First World Hybrid Real Estate Plc What is First World Hybrid Real Estate Plc?

First World Hybrid Real Estate Plc (“FWHRE” or the "Fund") is a real estate investment company that invests in a combination of direct real estate and listed real estate investment trusts (“REITs”).

The objective of this Fund is to combine the benefits of direct and listed First World real estate to generate a reliable, predictable and growing income. With the majority of the return generated from the income yield, the investment outcome can be anticipated with a reasonable degree of certainty.

This reliable and predictable income is achieved by investing in a diversified portfolio of UK warehousing and regional offices where:

• The properties are well located in the and are not of a specialised nature.

• The tenants are large, multinational and/or listed companies.

• A long term lease is in place.

• The tenant is responsible for all maintenance and insurance of each property.

• The lease has upwards only reversions.

• Growth in the net income will arise from any rental increase which are contained in the leases and upward rent adjustments in terms of the contractual lease reviews.

FWHRE invests in a portfolio of primarily direct real estate, listed REITs and cash. The higher weighting in direct real • Liquid estate can be attributed to Cash the higher yields relative to listed real estate. The cash and REITs provide liquidity • Liquid for redemptions. • Priced on stock market, therefore more Listed REITs volatile pricing • Diversified

• Prime UK real estate, yielding approximately 6% • Weighted average remaining lease term > 10 years Direct Real Estate Portfolio • Each property is independently appraised at least annually on a rolling basis, therefore less volatile pricing

First World Hybrid Real Estate Plc Page 1 of 15 Why First World Hybrid Real Estate Plc?

Combine the Benefits of Direct and Listed First World Real Estate Liquidity The portfolio includes listed Real Estate Investment Trusts (REITs). These REITs are readily traded and sold on first world stock exchanges and hence provide reasonable liquidity for redemption requests. The cash and REITs provide liquidity, with cash managed to reasonable working capital levels to avoid unnecessary yield dilution. Low Volatility FWHRE property investment criteria should enhance the reliable and predictable nature of the income stream and because the direct real estate will be revalued at least annually on a rolling property basis, price volatility is likely to remain low. Flexibility Adjusting asset allocation to take advantage of the higher yields in either direct or listed real estate as listed prices move between premiums and discounts to net asset value, will enhance the investor’s overall return.

Enhanced Yield Resulting in Enhanced Returns Positive Leverage A portion of the direct real estate is financed by debt resulting in positive leveraging due to the differential between the cost of financing (currently under 3%) and the yields offered by direct real estate. This enhances the yield of the portfolio. FWHRE limits debt to 50% of the value of the direct real estate. Including the listed REITs and cash, the leverage position is lower than 50% overall. FWHRE can manage the interest rate risk by potentially fixing the debt and/or reducing the debt ratio. High Income Return Without any price appreciation, the investor may achieve a return of approximately 5% per annum as a result of the dividend yield (before fees). The quality of the real estate and the tenants will ensure this outcome can be anticipated with a reasonable degree of certainty.

Regulated Environment

FWHRE is approved in terms of Section 65 of the Collective Investment Schemes Control Act 45 of 2002 for marketing and distribution in South Africa. FWHRE is a Regulated Fund in the Isle of Man and is subject to the Isle of Man Collective Investment Schemes (Regulated Fund) Regulations 2010. It is managed by FIM Capital Limited (“FIM Capital”) who is regulated by the Isle of Man Financial Services Authority, and the FCA in the UK. FWHRE is listed on The International Stock Exchange (formerly the Channel Islands Securities Exchange) and is subject to the Exchange’s listing rules.

The fiduciary custodian of the Fund, EFG Fund Services, a division of EFG Wealth Solutions (Jersey) Limited, is licensed to act as a fiduciary custodian by the Jersey Financial Services Commission. The fiduciary custodian is responsible for ensuring that the Fund is being managed and operated in accordance with the Offering Document and regulation, as well for keeping the assets of the Fund in its safe custody.

Page 2 of 15 First World Hybrid Real Estate Plc Additional Features

Asset Swap Where investors have reached their foreign investment allowance limit they can utilise Marriott’s asset swap capacity to invest in FWHRE. This facility is also available to trusts and companies wishing to invest into FWHRE. Probate Death Bed Donation Marriott recommends the use of either a death bed donation and/or a joint account. A death bed donation takes effect on the day preceding the death of the investor and is the legal mechanism for transferring ownership to surviving beneficiaries. As the investment is no longer owned by the original investor on the day of their death, the investment will not form part of an offshore estate for probate purposes.

From a South African tax perspective death bed donations are deemed to be dutiable property of the deceased estate* and therefore still attract estate duty. To avoid double taxation, however, they are excluded from donations tax**. Joint Account Holders An investor may elect to open a joint account with another investor. In the event of the death of one joint holder, the whole of the portfolio will automatically vest in the joint surviving holder or holders. If a joint account investor elects a death bed donation, the donation has precedence and the investor will be deemed to have donated their investment the day before their death. The investor’s portion of the joint account will therefore be transferred to the listed beneficiaries effective the day before their death.

Joint accounts and death bed donations can be elected in the Investment Mandate. Investors are encouraged to seek independent tax advice suitable to their personal circumstances.

Online Investment Statements and Investment Planning Tool

Investors will have access to online Secure Services where they can access a portfolio overview, a detailed portfolio statement with custom date ranges and, an investment planning tool that provides an on-going indication of future income and capital values, adjusted for inflation.

Please see page 12 for additional Technical Information.

* in terms of Section 3(3)(b) of the South Africa Estate Duty Act ** in terms of section 56(1) of the South African Income Tax Act

First World Hybrid Real Estate Plc Page 3 of 15 Real Estate Overview Direct Real Estate The direct real estate portfolio comprises 17 properties. The total asset value of FWHRE exceeds GBP 110 million. The portfolio has a strong weighting to warehousing (predominantly distribution warehousing but also standalone retail warehousing) in addition to four regional office properties.

Portfolio Analysis:

Property Sector Type by Value Lease Expiry Profile by Value LT Target: 75% Warehousing, 25% Regional Offices WAULT Target > 10 yrs, Actual 11 yrs

Distribution Warehouse – 65% >5 years and <10 years – 41% Retail Warehouse – 17% >10 years and <15 years – 45% Regional Offices – 18% >15 years – 14%

The properties are well let on fully repairing and insuring leases to strong tenants.

FWHRE targets a portfolio weighted average unexpired lease term (WAULT) of not less than 10 years - current WAULT is 11 years. No leases are subject to expiry or break within the next 5 years; and more than 50% of the leases only expire or break in more than 10 years’ time.

This together with the lease structure and the financial standing of the tenants enhances the predictability of future rental flows.

REITs FWHRE invests into substantial, diversified REITs to maintain liquidity. The REIT portfolio in FWHRE has geographical diversification, as well as sectoral diversification, with a spread in warehousing, retail and offices.

REITs contribute substantially to the liquidity of FWHRE in that they are readily traded on first world stock exchanges. The REITs chosen for FWHRE are all market leaders which are committed to dividend payments.

The current REIT portfolio is summarised in the table below:

Security Weighting Market Cap Index Property Sector Exposure

British Land 3.8% £6.2bn FTSE 100 51% retail, 49% offices and residential

Hammerson 4.3% £3.6bn FTSE 100 100% shopping centres, retail parks and premium outlets

Segro Plc 2.2% £5.9bn FTSE 250 100% Industrial (warehousing/ logistics)

52% retail, 36% distribution and 12% offices, residential LondonMetric Property PLC 3.6% £1.2bn FTSE 250 and development

Tritax Big Box REIT PLC 2.9% £1.9bn FTSE 250 92% retail, 4% logistics and 4% manufacturing

As at 23 February 2018

Page 4 of 15 First World Hybrid Real Estate Plc Direct Real Estate Holdings Property Locations

1 Bidfood – Cannock, Birmingham 10 Wickes – Grimsby, East Lincolnshire 2 Matthew Clark – Runcorn, Liverpool 11 Vanquis Bank – Chatham, Kent 3 DPD – Snetterton, East Anglia 12 Spectrum Brands – Wolverhampton 4 Insulations – Cardiff, Wales 13 SIG – Sheffield, Yorkshire 5 Booker Cash and Carry – Lincoln, Midlands 14 Barratt – Gateshead, Newcastle 6 B&M Retail – Towcester, Northamptonshire 15 B&M Retail – Leek, Staffordshire 7 FPE Seals – Darlington, Durham 16 Great Bear Distribution – Deeside, South of Liverpool 8 – Lakeside, Doncaster 17 Crown Packaging Manufacturing – Leicester 9 Iron Mountain – Premier Park, Leeds

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First World Hybrid Real Estate Plc Page 5 of 15 Bidfood Cannock, Birmingham

This property, situated in what is known as the “Golden Triangle” for logistics and distribution real estate in the United Kingdom, has a lease with a Bidvest subsidiary, expiring on 13 October 2025. It is a modern industrial unit constructed in 2005 totalling 66 114 sq ft. Well located in Cannock’s prime distribution and logistics centre, it is in close proximity to occupiers such as Unilever, APC Overnight and DHL.

A single storey, purpose-built distribution warehouse (including ambient, Building use: cold and freezer storage) with two floors of ancillary office accommodation Size of building: 66 114 square foot (site cover of 26%) Tenant: BFS Group Limited (D&B 5A1) Lease expiry date: 13 October 2025 Acquisition Yield: 7.8% Fully repairing and insuring (i.e. tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews

Conviviality Group Runcorn, Liverpool

This property, situated in Runcorn in the Liverpool area in the United Kingdom, has a lease with Conviviality Group Ltd, part of a listed group, expiring on 6 December 2024. The company is the UK's leading indepentant drinks distributor. It is a modern distribution unit constructed in 2002 totalling 52 391 sq ft.

A single storey, modern distribution warehouse with two floors of Building use: ancillary office accommodation Size of building: 52 391 square foot (site cover of 31%) Tenant: Conviviality Group Limited (D&B 5A1) Lease expiry date: 6 December 2024 Acquisition Yield: 7% Fully repairing and insuring (i.e. tenant responsible for all operating Type of lease: costs), upwards only 5 yearly rental reviews

DPD Snetterton, East Anglia

This property, situated adjacent to the A11 in Snetterton being 6 miles north east of Thetford and 20 miles west of Norwich, has a lease with DPD Group UK Ltd, expiring on 9 May 2033. DPD, is an international parcel delivery company owned by Geopost Ltd, and ultimately by the French Post Office, has more than 800 depots in more than 40 countries and is Europe’s leading business to business parcel delivery services. This brand new distribution shed of 37 242 sq ft has 26 level access doors and 5 dock levellers and delivers more than 12 000 parcels a day across East Anglia.

A single storey, modern distribution warehouse with two floors of Building use: ancillary office accommodation Size of building: 37 242 square foot (site cover of 26%) Tenant: DPD Group UK Limited (D&B 5A1) Lease expiry date: 9 May 2033 Acquisition Yield: 6.5% Fully repairing and insuring (i.e. tenant responsible for all operating Type of lease: costs), upwards only 5 yearly rental reviews

Page 6 of 15 First World Hybrid Real Estate Plc Sheffield Insulations Cardiff, Wales

This property in Cardiff, situated in the capital city of Wales approximately 150 miles west of London, has a lease with SIG Trading Ltd, expiring on 28 August 2028. Trading as Sheffield Insulations this business is a British based leading supplier of building materials to the industry specialising in insulation and energy management, roofing and interior fit outs. The company’s ultimate parent company is SIG plc which has been trading for over 50 years. Situated just to the south east of the city centre in Southport Industrial Estate this port location is one of the main warehouse and industrial areas in the city of Cardiff. The property, constructed in 2003, comprises two modern warehouse terraces of steel portal frames and extends to a gross internal floor area of 55 552 sq ft.

Building use: Two modern warehouse terraces Size of building: 55 552 square foot (site cover of 49%) Tenant: SIG Trading Limited (D&B 5A1) Lease expiry date: 28 August 2028 Acquisition Yield: 6.8%

Fully repairing and insuring (i.e. tenant responsible for all operating Type of lease: costs), upwards only 5 yearly rental reviews

Booker Cash and Carry Lincoln, Midlands

The property is prominently located approximately 4 miles south west of the Lincoln city centre in the commercial area known as South West Quarter Business District and has a lease expiring on 13 March 2024. This business node has good access via the A46 to the A1 and the Lincoln City centre. The property comprises a modern warehouse used as a cash and carry operation by Booker Limited, a wholly owned subsidiary of Booker Group plc, which is listed on the London Stock Exchange. Booker is a long established business and the UK’s leading food wholesaler with over 500 000 customers including independent convenience stores, grocers, leisure outlets, pubs and restaurants.

Building use: A single storey, modern warehouse used as a cash and carry operation

Size of building: 47 822 square foot (site cover of 39%)

Tenant: Booker Limited (D&B 5A1)

Lease expiry date: 13 March 2024

Acquisition Yield: 6.8% Fully repairing and insuring (i.e. tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews

B&M Retail Towcester, Northamptonshire

The property is prominently located in the out-of-town retail cluster of Towcester, an affluent market town in Northamptonshire approximately 10 miles south west of Northampton. The property is in close proximity to the roundabout junction of the A5 and A43, providing easy access to the M1. It comprises a standalone, modern, purpose built retail warehouse leased to B&M Retail Limited, which boasts more than 500 stores in the UK, has 25 000 employees and on average has 3m customer transactions per week. The company is a wholly owned subsidiary of the LSE listed and FTSE 250 member B&M European Value Retail S.A.

Building use: A single storey, modern stand alone retail warehouse

Size of building: 21 174 square foot (site cover of 25%)

Tenant: B & M Retail Limited (D&B 5A1)

Lease expiry date: 28 September 2028

Acquisition Yield: 6% Fully repairing and insuring (i.e. tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews

First World Hybrid Real Estate Plc Page 7 of 15 FPE Seals Darlington, Durham

The property is prominently located and forms part of the Yarm Road Interchange, a new high quality mixed use development. It is situated 2 miles east of the Darlington Town Centre and is adjacent to the Darlington Retail Park. It comprises a brand new, single storey modern warehouse with two floors of office accommodation. The property is leased to FPE Seals Limited, a subsidiary of the LSE listed and FTSE 250 member Diploma Group. FPE is a leading supplier of hydraulic and pneumatic seals for heavy mobile machinery and industrial equipment.

Building use: A single storey, modern warehouse with two floors of office space

Size of building: 34 002 square foot (site cover of 34%)

Tenant: FPE Seals Limited (D&B 5A1)

Lease expiry date: 31 August 2030

Acquisition Yield: 5.7% Fully repairing and insuring (i.e. tenant responsible for all operating costs). Type of lease: Subject to annual 2.5% fixed increases, compounded and effective 5 yearly

Keepmoat Lakeside, Doncaster

The property is located on Lakeside Boulevard, Doncaster and is approximately 32 miles south east of Leeds. It is a modern office building, constructed in 2006, comprising 17 557 sq ft of high specification office accommodation with unobstructed views across the 50 acre lake. The property is leased to Keepmoat UK Ltd, and houses their UK headquarters. The lease expires in February 2031. Keepmoat is a national market leader in sustainable community regeneration, housing and responsive repairs to the UK housing industry.

High specification office accommodation over 3 floors, used as national Building use: headquarters. Size of building: 17 557 square foot offices, 325 square foot balconies

Tenant: Keepmoat UK Limited (D&B 5A1)

Lease expiry date: 3 February 2031, tenant break in Feb 2028 subject to 12 months notice

Acquisition Yield: 6.75% Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: with compounded RPI linked rent reviews, effective 5 yearly, Collared and Capped at 2% and 4% pa respectively

Iron Mountain Premier Park, Leeds

The property is located in Premier Park approximately 9 miles south of Leeds city centre and is adjacent to the M62 motorway, the principal route which links Leeds to Manchester with access to Junction 30 of the motorway in less than 1 mile. The M62 motorway links with the M1, A1 (M), M60 and M6 afford excellent transport throughout the UK. It is a modern unit, constructed in 2002 comprising 71 186 sq ft and benefits from an eaves height of 34 feet, 2 dock levellers and 4 level access loading doors. The property is leased to Iron Mountain UK Ltd, part of a global data storage business, expiring on 4 January 2030.

Building use: A single storey, warehouse with 2 floors of ancillary office accommodation.

Size of building: 71 186 square foot plus 3 125 sq ft external canopy area (site cover of 33%)

Tenant: Iron Mountain UK Limited (D&B 5A1)

Lease expiry date: 4 January 2030

Acquisition Yield: 5.7% Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: subject to annual 2.5% fixed increases, compounded and effective 5 yearly.

Page 8 of 15 First World Hybrid Real Estate Plc Wickes Grimsby, East Lincolnshire

The property is located at a very prominent position on the major route into Grimsby from the West, is modern having been developed to Wickes requirements in 2015, comprises 27 061 sqft of ground floor retail warehouse, office areas and a mezzanine provided by Wickes at their cost per their standard specifications. The property is let to Wickes Building Supplies Limited on a 20 year lease expiring 30 April 2035. Wickes, part of the group of companies, has a business focus on DIY stores, home improvement and garden centre retailing. Travis Perkins plc is listed on the LSE and has a market capitalisation value in the order of £4.bn.

Single storey, modern stand alone retail warehouse with office and Building use: mezzanine areas Size of building: 27 061 square foot (including mezzanine areas) (site cover of 28%)

Tenant: Wickes Building Supplies Limited (D&B 5A1)

Lease expiry date: 30 April 2035, with tenant break in April 2030 subject to 6 months notice

Acquisition Yield: 6.45% Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews capped at 3.0% pa compound

Vanquis Bank Chatham, Kent

The property known as Compass South is a modern office building located in Chatham Maritime, a prominent Thames Gateway office location south-east of London. The property comprises 32 890 sqft of office accommodation over three floors and was recently completely refurbished to high quality tenant specifications. The property is let to Portal Chatham LLP but occupied by the guarantor, Vanquis Bank, on a lease expiring on 3rd September 2031, with a tenant break in September 2026. Vanquis Bank, is a strong D&B 5A1 covenant and a subsidiary of Provident Financial.

Building use: Office Building comprises 32 890 sqft office accommodation together with a link Size of building: block of 688 sqft Tenant: Vanquis Bank Limited (D&B 5A1)

Lease expiry date: 3rd September 2031, with tenant break in September 2026

Acquisition Yield: 7.15% Fully repairing and insuring (ie tenant responsible for all operating Type of lease: costs). Rent subject to fixed uplift at review based on 2.5% per annum compounded.

Spectrum Brands Wombourne, Wolverhampton

The property is well located in Wombourne Enterprise Park, Wombourne, which lies on the West Midlands and Staffordshire border, 15 miles west of Birmingham and 6 miles south of Wolverhampton. This modern, high specification property was constructed in 2005 as a national distribution facility and comprises 131,984 sqft of ground floor warehouse and ancillary offices. The property is let to Spectrum Brands UK Limited on a 25 year lease expiring 28 January 2030. Spectrum Brands UK Limited is a wholly owned subsidiary of Spectrum Brands Holdings, which is listed on the NYSE. Spectrum Brands Holdings has a global footprint with a presence in 6 continents selling leading brands such as Russell & Hobbs, Black and Decker and Remington in 160 countries.

A single storey modern distribution warehouse with ancillary office Building use: accommodation Size of building: 131 984 square foot (site cover of 43%)

Tenant: Spectrum Brands (UK) Limited (D&B 5A1)

Lease expiry date: 28 January 2030, with no tenant break

Acquisition Yield: 6.25% Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews

First World Hybrid Real Estate Plc Page 9 of 15 SIG Sheffield, Yorkshire

This property, situated in one of Yorkshire’s largest business parks, Sheffield Business Park, has a new 25 year lease with SIG Trading Limited, expiring 21 December 2041. SIG is a leading supplier of specialist insulation and energy management materials to the construction industry in the UK, with its ultimate parent company, SIG plc, trading for over 50 years. This modern, open plan office building constructed in 2007 measures 20 439 sq ft and together with two other buildings in Sheffield Business Park comprise SIG plc’s headquarter campus in the UK.

High specification office accommodation over 3 floors, used as national Building use: headquarters Size of building: 20 439 square foot

Tenant: SIG Trading Limited (D&B 5A1)

Lease expiry date: 21 December 2041, with no tenant break

Acquisition Yield: 6.0% Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: upwards only, RPI index linked, cap and collar 1% and 3% per annum compounded.

Barratt Gateshead, Newcastle

The property known as Richmond House is a modern regional office building in a well located and established office park in Gateshead, being part of the Newcastle Upon Tyne conurbation, and in close proximity to the Metro Shopping complex, Europe’s largest super-regional shopping centre. The property comprises a 21 626 square foot building which has been extensively refurbished for the tenant in terms of a detailed specification of works, at an estimated cost of £1.4m. The property is let to BDW Trading Ltd, the principal trading company of plc being a FTSE 100 company, on a new FRI 10 year lease expiring 1 July 2027

Building use: Office

Size of building: 21 626 square foot

Tenant: BDW Trading Limited (D&B 5A1)

Lease expiry date: 1 July 2027

Acquisition Yield: 6.7%

Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews.

B&M Retail Leek, Staffordshire

The property is well located in Leek, a market town in Staffordshire in the North West of England. Strategically positioned in a prominent location on the A53, the main arterial road which leads into the town centre, it provides direct access to both Newcastle under Lyme (12 miles SW of Leek) and Stoke on Trent. It comprises a standalone, modern, purpose built solus retail warehouse leased to B&M Retail Limited, which boasts more than 500 stores in the UK, has 25 000 employees and on average has 3m customer transactions per week. The company is a wholly owned subsidiary of the LSE listed and FTSE 250 member B&M European Value Retail S.A.

Building use: A single storey, modern stand-alone retail warehouse

Size of building: 26 675 square foot + a 10 000 square foot garden centre

Tenant: B&M Retail Limited (D&B 5A1)

Lease expiry date: 24 March 2028

Acquisition Yield: 6.25% Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews

Page 10 of 15 First World Hybrid Real Estate Plc Great Bear Distribution Deeside, south of Liverpool

The property is located in Deeside Office Park, one of the principal industrial locations in the North West benefitting from excellent access to the national motorway network. It is located approximately 16 miles south of Liverpool and 42 miles west of Manchester. This modern, high specification property was constructed in 2004 and comprises 90 468 sqft of ground floor warehouse and ancillary offices. It benefits from a generous eaves height of 11m, 3 dock level loading doors and 4 dock levellers. The property is let to Great Bear Distribution Limited, established in 1994 they are a leading UK logistics company providing nationwide contract logistics and supply chain management services operating from over 30 sites across the UK.

A single storey, modern distribution warehouse with two floors of ancillary Building use: office accommodation

Size of building: 90 468 square foot with a site coverage of 41%

Tenant: Great Bear Distribution Limited (D&B 3A1)

Lease expiry date: 23rd May 2024

Acquisition Yield: 6.35%

Type of lease: Fully repairing and insuring (ie tenant responsible for all operating costs)

Crown Packaging Manufacturing Leicester

The property is well located on Radar Road in the established Braunstone Frith Industrial Estate, Leicester. Considered to be the best distribution location in the UK in the heart of the Golden Triangle, this is a premier logistics hub located 2.5 miles from the M1, the largest and major north/south arterial in the UK. This modern, high specification property was constructed in 2002 as a national distribution facility and comprises 184,239 sqft of ground floor warehouse and ancillary offices. The property is let to Crown Packaging Manufacturing Limited on a 10 year lease expiring in September 2027. Crown Packaging is the No.1 producer of food and aerosol cans in the world and the No.2 producer of beverage cans in the world. Their metal packaging technology is market leading and they operate in 36 countries employing 24,000 people with net sales of $8.3bn globally.

A single storey modern distribution warehouse with ancillary office Building use: accommodation

Size of building: 184,239 square foot (site coverage 50%)

Tenant: Crown Packaging Manufacturing UK Limited (D&B 5A1)

Lease expiry date: 24 September 2027, no tenant break

Acquisition Yield: 5.15%

Fully repairing and insuring (ie tenant responsible for all operating costs), Type of lease: upwards only 5 yearly rental reviews.

First World Hybrid Real Estate Plc Page 11 of 15 Key Individuals

FWHRE Directorate

Neil Nothard – Board Member, CEO – Marriott. BCom CA (SA). Neil is the Chief Executive Officer of Marriott. He joined the group in 1987 as a chartered accountant and has held a variety of positions over the past 30 years. Neil is based in South Africa.

Russell Collister – Board Member, Director – FIM Capital. BA (Hons), Fellow of the Securities Institute. 30 years of continuous experience in the investment management industry. Russell has a particular interest in the quoted property sector having worked as a property analyst managing specialist property and income funds. Russell is based in the Isle of Man.

Craig Ewin – Board Member, Director – Sequel. B Com Dip Acc CA(SA). 25 years experience in the acquisition, financing and management of properties for a variety of investors, including listed REIT portfolios where he has held both executive and non-executives roles. Craig spends his time between South Africa and the UK.

Mark Grace – Board Member, Director – Black Grace Cowley. BSc (Hons) MRICS As a founding director of Black Grace Cowley, a leading multi-disciplinary firm of chartered surveyors, valuers, estate agents and property managers, Mark has over 30 years’ experience in both the residential and commercial property industry. Mark is based in the Isle of Man.

Philip Scales – Board Member, Director – FIM Capital. Fellow of the Institute of Chartered Secretaries and Administrators. 38 years experience working offshore in corporate, trust and third party administration. He holds a number of directorships of listed companies and collective investment schemes. Philip is based in the Isle of Man.

Property Managers and Other Services

Roger Perkin – Director – Sequel Property Investments (Pty) Ltd. BA LLB, admitted attorney of the High Court. 20 years experience in the property industry, focusing on asset and fund management for various investment entities, including listed REIT portfolios. Roger is based in South Africa and travels to the UK regularly.

Peter Sparks – Director – Sequel Property Investments (Pty) Ltd. BSc (Hons) MTRP MRICS*. 20 years diverse property experience with a focus on acquisitions, disposals and property development activity for listed REIT portfolios where he held executive roles. Peter spends his time between South Africa and the UK.

Roger Young – International Partner – Cushman & Wakefield. BSc(Hons) MRICS. RICS Registered Valuer Roger is a commercial property valuer based in London and head of Cushman & Wakefield’s business space valuation and advisory team. He has 17 years experience in the UK property market and is responsible for the independent valuations of FWHRE’s direct properties.

James Lindley Partner – Lindley Mortimer. BSc (Hons) MRICS*. James is a property investment surveyor with 26 years post qualification experience. James is based in London.

Bruce Mortimer Partner – Lindley Mortimer. BSc (Hons) MRICS*. Bruce is a property investment surveyor with 26 years post qualification experience. Bruce is based in London.

John Munday Managing Director – Paragon Building and Project Consultants. MRICS*. John has 22 years industry experience and has been responsible for the building and environmental surveys of FWHRE's direct properties. John is based in London.

*Member Royal Institute of Chartered Surveyors

Page 12 of 15 First World Hybrid Real Estate Plc Technical Information Summary

Minimum Investment Amount £25,000

Marriott Initial Fee 0%

Investment Management Fee Investment amount Total fee per annum £25,000 – £49,999 0.75% Costs are based on a sliding scale £50,000 – £99,999 0.70% depending on investment size. £100,000 – £249,999 0.65% £250,000 – £499,999 0.60% Deducted from the income quarterly. £500,000 – £999,999 0.55% £1m – £1,999,999 0.50% > £2m 0.45%

• Additional costs are deducted from the Fund’s Net Asset Value (NAV) in respect of Fiduciary Custodian, Property Management, Audit and other services. Please see the Charges Offering Document for more information. • There are no brokerage fees or duties in purchasing units in FWHRE.

Financial Advisor Initial Fee Maximum 3%. Payments processed twice a month. Deducted from consideration received.

Financial Advisor Annual Advisor Fee Maximum 1% p.a. Paid quarterly in arrears. Deducted from income quarterly.

Income Payments Income reinvested or paid quarterly (Minimum payment of £400 applies.)

• Biannual Valuations (28 February & 31 August) Client Reporting • Consolidated tax voucher and interest certificate annually

• FWHRE is priced weekly, based on net asset value (as opposed to on a listed exchange). • Shares can be purchased and redeemed weekly. Weekly Pricing & Trading • Instructions for redemptions need to reach us five clear business days before the next pricing date, for processing on that price date.

Tax Clearance: SARS permits an annual foreign investment allowance of R10 million for individuals, and an annual discretionary allowance of R1 million per year. The latter does not require a tax clearance certificate.

If you have reached your individual limit for the year then you can make use of the Marriott asset swap capacity at no extra cost. Please contact the Communication Centre for more details.

Taxation of Income: The income received from FWHRE is considered a foreign dividend by the South African Revenue Service and as such is taxed at a maximum 20%. This is in most cases significantly lower than the marginal rates an investor would have to pay on local real estate income. General Information Registration, Nominees and Safe Custody Certain investments in your portfolio may be registered in the name of nominee companies. Investments may also be registered in the name of appropriate eligible custodians, whose role it is to hold investments in safekeeping on your behalf, appointed by FIM Capital in accordance with the Isle of Man Financial Services Authority Financial Services Rule Book.

Foreign Currencies The base currency of the portfolio is Sterling, however investments may be made in assets denominated in other currencies. In this case, movements in currency rates of exchange can have an unfavourable as well as favourable effect on the value of your portfolio.

Confidentiality We will use reasonable endeavours to ensure that all confidential information relating to you and your portfolio is kept confidential. However you authorise us to disclose information (confidential or not): a) to our employees (or employees of our agents, nominees, custodians or other persons appointed by us in connection with your portfolio) on a need-to-know basis; b) to the FSA and any other regulatory authority, to the extent that they are entitled to the information sought; c) otherwise as may be required by law, best investment business practice, industry regulations or codes of practice.

First World Hybrid Real Estate Plc Page 13 of 15 Service Providers

Fund Manager: FIM Capital Limited (“FIM Capital”) FIM Capital was established in January 2006. FIM Capital manages portfolios for private clients, institutions, trusts and corporations from its offices in the Isle of Man. FIM Capital operates a pooled arrangement for holding client cash in accordance with the Isle of Man Financial Services Authority Financial Services Rule Book. Jurisdiction: Isle of Man Regulatory Status: Licensed by the Isle of Man Financial Services Authority (FSA) and authorised and regulated by the Financial Conduct Authority in the UK. Registered Office: IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP

Intermediary: Marriott Asset Management (Pty) Ltd (“Marriott”) Marriott is an independent boutique of the Old Mutual Investment Group. Marriott operates in South Africa, and internationally in the Isle of Man and Ireland. Marriott is registered in South Africa and is licensed to carry out investment business by the Financial Services Board. Jurisdiction: South Africa Regulatory Status: Authorised Financial Services Provider (FSP 592) through the Financial Services Board (FSB) Registered Office: 2 Delamore Road, Hillcrest, KZN, 3610

Property Manager: Sequel Property Investments (Pty) Ltd Jurisdiction: South Africa Registered Office: Unit 7, 8 Richefond Circle, Ridgeside Office Park, Umhlanga, 4319

Auditor: KPMG Audit LLC Jurisdiction: Isle of Man Regulatory Status: Licensed by the Institute of Chartered Accountants in England & Wales Registered Office: Heritage Court, 41 Athol Street, Douglas, Isle of Man , IM1 1LA

Bankers: Barclays Bank Plc Jurisdiction: United Kingdom Regulatory Status: Authorised and regulated by the Prudential Regulation Authority and the Financial Conduct Authority Registered Office: Barclays Bank PLC, 5 North Colonnade, Canary Wharf, London, E14 4BB

Fiduciary Custodian: EFG Fund Services a division of EFG Wealth Solutions (Jersey) Limited Jurisdiction: Jersey Regulatory Status: Licensed by the Jersey Financial Services Commission under the Financial Services (Jersey) Law, 1998 (as amended) to conduct funds services business including being custodian of collective investment schemes. Registered Office: PO Box 641, 1 Seaton Place, St Helier, Jersey, JE4 8YJ

Legal advisors: Callin Wild Jurisdiction: Isle of Man Professional Body: Isle of Man Law Society Registered Office: Bank Chambers, 15-19 Athol Street, Douglas, Isle of Man, IM1 1LB

Investment Surveyors: LMD Real Estate Ltd Jurisdiction: United Kingdom Regulatory Status: Royal Institute of Chartered Surveyors Registered Office: 2nd Foor, 14 Cork Street, London W1S 3NS

Building & Environmental Surveyors: Paragon Building Consultancy Ltd Jurisdiction: United Kingdom Regulatory Status: Royal Institute of Chartered Surveyors Registered Office: 7 Swallow Place, London, W1B 2AG

Property Valuers: Cushman & Wakefield LLP Jurisdiction: United Kingdom Regulatory Status: Royal Institute of Chartered Surveyors Registered Office: 43-45 Portman Square, London, W1H 6LY

Debt Funders: Barclays Bank plc Jurisdiction: United Kingdom Regulatory Status: Financial Conduct Authority and Prudential Regulation Authority Registered Office: 1 Churchill Place, Canary Wharf, E14 5HP

Property Legal Advisors: CMS Cameron McKenna Nabarro Olswang LLP Jurisdiction: United Kingdom Regulatory Status: Solicitors Regulation Authority Registered Office: 90 High Holborn, London, WC1V 6XX

Page 14 of 15 First World Hybrid Real Estate Plc Collective investment schemes are generally for the medium to long-term. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investment schemes are traded at ruling prices and the First World Hybrid Real Estate Fund (FWHREF) can engage in borrowing. If required, FWHRE may borrow up to 50% of the net asset value of the Fund for the purpose of achieving its investment objectives. Forward pricing is used. The ruling price is calculated at approximately 17h00 Isle of Man time weekly. Purchase requests must be received by the manager (FIM Capital) by 17h00 Isle of Man time on a valuation day. Repurchase requests must be received by the manager prior to 5.00 p.m. five clear Business Days before a Redemption Day as per the Offering Document. FWHRE provides a reasonable but not absolute level of liquidity due to the inclusion of cash and listed REITs in addition to the direct real estate portfolio. Large redemption requests may therefore be delayed. Prices are published on a weekly basis on the Marriott website, www.marriott.co.za. Unit trusts are calculated on a net asset value basis. Net asset value is the value of all assets in the portfolio including any income accrual and less any permissible deductions from the portfolio. FWHRE does not provide any guarantees with respect to the capital or the return of the portfolio. A schedule of fees and charges and maximum commissions is available on request from Marriott. Where initial fees are applicable, these fees are deducted from the investment consideration and the balance invested in units at the net asset value. Commissions and incentives may be paid and if so, would be included in the overall costs. Different classes of shares may apply to the fund and will be subject to different fees and charges. The inclusion of foreign securities in a portfolio are subject to risks including but not limited to potential constraints on liquidity and the repatriation of funds, macroeconomic risks, political risks, foreign exchange risks, tax risks, settlement risks and the potential limitations on the availability of market information. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. In addition, investments in regulated funds may involve special risks that could lead to a loss of all or a substantial portion of the investment. Declaration of income accruals are quarterly. Performance figures are based on lump sum investment. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. This Fund may be closed to new investors in order to manage it more efficiently in accordance with its mandate. The TER shows the percentage of the average Net Asset Value of the portfolio that was incurred as charges, levies and fees relating to the management of the portfolio. A higher TER ratio does not necessarily imply poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs. Marriott Unit Trust Management Company (RF) (Pty) Ltd, the Representative, is a member of the Old Mutual Investment Group.

Marriott Asset Management (Pty) Ltd. Marriott House 2 Delamore Road Hillcrest 3610 PO Box 2099 Hillcrest 3650 South Africa FIM Capital IOMA House Communication Centre 0800 336 555 Hope Street, Douglas, Isle of Man, Tel +27 (0)31 765 0700 Fax +27 (0)31 765 0790 British Isles, IM1 1AP Email [email protected] www.marriott.co.za MARRIOTT 201708