Real Estate Survey

November 2008

2008 © Probitas Partners

Contents

Introduction ...... 1

The Private Equity Real Estate Fund Landscape ...... 2

Institutional Investor Survey of Real Estate Investing...... 3

Survey Findings: Overview...... 3

Profile of Respondents ...... 3

Geographies of Investor Interest ...... 7

Targeted Areas of Interest ...... 7

Structural Issues & Emerging Managers ...... 18

Greatest Fears ...... 21

Conclusion ...... 24

Funds Currently in or Coming to Market ...... 25 Introduction

Probitas Partners is a leading independent knowledge, innovation and solutions provider to private markets clients. It has three integrated global practices that include placement of alternative investment products, portfolio management and liquidity management. These services are offered by a team of employee owners dedicated to leveraging the firm’s vast knowledge and technical resources to provide the best results for its clients.

probity ¯¯˘ n. [from Latin probitas: good, proper, honest.] adherence to the highest principles, ideals and character.

On an ongoing basis, Probitas Partners offers research and investment tools on the alternative investment market as aides to its institutional investor and general partner clients. Probitas Partners compiles data from various trade and other sources and then vets and enhances that data via its team’s broad knowledge of the market. Also on an ongoing basis, Probitas Partners surveys institutional investors in order to determine more directly their perceptions of various aspects of the market; and the survey of real estate investors included here is part of that process. Included within this Real Estate Market Institutional Investor Survey is our listing of Real Estate and Hard Asset Funds In or Thought to Be Coming to Market over the Next 12 Months. (Investors more specifically interested in details on the infrastructure market should refer to ourInfrastructure Market Review & Institutional Investor Survey, just released during October 2008.) A few important user notes on the funds listing: • The list does not track funds smaller than $100 million or €75 million, as these are not often targeted by institutional investors; • Information is collected from various data sources, but dynamically and accurately tracking when funds are launched and when they are finally closed is a difficult business. We constantly interact with investors and other industry sources in an effort to keep the data updated, and Probitas Partners appreciates receiving any corrections or updates which will help keep this listing as up to date as possible; and • Probitas Partners relies upon its knowledge of the investment pace of previous funds, informal discussions with institutional investors and general partners, and its knowledge of emerging managers. Specifically, we do not seek confirmation of these estimates with general partners in order to avoid SEC public offering prohibitions. For the same reason, Probitas Partners does not include in this listing information on funds it is currently offering; qualified investors seeking information on Probitas Partners’ placed funds should contact Probitas Partners directly in order to have the most complete picture of all institutional funds currently in the market.

1 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. The Real Estate Fundraising are converging: there is increasing investor Landscape interest in international markets, with a noticeable shift in many large fund groups The fundraising market for private equity real from a North American to a Global focus. estate has expanded significantly over the last five years, as demonstrated by Chart I. The capital markets have become increasingly turbulent with issues in the U.S. sub-prime The growth of interest in fund investing residential market quickly developing into outside the U.S. is highlighted by a significant global issues of liquidity and recession. and increasing portion of funds raised The volatility of the public markets has globally being Euro-denominated (roughly caused many institutional investors to a quarter of the current year’s total). When experience portfolio allocation problems; the observed in combination with the recent rapid commitment pace to all areas of alternative fluctuations in currency values in the market, investment has begun to slow significantly, calculating global fundraising totals in a though the impact of these effects will not be single currency becomes difficult. However, fully evident until 2009. the trends in the various geographic markets

Chart I Global Real Estate Fundraising

$100 $93.1

$90

$76.5 $80 $76.0

$70

$60

$50 $42.3

$40 $ in billions $30

$20 $24.3

$10 $11.7

$0 2003 2004 2005 2006 2007 Q3 08

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 2 Institutional Investor Survey of Real Estate Investing

During October 2008, Probitas Partners conducted an online survey to gauge investor interest, opinions, and perspective on investing in real estate funds. We received responses from 100 senior investment executives from Public & Corporate Pension Plans, Fund-of-Funds Managers, Family Offices, Endowments & Foundations, Consultants & Advisors, Insurance Companies and other agencies. The survey was completed in the midst of the current turmoil in the capital markets and therefore may not fully reflect evolving investor opinion about what has become an increasingly difficult market.

Survey Findings: Overview to fund vehicles, reflecting concerns over alignment of interest. The following summarizes the top-line findings • Investors are interested in emerging from the survey on investor preferences, markets; however, they are concerned perspectives and practices: about the lack of experience of the • The largest concern of investors by far managers investing in these markets. is that credit problems in Western or mature markets will dramatically impact performance globally. Profile of Respondents • Investors are much more focused on The first series of questions in the survey opportunistic and value-added funds than created a profile of the respondents in order they are on core strategies. to provide context to the results. • In North America, interest in fund managers pursuing distressed strategies Respondents represented a wide range of has doubled, making it the leading area types of institutional investors including fund- of focus. of-funds managers, insurance companies, state and corporate pension plans, family • In Europe, interest in the United Kingdom offices, banks, endowments, and consultants has increased significantly since our last & advisers. Fund-of-funds managers led in survey, with interest in Germany and the responses at 21%, followed by endowments Nordic countries decreasing. at 16%. • In Asia, interest in India has fallen As noted in Chart III, the majority of noticeably while interest in China and respondents represented firms that are pan-Asian strategies has increased. headquartered in North America, with • As far as fund structure is concerned, there the balance of respondents from Western is a strongly renewed focus on the level Europe and Asia. It is important to note of general partner financial commitment that insurance companies constituted a

3 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Chart II Respondents by Investor Type “I represent a...”

25%

21% 20% 16% 14% 13% 15% 12%

8% 10%

5% 4% 4% 5% 3%

0% Fund-of- Endowment Family Insurance State Consultant Corporate Foundation Bank Other Funds Office Company Pension or Advisor Pension Manager Plan Plan

Source: Probitas Partners

Chart III Respondents by Location of Firm’s Headquarters “My firm is headquartered in...”

Asia 5% Middle East 2% Australia 5%

Western Europe 22%

North America 66%

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 4 much greater segment of the respondents over a third report that they will be increasing headquartered outside of North America, allocations. And while 6% reported that they along with fund-of-funds. will decrease their private equity allocations (an increase from no investors looking to There was significant diversity among decrease last year), private equity real estate respondents by size of allocation to real estate seems to be considered an integral segment private equity in 2009, as noted in Chart IV. of investment portfolios despite the ongoing Just over 40% of respondents replied that credit crisis. they would commit under $50 million dollars to real estate private equity in 2009, while The responses vary based on the geographic just under 17% of respondents intended to region of the respondents’ headquarters. commit $250 million dollars or more to the For Asian and Middle Eastern respondents, asset class. The respondents targeting the 64% were looking to increase allocations largest amounts for 2009 commitments to private equity real estate. On the other were based in Western Europe and hand, roughly 60% of Western European and North America. North American respondents were looking to keep their allocations the same, most likely As noted in Chart V, a substantial majority reflecting the fact that they have been active of respondents plan to keep their 2008 real investors in the sector for a longer time and estate allocations constant for 2009, while currently have large, seasoned portfolios.

Chart IV Private Equity Real Estate Allocation Targets “In 2009, we are looking to commit across all areas of private equity real estate...”

45% 40.4% 40%

35% 30.3%

30%

25%

20% 13.1%

10% 7.1% 5.1% 4.0% 5%

$0 < $50MM $50MM-$150MM $150MM-$250MM $250MM-$500MM $500MM-$1B > $1B

Source: Probitas Partners

5 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. There was wide diversity among respondents 19% this year have such allocations. On the about their real estate allocations as a other hand, 22% have an allocation of 13% percentage of their overall portfolios, and a and above dedicated to real estate, and general upward trend is apparent. Though nearly 50% have allocations of 10% or more last year 31% of respondents had real estate to the sector. allocations of 3% or less of their assets, only

Chart V 2009 Appetite for Private Equity Real Estate “In 2009, we anticipate...”

70% 55.6% 60%

50% 38.4% 40%

30%

20% 6.1% 10%

0% Increasing Our Targeted Decreasing Our Targeted Keeping the Same Private Equity Real Estate Private Equity Real Estate Private Equity Real Estate Commitments from 2008 Commitments from 2008 Commitments from 2008

Source: Probitas Partners

Chart VI Private Equity Real Estate Allocations “What is your private equity real estate allocation as a percentage of total assets?”

30% 26.1%

25% 21.7% 18.5% 19.6% 20%

14.1% 15%

10%

5%

0% 0%-3% 4%-6% 7%-9% 10%-12% 13% and Above

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 6 Geographies of Investor Interest The results show that a significant amount of capital will be devoted to real estate in North When reviewing geographic allocations, America, and to a lesser extent, Europe, Asia, it is important to note that generally and then globally-focused real estate funds. most investors surveyed are more heavily There is significant and growing interest in committed to their local markets. As putting smaller allocation percentages into comparatively few respondents to the survey Latin America, Central and Eastern Europe, came from the emerging and Asian markets, and other emerging markets. allocations to the emerging markets and Asia are somewhat lower on an overall basis, though these allocations also reflect that Targeted Areas of Interest these are newer markets for global investors. Also, as expected, a majority of the European- The next part of the survey was meant to based respondents have no current allocation determine investor attitudes toward the to North America as a result of FIRPTA and fundraising market and return expectations other tax and reporting-related issues. Tax for private equity real estate funds. As issues show up as a recurring theme when it expected, respondents were most heavily comes to vehicle structure or concerns about focused on opportunistic real estate and the market. value-added funds at the higher end of the

Chart VII Geographic Focus “For 2009, what percentage of your private equity real estate allocation do you expect to place in...?”

60

50

40

30

20

10

0 No Allocation 1%-25% 25%-50% 50%-75% 75% and Above

Global North America Europe Asia Latin America Central & Eastern Europe Other Emerging Markets

Source: Probitas Partners

7 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. risk/reward spectrum, while only 20% of The majority of respondents believe top the respondents are pursuing a core/core quartile Vintage 2009 private equity real plus strategy. There is slightly more interest estate IRRs will range between 15%-20% in core strategies amongst Asian & Middle for funds focusing on the North American Eastern respondents (at over 30%), though and European markets. On the whole, the opportunistic funds attract most interest in response curve was skewed towards higher all geographic markets. IRRs for Vintage 2009 funds. Respondents

Chart VIII Private Equity Real Estate: Strategies of Interest “What types of private equity real estate funds are you currently pursuing?”

100% 89.0% 90%

80% 69.2% 70%

60%

50%

40%

30% 19.8% 20%

10%

0% Core/Core Plus (8%-12%) Value Add (12%-16%) Opportunistic (16%+)

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 8 also have expectations of higher IRR ranges because they had not focused attention on in Asia, with the majority targeting IRRs in these sectors. the 20%-25% range, and 25% and higher for emerging market funds in light of a higher We decided to ask about performance expectation of risk. multiple expectations as well as IRR expectations for top-quartile opportunistic It is interesting to note that endowment funds. The results are detailed in Chart X. and foundation respondents to our survey Respondents tended to be bullish, with have lower IRR expectations than pension 44% of respondents believing that Vintage plans for opportunistic funds. A number of 2009 opportunistic funds would generate respondents had no particular expectations return multiples greater than 2x, while 48% for returns on the various emerging markets tended towards the 1.75x-2.0x range.

Chart IX Performance Expectations “For top quartile vintage 2009 opportunistic funds, I expect Net IRRs over their lives to be...”

45%

40%

35%

30%

25%

20%

15%

10%

5%

0% 25% or Higher 20%-25% 15%-20% 10%-15% Less than 10% No Expectation

Global North America Europe Asia Latin America Central & Eastern Europe Other Emerging Markets

Source: Probitas Partners

9 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Chart XI reflects respondents’ average 34% typically commit $10 million or less. commitment size to real estate funds. Over Unsurprisingly, the respondents who intend 40% of investors plan to commit between to commit $50 million or more to a single $10 million to $25 million to each fund, while fund are pension plans.

Chart X Performance Expectations “I would expect equity return multiples for opportunistic private equity real estate funds to range between...”

60%

48.4% 50%

40% 36.6%

30%

20%

7.5% 10% 6.5% 1.1% 0% 1.5x-1.75x 1.75x-2.0x 2.0x-2.5x 2.5x-3.0x 3.0x+

Source: Probitas Partners

Chart XI Average Commitments “Our average commitment to any private equity real estate fund is...”

40% 34.0% 35% 28.7% 30%

25%

20% 16.0% 15% 12.8%

10% 7.4%

5% 1.1% 0% $0-$10MM $10-$20MM $20-$25MM $25-$50MM $50-$100MM $100+MM

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 10 In the following question, we asked investors Closed-End Fund Index were used to a lesser what benchmarks they use to measure return extent. For Western European investors, flat for their overall real estate portfolio. On the absolute rates were the dominant response whole, NCREIF hurdles and flat absolute rates used by over 70% of respondents, while were used by the majority of respondents; responses in the “Other” category were quite public market benchmarks and the Townsend scattered and without a dominant trend.

Chart XII Portfolio Benchmarks “What benchmarks do you use for the return of your overall portfolio?”

45% 42.0%

40% 35.2% 35%

30% 25.0% 25%

20%

15% 12.5%

10% 5.7% 5%

0% NCREIF Flat Absolute Other Public Market Townsend Hurdles Rates Benchmarks Closed-End Fund Index

Source: Probitas Partners

11 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. In terms of selecting the most important only 2% of respondents are driven by the need fund drivers for sector target focus, 72% of to deploy significant amounts of capital. respondents reported no particular internal focus or direction aside from pursuing A dramatically increased number of investors, the “best funds” in the market. Fifty-three 22% (compared to 4% from last year), feel percent of survey respondents emphasize the need to expand outside home markets. maintaining established relationships with Access to co-investments did not seem to fund managers returning to market. play a major role in investment focus of This suggests that respondents are most survey respondents. Geographically, there interested in maintaining relationships that was a significant emphasis on portfolio grant them specialized access to positions diversification and the need to expand outside in popular funds or proprietary information of home markets by Asian investors, whereas about specific opportunities. A quarter of North American and European investors are respondents target funds that correspond more focused on maintaining established to their portfolio diversification needs, and relationships locally.

Chart XIII Drivers for Sector Target Focus “My sector focus in 2009 is being driven by...”

My Institution Will Pursue the Best Funds & Managers Available in the Market 71.7% Maintaining Established Relationships with Fund Managers Returning to Market this Year 53.3% My Institution’s Need to Diversify Its Real Estate Private Equity Portfolio 25.0%

Need to Expand Outside My Home Markets 21.7%

Investing in Emerging Markets 20.7%

Targeting Funds That Will Provide Access to Co-Investments 10.9%

Other 10.9%

My Strategic Focus on Joint Ventures & Direct Transaction 8.7% My Need to Deploy Significant Amounts of Capital Allocated to Private Equity Real Estate 2.2%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 12 As shown in Chart XIV, investors in North felt across the real estate market, there is America today are focused on Distressed continued interest shown in debt/mezzanine, Strategies (up to 59% from 31% last year), office, industrial, and multi-family strategies, the only sector to garner the interest of more with weaker interest in retail, hotel & leisure, than 30% of respondents. As credit and and narrowly-focused geographic strategies. capital market corrections continue to be

Chart XIV North American Investment Focus “In the North American market, my focii are...”

Distressed Strategies 59.1%

Debt/Mezzanine 29.5%

Office 28.4%

Industrial 14.8%

Multi-Family 13.6%

Other 9.1%

Retail 8.0%

Specific Geographic Sectors 6.8%

Hotel & Leisure 5.7%

I Don’t Invest in North America 5.7%

Environmentally Friendly Strategies 4.5%

I Only Invest in North America Through Global Funds 3.4%

0% 10% 20% 30% 40% 50% 60% 70%

Source: Probitas Partners

13 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. In the European market, the survey focused Kingdom ranked only fourth. Conversely, on geographic as opposed to sector interest. interest in Germany and the Nordic Region As detailed in Chart XV, the strongest area declined significantly from last year. There of focus was the United Kingdom (likely as was also strong interest in Pan-European a distressed opportunity) where 36% of and Eastern European funds and, as in the respondents are focused, a notable change previous survey, relatively little interest in from last year’s survey where the United Southern Europe.

Chart XV Europe Investment Focus “In the European market, my focii are...”

United Kingdom 36.4%

I Only Invest in Europe Through Pan-European Funds 29.5%

Eastern Europe 26.1%

Germany 21.6%

Central Europe 19.3%

Nordic Region 14.8%

France 14.8%

Spain 10.2%

I Don’t Invest in Europe 8.0%

Other 4.5%

Italy 0.0%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 14 China topped the list of most interesting pass India. Interest in real estate investing in Asian markets at 40% of the respondents, Southeast Asia, Singapore, Korea, Australia moving ahead of India which had topped and Vietnam trails significantly behind the last year’s list. Certain investors felt that top three countries in the region. Twenty too much money had been directed into percent of respondents invest in Asia only the Indian real estate market over the last through global funds, while 36% are focused several years, and pan-Asian and Japan- on pan-Asian funds. focused funds also moved up in the list to

Chart XVI Asian Investment Focus “In the Asian market, my focii are...”

45% 39.1% 40% 35.9% 35% 29.3% 30% 23.9% 25% 20.7% 20%

15% 13.0% 10.9% 9.8% 10% 7.6% 5.4% 4.3% 5% 1.1% 0% China Pan-Asian Japan India I Only I Don’t SE Asia Singapore Korea Australia Vietnam Other Funds Invest Invest in in Asia Asia Through Global Funds

Source: Probitas Partners

15 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Secondary transactions are relatively new to they are in the process of assessing and/ the private equity real estate fund market, or implementing a real estate secondary though there are an increasing number of program, while 7% actively invest in real estate real estate secondary fund specialists raising secondary funds and 4% purchase positions funds to address this market as it matures. directly in the market. In addition, 7% of The emergence of this secondary market is respondents have sold or are considering illustrated by the fact that 17% reply that selling positions from their own portfolios.

Chart XVII Secondary Investment Activity “In the private equity real estate secondary market...”

80% 71.1% 70%

60%

50%

40%

30%

20% 16.7%

10% 6.7% 6.7% 4.4%

0% We Are Not Active We Are in the We Actively Invest We Have Sold or Are We Actively Purchase in Secondaries Process of Assessing/ in Real Estate Considering a Sale of Real Estate Fund in Any Manner Implementing a Real Secondary Funds Real Estate Positions Positions in the Estate Secondary in the Secondary Secondary Market Investment Program Market for Portfolio Management Purposes

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 16 While the previous numbers are not developed. This forecast for increased surprising and reflect little change from activity mirrors the experience in the private last year, Chart XVIII shows a remarkably equity arena where the development of the increased awareness in the market as 45% secondary market over the past five years of respondents indicated that they may has been dramatic and reflects an earlier consider real estate secondaries at a later maturity of that sector. date or after their programs are more fully

Chart XVIII Reason for Lack of Secondary Investment Activity “For those that do not invest in the private equity real estate secondary market...”

50% 44.9% 45%

40%

35% 30.4%

30%

25%

20%

15% 13.0% 13.0%

10% 7.2% 4.3% 5%

0% We May Our Current We Do Not It is Not Within We Find the Other Consider Portfolio Allocation Believe the Our Investment Return Profile is Real Estate Serves Our Needs Market is Mandate Unattractive Secondary Currently Investing at Developed a Later Date Enough to After Our Warrant a Program is Specific Allocation More Fully Developed

Source: Probitas Partners

17 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Structural Issues & Emerging where the distribution of carry between the Managers senior professionals was the top ranked concern. Not surprisingly, the second ranked The next section of the survey focused on area of focus on this year’s survey was the various structural issues as well as the overall level of management fees, an issue interest of investors in taking on new fund that is also strongly linked to alignment of manager relationships. As summarized in interest. Chart XIX, survey respondents indicated that the most crucial structural feature of a There was also a concentration of concern fund is the level of general partner financial within the “Other” category on tax issues or commitment to the vehicle, with 77% of tax structures. Though not expressed in more respondents marking this as a primary area detail, these concerns are likely to be focused of focus -- the only issue to be noted by more on FIRPTA (for overseas investors) and UBTI than 50% of respondents. The issue is one issues that affect investments in U.S.-based that is directly linked to alignment of interest; funds and ECI issues impacting investors it represents a much greater area of focus for investing in European opportunities. respondents than it was on last year’s survey,

Chart XIX Preferred Investment Structures “The issues I focus on most as far as fund terms or structures are concerned are...”

Level of General Partner Financial Commitment to the Fund 76.7%

The Overall Level of Management Fees 48.9%

Distribution of Carried Interest Between the Senior Investment Professionals 42.2%

Carry Distribution Waterfalls 38.9%

Structure or Inclusion of a Key Man Provision 32.2%

Cap on Fund Size 23.3%

Sharing of Carry and/or Investment Decision Making With a Third Party Sponsor 12.2%

Other 10.0%

Structure or Inclusion of a No Fault Divorce Clause 8.9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 18 As detailed in Chart XX, a significant portion public stock valuations have exacerbated of respondents are anticipating investing with the “denominator effect,” causing certain new managers in the coming year. Seventy- investors to be overallocated to real estate. six percent of respondents projected one to As a practical matter, the amounts these four investments with new managers, with investors have to commit to both new 18% responding that they would invest in and existing fund manager relationships more than four new managers in the coming may be restricted, and the full impact of year. Only 8% felt that they would not invest those restrictions may not be reflected in in new managers at all. However, since the the survey. survey was completed, further declines in

Chart XX Anticipated Number of New Fund Managers “I anticipate investing with how many fund managers in 2009...”

80% 75.6%

70%

60%

50%

40%

30%

20% 16.7% 7.8% 10% 1.1% 0% 0 1 to 4 5 to 9 10 and Above

Source: Probitas Partners

19 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. When selecting new managers, respondents with new managers are heightened. Thus, it is are heavily focused on track record and team not surprising that respondents interested in strength as key due diligence matters. Indeed, new managers are looking for differentiated for any investor, the due diligence involved in niche strategies and exceptional returns that underwriting new managers is extensive given justify undertaking the lengthy diligence the risks associated with investing in funds process and the increased risk.

Chart XXI Key Characteristics of New Fund Managers “The key characteristics required to invest in a new manager are...”

90%

80.0% 80%

70%

60%

50.0% 50%

40% 32.2%

30% 25.6%

20%

7.4% 10% 6.7% 6.7%

0% Track Record Key Man Niche Terms Established Will Not Be Other and/or Team Strategy of Fund Fund Investing in Any Reputation New Managers in 2009

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 20 Finally, as far as investment vehicle structure Greatest Fears is concerned, although traditional investment fund vehicles are most common in the The survey concluded by asking investors market, 58% of respondents would consider about their greatest fears as we approach investments in a “club” structure limited to a 2009. Not surprisingly, two-thirds of handful of like-minded investors as opposed respondents were worried that credit to a standard fund with a broader limited problems in Western or mature markets partner base. Club deals are often preferred would dramatically impact performance. That by larger, more mature programs seeking to response was double that of the next greatest diversify or fill holes in their portfolio exposure, fear: cap rate compression. Interestingly, or when management teams at such entities though a number of investors had expressed have the experience and wherewithal to focus interest throughout the survey in various energies on more concentrated strategies. sectors of the emerging markets, one of the Often club deals bring the opportunity for fears that tied for the third greatest on the co-investment that again favors deeper list was the difficulty of finding quality and professional teams that can assess and act experienced managers in emerging markets. on such opportunities.

Chart XXII Club Deals “Would you consider investing in a club deal of 2-4 investors?”

70% 57.5% 60%

50% 42.5%

40%

30%

20%

10%

0% Yes No

Source: Probitas Partners

21 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Only 8% of respondents were concerned Lastly, a couple of interesting comments have that they were overallocated to the market been reprinted from the “Other” response due to the “denominator effect” — a result section: that would likely change if the survey were • The presumptuousness of fund managers administered today. versus the value they actually add.

• I am not concerned about the above, but concerned about what I don’t foresee.

Chart XXIII Greatest Fears “My Three Greatest Fears In the Private Equity Real Estate Market Are...”

Credit Problems in Western or Mature Markets 67.0% Will Dramatically Impact Performance Capitalization Rates Will Compress, Significantly Impacting 29.5% Existing Portfolio Valuations I Want Exposure to Emerging Markets But There Are Too Few Quality 23.9% or Experienced Managers in These Markets Fund Structures and Underlying Property Management Fees Are 23.9% Destroying Alignment of Interest Between Investors and Fund Managers Too Much Money Is Chasing Too Few Quality Managers/Funds 23.9%

Opportunistic Real Estate Is Most Effective As a Niche Strategy and 20.5% Too Much Money Is Being Raised Overall in the Sector Equity is The “New Debt,” Which May 20.5% Lead to a Dilution of Return Potential Mega Funds are Flooding the Market With Capital; They 12.5% May Not Be Able Effectively to Put the Money to Work Currency Risk Will Impact Valuations 12.5% of My Foreign Real Estate Portfolio Other 10.2%

Access to Top Performing Managers is Becoming More Difficult 8.0%

Access to Managers With Operational Capabilities is Limited 8.0%

I am Overallocated to Private Equity Real Estate 8.0% (Predominantly Due to the “Denominator Effect”) My Real Estate Allocation is Too Small to Have a 2.3% Significant Impact on Overall Performance The Number of Funds I Have in My Portfolio is Too 2.3% Large for My Firm Effectively to Monitor Increased Fund Sizes Are Limiting My Access to Co-Investments 2.3%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Source: Probitas Partners

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 22 23 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Conclusion

Private equity real estate continues to be a significant sector of the institutional alternative investment market even amidst the current credit crisis. Investors continue to both deal with and capitalize on an environment in turmoil vis-à-vis their portfolio exposure.

On the basis of our survey and ongoing discussions with investors, we have reached several conclusions: • The dominant concern of investors is that performance of legacy portfolios will be hit hard by credit problems and cap rate compression. • Investors are increasingly pursuing distressed strategies in order to take advantage of the current market. • There is a strongly renewed focus on alignment issues, especially on the level of general partner financial commitment to fund vehicles and the overall level of management fees when negotiating terms, reflecting increased investor concerns over alignment of interest. • Though investors are interested in emerging markets in order to increase diversification and capitalize on expected growth, they continue to be concerned about the lack of experience of the managers investing in these markets.

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 24 Real Estate Funds in Market or Thought Coming to Market Over the Next 12 Months As of November 2008

Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Global Funds Dune Real Estate Fund II/ 1,250 727 In Market U.S./Europe N/A 2004 New York Dune Capital Management Diversified DLJ Real Estate Capital Partners IV/ 2,500 1,150 In Market Global www.credit-suisse.com 1996 New York; DLJ Real Estate Partners Diversified London; Zurich; Tokyo HDG Mansur International Property 200 N/A In Market Europe/U.S. www.hdgmansur.com 1982 London Fund/HDG Mansur Diversified Hines Global Fund/Hines 1,500 N/A Coming Global www.hines.com 1957 Houston to Market Diversified ING Real Estate Global 1,500 N/A In Market Global www.ingrealestate.com N/A London Opportunistic Fund/ING Real Estate Diversified Investment Management Morgan Stanley Real Estate Fund VII 10,000 8,000 In Market Global www.morganstanley.com/realestate 1969 New York Global/Morgan Stanley Diversified OCM Real Estate Opportunities 1,000 692 In Market Global www.oaktreecapital.com N/A Los Angeles Fund IV/Oak Capital Management Diversified Starwood Global Opportunities 2,000 1,475 In Market Global www.starwoodcapital.com 1991 Greenwich, CT Fund VIII/Starwood Capital Group Opportunistic Starwood Hospitality Fund II/ 2,000 900 In Market Global www.starwoodcapital.com 1991 Greenwich, CT Starwood Capital Group Hospitality Walton Street Real Estate Fund VI/ 2,500 1,547 In Market Global www.waltonst.com 1994 Chicago Walton Street Capital Diversified WCP Real Estate Fund 2/ 500 500 In Market Global www.westportcp.com 2006 Westport, CT; Westport Capital Partners Distressed El Segundo, CA; Mumbai

North American Funds AEW Partners VI/ 750 686 In Market U.S. Special www.aew.com 1981 Boston AEW Capital Management Situations AEW Senior Housing Investors/ 500 N/A In Market U.S. Senior www.aew.com 1981 Boston AEW Capital Management Housing Alcion Real Estate Partners II/ 500 152 In Market U.S. www.alcionventures.com 2005 Boston Alcion Ventures Opportunistic APCA Property Fund II/ 150 52 In Market U.S. Diversified www.ashforthparadigm.com 1896 Boston Ashforth Paradigm Capital Advisors

25 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

AREA Investment Fund VI/AREA 1,000 700 In Market U.S. Diversified www.apollorealestate.com 1993 New York

Arden Real Estate I/Arden Group 125 N/A In Market North America www.ardengroup.com 1989 Philadelphia Distressed Hospitality Bay Area Smart Growth Fund II/ 125 N/A In Market California www.kennedywilson.com 1988 San Francisco Kennedy Wilson Diversified BCOM Ullico Southern Fund/ 350 N/A In Market U.S. Sunbelt www.ullico.com 1925 Washington, Union Labor Life Diversified D.C. Beacon Capital Strategic Partners VI/ 6,000 4,000 In Market U.S. Office www.beaconcapital.com 1998 Boston Beacon Capital Partners Berkshire Multifamily Value Fund II/ 600 334 In Market U.S. Multifamily www.berkshireapartments.com 1969 Boston Berkshire Property Advisors Berman Enterprises Opportunity Fund/ 500 N/A In Market N.Y.C./ www.giulianipartners.com 2004 New York Giuliani Partners & Berman Enterprises Washington, D.C. Diversified Big Rock Partners Opportunity Fund II/ 350 N/A In Market U.S. Diversified www.bigrockpartners.com 2006 Los Angeles; Big Rock Partners Chicago; Seattle BlueStone Real Estate Capital/ 200 N/A In Market U.S. www.bluestonecap.com 1998 Philadelphia; BlueStone Real Estate Capital Opportunistic Palm Beach Bond Companies Sustainability Fund/ 350 N/A In Market U.S. Sustainable www.bondcompanies.com 1987 Los Angeles Bond Companies Brandywine Opportunities Fund/ 500 N/A In Market U.S. Diversified www.brandywine-financial.com 1972 Chadds Ford, PA Brandywine Financial Services Bruin Fund/ 250 N/A In Market U.S. Diversified www.tnpre.com 2007 Irvine, CA Thompson National Properties Bryanston Real Estate Opportunity 250 150 In Market U.S. Distressed www.bryanstonrp.com 2004 Chicago Fund II/Bryanston Realty Partners Cabot Industrial Value Fund III/ 700 450 In Market U.S. Industrial www.cabotprop.com 1986 Boston Cabot Properties Cantor Real Estate Fund/ Cantor 325 N/A In Market U.S. Diversified www.cantor.com 2008 New York Fitzgerald Canyon Johnson Urban Communities 1,250 600 In Market U.S. Diversified www.cjuf.com 2002 Beverly Hills, CA Fund/Canyon-Johnson Urban Funds Centerline Opportunity Partners/ 1,000 N/A In Market U.S. Diversified www.centerline.com 1999 New York Centerline Capital Group Cerberus Institutional Real Estate 3,000 890 In Market U.S. Distressed www.cerberuscapital.com 1994 New York; Partners II/Cerberus Real Estate Los Angeles Capital Management Ceres Urban Realty Fund/ 250 100 In Market U.S. Diversified www.blakelystern.com 2003 New York BlakelyStern Investment Advisors CityView LA Urban Land Fund I/ 100 N/A In Market California www.americancityvista.com N/A San Antonio; American CityVista & Saybrook Diversified Santa Monica Capital

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 26 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Colony Realty Partners III/ 233 N/A In Market U.S. Diversified www.colonyrealtypartners.com 1991 Irvine, CA; Colony Realty Partners Boston; New York Consortium 4/Bernstein Companies 100 N/A In Market Mid-Atlantic www.thebernsteincompanies.com 1933 Washington, Office D.C. Cornerstone Hotel Income and Equity 600 300 In Market U.S. Hospitality www.cornerstoneadvisors.com 1994 Hartford Fund II/Cornerstone Real Estate Advisors Covenant Apartment Fund VI/ 300 159 In Market U.S. Multifamily www.covenantcapgroup.com 2001 Nashville, TN Covenant Capital Group Coventry Real Estate Fund III/ 400 330 In Market U.S. Retail www.coventryadvisors.com 1998 New York Coventry Real Estate Advisors Crocker Partners IV/Crocker Partners 250 N/A In Market U.S. Diversified www.crockerpartners.com 2005 Boca Raton, FL

Debartolo Community Retail Fund/ 400 N/A In Market U.S. Retail www.debartolodevelopment.com N/A Tampa, FL Debartolo Development E2M Value-Added Fund II/ 600 N/A In Market U.S. Diversified www.e2mpartners.com 2004 Dallas E2M Partners ECM Income & Growth Fund III/ 250 100 In Market U.S. Diversified www.ecm-funds.com 1989 Chicago Equity Capital Management Equastone Value Fund 3/Equastone 350 172 In Market U.S. Diversified www.equastone.com 1993 San Diego

Fremont Strategic Property Partners III/ 750 500 In Market U.S. Real Estate www.fremontrealtycapital.com 1997 San Francisco Fremont Realty Capital Operating Companies Guardian Realty Fund III/ 500 114 In Market Washington, www.guardian-realty.com N/A Bethesda, MD Guardian Realty Investors D.C. Office Greater Washington Life Sciences 300 N/A In Market Greater www.jbg.com 1960 Chevy Chase, Fund/JBG Real Estate Services Washington D.C. MD Area Grosvenor New York Multifamily Fund/ 300 N/A In Market New York www.grosvenor.com N/A Philadelphia Grosvenor Investment Management Multifamily Guardian Realty Fund III/ 500 113 In Market U.S. Diversified www.guardianrealty.com N/A Bethesda, MD Guardian Realty Investors H/2 Special Opportunities/ 500 N/A In Market U.S. Special N/A 2008 Stamford, CT H/2 Capital Partners Opportunities Haveland Property Investors/ 200 N/A In Market U.S. Office & www.havelandprop.com 2005 Stamford, CT Haveland Estates Multifamily HDG Mansur Opportunity Fund I/ 350 N/A In Market SE & SW U.S. www.hdgmansur.com 1982 London HDG Mansur Diversified Heitman Strategic Finance Partners/ 300 N/A In Market U.S. Diversified www.heitman.com 1966 Chicago Heitman Real Estate Investment Management Helios Real Estate Fund I/Adler Group 100 N/A In Market U.S. Commercial www.adlergroup.com N/A Miami

High Performance Green Fund/ 275 N/A In Market U.S. Diversified www.tpgre.com 1996 Los Angeles Thomas Properties Group

27 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

High Street Real Estate Fund III/ 350 400 In Market U.S. Diversified www.hsequity.com 2002 Boston High Street Equity Advisors Hudson Realty Capital V/ 500 350 In Market U.S. Diversified www.hudsonrealtycapital.com 2003 New York; Hudson Realty Capital Portland, ME; Miami Hunter Chase Real Estate Opportunity 250 N/A In Market U.S. Diversified www.hunterchase.com 2001 Irving, TX; Fund/Hunter Chase & Co. Carlsbad, CA Hutensky Capital Partners II/ 150 N/A In Market U.S. Shopping www.hutenskygroup.com 1979 Hartford Hutensky Group Center Integral Urban Fund I/ 150 N/A In Market U.S. Diversified www.integral-online.com 1993 Atlanta The Integral Group Integrated Capital Hospitality Fund/ 200 N/A In Market N. America www.integrated-capital.com 2003 Buffalo, NY Integrated Capital Diversified JP Morgan Urban Renaissance 500 N/A In Market U.S. Urban www.jpmorgan.com N/A New York Property Fund/JP Morgan Asset Management Kelton Real Estate/Kelton Companies 100 N/A In Market U.S. Diversified www.keltoncompanies.com 2008 Phoenix, AZ

Kennedy Wilson Property III/ 1,000 N/A In Market U.S./Japan www.kennedywilson.com 1988 Beverly Hills, CA Kennedy Wilson Diversified KMF Senior Generation Fund/ 300 N/A In Market U.S. Senior www.kmfseniorhousing.com N/A Chicago KMF Senior Housing Investors Housing L&B Diversified Strategy Partners/ 400 N/A In Market U.S. Diversified www.lbgroup.com 1981 Dallas L&B Realty Advisors L&B Medical Properties Partners II/ 100 N/A In Market U.S. Medical www.lbgroup.com 1981 Dallas L&B Realty Advisors Office Lexin AmTrust Real Estate Partners II/ 150 75 Coming U.S. Diversified www.lexincapital.com 2004 New York Lexin Capital to Market Lincoln Multifamily Acquisition Fund/ 250 N/A In Market U.S. Multifamily www.lincolnproperty.com 1965 Dallas Lincoln Property Lowe Hospitality Investment Partners II/ 350 266 In Market U.S. Hospitality www.loweenterprises.com 1972 Los Angeles; Lowe Enterprise Investors Denver; Irvine, CA Lowe Structured Investment Fund/ 150 N/A In Market U.S. Distressed www.loweenterprises.com 1972 Los Angeles; Lowe Enterprises Investors Denver; Irvine, CA LRG Capital Real Estate Partners N/A N/A In Market California www.lrgcapital.com N/A Larkspur, CA Fund I/LRG Capital Real Estate Commercial Ventures Lubert-Adler Real Estate Fund VI/ 2,600 1,700 In Market N. America www.lubertadler.com 1997 Philadelphia Lubert-Adler Diversified MacFarlane Urban Real Estate 1,500 1,000 In Market U.S. Urban www.macfarlanepartners.com 1987 San Francisco Fund III/MacFarlane Partners MacFarlane Special Situations Fund I/ 300 N/A In Market U.S. Distressed www.macfarlan.com 1984 Dallas MacFarlane Capital Partners Metzler U.S. Real Estate Fund II/ 300 N/A In Market U.S. Diversified www.metzlerna.com 1976 Seattle Metzler Realty Advisors

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 28 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

MGRA Genesis Value Fund II/ N/A 150 Coming Southern U.S. www.mayfieldgentry.com 2003 Detroit MayfieldGentry Realty Advisors to Market Diversified Miller Global Fund VI/ 400 290 In Market U.S. Diversified www.millerglobal.com 1996 Denver; Miller Global Properties New York Morrison Street Fund III/ 100 26 In Market U.S. Diversified www.nbsrecapital.com 2003 Portland NBS Real Estate Capital Next Block Medical Fund II/ 500 N/A In Market U.S. Diversified www.valenciacm.com 2004 Dallas Valencia Capital Management Omega Opportunity Fund I/Omega 1,000 N/A In Market U.S. Distressed www.omegafinancial.com N/A Miami Commercial Finance Corporation Onex Real Estate Partners II/ 600 230 In Market U.S. Diversified www.onex.com 2005 New York Onex Real Estate Partners Page Mill Properties 3/ 500 N/A In Market U.S. Diversified www.pagemill.com 1993 Palo Alto Page Mill Properties Palisades Regional Investment Fund II/ 200 42 In Market U.S. Diversified www.palfi.net 1995 Fort Lee, NJ Palisades Financial Parmenter Realty Fund IV/ 500 245 In Market Southern U.S. www.parmco.com 1989 Miami Parmenter Realty Partners Office Perseus Realty Partners II/ 200 210 In Market U.S. Diversified www.perseusrealtypartners.com 2005 Washington, Perseus Realty Partners D.C. Phillips Edison Shopping Center 500 N/A In Market U.S. Shopping www.phillipsedison.com 1990 Baltimore Fund IV/Phillips Edison & Co. Center Prescott GNLP Corporate Partners/ 200 N/A In Market U.S. Office www.prescott-gnlp.com 2007 New York Prescott GNLP Capital Prudential Senior Housing Partners IV/ 500 300 In Market U.S. Senior www.prudential.com/prei N/A Parsippany, NJ Prudential Real Estate Investors Housing Ram Realty Partners II/ 350 N/A In Market SE U.S. www.ramrealestate.com N/A Palm Beach Ram Development Company Diversified Gardens, FL Residential Income and Value-Added 375 150 In Market U.S. Residential www.thetuckermangroup.com 1998 Rye Brook, NY Fund II/Tuckerman Group Rockwood Capital Real Estate Partners 1,000 1,094 In Market U.S. Diversified www.rockwoodcap.com 1995 San Francisco Fund VIII/Rockwood Capital RP Retail Entrepreneurial Fund III/ 400 50 In Market U.S. Retail www.rprp.com N/A Beverly Hills, CA RP Realty Partners RXR RexCorp Real Estate Opportunity 800 N/A In Market New York Area www.rexcorprealty.com N/A Uniondale, NY Fund II/RXR Rexcorp Realty Diversified Schuster Realty Partners I/ 100 N/A In Market U.S. Diversified www.theschustergroup.com 1989 Seattle Schuster Group Sentinel Multifamily Value-Added 350 N/A In Market Southern U.S. www.sentinelcorp.com 1969 New York Fund/Sentinel Real Estate Corporation Multifamily Sentinel Realty Partners VII/ 250 141 Coming U.S. Diversified www.sentinelcorp.com 1969 New York Sentinel Real Estate Corporation to Market SKB Real Estate Investors 2/ 500 161 In Market U.S. Diversified www.skbcos.com 1993 Portland ScanlanKemperBard Companies

29 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Southwest Next Fund I/ 500 N/A In Market SW U.S. www.southwestnext.com 2008 Phoenix, AZ Southwest Next Capital Management Distressed Residential Square Mile Partners III/ 850 561 In Market U.S. Distressed www.squaremilecapital.com 2006 Greenwich, CT Square Mile Partners STAG Investments V/ 400 50 In Market U.S. Diversified www.stagcapital.com 2003 Boston STAG Capital Partners Stockbridge Real Estate Fund III/ 2,500 1,000 In Market U.S. Diversified www.sbfund.com 2003 San Francisco Stockbridge Capital Partners Strategic Partners Urban Fund/ 100 N/A In Market U.S. inner city www.strategiccapitalpartners.net 2005 Chicago Strategic Capital Partners Strategic Partners Value Enhancement 500 250 In Market U.S. Diversified www.strategiccapitalpartners.net 2005 Chicago Fund II/Strategic Capital Partners Sunbelt Residential Distress Fund/ 250 N/A In Market U.S. Distressed www.aaventures.com 1991 Boca Raton, FL Askenazy & Agus Ventures TA Associates Realty Fund IX/ 1,750 1,500 In Market U.S. Diversified www.tarealty.com N/A Boston TA Associates Realty TIAA-CREF U.S. Real Estate Fund I/ 300 N/A In Market U.S. Diversified www.tcasset.com 2004 New York TIAA-CREF TriContinental Fund X/ CAD 200 N/A In Market Canadian www.triconcapital.com 1988 Toronto Tricon Capital Group Diversified TriGate Property Partners/ 350 N/A In Market U.S. Diversified www.trigatecapital.com N/A Dallas TriGate Capital Trinity Restoration Fund/ 300 N/A In Market U.S. www.trinity-ip.com 2007 Stockton, CA Trinity Investment Partners Environmentally Responsible Western National Realty Fund II/ 300 50 In Market U.S. Diversified www.wng.com 1981 Irvine, CA Western National Realty Advisors

European Funds Aberdeen European Shopping Property € 525 N/A In Market Europe Retail www.aberdeenpropertyinvestors. 1986 London Fund/Aberdeen Property Investors com Aberdeen Property Fund France & € 500 N/A In Market S. Europe Retail www.aberdeenpropertyinvestors. 1986 London Southern Europe/ com Aberdeen Property Investors Aerium Fairfield Special Opportunities € 500 N/A In Market Europe www.aerium.com 2003 London Fund/Aerium & Fairfield Greenwich Diversified Group AIG European Real Estate Partners II/ € 500 € 180 In Market Europe www.aiginvestments.com 1987 London; Moscow AIG Global Real Estate Diversified Alternative Property Income Venture/ € 400 N/A In Market France www.axaprivateequity.com 1996 Paris AXA Real Estate Investment Managers Diversified Ariosto/Aedes Real Estate € 375 N/A In Market Italy Diversified www.aedes-immobilaire.com N/A Milan; Rome

Blackstone RE Partners Europe III/ € 3,000 € 1,550 In Market Europe www.blackstone.com 1992 London; Paris Blackstone Group Diversified

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 30 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Bluehouse Accession Property III/ € 250 € 150 In Market SE & E. Europe www.bluehousecapital.com 2005 Athens Bluehouse Capital Diversified Bouwfonds Germany Residential Fund/ € 300 N/A In Market Germany www.bouwfonds.com 1946 Netherlands Bouwfonds Asset Management Residential BPT Hansa Lux/Baltic Property Trust € 300 N/A In Market Germany www.balticpropertytrust.com 2001 Copenhagen Commercial CA Immo New Europe/ € 400 N/A In Market C. & E. Europe www.caimmointernational.com 1999 Vienna CA Immo International Commercial CapMan Hotels RE/ € 400 N/A In Market Scandinavia www.capman.fi 2005 Helsinki CapMan Real Estate Hospitality CEE Residential Fund/ € 200 N/A In Market C. & E. Europe www.realkapital.no N/A Oslo Realkapital Partners Residential Central and Eastern Europe Real € 150 N/A In Market C. & E. Europe www.faisalfinance.com 1982 Geneva Estate Fund/Faisal Private Bank Diversified Real Estate Cordea Savills German Retail Fund/ € 1,000 N/A In Market German Retail www.cordeasavills.com 2005 London Cordea Savills Cordea Savills UK Property Ventures I € 400 N/A In Market U.K. Property www.cordeasavills.com 2005 London Fund/Cordea Savills Core Italian Property Fund/ € 200 N/A In Market Italy Diversified www.axaprivateequity.com 1996 Paris AXA Real Estate Investment Managers Corestate German Commercial/ € 500 N/A In Market German www.corestate-capital.ch 2006 Zurich Corestate Capital Commercial DIB Real Estate Fund/ 500 N/A In Market Europe www.dib.ae 1975 Dubai Dubai Islamic Bank Diversified Domani Sereno Real Estate Fund/ € 150 N/A In Market Italy Senior www.fondamentasgr.com 1998 Milan Fondamenta Housing ECM International Real Estate Fund/ 250 N/A In Market Europe www.ecm-funds.com 1989 Chicago; Bern Equity Capital Management Diversified Endurance Health Care/ € 200 N/A In Market Germany www.endurancefund.com 2005 Luxembourg; Orco Property Group Healthcare Prague; Paris Endurance Logistics and Light € 200 N/A In Market C. & E. Europe www.endurancefund.com 2005 Luxembourg; Industrial/Orco Property Group Industrial Prague; Paris Endurance Office II/ € 200 € 150 In Market C. Europe Office www.endurancefund.com 2005 Luxembourg; Orco Property Group Prague; Paris European Hotel Ventures/ € 450 N/A In Market European www.axa-reim.com 1999 Paris AXA Real Estate Investment Managers Hospitality European Logistics Income Venture/ € 300 N/A In Market Europe www.axa-reim.com 1999 Paris AXA Real Estate Investment Managers Warehouses European Retail Income Venture 2/ € 500 € 700 In Market Europe Retail www.axa-reim.com 1999 Paris AXA Real Estate Investment Managers Evans Randall Opportunity Fund/ £1,000 N/A In Market U.K. Commercial www.evansrandall.com 1993 London Evans Randall Fondo Azzurro/ € 250 N/A In Market Italy Retail www.henderson.com 1934 London Henderson Global Investors

31 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Forum European Realty Income III/ € 500 € 251 In Market European www.forumpartners.com 2002 London Forum Partners Opportunistic Frogmore Real Estate Partners II/ £400 £330 In Market U.K. Diversified www.frogmorefund.com 2001 London Frogmore Real Estate Partners German Aktiv Property Fund/ € 370 N/A In Market Germany www.teesland.com N/A London; Berlin; Teesland iOG Diversified Frankfurt German Retail Investment Property € 300 N/A In Market Germany www.morleyfm.com 2004 London Fund/Morley Fund Management Diversified German Shopping Centre Fund/ € 1,200 N/A In Market German Retail www.henderson.com/property 1934 London; Henderson Global Investors Frankfurt Global Emerging Property Fund II/ € 350 € 150 In Market S. Europe www.globalfinance.gr 1991 Athens Global Finance Diversified Griffin Property Finance Fund/ € 250 N/A Coming Poland N/A N/A Warsaw Griffin Property Finance to Market Diversified Gulf Atlantic Real Estate II/ N/A N/A In Market U.K. www.v2.gfhouse.com 1999 Bahrain Gulf Finance House Commercial, Sha'riah Compliant H1 Hotelfund/H1 Hotelentwicklungs € 275 N/A In Market C. & E. Europe www.h1hotelfund.com 2007 Vienna Hospitality Heitman European Industrial Property € 200 N/A In Market Europe Industrial www.heitman.com 1966 Chicago Partners/Heitman Heitman European Property € 600 N/A In Market C. & E. Europe www.heitman.com 1966 Chicago Partners VI/Heitman Diversified Hexagone/Aviva Morley Property € 210 N/A In Market Europe www.avivainvestors.co.uk 1968 London Funds Management Diversified Iberia/Norfin € 200 N/A In Market Iberia Diversified www.norfin.eu 1999 Lisbon

IMO Pan-Iberian Retail/ € 200 N/A In Market Iberia Diversified www.imorendimento.com 1992 Porto, Portugal Imorendimento ING Property Fund Eastern and € 400 N/A In Market C. & E. Europe www.ingim.com N/A The Hague Central Europe/ Diversified ING Investment Advisors IVG European Core+Office/ € 250 N/A In Market W. Europe Office www.ivg.de 1916 Bonn IVG Immobilien JP Morgan Greater Europe € 500 N/A In Market Europe www.jpmorgan.com 1895 London Opportunistic Fund/ Diversified JP Morgan Asset Management Kenmore Europe Fund/ £400 N/A In Market Europe www.kenmore.co.uk 1986 Glasgow; Kenmore Property Group Diversified Edinburgh Kenmore French Regional Office Fund/ € 100 N/A In Market French Office www.kenmore.co.uk 1986 Glasgow; Kenmore Property Group Edinburgh LaSalle European Ventures III/ € 1,250 € 335 In Market Europe www.lasalle.com 1978 Chicago; Paris LaSalle Investment Management Diversified LaSalle UK Ventures II/ £400 £240 In Market U.K. Diversified www.lasalle.com 1978 Chicago; Paris LaSalle Investment Management

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 32 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

LogAxes/ € 158 N/A In Market C. & E. Europe www.morleyfm.com 2004 London Morley Fund Management Property Diversified Logistis III/AEW Europe € 350 € 218 In Market Europe Logistics www.aeweurope.com N/A Paris; London

Mesa West Real Estate Income II/ 400 150 In Market U.S. Mezzanine www.mesawestcapital.com N/A Los Angeles Mesa West Capital Meyer Bergman Eastern Europe € 600 N/A In Market Europe www.meyerbergman.com 1970 London; Paris; Retail Fund/Meyer Bergman Diversified Berlin Moor Park Real Estate Fund III/ € 1,500 N/A In Market W. Europe www.moorparkcapital.com 2005 London; Moor Park Capital Diversified Oststeinbek, Germany Mosaic Central and Eastern € 200 € 100 In Market C. & E. Europe www.mosaicpropertyllp.com 2005 London; European II/Mosaic Property Diversified Budapest NIBC European Real Estate Fund I/ N/A N/A Coming W. Europe www.nibcapital.com N/A The Hague NIBC to Market Diversified Nordic Aktiv Fund II/Teesland IOG € 150 € 300 In Market Nordic Region www.teesland.com 2004 London; Retail Copenhagen; Stockholm; Malmo Orion European Real Estate Fund III/ € 650 € 476 In Market Europe www.orioncapman.com 1999 London Orion Capital Managers Diversified Parc d'Activites/Valad Property Group € 500 N/A In Market France Industrial www.valad.com.au 1995 Sydney; London

Poteza Real Estate Fund/ € 150 N/A In Market Eastern/ www.poteza.si N/A Lubljana, Poteza Equity Management Central Europe Slovenia Diversified Pradera Central & Eastern Fund/ € 400 N/A In Market Central/ www.pradera.com 1999 London; Madrid; Pradera - AM Eastern Europe Milan; Athens Diversified Pradera European Retail Fund II/ € 400 € 500 In Market S. Europe Retail www.pradera.com 1999 London; Madrid; Pradera - AM Milan; Athens Realkapital European Opportunity II/ € 250 N/A In Market Europe www.realkapital.no N/A Oslo Realkapital Partners Diversified Realstar European Capital I/ € 300 N/A In Market Europe www.realstargroup.com 1974 Toronto Realstar Group Diversified Rynda en Primeur II/ N/A € 140 Coming France www.ryndaproperty.com 2005 Paris Rynda Property Investors to Market Diversified SGAM AI France Property Fund/ € 250 N/A In Market France www.sgam-ai.com 1999 Paris SGAM Real Estate Diversified Sierra Portugal Fund/Sonae Sierra € 300 N/A In Market Portugal www.sonaesierra.com 1989 Lisbon Shopping Center St Wenceslas Property Fund/ € 350 N/A In Market C. Europe www.hunterpropertymanagement. 1999 Edinburgh Hunter Property Fund Management Diversified co.uk Symmetry II Fund/aAim Group £200 £200 In Market Europe www.aaim.com 2008 London Commercial Tellesma Fund/Tellesma £1,000 N/A In Market U.K. N/A 2008 London Sustainability

33 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

The Sava Fund/Chayton Capital € 150 € 115 Coming S.E. Europe www.chaytoncapital.com N/A Bucharest; Sofia; to Market Diversified London Tritax Polska No. 1 Fund/Tritax Group € 92 N/A In Market Poland www.tritax.co.uk 1995 London Diversified UK Actively Managed Property € 250 N/A In Market U.K. Diversified www.protegorealestate.com 2004 London Shopping Fund/ Protego Real Estate Investors Valartis Real Estate Opportunities € 200 N/A In Market Europe www.valartis.ch 2006 Zurich Income Fund/Valartis Group Diversified Valartis Residential Healthcare Fund/ € 125 N/A In Market Europe Medical www.valartis.ch 2006 Zurich Valartis Group Weinberg Real Estate Partners I/ € 150 N/A In Market France www.weinbergcapital.com 2005 Paris Weinberg Capital Partners Diversified West Balkan Real Estate Fund/ N/A N/A In Market E. Europe www.illyriacapital.com 2007 Kastel Novi, Illyria Capital Diversified Croatia

Asia Funds aAIM India Real Estate Fund/ 2000 N/A In Market India Diversified www.aaim.com 2003 London aAIM Group Actis India Real Estate Fund/ 300 N/A In Market India Diversified www.act.is 1948 London; Cairo; Actis International Beijing; Mumbai Aetos Capital Asia III/Aetos Capital 2,500 2,200 In Market Asia Diversified www.aetoscapital.com 1999 New York; Tokyo; Hong Kong AMP Select Property Portfolio III/ AUD 300 200 AUD In Market Australia www.ampcapital.com.au N/A Sydney AMP Capital Investors Ashington Development Fund III/ AUD 200 80 AUD In Market Australia www.ashingtongroup.com.au 1999 Sydney Ashington Capital Diversified Asia Pacific Property Fund/ £105 N/A In Market Asia/Australia www.morleyfm.co.uk N/A London Morley Fund Management Property Diversified Australia Opportunity Business Space SGD 500 N/A In market Australia Office www.ascendas.com 2001 Singapore Fund/Ascendas Banyan Tree Fund Indochina/ 400 N/A In Market Vietnam www.banyantree.com 1984 Singapore Banyan Tree Holdings Diversified Banyan Tree Fund China/ 700 N/A Coming China Diversified www.banyantree.com 1984 Singapore Banyan Tree Holdings to Market Capital Asia Partners Real Estate JPY N/A In Market Asia Diversified www.capserv.com 1998 Tokyo Fund/Capital Realty 150,000 Capmark Asia Real Estate Partners/ 750 N/A In Market Asia Diversified www.capmark.com 1999 San Mateo, Capmark Financial Group CA; Shanghai; Hyderabad; Tokyo; Taipei Carlyle Asia Real Estate Fund II/ 1,000 410 In Market Asia Diversified www.carlyle.com 1987 Washington, The Carlyle Group D.C.; Beijing CholaLand Fund I/CholaLand Advisers 100 N/A In Market Malaysia N/A 2008 Malaysia Diversified

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 34 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

CITIC Capital China Real Estate 500 N/A In Market China Diversified www.citiccapital.com 2002 Hong Kong Investment Fund III/ CITIC Capital Holdings - Real Estate Colony Asia Investors II/ 500 151 Coming Asia Diversified www.colonyinc.com 1991 Los Angeles; Colony Capital to Market Seoul; Shanghai; Hong Kong; Taipei; Tokyo Cordea Nichani Indian Opportunities I/ 200 N/A In Market India Diversified www.cordeasavills.com N/A Maharastra Cordea Savills & Nichani Group CPI Capital Partners Asia Pacific II/ 1,500 1,291 In Market Asia Diversified www.citigrouppropertyinvestors.com N/A New York Citi Property Investors CR Al Rajhi China Real Estate Growth 500 N/A In Market China Diversified www.harvestcapital.com.hk N/A Hong Kong Fund I/Harvest Capital Partners DaVinci Japan Real Estate Partners V/ 3,500 N/A In Market Japan Diversified www.davinci-advisors.com N/A Tokyo KK DaVinci Advisors DHFL Fund/ 250 N/A In Market India Residential www.dhfl.com 1984 Mumbai Dewan Housing Finance Duet India Hotels/Duet Private Equity 200 N/A In Market India Hospitality www.duetgroup.com 2005 London

Duet Japan Special Situations Fund/ 300 N/A In Market Japan Diversified www.duetgroup.net 2002 London Duet Private Equity Enterprise Fund/Pacific Star Group 1,000 N/A In Market Asia Diversified www.pacificstargrp.com 2000 Singapore

Fortress Asia Realty Fund/ 1,000 N/A In Market Asia Diversified www.fortressinv.com 1998 Hong Kong; Fortress Investment Group Shanghai; Tokyo; New York Forum Asia Realty Income Fund III/ 1,000 792 Coming Asia Diversified www.forumpartners.com 2002 Beijing Forum Partners to Market Fudo Capital II/ 750 430 In Market Asia Diversified www.clsacapital.com/fudo 2004 Hong Kong CLSA Capital Partners - Fudo Capital IL&FS Milestone Fund/IL&FS 255 N/A In Market India Diversified www.ilfsindia.com N/A Mumbai

Indiareit Offshore Fund II/ 600 200 In Market India Diversified www.indiareit.com 2006 Mumbai Indiareit Fund Advisors Indochina Land Holdings 3/ 500 265 In Market Vietnam www.indochinacapital.com 1999 Ho Chi Minh Indochina Capital Diversified City; Hanoi; Danang Indospace Logistics Parks/RealTerm 385 N/A In Market India Industrial www.realterm.com 1990 Mumbai Global & Future Capital Holdings ING Real Estate Asia Retail Fund/ING 600 N/A Coming Asia www.ingrealestate.com 1996 Hong Kong; Real Estate Investment Management to Market Supermarkets Beijing; Seoul ING Real Estate China Opportunity 700 600 Coming China Diversified www.ingrealestate.com 1996 Hong Kong; Fund II/ING Real Estate Investment to Market Beijing; Seoul Management ING Real Estate China Residential 700 350 Coming China www.ingrealestate.com 1996 Hong Kong; Fund II/ING Real Estate Investment to Market Residential Beijing; Seoul Management

35 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

ING Real Estate Japan Property 910 N/A Open- Japan Diversified www.ingrealestate.com 1996 Hong Kong; Fund/ING Real Estate Investment Ended Beijing; Seoul; Management ISG China Real Estate Fund/ 100 N/A In Market China Diversified www.isgfn.com 2002 Shanghai; ISG Capital Management New York Japan Value Added Fund III/ JPY N/A In Market Japan Diversified www.rreef.com N/A New York RREEF Real Estate 30,000 KBC Japan Property Fund/ € 350 N/A In Market Japan Diversified www.bkbcam.com 2000 Dublin; London; KBC Asset Management New York Kotak India Real Estate Fund II/ 350 160 In Market India Diversified www.kotak.com 2005 Mumbai Kotak Mahindra Investments Limetree Capital Partners II/ 500 200 In Market Emerging www.limetreecapital.com 2007 Hong Kong LimeTree Capital Partners Beachfront Mapletree India-China Fund/ 1,500 N/A In Market Asia Diversified www.mapletree.com.sg N/A Singapore; Mapletree Investments Shanghai Mekong Brahmaputra Clean 100 N/A In Market Asia www.dragoncapital.com 1994 Ho Chi Minh; Development Fund/Dragon Capital Environmentally Hanoi; Bath, Responsible U.K. Milestone Domestic Scheme II/ INR N/A In Market India Diversified www.milestonecapital.in 2007 Mumbai Milestone Capital 5,000 Millennium Spire Fund II/ 300 N/A In Market India Diversified www.millenniumglobal.com 1994 New Delhi; Millennium Spire Asset Management Singapore; New York Ostara China Fund/ 400 N/A In Market China Shopping www.ajiapartners.com 2002 Hong Kong; Ajia Partners Centers Tokyo; Seoul; Beijing Pacific Alliance China Land Fund/ 1,000 N/A Coming China Diversified www.pacific-alliance.com 2002 Hong Kong Pacific Alliance Group to Market Pacific Star Arrow Vietnam Fund/ 340 N/A In Market Vietnam www.pacificstargrp.com 2000 Singapore Pacific Star Holdings Diversified Pacific Star Asia Fund Select Concept/ 2,000 N/A In Market Asia Value-add www.pacificstargrp.com 2000 Singapore Pacific Star Holdings Pradera China Retail Fund/ 250 N/A In Market China Retail www.pradera.com 1999 London; Athens; Pradera AM Istanbul; Milan; Prague Protego Qudos Vietnam Property 200 N/A In Market Vietnam www.protegorealestate.com 2004 London; Fund/Protego Real Estate Investors Residential Singapore Raffles City China Fund/ 1,000 N/A In Market China www.capitaland.com 2000 Singapore; Hong Capitaland Hospitality Kong; London Real Estate Capital Partners Asia II/ 400 221 In Market Asia Diversified N/A 2008 Singapore Real Estate Capital Partners Asia Red Fort Real Estate India Fund II/ 550 350 In Market India Diversified www.redfortcapital.com 2006 New Delhi; Red Fort Capital Mumbai Rutley Indian Property/ 500 N/A In Market India Diversified www.rutleycapitalpartners.com 2005 London; Rutley Capital Partners Mumbai Saffron Real Estate India Fund/ 500 N/A In Market India Diversified www.saffronadvisors.com 2005 Mumbai Saffron Asset Advisors

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 36 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Secured Capital Japan Residential 1,250 758 In Market Asia Diversified www.securedcapitalco.jp 2006 Tokyo Fund IV/Secured Capital Japan SGAM AI Japan Property Fund/SGAM € 200 N/A In Market Japan Diversified www.sgam-ai.com N/A Paris Alternative Investments Real Estate Standard Chartered Istithmar Asia 750 N/A In Market Asia Diversified www.standardchartered.com 1969 Singapore RE Opportunities Fund/Standard Chartered Istithmar RE Management Tishman Speyer GSC China Fund/ 500 N/A In Market China Diversified www.tishmanspeyer.com 1978 New York; Tishman Speyer Beijing; Shanghai Tishman Speyer India Fund/ 1,000 350 In Market India Diversified www.tishmanspeyer.com 1978 New York; Tishman Speyer Chennai Triangle Real Estate India Fund/ 500 N/A In Market India Retail www.omigpi.com 1845 Cape Town Old Mutual Investment Group Property Investments Trikona India Real Estate Fund/ 500 N/A In Market India Diversified www.trikonacapital.com 2006 New York Trikona Capital Triseas Korea Property Fund II/ 600 210 In Market Korea Diversified www.dorancapital.com 2002 Seoul Doran Capital Partners Trump Organization India Fund/ 1,000 N/A In Market India Luxury www.trump.com 1980 New York Trump Organization UBS Gemdale China Real Estate Fund/ 300 N/A In Market China Diversified www.ubs.com/realestate N/A Beijing; UBS Realty Investors Guangzhou; Shanghai UBS K Rajeha Corp. India Real Estate 500 N/A In Market India Diversified www.ubs.com/realestate N/A Mumbai Fund/UBS Realty Investors Unitech International Realty/ 500 N/A In Market India Diversified www.unitechgroup.com 1974 Haryana, India Unitech Realty Urban Infrastructure Opportunity 1,000 50,000 In Market India Diversified www.ril.com 1993 Mumbai Fund II/Reliance Industries INR Vietnam Property Fund/PRUPIM 500 N/A In Market Vietnam www.prupim.com N/A London Diversified Vinaland Fund I/Vinacapital N/A N/A Coming Vietnam www.vinacapital.com 2003 Ho Chi Minh to Market Diversified City; Hanoi; Hong Kong Walton Street Capital India Fund I/ 1,000 N/A In Market India Diversified www.waltonst.com 1994 Chicago Walton Street Capital

Latin America

Americas Real Estate Opportunity 500 N/A In Market Latin America www.falconreal.com 1991 New York Fund/Falcon Real Estate Diversified Carlyle Latin America Real Estate 425 N/A In Market Latin America www.carlyle.com 1987 Washington, Partners/The Carlyle Group Diversified D.C.; Mexico City; Sao Paolo

37 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

JER Latin America I/JER Partners 750 N/A In Market Latin America www.jer.com 1980 Maclean, VA; Diversified Sao Paolo LaSalle Mexico Fund/ 500 N/A In Market Mexico www.lasalle.com 1978 Chicago; LaSalle Investment Management Diversified Mexico City Latam Residential Fund/ 1,000 N/A In Market Mexico www.pramericarei.com N/A Parsippany, NJ Pramerica Real Estate Investors Hospitality Paladin Realty Latin America 500 200 In Market Latin America www.paladinreit.com 1995 Los Angeles Investors III/Paladin Realty Diversified Patria Brazil Real Estate Fund II/ 400 N/A In Market Brazil Diversified ww.patriainvestimentos.com.br 1988 Sao Paolo Patria Investimentos PLA Retail Fund I/ 425 N/A In Market Mexico Retail www.prudential.com/prei 1970 Parsippany, NJ Prudential Real Estate Investors Vision Brazil Real Estate 250 N/A In Market Brazil Diversified www.visionbrazil.com N/A Sao Paolo Opportunities I/Brazil Real Estate Opportunities Manager and Moore Capital Management Walton Street Mexico Fund I/ 350 N/A In Market Mexico www.waltonst.com 1995 Chicago Walton Street Capital Diversified

Middle East/North Africa DIB Real Estate Fund/ 500 N/A In Market Middle East www.dib.ae 1975 Dubai Dubai Islamic Bank Region Easy Property Investment Fund/ 100 N/A In Market Middle East www.easypropertygroup.com N/A Dubai Easy Property Group Region Global GCC Real Estate Fund II/ 500 100 In Market GCC Diversified www.globalinv.net N/A Safat, Kuwait Global Investment House Hospitality Development Fund/ 300 N/A In Market GCC Hospitality www.adih.ae 2005 Abu Dhabi Abu Dhabi Investment House, Ithmaar Bank & Gulf Finance House Lewis Charles Abu Dhabi Property 100 N/A In Market Abu Dhabi/ www.lewischarles.com N/A London Fund/Lewis Charles Dubai Diversified Markaz Real Estate Opportunities 200 N/A In Market MENA Region www.markaz.com 1974 Safat, Kuwait Fund/Kuwait Financial Centre Real Estate Nauerz & Noell Advanced Property € 2,000 N/A In Market Abu Dhabi/ www.nauerz-noell.de 2000 Frankfurt Fund/Nauerz & Noell Dubai Diversified SGAM Almak Development/SGAM 100 N/A Coming Morocco www.sgam-ai.com N/A Paris Real Estate Investment Management to Market Diversified SHUAA Hospitality Fund I/ 500 N/A In Market Saudi Arabia www.shuaacapital.com 1979 Dubai Shuaa Capital Hospitality Siraj Hospitality & Tourism Fund/ SAR N/A In Market GCC Diversified www.sirajcapital.com 2006 Dubai; Riyadh Siraj Capital 1,000 TNI Real Estate Development Fund/ 200 100 In Market GCC Diversified www.tni.ae 1995 Abu Dhabi; The National Investor Dubai

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 38 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Other Emerging Markets

Amstar Global Property Fund II/ 350 340 In Market Emerging www.amstarglobal.com 2007 Hamilton, Amstar Global Partners Markets Bermuda Diversified Aberdeen Property Fund Russia/ € 500 N/A In Market Russia www.aberdeenpropertyinvestors. 1986 Copenhagen; Aberdeen Property Investors Diversified com St. Petersburg ACCEPT B.V./AKRON Group 300 N/A In Market E. Europe www.akron-group.com N/A Vienna Diversified Amstar Ukraine Property Fund I/ € 250 N/A In Market Ukraine www.amstareurope.com 2007 Kiev Amstar Europe Diversified Capital Alliance Property Investment 479 N/A In Market W. Africa www.aca-web.com 1997 Lagos Company/Capital Alliance Real Estate Diversified Capitalworks Real Estate Fund/ 500 N/A In Market South Africa www.capitalworksip.com 2008 Benmore, South Capitalworks Investment Partners Africa Duet Golden Horn/Duet Private Equity 150 N/A In Market Turkey www.duetgroup.net N/A London, UK Diversified East Capital Russian Property Fund/ € 200 N/A In Market Russia Retail www.eastcapital.com N/A Stockholm; East Capital Moscow; Paris EPG East Euro Asia Property Fund/ 300 N/A In Market E. Europe www.acteeum.com 2006 Netherlands ACTEEUM Group Diversified Hansa Baltic Real Estate Fund/ € 100 N/A In Market Baltic Region www.hansa.ee/funds 1994 Riga, Latvia Hansa Investment Funds Diversified Jensen Russian Real Estate Fund 2/ 350 101 In Market Russia www.jensen.ru 1991 St. Petersburg Jensen Group Diversified Kenmore/Watan Real Estate Fund/ N/A N/A Coming GCC Diversifed www.kenmore.co.uk 1986 Dubai; London Kenmore Property Group & Watan to Market Investments MIL Equity Partners Eastern Europe/ 250 N/A In Market C. & E. Europe www.eifunds.com N/A Boston; EquityInvest Diversified Budapest Paladin Realty Eurasia Investors/ 300 N/A In Market Turkey www.paladinreit.com 1995 Los Angeles Paladin Realty Diversified PIK Real Estate Fund/ 1,000 N/A In Market Russia www.pik-capital.ru N/A Moscow PIK Capital Partners Diversified Rutley Capital East African Property 300 N/A In Market E. Africa www.rutleycapitalpartners.com 2005 Nairobi Fund/Knight Frank & ICEA Asset Diversified Management South Africa Workforce Housing Fund/ 280 N/A In Market S. Africa www.intlhousingsolutions.com N/A Johannesburg; International Housing Solutions Residential Baltimore; London; Boston UFG Real Estate Fund II/ 300 130 In Market Russia www.ufgam.com 1997 Moscow UFG Asset Management Diversified

39 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Mezzanine and Debt Funds

AREA European Commercial Property 1,000 N/A In Market Europe Debt www.apollorealestate.com 1993 New York Debt Fund/AREA Basalt Capital CMBS Fund/ 500 N/A In Market U.S. Debt www.basaltcapital.com 2008 Chicago Basalt Capital BlackRock Carbon Capital III/ 750 380 In Market U.S. Mezzanine www.blackrock.com 1998 New York BlackRock Realty BlackRock Mortgage Investors Fund/ 2,000 N/A In Market U.S. Debt www.blackrock.com 1998 New York BlackRock Realty Blackstone Real Estate Special 1,000 N/A In Market U.S. Mezzanine www.blackstone.com 1992 New York; Situations Fund/Blackstone Real Estate Chicago; Advisors Los Angeles Duet European Real Estate Debt Fund/ € 300 N/A In Market Europe Debt www.duetgroup.net 2002 London Duet Private Equity Fillmore West Fund/ 1,000 420 In Market U.S. Debt and www.fillmorecap.com 2004 San Francisco; Fillmore Capital Partners Mezzanine Worthington, OH FSI Credit Opportunity Fund/ 1,000 N/A In Market U.S. Distressed www.fsicapital.com 1995 New York; Capitaline Hill Partners Cincinnati Goldman Sachs Real Estate Mezzanine 2,500 N/A In Market U.S. Debt www.goldmansachs.com 1996 New York Partners/Goldman Sachs Guggenheim Structured Real Estate 1,500 875 In Market U.S. Debt www.guggenheimrealestate.com 2001 New York Fund IV/Guggenheim Real Estate Hillenbrand Global Mortgage Fund/ 750 N/A In Market Global Debt www.hillenbrandpartners.com 1995 Chicago; Hillenbrand Partners Auburn, AL ING Clarion Debt Opportunity 1,000 500 In Market U.S. Debt www.ingclarion.com N/A New York Fund III/ING Clarion Investcorp Real Estate Credit Fund/ 1,000 N/A In Market U.S. Debt www.investcorp.com 1982 Bahrain Investcorp LoanCore Capital Fund I/LoanCore 3,000 N/A In Market U.S. Debt N/A 2008 Greenwich, CT Capital & DivcoWest Properties Lowe Real Estate Income and Growth 200 201 In Market U.S. Mezzanine www.loweenterprises.com 1972 Los Angeles; Partners II/Lowe Enterprises Investors Denver; Irvine, CA LNR Archetype Real Estate Debt Fund/ N/A N/A In Market U.S. Debt www.lnrcpg.com 1997 Newport Beach; LNR Commercial Property Group Miami Beach NYLIM Real Estate Mezzanine III/ 500 N/A In Market U.S. Debt www.nylimrealestate.com N/A New York NY Life Investment Real Estate OWS Mortgage Opportunity Master 500 N/A In Market U.S. Debt N/A 2008 New York Fund/One William Street Capital Ponte Capital/Infinity Funding Group 1,000 N/A In Market U.S. Debt www.infinityfundsgroup.com 1993 Bohemia, NY

PREI Mezzanine Fund/ 500 N/A In Market U.S. Mezzanine www.pramericarei.com N/A Parsippany, NJ Pramerica Real Estate Investors

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 40 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

RCG Longview Debt Fund IV/ 700 N/A In Market U.S. Debt www.rcglongview.com 1999 New York Ramius Capital Group Selene Residential Mortgage 1,000 N/A In Market U.S. Debt N/A 2008 Uniondale, NY Opportunity Fund/ Selene Investment Partners Starwood Debt Fund II/ 1,000 N/A In Market U.S. Diversified www.starwoodcapital.com 1991 Greenwich, CT Starwood Capital Group Sterling American Property VI/ 700 610 In Market U.S. Debt www.sterlingamerican.com 1991 New York Sterling American Property TCW Credit Opportunities Fund/ 3,000 N/A In Market U.S. Debt www.tcw.com 1971 Los Angeles TCW Real Estate Transwestern Mezzanine Realty 500 300 In Market U.S. Mezzanine www.transinvestco.com 1996 Chicago Partners III/Transwestern Investment Company Tremont Special Opportunity Debt 300 N/A In Market U.S. Debt www.tremontcapital.com 2000 Boston; Fund/Tremont Realty Capital Hartford; New York; Chicago; Annapolis; Newport Beach True North High Yield Investment 500 110 In Market U.S. Distressed www.tninvestors.com 2004 White Plains, NY Fund II/True North Management and Mezzanine Group Wilshire Income Fund/Wilshire 100 N/A In Market California www.wilshirefp.com 2008 Los Angeles Finance Partners Bridge Loans

Secondaries Belveron Real Estate Partners Fund/ 200 N/A In Market Real Estate www.belveronpartners.com 2006 San Francisco Belveron Real Estate Partners Secondaries CS Strategic Partners IV RE/ 420 300 In Market Real Estate www.credit-suisse.com N/A New York Credit Suisse Secondaries Landmark Real Estate Fund VI/ 750 369 Coming Real Estate www.landmarkpartners.com 1989 Simsbury, CT; Landmark Partners to Market Secondaries Boston Madison Harbor Secondary Real 150 N/A In Market Real Estate www.madison-harbor.com N/A New York Estate /Madison Harbor Secondaries

Infrastructure aAIM Infrastructure Fund/ £2,000 N/A In Market United Kingdom www.aaim.com 2004 London aAIM Infrastructure ABN AMRO Global Infrastructure € 2,000 € 1,100 In Market Global www.capital.abnamro.com 1994 Amsterdam; Fund II/ABN Amro Diversified London Actis Infrastructure Fund II/Actis 1,000 N/A In Market Asia and Africa www.act.is 2004 London

ADIC IL&FS Middle East 1,000 N/A In Market MENA www.adic.ae 2006 Abu Dhabi Infrastructure/Abu Dhabi Investment Company

41 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

ADIC-UBS Infrastructure Fund/ 600 N/A In Market MENA www.ubs.com 2002 Zurich UBS Global Asset Management Alterna Core Capital Asset Fund/ 1,000 N/A In Market U.S. Diversified www.alternacapital.com 2007 Westport, CT Alterna Capital AmKonzen Water Infrastructure 320 N/A In Market Asia Water www.konzengroup.com 2008 Singapore Fund/AmKonzen Water Investments Management Ampere Equity Fund/Evelop € 500 N/A In Market W. Europe www.evelop.com N/A Utrecht Diversified Antin Infrastructure Partenrs Fund I/ € 1000 N/A In Market Europe N/A 2007 Paris Antin Infrastructure Partners & BNP Diversified PAM Group Asian Giants Infrastructure Fund/ 750 N/A In Market Asia Diversified www.ampcapital.com.au 1998 Sydney AMP Capital Investors Atherstone India Invest Infrastructure 1,000 N/A Coming India Diversified www.aii-group.com N/A Geneva Fund/Atherstone India invest to Market Axis Infrastructure Fund/Axis Bank 500 N/A In Market India Diversified www.axisbank.com 1994 Mumbai

Baer Capital Infrastructure and Real 500 N/A Coming India Diversified www.baercapital.com 2006 Dubai Estate/Baer Capital Partners to Market Bunyah GCC Infrastructure Fund 150 N/A In Market MENA www.instratacapital.com 2007 Manama

Challenger Mitsui Emerging Markets 1,200 N/A In Market Global www.challenger.com.au 2008 Sydney; Tokyo Infrastructure Fund/Challenger Diversified Financial Services & Mitsui & Co. Citi Infrastructure Investors/Citigroup 3,000 N/A In Market U.S./Europe www.citigroupai.com 2007 New York Diversified Central American Mezzanine 150 N/A In Market C. American www.empglobal.com 2005 Washington, Infrastructure Fund/EMP Global Diversified D.C. CVC/Vineburg Infrastructure Fund/ € 2,000 N/A Coming Europe www.cvc.com 1981 London; Paris; CVC Capital Partners to Market Diversified Luxembourg; Brussels; Milan Darby Mexico Infrastructure Fund/ 200 N/A In Market Mexico www.darbyoverseas.com 1994 Washington, Darby Overseas Investments Diversified D.C. DIF Infrastructure Fund/ 500 N/A In Market Middle East www.dif.eu 2005 Schipol, the Dubai Investment Bank Diversified Netherlands Emerald Infrastructure Development € 750 N/A In Market U.S. and U.K. N/A 1994 Belfast Fund/Emerald Development Managers Equiitx Fund I/Equitix £125 N/A In Market United Kingdom www.equitix.co.uk 2007 London

Eredene Capital India Infrastructure 400 N/A In Market India www.eredene.com 2005 London Fund/Eredene Capital Fondi Italiani Per Le Infrastrutture/ € 2,000 N/A In Market Italy Focused www.f2isgr.it 2007 Milan F2i SGR GS European Infrastructure Fund/ € 3,000 N/A Coming Europe www.gs.com/pe 2006 New York; Goldman Sachs to Market Diversified London

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 42 Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

GS Infrastructure Partners II/ 7,500 N/A In Market N. America, www.gs.com/pe 2006 New York; Goldman Sachs Europe London Diversified Gulf One Infrastructure Fund I/ 2,000 N/A In Market GCC Diversified www.gulf1bank.com 2006 Bahrain Gulf One Bank HBG Infrastructure/HBG Holdings 200 N/A In Market India/Pakistan www.hbgholdings.com N/A Dubai Diversified Henderson Infrastructure III/ £600 £584 Coming Europe www.hendersonprivatecapital.com 1985 London Henderson Equity Partners to Market Diversified India Infrastructure Advantage Fund/ 1,000 N/A In Market India Diversified www.icicibank.com N/A Mumbai ICICI Bank IDFC Private Equity Fund II/ 1,250 440 In Market India Diversified www.idfc.com 2004 Mumbai IDFC Private Equity IFC InfraVentures/International 100 N/A In Market Emerging www.ifc.org/funds 1956 Washington, Finance Corporation Diversified D.C. Indochina Infrastructure Holdings/ 500 N/A In Market Asia Diversified www.indochinacapita.com 1999 Ho Chi Minh Indochina Capital Corporation City ING Atlas European Infrastructure €1,000 N/A In Market Europe www.ing.com N/A London Fund/ING Real Estate Investment Diversified Management Israel Infrastructure Fund II/ £200 N/A In Market Global www.iif.co.il 2006 Tel Aviv Israel Infrastructure Fund Diversified JP Morgan Asia Infrastructure Fund/ 1,500 N/A In Market Asia Diversified www.jpmorgan.com/infrastructure 2006 Hong Kong; JP Morgan Singapore; Mumbai KKR Infrastructure Fund/KKR 4,000 N/A Coming Global www.kkr.com 1976 New York; Menlo to Market Diversified Park; London; Tokyo LODH Macquarie Infrastructure Fund CHF N/A In Market Europe www.macquarie.com.au 2000 Sydney; London 1,500 Diversified Macquarie European Infrastructure € 5,500 € 4,600 In Market Europe www.macquarie.com.au 2000 Sydney; London Fund III/Macquarie Diversified Macquarie Global Infrastructure 500 AUD 490 In Market OECD www.macquarie.com.au 2000 Sydney Fund III/Macquarie Macquarie India Infrastructure 2,000 N/A Coming India Diversified www.macquarie.com.au 2000 Sydney; Mumbai Opportunities Fund/Macquarie to Market Macquarie Infrastructure Partners II/ 6,000 4,000 In Market North America www.macquarie.com.au 2000 New York; Macquarie Diversified Sydney Macquarie Renaissance Infrastructure 1,500 N/A In Market Russia & Central www.macquarie.com.au 2000 Sydney; Moscow Fund/Macquarie & Renaissance Asia Capital MENA Infrastructure Fund/Dubai 500 N/A In Market MENA Region www.dubaiic.com 2005 Dubai International Capital & HSBC Bank Millenium Private Equity Infrastructure 500 N/A In Market Middle East www.mpefunds.com 2006 Dubai Fund/Milennium Private Equity Diversified

43 Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. Fund Size (MM) Note: Does not include funds currently being placed by Probitas Partners in $U.S. Unless Marked

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Mubadala Infrastructure Partners/ N/A N/A In Market MENA Region www.mubadala.com.ae 2007 Abu Dhabi Mubadala Development Company, GE & Credit Suisse Pan African Infrastructure 1,000 N/A In Market Africa Diversified N/A 2005 Pretoria Development Fund/South Africa Public Investment Commission Perpetual Diversified Infrastructure AUD 250 N/A In Market Australia www.palisadespartners.com.au 2007 Sydney Fund/Palisades Investment Partners Diversified Q India Fund/Quantum Equity 500 N/A In Market India Diversified www.qindiafund.com 1993 Mumbai Advisors Rabo Bouwfunds Communication € 375 N/A In Market Netherlands www.bouwfunds.com 1946 Hoevelaken Infrastructure Fund/Bouwfunds Asset Communications Management RREEF North American Infrastructure 500 N/A In Market N. America www.rreef.com N/A New York; Fund/Deutsche-RREEF Diversified Sydney; London Santander Infrastructure II/ € 1,500 € 185 In Market Global www.santanderprivateequity.com N/A Madrid Capital Grupo Santander Diversified Saratoga Asia Fund II/ 330 N/A In Market Asia Diversified www.saratoga.co.id 1998 Jakarta Saratoga Investama Sedaya Saudi-Spanish Infrastructure/ 1,000 N/A In Market Saudi Arabia & N/A 2008 Zurich Arox Infrastructure Spain Diversified SC IL&FS Asia Infrastructure Growth 1,000 N/A In Market China & India www.standardchartered.com 2008 Singapore; Fund/Standard Chartered and IL&FS Diversified Mumbai Transport Infrastructure Investment €500 N/A In Market North America, N/A 2008 Lisbon Company Fund/Transport South America, Infrastructure Investment Company Europe Troika Infrastructure Fund/ 1,000 N/A In Market Russia www.troika.ru 2006 Moscow Troika Capital Partners Diversified Vision Global India Infrastructure 1,000 N/A In Market India Diversified www.globalvisioninvestments.net N/A Financial Fund/Vision Global Investments Harbour, Bahrain

Confidential & Trade Secret © Probitas Partners 2008 Do not circulate or publish. 44 San Francisco 425 California Street Suite 2300 San Francisco, CA 94104 Tel 1.415.402.0700 Fax 1.415.402.0052

New York 1251 Avenue of the Americas Suite 2390 New York, NY 10020 Tel 1.212.403.3662 Fax 1.212.403.3537

London Dudley House 36-38 Southampton Street 1st Floor London WC2E 7HF Tel 44 20 7845 5400 Fax 44 20 7240 3339