Sqm Transaction Price(€)/Sqm Transaction Price(€)/Sqm

10th Percentile 176 10th Percentile 123 10th Percentile 127

50th Percentile 576 50th Percentile 395 50th Percentile 478

90th Percentile 1,207 90th Percentile 1,044 90th Percentile 1,411

0 200 400 600 800 1,000 1,200 1,400 0 200 400 600 800 1,000 1,200 0 200 400 600 800 1,000 1,200 1,400 1,600

Source: Ministry of Finance Source: Ministry of Finance Source: Ministry of Finance

Prefecture of Dodekanisos Prefecture of Cyclades Prefecture of Kerkyra Transaction Price(€)/Sqm Transaction Price(€)/Sqm Transaction Price(€)/Sqm

10th Percentile 105 10th Percentile 162 10th Percentile 140

50th Percentile 521 50th Percentile 684 50th Percentile 591

90th Percentile 1,308 90th Percentile 1,555 90th Percentile 2,012

0 500 1,000 1,500 2,000 0 200 400 600 800 1,000 1,200 1,400 0 500 1,000 1,500 2,000 2,500

Source: Ministry of Finance Source: Ministry of Finance Source Ministry of Finance

Delfi Partners | Real Estate Market Research | Private & Confidential | 16 | 6.10 Residential Assets Transactions (2018)

Transaction Price/sqm in selected prefectures across Greece. Data include both House/Apartment and Detached House asset sub-types. (2/2)

Prefecture of Evros Prefecture of Larisa Prefecture of Messinia Transaction Price (€)/Sqm Transaction Price (€)/Sqm Transaction Price (€)/Sqm

10th Percentile 65 10th Percentile 98 10th Percentile 82

50th Percentile 278 50th Percentile 345 50th Percentile 386

90th Percentile 834 90th Percentile 748 90th Percentile 1,171

0 200 400 600 800 1,000 0 100 200 300 400 500 600 700 800 0 200 400 600 800 1,000 1,200 1,400

Source: Ministry of Finance Source: Ministry of Finance Source: Ministry of Finance

Prefecture of Grevena Prefecture of Korinthia Prefecture of Drama Transaction Price (€)/Sqm Transaction Price (€)/Sqm Transaction Price (€)/Sqm

10th Percentile 56 10th Percentile 166 10th Percentile 47

50th Percentile 286 50th Percentile 464 50th Percentile 186

90th Percentile 613 90th Percentile 946 90th Percentile 638

0 100 200 300 400 500 600 700 0 200 400 600 800 1,000 0 100 200 300 400 500 600 700

Source: Ministry of Finance Source: Ministry of Finance Source: Ministry of Finance

Delfi Partners | Real Estate Market Research | Private & Confidential | 17 | 6.11 Auctions of Residential Assets E-auctions as of 11/2019 up by 53% compared to 2018, but success rate drops.

E- auctions platform was set up in November 2017 to facilitate auction of properties and reinvigorate the real estate market by attracting investor bid. Majority of auctioned properties ends up in banks.

Eauctions Monthly Breakdown 6000 5000 4000 3000 2000 1000 0

Total Listed Conducted Suspended Canceled Source: E-Auctions platform

Auctions Success Rate 0.90 0.80 0.69 0.70 0.60 • For the year of 2018 Eurobank reported 3,195 properties listed in 0.50 auctions, with 45% of them carried out successfully. • Alpha Bank listed 4,195 properties in auctions (9M2018). During 2018 0.40 Alpha Bank created a new unit to facilitate repossession and 0.30 Average of 0.65 management of existing portfolio. 0.20 • National bank of Greece auctioned 2,264 properties. 0.10 • Piraeus Bank carried out 3,269 auctions during 2018 and seeks to 0.00 increase them by 12% according to bank’s financial report notes. • All banks have their own platform to perform auctions electronically.

Source: E-Auctions platform Delfi Partners | Real Estate Market Research | Private & Confidential | 18 | 7.0 Greece Office Market After a long period of being roughly flat, Office Price index moves towards 2010 levels.

Demand for high-quality office spaces in the centre of Athens or in locations with parking spaces increases.

Office Price Index 2010=100 Office Rent Index 2010=100 82.0 80.6 76 75.5 78.9 80.0 75 73.7 78.0 76.5 74 73.3 72.9 72.7 76.0 74.0 73 71.7 71.6 71.5 74.0 72 71.2 70.9 71 71.4 70.9 71.1 71.0 71.2 71.2 71.0 72.0 71 70.0 70 68.0 69 66.0 68 2014 H1 2014H2 2015H1 2015H2 2016H1 2016H2 2017H1 2017H2 2018H1 2018H2 2019H1 2014 H1 2014H2 2015H1 2015H2 2016H1 2016H2 2017H1 2017H2 2018H1 2018H2 2019H1 Source: Bank of Greece Source: Bank of Greece

Office Prime Rent (€/Sqm) • Property and Facility Management is employed in office spaces to retrofit them and adapt them 26.0 27 to modern working environments. 25 • Projects that were suspended are resuming in support of the view that demand for office spaces 22.0 22.0 23 in central locations is increasing. However, new project pipeline is stagnant. 20.0 21 18.0 18.0 18.0 18.0 • Rent prices in high visibility areas, such as Kifisias Avenue and Syntagma, are recovering at 19 17.0 17.0 16.0 16.0 16.5 16.0 16.0 faster rate than remaining areas (see Chart) with the exception of assets in Mesogeion Avenue. 17 15.0 14.0 14.0 14.0 • Vacancy rates at prime CBD areas are below 2010 levels. 15 13.513.0 13.0 13.0 12.0 12.0 • The coronavirus impact in office spaces with regards to rents and supply is expected to be 13 11.5 11.0 11.0 11.5 10.0 10.0 10.5 10.0 11 severe. Rent leases are also likely to be affected with companies renting out either smaller 9 offices (in the scenario of increased employees working from home) or for a shorter time horizon 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 due to the uncertain impacts of the pandemic on the economy. CBD Kifisias Av. Sygrou Av. Mesogeion Av.

Source: DP Hellas Actual Transaction Data

Delfi Partners | Real Estate Market Research | Private & Confidential | 19 | 7.1 Greece Office Market Prime Yields compressing to levels below 7%.

Expectation of capital gains does not seem to bring transactions to a halt.

Office Prime Yields • Prime Yields in the last 6 years have compressed by nearly 250 bps. 9.500 9.0 • In 2019, drop in yields did not always hinder investors from engaging in transactions, 9.000 8.8 seeking to be compensated by future expected returns from capital gains. 8.6 8.3 • Due to the coronavirus pandemic there is heightened uncertainty on expected 8.500 capital gains from investments in offices. 8.0 7.9 8.000 • Uncertainty is also apparent on how lease contracts will adjust due to the apparent change in working conditions. 7.500 7.0 7.000 6.5 6.500

6.000 2013 2014 2015 2016 2017 2018 2019 2020 Office Market Transactions(2019) Source: DP Hellas Actual Transaction Data

• Trastor REIC - acquired 372 sqm, 3rd floor space at Othonos str, Athens - acquired 1,600 sqm office space and retail building in Kifisias Avenue, Office Market Supply - acquired 5,070 sqm office building in Mesogeion Avenue, Agia Paraskevi - acquired 3,386 sqm office building in • Dimand SA completed projects in Kalithea and Piraeus Port Plaza - acquired 4,000 sqm office building in Vrilisia • Noval’s Orbit building in Kifisias Avenue is under development • Interko REIC • New supply of offices is very limited - acquired and leased office building in Marousi with area of 3,589 sqm - acquired 838 sqm building in Kolonaki • Briq REIC - acquired 1,788 office building in Chalandri - acquired 767 sqm office space in Marousi - acquired 1,629 sqm building in Kolonaki

Source: DP Hellas Actual Transaction Data

Delfi Partners | Real Estate Market Research | Private & Confidential | 20 | 7.2 Greece Retail Market During 2019, Retail activity picked up in prime areas, while stabilizes in secondary retail areas across the country. Tourism industry has been a driver of growth in certain prime areas, such as Athens (Ermou str).

Retail Price Index Retail Rent Index 2010=100 2010=100 82 80.8 80 76.2 80 77.2 79.9 76.7 75 73.5 72.9 78 71.7 74.5 76 74.2 74 73.6 75.6 69.8 69.8 72.8 69.1 68.8 68.3 74 72.1 72.4 72.1 70 67.3 71.4 71.7 71.3 71.7 71.6 66.6 66.6 71.2 71.2 70.671.2 70.7 66 66.3 72 70.1 69.9 64.5 69.6 69.2 69.1 65 64.1 62.9 62.6 62.6 70 62.1 61.9 61.9 61.7 62.4 62.5 61.5 68 61.8 61.9 61.8 61.7 61.4 66 60 61.2 61.7 64 62 55 2014 H1 2014 H2 2015 H1 2015 H2 2016 H1 2016 H2 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1 2014 H1 2014 H2 2015 H1 2015 H2 2016 H1 2016 H2 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1

General Index Athens Index Thessaloniki Index General Index Athens Index Thessaloniki Index Source: Bank of Greece Source: Bank of Greece Retail Prime Rent High Street (€/sqm) 350.0 • Following a period of long compression, Retail Price Index gains in price along with 300.0 285.0 the recovery of the economy 300.0 280.0 250.0 250.0 245.0 • Rents on the other hand remain fairly constant in 2016 levels 230.0 250.0 230.0 220.0 200.0 200.0 210.0 • Household consumption is a strong driver of retail revenues. A recession caused by 180.0 180.0 180.0 180.0 200.0 170.0 165.0 170.0 the Covid-19 will impact retail revenues but it is also likely to disrupt the industry with 150.0 160.0 130.0 140.0 e-commerce gaining more ground 150.0 115.0 115.0 115.0 105.0 100.0 100.0 90.0 100.0 105.0 120.0 • The financial crisis has barely impacted rents in . Downward spiral in 150.0 90.0 80.0 80.0 85.0 85.0 90.0 90.0 100.0 110.0 95.0 prices was of a short duration with prices bouncing back to pre-crisis levels in 2016 100.0 80.0 90.0 100.0 50.0 and exceeding them in ensuing years • Highest drop in prices occurred in Kifisia. Rent prices in both Kolonaki and Kifisia are 0.0 roughly flat and below pre-crisis levels 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CBD-Ermou CBD-Kolonaki Kifisia Glyfada Source: DP Hellas Actual Transaction Data Delfi Partners | Real Estate Market Research | Private & Confidential | 21 | 7.3 Greece Retail Market Prime Yields compressing to levels below 8%.

Transactions are focused on prime retail areas, we do not see activity in shopping centers. Retail Prime Yields (%)

8 7.8 • Prime Yields in early 2019 have compressed to nearly 6% in Ermou str. 7.6 • Economic Sentiment Indicator, a good gauge of economy expectations, according to Eurostat has further increased in February 2020 to 113.2 from 7.5 7.2 109.5 in end-2019. In March 2020 ESI dropped to 109.4 (December 2019 7 levels) 6.9 7 • It is worth mentioning that during the period of 2015 – 2019: - Super Market retail trade has increased by 2.8% 6.5 6.5 - Department Stores retail trade has dropped by 11.3% 6.2 - Household Equipment retail trade has increased by 7.7% - FnB dropped by 11.4% 6 - Retail trade not in stores has increased by 25%

5.5 2014 2015 2016 2017 2018 2019 2020 Source: DP Hellas Actual Transaction Data Retail Trade Overall Index Retail Market Transactions (2019) 140.0 137.8 135.0 • Pangaea REIC 127.9 130.0 - acquired 1,608 sqm listed property in Mitropoleos str, Athens - acquired 736 sqm retail property in Athens 125.0 - acquired 2,525 sqm property in Ermou street 120.0 - acquired 7,000 sqm office and retail in Sygrou street 113.9 115.0 • Grivalia REIC 110.0 - acquired 4,457 sqm commercial building in Glyfada 104.1 103.0 102.9 • Trastor REIC 105.0 101.7 100.0 99.6 - acquired 90 sqm fully leased retail unit in Kifisia 97.9 98.2 100.0 - acquired 1,600 sqm office and retail in Chalandri 95.0 - acquired 700 sqm retail property in Chania 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: ELSTAT Delfi Partners | Real Estate Market Research | Private & Confidential | 22 | 7.4 Greece Industrial Market Prime Yields compressing to levels below 10%. General Index of Industrial Turnover exhibits increased volatility, driven predominantly by energy sector. We expect an increase in demand for logistic CRE assets. Sentiment Indicators plummet due to the pandemic.

Industrial Prime Yields(%) Industrial Turnover Y-o-Y % Change 12 2018-2019 11.5 30 20 11.15 20 14.4 15 10 9.8 11.310 11 10.75 0 5 -10 4.3 10.2 -20 0.2 -0.5 0 -30 -4.6 -5.8 -5 -7.7 -7.2 -8.0 10 9.75 -40 -8.2 -10

9 9 Energy Intermediate Goods Capital Goods Durable Goods Non Durable Goods General Index

8 Source: ELSTAT 2014 2015 2016 2017 2018 2019 General Index Change – Right Axis Source: DP Hellas Actual Transaction Data Sectors Change – Left Axis Industrial Prime Rent (€) /Sqm Industrial Sentiment Indicators Monthly Data 4.10 4.00 3.90 6 4.5 3.90 3.80 3.80 3.80 3.70 3.70 4 2.7 3.1 3.60 3.60 3.60 1.9 2 3.70 1.7 1.4 3.50 2 0.6 1 3.50 0 3.30 -2 3.10 3.00 3.00 3.00 3.00 -4 -5.6 2.90 Ag.Stefanos Aspropirgos Koropi Elefsina -6 2.70 2014 2015 2016 2017 2018 -8 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20

Source: Eurostat Source: DP Hellas Actual Transaction Data Delfi Partners | Real Estate Market Research | Private & Confidential | 23 | 7.4 Commercial Real Estate Transactions Ministry of Finance has recorded roughly 5,000 commercial real estate transactions with an average price of 746 €/ Sqm (2017 – 2018).

Transactions do not include industrial plot, industrial buildings and special use properties. Transaction price (€) /sqm ranges are presented for selected areas below.

Athens CRE Transaction Thessaloniki CRE Transaction Prefecture of Dodekanisa Price (€)/ Sqm Price (€)/ Sqm CRE Transaction Price (€)/ Sqm

10th Percentile 125 10th Percentile 123 10th Percentile 105

50th Percentile 476 50th Percentile 424 50th Percentile 535

90th Percentile 1,358 90th Percentile 1,020 90th Percentile 1,574

0 200 400 600 800 1,000 1,200 1,400 1,600 0 200 400 600 800 1,000 1,200 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

Source: Ministry of Finance Source: Ministry of Finance Source: Ministry of Finance Prefecture of Korinthia Prefecture of Piraeus Prefecture of Evvoia CRE Transaction Price (€)/Sqm CRE Transaction Price(€)/Sqm CRE Transaction Price(€)/Sqm

10th Percentile 153 10th Percentile 118 10th Percentile 100

50th Percentile 479 50th Percentile 395 50th Percentile 407

90th Percentile 957 90th Percentile 1,081 90th Percentile 991

0 200 400 600 800 1,000 1,200 0 200 400 600 800 1,000 1,200 0 200 400 600 800 1,000 1,200

Source: Ministry of Finance Source: Ministry of Finance Source: Ministry of Finance Delfi Partners | Real Estate Market Research | Private & Confidential | 24 | 8.0 Greece Infrastructure Projects and Real Estate Hellinikon Project, one of the largest investment projects in Greece, gains pulse

Greek Government pledged to complete the project, considering it as vital for the economy.

Project in a Glance

2 million sqm Metropolitan Park Total investment of 8 bn

10,000 jobs created during construction 600,000 sqm of common green areas and opens spaces 75,000 during operation

50 km of path network for pedestrians and cyclists Expected to attract 1 million visitors

Facilities will include a Mall, Marina, Sports Facilities, 2.4% contribution to GDP Seafront area with luxury residences and Luxury Resort

Source: The Hellinikon Project

Delfi Partners | Real Estate Market Research | Private & Confidential | 25 | 8.1 Greece Strategic Investments and Project Pipeline (2019) The pipeline focuses predominantly in the hotel industry and commercial real estate assets.

Ministry of Development has granted “Strategic Investment” Status to the following projects:

Killada Hills Itanos Gaia • Project Scope: Golf Resort • Project Scope: Hotel • Budget: 345 mn € • Budget: 268 mn € • Location: Hermioni, Atgolida • Location: Crete • Company: Dolphin Capital Investment • Company: Minoan Group

The following projects have been submitted for “Strategic Investment Status” approval:

Ithaca Odyssey Lentas Resort & Spa Cape Tholos Ithaca Resort • Project Scope: Hotel & residential components • Project Scope: Tourist complex (317 rooms) • Project Scope: 5* Hotel with marina • Project Scope: 5* Resort with golf and marina • Budget: 650 mn € • Budget: 209 mn € • Budget: 150 mn € • Budget: 150 mn € • Location: Ithaca • Location: Gortina,Heraklion Crete • Location: Gortina,Heraklion Crete • Location: Gortina,Heraklion Crete • Company: Smeder LTD • Company: Atese SA • Company: Amberland SA • Company: Agyia SA

Other projects in pipeline and notable developments include the following:

Scorpio Bay Mitsis Hotel Retail Mall Gazi Hotel Acquisition • Project Scope: Exclusive Club Resort (60 rooms) • Project Scope: Three 5* Hotels (225 rooms) • Project Scope: Redevelop Mall • Acquiring Co: Blackstone • Budget: 165 mn € • Budget: N/A • Budget: N/A • Target: Louis Group • Location: Scorpios • Location: Elia, Mykonos • Location: Gazi • Scope: 5 Hotels in Greece • Company: Mykinai SA • Company: Mitsis Hotel Group • Company: Hines (Joint Venture with NBG) • Consideration: 178.6 mn €

Delfi Partners | Real Estate Market Research | Private & Confidential | 26 | 10.0 Market Expectations Economic activity freezes during lockdown. RE Transactions come to a halt and price impact should be estimated in tandem with the prolongment of the pandemic and the fear of a second wave of lockdown in winter. In the end of 2019 Economic data supported the view of a recovering real estate market. Prices in residential and commercial real estate assets tagged along GDP growth and exogenous driven demand. Cash transactions showed that the market had still more to give.

Covid-19 impact on the economy according to economist expectations will certainly lead to a recession whose severity cannot be safely quantified. Recession rates estimate from 4% to 10%. To our opinion 10% should be the baseline. The impact of the pandemic spirals to global housing prices in an heterogeneous form. Recovery shape scenarios take more letter forms than U and V, with the impact on prices having ranges that show the level of the uncertainty. Inflation levels are expected to remain low. Fiscal and Monetary Policy mechanisms in the EU are in place, but political will is not strong yet.

Catalysts that can free up real estate market

Downside risks and opportunities Domestic demand and more specifically purchase ability with access to • Projections of a higher than expected recession and lack of monetary policy financing is expected to be muted during the pandemic. NPL reduction has tools to counter a prolonged recession been pushed back by banks at least until H2-2020. • Travel bans will affect hotels and occupancy rates • NPL reduction is key to freeing up capital. Not living up to NPL reduction goals set can limit domestic ability for additional purchase power in We expect disruptions in the office market due to increase in remote working • With regards to fiscal policy intervention economists debate on the potential and lease term durations. We expect corporations to lease in more flexible inflation risk terms with regards to space but also in duration. This should depend on the • While exiting from the pandemic, Greece has one more arsenal in attracting ability of employees to work from home at least until a vaccine is found. capital from abroad: The confidence and credibility it gained while countering Covid-19 • With house prices remaining even prior to Covid-19 breakout at levels below Demand for RE assets falls as buyers and sellers wait to see data on the peak, the market still remains an attractive candidate for capital allocation current status of the market. Opportunities however are still apparent and they could come in bargain. Delfi Partners | Real Estate Market Research | Private & Confidential | 27 | Delfi Partners & Company | Athens, Greece Research & Analytics Desk ▪ Greece Office: +30 2169009020 ▪ Cyprus Office: +357 22 000060 www.delfipartners.gr | delfipartners.gr/services/delfi-databank Legal Disclaimers

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The Information herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example purposes only. As between you and DP, you acknowledge that DP owns or has a license to all title and copyrights in and to the content provided in this presentation. All title and intellectual property rights in and to any licensed content provided in this presentation is the property of the respective content owners and are protected by applicable copyright or other intellectual property laws and treaties and subject to use restrictions under such laws or treaties. This information does not constitute an offer of, or an invitation by or on behalf of, any issuer to subscribe or purchase any investment and shall not form the basis of, nor may it accompany, nor form part of, any contract to acquire any investment in any jurisdiction, now or in the future. The distribution of the information may be restricted by law in certain jurisdictions and the information does not constitute an offer of, or any invitation by or on behalf of the issuer to offer or sell any investment in any jurisdiction. Accordingly, the information may not be distributed in any jurisdiction, except in accordance with the legal requirements applicable to such jurisdictions. Persons into whose possession the information comes are required by DP to inform themselves about and to observe any such restrictions. neither DP nor its affiliates accepts any liability to any persons or parties in relation to the distribution or possession of the information in or from any jurisdiction. The information is not intended for distribution to the public and may not be reproduced, redistributed or published and is strictly confidential.

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