Valuation Report PO-25/2018

A portfolio of real estate assets in Russia (St Petersburg, Moscow, Yekaterinburg) and Germany (Leipzig, Landshut, Munich)

Prepared on behalf of LSR Group OJSC

Date of issue: March 12, 2019

Contact details

LSR Group OJSC, 15-H, liter Б, 36, Kazanskaya St, St Petersburg, 190031, Russia Lyudmila Fradina, Tel. +7 812 3856106, [email protected]

Knight Frank Saint-Petersburg AO, Liter A, 3B, Mayakovskogo St., St Petersburg, 191025, Russia Svetlana Shalaeva, Tel. +7 812 3632222, [email protected]

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO-25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 1

Executive summary

The executive summary below is to be used in conjunction with the valuation report to which it forms part and, is subject to the assumptions, caveats and bases of valuation stated herein. It should not be read in isolation.

Location The Properties within the Portfolio of real estate assets to be valued are located in St. Petersburg and Leningradskaya Oblast', Moscow, Yekaterinburg, Russia and in Munich, Leipzig and Landshut, Germany.

Description The Subject Property is represented by vacant, partly or completely developed land plots intended for residential and commercial development and commercial office buildings with related land plots.

Areas ● Buildings – see the Schedule of Properties below

● Land plots – see the Schedule of Properties below

Tenure ● Buildings – see the Schedule of Properties below

● Land plots – see the Schedule of Properties below

Tenancies As of the valuation date from the data provided by the Client, the office properties are partially occupied by the short-term leaseholders according to the lease agreements.

Valuation ● Commercial Properties. We’ve analysed both the office real estate market of St. considerations Petersburg and Moscow in general and the competitive environment of the Projects particularly to determine the market rental, vacancy and capitalization rates and OPEX for the Properties. We used this information to compare it with the data provided by the Client and to calculate the market rents after the lease expires if the current rent does not correspond to the market. Furthermore we’ve analysed the supply of the similar properties for sale. Thus the value was determined by reference to observable prices.

● Residential Properties. We’ve analysed both the residential real estate market of St. Petersburg and Leningradskaya Oblast’, Moscow, Yekaterinburg in general and the competitive environment of the Projects particularly to determine market prices, sales pace per quarter, price growth due to the inflation and project completion and construction costs. We used this information to compare it with the data provided by the Client and to calculate the market sales prices if the current prices do not correspond to the market. We assumed that sale prices information provided by the Client refers to the current average prices for the appropriate unit (apartment (per unit),

office or retail space (per sqm) or parking lot (per unit)) as if the property was commissioned at the valuation date.

● We used CPI forecast of Ministry of Economic Development of Russian Federation to index the construction costs.

● Residential Properties. We’ve analysed average residential prices dynamics by classes and extrapolated it on indexing the income from sales.

● We have taken into account the changes in Russian development legislation enforced since July 01, 2018 by using within our calculations of DCF models the financial leverage (project financing by a bank) and deponing of sales income till the completion of construction (funding on escrow accounts). The new scheme of development projects financing at the valuation date is mostly not applied in the market (only to single projects). So there is no statistics on its influence to the market and the results of its using in compare with previous situation. Also there is no accurate data on the criterias excluding projects them from obligatory transfer to the new rules of financing. But as it announces by official government speakers and experts the main criterias might be the stage of completion and the amount of sold areas. In light of the above we have applied the project financing scheme to the development projects from the portfolio those are at the beginning stages of construction and without previous sales or with a small share of sold areas.

● We have interviewed market participants (in particular development companies comparable to the Client) to determine the parametres of project financing offered by banks at the valuation date. As a result we have assumed the ratio of equity and loan as 20%/80% respectively, an average basic credit interest of 11% and a special credit interest of 5% applying when cumulative income from sales cover cumulative loan.

● All the general comments set out in this report refer to all the Properties within the portfolio if only special assumption is not provided.

● All considerations, assumptions and market commentaries regarding the properties located in Germany are attached in Appendix 6 “Valuation of properties located in Germany”.

● To the Tax Code of Russian Federation residential development performed by contractors is not subject to VAT excluding commercial and parking construction in case of charging VAT from selling prices. Thus VAT paid on construction and other development costs can be offset only proportionally to the costs incurred in non- residential construction. Commercial properties are subject to VAT in full (long-term leasehold of the land plot) or in respect of the price apportioned to the building (freehold of the land plot) if only the owner’s company is not using Simplified Tax System. Thus we have assumed that all development costs and prices provided by the Client include VAT (where applicable). In our value calculations we applied cash flows including VAT.

● More detailed valuation considerations for the particular Properties within the portfolio are expressed in the description placed in the attachments to the report.

Valuation date December 31, 2018

Market Value, 185,560,939,000 (One Hundred Eighty Five Billion Five Hundred Sixty Million Nine rounded Hundred Thirty Nine Thousand) RUB.

Key assumptions ● The Subject Property is represented by vacant, partly or completely developed land plots intended for residential (residential premises) and commercial (apartments) development (hereinafter referred to as Residential Properties) and by commercial office buildings with related land plots (hereinafter referred to as Commercial Properties). It is assumed that the buildings under construction will be completed in accordance with the identified plans and specification provided by the Client.

● We have been provided with the Properties’ title information by the Client. Nevertheless we have not been provided with all the ownership certificates and land long-term lease agreements to verify it. Thus, in our valuation, we have assumed a good and marketable freehold (to the land plots and buildings) or long-term leasehold (to the land plots) title and that all documentation is satisfactorily drawn.

● Several legal entities are the owners of the Properties within the portfolio. The Client has informed us that all these legal entities belong to LSR Group OJSC. Thus we assume that 100% ownership of LSR Group OJSC is to be valued.

● To the title documents provided by the Client, part of the Properties is either the shared ownership or leasehold. For a shared ownership we assume it is the share of freehold tenure of the Client in all the properties to be assessed. For leasehold property we assume it is freehold tenure of the improvements and leasehold of the land to be assessed.

● We assume that all the utilities (heating, cold and hot water, electricity, sewerage / drainage and telecommunications) are available to the Property at the site borders.

● We assume that public and social (including school) facilities for the future development are sufficient.

● We have adopted the Developer’s estimate of project costs (project budget) within our assessment.

● Development project costs provided by the Client consist of already incurred and estimated outstanding costs. Since we provide our opinion on the value as of the valuation date, in our calculations we have adopted only estimated outstanding costs.

● Residential Properties. Sales proceeds provided by the Client consist of anticipated income from already sold but unpaid units and estimated income from the unsold units. In our DCF calculations we have adopted only income estimated from the unsold units. We assumed that a hypothetic potential purchaser of the Property would normally be entitled to all the Property rights including claim rights for the payment for sold unpaid units. Thus, we have added anticipated income from already sold but unpaid units to the NPV.

● We have assumed construction period in accordance with the Developer’s envisaged

timetable when in our opinion this timetable complied with construction periods witnessed at developments of a comparable scale. Otherwise our knowledge of similar developments suggested a construction period allowance of approximately 1 year (per phase if applicable).

● Residential Properties. We have assumed construction phasing in accordance with the Client’s envisaged phasing. In the absence of construction phasing information provided by the Client, we have adopted the most probable market construction phasing. We assumed 100,000 – 200,000 sqm of buildings constructed within 1 phase.

● If a whole portfolio, or a substantial number of properties within it, were to be placed on the market at the same time, it could effectively flood the market, leading to a reduction in values. Conversely, the opportunity to purchase a particular group of properties might produce a premium. In other words, the value of the whole could exceed the sum of the individual parts, and vice versa. Since valuing is for a purpose of inclusion in financial statements that assumes that the portfolio will continue to remain in the existing ownership or occupation, it would be inappropriate to make any reduction or allowance in the valuation to reflect the possible effect of flooding the market.

● To the Terms of Engagement the valuation of portfolio should be presented in the format of the report. Market researches, competitors analyses, and description of the Properties within the Portfolio are placed in attachments to the report.

● We draw your attention to the fact that values change over time and a valuation given on a particular date may not be valid on an earlier or later date. Our opinion of value is only current at the valuation date. This is particularly important in current market conditions and subsequent re-valuation(s) may need to be considered to reflect any changes in inputs after the valuation date.

● To comply with the requirement to state restrictions on use, distribution or publication in IVS 101 para 20.3(m) the report shall include reference to any conditions on how it may be reproduced or referred to in the published financial statements of the entity. The extent and form of any references to the valuation that may appear in the published financial statements is stated within the relevant sections of this report and in the Terms of Engagement.

● The extent of the valuers' duty including the response to any questions on the valuation raised by the entity's auditor is stated within the relevant sections of this report and in the Terms of Engagement.

Property risks ● Contamination risk ● Planning risk ● Construction costs risk ● Cost and time over-runs risk ● Discount and capitalization rate increases risk ● Market uncertainty risk

Contents

Executive summary 2

1. Instructions 10

Engagement of Knight Frank Saint-Petersburg AO 10

Scope of enquiries & investigations 20

Valuation bases 21 2. The property 21

Location 21

Site 21

Description 21

Accommodation 22

Services 22

Legal title 22

Tenancies 27

Condition 27

Environmental considerations 28

Sustainability 28

Planning (Residential Properties) 29

Highways and access 30

Statutory licences & certificates 30 3. Proposed development 31

Proposed scheme (Residential Properties) 31

Development costs (Residential Properties) 32 4. Market analysis 34

Market commentary 34

Russia economic overview 34

Investment market commentary 35

Office market overview 36

Residential market overview 37 5. Valuation 37

Highest and Best Use analysis 37

Methodology 38

Valuation considerations 40

Valuation bases 43

Valuation date 43

Market Value 43 6. Property risk analysis 49

General comments 49

Risks relating to the property 49

Income risks 50

Development risks 51

Economic & property market risks 52

Valuation risks 54 Appendix 1 Terms of Engagement/ General Terms of Business for Russian Valuations 55

Appendix 2 Description of the Properties 66

1. Kazanskaya 36 67

2. Zolotaya Kazanskaya 69

3. Paradny Kvartal BC 11 71

4. Kazanskaya 60 73

5. Radishcheva 39 75

6. Smolny Park 77

7. Verona 79

8. Neva Art, Neva Residence (REB Flota) 81

9. Neva Haus 83

10. Osobnyak Truvorova 85

11. Russkiy dom 87

12. Europa City 89

13. Tri Vetra 91

14. Moskovskoye Hgwy (NEO, NEO Park) 93

15. Morskoy Fasad 95

16. Riviere Noire 97

17. Bogemia 99

18. Yuzhnaya Aquatoriya/Parusa 101

19. Sophiya 103

20. Kalina-Park (Kaleidoskop) 105

21. Novaya Okhta 107

22. Tsvetnoy Gorod Vostok 109

23. Ruchyi 111

24. Tsvetnoy Gorod Zapad 113

25. Shuvalovsky 115

26. Tsivilizatsiya (Rudas, Barrikada) 117

27. Zapovednaya 119

28. Zvezdny Duet (Kosmonavtov/Dunayskiy) 121

29. Aeroport Rzhevka 123

30. Georgievsky 125

31. Nevsky 1 127

32. Nevsky 68 129

33. Smolny Park (office buildings) 131

34. Donskoy Olimp 133

35. Grunvald 135

36. LENINGRADKA 58 137

37. Krasny Mayak 139

38. ZIL-YUG 141

39. ZILART 143

40. Luchi 146

41. Luchi-2 148

42. Novoe Domodedovo 150

43. Nakhabino Yasnoe 152

44. Noviy Balchug 154

45. Avtozavodskaya 156

46. Tverskoy Blvd 158

47. Davydkovskaya 160

48. Rassvetny 162

49. Khrustalniye Klyuchi 164

50. Michurinskiy 166

51. Academichesky 169

52. Flagman 171

53. VIZ 173

54. Tsvetnoy Bulvar (Blyukhera) 175

55. Voskhod 177 Appendix 3 Market overview 179

Office market overview of St. Petersburg 180

Office market overview of Moscow 190

Residential market overview of St. Petersburg and Leningradskaya Oblast’ 207

Residential market overview of Moscow 271

Residential market overview of Yekaterinburg 284 Appendix 4 – Residential market segmentation according to the current classification 296

Appendix 5 – Office market segmentation according to the current classification 299

Appendix 6 – Valuation of properties located in Germany 305

56. Leipzig 306

57. Landshut 312

58. Munich 318

Galina Aleksandrovna Volchetskaya

LSR Group OJSC 15-H, liter Б, 36, Kazanskaya St, St Petersburg, 190031, Russia

Date of issue: March 12, 2019

Ref: PO-25/2018

Dear Ms. Volchetskaya,

Property: the portfolio of real estate assets in Russia (St Petersburg, Moscow, Yekaterinburg) and Germany (Leipzig, Landshut, Munich)

1. Instructions

Engagement of Knight Frank Saint-Petersburg AO Instructions 1.1 We refer to Agreement PO-25/2018 of December 18, 2018 and to our subsequent Terms of Engagement letter and General Terms of Business for Valuations, to provide a valuation report on the portfolio of real estate assets in Russia (St Petersburg, Moscow, Yekaterinburg) and Germany (Leipzig, Landshut, Munich). Copies of Terms of Engagement letter and General Terms of Business for Valuations are attached in Appendix 1.

The properties that are the subject of this Valuation Report, each a Property and together the Properties are listed below as follows.

1.2 This valuation has been carried out in accordance with the Agreement PO-25/2018, the Terms of Engagement and our General Terms of Business for Russian Valuations (General Terms of Business), as attached in Appendix 1.

Client 1.3 Our client for this instruction is LSR Group OJSC (the Client).

Valuation 1.4 This valuation has been undertaken in accordance with the Royal Institution of standards Chartered Surveyors (RICS) Valuation - Professional Standards June 2017 Global & UK edition (the Red Book) including the International Valuation Standards (2017).

The report provided under this instruction has no status of valuation services in Russia and is not carried out in accordance with the requirements stipulated in the Federal Law On Valuation in the Russian Federation № 135 dated July 29, 1998 as

amended.

Purpose of 1.5 You have confirmed that this valuation report is required for the purposes of the valuation preparation of financial statements in accordance with International Financial Reporting Standards for the year 2018. It also may be used for publication on the Clients’ website, providing to counterparties and the attraction of investors.

In addition to the requirement to identify the asset to be valued in IVS 101 para 20.3(d) the scope of work shall include confirmation of how that asset is used or classified by the reporting entity.

The required accounting treatment for identical or similar assets or liabilities can differ according to how they are used by an entity. Commercial Properties within the portfolio are mainly owned by the entity for the purpose of the entity's business, residential Properties are treated as stock in trade like in the case of a development company.

Conflict of 1.6 In 2016, 2017 and 2018 we’ve already prepared Valuation reports No PO-17/2015 of interest March 17, 2016, No PO-20/2016 of March 10, 2017 and No PO-36/2017 of March 12, 2018 on the Portfolio of the Properties owned by the Client.

Nevertheless we confirm that we do not have any material connection or involvement giving rise to a conflict of interest and are providing an objective and unbiased valuation.

1.7 We are acting as External Valuers, as defined in the Red Book.

Responsibility to 1.8 Our valuation report is only for the use of our Client and no responsibility is accepted third parties to any third party for the whole or any part of its contents.

Disclosure & 1.9 Except as stated above, neither the whole nor any part of this valuation nor any publication reference thereto may be included in any published document, circular or statement nor published in any way without our prior written approval of the form or context in which it may appear. If our opinion of values is disclosed to the parties other than the addressee of this report, the basis of valuation should be stated.

Limitations on 1.10 No claim arising out of or in connection with this valuation report may be brought liability against any member, employee, partner or consultant of Knight Frank St Petersburg AO. Those individuals will not have a personal duty of care to any party and any claim for losses must be brought against Knight Frank St Petersburg AO.

1.11 Knight Frank St Petersburg AO’s total liability for any direct loss or damage caused by negligence or breach of contract in relation to this instruction and valuation report is limited to the amount specified in the Terms of Engagement letter/ General Terms of Business, a copy of which is attached. We do not accept liability for any indirect or consequential loss (such as loss of profits).

Expertise 1.12 The valuer, on behalf of Knight Frank St Petersburg AO with the responsibility for this report is Svetlana Shalaeva, RICS Registered Valuer, Head of Valuation Department, Knight Frank St Petersburg AO.

Parts of this valuation have been undertaken by additional valuers: Dmitry Tsatskin, Project Manager, Galiya Chelysheva, Project Manager, Konstantin Fomin, Director, Key Client Manager, Valuations, Simon Volz, Senior consultant as listed below in accordance with VPS 3 of the Red Book.

We confirm that the valuers meet the requirements of the Red Book, having sufficient current knowledge of the particular market and the skills and understanding to undertake the valuation competently. Furthermore we confirm that valuation has been undertaken by all the valuers involved in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation - Professional Standards June 2017 Global & UK edition (the Red Book) including the International Valuation Standards (2017).

Vetting 1.13 This report has been vetted as part of Knight Frank St Petersburg AO’s quality assurance procedures.

Table 1. List of the Properties within the portfolio

Leningradskaya Oblast' Business centers Lit В, 36, 1 Kazanskaya 36 Kazanskaya St, 0.25 7,434.0 4,956 4,956 4,956 freehold operating offices 100% St.Petersburg Zolotaya 44, Kazanskaya St, 2 0.15 3,059.3 2,699 2,699 2,699 leasehold operating offices 100% Kazanskaya St.Petersburg Lit A, 39, Paradny Kvartal 3 Kirochnaya St, 9.57 3,718 2,886 2,886 - leasehold operating offices 100% BC 11 St.Petersburg Lit A, 18, Fonarny land plot is 4 Kazanskaya 60 - 2,187 2,019 2,019 2,019 operating offices 100% Lane, St.Petersburg not formed Lit M, 39, 5 Radishcheva 39 Radishcheva St, - 276.0 276 276 276 freehold operating offices 100% St.Petersburg TOTAL, business 9.97 16,674 12,836 12,836 12,836 centers Elite (A) class residential properties Lit A, 4, Smolnogo 6 Smolny Park 8.65 123,032 64,983 2,431 2,431 199 leasehold 100% 100% 90% St, St.Petersburg Phase 2, bldgs. 40,032 24,503 - - 25 Mar-12 Dec-19 completed 100% 99% Б2,5,6 Phase 3 49,844 22,949 - - 156 Nov-12 Dec-19 completed 100% 94% Phase 4 33,156 17,531 2,431 2,431 18 Nov-13 Dec-21 completed 100% 78% Lit A, 29, Morskoy 7 Verona 0.36 20,329 12,044 2,968 2,800 168 46 Aug-15 Dec-21 freehold completed 100% 100% 67% Pr, St.Petersburg Neva Art, Neva 17, Remeslennaya 8 Residence (REB 7.82 216,942 116,397 116,304 63,298 3,489 49,517 1,238 Feb-19 Jun-24 freehold design 100% 22% 0% St., St.Petersburg Flota) 9 Neva Haus 9,11, Petrovskiy Pr. 6.28 190,789 110,747 79,191 75,548 3,644 879 Oct-17 Dec-23 freehold construction 100% 36% 22%

Osobnyak Lit A, 64, Martynova 10 0.21 1,238 1,238 1,238 1,238 Dec-23 freehold completed 100% 100% 0% Martynova Emb Emb, St.Petersburg Plots 5, Baskov 11 Russkiy Dom 2.40 93,725 56,269 7,679 6,289 1,247 143 226 Apr-15 Jun-21 freehold completed 100% 99% 75% Lane

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 13

Breakdown of areas (unsold / unleased net area), sq m Presold / Stage of Net unsold Constru Estimate Project preleased development Net sellable / / unleased ction d sales complet of net (commissioning LSR Development Site Area, Gross building leasable area, net area, start complet ion, % sellable / No Address Parking, Tenure / construction/ share, Project ha area, sq m excl. car excl. car Residential Offices Retail Other date ion date (to the leasable lots design/ % parking, sq m parking, sq (month (month borne areas, incl. concept m / year) / year) costs) car development parking, % TOTAL, elite (A) class residential 25.72 646,055 361,677 209,812 150,366 8,380 - 51,066 2,588 properties Business (B) class residential properties Lit Ж, 10, Medikov 12 Europa City 7.36 135,554 84,120 1,716 1,336 357 23 248 freehold 100% 100% 94% Av, St.Petersburg Phase 3 , 70,109 42,675 338 219 119 122 Mar-12 Jun-19 completed 100% 96% Phase 4 , 65,445 41,445 1,377 1,117 238 23 126 Apr-13 Jun-20 completed 100% 92% Plot 151, Block 66a, 13 Tri Vetra Savushkina St, 3.05 108,246 55,871 9,876 8,106 1,665 106 530 Jun-15 Jun-21 leasehold completed 100% 99% 69% St.Petersburg Moskovskoye Lit Д, Moskovskoye 14 1.85 40,124 24,387 16,553 1,855 1,807 12,890 109 freehold 100% 51% 33% Hgwy Hwy, St.Petersburg NEO 1.15 15,963 9,496 1,902 1,855 , 47 25 Dec-15 Dec-20 completed 100% 71% NEO Park 0.70 24,161 14,891 14,651 0 1,807 12,844 84 Nov-18 Dec-23 design 8% 1% Nevskaya Guba, 15 Morskoy Fasad 33.90 885,876 531,881 531,654 503,088 25,035 3,531 4,022 Mar-19 Dec-28 freehold design 100% 11% 0% plots 12, 13, 14, 15 3, Lit. А, К, Д, 16 Riviere Noire Chernoy Rechki 1.68 53,098 32,299 24,509 22,430 2,079 212 Nov-18 Dec-22 freehold design 100% 22% 13% Emb. 14, Smolenskaya St, 17 Bogemia 0.69 34,352 22,130 5,722 5,390 331 73 May-16 Jun-21 freehold completed 100% 96% 66% St.Petersburg TOTAL, business (B) class 48.53 1,257,250 750,688 590,029 542,205 31,274 0 16,550 5,194 residential properties Mass market (С) class residential properties Yuzhnaya Block 28, 28a, 18 Akvatoriya/Parus Doblesti St, 23.90 538,320 325,391 54,218 8,528 13,128 32,562 1,664 leasehold 100% 87% 80%

a St.Petersburg Yuzhnaya Aquatoria, plot 39,307 59 59 214 Aug-11 Jun-19 completed 100% 97% 13 Yuzhnaya Aquatoria, plot 63,576 75 75 411 Aug-11 Jun-19 completed 93% 97% 14

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 14

Breakdown of areas (unsold / unleased net area), sq m Presold / Stage of Net unsold Constru Estimate Project preleased development Net sellable / / unleased ction d sales complet of net (commissioning LSR Development Site Area, Gross building leasable area, net area, start complet ion, % sellable / No Address Parking, Tenure / construction/ share, Project ha area, sq m excl. car excl. car Residential Offices Retail Other date ion date (to the leasable lots design/ % parking, sq m parking, sq (month (month borne areas, incl. concept m / year) / year) costs) car development parking, % Yuzhnaya Aquatoria, plot 36,063 36,040 3,478 32,562 465 Apr-17 Dec-21 design 6% 0% 24 Yuzhnaya 56,878 627 123 504 217 Jan-12 Sep-20 leasehold completed 100% 96% Aquatoria, plot 9 Yuzhnaya 12,144 3 Jan-12 Dec-17 completed 99% 100% Aquatoria, plot 1 Yuzhnaya 85,699 17,332 8,261 9,071 354 May-13 Jun-20 completed 99% 77% Aquatoria, plot 2 Yuzhnaya 31,724 85 85 0 Aug-11 Jun-19 completed 100% 100% Aquatoria, plot 6 Plots 3, 8, 12, 5, 7, 3*, 13, 8*, 1, Lit Ф, 19 Sophiya 21.90 419,273 313,698 1,097 229 868 731 May-07 Sep-20 freehold construction 100% 97% 98% 49, 6, Yuzhnoe Hwy, St.Petersburg 12, Marshala Kalina Park 20 Blukhera, 18.70 513,877 342,637 2,565 2,441 124 313 Aug-10 Dec-20 freehold construction 100% 99% 97% (Kaleidoskop) St.Petersburg Murinskaya Road, 21 Novaya Okhta 88.28 915,323 764,815 117,076 113,231 3,845 843 Jan-12 Dec-23 freehold construction 100% 89% 80% St.Petersburg 145, Piskarevsky Av, 22 Tsvetnoy Gorod 163.92 1,294,091 1,036,874 877,076 798,019 23,057 56,000 5,273 Jan-15 Dec-25 freehold construction 100% 22% 11% St.Petersburg 145, Piskarevsky Av, 23 Ruchyi 19.94 253,825 177,005 171,820 166,166 5,654 986 Jun-17 Jun-23 freehold design 100% 4% 1% St.Petersburg Tsvetnoy Gorod 145, Piskarevsky Av, concept 24 199.27 2,012,612 1,354,674 1,354,674 1,328,625 26,049 7,657 Sep-17 Dec-33 freehold 100% 7% 0% Zapad St.Petersburg development Plot 208, right to Prigorodny 25 Shuvalovsky 30.90 639,598 422,034 103,665 99,573 3,667 424 1,501 May-12 Jun-23 acquire construction 100% 75% 70% (Kamenka), freehold St.Petersburg 42, Oktyabrskaya 26 Tsivilizatsiya 58.97 1,284,729 835,948 559,976 475,460 24,655 59,860 4,381 freehold 100% 24% 26% Emb, St.Petersburg Tsivilizatsiya 30.46 692,951 438,884 183,440 111,034 12,546 59,860 2,510 Oct-14 Aug-23 construction 38% 47% Rudas Tsivilizatsiya 28.51 591,778 397,064 376,536 364,426 12,110 1,871 Feb-16 Dec-24 construction 8% 2% Barrikada Plots 14,17, Orlovo- 27 Zapovednaya 5.92 134,874 93,018 92,857 89,876 2,981 744 Nov-14 Dec-23 freehold design 100% 24% 0% Denisovskiy Av.

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 15

properties 14, Vilenskiy Lane, 30 Georgievsky 9.57 12,607 12,074 12,074 12,074 Oct-12 freehold completed St.Petersburg 1, Nevsky Av, 31 Nevsky 1 0.25 9,357 8,509 8,509 8,509 20 Sep-16 freehold construction St.Petersburg 68, Nevsky Av / Lit Б, 40/68, Fontanka 32 Nevsky 68 0.15 8,400 8,400 8,400 8,400 freehold completed River Emb, St.Petersburg 8,10, Smolnaya 33 Smolny Park Embankment, St , 7,567 7,567 7,567 7,567 Nov-13 Dec-21 leasehold completed Petersburg Building B11 , 476 476 476 476 Building B12 , 7,091 7,091 7,091 7,091 TOTAL, commercial 9.97 37,930 36,549 36,549 36,549 20 properties TOTAL, properties, located in Saint- 904 11,657,014 7,883,180 5,212,442 4,786,066 209,914 - 216,463 32,152 Petersburg and Leningradskaya Oblast'

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 16

Breakdown of areas (unsold / unleased net area), sq m Presold / Stage of Net unsold Constru Estimate Project preleased development Net sellable / / unleased ction d sales complet of net (commissioning LSR Development Site Area, Gross building leasable area, net area, start complet ion, % sellable / No Address Parking, Tenure / construction/ share, Project ha area, sq m excl. car excl. car Residential Offices Retail Other date ion date (to the leasable lots design/ % parking, sq m parking, sq (month (month borne areas, incl. concept m / year) / year) costs) car development parking, % Moscow and Moscovskaya Oblast' Business (B) class residential properties Bldg 19, 21, 34 Donskoy Olimp Serpukhovsky Val 4.72 239,050 89,083 8,570 250 3,960 1,704 2,657 493 May-13 Dec-20 freehold completed 100% 99% 89% St, Moscow Zarechye Settlement, freehold to 35 Grunvald Odintsovo District, 4.10 58,331 27,260 1,484 593 891 87 Mar-05 Aug-21 Housing completed 100% 100% 93% Moscovskaya Code Oblast' LENINGRADKA 58, Leningradskoye 36 1.50 94,085 53,750 44,714 42,796 1,917 524 Mar-18 Jun-21 freehold construction 100% 28% 9% 58 Hwy, Moscow 26, Krasnogo concept 37 Krasniy Mayak Mayaka St., 4.23 154,025 101,525 101,525 92,217 9,308 845 Jan-20 Jun-23 freehold 100% 13% 0% development Moscow 23, Avtozavodskaya concept 38 ZiL Yug 59.30 708,256 485,301 485,301 410,921 74,380 5,718 Jan-20 Dec-31 leasehold 100% 3% 0% St, Moscow development 23, Avtozavodskaya 39 Zilart 65.09 1,462,002 1,009,731 847,660 610,449 237,211 10,374 Aug-15 Jul-27 leasehold construction 100% 27% 12% St, Moscow TOTAL, business (B) class 138.94 2,715,748 1,766,649 1,489,254 1,156,634 327,368 1,704 3,548 18,041 residential properties Mass market (С) class residential properties Bldg 6, 40 Luchi Proizvodstvennaya 39.09 892,689 541,927 236,354 203,924 28,491 3,939 2,392 Jan-16 Oct-26 leasehold construction 100% 43% 43% St, Moscow Proizvodstvennaya concept 41 Luchi-2 4.50 133,486 77,175 77,175 72,675 4,500 1,017 Jan-20 Oct-22 leasehold 100% 5% St, Moscow development Mikrorayon Zapadny, freehold to Novoe 42 Domodedovo, 39.34 568,425 317,786 1,700 1,700 339 Aug-11 Aug-21 Housing completed 100% 100% 98% Domodedovo Moscovskaya Code Oblast'

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 17

properties Bldgs. 1, 2, 3, 9, 44 Novy Balchug Sadovnicheskaya 0.40 24,360 24,360 24,360 24,360 Dec-14 Oct-20 leasehold construction 100% 80% 0% St, Moscow TOTAL, commercial 0.40 24,360.14 24,360.14 24,360 24,360 properties Business centers 22, Avtozavodskaya 45 Avtozavodskaya 0.76 7,767 7,314 6,929 6,929 16 leasehold operating offices 100% St, Moscow 16, Tverskoy Blvd, 46 16, Tverskoy Blvd 0.14 4,904 2,292 2,292 2,292 leasehold operating offices 100% Moscow 16, Davydkovskaya 47 Davydkovskaya - 1,808 1,737 1,737 1,737 6 leasehold operating offices 100% St, Moscow TOTAL, business 0.90 14,479 11,343 10,958 10,958 22 centers TOTAL, properties, located in Moscow and 253.18 4,591,328 2,889,104 1,875,264 1,464,958 375,341 1,704 33,261 21,811 Moscovskaya Oblast'

Yekaterinburg Mass market (С) class residential properties

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 18

Yekaterinburg Khrustalniye Latviyskaya St, 49 11.02 290,316 224,385 150,080 147,735 179 2,166 Apr-14 Sep-24 leasehold construction 100% 33% 29% Klyuchi Yekaterinburg Sukhodolskaya St, 50 Michurinsky 50.62 347,906 271,416 88,305 87,923 276 107 228 Nov-12 Dec-22 freehold construction 100% 70% 63% Yekaterinburg Verkhneuphaleyska 51 Akademichesky ya St, 13.46 301,008 212,364 180,354 166,249 7,379 6,726 600 Jun-17 Sep-25 freehold construction 100% 19% 12% Yekaterinburg Flagman Repina St, 52 (Repina- 3.39 135,564 92,827 33,129 31,691 1,437 140 Apr-15 Dec-21 freehold construction 100% 66% 62% Yekaterinburg Zavodskaya) 53 VIZ Bol`shoy Konnyy 14.30 245,722 150,000 150,000 150,000 1,200 Jan-19 Dec-25 freehold design 95% 10% 0% 54 Tsvetnoy Bulvar Bl'ukhera 6.05 184,881 128,139 81,381 75,366 3,477 2,539 1,359 Aug-17 Dec-23 freehold construction 100% 24% 30% 25, 40-Letiya 55 Voskhod Komsomola St, 1.20 47,479 34,065 15,281 14,961 321 Jan-18 Feb-20 freehold construction 100% 53% 41% Yekaterinburg TOTAL, properties, 108.78 1,761,574 1,258,115 698,858 674,206 12,747 0 11,904 3,695 located in Yekaterinburg Germany Brandenburger Str. 56 Leipzig / Sachsenstr., 0.54 25,000 25,000 25,000 25,000 0 freehold construction 100% Section 3918/37 6, an der 57 Landshut 0.12 2,500 2,500 2,500 2,500 freehold construction 100% Oberfurung 58 Munich 1,st. Duke Henry 0.08 1,446 1,110 1,110 119 991 23 freehold operating offices 100% TOTAL, properties, 0.74 28,946 28,610 28,610 119 991 0 27,500 23 located in Germany TOTAL, 1,256.79 18,038,862 12,059,009 7,815,175 6,925,349 598,994 1,704 289,129 57,681 properties

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 19

Scope of enquiries & investigations Inspection 1.14 You have instructed us to undertake a restricted service, namely: we have carried out limited external inspection of all the Properties within the portfolio, internal inspection of business centres in St. Petersburg.

Our limited inspection of the Properties was undertaken on December 19, 2018 – January 31, 2019 by

● Galia Chelysheva, Project Manager – in Yekaterinburg,

● Konstantin Fomin, Director, Key Client Manager, Valuations, Knight Frank AO – in Moscow,

● Elena Ivanova, Valuer, Dmitry Tsatskin, Project manager, Svetlana Shalaeva, Head of Valuation, Knight Frank St Petersburg AO – in St. Petersburg;

● Cristoph Gerlinger, Simon Volz, Knight Frank Germany – in Munich, Leipzig and Landshut respectievely.

We assume there have been neither material changes to the physical attributes of the property, nor changes to the nature of its location, since the last inspection up to valuation date.

This fact significantly limits the extent to which reliance can be placed upon this valuation report.

Investigations 1.15 The extent of enquiries/ investigations made is set out in our General Terms of Business. In carrying out this instruction we have undertaken verbal/ web based enquiries referred to in the relevant sections of this report. We have relied upon this information as being accurate and complete.

Information 1.16 In this report we have been provided with information by the Client. We have relied provided upon this information as being materially correct in all aspects.

1.17 In particular, we detail the following:

● Information relating to the extent of the property, produced by special services of public authorities Title documents (ownership certificates and lease agreements);

● Information relating to the proposed development scheme, produced by the Client;

● Information relating to the planning status of the Property, from the Client;

● Information relating to the construction costs, terms of project realization of the proposed development as produced by the Client;

● Information relating to the sales prices of the proposed development as produced by the Client.

The information pointed above is not attached to this report but is kept in the valuers’ archive and can be provided at a request if necessary.

1.18 In the absence of any documents or information provided, we have had to rely solely upon our own enquiries as outlined in this report. Any assumptions resulting from the lack of information are also set out in the relevant section of this report.

1.19 In the presence of data difference in the documents or information provided, we have had to rely upon our own enquiries or more precise information provided by the Client as outlined in this report. Any assumptions resulting from the lack of information are also set out in the relevant section of this report.

Valuation bases 1.20 In accordance with your instructions, we have provided opinions of value on the following bases:

Market Value 1.21 The Market Value (Fair value) of the freehold interest in the Properties in its current Fair value physical condition, subject to the existing tenancy / ies / with vacant possession (where applicable) or intended for / in course of development according to the proposed development scheme, produced by the Client (where applicable). Our key assumptions are set out in the Valuation Section of this report.

Valuation date 1.22 The valuation date is December 31, 2018

2. The property

Location Location 2.1. The brief description of the location and the street plans of the Properties within the portfolio are attached in Appendix 2.

Site Site area 2.2. The brief descriptions of the sites of the Properties within the portfolio are attached in Appendix 2.

Description General 2.3. The brief description of the Properties within the portfolio and its images are information attached in Appendix 2.

Accommodation Measurement 2.4. We were not able neither to inspect internally all the buildings and sites within the portfolio nor to take sample check measurements to ensure that the measurements fall within acceptable tolerance.

Thus we have relied upon the measurements of Property areas provided to us by the Client.

2.5. A breakdown of floor areas by tenancy is not attached to this report but is kept in the valuers’ archive and can be provided at a request if necessary.

2.6. The valuation given does not include any plant & machinery or contents within the property.

Services 2.7. In accordance with the General Terms of Business enclosed in Appendix 1, no tests have been undertaken on any of the services.

2.8. Specifications on connecting utilities are not provided.

We have assumed for the purposes of this valuation that mains heating, cold and hot water, electricity, sewerage / drainage and telecommunications will be all available for the properties under development (in course of construction).

We also have assumed that these services will have sufficient capacity to accommodate the proposed development and that no works are required to upgrade their capacity. Should any upgrades be required and the costs required are to be borne by the Developer, our opinion of property value may be affected.

Legal title Land register 2.9. As stated in our General Terms of Business, we do not undertake searches or searches inspections of any kind (including web based searches) for title or price-paid information in any publicly available land registers.

Sources of 2.10. We have been provided with the Properties’ title information by the Client. Information Nevertheless we have not been provided with all the ownership certificates and land long-term lease agreements to verify it. Thus, in our valuation, we have assumed a good and marketable freehold (to the land plots and buildings) or long-term leasehold (to the land plots) title and that all documentation is satisfactorily drawn.

2.11. We recommend that our understanding of all legal title issues is referred to your legal advisers for their confirmation that our understanding is correct. It is also particularly important that your legal advisers should be asked to check whether there have been any transactions relating to the property which reveal price paid information which we should be made aware of.

2.12. If any matters come to light as a result of your legal adviser’s review of these issues, we request that these matters are referred back to us as this information may have an important bearing upon the values reported.

Tenure 2.13. Thus we have made the assumption that that title to the Properties is the following (presented in the table below):

Table 2. Tenure

Gross building No Development Project Address Site Area, ha Land owner Building owner Tenure area, sq m

Saint-Petersburg and

Leningradskaya Oblast' Business centers Lit В, 36, Kazanskaya St, 1 Kazanskaya 36 0.25 A Plus Estate AO 7,434.0 A Plus Estate ZAO freehold St.Petersburg 44, Kazanskaya St, 2 Zolotaya Kazanskaya 0.15 A Plus Estate AO 3,059.3 A Plus Estate ZAO leasehold St.Petersburg LSR. Lit A, 39, Kirochnaya St, Nedvizhimost'- 3 Paradny Kvartal BC 11 9.57 3,718 leasehold St.Petersburg Severo-Zapad OOO Lit A, 18, Fonarny Lane, land plot is not 4 Kazanskaya 60 - A Plus Estate AO 2,187.1 A Plus Estate ZAO St.Petersburg formed Stroitelnaya Korporatsiya Lit M, 39, Radishcheva St, 5 Radishcheva 39 - Vozrozhdeniye 276.0 A Plus Estate ZAO freehold St.Petersburg Sankt-Peterburga OAO TOTAL, business centers 9.97 16,674 Elite (A) class residential

properties Lit A, 4, Smolnogo St, 6 Smolny Park 8.65 Smolny Park OOO 123,032 leasehold St.Petersburg Phase 2, bldgs. Б2,5,6 40,032 Phase 3 49,844 Phase 4 33,156 Stroitelnaya Korporatsiya Lit A, 29, Morskoy Pr, 7 Verona 0.36 Vozrozhdeniye 20,329 freehold St.Petersburg Sankt-Peterburga OAO LSR. Neva Art, Neva Residence (REB 17, Remeslennaya St., Nedvizhimost'- 8 7.82 216,942 freehold Flota) St.Petersburg Severo-Zapad OOO LSR. Nedvizhimost'- 9 Neva Haus 9,11, Petrovskiy Pr. 6.28 190,789 freehold Severo-Zapad OOO Stroitelnaya Stroitelnaya Korporatsiya Korporatsiya Lit A, 64, Martynova Emb, 10 Osobnyak Martynova Emb 0.21 Vozrozhdeniye 1,238 Vozrozhdeniye freehold St.Petersburg Sankt-Peterburga Sankt-Peterburga OAO OAO LSR. Nedvizhimost'- 11 Russkiy Dom Plots 5, Baskov Lane 2.40 93,725 freehold Severo-Zapad OOO TOTAL, elite (A) class 25.72 646,055 residential properties Business (B) class residential

properties Stroitelnaya Korporatsiya Lit Ж, 10, Medikov Av, 12 Europa City 7.36 Vozrozhdeniye 135,554 freehold St.Petersburg Sankt-Peterburga OAO Phase 3 70,109

Phase 4 65,445

LSR. Plot 151, Block 66a, Nedvizhimost'- 13 Tri Vetra Savushkina St, 3.05 108,246 leasehold Severo-Zapad St.Petersburg OOO

Gross building No Development Project Address Site Area, ha Land owner Building owner Tenure area, sq m

LSR. Lit Д, Moskovskoye Hwy, Nedvizhimost'- 14 Moskovskoye Hgwy 1.85 40,124 freehold St.Petersburg Severo-Zapad OOO NEO 1.15 15,963 NEO Park 0.70 24,161 LSR. Nevskaya Guba, plots 12, Nedvizhimost'- 15 Morskoy Fasad 33.90 885,876 freehold 13, 14, 15 Severo-Zapad OOO LSR. 3, Lit. А, К, Д, Chernoy Nedvizhimost'- 16 Riviere Noire 1.68 53,098 freehold Rechki Emb. Severo-Zapad OOO LSR. 14, Smolenskaya St, Nedvizhimost'- 17 Bogemia 0.69 34,352 freehold St.Petersburg Severo-Zapad OOO TOTAL, business (B) class 48.53 1,257,250 residential properties Mass market (С) class

residential properties LSR. Block 28, 28a, Doblesti St, Nedvizhimost'- 18 Yuzhnaya Akvatoriya/Parusa 23.90 538,320 leasehold St.Petersburg Severo-Zapad OOO Yuzhnaya Aquatoria, plot 13

Yuzhnaya Aquatoria, plot 14

Yuzhnaya Aquatoria, plot 24

Yuzhnaya Aquatoria, plot 9 leasehold

Yuzhnaya Aquatoria, plot 1

Yuzhnaya Aquatoria, plot 2

Yuzhnaya Aquatoria, plot 6

LSR. Plots 3, 8, 12, 5, 7, 3*, 13, Nedvizhimost'- 19 Sophiya 8*, 1, Lit Ф, 49, 6, Yuzhnoe 21.90 419,273 freehold Severo-Zapad Hwy, St.Petersburg OOO LSR. 12, Marshala Blukhera, Nedvizhimost'- 20 Kalina Park (Kaleidoskop) 18.70 513,877 freehold St.Petersburg Severo-Zapad OOO LSR. Murinskaya Road, Nedvizhimost'- 21 Novaya Okhta 88.28 915,323 freehold St.Petersburg Severo-Zapad OOO LSR. 145, Piskarevsky Av, Nedvizhimost'- 22 Tsvetnoy Gorod 163.92 1,294,091 freehold St.Petersburg Severo-Zapad OOO LSR. 145, Piskarevsky Av, Nedvizhimost'- 23 Ruchyi 19.94 253,825 freehold St.Petersburg Severo-Zapad OOO LSR. 145, Piskarevsky Av, Nedvizhimost'- 24 Tsvetnoy Gorod Zapad 199.27 2,012,612 freehold St.Petersburg Severo-Zapad OOO LSR. Plot 208, Prigorodny Nedvizhimost'- right to acquire 25 Shuvalovsky 30.90 639,598 (Kamenka), St.Petersburg Severo-Zapad freehold OOO 42, Oktyabrskaya Emb, 26 Tsivilizatsiya 58.97 1,284,729 freehold St.Petersburg LSR. Nedvizhimost'- Severo-Zapad Tsivilizatsiya Rudas 30.46 692,951 OOO / LSR. Stenoviye materialy OOO LSR. Nedvizhimost'- Tsivilizatsiya Barrikada 28.51 Severo-Zapad 591,778 OOO / Tsementniy elevator, OAO LSR. Plots 14,17, Orlovo- Nedvizhimost'- 27 Zapovednaya 5.92 134,874 freehold Denisovskiy Av. Severo-Zapad OOO

Gross building No Development Project Address Site Area, ha Land owner Building owner Tenure area, sq m

LSR. Plots 1,2, Kosmonavtov Pr. Zvezdny Duet Nedvizhimost'- 28 (south-east of Svirskaya St 2.43 74,943 leasehold (Kosmonavtov/Dunayskiy) Severo-Zapad crossing), St.Petersburg OOO Airport Rzhevka, Kovalevo LSR. Settlement, Vsevolozhsky Nedvizhimost'- 29 Aeroport Rzhevka 175.34 1,617,639 freehold District, Leningradskaya Severo-Zapad Oblast' OOO TOTAL, mass market (С) class 809.47 9,699,105 residential properties Commercial properties Stroitelnaya Korporatsiya 14, Vilenskiy Lane, 30 Georgievsky 9.57 12,607 Vozrozhdeniye freehold St.Petersburg Sankt-Peterburga OAO Stroitelnaya Stroitelnaya Korporatsiya Korporatsiya Vozrozhdeniye 31 Nevsky 1 1, Nevsky Av, St.Petersburg 0.25 9,357 Vozrozhdeniye freehold Sankt-Peterburga Sankt-Peterburga OAO / Nevinvest OAO OOO LSR. LSR. 68, Nevsky Av / Lit Б, 40/68, Nedvizhimost'- Nedvizhimost'- 32 Nevsky 68 Fontanka River Emb, 0.15 8,400 freehold Severo-Zapad Severo-Zapad St.Petersburg OOO OOO 8,10, Smolnaya 33 Smolny Park 7,567 leasehold Embankment, St Petersburg Building B11 476 Building B12 7,091 TOTAL, commercial properties 9.97 37,930 TOTAL, properties, located in Saint-Petersburg and 904 11,657,014

Leningradskaya Oblast' Moscow and Moscovskaya

Oblast' Business (B) class residential

properties LSR. Bldg 19, 21, Serpukhovsky 34 Donskoy Olimp 4.72 Nedvizhimost'-M 239,050 freehold Val St, Moscow AO Zarechye Settlement, LSR. freehold to 35 Grunvald Odintsovo District, 4.10 Nedvizhimost'-M 58,331 Housing Code Moscovskaya Oblast' AO 58, Leningradskoye Hwy, Leningradka 58 36 LENINGRADKA 58 1.50 94,085 freehold Moscow OOO 26, Krasnogo Mayaka St., 37 Krasniy Mayak 4.23 154,025 freehold Moscow 23, Avtozavodskaya St, 38 ZiL Yug 59.30 Zil-Yug OOO 708,256 leasehold Moscow 23, Avtozavodskaya St, 39 Zilart 65.09 LSR. Ob'ekt'-M AO 1,462,002 leasehold Moscow TOTAL, business (B) class 138.94 2,715,748 residential properties Mass market (С) class

residential properties LSR. Bldg 6, Proizvodstvennaya 40 Luchi 39.09 Nedvizhimost'-M 892,689 leasehold St, Moscow AO Proizvodstvennaya St, 41 Luchi-2 4.50 133,486 leasehold Moscow Mikrorayon Zapadny, LSR. freehold to 42 Novoe Domodedovo Domodedovo, 39.34 Nedvizhimost'-M 568,425 Housing Code Moscovskaya Oblast' AO near Chernaya Village, Pavlo-Slobodskoye LSR. freehold to 43 Nakhabino Yasnoe Settlement, Istrinsky 30.01 Nedvizhimost'-M 242,140 Housing Code District, Moscovskaya AO Oblast' TOTAL, mass market (С) class 112.94 1,836,741 residential properties Commercial properties Bldgs. 1, 2, 3, 9, Velikan-XXI vek 44 Novy Balchug Sadovnicheskaya St, 0.40 24,360 leasehold OOO Moscow TOTAL, commercial properties 0.40 24,360.14 Business centers 22, Avtozavodskaya St, 45 Avtozavodskaya 0.76 A Plus Estate AO 7,767 A Plus Estate AO leasehold Moscow

Gross building No Development Project Address Site Area, ha Land owner Building owner Tenure area, sq m

Arkhproekt MTO 46 16, Tverskoy Blvd 16, Tverskoy Blvd, Moscow 0.14 4,904 leasehold OAO 16, Davydkovskaya St, 47 Davydkovskaya - A Plus Estate AO 1,808 A Plus Estate AO leasehold Moscow TOTAL, business centers 0.90 14,479 TOTAL, properties, located in Moscow and Moscovskaya 253.18 4,591,328 Oblast' Yekaterinburg Mass market (С) class

residential properties LSR. 2B, 40-Letiya Komsomola 48 Rassvetny 8.75 Nedvizhimost'-Ural 208,697 freehold St, Yekaterinburg ZAO LSR. Latviyskaya St, 49 Khrustalniye Klyuchi 11.02 Nedvizhimost'-Ural 290,316 leasehold Yekaterinburg ZAO LSR. Sukhodolskaya St, 50 Michurinsky 50.62 Nedvizhimost'-Ural 347,906 freehold Yekaterinburg ZAO LSR. Verkhneuphaleyskaya St, 51 Akademichesky 13.46 Nedvizhimost'-Ural 301,008 freehold Yekaterinburg ZAO LSR. 52 Flagman (Repina-Zavodskaya) Repina St, Yekaterinburg 3.39 Nedvizhimost'-Ural 135,564 freehold ZAO LSR. 53 VIZ Bol`shoy Konnyy 14.30 Nedvizhimost'-Ural 245,722 freehold ZAO LSR. 54 Tsvetnoy Bulvar Bl'ukhera 6.05 Nedvizhimost'-Ural 184,881 freehold ZAO LSR. 25, 40-Letiya Komsomola 55 Voskhod 1.20 Nedvizhimost'-Ural 47,479 freehold St, Yekaterinburg ZAO TOTAL, properties, located in 108.78 1,761,574 Yekaterinburg Germany Brandenburger Str. / 56 Leipzig Sachsenstr., Section 0.54 25,000 freehold 3918/37 57 Landshut 6, an der Oberfurung 0.12 2,500 freehold 58 Munich 1,st. Duke Henry 0.08 1,446 freehold TOTAL, properties, located in 0.74 28,946 Germany TOTAL, properties 1,256.79 18,038,862

In the absence of a copy lease, we have assumed that normal covenants and liabilities devolve upon the lessee. It is further assumed that there are no onerous restrictions or outgoings contained within the lease that would impact on the valuation provided within this report.

The owners of the Properties within the portfolio are several legal entities. We have been informed by the Client that all these legal entities are parts of LSR Group OJSC. Thus we assume that 100% ownership of LSR Group OJSC is to be valued.

To the title documents provided by the Client part of the Properties are either the shared ownership or leasehold. For the shared ownership we assume it is the share of freehold tenure of the Client in all the properties to be assessed. For leasehold property we assume it is freehold tenure of the improvements and leasehold of the land to be assessed.

2.14. These assumptions should be verified by your legal advisors. If they prove incorrect, any variation may have a material impact on value and should be referred back to us for further comment.

Rights of way 2.15. From the title documents we noted rights of way and easements referred to some of the Properties within the portfolio, which may potentially have a detrimental impact upon the valuations in this report. We recommend that your legal advisers are instructed to investigate this matter further.

Tenancies Vacant 2.16. Residential Properties. We have valued all the Properties within the portfolio being possession either under development (in course of construction) or intended for future development on the assumption of vacant possession.

Commercial Properties. As some commercial Properties and business centres within the portfolio are multi-tenanted i.e. occupied by the owner and other tenants we have valued it on the assumption of vacant possession after the lease expires.

Tenancy 2.17. Commercial Properties. We have been provided with the tenancy information by the information Client and have relied on that information as being correct. If the contract does not specify the expiration date we assumed the contract shall expire with one year after the valuation date. No additional verification has been undertaken.

Condition Scope of 2.18. As stated in the General Terms of Business attached, we have not undertaken a inspection building or site survey of the property.

2.19. During our limited inspection we did not inspect any inaccessible areas .We are unable to confirm whether the property is free from urgent or significant defects or items of disrepair.

Comments 2.20. Apart from any matters specifically referred to below, we have assumed that it is in sound order and free from structural faults, rot, infestation or other defects, and that the services are in a satisfactory condition.

At the date of inspection, the buildings (where applicable) appeared to be in a generally reasonable state of repair commensurate with their age and use. No urgent or significant defects or items of disrepair were noted which would be likely to give rise to substantial expenditure in the foreseeable future or which fall outside the scope of the normal annual maintenance programme.

Ground 2.21. We have not been provided with a copy of a ground condition report for the sites. conditions Residential Properties. We have assumed that there are no adverse ground or soil conditions and that the load bearing qualities of the site are sufficient to support the building constructed thereon.

Residential Properties. We have also assumed that no special efforts related to site preparation except already planned by the Client will be required for development.

Residential Properties. Should any preparations be required and the costs required are to be borne by the Developer, our opinion of property value may be affected.

Mining 2.22. The property is not situated in an area within which specialist consultants recommend that an Archive Mining Survey is commissioned due to former mining. Our valuation assumes that the property is not affected by mining, but, in the event that a survey reveals an adverse position, our valuation could be materially affected.

Environmental considerations Flooding 2.23. We have been unable to ascertain the risks of flooding relating to the subject property. We have therefore assumed that the risk is low due to the existing flood defence system of St Petersburg (Dam) and will not affect the property’s value.

Contamination 2.24. As stated in the General Terms of Business, investigations into environmental matters would usually be commissioned from suitably qualified environmental specialists. Knight Frank St Petersburg AO is not qualified to undertake scientific investigations of sites or buildings to establish the existence or otherwise of any environmental contamination, nor do we undertake searches of public archives to seek evidence of past activities which might identify potential for contamination.

2.25. Subject to the above, while carrying out our valuation inspection, we have not been made aware of any uses conducted at the subject property that would give cause for concern as to possible environmental contamination. Our valuation is provided on the assumption that the property is unaffected.

High voltage 1.23 The possible effects of electric and magnetic fields from high voltage electrical supply equipment equipment is a matter for specialist advice and we have assumed that there is no adverse effect on value.

Noise pollution 2.26. There are no airports, underground or train way in the vicinity of the Properties’ location. Nevertheless measuring noise pollution is a matter for specialist advice and we have assumed that there is no adverse effect on value.

Sustainability Sustainability 2.27. The issue of sustainability is becoming increasingly important to participants in the property market. There is a general expectation that buildings that minimise environmental impact through all parts of the building life cycle and focus on improved health for their occupiers may retain value over a longer term than those that do not.

Sustainable buildings should optimise utility for their owners and occupiers and the wider public, whilst minimising the use of natural resources and presenting low

environmental impact, including their impact on biodiversity. Definitions of sustainability address both social equity, for example, indigenous and affordable aspects, and environmental impacts, including energy use, both within and upstream of the building itself, in terms of the resources consumed in creating and operating it.

2.28. Some of the key issues relating to a building’s sustainability are:

● Land use; ● Design and configuration; ● Construction materials and services; ● Location and accessibility considerations; ● Fiscal and legislative considerations; ● Management and leasing issues. 2.29. From a value perspective, sustainability is likely to be a long term issue and its relative importance will change over time. Our valuation provides our opinion of value at the valuation date based on market related factors at that date.

EPCs 2.30. The properties within the Russian Federation do not require an Energy Performance Certificate (EPC) when bought, sold, built or rented. An EPC measures the asset rating of a building in relation to its energy performance.

Planning (Residential Properties) Sources of 2.31. We have not made any enquiries of the appropriate Planning Authority in respect of planning matters affecting the Properties. Where reassurance is required on planning matters, information we recommend that formal written enquiries should be undertaken by your legal advisors who should also confirm the position with regard to any legal matters referred to in our report. We assume that property will be constructed and will be occupied or used in accordance with the appropriate permissions and that there are no outstanding statutory notices.

2.32. These enquiries should not be taken as personal searches and information on the relevant website is assumed to be both accurate and up to date. For a formal planning enquiry to be made, the Local Authority will require written representation which has not been possible as part of our report.

2.33. We have been informed by the Client that the Property is intended for residential (residential premises) and commercial (apartments) development.

We have not been provided with further planning information by the local authorities and we depend on all information provided by the Client.

Thus it is assumed that the buildings to be constructed will comply with all necessary Planning and Building Regulation approvals as appropriate.

Construction 2.34. The Client has provided us the copies of planning permissions for the Properties permit within the portfolio under development (in some cases for the current phase of construction). For the Properties intended for future development design projects are

being prepared; thus planning permissions are not still obtained.

Planning 2.35. The property is not located within a Conservation Area. restrictions

Highways and access Highways 2.36. We are unaware of any highway proposals that may have a detrimental effect on the value of the Properties.

Residential Properties. We have assumed that all estate roads within the proposed scheme will be adopted and maintained at the expense of the Highways Authority.

Access 2.37. In reporting our opinion of value, we have assumed that there are no third party interests between the boundary of the Properties and the adopted highways and that accordingly the Properties has unfettered vehicular and pedestrian access.

2.38. We have assumed that there are no issues relating to visibility splays which may impact upon the use or proposed use of the Properties.

Statutory licences & certificates 2.39. The Subject Property is represented by undeveloped or partly developed land plots intended for residential and commercial development. Thus future development requires project design preparation and approval, and further construction permit obtaining. Construction permit is a document, which approves that project document complies with construction land plan or complies with plan of the territory, complies with survey of the territory in case of construction and re-construction of the buildings, complies with all regulations, statutory licences & certificates including health and safety standards, fire safety standards and access for disabled persons provision standards.

Residential Properties. Hence we have assumed in our valuation that property development will be undertaken in accordance with all regulations, statutory licences & certificates necessary to be complied with.

Commercial Properties. For the commercial office buildings with related land plots within the portfolio we have assumed in our valuation that all regulations have been complied with.

Leadership in 2.40. Some properties may have a Leadership in Energy and Environmental Design Energy and Certificate (LEED) when they are constructed, let or sold. Leadership in Energy and Environmental Environmental Design (LEED) is one of the most popular green building certification Design (LEED) program used worldwide. Developed by the non-profit U.S. Green Building Council (USGBC) it includes a set of rating systems for the design, construction, operation, and maintenance of green buildings, homes, and neighborhoodsthat aims to help building owners and operators be environmentally responsible and use resources

efficiently.

We are unaware of Client’s plans in respect of existing and future buildings LEED Certification. We have not seen any such documents relating to the property and cannot comment further in this regard.

Access for 2.41. Disability discrimination legislation provides that the majority of organisations must disabled persons make provision for disabled persons to have access to the goods and services they provide. This refers to both non-residential and residential buildings. This may require an access audit of the property to be undertaken and for specific arrangements relating to physical aspects of the building. We have not been provided with any information in this respect and our valuation has been undertaken on the assumption that the property is capable of being made fully compliant at no significant additional cost with all relevant disability access requirements.

Fire safety 2.42. It is a requirement for a fire safety risk assessment to be carried out and for a fire management plan to be maintained.

We have not viewed any such documents relating to the property and have assumed for the purposes of our valuation that the relevant requirements will be fully complied with.

3. Proposed development

Proposed scheme (Residential Properties) Source of 3.1. The Client provided us the design parameters for the construction of Properties information development considered in the valuation as the highest and best use.

Scheme outline 3.2. The design parameters of Properties development, provided by the Client, are attached in Appendix 2 within the description of the Properties.

Proposed 3.3. We have relied upon floor areas provided to us by the Client. accommodation We recommend that the design parameters for the construction are confirmed by the Developer’s architect.

3.4. A summary of the proposed specification is set out in Appendix 2 within the Properties’ description. In general terms we believe the proposed schemes are adequate for the developments of this nature and in this location. This will have a positive impact on the properties value because the costs to be beard will be warranted by the achievable sales and rental rates.

Building 3.5. In reporting our opinions of value we have assumed that the schemes are compliant Regulations with all Building Regulations and can be implemented in accordance with the plans provided. In the event that amendments need to be made to the proposed scheme as a consequence of it failing to meet statutory requirements, our opinions of value may be affected.

Rights of lights 3.6. We have assumed that the proposed scheme does not raise any issues with regard to rights of light and that no third parties are entitled to compensation and that no injunctions could be made in this respect.

Development costs (Residential Properties) General 3.7. As stated in our General Terms of Business, we strongly recommend that you supply comment us with build cost and other relevant information prepared by a suitably qualified construction cost professional, such as a quantity surveyor. We do not hold ourselves out to have expertise in assessing build costs and any property valuation advice provided by us will be stated to have been arrived at in reliance upon the build cost information supplied to us by you.

3.8. To verify build cost information supplied to us, we have had regard to published build cost information. There are severe limitations on the accuracy of build costs verified by this approach and professional advice on the build costs should be sought by you. The reliance which can be placed upon our advice in these circumstances is severely restricted. If you subsequently obtain specialist in build cost advice, we recommend that we are instructed to review our advice.

Source of cost 3.9. We have been supplied with a summary of the development project costs provided information by the Client.

Development project costs include construction costs, costs of utilities, site purchase and preparation (demolition of existing building excluding monuments of culture and art), project design and concept costs, engineering, and expenses for consultants and miscellaneous.

Construction costs include all the fees, material and labour costs incurred in building a structure. It involves construction of foundation, frames, overlappings, roof, openings (doors and windows), external walls with fit-out, floors fit-out.

Utilities include electricity and lightening and low-voltage systems, water supply and sewerage, gas.

Site preparation includes access road construction (if needed), existing buildings demolition, land plot clearing and levelling, drainage systems construction.

We have been provided with the development project costs (project budget) by the Client and have therefore relied upon them. Nevertheless we have undertaken web based enquiries referred to the development cost figures to verify the data provided by the Client. We have compared Client’s figures with the development cost figures (excl. land plot acquisition costs) produced by other developers and published on their web sites in the project declarations.

According to the opinion of experts from Knight Frank St Petersburg Strategic Consulting Department the applied construction costs are in line with the market level. The additional verification of the applied construction costs is based on the

experience of several consultancies for different development projects and on information from quantity surveyor and construction companies.

Build costs 3.10. In light of the above evidence, we have adopted the Developer’s estimate of project adopted costs (project budget) outlined above within our assessment. These development costs include VAT and exclude sales and marketing costs and legal and finance costs required to complete the scheme as set out in the excel tables with input provided by the Client.

These development project costs consist of already incurred and estimated outstanding costs. Since we provide our opinion on the value as of the valuation date, in our calculations we have adopted only estimated outstanding costs.

The information provided by the Client and pointed above is not attached to this report but is kept in the valuers’ archive and can be provided at a request if necessary.

3.11. Our valuation has been undertaken upon the assumption that the build costs adopted by us above are adequate to complete the development to the scheme adopted by us. Any variation in the build costs may have a significant impact upon the reported Market Value of the Properties. In this respect we additionally draw your attention to the importance of our recommendation in relation to the appointment of an independent quantity surveyor below.

Construction 3.12. We have assumed construction period in accordance with the Developer’s envisaged period and timetable when in our opinion this timetable complied with and reflected phasing construction periods witnessed at developments of a comparable scale.

Otherwise our knowledge of similar developments suggested a construction period allowance of approximately 1 year (per phase if applicable).

3.13. We have assumed construction phasing in accordance with the Client’s envisaged phasing. In the absence of construction phasing information provided by the Client, we have adopted the most probable market construction phasing. We have assumed 100,000 – 200,000 sqm of buildings constructed within 1 phase. We based on the experience due to several consulting service for different development projects and information from quantity surveyor and construction companies

3.14. Our assumed build costs have been inflated to account for predicted build cost inflation through the life of the development. This is because we have assumed that the Developer could not negotiate a fixed price contract at the outset of the development at the level of our assumed costs due to the long term construction period.

We have used the CPI forecast by the Ministry of Economic Development of Russian Federation to index the construction costs.

4. Market analysis

Market commentary 4.1. It should be appreciated that this section of the valuation report is published for general information only and while rigorous research has been used in preparing this analysis, the views and projections provided in the report should not form the basis of any formal decision. Being a general report, the material does not necessarily represent the view of Knight Frank St Petersburg AO in relation to specific properties or projects and no responsibility can be accepted by Knight Frank St Petersburg AO resulting from the contents of the document.

Source of 4.2. Our market analysis has been undertaken using market knowledge within Knight information Frank and Knight Frank St Petersburg AO, enquiries of other agents, searches of property databases, as appropriate and any information provided to us.

Russia economic overview 4.3. 1. GDP growth in 2015: -3.7%; 2016: -0.7%; 2017: 1.6%, 2018: 1.6%1; 2019: 1.3%; 2020: 2.0%; 2021: 3.1%; 2022: 3.2%; 2023: 3.3% (2019 – 2023 – base forecast prepared by Ministry of Economic Development of the Russian Federation2)

2. Inflation in 2015: 12.9%; in 2016: 7.1%; in 2017: 3.7%; 2018: 3.8% (January – November 2018 to January – November 2017)3; 2019: 4.6%; 2020: 3.4%; 2021: 4.0%; 2022: 4.0%; 2023: 4.0% (2019 – 2023 – base forecast prepared by Ministry of Economic Development of the Russian Federation 4)

3. Unemployment rate in December 2017: 5.1%; November 2018: 4.8%5

4. Key rate: 7.75%

5. Exchange Rates as at December 31, 2018: RUB 69,4706 per 1 USD; RUB 79,4605 per 1 Euro6

6. EURIBOR 12M as at December 31, 2018: -0.129 %7

1: http://www.gks.ru/bgd/free/B18_00/Main.htm, January – September 2018, first estimation: http://www.gks.ru/bgd/free/B17_00/Main.htm

2http://economy.gov.ru/minec/about/structure/depmacro/201828113

3 http://www.gks.ru/bgd/free/B15_00/Main.htm

4http://economy.gov.ru/minec/about/structure/depmacro/201828113

5http://www.gks.ru/bgd/free/B17_00/Main.htm http://www.gks.ru/bgd/free/B18_00/Main.htm

6 http://cbr.ru/

7 Average in December: http://www.global-rates.com/interest-rates/euribor/euribor-interest-12-months.aspx

7. LIBOR USD 12M as at December 31, 2018: 3.082 %8

Investment market commentary Background 4.4. According to the results of Q1-Q3 of 2018, the total volume of investment transactions in the Russian real estate market amounted to $ 1.7 billion, which is 12% lower than last year's figures for the same period.

The office segment became the most popular for investors, which accounted for 43% of the total volume of investment transactions.

There is a significant decline in the share of trade segment in the total volume of investment transactions compared with 1Q – 3Q indicators of 2017 (29% vs. 41%).

The share of foreign investment increased by 6 ppt. compared with the indicators of the 3Q of 2017 - to the level of 19% of the total investment.

Financing 4.5. Against the background of a favorable macroeconomic environment, the beginning of 2018, in terms of investment in Russian real estate, was quite active: a number of large investment transactions, including portfolio and with the participation of foreign companies. Then, to replace the period of activity in the Russian real estate market came a period of relative calm, due primarily to increased sanctions pressure from the West, which entailed a marked weakening of the ruble. In the context of a worsening macroeconomic situation, the ruble exchange rate volatility, as well as general economic instability and the difficulties of the banking sector, investors were in no hurry to carry out transactions with Russian real estate, waiting for the stabilization of financial and economic situations.

Since January 2015, the Central Bank of Russia has consistently reduced the key rate from 17% to 7.25%, however, in September 2018 amid negative macroeconomic and foreign factors it was decided to increase the key rate by 0.25 ppt to 7.5%, which resulted to some appreciation of borrowed bank funds. Tougher sanctions from West in relation to the Russian economy did not allow the international ranking Fitch agency to revise the current Russia's credit rating "BBB-" with a positive forecast improvement. However, according to agency estimates, Russia’s economic growth in 2018 will be 2% of GDP, not 1.8%, as predicted them earlier. According to the Bank of Russia, net outflow of capital from Russia in January - August 2018 reached $ 26.5 billion, whereas last year for the same period this indicator amounted to $ 9.6 billion.

Supply/ 4.6. In the structure of transactions, the first place is occupied by the office segment, Demand which attracted in the first 9 months of 2018 $ 728.4 million or 43% of the total investment transactions. In the annual dynamics, the share of the office segment in the total investment remained at the same level. The largest contribution (61%) to investments in the office segment was made by transactions with office centers in St.

8 Average in December: http://www.global-rates.com/interest-rates/libor/american-dollar/usd-libor-interest-rate-12-months.aspx

Petersburg, 37% with Moscow office centers, 2% with regional ones.

Next the retail segment comes, which attracted $ 486.4 million of investment or 29% of the total investment transactions in the Russian real estate market. It is worth noting a significant decrease in the annual dynamics of the share of the trading segment in the total volume of investment transactions from 41% to 29%. Compared to Q1 and Q3 2017, the share of the warehouse segment increased by 11 ppt and reached 15% of the total volume of investment transactions. Compared with the results of 1Q-3Q 2017, an increase in the share of land purchase and sale transactions for development is observed - by 2 percentage points to 10%.

The dominant share in the geographic distribution of transactions is still retained by Moscow, which takes according to different estimates (Knight Frank, Jones Lang LaSalle) 57% - 62% from the total volume of investments. The share of St. Petersburg varies from 29%-38%.

4.7. In St. Petersburg, the largest deal in the first half of 2018 was the purchase of K-Rauta hypermarkets by the French retailer Leroy Merlin, which resulted in the share of foreign investors reaching the highest values in the last seven years - 34%. Currently, foreign market participants continue to actively explore St. Petersburg assets, which by the end of 2018 can be converted into closing deals that are significant for the entire Russian investment market.

For the 9 months of 2018 13 office buildings of 74 thousand sq m were sold. More than half of the buildings sold are of B class and intended for own needs using.

Capitalization 4.8. During 2017 the average prime yields remained at 10.5% for offices, at 11.0% for rate retail and at 12.5% for warehouses.

Potential 4.9. Domestic developers are the main potential buyers of large-scale assets, i.e. land purchasers plots for residential development. Less likely, investment funds who look for medium to long-term investment. Moreover, share of international players is very low and tends to shrink further.

Office market overview Summary 4.10. St Petersburg and Moscow office market overviews are attached in Appendix 3.

Evidence of 4.11. We’ve analysed both the office real estate market of St Petersburg and Moscow in comparable general and the competitive environment of the Projects particularly to determine lettings and the market rental, vacancy and capitalization rates and OPEX for the Properties. We sales used this information to compare it with the data provided by the Client and to calculate the property value if the current rent does not correspond to market. Furthermore we’ve analysed the supply of the similar properties for sale.

Competitive environment analysis for the commercial office Properties and business centres within the portfolio follow appropriate office market overview (St Petersburg

and Moscow) and are attached in Appendix 3.

Residential market overview Summary 4.12. St Petersburg, Moscow and Yekaterinburg residential market overviews are attached in Appendix 3.

Evidence of 4.13. We’ve analysed both the residential real estate market of St Petersburg and comparable Leningradskaya Oblast’, Moscow , Yekaterinburg in general and the competitive sales environment of the Projects particularly to determine market prices, sales pace per quarter, price growth due to the inflation and project completion. We used this information to compare it with the data provided by the Client and to calculate the market sales prices if the current prices do not correspond to the market. We assumed that sale prices information provided by the Client refers to the current average prices for the appropriate unit (apartment (per unit), office or retail space (per sqm) or parking lot (per unit)) as if the property was commissioned at the valuation date.

We’ve analysed average residential prices dynamics by classes and extrapolated it to index the income from sales.

Competitive environment analysis for the Properties being either under residential development (in course of construction) or intended for future residential development within the portfolio follow appropriate residential market overview (St Petersburg, Moscow and Yekaterinburg) and are attached in Appendix 3.

5. Valuation

Highest and Best Use analysis 5.1. The analysis of relevant data to develop a market value opinion requires two important steps in the valuation process before the applicable approaches to value are applied. Market/marketability analysis begins the process of narrowing the focus from a broader macro view to data that is especially pertinent to the appraised property (see Section 4). Highest and best use relies on that analysis to identify the most profitable, competitive use to which the subject property can be put. The highest and best use is shaped by the competitive forces within the market where the property is located and provides the foundation for a thorough investigation of the competitive position of the property in the minds of market participants.

5.2. The highest and best use analysis allows to define the most profitable and competitive use of the real estate property, i.e. the use, which guarantees the highest value of the subject property.

The highest and best use includes four compulsory criteria:

● Physical possibility – physical possibility of constructing a building for the highest

and best use of the subject site;

● Legal possibility – planned use should correspond to the current legislation restricting use of the site;

● Financial feasibility – the legally acceptable use of the site should guarantee income to the owner;

● Highest effectiveness – the highest and best use implies either maximization of owner's net income, or value of the subject property.

5.3. Residential Properties. We have assumed that the development scheme of the Properties within the portfolio either under development (in course of construction) or intended for future development provided by the Client and described in this report is consistent with the highest and best use of the Properties as of the valuation date. Thus we recommend that our assumption on the proposed development scheme adoption was referred to the appropriate legal and planning advisors. Any alteration of the proposed scheme may cause the failure to maximising value.

Commercial Properties. We have assumed that the current use of the office real estate within the portfolio is the highest and best use of the Properties at the valuation date.

Methodology 5.4. Our valuation has been undertaken using appropriate valuation methodology and our professional judgement.

Market 5.5. The market approach provides an indication of value by comparing the subject Approach property with identical or comparable (that is similar) assets for which price information is available.

Market Approach is the most commonly used and accepted method in ascertaining the market value of properties. This approach entails comparing the subject property with similar properties that were sold recently and those that are currently being offered for sale in the vicinity or other comparable localities. The characteristics, merits and demerits of these properties are noted and appropriate adjustments thereof are then made to arrive at the value of the subject property.

5.6. Residential Properties. Taking into account the type of the Properties within the portfolio, namely being either under development or intended for future development land plots assumed as suitable for residential and commercial development, we believe that the Market Approach is not appropriate for its valuation.

Commercial Properties. In undertaking our valuation of the commercial office Properties within the portfolio, we made our assessment only on the basis of a collation and analysis of appropriate comparable negotiations due to the lack of

evidence of comparable sales transactions.

5.7. Market Approach was applied to market value assessment of the commercial office Properties within the portfolio.

Income 5.8. The income approach provides an indication of value by converting future cash flow Approach to a single current value. Under the income approach, the value of a property is determined by reference to the value of income, cash flow or cost savings generated by the property.

Income Approach is normally used for development land or projects. The Residual Method is a generally accepted method for valuing properties that are considered to have possible development potential.

This approach entails estimating the gross development value of the development components and deducting them from the development costs to be incurred, i.e. preliminary expenses, statutory payments, earthworks, infrastructure and building construction costs, professional fees, contingencies, project management fees, marketing and legal fees, financing costs, developer’s profits and other costs (if any) to arrive at the residual value. This residual value appropriately discounted for the period of development and sale is deemed to be the present market value of the subject property.

5.9. Taking into account the type of the properties, we believe that Income Approach is appropriate for its valuation.

Residential Properties. The Client’s projects are assumed to be the highest and best development of Subject Properties. This concept requires estimating forthcoming net operating income (NOI – sales or rental or both of them), deducting outstanding development costs (total project budget) from NOI and discounting resulting cash flow (CF) to calculate net present value (NPV). Thus, for the purposes of valuation the concept of construction and future selling is considered.

Commercial Properties. Current use of commercial office Properties and business centres within the portfolio is assumed to be the highest and best use. This concept is applicable for the vacant commercial office Properties and requires estimating forthcoming NOI (Effective Gross Income (EGI) purified from operating expenses (OPEX)), and discounting resulting CF to calculate NPV. Thus, for the purposes of valuation the concept of future letting and selling in the end of the forecast period is considered.

5.10. In some instances, particularly when the property is operating at a stabilised level of growth and profits at the valuation date, it may not be necessary to consider an explicit forecast period and a terminal value may form the only basis for value (sometimes referred to as an income capitalisation method).

For commercial properties within the portfolio being operated (and occupied by

tenants) the income capitalisation method can be applied.

Cost Approach 5.11. The cost approach provides an indication of value using the economic principle that a buyer will pay no more for a property than the cost to obtain a property of equal utility, whether by purchase or by construction, unless undue time, inconvenience, risk or other factors are involved. The approach provides an indication of value by calculating the current replacement or reproduction cost of a property and making deductions for physical deterioration and all other relevant forms of obsolescence.

5.12. Taking into account the type of the property, we believe that Cost Approach is not appropriate for its valuation.

Valuation considerations 5.13. ● Commercial Properties. We’ve analysed both the office real estate market of St Petersburg and Moscow in general and the competitive environment of the Projects particularly to determine the market rental, vacancy and capitalization rates and OPEX for the Properties. We used this information to compare it with the data provided by the Client and to calculate the market rents after the lease expires if the current rent does not correspond to the market. Furthermore we’ve analysed the supply of the similar properties for sale. Thus the value was determined by reference to observable prices.

● Residential Properties. We’ve analysed both the residential real estate market of St Petersburg and Leningradskaya Oblast’, Moscow , Yekaterinburg in general and the competitive environment of the Projects particularly to determine market prices, sales pace per quarter, price growth due to the inflation, project completion and construction costs. We used this information to compare it with the data provided by the Client and to calculate the market sales prices if the current prices do not correspond to the market. We assumed that sale prices information provided by the Client refers to the current average prices for the appropriate unit (apartment (per unit), office or retail space (per sqm) or parking lot (per unit)) as if the property was commissioned at the valuation date.

● We have used the CPI forecast by the Ministry of Economic Development of Russian Federation to index the construction costs.

● Residential Properties. We’ve analysed average residential prices dynamics by classes and extrapolated it on indexing the income from sales.

market and the results of its using in compare with previous situation. Also there is no accurate data on the criterias excluding projects them from obligatory transfer to the new rules of financing. But as it announces by official government speakers and experts the main criterias might be the stage of completion and the amount of sold areas. In light of the above we have applied the project financing scheme to the development projects from the portfolio those are at the beginning stages of construction and without previous sales or with a small share of sold areas.

● All the general comments set out in this report refer to all the Properties within the portfolio if only special assumption is not provided.

● All considerations, assumptions and market commentaries regarding the properties located in Germany are attached in Appendix 6 “Valuation of properties located in Germany”.

● To the Tax Code of Russian Federation residential development performed by contractors is not subject to VAT excluding commercial and parking construction in case of charging VAT from selling prices. Thus VAT paid on construction and other development costs can be offset only proportionally to the costs incurred in non-residential construction. Commercial properties are subject to VAT fully (long-term leasehold of the land plot) or in respect of the price apportioned to the building (freehold of the land plot) if only the owner’s company is not using Simplified Tax System. Thus we have assumed that all development costs and prices provided by the Client include VAT (where applicable). In our value calculations we have applied cash flows including VAT.

● More detailed valuation considerations for the particular Properties within the portfolio are expressed in the description placed in attachments to the report.

Development 5.14. ● We have adopted the Developer’s estimate of project costs (project budget) costs within our assessment.

● There are severe limitations on the accuracy of build costs applied by this approach and professional advice on the build costs should be sought by you. The

reliance which can be placed upon our advice in these circumstances is severely restricted. If you subsequently obtain specialist build cost advice, we recommend that we are instructed to review our advice.

Financing and 5.15. We’ve applied discount rate for the calculations using the Residual Method. discount rate As mentioned above for projects of residential development with a low stage of construction completion and with a small amount of sold areas (or non sold at all) at the valuation date we’ve applied scheme of financing with a participation of bank loans.

We have interviewed market participants (in particular development companies comparable to the Client) to determine the parametres of project financing offered by banks at the valuation date. As a result we have assumed the ratio of equity and loan as 20%/80% respectively, an average basic credit interest of 11% and a special credit interest of 5% applying when cumulative income from sales cover cumulative loan.

For the models of projects with bank financing we’ve applied discount rates calculated as weighted average cost of capital (WACC model). Where the cost of equity estimated as a discount rate calculated by cumulative method and the cost of loan is equal to the basic credit interest (11%).

The discount rates for the equity (calculated separately for each project) was derived on the basis of the government bonds yield (OFZ-46020-AD, maturity date – February 06, 2036, yield to maturity – 8.91%)9 and a margin of approximately 6.69% to 9.85%.

The average nominal discount rate of 17.51% is within the range of discount rate of 15%-22% proposed by Association of Banks of the North-West Russia10.

Thus, we are of opinion that the average nominal discount rate of 17.45% (as a cost of equity) applied for discounting the cash flow in the DCF Method used in undertaking our valuation of the residential properties within the portfolio is adequate to the market data.

For the models where the loan leverage is applied the average nominal discount rate is 13.14% (varies from 12.45% to 15.99%).

Capitalization 5.16. We have applied a capitalization rate (all-risk yield) of 10.5% to 11% for the rate Properties located in Moscow and of 9% to 11% for the Properties located in St. Petersburg as explained in paragraph 4.8.

9 https://www.cbr.ru/hd_base/zcyc_params/

10 По данным Ассоциации Банков Северо-Запада (http://www.nwab.ru/common/search?q=%D1%81%D1%82%D0%B0%D0%B2%D0%BA%D0%B0%20%D0%B4%D0%B8%D1%81%D0%BA% D0%BE%D0%BD%D1%82%D0%B8%D1%80%D0%BE%D0%B2%D0%B0%D0%BD%D0%B8%D1%8F)

Calculation 5.17. This valuation does not reflect purchaser’s costs, which we would anticipate to be approximately 1.5–2% of the property value, including legal and tax advisers’ fees. The Value provided doesn’t include these fees.

The valuation calculations are attached as the Excel files in the electronic form.

Valuation bases Market Value 5.18. Market Value is defined within RICS Valuation – Professional Standards as:

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Portfolios 5.19. In a valuation of a property portfolio, we have valued the individual properties separately and we have assumed that the individual properties have been marketed in an orderly way.

Valuation date Valuation date 5.20. The valuation date is December 31, 2018.

Market Value Assumptions 5.21. Our valuation is necessarily based on a number of assumptions which have been drawn to your attention in our Agreement № PO-25/2018 dated December 18, 2018, General Terms of Business, Terms of Engagement Letter and within this report.

Key assumptions 5.22. Whilst we have not provided a summary of all these assumptions here, we would in particular draw your attention to a key assumption that state assumptions which are particularly important / relevant as instructed by you so drawn to your attention within this report:

● The Subject Property is represented by vacant, partly or completely developed land plots intended for residential (residential premises) and commercial (apartments) development (hereinafter referred to as Residential Properties) and by commercial office buildings with related land plots (hereinafter referred to as Commercial Properties). It is assumed that the buildings under construction will be completed in accordance with the identified plans and specification provided by the Client.

satisfactorily drawn.

● The owners of the Properties within the portfolio are several legal entities. We have been informed by the Client that all these legal entities are parts of LSR Group OJSC. Thus we assume that 100% ownership of LSR Group OJSC is to be valued.

● To the title documents provided by the Client part of the Properties are either the shared ownership or leasehold. For the shared ownership we assume it is the share of freehold tenure of the Client in all the properties to be assessed. For leasehold property we assume it is freehold tenure of the improvements and leasehold of the land to be assessed.

● We assume that all the utilities (heating, cold and hot water, electricity, sewerage / drainage and telecommunications) are available to the Property at the site borders.

● We assume that public and social (including school) facilities for the future development are sufficient.

● We have adopted the Developer’s estimate of project costs (project budget) within our assessment.

● Residential Properties. Sales proceeds provided by the Client consist of anticipated income from already sold but unpaid units and estimated income from the unsold units. In our DCF calculations we have adopted only estimated income from the unsold units. We have assumed that a hypothetic potential purchaser of the Property would normally be entitled to all the Property rights including claim rights for the payment for sold unpaid units. Thus, we have added anticipated income from already sold but unpaid units to the NPV.

● We have assumed construction period in accordance with the Developer’s envisaged timetable when in our opinion this timetable complied with construction periods witnessed at developments of a comparable scale Otherwise our knowledge of similar developments suggested a construction period allowance of approximately 1 year (per phase if applicable).

● Residential Properties. We have assumed construction phasing in accordance with the Client’s envisaged phasing. In the absence of construction phasing information provided by the Client, we have adopted the most probable market construction phasing. We have assumed 100,000 – 200,000 sqm of buildings constructed within 1 phase.

● To the Terms of Engagement the valuation of portfolio should be presented in the format of the report. Market researches, competitors analyses and description of the Properties within the Portfolio are placed in the attachments to the report.

Market Value 5.23. We are of the opinion that the Market Value of the Properties within the portfolio at the valuation date is (rounded):

185,560,939,000 (One Hundred Eighty Five Billion Five Hundred Sixty Million Nine Hundred Thirty Nine Thousand) RUB.

Table 3. Market Value of the Properties within the portfolio

LSR share, Market Value of 100% ownership, incl. income from deals before No Development Project Address % RUB, incl. VAT December 31, 2018, RUB, incl. VAT

Saint-Petersburg and

Leningradskaya Oblast' Business centers Lit В, 36, Kazanskaya 1 Kazanskaya 36 100% 800,708,679 St, St.Petersburg 44, Kazanskaya St, 2 Zolotaya Kazanskaya 100% 373,227,203 St.Petersburg Lit A, 39, Kirochnaya 3 Paradny Kvartal BC 11 100% 564,960,693 St, St.Petersburg

LSR share, Market Value of 100% ownership, incl. income from deals before No Development Project Address % RUB, incl. VAT December 31, 2018, RUB, incl. VAT

Lit A, 18, Fonarny 4 Kazanskaya 60 100% 222,510,913 Lane, St.Petersburg Lit M, 39, Radishcheva 5 Radishcheva 39 100% 53,589,202 St, St.Petersburg TOTAL, business centers 2,014,996,690 Elite (A) class residential

properties Lit A, 4, Smolnogo St, 6 Smolny Park 100% 1,517,274,421 283,983,617 St.Petersburg Phase 2, bldgs. Б2,5,6 572,118,617 9,152,070 Phase 3 535,825,202 36,848,202 Phase 4 409,330,602 237,983,345 Lit A, 29, Morskoy Pr, 7 Verona 100% 1,261,285,060 91,040,200 St.Petersburg Neva Art, Neva Residence 17, Remeslennaya St., 8 100% 9,370,425,117 18,218,050 (REB Flota) St.Petersburg 9 Neva Haus 9,11, Petrovskiy Pr. 100% 6,046,755,834 714,983,987 Lit A, 64, Martynova 10 Osobnyak Martynova Emb 100% 507,000,000 Emb, St.Petersburg 5, Korolenko St., St 11 Russkiy Dom 100% 3,131,896,706 812,704,433 Petersburg TOTAL, elite (A) class 21,834,637,138 1,920,930,287 residential properties Business (B) class

residential properties Lit Ж, 10, Medikov Av, 12 Europa City 100% 672,063,971 110,354,162 St.Petersburg Phase 3 340,944,647 6,555,324 Phase 4 331,119,323 103,798,838 Plot 151, Block 66a, 13 Tri Vetra Savushkina St, 100% 2,193,826,283 187,035,325 St.Petersburg Lit Д, Moskovskoye 14 Moskovskoye Hgwy 100% 1,374,810,740 86,421,626 Hwy, St.Petersburg NEO 501,902,708 72,856,605 NEO Park 872,908,032 13,565,021 Nevskaya Guba, plots 15 Morskoy Fasad 100% 11,829,549,419 23,793,000 12, 13, 14, 15 3, Lit. А, К, Д, Chernoy 16 Riviere Noire 100% 1,455,732,625 359,902,494 Rechki Emb. 14, Smolenskaya St, 17 Bogemia 100% 949,370,655 127,095,225 St.Petersburg TOTAL, business (B) class 18,475,353,693 894,601,832 residential properties Mass market (С) class

residential properties Yuzhnaya Block 28, 28a, Doblesti 18 100% 2,611,165,002 152,208,215 Akvatoriya/Parusa St, St.Petersburg Yuzhnaya Aquatoria, plot 315,428,236 7,548,434 13 Yuzhnaya Aquatoria, plot 510,176,315 0 14 Yuzhnaya Aquatoria, plot 289,394,525 1,739,250 24 Yuzhnaya Aquatoria, plot 9 456,427,720 2,919,291 Yuzhnaya Aquatoria, plot 1 97,454,287 1,039,678 Yuzhnaya Aquatoria, plot 2 687,709,340 138,961,562 Yuzhnaya Aquatoria, plot 6 254,574,577 Plots 3, 8, 12, 5, 7, 3*, 13, 8*, 1, Lit Ф, 49, 6, 19 Sophiya 100% 12,285,539 43,902,903 Yuzhnoe Hwy, St.Petersburg 12, Marshala Blukhera, 20 Kalina Park (Kaleidoskop) 100% 512,413,014 384,927,143 St.Petersburg Murinskaya Road, 21 Novaya Okhta 100% 4,428,375,718 1,058,931,456 St.Petersburg

LSR share, Market Value of 100% ownership, incl. income from deals before No Development Project Address % RUB, incl. VAT December 31, 2018, RUB, incl. VAT

145, Piskarevsky Av, 22 Tsvetnoy Gorod 100% 9,113,773,323 2,269,149,919 St.Petersburg 145, Piskarevsky Av, 23 Ruchyi 100% 1,729,011,129 302,072,300 St.Petersburg 145, Piskarevsky Av, 24 Tsvetnoy Gorod Zapad 100% 5,317,189,938 St.Petersburg Plot 208, Prigorodny 25 Shuvalovsky (Kamenka), 100% 3,023,722,624 572,326,994 St.Petersburg 42, Oktyabrskaya Emb, 26 Tsivilizatsiya 100% 9,282,906,993 3,491,412,156 St.Petersburg Tsivilizatsiya Rudas 2,907,355,316 2,289,754,832 Tsivilizatsiya Barrikada 6,375,551,677 1,201,657,324 Plots 14,17, Orlovo- 27 Zapovednaya 100% 1,746,436,000 13,546,142 Denisovskiy Av. Plots 1,2, Kosmonavtov Pr. Zvezdny Duet 28 (south-east of 100% 157,985,718 684,067,289 (Kosmonavtov/Dunayskiy) Svirskaya St crossing), St.Petersburg Airport Rzhevka, Kovalevo Settlement, 29 Aeroport Rzhevka Vsevolozhsky District, 100% 5,530,441,506 Leningradskaya Oblast' TOTAL, mass market (С) class residential 43,465,706,504 8,972,544,517 properties Commercial properties 14, Vilenskiy Lane, 30 Georgievsky 1,468,143,637 St.Petersburg 1, Nevsky Av, 31 Nevsky 1 3,153,441,843 St.Petersburg 68, Nevsky Av / Lit Б, 32 Nevsky 68 40/68, Fontanka River 3,039,866,910 Emb, St.Petersburg 8,10, Smolnaya 33 Smolny Park Embankment, St 1,323,871,210 Petersburg Building B11 125,529,541 Building B12 1,198,341,669 TOTAL, commercial 8,985,323,599 properties TOTAL, properties, located in Saint- 94,776,017,624 11,788,076,636 Petersburg and Leningradskaya Oblast' Moscow and

Moscovskaya Oblast' Business (B) class

residential properties Bldg 19, 21, 34 Donskoy Olimp Serpukhovsky Val St, 100% 2,285,283,714 258,309,175 Moscow Zarechye Settlement, 35 Grunvald Odintsovo District, 100% 244,033,818 620,710 Moscovskaya Oblast' 58, Leningradskoye 36 LENINGRADKA 58 100% 3,037,160,068 650,596,191 Hwy, Moscow 26, Krasnogo Mayaka 37 Krasniy Mayak 100% 3,805,613,565 St., Moscow 23, Avtozavodskaya 38 ZiL Yug 100% 9,844,666,948 St, Moscow 23, Avtozavodskaya 39 Zilart 100% 34,927,810,255 5,592,949,356 St, Moscow TOTAL, business (B) class 54,144,568,369 6,502,475,432 residential properties

LSR share, Market Value of 100% ownership, incl. income from deals before No Development Project Address % RUB, incl. VAT December 31, 2018, RUB, incl. VAT

Mass market (С) class

residential properties Bldg 6, 40 Luchi Proizvodstvennaya St, 100% 10,090,962,638 4,204,555,050 Moscow Proizvodstvennaya St, 41 Luchi-2 100% 3,427,176,227 Moscow Mikrorayon Zapadny, 42 Novoe Domodedovo Domodedovo, 100% 180,002,928 Moscovskaya Oblast' near Chernaya Village, Pavlo-Slobodskoye 43 Nakhabino Yasnoe Settlement, Istrinsky 100% 1,801,622,518 377,868,570 District, Moscovskaya Oblast' TOTAL, mass market (С) class residential 15,499,764,310 4,582,423,620 properties Commercial properties Bldgs. 1, 2, 3, 9, 44 Novy Balchug Sadovnicheskaya St, 100% 6,434,091,990 Moscow TOTAL, commercial 6,434,091,990 properties Business centers 22, Avtozavodskaya 45 Avtozavodskaya 100% 1,201,826,219 St, Moscow 16, Tverskoy Blvd, 46 16, Tverskoy Blvd 100% 1,543,617,867 Moscow 16, Davydkovskaya St, 47 Davydkovskaya 100% 228,935,906 Moscow TOTAL, business centers 2,974,379,993 TOTAL, properties, located in Moscow and 79,052,804,663 11,084,899,052 Moscovskaya Oblast' Yekaterinburg Mass market (С) class

residential properties 2B, 40-Letiya 48 Rassvetny Komsomola St, 100% 97,018,121 38,489,597 Yekaterinburg Latviyskaya St, 49 Khrustalniye Klyuchi 100% 1,052,714,171 158,115,474 Yekaterinburg Sukhodolskaya St, 50 Michurinsky 100% 1,526,078,750 447,924,822 Yekaterinburg Verkhneuphaleyskaya 51 Akademichesky 100% 1,453,648,967 314,380,417 St, Yekaterinburg Flagman (Repina- Repina St, 52 100% 700,991,858 115,078,095 Zavodskaya) Yekaterinburg 53 VIZ Bol`shoy Konnyy 95% 1,857,324,355 54 Tsvetnoy Bulvar Bl'ukhera 100% 597,520,965 367,128,863 25, 40-Letiya 55 Voskhod Komsomola St, 100% 477,767,967 273,766,797 Yekaterinburg TOTAL, properties, 7,763,065,153 1,714,884,064 located in Yekaterinburg Germany Brandenburger Str. / 56 Leipzig Sachsenstr., Section 100% 2,924,146,400 3918/37 57 Landshut 6, an der Oberfurung 100% 429,086,700 58 Munich 1,st. Duke Henry 100% 615,818,875 TOTAL, properties, 3,969,051,975 located in Germany TOTAL, properties 185,560,939,415 24,587,859,752

6. Property risk analysis

General comments 6.1. In this section of our report we summarise the property related risks which we have identified as part of our valuation report and which we consider should be drawn to your attention. This summary should not be taken to be exhaustive and must be considered in conjunction with the remainder of the report. Nothing in this section should be construed as being a recommendation of taking any particular course of action.

Risks relating to the property Location 6.2. We assume a high level attraction of the location of Properties within the portfolio for future tenants and customers. More detailed description of location of properties is presented in Appendix 2.

Contamination 6.3. While carrying out our valuation inspection, we have not been made aware of any uses conducted at the subject property that would give cause for concern as to possible environmental contamination. Our valuation is provided on the assumption that the property is unaffected.

For the purposes of valuation we referred to the design parameters for the construction according to the Properties development, provided by the Client. We consider these parameters especially for residential construction satisfy sanitary requirements.

Nevertheless in our opinion the absence of the existing sanitary protection zone requires further investigation.

Planning 6.4. We have been informed by the Client that the Property is intended for residential and commercial development.

We assume that all necessary permissions for the scheme described in this report will be obtained and that this scheme will be completed, in order to arrive at our opinion of the Market Value of the Property.

We recommend that our assumption on the proposed development scheme adoption was referred to the appropriate legal and planning advisers.

Legal title 6.5. Any legal title issues are matters which should be referred to your legal advisers. However the following matters have come to our attention which we consider require further investigation

We have been provided with the Properties’ title information by the Client. Nevertheless we have not been provided with all the ownership certificates and land long-term lease agreements to verify it. Thus, in our valuation, we have assumed a good and marketable freehold (to the land plots and buildings) or long-term

leasehold (to the land plots) title and that all documentation is satisfactorily drawn.

We recommend that our assumption on the good and marketable title was referred to the appropriate legal advisers.

Tenancies 6.6. Any tenancy issues are matters which should be referred to your legal advisors. However the following matters have come to our attention which we consider require further investigation.

Commercial Properties. As some commercial office Properties and business centres within the portfolio are multi-tenanted i.e. occupied by the owner and other tenants we have valued it on the assumption of vacant possession after the lease expires.

We have been provided with the tenancy information by the Client and have relied on that information as being correct. If the contract does not specify the expiration date we assumed the contract shall expire with one year after the valuation date. No additional verification has been undertaken.

We recommend that our understanding of the expiration date of the current lease agreements is referred to your legal advisers. Should this be subject to any amendment our valuation should be reviewed.

Income risks Tenant covenant 6.7. Due to the quality of the future building we estimate high quality of tenants and buyers interested in renting and living space in the Subject Property.

Cashflow 6.8. Residential Properties. The apartments and residential premises are or will be put on sale at the early stage of construction that would guarantee stable cash flow. The pace of sales and prices for the discounted cash flow calculations are in line with market. Nevertheless in current market conditions there is a higher than normal degree of uncertainty attached to our opinion of the stability of cash flows.

Commercial Properties. Some commercial office Properties and business centres within the portfolio are multi-tenanted i.e. occupied by the owner and other tenants. Most of the contracts do not specify the expiration date thus we assumed the contract shall expire with one year after the valuation date.

The necessity of new tenants searching may result in cash flows. Nevertheless taking into account that most of the commercial office Properties and business centres within the portfolio are owner occupied and intended for further owner occupation and not for income gaining and will continue to remain in the existing ownership or occupation uncertainty attached to our opinion of the stability of cash flows is not so significant.

Reletting 6.9. Commercial Properties. As the commercial office Properties and business centres within the portfolio will continue to remain in the existing ownership or occupation the risk of reletting the premises might be low.

Void costs 6.10. As a result of stable cash flow and low reletting uncertainty the void costs tend to decrease which also means lower expenses for agent’s rewarding.

Development risks Construction 6.11. Capital expenditures are to be incurred in course of the actual project development – costs construction of utilities and buildings. The scope of estimating both the parameters of future development and the construction and other costs is beyond the scope of our expertise. We recommend that our understanding of the development costs is referred to a quantity surveyor for confirmation that our understanding is correct. Should this be subject to material amendment our valuation should be reviewed.

Cost over-runs 6.12. The development scheme described in this report is not unusual type of construction. Nevertheless we would like to draw your attention to the fact that in current market conditions the construction of buildings especially within the integrated development of the territory or any contingencies related to environmental, planning and site conditions may cause additional costs difficult to pin down in advance. Thus we recommend that the construction costs should be carefully reviewed by a quantity surveyor after the building project approval and building permit obtaining.

Time over-runs 6.13. Consequential losses may arise if the development over-runs and the construction term increases. Thus we recommend that the construction costs should be carefully reviewed by a quantity surveyor after the building project approval and building permit obtaining.

Design concerns 6.14. The development scheme of the Properties within the portfolio described in this report is highest and best use of the Property at the valuation date. Thus we recommend that our assumption on the proposed development scheme adoption was referred to the appropriate legal and planning advisers. Any alteration to the proposed scheme may cause the failure to maximising value.

Discount and 6.15. Appraisal is based on the current market discount and capitalization rates based capitalization frequently on estimations and expert opinions of capital markets specialists due to rate increases the fact that the buildings sales market is not transparent. We draw to your attention that in the current economic climate there is a higher than normal degree of uncertainty attached to our opinion of discount and capitalization rates at the date of valuation.

Sales rate 6.16. Sales rates assumed are in line with the market data. (market Commercial Properties. For the commercial office Properties and business centres absorption) within the portfolio intended for remaining in the existing ownership and mostly owner occupation Comparative Method is the most appropriate. Due to the lack of evidence of comparable sales transactions we made our assessment only on the basis of a collation and analysis of appropriate comparable negotiations. Nevertheless the discounts applied to the asking price are in line with the market.

Profitability of 6.17. Scheme generates a property value if average profit level in the current market scheme adopted.

Cancellation of 6.18. The scheme is in line with the market data and doesn’t assume a high level of off-plan off-plan sales or sales. Pre-lets are not assumed. pre-lets

Movement in 6.19. We highlight that our opinion of value is only current at the valuation date. This is inputs after particularly important in current market conditions and subsequent re-valuation(s) valuation date may need to be considered to reflect any changes in inputs after the valuation date.

Economic & property market risks Market 6.20. We refer to the RICS Valuation – Professional Standards, Guidance Note 1 (Valuation uncertainty Certainty). Our opinion of value represents our professional view based upon any available market evidence and our professional judgement. In the current market, there is a general lack of market evidence. The lack of market evidence means that the speed with which values are moving is very difficult to assess. As a result, we need to place a high degree of reliance upon our professional judgement in arriving at our opinion of value.

As for commercial real estate investor sentiment towards property investment has weakened considerably over the past months. Far fewer negotiations are resulting in transactions as many investors wait to see how market pricing will ultimately adjust to changing economic and restrictive credit conditions. In consequence, there is a limited number of comparable transactions. You should note that our opinion of Market Value is provided in light of these conditions. Accordingly, given the current economic and property market volatility, we recommend that the valuation is kept under regular review.

We draw to your attention that in the current economic climate there is a higher than normal degree of uncertainty attached to our opinion of value at the date of valuation. We also highlight that our opinion of value is only current at the valuation date. This is particularly important in current market conditions and subsequent re- valuation(s) may need to be considered to reflect any changes in value after the valuation date.

The further impact of the changing economic and restrictive credit conditions on the Russian economy is currently unclear.

Macro 6.21. Macro risks refer to types of economic factors which influence the volatility over time economic/ of investments and the value of properties. The further significant changes in the political risks interest rates, inflation or exchange rate may cause changes in value after the valuation date. We draw to your attention that our opinion of value is only current at the valuation date.

Demand from 6.22. Residential Properties. The market showed high buying activity relating to the owners / residential (residential premises or flats) and commercial (apartments) properties. occupiers Commercial Properties. Commercial real estate investor sentiment towards property investment has weakened considerably over the past year. Volatility in rental income caused by the rental rates reduction and the tenants’ desire to revise tenancy terms create a barrier to market entry for potential investors seeking stabilized assets. Far fewer negotiations are resulting in transactions as many investors wait to see how market pricing will ultimately adjust to changing economic and restrictive credit conditions. The market of the properties acquired for owner occupation is almost completely intransparent. Thus there is a general lack of market evidence.

Supply of similar 6.23. Commercial Properties. The average weighted vacancy rate of similar properties in the properties area (the existing direct and indirect competitors in the zone of influence) is not high and doesn’t exceed 7%.

The vacancy rates of the completed commercial Properties within the portfolio (except 68, Nevsky Av, St Petersburg) are low or absent at all. This fact corresponds with the market data and forecast as of the valuation date.

Availability of 6.24. To the new changes in Russian legislation regulating development activities banks are finance obliged to be participants of residential development projects after July 01, 2019. Each development company must have a separate special account for each project under construction, all the money transfers within the project must carried out within this account, and the same bank must accumulate incomes from sales on escrow accounts.

Banks participating in the new scheme for financing development projects must meet the criteria defined by the government. At the valuation date, only a few banks (first of all, large banks with state shares in the capital) expressed readiness to finance construction projects under the new scheme.

Liquidity of the 6.25. Residential Properties. The Properties may take unusually long time to sell butit property type / normally will continue to remain partially in the existing ownership or occupation up to Time to sell the completion of the costruction and selling of the units (flats, apartments, built-in premises and car-parking spaces with related land plots).

Commercial Properties. The Properties would take unusually long time to sell but it normally will continue to remain in the existing ownership or occupation.

Valuation risks Methodology 6.26. You need to be aware that the residual method requires the input of a large amount of data, which are rarely absolute or precise, together with making of a large number of assumptions. Small changes in any of the inputs can cumulatively lead to a large change in the site value. Some of the inputs can be assessed with reasonable objectivity, but others require a high degree of professional judgement.

Quality / 6.27. The real estate market in Russia is very opaque. Information on our provided sales quantity of and lease comparables is based on published information and internal marketing comparables researches of Knight Frank Research Departments.

Signature

Svetlana Shalaeva Konstantin Fomin RICS Registered Valuer Head of Valuation, Director, Key Client Manager St Petersburg

Galiya Chelysheva, MRICS Dmitry Tsatskin

Project Manager Project Manager

For and on behalf of Knight Frank St Petersburg AO

Appendix 1 Terms of Engagement/ General Terms of Business for Russian Valuations

LSR Group OJSC

St. Petersburg

Russia

December 18, 2018

Dear Sir/Madam

Our Terms of Engagement for a Valuation of the portfolio of real estate assets in Russia (St Petersburg, Moscow, Yekaterinburg) and Germany (Leipzig, Landshut, Munich)

We are writing to set out our Terms of Engagement for carrying out a valuation of the above property.

Our Terms of Engagement for this instruction comprise our General Terms of Business for Valuations which are attached to this letter, together with the specific terms contained within this letter. This letter shall take precedence, to the extent that there is any inconsistency with the General Terms of Business for Valuations. A copy of this letter and our General Terms of Business for Valuations are attached for you to sign and return to us, signifying your acceptance of the terms.

In addition to our General Terms of Business for Valuations, our Terms of Engagement for carrying out this instruction are as follows:

Our Client

Our client for this instruction is LSR Group OJSC.

Fees

Our fee for undertaking this instruction is set in Agreement PO-25/2018 dated December 18, 2018.

Conflicts of interest

We confirm that we do not have any material connection or involvement giving rise to a conflict of interest and are in a position to provide an objective and unbiased valuation.

Limitation of liability and restrictions on use

Clause 3 of our General Terms of Business for Valuations limits our liability under this instruction.

Third party liability

Additionally, as stated in Clause 3.1 of our General Terms of Business for Valuations, no liability is accepted to any third party for the whole or any part of the valuation report.

Disclosure

The valuation report is confidential to the Client.

Valuation standards

The valuation will be undertaken in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation - Professional Standards June 2017 Global & UK edition (the Red Book) including the International Valuation Standards (2017)

Status of valuer

External valuers, as defined in the Red Book.

Valuer and Competence Disclosure

The valuer, on behalf of Knight Frank St Petersburg AO with the responsibility for this report is

● Svetlana Shalaeva MRICS, RICS Registered Valuer, Head of Valuation Department, Knight Frank St Petersburg AO;

Parts of this valuation will be undertaken by additional valuers. We confirm that the valuer and the additional valuers meet the requirements of the Red Book, having sufficient current knowledge of the particular market and the skills and understanding to undertake the valuation competently.

Purpose of valuation

The valuation is required for the purposes of publication on the Clients’ website, providing it to the Сlient's counterparties, attraction of investors and for the preparation of financial statements in accordance with International Financial Reporting Standards for the year 2018.

Property to be valued

The list of the property to be valued (the Portfolio) is presented in the Appendix 1 to the Agreement No. PO-25/2018 dated December 18, 2018 (hereinafter the Agreement).

Interest to be valued

Freehold/ leasehold.

Property type and use

Vacant, partly or completely developed land plots intended for residential and commercial development; commercial office buildings with related land plots.

Basis of valuation

As defined in the RICS Red Book, our valuation will be undertaken on the following bases:

 Market Value.

Special Assumptions and Assumptions

Our valuation will necessarily be based upon a number of assumptions, as set out in the General Terms of Business for Valuations, this letter and within our valuation report.

Valuation date

December 31, 2018.

Currency to be adopted

Russian ruble (RUB).

Extent of inspection and investigations

Our General Terms of Business set out the scope of our on-site inspection and investigations.

Unless prevented from doing so, we will inspect the properties internally. For properties to which access cannot be gained the valuation will be on a drive by basis.

You should note that this significantly limits the extent to which reliance can be placed upon our valuation report.

Information to be relied upon

In the following a list of Required Information that we need in order to undertake our valuation is set out:

 Information relating to the extent of the property, produced by special services of public authorities Title documents (ownership certificates and lease agreements);

 Information relating to the proposed development scheme, produced by the Client;

 Information relating to the planning status of the Property, from the Client;

 Information relating to the construction costs, terms of project realization of the proposed development as produced by the Client;

 Information relating to the sales prices of the proposed development as produced by the Client. This information will be relied upon by us in our final valuation report, subject only to any verification that we have agreed to undertake.

Where we express an opinion of legal issues, any such opinion must be verified by your legal advisors before the valuation can be relied upon or published.

Report format

Our valuation report will be prepared in our standard format which will be compliant with VPS 3 of the Red Book. Market researches, competitors’ analyses, and description of the Properties within the Portfolio will be placed in attachments to the report.

If any of the details set out above are incorrect please let us know – we will assume they are correct unless you tell us otherwise.

Please will you sign and return the duplicate copy of this Terms of Engagement letter, signifying your agreement to the terms contained therein. We should point out that the report will not be discussed or disclosed before these Terms have been returned.

Thank you for instructing Knight Frank St Petersburg AO.

Yours faithfully

Svetlana Shalaeva RICS Registered Valuer Head of Valuation Knight Frank St Petersburg AO [email protected]

Enclosed: General Terms of Business for Russian Valuations

………………………………………………….. …………….

Signed for and on behalf of LSR Group OJSC Date

General Terms of Business for Russian Valuations

These General Terms of Business comprise a part of our Terms of Engagement. The following General Terms of Business apply to all valuations and appraisals undertaken by Knight Frank Saint-Petersburg AO unless specifically agreed otherwise in confirming instructions and so stated within the main body of the valuation report.

1. Knight Frank St Petersburg

Knight Frank Saint-Petersburg AO,

Liter A, 3B, Mayakovskogo St., St Petersburg, 191025, Russia

2. Jurisdiction

Russian law shall apply in every respect in relation to the valuation and the agreement with the client which shall be deemed to have been made in Russia (the Agreement). In the event of a dispute arising in connection with a valuation, unless expressly agreed otherwise in writing by Knight Frank Saint-Petersburg AO, the client, and any third party using the valuation, will submit to the jurisdiction of the Russian Courts only. This will apply wherever the property or the client is located or the advice is provided.

3. Limitations on Liability

3.1. Our valuation is confidential to the party to whom it is addressed for the stated purpose and no liability is accepted to any third party for the whole or any part of its contents. Liability will not subsequently be extended to any other party save on the basis of written and agreed instructions; this may incur an additional fee. Except as set out in 3.2 below the terms of the Agreement between Knight Frank Saint-Petersburg AO and the client are not enforceable by any third party.

3.2. No claim arising out of or in connection with the Agreement may be brought against any member, employee, partner or consultant of Knight Frank Saint-Petersburg AO (each called a ‘Knight Frank Person’). Those individuals will not have a personal duty of care to the client or any other party and any such claim for losses must be brought against Knight Frank Saint-Petersburg AO.

3.3. Our maximum total liability for any direct loss or damage whether caused by our negligence or breach of contract or otherwise is limited to Knight Frank Saint-Petersburg AO’s fee under the instruction set out in the Terms of Engagement letter and the Agreement which will be sent to the client.

3.4. We do not accept liability for any indirect or consequential loss (such as loss of profits). Nothing in these Terms of Business (or in our Terms of Engagement letter) shall exclude or limit our liability in respect of fraud or for death or personal injury caused by our negligence or for any other liability to the extent that such liability may not be excluded or limited as a matter of law.

4. Severance

If any provision of the Agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision shall be deemed deleted. Any modification to or deletion of a provision under this clause shall not affect the validity and enforceability of the rest of the Agreement.

If any provision is invalid, illegal or unenforceable, the parties shall negotiate in good faith to amend such provision so that, as amended, it is legal, valid and enforceable and, to the greatest extent possible, achieve the intended commercial result of the original provision.

5. Disclosure and Publication

If our opinion of value is disclosed to persons other than the addressees of our report, the basis of valuation should be stated.

6. Complaints Procedure

If you have any concerns about our service, please raise them in the first instance with the valuer concerned. If this does not result in a satisfactory resolution, please contact the relevant Head of Department. As required by RICS, we will send you a copy of our Complaints Procedure on request.

7. Our Fees

The Fee terms are stipulated in the Agreement.

8. Disclosable Interests

We may offer the following services to prospective purchasers and similarly the services may be offered to them by another organisation in circumstances where we may benefit financially: financial services, property letting and management services, building construction, refurbishment and maintenance services and the sale of the prospective purchaser’s property.

9. RICS Valuation – Professional Standards - The Red Book

Valuations and appraisals will be carried out in accordance with the relevant edition of the RICS Valuation - Professional Standards by valuers who conform to its requirements and with regard to relevant statutes or regulations. Compliance with The Red Book is mandatory for Chartered Surveyors in the interests of maintaining high standards of service and for the protection of clients.

10. Monitoring

The valuation may be subject to monitoring under the RICS conduct and disciplinary regulations.

11. Valuation Basis

Valuations and appraisals are carried out on a basis appropriate to the purpose for which they are intended and in accordance with the relevant definitions, commentary and assumptions contained in The Red Book. The basis of valuation will be agreed with you in the letter covering the specific terms for the instruction.

12. Portfolios

Where requested to value a portfolio, unless specifically agreed with you otherwise, we will value the individual properties separately, upon the assumption that the properties have been marketed in an orderly manner.

13. Land Register Inspection and Searches

We do not undertake searches or inspections of any kind (including web based searches) for title or price paid information in any publicly available land registers.

14. Title and Burdens

We do not read documents of title although, where provided, we consider and take account of matters referred to in solicitor’s reports or certificates of title. We would normally assume, unless specifically informed and stated otherwise, that each property has good and marketable title and that all documentation is satisfactorily drawn and that there are no unusual outgoings, planning proposals, onerous restrictions or local authority intentions which affect the property, nor any material litigation pending.

15. Disposal Costs and Liabilities

No allowance is made in our valuation for expenses of realisation or for taxation which may arise in the event of a disposal and our valuation is expressed as exclusive of any VAT that may become chargeable. Properties are valued disregarding any mortgages or other charges.

16. Sources of Information

We rely upon the information provided to us, by the sources listed, as to details of tenure and tenancies (subject to 'Leases' below), planning consents and other relevant matters, as summarised in our report. We assume that this information is complete and correct.

17. Identity of Property to be Valued

We will exercise reasonable care and skill (but will not have an absolute obligation to you) to ensure that the property, identified by the property address in your instructions, is the property inspected by us and contained within our valuation report. If there is ambiguity as to the property address, or the extent of the property to be valued, this should be drawn to our attention in your instructions or immediately upon receipt of our report.

18. Boundaries

Plans accompanying reports are for identification purposes only and should not be relied upon to define boundaries, title or easements. The extent of the site is outlined in accordance with information given to us and/or our understanding of the boundaries.

19. Planning, Highway and Other Statutory Regulations

Enquiries of the relevant Planning and Highways Authorities in respect of matters affecting the property, where considered appropriate, are normally only obtained verbally or from a Local Authority web site, and this information is given to us, and accepted by us, on the basis that it should not be relied upon. Written enquiries can take several weeks for response and incur charges. Where reassurance is required on planning matters, we recommend that formal written enquiries should be undertaken by the client’s solicitors who should also confirm the position with regard to any legal matters referred to in our report. We assume that properties have been constructed, or are being constructed, and are occupied or used in accordance with the appropriate consents and that there are no outstanding statutory notices.

We assume that the premises comply with all relevant statutory requirements including fire and building regulations.

20. Property Insurance

Our valuation assumes that the property would, in all respects, be insurable against all usual risks including terrorism, flooding and rising water table at normal, commercially acceptable premiums.

21. Building Areas and Age

Where so instructed, areas provided from a quoted source will be relied upon. Where the age of the building is estimated, this is for guidance only.

22. Structural Condition

Building, structural and ground condition surveys are detailed investigations of the building, the structure, technical services and ground and soil conditions undertaken by specialist building surveyors or engineers and fall outside the normal remit of a valuation. Since we will not have carried out any of these investigations, except where separately instructed to do so, we are unable to report that the property is free of any structural fault, rot, infestation or defects of any other nature, including inherent weaknesses due to the use in construction of deleterious materials. We do reflect the contents of any building survey report referred to us or any defects or items of disrepair of which we are advised or which we note during the course of our valuation inspections but otherwise assume properties to be free from defect.

23. Ground Conditions

We assume there to be no unidentified adverse ground or soil conditions and that the load bearing qualities of the sites of each property are sufficient to support the building constructed or to be constructed thereon.

24. Environmental Issues

Investigations into environmental matters would usually be commissioned of suitably qualified environmental specialists by most responsible purchasers of higher value properties or where there was any reason to suspect contamination or a potential future liability. Furthermore, such investigation would be pursued to the point at which any inherent risk was identified and quantified before a purchase proceeded. Anyone averse to risk is strongly recommended to have a proper environmental investigation undertaken and, besides, a favourable report may be of assistance to any future sale of the property. Where we are provided with the conclusive results of such investigations, on which we are instructed to rely, these will be reflected in our valuations with reference to the source and nature of the enquiries. We would endeavour to point out any obvious indications or occurrences known to us of harmful contamination encountered during the course of our valuation enquiries.

We are not, however, environmental specialists and therefore we do not carry out any scientific investigations of sites or buildings to establish the existence or otherwise of any environmental contamination, nor do we undertake searches of public archives to seek evidence of past activities which might identify potential for contamination. In the absence of appropriate investigations and where there is no apparent reason to suspect potential for contamination, our valuation will be on the assumption that the property is unaffected. Where contamination is suspected or confirmed, but adequate investigation has not been carried out and made available to us, then the valuation will be qualified by reference to appropriate sections of The Red Book.

25. Leases

The client should confirm to us in writing if they require us to read leases. Where we do read leases reliance must not be placed on our interpretation of these documents without reference to solicitors, particularly where purchase or lending against the security of a property is involved.

26. Covenant

We reflect our general appreciation of potential purchasers' likely perceptions of the financial status of tenants. We do not, however, carry out detailed investigations as to the financial standing of the tenants, except where specifically instructed, and assume, unless informed otherwise, that in all cases there are no significant arrears of payment and that they are capable of meeting their obligations under the terms of leases and agreements.

27. Loan Security

Where instructed to comment on the suitability of property as a loan security we are only able to comment on any inherent property risk. Determination of the degree and adequacy of capital and income cover for loans is the responsibility of the lender having regard to the terms of the loan.

28. Build Cost Information

Where our instruction requires us to have regard to build cost information, for example in the valuation of properties with development potential, we strongly recommend that you supply us with build cost and other relevant information prepared by a suitably qualified construction cost professional, such as a quantity surveyor. We do not hold ourselves out to have expertise in assessing build costs and any property valuation advice provided by us will be stated to have been arrived at in reliance upon the build cost information supplied to us by you. In the absence of any build cost information supplied to us, we may have regard to published build cost information. There are severe limitations on the accuracy of build costs applied by this approach and professional advice on the build costs should be sought by you. The reliance which can be placed upon our advice in these circumstances is severely restricted. If you subsequently obtain specialist build cost advice, we recommend that we are instructed to review our advice.

29. Reinstatement Assessments

A reinstatement assessment for insurance purposes is a specialist service and we recommend that separate instructions are issued for this specific purpose. If advice is required as a check against the adequacy of existing cover this should be specified as part of the initial instruction. Any indication given is provided only for guidance and must not be relied upon as the basis for insurance cover. Our reinstatement assessment should be compared with the owner’s and if there is a material difference, then a full reinstatement valuation should be considered.

30. Comparable Evidence

Where comparable evidence information is included in our report, this information is often based upon our oral enquiries and its accuracy cannot always be assured, or may be subject to undertakings as to confidentiality. However, such information would only be referred to where we had reason to believe its general accuracy or where it was in accordance with expectation. In addition, we have not inspected comparable properties.

31. Regulated Purpose Valuations (RPV)

When instructed in a continuing role as a Valuer it is Knight Frank Saint-Petersburg AO’s policy to rotate persons responsible for valuations and the signatory to the report, on a seven yearly basis, unless specifically agreed otherwise.

Valuation Bases Market value (MV):

Valuations based on Market Value shall adopt the definition, and the conceptual framework, settled by the International Valuation Standards Committee.

Market Value is defined as:

Market rent (MR):

Market Rent is defined as:

The estimated amount for which a property would be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Projected Market Value (PMV) of Residential Property only

Projected Market Value is designed to provide residential mortgage lenders with a simple numeric indication of the valuer’s opinion of short-term market trends and is defined as:

The estimated amount for which a property is expected to exchange at a date, after the valuation date and specified by the valuer, between a willing buyer and a willing seller, in an arm’s-length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

Regulated Purpose Valuations (RPV)

RICS has established particular requirements in circumstances where a valuation although provided for a client may also be of use to third parties, for instance, the shareholders in a company, defined by the RICS as Regulated Purpose Valuations. Where a valuation is for a Regulated Purpose, in accordance with RICS requirements, Knight Frank St Petersburg AO shall state the following in its report:

(a) The length of time the valuer has continuously been the signatory to valuations provided to the client for the same purpose as the Report, together with the length of time Knight Frank St Petersburg AO has continuously been carrying out the valuation instruction for the client.

(b) The extent and duration of the relationship of Knight Frank St Petersburg AO with the client.

(c) In relation to Knight Frank AO’s preceding financial year the proportion of the total fees, if any, payable by the client to the total fee income of Knight Frank St Petersburg AO expressed as one of the following:

Less than 5% ; or

If more than 5%, an indication of the proportion within a range of 5 percentage points.

(d) Where, since the end of the last financial year, it is anticipated that there will be a material increase in the proportion of the fees payable, or likely to be payable, then we shall include a further statement to that effect in addition to (c) above.

When instructed in a continuing role as a Valuer it is Knight Frank AO’s policy to rotate persons responsible for valuations and the signatory to the report, on a seven yearly basis, unless specifically agreed otherwise.

Appendix 2 Description of the Properties

1. Kazanskaya 36

Name Kazanskaya 36 Property type Operating office Address Litera Б, 36, Kazanskaya St., St Petersburg The Property is located in Admiralteysky District of St Petersburg within 10-minute walk from Sadovaya, Spasskaya and Sennaya Ploschad metro stations, convenient transport available. The following landmarks are situated in close proximity to the Property: Palace Square, Hermitage Museum, Senatskaya Square, St. Kazan Cathedral, Kazanskaya Square, Nikolskaya Square, Teatralnaya Square and etc. The variety of restaurants, bars, boutQ1ues and stores are located on Nevsky Ave. Bolshoy Gostiny Dvor Shopping Centre is located within a 20-minute walk of the Property.

Location

Photo

The Property comprises an office scheme building around a square courtyard with vehicular access via the front facade. The five- to eight- floor scheme retains its historic facade and provides Description partitioned class В office accommodation with completed finishing. There is internal parking for 6 parking spaces in the five-floor section. 15 open-air parking spaces are provided in the internal yard. Stage of Completed Development strategy Hold development Areas Total buildings area 7434 Land plots 0.25 hectares (2,526.4 sqm) GLA 4956,4 GLA Ratio 67% NSA (excluding 4956.4 parking) Available commercial premises Office area 4956 4956 area Parking lots/area - Available parking lots -

Tenure freehold (ownership certificates 78-АЗ 359967 dated June 10, 2014; 78-АЗ 359968 dated June 10, Buildings 2014; 78-АЗ 359971 dated June 10, 2014) Land plot freehold (ownership certificate 78-АЗ 359969 dated June 10, 78-АЗ 359970 dated June 10, 2014) At the valuation date all the premises of the Property are leased by the companies affiliated with Tenancies LSR Group. Terms and Reversion Method and Comparative Method were applied. Terms and Reversion Method considerations: Average rental rate (Terms /Reversion period), rubles per sqm p.a.: 11,611/20,879; Valuation Average OpEx, rubles per sqm p.a.: 4,236 considerations Caprate (Terms /Reversion period): 10%/10.75%; Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date January 28, 2019 Market value, rubles 800,709,000

2. Zolotaya Kazanskaya

Name Zolotaya Kazanskaya Property type Operating office Address 44, Kazanskaya St., St Petersburg The Property is located in Admiralteysky District of St Petersburg within 15-minute walk from Sadovaya, Spasskaya and Sennaya Ploschad metro stations, convenient transport access. The following landmarks are situated in close proximity to the Property: Palace Square, Hermitage Museum, Senatskaya Square, St. Kazan Cathedral, Kazanskaya Square, Nikolskaya Square, Teatralnaya Square and etc. The variety of restaurants, bars, boutQ1ues and stores are located on Nevsky Ave. Bolshoy Gostiny Dvor Shopping Centre is located within a 20-minute walk of the Property.

Location

Photo

The Property comprises an office scheme building around a square courtyard with vehicular access Description via the front facade. The five-floor scheme retains its historic facade and provides partitioned class В office accommodation fully fitted out. There is a parking for 10 cars in the internal yard. Stage of Completed Development strategy Hold development Areas Total buildings area, 3,059 Land plot area 0.15 hectares (1,475 sqm) sqm NSA (excluding 2,699 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises 2,699 2,699 area, sqm area, sqm

Other premises area, Available other premises area, - - sqm sqm Parking lots/area - Available parking lots - Tenure freehold (ownership certificates 78-АЗ 055289 dated September 4, 2013; 78-АЗ 055287 dated September 4, 2013; 78-АЗ 055283 dated September 4, 2013; 78-АЗ 055408 dated September 4, 2013; 78-АЗ 055403 dated September 4, 2013; 78-АЗ 055401 dated September 4, 2013; 78-АЗ 055290 dated September 4, 2013; 78-АЗ 055288 dated September 4, 2013; 78-АЗ 055404 dated September 4, 2013; 78-АЗ 055285 dated September 4, 2013; 78-АЗ 055282 dated September 4, 2013; 78-АЗ 055284 dated September 4, 2013; 78-АЗ 055281 dated September 4, 2013; 78-АЗ 055410 dated September 4, 2013; 78-АЗ 055409 dated September 4, 2013; 78-АЗ 055402 dated Buildings September 4, 2013; 78-АЗ 055405 dated September 4, 2013; 78-АЗ 055496 dated September 4, 2013; 78-АЗ 055406 dated September 4, 2013; 78-АЗ 055721 dated September 4, 2013; 78-АЗ 055560 dated September 4, 2013; 78-АЗ 112236 dated September 4, 2013; 78-АЗ 055658 dated September 4, 2013; 78-АЗ 055297 dated September 4, 2013; 78-АЗ 112238 dated September 4, 2013; 78-АЗ 112237 dated September 4, 2013; 78-АЗ 055659 dated September 4, 2013; 78-АЗ 112235 dated September 4, 2013; 78-АЗ 055657 dated September 4, 2013; 78-АЗ 479049 dated September 2, 2014; 78-АЗ 479995 dated September 4, 2014) Land plot 0 At the valuation date all the premises of the Property are leased by the companies affiliated with Tenancies LSR Group. Terms and Reversion Method and Comparative Method were applied. Terms and Reversion Method considerations: Average rental rate (Terms /Reversion period), rubles per sqm p.a.: 14,470/17,855; Valuation Average OpEx, rubles per sqm p.a.: 2,565 considerations Caprate (Terms /Reversion period): 10%/10.75%; Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date January 28, 2019 Market value, rubles 373,227,000

3. Paradny Kvartal BC 11

Name Paradny Kvartal BC 11 Property type Operating office Address liter A, 39, Kirochnaya St, St Petersburg The office center is located in Central District of St Petersburg, it takes 10 minutes to walk from Chernyshevskaya metro station. The access to the Property is provides from Paradnaya St. or Kirochnaya St. The proximity of main thoroughfares such as Suvorovskiy Ave, Nevsky Ave, Ligovsky Ave, Voskresenskaya and Smolnaya Embankments provides easy access the Property from various parts of the city. The following landmarks are situated in the surroundings of the Property: Tavrichesky Garden and Palace, Smolny Cathedral, Suvorov Museum. Paradny Kvatal is a mixed-use complex. It is implied the residents will access the diverse infrastructure of this residential complex consisting of stores, supermarkets, educational facilities and a fitness center nearby.

Location

Photo

At the valuation date the Property comprises the office complex (3 floors above ground and 1 underground) with a preserved historic facade. The building was built in 1802-1805 years and after Description reconstruction in 2010 became a part of Paradny Kvartal mixed-used complex. At the valuation date the Property is used by the owner (LSR group). The construction scheme, the floor layouts and the finishing of the Property matches standards of A-class business center. Stage of Completed Development strategy Hold development Areas 9.57 hectares (the part of the Total buildings area, 3,718 Land plot area land plot related to the sqm Property is not isolated) NSA (excluding 2,886 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises 2,886 Available commercial premises 2,886

area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 12 lots/416.9 sqm Available parking lots 12 Tenure freehold (ownership certificates 78-АЖ 837255 dated February 8, 2013; 78-АЖ 837256 dated February 8, 2013; 78-АЖ 837257 dated February 8, 2013; 78-АЖ 837258 dated February 8, 2013; 78-АЖ 837259 dated February 8, 2013; 78-АЖ 837380 dated February 8, 2013; 78-АЖ 837381 dated February 8, 2013; 78-АЖ 837382 dated February 8, 2013; 78-АЖ 837383 dated February 8, 2013; 78-АЖ 837384 dated February 8, 2013; 78-АЖ 837385 dated February 8, 2013; Buildings 78-АЖ 837400 dated February 8, 2013; 78-АЖ 837386 dated February 8, 2013; 78-АЖ 837387 dated February 8, 2013; 78-АЖ 837388 dated February 8, 2013; 78-АЖ 837389 dated February 8, 2013; 78-АЖ 837390 dated February 8, 2013; 78-АЖ 837391 dated February 8, 2013; 78-АЖ 837392 dated February 8, 2013; 78-АЖ 837393 dated February 8, 2013; 78-АЖ 837394 dated February 8, 2013; 78-АЖ 837395 dated February 8, 2013; 78-АЖ 837396 dated February 8, 2013; 78-АЖ 837397 dated February 8, 2013; 78-АЖ 837399 dated February 8, 2013) Land plot - At the valuation date all the premises of the Property are leased by the companies affiliated with Tenancies LSR Group. Terms and Reversion Method and Comparative Method were applied. Terms and Reversion Method considerations: Average rental rate (Terms /Reversion period), rubles per sqm p.a.: 10,855/23,653; Valuation Average OpEx, rubles per sqm p.a.: 2,568 considerations Caprate (Terms /Reversion period): 10%/10.75%; Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 564,961,000

4. Kazanskaya 60

Name Kazanskaya 60 Property type Operating office Address liter A, 18, Fonarny lane, St Petersburg The Property is located in Admiralteysky District of St Petersburg within a 20-minute walk from Sadovaya/Spasskaya/Sennaya Ploschad metro stations. The entrance to the office center is available from Kazanskaya St. The Property is easily accessible from the main thoroughfares of the district such as Nevsky Ave, Sadovaya St. and Fontanka River Embankment. The main landmarks of the city are situated in the neighbourhood of the Property: Hermitage Museum, Palace Square, Admiralty, Senatskaya Square, Kazan Cathedral, Kazanskaya Square, Nikolskaya Square and Teatralnaya Square. A great number of restaurants, bars, boutQ1ues and stores are located in the neighborhood.

Location

Photo

The Property comprises an office center complex with vehicular access via the front facade. The 6- Description floor scheme (6 floors on one side and 5 floors with mansard on the other) retains its historic facade and provides partitioned class В office with completed finishing. Stage of Completed Development strategy Hold development Areas the part of the land plot Total buildings area, 2,187 Land plot area related to the Property is not sqm isolated NSA (excluding 2,019 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm

Commercial premises Available commercial premises 2,019 2,019 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area - Available parking lots - Tenure freehold (ownership certificates 78-AZ 111574 dated July 8, 2016; 78-AИ 111573 dated July 8, 2016; 78-AИ 111575 dated July 8, 2016; 78-AИ 111576 dated July 8, 2016; 78-AИ 111574 dated July 8, 2016; 78-AИ 111578 dated July 8, 2016; 78-AИ 111579 dated July 8, 2016; Buildings 78-AИ 111577 dated July 8, 2016; 78-AИ 111572 dated July 8, 2016; 78-AИ 111571 dated July 8, 2016; 78-AZ 113628 dated October 9, 2013; 78-AZ 304014 dated February 21, 2014; 78-АЖ 351209 dated November 24, 2011; 78-АЖ 351210 dated November 24, 2011; 78-АЖ 351361 dated November 24, 2011; 78-АЖ 518131 dated April 7, 2012; 78-АЖ 518132 dated April 7, 2012) Land plot - At the valuation date all the premises of the Property are leased by the companies affiliated with Tenancies LSR Group. Terms and Reversion Method and Comparative Method were applied. Terms and Reversion Method considerations: Average rental rate (Terms /Reversion period), rubles per sqm p.a.: 14,317/16,931; Valuation Average OpEx, rubles per sqm p.a.: 4,531 considerations Caprate (Terms /Reversion period): 10%/10.75%; Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date January 28, 2019 Market value, rubles 222,511,000

5. Radishcheva 39

Name Radishcheva 39 Property type Operating office Address Lit M, 39, Radishcheva St, St Petersburg The Property is located in the Central District of St Petersburg, within a 10-minute walk from Chernyshevskaya metro station. The Property borders the mix-used complex of Paradny Kvartal and is logical extension of its concept. The landmarks and recreation subjects in the surrounding are Tavrichesky Garden, Tavrichesky Palace, Suvorov Museum. Also a number of educational facilities are in close proximity to the Property.

Location

Photo

The Property is a built-in commercial premises in the residential complex. The premises are located Description at the ground floor and can be used as office or street-retail. Stage of Completed Development strategy Hold development Areas Total buildings area, 276 Land plot area - sqm NSA (excluding 276 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises 276 276 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area - Available parking lots -

Tenure Buildings - Land plot freehold (ownership certificates 78 АВ 11354 dated August 31, 2006) Tenancies At the valuation date all the premises of the Property are used by LSR Group. Applied method(-s) of valuation: Income and Compare; Income Method considerations: Rental rate, rubles per sqm p.a.: 20,305; Valuation Average OpEx, rubles per sqm p.a.: 3,021 considerations Caprate: 9% Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 53,589,000

6. Smolny Park

Name Smolny Park Property type Elite class residential Address Lit A, 4, Smolnogo St, St.Petersburg The Property is located in the Central Administrative District of St Petersburg, on Smolnogo St., within a 25-minute walk from Chernyshevskaya metro station. The Property is situated in the historical centre of the city, a short distance from Shpalernaya St. and Suvorovsky Ave that provide direct access to Vosstaniya Square and Nevsky Prospect (approx., 3.3 km from the Property), and borders Smolnaya Embankment. The Smolny Cathedral, Alexander Institute for Noble Maidens, the Parter Garden with fountains comprises the immediate surroundings of the Property. The existing amenities will be further improved by retail premises on the ground floors of the Smolny Park residential buildings and other new buildings in surrounding area (e.g. in 2016 the supermarket of Lenta has been opened in Basel BC). The scheme will provide residential accommodation in a quiet park zone in the very centre of the city with educational institutions nearby.

Smolny Park Location

Photo

Elite-class residential complex of 14 buildings. The scheme varies in height between 1 and 8 above Description ground floors with 3-3.45 m ceiling height, comprises office and retail space, and an underground car park with 832 car spaces and elevators connecting parking and apartments. Stage of Completed Development strategy Sell development Areas Total buildings area, 123,032 Land plot area 8.65 sqm NSA (excluding 64,983 parking), sqm Residential premises Available residential premises 63,146 2,431 area, sqm area, sqm

Commercial Available commercial premises 1,837 - premises area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 830 Available parking lots 199 Tenure Buildings - leasehold (lease agreement on investment terms 20/ZK-02037 dated June 24, 2004; Addendum Land plot dated July 18, 2006; Addendum 2 dated December 28, 2006; Addendum dated September 6, 2007; Addendum 4 dated August 20, 2009; Addendum 5 dated May 12, 2010) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: March 2012/December 2016; ● Sales start/completion dates: July 2012/December 2021; ● Stage of development: Ph.2, Ph.3, Ph.4 – completed; ● Number of phases: 3 (according to provided data); Valuation ● Estimated costs after the valuation date: 250,000 RUB considerations ● Prices per sqm or parking unit: residential Ph.4: 405,159 RUB; parking units Ph2: 1,892,000 Rub, Ph.3: 2,017,949 Rub, Ph4: 2,100,000 Rub. ● Estimated income (in current prices): 17,383,617,000 RUB (including 283,983,617 RUB for bargains before December 31, 2018); ● Discount Rate: 17.96% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, 1,517,274,000 rubles

7. Verona

Name Verona Property type Elite class residential Address Lit A, 29, Morskoy Pr, St.Petersburg The Property is located in Petrogradsky District of St Petersburg, in the central part of Kresotvsky Island and is within a 5-minute walk from Krestovsky Ostrov metro station. The surrounding of the land plot is represented by elite residential complexes. There is a park zone a short walking distance to the east of the Property. Also the landmarks in the neighborhood are Elagin Palace, Divo-Ostrov entertainment park, two yacht-clubs, restaurants, sporting and educational facilities. There is a new football stadium «St. Petersburg Arena» is in the eastern part of Krestovsky Island being a place for sport and concert events.

Location

Photo

Residential complex comprising 80 elite-class residential premises with 3-3.2 m ceiling height and Description an underground car park for 111 car spaces. The Property comprises the modern security system, de-lux classified elevators (OTIS) and modern building engineering systems. Stage of Completed Development strategy Sell development Areas Total buildings area, 20,329 Land plot area 0.36 hectares sqm NSA (excluding 12,044 parking), sqm Residential premises Available residential premises 10,263 2,800 area, sqm area, sqm Commercial premises Available commercial premises 1,451 sqm - area, sqm area, sqm Other premises area, 330 Available other premises area, 168

sqm sqm Parking lots/area 111 parking lots/1,471 sqm Available parking lots 46 Tenure Buildings - Land plot freehold (ownership certificate 78-АЖ 029869 dated November 18, 2010) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: August 2015/June 2018; ● Sales start/completion dates: December 2014/December 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 1,831,000 RUB; considerations ● Prices per sqm or parking unit: residential: 406,814 RUB; other premises – 116,256 RUB, parking: 2,276,261 RUB; ● Estimated income (in current prices): 1,354,572,000 RUB (including 91,040,200 RUB for bargains before December 31, 2018); ● Discount Rate: 15.60% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 1,261,285,000

8. Neva Art, Neva Residence (REB Flota)

Neva Art, Neva Residence Name Property type Elite class residential (REB Flota) Address 17, Remeslennaya St., St Petersburg The Property is located in Petrogradsky District of St Petersburg. The Property is on Petrovsky Island that is now being developed as a new premium location being close to the city center. For a long time this location remained a territory of old industrial buildings and zones neighbouring with yacht clubs and restaurants in the western part of the island. Nowadays a number of residential development projects are being under construction on Petrovsky island. The closest ones are Royal Park (Kortros), Ostrov (Stroitelny Trest), Petrovskaya riv’era (Severniy Gorod), Petrovsky Park (Setl City), Petrovskaya Dominanta (Etalon). The closest metro station is Sportivnaya (within a 10-minute walking distance from the Property). The Property access by vehicles is provided from Remeslennaya St. At the valuation date the construction of the bridge through Serny island connecting Petrogradsky and Vasileostrovsky districts is completed. The commission of the new bridge has improved the accessibility of Petrovsky island and the Property.

Location

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Land plots with a project of an elite residential complex construction. The object is planned to be Description completed in 2022. The new residential complex will comprise of residential and commercial premises, underground parking, pre-school and apartments. Stage of Design Development strategy Build and sell development Areas Total buildings area, 216,942 Land plot area 7.82 hectares sqm NSA (excluding 116,397 parking), sqm

Residential premises Available residential premises 63,391 63,298 area, sqm area, sqm Commercial premises Available commercial premises 3,489 3,489 area, sqm area, sqm Other premises area, Available other premises area, 49,517 49,517 sqm sqm Parking lots/area 1,238 parking lots/16,404 sqm Available parking lots 1,238 Tenure Buildings - freehold (Extracts from the United State Register of Real Estate Property, dated September 28, Land plot 2016 and November 02, 2016) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: February 2019/December 2022; ● Sales start/completion dates: February 2019/June 2024; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 12,631,900,000 RUB considerations ● Prices per sqm or parking unit: (residential: 212,242 RUB; commercial: 180,000 RUB; apartments: 212,219 RUB; parking: 1,939,418 RUB) ● Estimated income (in current prices): 26,990,268,000 RUB (including income from bargains before December 31, 2018 in the amount of 18,218,050 Rub); ● Discount Rate: 12.84% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 9,370,425,000

9. Neva Haus

Name Neva Haus Property type Elite class residential Address 9, 11, Petrovsky Av., St Petersburg The Property is located in Petrogradsky District of St Petersburg. The Property is on Petrovsky Island that is now being developed as a new premium location being close to the city center. For a long time this location remained a territory of old industrial buildings and zones neighbouring with yacht clubs and restaurants in the western part of the island. Nowadays a number of residential development projects are being under construction on Petrovsky island. The closest ones are Royal Park (Kortros), Ostrov (Stroitelny Trest), Petrovskaya riv’era (Severniy Gorod), Petrovsky Park (Setl City), Petrovskaya Dominanta (Etalon). The closest metro station is Sportivnaya (within a 10-minute walking distance from the Property). The Property access by vehicles is provided from Remeslennaya St. At the valuation date the construction of the bridge through Serny island connecting Petrogradsky and Vasileostrovsky districts is completed. The commission of the new bridge has improved the accessibility of Petrovsky island and the Property.

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Neva Haus

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Land plots with a project of an elite residential complex construction. The object is planned to be Description completed in 2022. The new residential complex will comprise of residential and commercial premises and underground parking. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 190,789 Land plot area 6.28 hectares sqm

NSA (excluding 110,747 parking), sqm Residential premises Available residential premises 106,411 75,548 area, sqm area, sqm Commercial premises Available commercial premises 4,336 3,644 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 879 parking lots/11,646 sqm Available parking lots 879 Tenure Buildings - freehold (Extracts from the United State Register of Real Estate Property, dated October 17, 2016, Land plot October 18, 2016, October 26, 2016 and November 03, 2016) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: October 2017/December 2022; ● Sales start/completion dates: October 2017/December 2023; ● Number of phases: 3; Valuation ● Estimated costs after the valuation date: 11,650,533,000 RUB considerations ● Prices per sqm or parking unit: (residential: 232,048 RUB; commercial: 176,779 RUB; parking: 1,597,413 RUB) ● Estimated income (in current prices): 20,293,946,000 RUB (including 714,983,987 RUB for bargains before December 31, 2018) ● Discount Rate: 15.99% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 6,046,756,000

10. Osobnyak Truvorova

Name Osobnyak Truvorova Property type Elite class residential

Address liter A, 64, Martynova Emb., St Petersburg

Osobnyak Truvorova has the premium location for elite residential property in St Petersburg – on Krestovsky island. A lot of high-end real estate is concentrated here. The main advantages of the place are comfortability, calmness and safety due to the extended park area located in immediate proximity. Many cafes, restaurants, sports facilities (for instance, courts for lawn tennis, football fields, etc.), entertainment services are situated in the neighborhood.

Location

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The mansion that belonged to Askalon Truvorov, famous St Petersburg archeografer, was built in the neoclassical style on Krestovsky Island in 1893 by architect Rukteshel. Osobnyak Truvorova was renovated with care for its historic appearance. It has its own landscaped area, separated from Martynova Emb. The main facade overlooks Srednyaya Nevka embankment and Elagin Island. The Description building looks impressive: the front facade is decorated with columns and mascarons (lion masks), large arched windows. The building is colored in light yellow. The Property may have a different purpose of use – from the comfortable living residence to an apartment of class de luxe, as well as any commercial purpose. The house consists of 3 floors including the basement. Stage of Completed Development strategy Sell development Areas

Total buildings area, 1,238 Land plot area 0.21 hectares sqm NSA (excluding - parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises - - area, sqm area, sqm Other premises area, Available other premises area, 1,238 1,238 sqm sqm Parking lots/area - Available parking lots - Tenure

Buildings freehold (ownership certificate 78 АИ 102030 dated November 16, 2015)

Land plot freehold

Tenancies Building – freehold (ownership certificate 78 АИ 102030 dated November 16, 2015)

● Applied method(-s) of valuation: Comparative Method; ● Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation ● Sales start/completion dates: October 2016/December 2023; considerations ● Estimated costs after the valuation date: 0 RUB ● Prices per sqm or parking unit: other premises area: 377,999 RUB; ● Estimated income (in current prices): 468,000,000 RUB ● Discount Rate: not calculated

Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 507,000,000

11. Russkiy dom

Name Russkiy dom Property type Elite class residential Address 5, Korolenko St., St Petersburg The Property is located in the Central District of St Petersburg within a 10-minute walk from Chernyshevskaya metro station. The proximity of main thoroughfares such as Nevsky Ave, Ligovsky Ave, Voskresenskaya and Smolnaya Embankments provides easy access the Property from various parts of the city. The Property is surrounded by the administrative buildings built in the 18th-19th centuries, many of which are of historical value. The largest orthodox church in the city, Spaso-Preobrazhensky Cathedral is in close proximity to the Property.

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An elite residential complex is completed in 2018. Compositional decision of the project is based on a combination of open pedestrian area and two spacious private courtyards. The core of the Description composition is the courtyard space visually opened to Baskov Lane. Dynamic silhouette, expressiveness of the facade composition, the presence of bay windows, towers allow the new complex to become an organic element of the existing historic look of the city. Stage of Completed Development strategy Sell development Areas Total buildings area, 93,725 Land plot area 2,40 ha sqm NSA (excluding 56,269 parking), sqm

Residential premises Available residential premises 49,097 6,289 area, sqm area, sqm Commercial premises Available commercial premises 6,977 1,247 area, sqm area, sqm Other premises area, Available other premises area, 195 143 sqm sqm Parking lots/area 554/7,341 sqm Available parking lots 226 Tenure Buildings - Land plot freehold (ownership certificate 78 АЗ 689775 dated April 16, 2015) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: April 2015/June 2018; ● Sales start/completion dates: March 2015/June 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 63,764,000 RUB considerations ● Prices per sqm or parking unit: (residential: 321,420 RUB; commercial: 163,438 RUB; other premises: 155,209 RUB; parking: 2,095,949 RUB) ● Estimated income (in current prices): 3,533,863,000 RUB (including 812,704,433 RUB for bargains before December 31, 2018); ● Discount Rate: 15.60% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 3,131,897,000

12. Europa City

Name Europa City Property type Business class residential Address Liter Ж, 10, Medikov Ave, St Petersburg The Property is located to the north-east of the Petrogradsky District of St Petersburg, within a 10- minute walk from Petrogradskaya metro station. The project has a good transport accessibility from vary districts of the city due to the main thoroughfares of Petrogradsky District – Medikov Ave, Kamennoostrovsky Ave and Bolshoy Petrogradskoi Storony Ave, Aptekarskaya Embankment. The major arterial routes of Petrogradsky District have a large number of retail shops, restaurants, cinemas and modern business centers. Botanical Garden and Lopuhinskiy Garden are within a 10-minute walk from the site.

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Business-class residential complex comprising 17 residential buildings of varied height (9 and 14 floors), some of which comprise ground floor commercial premises. The construction of the housing divided Description into 4 Phases. At the valuation date all phases have been completed. The project includes a kindergarten, an underground car park, a surface parking and green areas with a unQ1ue landscape design. Stage of Completed Development strategy Sell development Areas Total buildings 135,554 sqm (Ph.3: 70,109 sqm; Land plot area 7.36 hectares area, sqm Ph.4: 65,445 sqm) NSA (excluding 84,120 sqm (Ph.3: 42,675 sqm; parking), sqm Ph.4: 41,445 sqm) Residential 71,634 sqm (Ph.3: 36,744 sqm; Available residential premises 1,336 sqm (Ph.3: 219 sqm; Ph.4: premises area, Ph.4: 34,890 sqm) area, sqm 1,117 sqm) sqm

Commercial 11658.2 (Ph3: 5,434 sqm; Ph4: Available commercial premises 357 (Ph3: 119 sqm; Ph4: 238 premises area, 6,224 sqm) area, sqm sqm) sqm Other premises 828 sqm (Ph.3: 497 sqm; Ph.4: Available other premises area, 23 area, sqm 331 sqm) sqm 492 parking lots/6,519 sqm 248 (Ph.3: 122 lots; Ph.4: 126 Parking lots/area Available parking lots (Ph.3: 303 lots; Ph.4: 189 lots) lots) Tenure Buildings - Land plot Land plot – freehold (ownership certificate 78-АЖ 570124 dated June 26, 2012) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: March 2012/September 2017 ; ● Sales start/completion dates: May 2014/June 2020; ● Number of phases: 4; ● Estimated costs after the valuation date: 1,333,000 RUB Valuation ● Prices per sqm or parking unit: residential Ph.3: 151,980 RUB; residential Ph.4: 153,155 RUB; considerations commercial Ph.3: 170,000 RUB; commercial Ph.4: 170,000 RUB; self storage Ph.4: 65,000 RUB, parking Ph.3: 1,450,000; parking Ph.4: 1,451,984 RUB; ● Estimated income (in current prices): 736,657,000 RUB (including 110,354,162 RUB for bargains before December 31, 2018); ● Discount Rate: 15.49% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, 672,064,000 rubles

13. Tri Vetra

Name Tri Vetra Property type Business class residential Address Plot 151, Block 66a, Savushkina St., St Petersburg The Property is located in the Primorsky District of St Petersburg. The neighborhood of the Property includes new built housing complexes, shopping centers, hypermarkets. Despite of the location in the district with a difficult transport accessibility, the Property has a beneficial location due to the proximity to the new thoroughfare – West high-speed Diameter (ZSD). The other benefit of the Property location is the proximity to the Gulf of Finland. The city park (Park 300- letiya Sankt-Peterburga) is in 10-minutes walk from the Property. The closest metro station - Begovaya is in 15-minutes walk from the Property.

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Business class residential complex comprising 3 residential 13-floor buildings including in total Description 758 apartments. The Property comprises commercial premises, an underground parking and two multilevel above ground parking buildings for 720 parking spaces in total. Stage of Completed Development strategy Sell development Areas Total buildings area, 108,246 Land plot area 3.0488 hectares sqm NSA (excluding 55,871 parking), sqm Residential premises Available residential premises 52,564 8,106 area, sqm area, sqm

Commercial premises Available commercial premises 2,491 1,665 area, sqm area, sqm Other premises area, Available other premises area, 816 sqm 106 sqm sqm Parking lots/area 720 parking lots/9,540sqm Available parking lots 530 Tenure Buildings - leasehold (land lease agreement 17/ЗД-03630 dated January 20, 2006, #2 dated May 12, 2010; #3 Land plot dated September 1, 2011; #4 dated November 15, 2012) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: June 2015/December 2017; ● Sales start/completion dates: April 2015/June 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 52,152,000 RUB considerations ● Prices per sqm or parking unit: residential: 193,101 RUB; commercial: 123,267 RUB; self storage: 78,124 RUB, parking: 981,921 RUB) ● Estimated income (in current prices): 2,486,137,000 RUB (including 187,035,325 RUB for bargains before December 31, 2018); ● Discount Rate: 15.96% Valuation date December 31, 2018 Inspection date January 23, 2019 Market value, rubles 2,193,826,000

14. Moskovskoye Hgwy (NEO, NEO Park)

Moskovskoye Hgwy (NEO, NEO Business class residential and Name Property type Park) hotel Address liter Д, 3, Moskovskoye Hw, St Petersburg The Property is located in Moskovsky District of St Petersburg, at the crossroad of Moskovskoye Highway and Dunaisky Ave. The Property is located in 15 minutes walk from Zvezdnaya metro station. Moskovskoye and Pulkovskoye Highways provide easy and direct access both to the city center and to the areas beyond the St Petersburg ring road, and to Pulkovo Airport also. Dunaysky Ave is also an important thoroughfare connecting the southern districts of the city. The commercial infrastructure of the neighborhood is represented by hypermarkets (Lenta, O'Key, METRO Cash & Carry, OBI). In the proximity to the Property two new shopping and entertainment centers are located – Kontinent and Torgovy Dvor. Park Gorodov Geroyev, a large green area with a pond, is only 100 m from the Property.

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At the valuation date the residential complex is completed. The construction of the hotel is ongoing. The business class residential complex comprises 89 residential premises, parking for 81 cars, self-storage Description premises. The hotel comprises 253 rooms, built-in commercial premises and parking for 84 cars. The Property is located at its own land plot closely to Viva housing complex, but belongs to the higher class. Proximity to the housing complex of Viva makes its infrastructure available. Stage of Design (NEO Park)/completed Development strategy Build and sell development (NEO) Areas

Total buildings 40,124 sqm (NEO: 15,963 sqm, Land plot area 1.85 hectares area, sqm NEO Park: 24,161 sqm) NSA 24,387 sqm (NEO: 9,496 sqm, (excluding NEO Park: 14,891 sqm) parking), sqm Residential Available residential premises premises area, 9,205 1,855 area, sqm sqm Commercial Available commercial premises premises area, 1,807 1,807 area, sqm sqm Other 13,375 sqm (Self-storages in NEO 12,890 sqm (Self-storages in NEO Available other premises area, premises area, 291 sqm; apartments in the NEO 47 sqm; apartments in the NEO sqm sqm Park: 13,084 sqm) Park: 12,844 sqm) 165 parking lots/2,186.5 sqm Parking (NEO – 1,073.25 sqm, NEO Park – Available parking lots 109 lots/area 1,113 sqm) Tenure Buildings - Land plot freehold (ownership certificate 78-АЖ 865239 of February 12, 2013, ownership cerificate of April 12, 2016) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: NEO – December 2015/December 2017; NEO Park – November 2018/December 2021; ● Sales start/completion dates: NEO – September 2015/December 2020; NEO Park – September 2018/December 2023; Valuation ● Number of phases: 1; consideration ● Estimated costs after the valuation date: 990,867,000 RUB (NEO – 1,209,000 RUB, NEO Park – s 989,658,000 RUB); ● Prices per sqm or parking unit: residential: 223,048 RUB; commercial: 106,189 RUB; self storage: 100,000 RUB; apartments: 150,477 RUB; parking: 1,000,000-2,040,000 RUB); ● Estimated income (in current prices): 2,764,483,000 RUB (including 86,421,626 RUB for bargains before December 31, 2018); ● Discount Rate: 15.49%/ 12.46%" Valuation December 31, 2018 Inspection date December 20, 2018 date Market value, 1,374,811,000 rubles

15. Morskoy Fasad

Name Morskoy Fasad Property type Business class residential Nevskaya Guba, plots 12, 13, 14, 15 (to the west from Vasil’evskiy Island blocks 10, 11, 12, 13), St Address Petersburg Property is located in the south part of alluvial area of Vasilievsky Island. The nearest metro station – «Primorskaya» (within a 30-minute walking distance from the Property). New metro station «Morskoy Faсade» is being designed (within a 10-minute walking distance from the Property), is going to be completed in 2021. The building area will be provided with all necessary social, business and transport infrastructure and its own 25 hectares park. The main access roads to the Property will be the street-road network of Vasilievskiy Island: Michmanskaya St, Morskaya Emb.

Location

Morskoy Fasad

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Property is divided in two zones. The «Sea view» zone – commercial residences on the first line Description with view on the Gulf of Finland. The «Boulevard» zone – commercial residences with park view. The process of environment and alluvial territories development is planned for March 2019. Stage of Design Development strategy Build and sell development Areas Total buildings area, 885,876 Land plot area 33.9 hectares sqm NSA (excluding 531,881 parking), sqm Residential premises Available residential premises 503,088 503,088 area, sqm area, sqm Commercial premises Available commercial premises 25,261 25,035 area, sqm area, sqm Other premises area, Available other premises area, 3,531 3,531 sqm sqm Parking lots/area 4,022/ 53,291.5 sqm Available parking lots 4,022

Tenure Buildings - Land plot freehold (Extracts from the United State Register of Real Estate dated September 06, 2017) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: March 2019/December 2027; ● Sales start/completion dates: June 2019/ December 2028; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 44,023,835,000 RUB considerations ● Prices per sqm or parking unit: residential: 126,221 RUB; commercial: 150,000 RUB, self-storages: 65,000 sqm; parking: 750,000 RUB) ● Estimated income (in current prices): 70,357,190,000 RUB (including 23,793,000 RUB for the bargains before December 31, 2018) ● Discount Rate: 12.91% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 11,829,549,000

16. Riviere Noire

Name Riviere Noire Property type Business class residential Address 3, Lit. А, К, Д, Chernoy Rechki Emb., St Petersburg Property is located in close proximity to the central part of the city (the border with the Petrogradskiy District goes through the Neva river). Property is located to the east of the confluence of the Chyornaya river to the Neva river. The closest metro station – «Сhyornaya Rechka» (within 15 minutes walking). Property is located close to a big amount of cultural and leisure facilities: Stroganovsky Park, Pionersky Garden, Tihiy Otdih Park, ZPKiO park, etc. Also located nearby: “Aquatoria” business center (with restaurant-market and fitness center), Torzhkovskiy market with a variety of different shops. Property has good transport access to «retail corridor» of Kamenoostrovsky prospect, where many brand shops are situated. In nearby quarters there are all infrastructure facilities – kindergartens, schools, hign-schools, public and private medical clinics.

Location Riviere Noire

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Property with built-in premises, parking and fitness center. Construction start date is November Description 2018. At the vauation date the nearby area is building up by new modern housing complexes. Stage of Design Development strategy Build and sell development Areas Total buildings area, 53,098 Land plot area 1.683 hectares sqm NSA (excluding 32,299 parking), sqm Residential premises Available residential premises 30,220 22,430 area, sqm area, sqm Commercial premises Available commercial premises 2,079 2,079 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm

Parking lots/area 212 parking lots/2,809 sqm Available parking lots 212 parking lots Tenure Buildings - Land plot freehold (Extracts from the United State Register of Real Estate dated May 22, 2018) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: November 2018/December 2021; ● Sales start/completion dates: September 2018/ December 2022; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 2,195,732,000 RUB considerations ● Prices per sqm or parking unit: residential: 154,528 RUB; commercial: 155,750 RUB, parking: 1,000,000 RUB) ● Estimated income (in current prices): 4,361,787,000 RUB (including 359,902,494 RUB for deals before December 31, 2018) ● Discount Rate: 12.94% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 1,455,733,000

17. Bogemia

Name Bogemia Property type Business class residential Address 14, Smolenskaya St, St Petersburg Bogemia complex is located in Moskovsky District of St Petersburg, within 7 min walk to Frunzenskaya metro station. Bogemia is situated in close proximity to Moskovsky Ave - one of the main thoroughfares of the city, but at the same time it is in a quiet area of Smolenskaya St. In recent years Moskovsky district became a business district due to a lot of new constructed business centers. On the other side there are respectable residential blocks located along Moskovsky Ave. The infrastructure was mainly formed long time ago, so it is convenient to live there closely to shops, supermarkets, entertainment of all kinds, etc.

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The business class residential complex is completed. The building comprises from 7 to 14 floors, 228 apartments, a few of the apartments comprise the large terraces. The apartments has wide Description halls and corridors, large windows, high ceilings. In front of the house there is a nice courtyard. For vehicles of residents underground parking for 154 cars is available. On the ground floor there are commercial premises. Stage of Completed Development strategy Sell development Areas

Total buildings area, 34,352 Land plot area 0.6871 hectares sqm NSA (excluding 22,130 parking), sqm Residential premises Available residential premises 20,984 5,390 area, sqm area, sqm Commercial premises Available commercial premises 1,146 331 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 154 parking lots/2,040.5sqm Available parking lots 73 Tenure Buildings - Land plot freehold (ownership certificate 78-АЖ 978449 dated June 14, 2013) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: May 2016/September 2018; ● Sales start/completion dates: November 2015/June 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 84,731,000 RUB considerations ● Prices per sqm or parking unit: residential: 161,158 RUB; commercial: 156,784 RUB, parking: 1,621,918 RUB) ● Estimated income (in current prices): 1,166,111,000 RUB (including 127,095,225 RUB for bargains before December 31, 2018); ● Discount Rate: 15.71% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 949,371,000

18. Yuzhnaya Aquatoriya/Parusa

Name Yuzhnaya Aquatoriya/Parusa Property type Mass market residential Address Block 28, 28a, Doblesti St, St Petersburg The Property is located in the northwestern part of Krasnoselsky District of St Petersburg, in the block bordered with Marshala Kazakova St., Geroyev Av., Leninsky Av., Patriotov Ave and also in the planned block bordered with Marshala Kazakova St., Baltiysky Blvd, Leninsky Av., Patriotov Av. The neighborhood is not serviced by metro stations, the nearest metro stations – Leninsky Prospekt and Prospect Veteranov are located in 6 km from the Property.

Location

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Mass-market residential complex consists of 6 residential buildings of 7 - 25 floors with commercial premises, a multilevel above ground parking, and a guest parking zone. The complex Description comprises sport outside facilities, children playgrounds, promenades and green zones. At the valuation date the buildings on plots 1, 2, 6, 9, 13, 14 are completed and commissioned. The buildings on the plot No 24 are currently designed. Stage of Design /Completed Development strategy Build and sell development Areas Total buildings area, 538,320 Land plot area 23.9 hectares sqm

325,391 sqm (Plot 13: 39,307 sqm, Plot 14: 63,576 sqm, NSA (excluding Plot 24: 36,063 sqm, Plot 9: parking), sqm 56,878 sqm, Plot 1: 12,144 sqm, Plot 2: 85,699 sqm, Plot 6: 31,724 sqm) Residential premises Available residential premises 269,662 8,528 area, sqm area, sqm Commercial premises Available commercial premises 23,144 13,128 area, sqm area, sqm Other premises area, Available other premises area, 32,585 32,562 sqm sqm Parking lots/area 2,659/35,232 sqm Available parking lots 1,664 Tenure Buildings - leasehold (lease agreement 08-ЗДК-02441 dated December 2, 2013, 08-ЗДК-02442 dated December 2, 2013, 08-ЗДК-02443 dated December 2, 2013, 08-ЗДК-02444 dated December 2, 2013, 08-ЗДК-02445 dated December 2, 2013, 08-ЗДК-02446 dated December 2, 2013, 08-ЗДК- 02447 dated December 2, 2013, 08-ЗДК-02448 dated December 2, 2013, К 08-ЗДК-02449 dated December 2, 2013, К 08-ЗДК-02450 dated December 2, 2013, 08-ЗДК-02453 dated December 2, Land plot 2013, 08-ЗДК-02454 dated December 2, 2013, 08-ЗДК-02456 dated December 2, 2013, 08-ЗДК- 02451 dated December 2, 2013, 08-ЗДК-02452 dated December 2, 2013, 08-ЗДК-02455 dated December 2, 2013, 08-ЗДК-02457 dated December 2, 2013, 08-ЗДК-02458 dated December 2, 2013, 08-ЗДК-02459 dated December 2, 2013, 08-ЗДК-02460 dated December 2, 2013, 08-ЗДК- 02461 dated December 2, 2013, Addendum7 to the lease agreement 08/ЗКС-000069 dated June 8, 2007) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: November 2012/December 2021; ● Sales start/completion dates: November 2012/December 2021; ● Number of phases: 7; Valuation ● Estimated costs after the valuation date: 2,548,020,000 RUB considerations ● Prices per sqm or parking unit: residential (econom): 90,030-108,999 RUB; commercial: 92,697- 140,000 RUB; apartments: 85,007 RUB, parking: 276,168-530,415 RUB) ● Estimated income (in current prices): 5,697,306,000 RUB (including 152,208,215 RUB for bargains before December 31, 2018); ● Discount Rate: 13.25% Valuation date December 31, 2018 Inspection date December 19, 2018 Market value, rubles 2,611,165,000

19. Sophiya

Name Sophiya Property type Mass market residential Address Plots 3, 8, 12, 5, 7, 3*, 13, 8*, 1, Lit Ф, 49, 6, Yuzhnoe Hwy, St Petersburg The Property is located in Frunzensky District, in the south of St Petersburg, in the block formed by Sofiyskaya St., Dimitrova St., Bukharestskaya St. and Yuzhnoye Highway. Bukharestskaya St. provides direct access to the city centre via Ligovsky Ave, and Sofyskaya St. provides direct access to the St Petersburg's Ring Road (KAD) in circa 3.3 km from the Property. The nearest metro station, Mezhdunarodnaya, is located in a 5 minute distance by public transport. Another metro station, Prospect Slavy, located within a short walking distance from the Property, is planned for completion at 2019. There are vast green areas with large ponds along the northern and southern borders of the Property. The surrounding buildings to the west, north and south (beyond the green zones) are mostly mass market residential with accompanying amenities. A large industrial zone lies to the east of the Property. There are two modern retail subjects in the neighborhood – Yuzhny Polus shopping centre and Lenta hypermarket.

Location

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The residential complex comprising 22 residential buildings of 20 - 25 floors with integrated commercial space, multilevel above ground ventilated parking and a guest parking zone. The complex comprises commercial buildings, social infrastructure, sport outside facilities, children Description playgrounds, promenades and green zones as a fully fitted-out residential accommodation. The construction of the residential complex is divided into 5 phases. At the valuation date the construction is almost completed.

Stage of Construction Development strategy Build and sell development Areas Total buildings area, 419,273 Land plot area 21.90 hectares sqm NSA (excluding 313,698 parking), sqm Residential premises Available residential premises 308,386 229 area, sqm area, sqm Commercial premises Available commercial premises 5,313 868 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 1,304 parking lots/ 16,939 sqm Available parking lots 731 Tenure Buildings - freehold (ownership certificates: 78-АЖ 854249 dated February 14, 2013; 78-АЖ 897211 dated March 28, 2013; 78-АЖ 854623 dated February 15, 2013; 78-АЖ 897209 dated March 28, 2013; 78-АЖ 854235 dated February 14, 2013; 78-АЖ 897212 dated March 28, 2013; 78-АЖ 897210 dated March 28, 2013; 78-АЖ 854234 dated February 14, 2013; 78-АЖ 854250 dated February 15, 2013; 78-АЖ 854233 dated February 14, 2013; 78-АЖ 854237 dated February 14, 2013; 78-АЖ Land plot 854645 dated February 18, 2013; 78-АЖ 854244 dated February 14, 2013; 78-АЖ 854232 dated February 14, 2013; 78-АЖ 854642 dated February 18, 2013; 78-АЖ 854643 dated February 18, 2013; 78-АЖ 854242 dated February 14, 2013; 78-АЖ 854638 dated February 18, 2013; 78-АЖ 854240 dated February 14, 2013; 78-АЖ 854239 dated February 14, 2013; 78-АЖ 854241 dated February 14, 2013; 78-АЖ 897206 dated March 28, 2013; 78-АЖ 854243 dated February 14, 2013) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: March 2013/December 2018; ● Sales start/completion dates: June 2013/September 2020; ● Number of phases: 5; Valuation ● Estimated costs after the valuation date: 567,357,000 RUB considerations ● Prices per sqm or parking unit: residential: 122,233 RUB; commercial: 140,851 RUB, parking: 522,298 RUB) ● Estimated income (in current prices): 575,898,000 RUB (including 43,902,903 RUB for bargains before December 31, 2018); Discount Rate: 15.71% Valuation date December 31, 2018 Inspection date December 19, 2018 Market value, rubles 12,286,000

20. Kalina-Park (Kaleidoskop)

Name Kalina-Park (Kaleidoskop) Property type Mass market residential Address 12, Marshala Blukhera, St Petersburg The Property is situated in Kalininsky District of St Petersburg, in the block bordered by Marshala Blyukhera Ave, Laboratorniy Ave, Bestuzhevskaya St. and Kushelevskaya road. The neighborhood is represented by new developed residential area with associated social and commercial infrastructure. The Property has good accessibility. All types of public transport are good developed in the subject district. The metro stations Lesnaya and Ploshad Muzhestva are located in 3 and 5 km from the Property respectively.

Location

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The residential complex consisting of several buildings of 9 - 25 floors with integrated commercial premises and multilevel above ground parking. Fully fitted-out residential accommodation is to include children playgrounds, boulevard, green zones and sport outside facilities. The housing Description complex is divided into 4 phases (1-2 phases are named Kalina Park, the 3rd phase is named Kaleidoskop the 4th phase has the name of Cinema). At the valuation the residential buildings are completed, the construction of parkings is ongoimg. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 513,877 Land plot area 18.7 hectares sqm NSA (excluding 342,637 parking), sqm Residential premises Available residential premises 336,319 2,441 area, sqm area, sqm

Commercial premises Available commercial premises 6,318 124 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 1,416 parking lots/ 18,762 sqm Available parking lots 313 Tenure Buildings - freehold (ownership certificates: 78-АИ 235521 dated April 12, 2016; 78-АИ 235518 dated April 12, 2016; 78-АИ 235519 dated April 12, 2016; 78-АИ 235520 dated April 12, 2016; 78-АИ 234315 dated April 12, 2016; 78-АИ 235516 dated April 12, 2016; 78-АИ 221691 dated March 01, 2016; 78-АЖ 835679 dated February 21, 2013; 78-78/037-78/037/100/2015-1768/1 dated September 04, 2015; 78-78/037-78/037/100/2015-1767/1 dated September 04, 2015; 78-78/037- 78/037/100/2015-1771/1 dated September 04, 2015; 78-78/037-78/037/100/2015-1769/1 dated Land plot September 04, 2015; 78-78/037-78/037/100/2015-1770/1 dated September 04, 2015; 78-АИ 077573 dated June 22, 2015; 78-АЗ 111932 dated October 15, 2013; 78-АЖ 976434 dated March 15, 2013; 78-АЗ 166099 dated November 20, 2013; 78-АЗ 338382 dated April 24, 2014; 78-АЗ 111930 dated October 15, 2013; 78-АЖ 932559 dated April 23, 2013; 78-АЗ 111928 dated October 15, 2013; 78-АЗ 111929 dated October 15, 2013; 78-АЗ 111927 dated October 15, 2013; 78-АЗ 111926 dated October 15, 2013; 78-АЗ 111925 dated October 15, 2013) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: December 2012/January 2019; ● Sales start/completion dates: February 2013/December 2020; ● Number of phases: 4; Valuation ● Estimated costs after the valuation date: 244,533,000 RUB considerations ● Prices per sqm or parking unit: residential: 105,272 RUB; commercial: 156,217 RUB, parking: 413,578 RUB) ● Estimated income (in current prices): 790,660,000 RUB (including 384,927,143 RUB for bargains before December 31, 2018); Discount Rate: 15.71% Valuation date December 31, 2018 Inspection date December 19, 2018 Market value, rubles 512,413,000

21. Novaya Okhta

Name Novaya Okhta Property type Mass market residential Address Murinskaya road, St Petersburg The Property is located along Murinskaya Road, near St Petersburg Ring Road (KAD), in Krasnogvardeysky District of St- Petersburg. The proximity to KAD provides access to diferrent parts of the city. The nearest metro stations are Devyatkino and Grazhdansky Prospect (5 min drive from the Property). The Property is surrounded by former agricultural land, parkland and Okhta River and Tsvetnoy Gorod development projects.

Location

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The Property is a residential complex under construction, a part of the project of complex development. The construction of residential complex is devided into 3 phases (each of them consists of several stages). The future residential complex will consist of more than 30 residential Description buildings of different number of floors (up to 25) with built-in commercial premises and multilevel above ground parking. Also the subjects of social infrastructure are being constructed within the development process: 3 schools, 5 kindergartens and 2 clinics. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 915,323 Land plot area 88.28 hectares sqm NSA (excluding 764,815 parking), sqm Residential premises Available residential premises 743,303 113,231 area, sqm area, sqm

Commercial premises Available commercial premises 21,512 3,845 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 1,344 lots/ 17,820 sqm Available parking lots 843 Tenure Buildings - freehold (ownership certificates: 78-АЖ №905260 dated April 5, 2013; 78-АЖ №905261 dated April 5, 2013; 78-АЖ №905262 dated April 5, 2013; 78-АЖ №905263 dated April 5, 2013; 78-АЖ №905264 dated April 5, 2013; 78-АЖ №905265 dated April 5, 2013; 78-АЖ №905266 dated April 5, 2013; 78-АЖ №905267 dated April 5, 2013; 78-АЖ №905259 dated April 5, 2013; 78-АЗ №455367 dated August 14, 2014; 78-АЗ №455363 dated August 14, 2014; 78-АЗ №602321 dated October 31, 2014; 78-АЗ №602321 dated December 10, 2014; 78-АЗ №673999 dated February 12, 2015; 78-АЗ №674000 dated February 12, 2015; 78-АЗ №698157 dated February 12, 2015; 78-АЗ №698198 dated February 12, 2015; 78-АЗ №698180 dated February 12, 2015; 78-АЗ №698179 dated February 12, 2015; 78-АЗ №698178 dated February 12, 2015; 78-АЗ №698177 dated Land plot February 12, 2015; 78-АЗ №698176 dated February 12, 2015; 78-АЗ №698160 dated February 12, 2015; 78-АЗ №698159 dated February 12, 2015; 78-АЗ №698158 dated February 12, 2015; 78-АЗ №698170 dated February 12, 2015; 78-АЗ №698169 dated February 12, 2015; 78-АЗ №698168 dated February 12, 2015; 78-АЗ №698164 dated February 12, 2015; 78-АЗ №698161 dated February 12, 2015; 78-АЗ №698162 dated February 12, 2015; 78-АЗ №698163 dated February 12, 2015; 78-АЗ №698165 dated February 12, 2015; 78-АЗ №698166 dated February 12, 2015; 78-АЗ №698175 dated February 12, 2015; 78-АЗ №698174 dated February 12, 2015; 78-АЗ №698172 dated February 12, 2015; 78-АЗ №698171 dated February 12, 2015; 78-АЗ №698167 dated February 12, 2015; 78-АЗ №673997 dated February 12, 2015; 78-АЗ №673998 dated February 12, 2015) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: September 2012/ September 2023; ● Sales start/completion dates: May 2013/December 2023; ● Number of phases: 4; Valuation ● Estimated costs after the valuation date: 4,217,945,000 RUB considerations ● Prices per sqm or parking unit: residential: 75,534 RUB; commercial: 112,119; parking: 272,705 RUB) ● Estimated income (in current prices): 10,829,483,000 RUB (including 572,326,994 RUB for bargains before December 31, 2018); ● Discount Rate: 17.96% Valuation date December 31, 2018 Inspection date December 21, 2018 Market value, rubles 4,428,376,000

22. Tsvetnoy Gorod Vostok

Name Tsvetnoy Gorod Vostok Property type Mass market residential Address 145, Piskarevsky Av., St Petersburg The Property located at the North-East of St Petersburg, along the border with Leningradskaya Oblast’. The surrounding area consists of former agricultural land plots, private cottages and territories of new residential development. The infrastructure of this area is not developed, but all the projects of complex development imply the construction of infrastructure objects. The immediate proximity of St Petersburg Ring road and Piskarevsky Ave provides easy access to the Property from other districts of the city. Public transport accessibility at the valuation date is unsatisfactory but due to current residential development of this district the situation with public transport will be improved in process of completing projects.

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At the valuation date the project is under construction. One of the buildings is on the ground storey stage of construction; others are on the stage of foundation. The future housing complex will consist of residential buildings of different number of floors with integrated commercial Description premises, multilevel aboveground ventilated parking, and social facilities: 8 schools, 16 kindergartens, 4 clinics and 1 hospital. The construction stage of the 1st phase has started in 2016. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 1,294,091 Land plot area 163.92 hectares sqm

NSA (excluding 1,036,874 parking), sqm Residential premises Available residential premises 957,688 798,019 area, sqm area, sqm Commercial premises Available commercial premises 23,186 23,057 area, sqm area, sqm Other premises area, Available other premises area, 56,000 56,000 sqm sqm Parking lots/area 5,273 lots/69,868 sqm Available parking lots 5,273 Tenure Buildings - Land plot freehold Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: May 2016/December 2024; ● Sales start/completion dates: June 2016/December 2025; ● Number of phases: 4; Valuation ● Estimated costs after the valuation date: 46,834,127,000 RUB considerations ● Prices per sqm or parking unit: (residential: 70,906 RUB; commercial premises: 101,027 RUB; self- storage – 65 000 RUB; parking: 200,000 RUB) ● Estimated income (in current prices): 65,877,599,000 RUB (including 2,269,149,919 RUB for bargains before December 31, 2018) ● Discount Rate: 12.79% Valuation date December 31, 2018 Inspection date December 21, 2018 Market value, rubles 9,113,773,000

23. Ruchyi

Name Ruchyi Property type Mass market residential Address 145, Piskarevsky Av., St Petersburg The Property located at the North-East of St Petersburg, along the border with Leningradskaya Oblast’. The surrounding area consists of former agricultural land plots, private cottages and territories of new residential development. The infrastructure of this area is not developed, but all the projects of complex development imply the construction of infrastructure objects. The immediate proximity of St Petersburg Ring road and Piskarevsky Ave provides easy access to the Property from other districts of the city. Public transport accessibility at the valuation date is unsatisfactory but due to current residential development of this district the situation with public transport will be improved in process of completing projects.

Location

Ruchyi

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The construction is started in 2018. At the valuation date the projecting stage is on. The residential complex will consist of several residential blocks of variable storeys with built-in commercial Description premises, multilevel parking and detached objects of social infrastructure: a school and 2 kindergartens. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 253,825 Land plot area 19.94 hectares sqm NSA (excluding 177,005 parking), sqm Residential premises Available residential premises 171,352 166,166 area, sqm area, sqm

Commercial premises Available commercial premises 5,654 5,654 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 986 lots/13,065 sqm Available parking lots 986 Tenure Buildings - freehold (ownership certificates: 78-АЖ 868775 dated February 20, 2013; 78-АЖ 904413 dated Land plot March 25, 2013; 78-АЖ 868584 dated February 19, 2013; 78-АЖ 868583 dated February 19, 2013; 78-АЖ 868585 dated February 19, 2013) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: October 2018/June 2023; ● Sales start/completion dates: October 2018/June 2023; ● Number of phases: 2 (Valuer’s forecast); Valuation ● Estimated costs after the valuation date: 9,844,276,000 RUB considerations ● Prices per sqm or parking unit: residential: 76,962 RUB; commercial: 110,000; parking: 210,345 RUB) ● Estimated income (in current prices): 13,919,941,000 RUB (including 302,072,300 RUB from bargains before December 31, 2018); ● Discount Rate: 12.99% Valuation date December 31, 2018 Inspection date December 21, 2018 Market value, rubles 1,729,011,000

24. Tsvetnoy Gorod Zapad

Name Tsvetnoy Gorod Zapad Property type Mass market residential Address 145, Piskarevsky Av., St Petersburg The Property located at the North-East of St Petersburg, along the border with Leningradskaya Oblast’. The surrounding area consists of former agricultural land plots, private cottages and territories of new residential development. The infrastructure of this area is not developed, but all the projects of complex development imply the construction of infrastructure objects. The immediate proximity of St Petersburg Ring road and Piskarevsky Ave provides easy access to the Property from other districts of the city. Public transport accessibility at the valuation date is unsatisfactory but due to current residential development of this district the situation with public transport will be improved in process of completing projects.

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At the valuation date the project is in concept development. The construction stage of the 1st Description phase is going to start in May 2023. Stage of Concept development Development strategy Build and sell development Areas Total buildings area, 2,012,612 Land plot area 199.27 hectares sqm NSA (excluding 1,354,674 parking), sqm Residential premises Available residential premises 1,328,625 1,328,625 area, sqm area, sqm

Commercial premises Available commercial premises 26,049 26,049 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 7657 lots/ 101,456 sqm Available parking lots 7,657 Tenure Buildings - Land plot freehold Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: May 2023/December 2033; ● Sales start/completion dates: May 2023/December 2033; ● Number of phases: 5; Valuation ● Estimated costs after the valuation date: 74,019,131,000 RUB considerations ● Prices per sqm or parking unit: (residential: 75,000 RUB; commercial premises: 100,000 RUB; parking: 200,000 RUB); ● Estimated income (in current prices): 103,783,218,000 RUB ● Discount Rate: 13.14% Valuation date December 31, 2018 Inspection date December 21, 2018 Market value, rubles 5,317,190,000

25. Shuvalovsky

Name Shuvalovsky Property type Mass market residential Address plot 208, Prigorodny (Kamenka), St Petersburg The Property is situated in Primorsky District of St Petersburg. The Property is located within 10 min drive from Pionerskaya and Komendantskiy Prospekt metro stations. The Property is located close to the main thoroughfares of the district. The neighborhood benefits from the number of nearby leisure, retail and social amenities. There is Novoorlovsky forest and a nature reserve, Yuntolovskaya Dacha, in close proximity to the Property which features an artificial lake, playgrounds and walking paths.

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The housing complex is under construction, works are currently in progress. It is being developed as a mass-market residential complex. The complex will comprise 23 residential buildings of 16-25 Description floors with supportive commercial premises on ground floors, and multi-level aboveground parking. The construction of the residential is divided into 5 phases. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 639,598 Land plot area 30.90 hectares sqm NSA (excluding 422,034 parking), sqm Residential premises Available residential premises 415,483 99,573 area, sqm area, sqm Commercial premises Available commercial premises 5,750 3,667 area, sqm area, sqm

Other premises area, Available other premises area, 801 424 sqm sqm Parking lots/area 2,490 /32,922.5 sqm Available parking lots 1,501 Tenure Buildings - freehold (ownership certificates: 78-АЗ 429741 dated July 03, 2014; 78-АЗ 419547 dated June 16, 2014; 78-АЗ 419548 dated June 16, 2014; 78-АЗ 419545 dated June 16, 2014; 78-АЗ 418929 dated June 10, 2014; 78-АЗ 419392 dated June 10, 2014; 78-АЗ 419398 dated June 10, 2014; 78- Land plot АЗ 481971 dated August 28, 2014; 78-АЗ 481973 dated August 28, 2014; 78-АЗ 419395 dated June 10, 2014; 78-АЗ 419396 dated June 10, 2014; 78-АЗ 419397 dated June 10, 2014; 78-АЗ 419391 dated June 10, 2014; 78-АЗ 418931 dated June 10, 2014; 78-АЗ 419394 dated June 10, 2014) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: July 2014/December 2023; ● Sales start/completion dates: July 2014/June 2023; ● Number of phases: 5; Valuation ● Estimated costs after the valuation date: 6,393,655,000 RUB considerations ● Prices per sqm or parking unit: residential: 93,061 RUB; commercial: 127,938 RUB; self-storage: 52,857 RUB; parking: 341,662 RUB) ● Estimated income (in current prices): 10,829,483,000 RUB according to the initial data, including the investor's share (including 572,326,994 RUB for bargains before December 31, 2018); ● Discount Rate: 18.68% Valuation date December 31, 2018 Inspection date December 21, 2017 Market value, rubles 3,023,723,000

26. Tsivilizatsiya (Rudas, Barrikada)

Tsivilizatsiya (Rudas, Name Property type Mass market residential Barrikada) Address 42, Oktyabrskaya Emb., St Petersburg The Property is located in Nevsky District of St Petersburg within a 20-40 min walk of Ulitsa Dybenko metro station. The Property is conveniently accessible from Oktyabrskaya Embankment, which allows to easily access all city districts and KAD. The following subjects are situated in the neighborhood and surroundings: Park Stroiteley, sporting and cultural centers - Ledovy Dvoretz sports center, stadium of watersports Nevskaya Volna, retail and entertainment center London Mall, variety of supermarkets - Karusel, Lenta, Castorama, Leroy Merlin, and also fitness center Olympic and Gazprom sports club.

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The project implies the construction of residential complex. The project development scheme Description consists of 8 phases. The buildings will be made of monolith-and-brick or prefabricated concrete panels, and will provide fitted-out or Shell&Core residential accommodation. Stage of Construction Development strategy Build and sell development Areas 1,284,729 sqm (Rudas – 58.97 hectares (Rudas – 30.46 Total buildings area, 692,951 sqm, Barrikada – Land plot area hectares, Barrikada – 28.51 sqm 591,778 sqm) hectares) NSA (excluding 835,948 parking), sqm

Residential premises Available residential premises 744,019 475,460 area, sqm area, sqm Commercial premises Available commercial premises 32,042 24,655 area, sqm area, sqm Other premises area, Available other premises area, 59,887 59,860 sqm sqm Parking lots/area 4521 lots/59,903 sqm Available parking lots 4,381 Tenure Buildings - freehold (ownership certificates: 78-АЗ 659645 dated December 27, 2014; 78-АЗ 256015 dated February 14, 2014; 78-АЗ 256016 dated February 14, 2014; 78-АЗ 252233 dated December 05, Land plot 2013; 78-АИ 248968 dated April 18, 2016; 78-АИ 032071 dated May 05, 2015; 78-АИ 032070 dated May 05, 2015; 78-АЗ 745103 dated April 01, 2015;) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: Rudas – February 2016/August 2022; Barrikada – September 2018/June 2024; ● Sales start/completion dates: Rudas – March 2016/August 2023; Barrikada – October 2018/December 2024; ● Number of phases: 8; Valuation ● Estimated costs after the valuation date: 43,884,884,000 RUB (Rudas: 18,800,173,000 RUB, considerations Barrikada: 25,084,711,000 RUB); ● Prices per sqm or parking unit: residential: 93,270-104,977 RUB; commercial: 120,000-129,067 RUB; apartments: 91,258 RUB; parking: 350,000-521,291 RUB) ● Estimated income (in current prices): 59,635,872,000 RUB (including 3,491,412,156 RUB for bargains before December 31, 2018); ● Discount Rate: Rudas: 13.02%, Barrikada: 12.59% Valuation date December 31, 2018 Inspection date December 19, 2018 Market value, rubles 9,282,907,000

27. Zapovednaya

Name Zapovednaya Property type Mass market residential Address Plots 14,17, Orlovo-Denisovskiy Av., St.Petersburg The object is located in Primorsky district of St Petersburg, between Suzdalsky Ave and Zapovednaya St., 7 km from the metro station Prospect Prosvescheniya, 3.5 km from Vyborgskoe Hw, 3 km from the Parachutnaya St, 7 km from the Ring Road (KAD). 2 new metro stations Kamenka and Shuvalovskiy Prospect are scheduled for opening in 2025. Novoorlovsky forest park is located at a distance of 1-2 km from the Property. Objects of social and commercial infrastructure are available in nearby neighborhood, at a distance 2 km from the property. At a distance of 4-5 km from the facilities there are hypermarkets Lenta and Okay.

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At the valuation date the land plot is vacant. The project implies the construction of residential complex. It is planned to build circa 150 thousand sqm of real estate, of which 86,814 sqm will be Description residential and the rest refers to where commercial premises and parking for 750 cars will take place. Stage of Design Development strategy Build and sell development Areas Total buildings area, 134,874 Land plot area 5.92 hectares sqm NSA (excluding 93,018 parking), sqm

Residential premises Available residential premises 90,038 89,876 area, sqm area, sqm Commercial premises Available commercial premises 2,981 2,981 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 744 lots/9,858 sqm Available parking lots 744 Tenure Buildings - freehold (ownership certificates : 78-АЗ 732571 dated April 3, 2015, 78-АЗ 731751 dated April 3, Land plot 2015) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: June 2020/December 2023; ● Sales start/completion dates: June 2020/December 2023; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 4,789,826,000 RUB considerations ● Prices per sqm or parking unit: residential: 85,006 RUB; commercial: 110,000; parking: 250,000 RUB) ● Estimated income (in current prices): 8,167,440,000 RUB (including 13,546,142 RUB for bargains before December 31, 2018); ● Discount Rate: 12.84% Valuation date December 31, 2018 Inspection date December 21, 2018 Market value, rubles 1,746,436,000

28. Zvezdny Duet (Kosmonavtov/Dunayskiy)

Zvezdny Duet Name Property type Mass market residential (Kosmonavtov/Dunayskiy) Address Plots 1,2, Kosmonavtov Pr. (south-east of Svirskaya St crossing), St.Petersburg The Property is located in Moskovskiy district of St Petersburg. The Property is located to the South-East of crossroads of Kosmonavtov Ave. and Svirskaya St. However, the location is rather close to metro station Zvezdnaya (9 min walk) and Kupchino (4 min drive by car). Also Moskovskoye Highway is at the distance of less than 1 km that provides the Property easy access to different districts of the city. Pulkovskoye highway is also in convenient distance from the Property that provides access to the airport of St Petersburg (it takes about 15 min driving). The infrastructure in the neighbourhood is not formed completely yet, but within the process of complex development of the territory the situation will be improved. Also there are several malls with all kinds of shops, supermarkets, sports facilities etc. in this part of Moskovsky district. They are basically located near Kupchino and Zvezdnaya metro stations.

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Description The project implies the construction of residential complex. At the valuation date Stage of Construction Development strategy Build and sell development Areas Total buildings area, 74,943 Land plot area 2.43 hectares sqm NSA (excluding 47,378 parking), sqm Residential premises Available residential premises 47,078 19,938 area, sqm area, sqm Commercial premises Available commercial premises 300 300 area, sqm area, sqm

Other premises area, Available other premises area, - - sqm sqm Parking lots/area 257 parking lots/3,405.25 sqm Available parking lots 257 parking lots Tenure Buildings - leasehold (Lease agreement 12/ЗКС-10017 dated November 16, 2015; and 12/ЗКС-10018 dated Land plot November 16, 2015) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: September 2018/September 2020; ● Sales start/completion dates: December 2017/December 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 3,029,323,000 RUB considerations ● Prices per sqm or parking unit: residential: 125,434 RUB; commercial: 154,357 RUB; parking: 600,000 RUB) ● Estimated income (in current prices): 3,385,476,000 RUB (including 684,067,289 RUB for bargains before December 31, 2018); ● Discount Rate: 16.21% Valuation date December 31, 2018 Inspection date December 19, 2017 Market value, rubles 157,986,000

29. Aeroport Rzhevka

Name Aeroport Rzhevka Property type Mass market residential Address Airport Rzhevka, Kovalevo Settlement, Vsevolozhsky District, Leningradskaya Oblast' The Property is located in Vsevolozhsky district of Leningradskaya Oblast’, 8 km from St Petersburg's border. It is 4 km distance from Ryabovskoye Hw, 4 km from the Ring Road (KAD). The closest metro station Ladozhskaya is at 12 km distance. The object is bordered on the North- East by the Kovalevo village. Kovalevo with the rest side of the object is surrounded by forest. The infrastructure in the neighborhood is poorly developed; the nearest social and commercial facilities are located at a distance of 7-8 km from the Property.

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The land plot is vacant at the valuation date. The Project is at the designing and projecting stage. Description The future residential complex is to comprise buildings of different height, multi-storey car parkings and appropriate commercial and social infrastructure. Stage of Concept development Development strategy Build and sell development Areas Total buildings area, 1,617,639 Land plot area 175.34 hectares sqm NSA (excluding 1,007,956 parking), sqm Residential premises Available residential premises 991,407 991,407 area, sqm area, sqm Commercial premises Available commercial premises 16,549 16,549 area, sqm area, sqm

Other premises area, Available other premises area, - - sqm sqm Parking lots/area - Available parking lots - Tenure Buildings - freehold (ownership certificates: 47-АВ 380711 dated April 21, 2014, 47-АВ 380712 dated April 21, Land plot 2014) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: January 2021/September 2030; ● Sales start/completion dates: March 2021/December 2030; Valuation ● Number of phases: 8; considerations ● Estimated costs after the valuation date: 53,879,219,000 RUB ● Prices per sqm or parking unit: residential: 70,000 RUB; commercial: 90,000); ● Estimated income (in current prices): 70,887,895,000 RUB; ● Discount Rate: 13.11% Valuation date December 31, 2018 Inspection date December 21, 2018 Market value, rubles 5,530,442,000

30. Georgievsky

Name Georgievsky Property type Commercial Address 14, Vilenskiy Lane, St Petersburg The office center is located in Central District of St Petersburg, it takes 15 minutes to walk from Chernyshevskaya metro station. The access to the Property is provided from Vilensky Lane. The proximity of main thoroughfares such as Suvorovskiy Ave, Nevsky Ave, Ligovsky Ave, Voskresenskaya and Smolnaya Embankments provides easy access the Property from various parts of the city. The following landmarks are situated in the neighborhood: Tavrichesky Garden and Palace, Smolny Cathedral, Suvorov Museum. Paradny Kvatal is a mixed-use complex. It is implied the residents will access the diverse infrastructure of this residential complex consisting of stores, supermarkets, educational facilities and a fitness center nearby.

Location

Georgievsky

Photo

The Property is the office building, completed in May 2014. The office building comprises 4 floors Description and an underground parking for 60 cars. The office premises in the building can be classified as A- class offices. The Property has been occupied by a single tennant in 2018. Stage of Completed Development strategy Sell (rent) development Areas Total buildings area, 12,607 Land plot area 9.57 hectares sqm NSA (excluding 12,074 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises 12,074 12,074 area, sqm area, sqm

Other premises area, Available other premises area, - - sqm sqm Parking lots/area - Available parking lots - Tenure Buildings freehold (ownership certificate 78-АЗ 558886 dated October 7, 2014) Land plot 0 Tenancies - ● Applied method(-s) of valuation: Residual and Comparative Method; ● Construction start/completion dates: October 2012/May 2014; Residual method considerations ● Rental rate RUB per sqm p.a.: 18,572.6; Valuation ● OpEx, rubles per sqm p.a.: 5,836.4; considerations ● Capitalization rate: 10.5%; ● Discount rate: 18.18%; Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 1,468,144,000

31. Nevsky 1

Name Nevsky 1 Property type Commercial Address 1, Nevsky Av, St Petersburg The Property is located in Central District of St Petersburg within a 10-minute walk of Nevsky Prospekt and Gostinyi Dvor metro stations, a 5-minute walk of Admiralteiskaya metro station. The following landmarks are situated in close proximity to the Property: Hermitage Museum, Palace Square, The Admiralty, Senatskaya Square, St. Isaac's Cathedral. A great amount of restaurants, bars, boutQ1ues and stores are located on Nevsky Ave. Bolshoy Gostiny Dvor Shopping Center is located within a 15-minute walk of the Property.

Location

Nevsky 1

Photo

The Property comprises a building being a monument of a historical interest. According to the project development scheme it is planned to internally refurbish the premises only and renovate Description the facade. It is forbidden to demolish the building due to its' historical interest. The redeveloped brick / monolith-concrete building will comprise commercial premises and parking for 20 cars. Stage of Reconstruction Development strategy Reconstruction and sell development Areas Total buildings area, 9,357 Land plot area 0.25 hectares sqm NSA (excluding 8,509 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm

Commercial premises Available commercial premises 8,509 8,509 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 20 parking lots Available parking lots 20 parking lots Tenure freehold (ownership certificates 78-АЖ 807894 dated January 12, 2013; 78-ВЛ 955118 dated January 30, 2004; 78-ВЛ 955124 dated January 30, 2004; 78-ВЛ 955103 dated January 30, 2004; 78-ВЛ 955109 dated January 30, 2004; 78-ВЛ 955104 dated January 30, 2004; 78-ВЛ 955108 dated January 30, 2004; 78-ВЛ 955105 dated January 30, 2004; 78-ВЛ 955101 dated January 30, 2004; 78-ВЛ 955110 dated January 30, 2004; 78-АГ 517007 dated July 22, 2008; 78-АГ 308928 dated March 11, 2008; 78-ВЛ 953038 dated January 30, 2004; 78-ВЛ 955123 dated January 30, 2004; 78- АА 720253 dated February 17, 2006; 78-ВЛ 953034 dated January 30, 2004; 78-ВЛ 955107 dated Buildings January 30, 2004; 78-ВЛ 953035 dated January 30, 2004; 78-АВ 551995 dated June 6, 2006; 78-ВЛ 953037 dated January 30, 2004; 78-АВ 551996 dated June 6, 2006; 78-АВ 551997 dated June 6, 2006; 78-АВ 859514 dated September 27, 2007; 78-АВ 551998 dated June 6, 2006; 78-ВЛ 955114 dated January 30, 2004; 78-ВЛ 955106 dated January 30, 2004; 78-АГ 308926 dated March 11, 2008; 78-ВЛ 955130 dated January 30, 2004; 78-ВЛ 955128 dated January 30, 2004; 78-АВ 552001 dated June 6, 2006; 78-АВ 552002 dated June 6, 2006; 78-АВ 552003 dated June 6, 2006; 78-ВЛ 955127 dated January 30, 2004; 78-АВ 572822 dated March 13, 2007). Land plot 0 Tenancies - ● Applied method(-s) of valuation: Residual (DCF) and Comparison; ● Construction start/completion dates: September 2016/November 2019; Valuation ● Sales start/completion dates: June 2017/ November 2019; considerations ● Number of phases: 1; ● Estimated costs after the valuation date: 496,133,000 RUB ● Discount Rate: 18.71% Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 3,153,442,000

32. Nevsky 68

Name Nevsky 68 Property type Commercial Address liter B, building 40/68, riv. Fontanka Emb., St Petersburg The Property is located in Central District of St Petersburg within a 5-minute walk of Mayakovskaya and Gostiny Dvor metro stations. The Property is located at the main throughfare of St Petersburg – Nevsky Av. The following landmarks are situated in the neighborhood: Kazan Cathedral, Hermitage Museum, Russian Museum, Summer Garden (Letniy Sad), The temple of Savior-on-Blood (Khram Spasa-na-Krovi), Palace Square, St. Isaac's Cathedral, Mikhailovsky theatre, Aleksandrinsky theatre, Anichkov bridge. A huge amount of restaurants, bars, boutQ1ues and stores are located on Nevsky Av. The following retail centres are located in close proximity to the Property: Nevsky Centre, Galereya, Nevsky Atrium, Gostiny Dvor and Passage.

Location

Nevsky 68

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According to the project development scheme, the building comprises offices, retail premises on the ground and first floors and underground parking for 26 cars. The project was completely Description finished in 2013. At the valuation date retail premises are occupied by bank offices and a sales office of LSR Group. 650 sqm of office premises are occupied by the tennatn of Gazprom- Germany Stage of Completed Development strategy Sell (rent) development Areas Total buildings area, 8,400 Land plot area 0.15 hectares sqm NSA (excluding 8,400 parking), sqm

Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises 8,400 - area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area - Available parking lots - Tenure freehold (ownership certificates 78-АИ 204192 dated February 10, 2016; 78-АИ 204196 dated February 10, 2016; 78-АИ 204194 dated February 10, 2016; 78-АИ 204193 dated February 10, Buildings 2016; 78-АИ 204197 dated February 10, 2016; dated August 24, 2015; dated September 16, 2015; dated September 24, 2015) Land plot freehold (ownership certificate 78-АЗ 688900 dated March 3, 2015) Tenancies - ● Applied method(-s) of valuation: Residual (DCF) and Comparative Method; Residual method considerations ● Rental rate for vacant offices, RUB per sqm p.a.: 30,507; ● Rental rate for occupied retail premises (average weighted), RUB per sqm p.a.: 102,943; Valuation ● OpEx, rubles per sqm p.a.: 5,836.4; considerations ● Capitalization rate: 9%; ● Discount rate: 18.18%; Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 3,039,867,000

33. Smolny Park (office buildings)

Name Smolny Park (commercial) Property type Commercial Address 8,10, Smolnaya Embankment, St Petersburg The Property is located in the Central Administrative District of St Petersburg, on Smolnogo St., within a 25-minute walk from Chernyshevskaya metro station. The Property is situated in the historical centre of the city, a short distance from Shpalernaya St. and Suvorovsky Ave that provide direct access to Vosstaniya Square and Nevsky Prospect (approx., 3.3 km from the Property), and borders Smolnaya Embankment. The Smolny Cathedral, Alexander Institute for Noble Maidens, the Parter Garden with fountains comprises the immediate surroundings of the Property. The existing amenities will be further improved by retail premises on the ground floors of the Smolny Park residential buildings and other new buildings in surrounding area (e.g. in 2016 the supermarket of Lenta has been opened in Basel BC). The scheme will provide residential accommodation in a quiet park zone in the very centre of the city with educational institutions nearby.

Location Smolny Park

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The Property comprises two historical buildings reconstructed for office use. The building Б11 can Description be used as a single company office. The building Б12 can be used both as an office for a single company and as a multitennanted busines center. Stage of Completed Development strategy Sell (rent) development Areas Total buildings area, 7,567 (B11 476 sqm; B12 7,091 Land plot area - sqm sqm)

NSA (excluding 7,567 (B11 476 sqm; B12 parking), sqm 7,091 sqm) Residential premises Available residential premises - - area, sqm area, sqm Commercial premises 7,567 (B11 476 sqm; B12 7,091 Available commercial premises - area, sqm sqm) area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area - Available parking lots - Tenure Buildings Freehold Land plot leasehold Tenancies - ● Applied method(-s) of valuation: Residual and Comparative Method; Residual method considerations ● Rental rate RUB per sqm p.a.: B11 - 26,285.4; B12 -21,037; ● OpEx, rubles per sqm p.a.: B11 - 1,941.8; B12 – 1,850.6; Valuation ● Capitalization rate: B11 - 9%; B12 - 10%; considerations ● Discount rate: B11 - 16.12%; B12 - 17.36%; Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The regression model was used to determine the Value. Valuation date December 31, 2018 Inspection date December 20, 2018 Market value, rubles 1,323,871,000

34. Donskoy Olimp

Name Donskoy Olimp Property type Business class residential Address Bldg 19, 21, Serpukhovsky Val St, Moscow The residential complex development scheme will be developed on the land plot located at 22, Serpukhovskoy Val St., Danilovsky sub-district, South Administrative District. The sub-district has a well-developed social, transport and engineering infrastructure. It benefits from good transport accessibility through Leninsky Ave. and Varshavskoe Highway which lead to the Third Transport Road and Moscow Ring Road (MKAD). The residential complex is located in а 5-minute walk from Shabolovskaya metro station. In the nearest surroundings there are residential buildings, offices, government agencies and industrial enterprises.

Location

Photo

A business class residential complex Donskoy Olimp is being constructed in the South- of Moscow. The design and construction of the complex involves several stages. According to the Description architectural concept of the project in addition to residential buildings, the complex includes commercial areas and an underground parking lot. Stage of Completed Development strategy Sell development Areas Total buildings area, 239,050 Land plot area 4.72 hectares sqm NSA (excluding 89,083 parking), sqm Residential premises Available residential premises 76,148 250 area, sqm area, sqm Commercial premises Available commercial premises 6,510 3,960 area, sqm area, sqm Other premises area, Available other premises area, 4,721 2,657 sqm sqm Parking lots/area 1,300 parking lots/8,723 sqm Available parking lots 493 parking lots Tenure

Buildings - Land plot with total area of 47,200 sqm – freehold (ownership certificate AC № 699384dated Land plot February 24, 2016) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: May 2013/August 2017; ● Sales start/completion dates: November 2013/ December 2020; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 153,008,000 RUB considerations ● Prices per sqm or parking unit: residential: 236,038 RUB; commercial: 274,056 RUB; other: 105,140 RUB; parking: 1,754,046 RUB) ● Estimated income: 2,546,551,000 RUB (including 258,309,175 RUB for bargains before December 31, 2018); ● Discount Rate: 17.46% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 2,285,284,000

35. Grunvald

Name Grunvald Property type Business class residential Address Zarechye Settlement, Odintsovo District, Moscovskaya Oblast' western boundaries of Moscow. The complex has a good link with Moscow’s centre via Skolkovskoye Shosse. The neighbourhood has a well-developed infrastructure – elite gymnasiums, schools and kindergartens together with tennis courts and golf courses are located just a short distance away. A close vicinity of the future Silicon Valley in Skolkovo will add to the project’s attractiveness.

Location

Grunvald

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New residential complex consists of 13 detached six-storey buildings with up to 20 residential premises in each one, providing a limited number of neighbors for comfort living conditions. The Description complex will include commercial properties and an underground parking as well as a large fitness center with a sports pool. Each house of the Grunwald residential complex has its own distinguishing features but together they form a unQ1ue architectural solution. Stage of Completed Development strategy Sell development Areas Total buildings area, 58,331 Land plot area 4.1 hectares sqm NSA (excluding 27,260 parking), sqm Residential premises Available residential premises 25,011 0 area, sqm area, sqm Commercial premises Available commercial premises 744 593 area, sqm area, sqm Other premises area, Available other premises area, 1,505 891 sqm sqm Parking lots/area 270 parking lots/4,050 sqm Available parking lots 87 parking lots Tenure

Buildings Freehold Land plot 0 Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: March 2005/January 2011; ● Sales start/completion dates: September 2005/ August 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 0 RUB considerations ● Prices per sqm or parking unit: commercial: 131,194 RUB; other: 66,239 RUB; parking: 1,619,397 RUB; ● Estimated income: 278,358,000 RUB (including 620,710 RUB for bargains before December 31, 2018); ● Discount Rate: 14.98% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 244,034,000

36. LENINGRADKA 58

Name LENINGRADKA 58 Property type Business class residential Address 58, Leningradskoye Hw, Moscow Residential complex is located in North district of Moscow on the second line close to Leningradsky Ave. The development project is located at the Research Institute of Mechanical Engineering (OAO NIMI). The subject property has beneficial location in terms of convenient pedestrian and transport access. Vodniy stadion metro station is located at the distance of 400 m from the Property, an access to the Property is provided by Leningradsky Ave. It is necessary to note a proximity to Sheremet'yevo International Airport – 15 km and center of Moscow – 12 km. The surrounding area has a mix of administrative and business properties and residential area. There is construction of a new Business Centre with an apartments section.

Location

LENINGRADKA 58

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The Subject Property is a multifunctional residential development complex located on a 1.77 ha Description fenced land plot. Residential complex with 2 level underground parking and commercial premises. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 94,085 Land plot area 1.50 hectares sqm NSA (excluding 53,750 parking), sqm Residential premises Available residential premises 51,832 42,796 area, sqm area, sqm Commercial premises Available commercial 1,917 1,917 area, sqm premises area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 534 parking lots/3,450 sqm Available parking lots 524 parking lots

Tenure Non-residential building with total area of 2,682.6 sqm freehold (ownership certificate 77 АС Buildings №389420 dated July, 15, 2015); Non-residential building with total area of 640 sqm freehold (ownership certificate 77 АС №389419 dated July, 15, 2015). Land plot with total area of 17,656 sqm– freehold (ownership certificate freehold (ownership Land plot certificate 77 АС №389 417 dated July, 15, 2015) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: March 2018/ March 2021; ● Sales start/completion dates: June 2018/ June 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 4,603,083,000 RUB considerations ● Prices per sqm or parking unit: residential: 168,067 RUB; commercial: 283,000; parking: 1,261,260 RUB; ● Estimated income: 9,059,378,000 RUB (including 650,596,191 from bargains before December 31, 2018); ● Discount Rate: 12.80% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 3,037,160,000

37. Krasny Mayak

Name Krasny Mayak Property type Business class residential Address 26, Krasnogo Mayaka St., Moscow Business class residential housing complex located at pedestrian accessibility from Prazhskaya metro station

Location

Photo

Krasny Mayak is a business class residential complex. The complex comprises a building of variable number of floors (up to 23 floors) with a parking and commercial premises. The total Description number of apartments under the project is 1,624, the number of parking spaces is 845. The construction technology is a monolithic frame with filling. Residential and non-residential premises are offered for sale without interior fit-out. Stage of Concept development Development strategy Build and sell development Areas Total buildings area, 154,025 Land plot area 4.23 hectares sqm NSA (excluding 101,525 parking), sqm Residential premises Available residential premises 92,217 92,217 area, sqm area, sqm Commercial premises Available commercial premises 9,308 9,308 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm

Parking lots/area 845 Available parking lots 845 Tenure Buildings Land plot Freehold Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: January 2020/ December 2022; ● Sales start/completion dates: January 2020/ June 2023; ● Number of phases: 5; Valuation ● Estimated costs after the valuation date: 8,714,662,000 RUB considerations ● Prices per sqm or parking unit: residential: 158,538 RUB; commercial: 195,824; parking: 842,729 RUB; ● Estimated income (in current prices): 17,154,703,000 RUB; ● Discount Rate: 13.32% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 3,805,614,000

38. ZIL-YUG

Name ZIL-YUG Property type Business class residential Address 23, Avtozavodskaya street, Moscow The multifunctional complex is being built in the Southern administrative district of Moscow, in the former industrial area MSC ZIL, on a site with a total area of 59.3 hectares, located at: 23, Avtozavodskaya street.

Location

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Multifunctional complex consisting of apartment buildings and non-residential, with developed social, cultural and household, transport and engineering infrastructure to be built on the territory of the northern part of the Southern Administrative District, in the Danilovsky district of the city of Moscow, limited territory MLRR, the Moskva River, the old channel of the Moscow river and underground engineering area. As part of the implementation of activities in the field of Description environmental protection planning area provides soundproofing increase (noise protection glazing) buildings on these plots along the major highways and MLRR. New neighborhood infrastructure will be in charge modern requirements to housing: underground parking, landscaped inner courtyards with children's and sports fields. Improvement concept is developed taking into account the preservation of existing trees and planting new lawns, lighted walking and cycling routes. Stage of Concept development Development strategy Build and sell development Areas Total buildings area, 708,256 Land plot area 59.30 hectares sqm

NSA (excluding 485,301 parking), sqm Residential premises Available residential premises 410,921 410,921 area, sqm area, sqm Commercial premises Available commercial 74,380 74,380 area, sqm premises area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 5,718 parking lots/47,734 sqm Available parking lots 5,718 parking lots/47,734 sqm Tenure Buildings - Land area of 480,532 sqm, cadastral № 77: 05: 0002005: 2733, rental agreement № M-05-044333 dated 30.01.2014 year; Land area of 62,094 sqm, cadastral № 77: 05: 0002005: 2734, rental agreement № M-05-044517 dated 18.02.2014 year; Land area of 423,755 sqm, cadastral № 77: 05: 0002005: 3148, rental agreement № M-05-048267 dated 23.12.2015 year; Land area of 99,870 sqm, cadastral № 77: 05: 0002005: 3149, rental agreement № M-05-048163 dated 11.12.2015 Land plot year; Land area of 14,964 sqm, cadastral № 77: 05: 0002005: 3152, rental agreement № M-05- 047563 dated 18.08.2015 year; Land area of 902 sqm, cadastral № 77: 05: 0002005: 3153, rental agreement № M-05-047775 dated 01.10.2015 year; Land area of 9279 sqm, cadastral № 77: 05: 0002005: 3155, rental agreement № M-05-047564 dated 18.08.2015 year; Land area of 1952 sqm, cadastral № 77: 05: 0002005: 3156, rental agreement № M-05-047785 dated 01.10.2015 year Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: January 2020/ December 2029; ● Sales start/completion dates: February 2020/ December 2031; ● Number of phases: 9; Valuation ● Estimated costs after the valuation date: 79,961,004,000 RUB considerations ● Prices per sqm or parking unit: residential: 218,157 RUB; commercial: 255,036; parking: 1,500,000 RUB; ● Estimated income (in current prices): 117,191,866,000 RUB; ● Discount Rate: 13.85% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 9,844,667,000

39. ZILART

Name ZILART Property type Business class residential Address 23, Avtozavodskaya St, Moscow Development project is located in South district at Avtozavodskaya St. The site is located in 5 minutes by the car from Tulskaya and Avtozavodskaya subway stations. Railway station ZIL is situated close to the property. From the North side the property is boarded by the Third Transport Ring. From the East side of the land plot is Railway Small Ring. The sub-district has a well- developed social, transport and engineering infrastructure. It benefits from good transport accessibility through Third Transport Ring.

Location

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The subject property is a multifunctional residential development complex located on a 65.087 hectares of land plots. Under the proposed development the project will comprise a business class residential complex with parking lot and commercial premises. The whole street will be pedestrian Description with limited public transport. The future residential building will consist of variable storey from 6 to 15. Furthermore concept of development scheme plans call for open spaces, park, schools other social facilities. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 1,462,002 Land plot area 65.087 hectares sqm NSA (excluding 1,009,731 parking), sqm Residential premises Available residential premises 763,251 610,449 area, sqm area, sqm Commercial premises Available commercial premises 246,480 237,211 area, sqm area, sqm

Other premises area, Available other premises area, - - sqm sqm 11,306 parking lots/90,502 Parking lots/area Available parking lots 10,374 sqm Tenure Buildings - Land plot with total area of 14738 sqm – long term lease agreement № М-05-045501 dated October, 15, 2014); Land plot with total area of 16,682 sqm – long term lease agreement № М-05- 045503 dated October, 15, 2014); Land plot with total area of 17071 sqm – long term lease agreement № М-05-045504 dated October, 15, 2014); Land plot with total area of 30,741 sqm – long term lease agreement № М-05-045536 dated 23 October 2014); Land plot with total area of 51,529 sqm – long term lease agreement № М-05-049497 dated 02 September 2016); Land plot with total area of 31,234 sqm – amending agreemen to long term lease agreement № М-05- 045538 dated 23 October 2014); Land plot with total area of 23,353 sqm – long term lease agreement № М-05-049082 dated 07 June 2016); Land plot with total area of 31,353 sqm – long term lease agreement № М-05-049494 dated 02 September 2016); Land plot with total area of 16,628 sqm – long term lease agreement № М-05-045546 dated 23 October 2014); Land plot with total area of 13,142 sqm – long term lease agreement № М-05-045549 dated 23 October 2014); Land plots with total area of 25,150 sqm – amending agreement to long term lease agreement № М-05-045552 dated 23 October 2014); Land plot with total area of 19,913 sqm – long term lease agreement № М-05-047612 dated 31 August 2015); Land plot with total area of 9,947 sqm – long term lease agreement № М-05-044956 dated 30 May 2014). Land plot with total area of 9,119 sqm – long term lease agreement № М-05-048994 dated 05 May 2016); Land plot with total area of 3,361 sqm – long term lease agreement № М-05-049738 dated 17 October 2016); Land plot with total area of 3,534 sqm – long term lease agreement № М-05-049739 dated 17 October 2016); Land plot with total area of 6146 sqm - long term lease agreement №И-05- 001651 dated August 16, 2018; Land plot with total area of 22967 sqm - long term lease agreement №М-05-051888 dated January 31, 2018; Land plot with total area of 16551 sqm - long term lease agreement №М-05-051886 dated January 31, 2018; Land plot Land plot with total area of 10391 sqm - long term lease agreement №М-05-051900 dated February 2, 2018; Land plot with total area of 9591 sqm - long term lease agreement №М-05-051887 dated January 31, 2018; Land plot with total area of 29626 sqm - long term lease agreement №М-05-051884 dated January 31, 2018; Land plot with total area of 5936 sqm - long term lease agreement №М-05-051882 dated January 31, 2018; Land plot with total area of 5177 sqm - long term lease agreement №M-05-051835 dated January 24, 2018; Land plot with total area of 19492 sqm - long term lease agreement №М-05-051836 dated January 24, 2018; Land plot with total area of 464 sqm - long term lease agreement №М-05-051832 dated January 24, 2018; Land plot with total area of 6784 sqm - long term lease agreement №М-05-051918 dated February 6, 2018; Land plot with total area of 11670 sqm - long term lease agreement №М-05-051938 dated February 8, 2018; Land plot with total area of 4 sqm - long term lease agreement №М-05-051833 dated January 24, 2018; Land plot with total area of 12488 sqm - long term lease agreement №М-05-051919 dated February 6, 2018; Land plot with total area of 21 sqm - long term lease agreement №М-05-051831 dated January 24, 2018; Land plot with total area of 10155 sqm - long term lease agreement №М-05- 051904 dated February 2, 2018; Land plot with total area of 21 sqm - long term lease agreement №М-05-051834 dated January 24, 2018; Land plot with total area of 14132 sqm - long term lease agreement №М-05-051905 dated February 2, 2018; Land plot with total area of 6407 sqm - long term lease agreement №М-05-051903 dated February 2, 2018; Land plot with total area of 4661 sqm - long term lease agreement №М-05-051916 dated February 6, 2018; Land plot with total area of 16180 sqm - long term lease agreement №М-05-051901 dated February 2, 2018; Land plot with total area of 6201 sqm - long term lease agreement №М-05-051939 dated February 8, 2018; Land plot with total area of 3694 sqm - long term lease agreement №М-05-051914 dated

February 6, 2018; Land plot with total area of 8515 sqm - long term lease agreement №М-05- 051940 dated February 8, 2018; Land plot with total area of 5367 sqm - long term lease agreement №М-05-051915 dated February 6, 2018; Land plot with total area of 1546 sqm - long term lease agreement №М-05-051941 dated February 8, 2018; Land plot with total area of 10 sqm - long term lease agreement №М-05-051830 dated January 24, 2018 Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: August 2015/ December 2026; ● Sales start/completion dates: September 2015/ July 2027; ● Number of phases: 9; Valuation ● Estimated costs after the valuation date: 126,134,967,000 RUB considerations ● Prices per sqm or parking unit: residential: 244,704 RUB; commercial: 220,400 RUB; parking: 1,700,000 RUB; ● Estimated income (in current prices): 220,016,320,000 RUB (including 5,592,949,356,000 RUB for bargains before December 31, 2018); ● Discount Rate: 12.86% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 34,927,810,000

40. Luchi

Name Luchi Property type Mass market residential Address Bldg 6, Proizvodstvennaya St, Moscow Luchi is a mass market (comfort class) residential complex, located in Solntsevo district of Moscow. The development is within a 7-10 minute drive from Salarevo metro station and in reasonable proximity to a railway station Novoperedelkino. The area also benefits from its proximity to several parks, such as Balkovsky and Ulyanivsky parks. The transport system is well developed and allows easy access to the city centre. The site close to the development in the end of 2017 plans call for opening metro station Solncevo.

Location

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Luchi is a mass market (comfort class) residential complex. The design and construction of the complex involves five stages with an underground parking area. Construction use poured concrete Description technology with brick elements and ventilated facades. Furthermore concept of development scheme plans call for open spaces, park, schools other social facilities. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 892,689 Land plot area 39.09 hectares sqm NSA (excluding 541,927 parking), sqm Residential premises Available residential premises 493,970 203,924 area, sqm area, sqm Commercial premises Available commercial premises 39,238 28,491 area, sqm area, sqm Other premises area, Available other premises area, 8,718 3,939 sqm sqm Parking lots/area 3,801 parking lots Available parking lots 2,392

Tenure Buildings - Land plot with total area of 36,167 sqm freehold (ownership certificate 77 АР № 701352 dated October, 10, 2014); Land plot with total area of 6,868 sqm – long term lease agreement № М - 07- 047971 dated November, 3, 2015); Land plot with total area of 57,072 sqm – long term lease agreement № М - 07-047972 dated November, 3, 2015); Land plot with total area of 17,706 sqm – long term lease agreement № М - 07-047973 dated November, 3, 2015); Land plot with total area of 15,360 sqm – long term lease agreement № М - 07-047974 dated November, 3, 2015); Land plot with total area of 65,708 sqm – long term lease agreement № М - 07-047975 dated November, 3, 2015); Land plot with total area of 56,602 sqm – long term lease agreement № М - Land plot 07-047976 dated November, 3, 2015); Land plot with total area of 6,337 sqm – long term lease agreement № М - 07-047977 dated November, 3, 2015); Land plot with total area of 58,614 sqm – long term lease agreement № М - 07-047978 dated November, 3, 2015); Land plot with total area of 1,257 sqm – long term lease agreement № М - 07-047979 dated November, 3, 2015); Land plot with total area of 24,609 sqm – long term lease agreement № М - 07-047980 dated November, 3, 2015); Land plot with total area of 7,272 sqm – long term lease agreement № М - 07-047981 dated November, 3, 2015); Land plot with total area of 7,825 sqm – long term lease agreement № М - 07-047982 dated November, 3, 2015); Land plot with total area of 29,513 sqm – long term lease agreement № М - 07-047970 dated November, 3, 2015) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: January 2016/ September 2023; ● Sales start/completion dates: February 2016/ October 2026; ● Number of phases: 5; ● Estimated costs after the valuation date: 22,680,588,000 RUB Valuation considerations ● Prices per sqm or parking unit: residential: 118,525 RUB; commercial: 135,496; other premises: 75,439; parking: 910,719 RUB; ● Estimated income (in current prices): 34,605,976,000 RUB (including 4,204,555,050 RUB for bargains before December 31, 2018); ● Discount Rate: 12.45%

Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 10,090,963,000

41. Luchi-2

Name Luchi-2 Property type Mass market residential Address Proizvodstvennaya St., Moscow Luchi-2 is located in Solntsevo district of Moscow. The Property is within a 7-10 minute drive from Salarevo metro station and in reasonable proximity to a railway station Novoperedelkino. The area also benefits from its proximity to several parks, such as Balkovsky and Ulyanivsky parks. The transport system is well developed and allows easy access to the city centre. The site close to the development in the end of 2017 plans call for opening metro station Solncevo.

Location

Luchi-2

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Luchi-2 is a mass market (comfort class) residential complex. Integrated land development, design Description and construction of multi-storey residential buildings with underground parking including social and engineering infrastructure. Stage of Concept development Development strategy Build and sell development Areas Total buildings area, 133,486 Land plot area 4.50 hectares sqm NSA (excluding 77,175 parking), sqm Residential premises Available residential premises 72,675 72,675 area, sqm area, sqm Commercial premises Available commercial premises 4,500 4,500 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 1,017 parking lots Available parking lots 1,017 Tenure Buildings - Land plot Leasehold

Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: January 2020/ December 2022; ● Sales start/completion dates: November 2020/ October 2022; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 5,888,089,000 RUB considerations ● Prices per sqm or parking unit: residential: 125,000 RUB; commercial: 140,000; parking: 1,000,442 RUB; ● Estimated income (in current prices): 10,731,825,000 RUB; ● Discount Rate: 13.32% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 3,427,176,000

42. Novoe Domodedovo

Name Novoe Domodedovo Property type Mass market residential Address Mikrorayon Zapadny, Domodedovo, Moscovskaya Oblast' The Residential complex is located in a 22 km from Moscow Ring Road (MKAD) on the frontage line of highway M-4 Don which provides good transport accessibility to airport Domodedovo – 10 km and railway stations Vostryakovo and Vzletnaya – 3 km. The site is situated at environmentally pristine without any industrial plants. At the moment it benefits from good transport accessibility by the car but after completion plans call for arranging traffic of public transport from railway stations Vostryakovo and Vzletnaya to the residential district.

Location

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According to the concept provided by the Client a residential complex is to be built on the land plot with a total area of 39.3351 ha. The residential building consists of variable number of storeys Description (from 9 to 17). Development project comprised 26 blocks of residential premises, 2 schools, 2 kindergartens, multilevel parking lot, stadium and open spaces. Stage of Completed Development strategy Sell development Areas Total buildings area, 568,425 Land plot area 39.3351 sqm NSA (excluding 317,786 parking), sqm Residential premises Available residential premises 303,191 sqm - area, sqm area, sqm Commercial premises Available commercial premises 14,595 1,700 area, sqm area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 486 parking lots/4,078 sqm Available parking lots 339 parking lots

Tenure Buildings - Land plot with total area of 1,613 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2900/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 5,458 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2909/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 5,573 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2905/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 5,777 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2908/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 6,591 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2903/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 5,838 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2910/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 7,165 sqm – freehold (registration № 50-50/028-50/028/005/2016- Land plot 2907/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 7,365 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2898/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 11,474 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2904/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 13,571 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2897/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 15,627 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2901/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 16,644 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2899/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016); Land plot with total area of 23,514 sqm – freehold (registration № 50-50/028-50/028/005/2016- 2896/2, Extract from the Unied State Register of Real Estate Property, dated August 04, 2016). Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: August 2011/ August 2017; ● Sales start/completion dates: October 2011/August 2021; Valuation ● Number of phases: 1; considerations ● Estimated costs after the valuation date: 54,419,000 RUB ● Prices per sqm or parking unit: commercial: 91,143 RUB; parking: 532,791 RUB ● Estimated income: 335,569,000 RUB; ● Discount Rate: 15.82% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 180,003,000

43. Nakhabino Yasnoe

Name Nakhabino Yasnoe Property type Mass market residential Address near Chernaya Village, Pavlo-Slobodskoye Settlement, Istrinsky District, Moscovskaya Oblast' Nakhabino Yasnoe has well-developed transport and social infrastructure. The district is connected with the centre of Moscow via two motorways – Volokolamskoye Highway and Novorizhskoye Highway. Since the new road interchange has been opened, now it takes only 30- 35 minutes to get to Moscow from the neighborhood even during the rush-hour. Besides, the neighborhood lies near Nakhabino railway station, where trains run every 10-15 minutes. A short distance away there are public and private schools, a supermarket, a bowling center, restaurants, a fitness center, etc. The Property is located in the area surrounded by forestry, and there is a picturesque valley with a river in the north-west.

Location

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The Property is a multifunctional residential development complex located on land plots with total amount of 30.1 hectares. Under the proposed development the project will comprise a comfort Description class residential complex with parking lot and commercial premises. The Property comprises 58 three-, four- and five-storey EURO-houses. UnQ1ue facade fit-out seamless technology improves buildings’ exterior and guarantees high insulation. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 242,140 Land plot area 30.01 hectares sqm NSA (excluding 149,865 parking), sqm Residential premises Available residential premises 144,076 31,725 area, sqm area, sqm Commercial premises Available commercial premises 3,778 2,323 area, sqm area, sqm

Other premises area, Available other premises area, 2,010 1,414 sqm sqm Parking lots/area - Available parking lots - Tenure Buildings - Land plot with total area of 353 sqm - freehold (registration № 50-50/008-50/011/013/2016-30/1, Extract from the Unied State Register of Real Estate Property, dated December 23, 2016); Land plot with total area of 10,396 sqm - freehold (registration № 50-50/008-50/008/003/2016-9857/1, Extract from the Unied State Register of Real Estate Property, dated December 27, 2016); Land plot with total area of 29 sqm - freehold (registration № 50-50/008-50/008/003/2016-9865/1, Extract from the Unied State Register of Real Estate Property, dated December 27, 2016); Land plot with total area of 47 sqm - freehold (registration № 50-50/008-50/011/013/2016-8/1, Extract from the Unied State Register of Real Estate Property, dated December 23, 2016); Land plot with total area of 156 sqm - freehold (registration № 50-50/008-50/011/013/2016-7/1, Extract from the Unied State Register of Real Estate Property, dated December 23, 2016); Land plot with total area of 9,626 sqm - freehold (registration № 50-50/008-50/011/013/2016-9/1, Extract from the Unied State Register of Real Estate Property, dated December 23, 2016); Land plot with total area of 29 sqm - freehold (registration № 50-50/008-50/011/013/2016-15/1, Extract from the Unied State Register of Real Estate Property, dated December 22, 2016); Land plot with total area of 13,234 sqm - freehold (registration № 50-50/008-50/011/013/2016-13/1, Extract from the Unied State Register of Real Estate Property, dated December 22, 2016); Land plot with total area of 95 sqm - Land plot freehold (registration № 50-50/008-50/008/003/2016-9871/1, Extract from the Unied State Register of Real Estate Property, dated December 26, 2016); Land plot with total area of 123 sqm - freehold (registration № 50-50/008-50/008/003/2016-9872/1, Extract from the Unied State Register of Real Estate Property, dated December 26, 2016); Land plot with total area of 9,413 sqm - freehold (registration № 50-50/008-50/008/003/2016-9873/1, Extract from the Unied State Register of Real Estate Property, dated December 26, 2016); Land plot with total area of 56 sqm - freehold (registration № 50-50/008-50/011/013/2016-29/1, Extract from the Unied State Register of Real Estate Property, dated December 23, 2016); Land plot with total area of 2,085 sqm - freehold (ownership certificate 50-ББ №852158dated March 02, 2016); Land plot with total area of 9,671 sqm - freehold (ownership certificate 50-ББ №841134 dated March 02, 2016); Land plot with total area of 10 sqm - freehold (ownership certificate 50-ББ №841132 dated March 02, 2016); Land plot with total area of 663 sqm - freehold (ownership certificate 50-ББ №841133 dated March 02, 2016); Land plot with total area of 24 sqm - freehold (ownership certificate 50-ББ №852153 dated March 02, 2016); Land plot with total area of 140,181 sqm - freehold (ownership certificate 50-ББ №852151 dated March 02, 2016); Land plot with total area of 363 sqm - freehold (ownership certificate 50-ББ №852155 dated March 02, 2016); Land plot with total area of 23 sqm - freehold (ownership certificate 50-ББ №852156 dated March 02, 2016). Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: December 2012/ December 2019; ● Sales start/completion dates: April 2013/ August 2021; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 1,234,622,000 RUB considerations ● Prices per sqm or parking unit: residential: 70,426 RUB; commercial: 73,990 RUB; other: 30,081 RUB; ● Estimated income: 2,826,567,000 RUB (including 377,868,570 RUB from bargains before December 31, 2018); ● Discount Rate: 12.45% Valuation date December 31, 2018. Inspection date December 28, 2018 Market value, rubles 1,801,623,000

44. Noviy Balchug

Name Noviy Balchug Property type Commercial Address Bldgs. 1, 2, 3, 9, Sadovnicheskaya St, Moscow The site is located in Central District. The proximity of the Zamoskvorechie sub-district to the city center makes it a prestigious location for both living and business. The site is located on the frontage line of Sadovnicheskaya St., which stretches along Sadovnicheskaya and Kosmodiamnskaya Embankments. It is also within a five minute walk from Novokuznetskaya metro station. The complex is well located in a pleasant environment, with the established infrastructure including large shopping centers, food stores, cinemas, hospitals and schools.

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The Property comprises a 6-7 storey building with 3 level underground parking. The building has Description been constructed using poured concrete technology with brick elements. The ground floors will be occupied by commercial premises. The development also features atrium at the courtyard. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 24,360 Land plot area 0.40 hectares sqm NSA (excluding 24,360 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises - - area, sqm area, sqm Other premises area, Available other premises area, 24,360 24,360 sqm sqm Parking lots/area 170 parking lots/1,224 sqm Available parking lots 170 Tenure Buildings -

Land plot with total area of 4,000 sqm – long term lease agreement № М - 01-044921 May, 20, Land plot 2014). Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: December 2014/ June 2019; ● Sales start/completion dates: October 2020/ October 2020; Valuation ● Number of phases: 1; considerations ● Estimated costs after the valuation date: 884,785,000 RUB ● Estimated income (in current prices): 9,500,000,000 RUB; ● Discount Rate: 18.76% Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 6,434,092,000

45. Avtozavodskaya

Name Avtozavodskaya Property type Operating office Address 22, Avtozavodskaya St, Moscow The site is located in 5 minutes drive from Tulskaya and Avtozavodskaya subway stations. Railway station ZIL is situated close to the property. From the South side the property is boarded by the Third Transport Ring. From the North side of the land plot where property is situated there is former sports area of the Dynamo manufactory and embankment of the Moscow river. An access available from Third Transport Ring. The surrounding area has a mix of administrative and business properties. The property is located opposite to under development territory of the ZIL manufactory. Development project is comprised residential and commercial properties.

Location

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The subject property is three-floor office complex. An access in the building is carried via check- point. The main entrance is located on Third Transport Ring. The complex was built in 1973. Description Building’s walls are made from the glass, the foundation is reinforced concrete, façade is plastered and painted, the roof is metal. The building has a cabinet-type layout. The ceiling height in cellar is 1st – 5.2 – 3.98, 2nd – 2.98 and the 3rd floors – 3.60 m. Stage of Completed Development strategy Hold development Areas Total buildings area, 7,767 Land plot area 0.76 hectares sqm NSA (excluding 7,314 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises 6,929 6,929 area, sqm area, sqm Other premises area, Available other premises area, 385 - sqm sqm

Parking lots/area 16 Available parking lots 16 Tenure Buildings freehold (ownership certificate 77 АС № 369944 dated June 05, 2015) Land plot long term leasehold (lease agreement № М - 05-018462 dated April, 18, 2002) Tenancies - • Direct Capitalization Method and Comparative Method were applied. • Direct Capitalization Method considerations: • Average rental rate, rubles per sqm p.a.: 17,750; Valuation • Caprate: 11.0%; considerations • Comparative Method considerations: • Comparative method was based on the data of offers of comparable subjects. The adjustments based on the market data were used to determine the Value. Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 1,201,826,000

46. Tverskoy Blvd

Name Tverskoy Blvd Property type Operating office Address 16, Tverskoy blvd., Moscow The Subject Property is located in Central Administrative district of Moscow, in Presnensky sub- district, on Tverskoy blvd in 500 m from Pushkinskaya metro station on the front line of the Boulevard Ring. Close to the property is located Pushkin Square and Tverskaya Street, one of the busiest places in Moscow. An access available from the Tverskoy blvd there are some bus stops slightly off the Subject. Thus, the Subject Property has good transport and pedestrian accessibility. The subject’s surroundings include social, commercial and residential estate as well as rest zones and cultural monuments. The most famous office centres in the district are the following: Class A Usadba Center located at 22, Voznesensky lane, Moscow; Class B Nikitsky Passage located at 5, bld. 6 Nikitsky lane, Moscow;

Location

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The property is newly discovered sample of architecture of 19 century – Maikov’s town mansion. The building is fully redeveloped in 2004 – 2005 with preservation of façade and cast iron stairs. Description The four floor building is comprised class В office accommodation which is fully fitted out. There is two level underground parking lot for 30 parking spaces. Stage of Completed Development strategy Hold development Areas Total buildings area, 4,904 Land plot area 0.1405 hectares sqm NSA (excluding 2 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises 2,292 2,292 area, sqm area, sqm

Other premises area, Available other premises area, - - sqm sqm Parking lots/area 15 Available parking lots 15 Tenure Buildings - Part of the total area of the property is 1,176.8 sqm – freehold (ownership certificate № 77 АД №078696 dated March 02, 2007; 77 АС №537313 January 11, 2015) Part of the total area of the property is 338.5 sqm – freehold (ownership certificate 77 АД № 076823 dated December 26, 2006) Part of the total area of the property is 690.6 sqm – freehold (ownership certificate 77 АР № 804839 dated October 06, 2014) Part of the total area of the property is 1,016 sqm – freehold (ownership certificate № 77 АС №537314 dated January 11, 2016; 77 АД №078697 dated March 02, 2007) Part of the total area of the property is 1,621.9 sqm – freehold (ownership certificate 77 Land plot АД № 076822 dated December 26, 2006) Underground parking space № 18 – freehold (ownership certificate 77 АС № 055635 dated April 20, 2015) Underground parking space № 19 – freehold (ownership certificate 77 АС № 055480 dated April 24, 2015) Underground parking space № 20 – freehold (ownership certificate 77 АС № 056246 dated April 24, 2015) Underground parking space № 21 – freehold (ownership certificate 77 АС № 055306 dated April 24, 2015) Underground parking space № 22 – freehold (ownership certificate 77 АС № 055307 dated April 24, 2015) Land plot – long-term lease (№ М - 01-039326 dated December 14, 2012 ) Tenancies - Direct Capitalization Method and Comparative Method were applied. Direct Capitalization Method considerations: Average rental rate , rubles per sqm p.a.: 16,667; Valuation Caprate (Terms /Reversion period): 10.5%; considerations Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The adjustment based on the market data were used to determine the Value. Valuation date December 31, 2018 Inspection date December 28, 2018 Market value, rubles 1,543,618,000

47. Davydkovskaya

Name Davydkovskaya Property type Operating office Address 16, Davidkovskaya St., Moscow The Subject property is located in Fili-Davydkovo, Western Administrative district. The property has beneficial location in terms of convenient pedestrian and transport access. Slavyansky boulevard metro station is located at the distance of 0,5 km from the property, an access to the property is provided by Davidkovskaya street from Kutuzovsky Avenue. The surrounding area has a mix of administrative and business properties and residential area. The site is situated at environmentally pristine without any industrial plants. In view the whole advantages listed above, the location of the subject property can be classified as fair.

Location

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Office premises are located at the first floor and the basement of the residential complex. The premises have a cabinet-type layout. The site is fully fit out and serviced with requisite equipment for office premises – climate control, safety control system, uninterruptable power and etc. The Description territory near the Property is fenced; there is an above ground parking lot. Building’s walls are made from reinforced concrete and bricks, façade is stone facing and painting, window frame is plastic extrusions, floor – linoleum, parquet. Stage of Completed Development strategy Hold development Areas Total buildings area, 1,808 Land plot area - sqm NSA (excluding 1,737 parking), sqm Residential premises Available residential premises - - area, sqm area, sqm Commercial premises Available commercial premises Leasable – 1,737.2 sqm 1,737 area, sqm area, sqm

Other premises area, Available other premises area, - - sqm sqm 6 underground parking Parking lots/area 6 underground parking spaces Available parking lots spaces Tenure Buildings - Part of the total area of the property is 3.7 - freehold (ownership certificate 77 АР 619732 dated June, 25, 2014); Part of the total area of the property is 406.1 - freehold (ownership certificate 77 АР 619733 dated June 25, 2014); Part of the total area of the property is 342.2 - freehold (ownership certificate 77 АР 619734 dated June 25, 2014); Part of the total area of the property is 273.3 - freehold (ownership certificate 77 АР 619735 dated June 25, 2014); Part of the total area of the property is 308.4 - freehold (ownership certificate 77 АР 619736 dated June 25, 2014); Part of the total area of the property is 403.5 - freehold (ownership certificate 77 АР 619737 dated June 25, Land plot 2014); Underground parking space № 136 - freehold (ownership certificate 77 АР 619727 dated June 25, 2014); Underground parking space № 134 - freehold (ownership certificate 77 АР 619728 dated June 18, 2014); Underground parking space № 133 - freehold (ownership certificate 77 АР 619729 dated June 18, 2014); Underground parking space № 132 - freehold (ownership certificate 77 АР 619730 dated June 18, 2014); Underground parking space № 135 - freehold (ownership certificate 77 АР 619731 dated June 18, 2014); Underground parking space № 23 - freehold (ownership certificate 78 АР 619738 dated June 25, 2014). At the valuation date all the premises of the Property are leased by the companies affiliated with Tenancies LSR Group. Direct Capitalization Method and Comparative Method were applied. Direct Capitalization Method considerations: Average rental rate (triple net), rubles per sqm p.a.: 15,315; Valuation Caprate: 11.5%; considerations Comparative Method considerations: Comparative method was based on the data of offers of comparable subjects. The adjustment based on the market data were used to determine the Value. Valuation date December 31, 2018. Inspection date December 28, 2018 Market value, rubles 228,936,000

48. Rassvetny

Name Rassvetny Property type Mass market residential Address 2B, 40-Letiya Komsomola Street, Kirovsky administrative district, Yekaterinburg The subject property is located near the center of Yekaterinburg city at the JBI sub district, on the corner of Siromolotova and Rassvetnaya streets. The ecological situation in the district is assumed to be good. There is a forest park Kamennye palatki near the area, Lake Shartash only in 1 km from the property. The area has a developed infrastructure: schools, clinic, food-markets, post office, shopping centers, banks and pharmacy. The distance to the city center is approximately 5.1 km. Developed transport system connects the area with the city through 4 highways (Malysheva, Komsomol’skaya, Shefskaya streets and Sibirskiy Trakt). The main highway of the district is Siromolotova street which provides residents with public transport (buses, trams, taxis). Surroundings are mainly presented by parking, supermarkets, tram deport, stadium at the distance of 300 meters and a big supermarket and shopping center in 750 meters.

Location

Rassvetny

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Economy class residential complex of 5 residential buildings (precast concrete) that are 25/26 floors in height. The residential complex area includes green zones, playgrounds, kindergarten and car parking for 336 parking lots. Residential complex consists of 2,907 residential premises that are fully fitted out (laminate, vinyl wallpapers, ceiling – waterproof acrylic, MDF interior doors, safe Description entrance door). The beginning of the construction – 2014 year. Scheduled completion date – 2018 year. Current condition: Houses 1, 2, 3, 4 – completed and comissioned; Houses 5 – construction. Stage of Completed Development strategy Sell development Areas

8.7491 hectares (~ 7 Total buildings area, 208,697 Land plot area contiguous land plots with a sqm total area of 87,491 sqm NSA (excluding 144,920 parking), sqm Residential premises Available residential premises 144,839 281 area, sqm area, sqm Commercial premises Available commercial premises - - area, sqm area, sqm Other premises area, Available other premises area, 81 sqm 46 sqm sqm sqm Parking lots/area 352 parking lots/ 1,654 sqm Available parking lots 168 Tenure Buildings - Freehold on the land plots: Land plot of 11,537 sqm, ownership certificate 66АЖ 407691 dated April 16, 2014; Land plot of 13,313 sqm, ownership certificate 66АЖ 500975 dated June 06, 2014; Land plot of 5,774 sqm, ownership certificate 66АЖ 503212 dated August 06, 2014; Land plot of Land plot 50 sqm, ownership certificate n/a (registration №66-66/001-66/001/459/2015-800/1) dated December 15, 2015; Land plot of 21,722 sqm, ownership certificate 426606 dated March 15, 2016; Land plot of 3,245 sqm, ownership certificate 426605 dated March 15, 2016; Land plot of 31,850 sqm, ownership certificate 426510 dated March 15, 2016 At the valuation date all the premises of the Property are leased by the companies affiliated with Tenancies LSR Group ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: February 2014/ April 2018; ● Sales start/completion dates: June 2014/ April 2019; ● Number of phases: 1; Valuation ● Estimated costs after the valuation date: 13,502,000 RUB; considerations ● Prices per sqm or parking unit: residential: 68,387 RUB, other premises: 31,493 RUB; parking unit: 317,143 RUB; ● Estimated income: 112,479,000 RUB (including 38,489,597 RUB for bargains before December 31, 2018); ● Discount Rate: 18.18% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 97,018,000

49. Khrustalniye Klyuchi

Name Khrustalniye Klyuchi Property type Mass market residential Address Latviyskaya St, Yekaterinburg The subject property is located in the east of Yekaterinburg at the Kompressornyi sub district at Latviiskaya street, near the Ring Road (EKAD). The distance to the city center is about 11,7 km. The ecological situation in the district is close to perfect, there is a big forest on the one side of the area. The district has a developed infrastructure: schools, clinic, food-markets, post-office, shopping centers, banks and pharmacy. The district is connected with the center of the city through three roads (Sibirskiy trakt, Kolcovskiy trakt, Alternate of Sibirskiy trakt). The Latviiskaya street is connected with one of the main highways which provides residents with a good transport accessibility. Moreover, aeroexpress can be used to reach the center of the city from the district. Surroundings are mainly presented by forest on the south, shops, clinic and police department at the distance of few hundred meters.

Location

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Economy class residential complex of 6 residential buildings (precast concrete) that are 12/25 floors in height. The residential complex area includes green zones, playgrounds and kindergarten. There are cafes, shops and banks on the ground floor of the subject property. Residential complex consists of 4,300 residential premises that are fully fitted out (laminate, vinyl wallpapers, ceiling – waterproof acrylic, MDF interior doors, safe entrance door) office and other premises. The beginning of the construction - 2014 year. Scheduled completion date - 2026 year. Current condition: Description House 1 – put into operation House 4А – put into operation House 4Б – put into operation House 6А – put into operation House 6 Б, В – put into operation Houseа 3 АБ – construction works Houseа 2, 5 – designing. Stage of Construction Development strategy Build and sell development Areas 11.0197 hectares (~ land plot Total buildings area, 290,316 Land plot area with a total area of 110,197 sqm sqm) NSA (excluding 224,385 parking), sqm Residential premises Available residential premises 220,518 168,446 area, sqm area, sqm Commercial premises Available commercial premises 897 179 area, sqm area, sqm Other premises area, Available other premises area, 2,970 2,166 sqm sqm Parking lots/area - Available parking lots - Tenure Buildings - Leasehold for the land plot until the May 25, 2022 (Lease Agreement # 6-1307-T dated May 25, Land plot 2012 as amended by Addendum dated October 29, 2014) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: April 2014/ September 2024; ● Sales start/completion dates: October 2014/ September 2024; ● Number of phases: 4; Valuation ● Estimated costs after the valuation date: 6,193,796,000 RUB; considerations ● Prices per sqm or parking unit: residential: 54,137 RUB; office premises: 45,710 RUB, other premises: 25,000 RUB; ● Estimated income: 8,218,412,000 RUB (including 158,115,474 RUB for bargains before December 31, 2018); ● Discount Rate: 12.94% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 1,052,714,000

50. Michurinskiy

Name Michurinskiy Property type Mass market residential Between Landau, Ekaterininskaya, Vavilova (Syhodol’skaya) streets, Verh-Isetskiy administrative Address district, Yekaterinburg The subject property is located in the west of Yekaterinburg city at the Shirokaya Rechka sub district between Landay, Ekaterininskaya, Vavilova (Syhodol’skaya) streets near the EKAD. The ecological situation in the district is close to perfect (forest and lake near the area). There are shopping malls such as OBI, IKEA, Ashan, METRO nearby.The transport accessibility of the subject property is satisfactory. The distance to the city center is approximately 10 km, to the Ring Road (EKAD) about 4 km. Now the project of improvement of the transport accessibility of the district is developed. This will help to connect the area with EKAD and sub district Academicheskiy which is one of the most dynamic growing districts of the city. Surroundings are mainly presented by green zone (mainly forests).

Location

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Comfort class residential complex of 70 residential buildings (precast concrete) that are 3/4 floors in height. The residential complex area includes green zones, playgrounds, kindergarten, office rooms and three-level parking (594 parking lots). Residential premises of residential complex are fully fitted out (laminate, vinyl wallpapers, ceiling – waterproof acrylic, MDF interior doors, safe entrance door). The beginning of the construction – 2012 year. Scheduled completion date - 2023 year. Current condition: Michurinskiy, 1 stage of construction, участок 1,2,3 (house 1-12) – put into operation Michurinskiy, 1 stage of construction, участок 7,8 (house 18-29) – put into operation Michurinskiy, 1 stage of construction, house 69 with shop (townhouse) – put into operation Description Michurinskiy, 1 stage of construction участок 4,5 (house13-16) – put into operation Michurinskiy, 1 stage of construction участок 9 (house 30-32) - put into operation Michurinskiy, 2 stage of construction участок 1 (house33-36) – put into operation Michurinskiy, 2 stage of construction. участок 2 (house37-42) – put into operation Michurinskiy, 1 stage of construction house 62 – put into operation Michurinskiy 1 stage of construction., Parking 63 – put into operation Michurinskiy, 2 stage of construction. land 6 (house55,56) – put into operation Michurinskiy, 2 stage of construction. land 6 (house54) – first floors Michurinskiy, 2 stage of construction. land 9 (house75,76) – foundation installation; Other stages of construction – designing and construction. Stage of Construction Development strategy Build and sell development Areas Total buildings area, 347,906 Land plot area 50.6216 hectares sqm NSA (excluding 271,416 parking), sqm Residential premises Available residential premises 270,366 87,923 area, sqm area, sqm Commercial premises Available commercial premises 572 276 area, sqm area, sqm Other premises area, Available other premises area, 477 107 sqm sqm 299 parking lots (ground level Parking lots/area Available parking lots 228 parking) Tenure Buildings - Freehold on the land plots: Land plot of 2,756 sqm, ownership certificate 66АЖ 880745 dated December 31, 2014; Land plot of 30,336 sqm, ownership certificate 66АЖ 880746 dated December 31, 2014; Land plot of 34,035 sqm, ownership certificate 66АЖ 880747 dated December 31, 2014; Land plot of 5,652 sqm, ownership certificate 66АЖ 880748 dated December 31, 2014; Land plot of 204 sqm, ownership certificate 66АЖ 880749 dated December 31, 2014; Land plot of 401 sqm, ownership certificate 66АЖ 880750 dated December 31, 2014; Land plot of 29,100 sqm, ownership certificate 66АЖ 880751 dated December 31, 2014; Land plot of 11,946 sqm, ownership certificate 66АЖ 880752 dated December 31, 2014; Land plot of 17,986 sqm, Land plot ownership certificate 66АЖ 880753 dated December 31, 2014; Land plot of 2,262 sqm, ownership certificate 66АЖ 880754 dated December 31, 2014; Land plot of 18,864 sqm, ownership certificate 66АЖ 880755 dated December 31, 2014; Land plot of 22,227 sqm, ownership certificate 66АЖ 880756 dated December 31, 2014; Land plot of 3,208 sqm, ownership certificate 66АЖ 880757 dated December 31, 2014; Land plot of 47,177 sqm, ownership certificate 66АЖ 880758 dated December 31, 2014; Land plot of 1,797 sqm, ownership certificate 66АЖ 880759 dated December 31, 2014; Land plot of 3,142 sqm, ownership certificate 66АЖ 875257 dated February 10, 2015; Land plot of 3,632 sqm, ownership certificate 66АЖ 875258 dated February 10, 2015; Land plot of

1,744 sqm, ownership certificate 66АЖ 875259 dated February 10, 2015; Land plot of 2,366 sqm, ownership certificate 66АЖ 875260 dated February 10, 2015; Land plot of 21,590 sqm, ownership certificate 66АЖ 875261 dated February 10, 2015; Land plot of 4,580 sqm, ownership certificate 66АЕ 576211 dated October 08, 2012; Land plot of 24,958 sqm, ownership certificate 66АЕ 907355 dated May 13, 2013; Land plot of 52 sqm, ownership certificate 66АЕ 907356 dated May 13, 2013; Land plot of 25,415 sqm, ownership certificate 66АЕ 907359 dated May 13, 2013; Land plot of 18,328 sqm, ownership certificate 66АЖ 138385 dated September 26, 2013; Land plot of 1,445 sqm, ownership certificate 66АЖ 138403 dated September 26, 2013; Land plot of 21,621 sqm, ownership certificate 66АЖ 138468 dated September 26, 2013; Land plot of 11,373 sqm, ownership certificate 66АЖ 138439 dated September 26, 2013; Land plot of 2,542 sqm, ownership certificate 66АЖ 138458 dated September 26, 2013; Land plot of 205 sqm, ownership certificate 66АЖ 138245 dated September 26, 2013; Land plot of 328 sqm, ownership certificate 66АЖ 138386 dated September 26, 2013; Land plot of 8,651 sqm, ownership certificate 66АЖ 138387 dated September 26, 2013; Land plot of 5,774 sqm, ownership certificate 66АЖ 138404 dated September 26, 2013; Land plot of 8,046 sqm, ownership certificate 66АЖ 410749 dated March 24, 2014; Land plot of 6,134 sqm, ownership certificate 66АЖ 410748 dated March 24, 2014; Land plot of 7,046 sqm, ownership certificate 66АЖ 596373 dated June 27, 2014; Land plot of 34,480 sqm, ownership certificate 66АЖ 596374 dated June 27, 2014; Land plot of 125 sqm, ownership certificate 66АЖ 502980 dated August 01, 2014; Land plot of 12,142 sqm, ownership certificate 66АЖ 503063 dated August 01, 2014; Land plot of 407sqm, ownership certificate 66-66/001- 66/001/396/2015-294/1 dated July 14, 2015; Land plot of 406 sqm, ownership certificate 66- 66/001-66/001/396/2015-295/1 dated July 14, 2015; Land plot of 239 sqm, ownership certificate 66-66/001-66/001/396/2015-296/1 dated July 14, 2015; Land plot of 200 sqm, ownership certificate 66-66/001-66/001/396/2015-297/1 dated July 14, 2015; Land plot of 311 sqm, ownership certificate 66-66/001-66/001/396/2015-298/1 dated July 14, 2015; Land plot of 208 sqm, ownership certificate 66-66/001-66/001/396/2015-299/1 dated July 14, 2015; Land plot of 221 sqm, ownership certificate 66-66/001-66/001/396/2015-300/1 dated July 14, 2015; Land plot of 228 sqm, ownership certificate 66-66/001-66/001/396/2015-301/1 dated July 14, 2015; Land plot of 214 sqm, ownership certificate 66-66/001-66/001/396/2015-302/1 dated July 14, 2015; Land plot of 203 sqm, ownership certificate 66-66/001-66/001/396/2015-303/1 dated July 14, 2015; Land plot of 6,344 sqm, ownership certificate 66АЖ 650028 dated September 24, 2014; Land plot of 147 sqm, ownership certificate 66-66/001-66/001/472/2015-680/1 dated December 15, 2015; Land plot of 5,720 sqm, ownership certificate 66-66/001-66/001/472/2015-679/1 dated December 15, 2015. Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: November 2012/ December 2022; ● Sales start/completion dates: March 2013/ December 2022; ● Number of phases: 3; Valuation ● Estimated costs after the valuation date: 3,437,690,000 RUB; considerations ● Prices per sqm or parking unit: residential 56,527 RUB; office premises: 65,000 RUB; other premises: 25,128 RUB; parking: 312,999 RUB; ● Estimated income: 5,509,894,000 RUB (including 447,924,822 RUB for bargains before December 31, 2018); ● Discount Rate: 12.94% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 1,526,079,000

51. Academichesky

Name Academichesky Property type Mass market residential Address Verkhneuphaleyskaya St, Yekaterinburg The subject property is located in the west of Ekaterinburg city at the Shirokaya Rechka sub district, near the intersection of Evgeniya Savkova, Syhodol’skaya and Rucheinaya streets. The ecological situation in the district is close to perfect (forest and lake near the area). There are shopping malls such as OBI, IKEA, Ashan, METRO nearby. The transport accessibility of the subject property is satisfactory. The distance to the city center is approximately 9 km, to the Ring Road (EKAD) about 3.5 km. Now the project of improvement of the transport accessibility of the district is developed. This will help to connect the area with EKAD and sub district Academicheskiy which is one of the most dynamic growing districts of the city. Surroundings are presented by green zone and houses of Academicheskiy residential area that are 10 floors and more in height. There are warehouse complex Malahit, residential complexes Khrustal’nogorskiy and Suhodolskiy kvartal near the subject property.

Location

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Economy class residential complex of residential buildings (precast concrete) that are 7-25 floors in height. The residential complex area includes green zones, playgrounds and parking (600 parking lots). Flats of residential complex are fully fitted out (laminate, vinyl wallpapers, ceiling – waterproof acrylic, MDF interior doors, safe entrance door). The beginning of the construction - 2017 year. Scheduled completion date – 2026 year. Description Current condition: House 1 - put into operation House 2А – put into operation House 2Б – facade work House 3 – foundation installation. Stage of Construction Development strategy Build and sell development Areas

Total buildings area, 301,008 Land plot area 13.46 hectares sqm NSA (excluding 212,364 parking), sqm Residential premises Available residential premises 197,140 166,249 area, sqm area, sqm Commercial premises Available commercial premises 8,196 7,379 area, sqm area, sqm Other premises area, Available other premises area, 7,028 6,726 sqm sqm Parking lots/area 600 parking lots Available parking lots 600 Tenure Buildings - Land plot of 4628 sqm, ownership certificate 563623 dated July 11, 2016; Land plot of 16138 sqm, ownership certificate 563624 dated July 11, 2016; Land plot of 5287 sqm, ownership certificate 563625 dated July 11, 2016; Land plot of 2468 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017; Land plot of 12768 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017; Land plot of 5124 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017; Land plot of Land plot 4052 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017; Land plot of 1306 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017; Land plot of 16248 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017; Land plot of 6274 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017; Land plot of 27738 sqm, Extract from the Unified State Register of the Real Estate Property dated January 12, 2017. Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: June 2017/ September 2025; ● Sales start/completion dates: June 2017/ September 2025; ● Number of phases: 5; Valuation ● Estimated costs after the valuation date: 7,467,382,000 RUB; considerations ● Prices per sqm or parking unit: residential: 55,176 RUB; office premises: 50,865 RUB; other premises: 25,039 RUB; parking: 300,000 RUB; ● Estimated income: 10,211,047,000 RUB (including 314,380,417 RUB for bargains before December 31, 2018); ● Discount Rate: 12.94% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 1,453,649,000

52. Flagman

Name Flagman Property type Mass market residential Address between Repina, N.Vasil’eva, Zavodskaya streets, Verh-Isetskiy administrative district, Yekaterinburg The subject property is located in the Yekaterinburg at the VIZ sub district between Repina, N.Vasil’eva and Zavodskaya streets. The distance to the city center is approximately 3 km. The ecological situation in the district is deemed to be good. There are no big factories in the nearest area. The subject property is mainly surrounded by roads. It is situated near the crossroads of Gurzufskaya, Repina and Metallurgov streets – the main highways of the districts which connect west and south of the city with the center. So the transport system is well developed and provides residents with good services of private and public transport (mainly buses, but also trams at some distance). Surroundings are mainly presented by houses that are 5 floors in height, food-shops, schools, pharmacies. There are schools, kindergartens, hospital, parks, cafes, restaurants and shopping mall close to the area.

Location

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Comfort class residential complex of 4 residential buildings (precast concrete) that are 12-25 floors in height (with commercial premises at the ground floor). The residential complex area includes 1,023 residential premises, commercial premises and underground parking (515 parking lots). Residential premises of residential complex will be fully fitted out (laminate, vinyl wallpapers, ceiling – waterproof acrylic, MDF interior doors, safe entrance door). Description The beginning of the construction - 2015 year. Scheduled completion date - 2020 year. Current condition: House 1 – completed, House 2 – glazing, House 3 – middle floors, House 4 – foundation installation. Designing Stage of Construction Development strategy Build and sell development

Areas Total buildings area, 135,564 Land plot area 3.3884 hectares sqm NSA (excluding 92,827 parking), sqm Residential premises Available residential premises 88,691 31,691 area, sqm area, sqm Commercial premises Available commercial 3,988 1,437 area, sqm premises area, sqm Other premises area, Available other premises 149 sqm - sqm area, sqm 416 parking lots (underground Parking lots/area Available parking lots 140 parking Tenure Buildings - Freehold on the land plots: Land plot of 23,261 sqm, ownership certificate number 66АЖ 877020 dated February 20, 2015; Land plot of 48.42 sqm, ownership certificate number 66АЖ 877021 dated February 20, 2015; Land plot of 48 sqm, ownership certificate number 66АЖ 877022 dated Land plot February 20, 2015; Land plot of 4007 sqm, Extract from the Unified State Register of the Real Estate Property dated Desember 01, 2016; Land plot of 928 sqm, ownership certificate number 66АЕ 597658 dated September 14, 2012 (the land plot is not identified at the Public cadastral map). Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: April 2015/ December 2020; ● Sales start/completion dates: May 2015/ December 2020; ● Number of phases: 2; Valuation ● Estimated costs after the valuation date: 1,479,759,000 RUB considerations ● Prices per sqm or parking unit: residential: 69,764 RUB; commercial: 80,388 RUB; parking: 531,997 RUB. ● Estimated income: 2,516,007,000 RUB (including 115,078,095 RUB for bargains before December 31, 2018); ● Discount Rate: 12.94% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 700,992,000

53. VIZ

Name VIZ Property type Mass market residential 700 m to the South-East of the tram ring at the Bolshoy Konniy Peninsula, Verh-Isetskiy Address administrative district, Yekaterinburg The subject property is located in the west of Ekaterinburg city at the VIZ (Vizovskiy) sub district, at the territory of Bolshoy Konniy Peninsula. The ecological situation in the district is close to perfect (forest and lake near the area). The transport accessibility of the subject property is satisfactory. The distance to the city center is approximately 7 km, to the Ring Road (EKAD) about 2 km. The road to the subject property has no name, has two lines traffic, one line to each way. The nearest big road is Metallurgov Street and Novo-Moskovskiy tract (about 2 km on the straight) which connect eastern suburbs with a city center, but there is no direct access to these roads at the valuation date. Surroundings are presented by green zone and private residential buildings. The industrial and warehouse buildings of company Sportobuv (footwear production) are located at a distance of approximately 700 m. There was a development scheme of the EXPO 2025 complex construction at the territory of the subject property and its surroundings. The development scheme proposed the construction of large expocenter and high rise residential complex with all necessary infrastructure including construction of a bridge connecting the Bolshoy Konniy Peninsula and Sortirovka sub district at the north of the city. Now there is no actual information in this regard. The only one public transport link (200 m) is tramline which leads to the station VIZ near the city center. The territory of VIZ sub district is supposed to be one of the dynamically growing districts in terms of residential construction. The yacht club Komatak night club and Location beach Kuba are located nearby. Nevertheless, the absence of any infrastructure and transport links near the subject property negatively influence the attractiveness of the subject property location.

Photo

The subject property is a multifunctional residential development complex located on a 14.2962 hectares of land plots. Under the proposed development the project will comprise an economy class residential complex Description with parking (1,200 parking lots). Residential premises of residential complex will be fully fitted out. Scheduled completion date – 2025 year.

Stage of Design Development strategy Build and sell development Areas Total buildings area, 245,722 Land plot area 14.2962 hectares sqm NSA (excluding 150,000 parking), sqm Residential premises Available residential premises 150,000 150,000 area, sqm area, sqm Commercial premises Available commercial - - area, sqm premises area, sqm Other premises area, Available other premises area, - - sqm sqm Parking lots/area 1,200 parking lots Available parking lots 1,200 Tenure Buildings - Land plot of 142,962 sqm (cadastral number 66:41:0305021:3) is held freehold, ownership Land plot certificate 512609 dated June 02, 2016 Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: 3rd quarter 2019/ December 2025; ● Sales start/completion dates: April 2019/ December 2025; Valuation ● Number of phases: 1; considerations ● Estimated costs after the valuation date: 6,613,718,000 RUB; ● Prices per sqm or parking unit: residential: 62,239 RUB; parking: 353,500 RUB. ● Estimated income: 9,759,990,000 RUB; ● Discount Rate: 13.24% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 1,857,324,000

54. Tsvetnoy Bulvar (Blyukhera)

Name Tsvetnoy Bulvar (Blyukhera) Property type Mass market residential Danily Zvereva Street (at the intersection of Danily Zvereva, Sulimova and Blyukhera streets), Address Kirovskiy administrative district, Yekaterinburg The subject property is located to the North-East of Ekaterinburg city at the Pionerskiy sub district (Kirovskiy district), at the intersection of Danily Zvereva, Sulimova and Blyukhera streets. The ecological situation in the district is close to perfect (forest and lake near the area). There are shopping malls such as Park House, Aida nearby. The transport accessibility of the subject property is satisfactory. The distance to the city center is approximately 5 km, to the Ring Road (EKAD) about 1.7 km. Blyukhera street which passes along the southeast border of the subject property is one of the main transport links of the district which leads directly to the Prospect Lenina (one of the main streets of the city center). The Blyukhera Street as well as Danily Zvereva, Sulimova streets has two-ways traffic, two lines to each way. The tramway runs along the Blyukhera street. Surroundings are mainly presented by residential buildings of 1960-1970 construction years. The construction of new residential complex Avangard (Danily Zvereva Street) is carried out by company Atomstroycomplex. The lake Shartash and forest Shartashskiy (777 ha) are located at a distance of approximately 2 km from the property which provides citizens with bicycle and foot paths in the summer and ski tracks in the winter. Thus the location of the subject property may be described as attractive because of the proximity to the city center, lake Shartash and forest of the same name. Location

Photo

The subject property is a multifunctional residential development complex located on a 6.0536 hectares of land plots. Under the proposed development the project will comprise an comfort Description class residential complex with parking (900 parking lots). Residential premises of residential complex will be fully fitted out. The proposed beginning of the construction – 2018 year. Scheduled completion date – 2023 year. Stage of Construction Development strategy Build and sell development Areas

Total buildings area, 184,881 Land plot area 6.0536 hectares sqm NSA (excluding 128,139 parking), sqm Residential premises Available residential premises 121,840 75,366 area, sqm area, sqm Commercial premises Available commercial premises 3,477 3,477 area, sqm area, sqm Other premises area, Available other premises area, 2,823 2,539 sqm sqm Parking lots/area 1359 parking lots Available parking lots 1359 parking lots Tenure Buildings - Land plot of 60,536 sqm (cadastral number 66:41:0702069:1903) is held freehold, ownership Land plot certificate 418292 dated March 25, 2016 Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: August 2017/December 2023; ● Sales start/completion dates: September 2017/ December 2023; ● Number of phases: 2; Valuation ● Estimated costs after the valuation date: 5,153,285,000 RUB; considerations ● Prices per sqm or parking unit: residential: 67,863 RUB; other – 25,000 RUB; commercial: 70,000 RUB; parking: 350,000 RUB. ● Estimated income: 6,265,680,000 RUB (including 367,128,863 RUB for bargains before December 31, 2018); ● Discount Rate: 12.94% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 597,521,000

55. Voskhod

Name Voskhod Property type Mass market residential Address 25, 40-Letiya Komsomola St, Yekaterinburg The subject property is located in the eastern part of Yekaterinburg, in the Kirovsky district, in the JBI microdistrict. The ecological situation in the area is described by the following parameters: on the one hand, in the immediate vicinity are industrial and storage facilities, on the other - there are a lake and a forest nearby. The transport accessibility of the subject property is satisfactory. The distance to the city center is approximately 9 km, to the Ring Road (EKAD) about 7 km.The road to the subject property has no name, has two lines traffic, one line to each way. The nearest big road is ul. Vladimir Vysotsky and the Siberian route (about 1 km on the straight) which connect eastern suburbs with a city center. The surrounding environment is represented by residential buildings and production and storage facilities. The public transport stop is in the immediate vicinity of the Object. Next to the planned development in the future, it’s planned to develop a metro line between the areas VIZ - Center – JBI. Also in the Kirov administrative district are located some of the best universities in Ekaterinburg: UrFU, GU and UralUYU.

Location

Photo

The Property comprises two multiple-storeyed houses (14-23 floors), Overground parking for 330 Description parking slots, as well as a well-organized house territory including playgrounds and places for recreation of residents . Stage of Construction Development strategy Build and sell development Areas Total buildings area, 47,479 Land plot area 1,20 hectares sqm NSA (excluding 34,065 parking), sqm Residential premises Available residential premises 33,592 14,961 area, sqm area, sqm Commercial premises Available commercial premises - - area, sqm area, sqm

Other premises area, Available other premises area, 473 321 sqm sqm Parking lots/area - Available parking lots - Tenure Buildings - Freehold of the land plot (cadastral number 66: 41: 0705006: 011) with a total area of 11 970 sqm Land plot (Certificate of State Registration of Title 443668 dated 04/01/2016) Tenancies - ● Applied method(-s) of valuation: Residual (DCF); ● Construction start/completion dates: January 2018/ December 2019; ● Sales start/completion dates: March 2018/ February 2020; ● Number of phases: 2; Valuation ● Estimated costs after the valuation date: 649,005,000 RUB considerations ● Prices per sqm or parking unit: residential: 62,563 RUB; other – 25,000 RUB. ● Estimated income: 1,217,770,000 RUB (including 273,766,797 RUB for bargains before December 31, 2018); ● Discount Rate: 12.94% Valuation date December 31, 2018 Inspection date January 10, 2019 Market value, rubles 477,768,000

The descriptions of 3 properties located in Germany are attached in Appendix 6.

Appendix 3 Market overview

Office market overview of St. Petersburg

Highlights

 The area of commissioned office spaces totalled 280 thousand sq m, hitting the record mark over the last five years. The net take-up reached 109 thousand sq m.  The level of vacant office spaces in Class A and Class B business centres continued to decline in 2018 to reach 4.7%. Vacant supply decreased 1.5 times compared to 2017.  The breakdown of demand by industry has changed, with IT companies accounting for a decreasing share in the total volume of lease transactions and other tenants gaining traction. The average increase in rental rates for Class A and Class B offices did not exceed 1.5%.  2018 saw several sales of existing office facilities with an area totalling 74 thousand sq m.

Table 4. Key indicators of office market as of 2018

Key indicators. Dynamics* Class А Class В Total leasable area, thousand sq m 3,260 including, thousand sq m 1,069 2,191 New delivery in 2018, thousand sq m 280 including, thousand sq m 180 100 Total vacant stock, thousand sq m 152 including, thousand sq m 37 115 Vacancy rate at the end of 2018, % 3.4 ↓ 5.3 ↓ Asking rental rates in operating business centres, $/sq m/year, incl. OPEX, net of 198–351 107–320 VAT (18%) Average asset-by-asset change of the rent in rubles in operating business centres, ↑ 1.4 ↑ 1.5 % *Comparison with Q4 2017 results Source: Knight Frank St Petersburg Research, 2019

Source: Knight Frank St. Petersburg Research, 2019

Key events:

 The completion of the first phase of the Lakhta Center business facility which took six years to build was a landmark event of 2018. The facility is scheduled to launch in 2019.

 2018 was marked by a few building acquisitions with a view to redevelop them into high-end business centres. For example, Rostelecom has sold General Tutolmin’s mansion at 28/13 Bolshaya Morskaya St to Primorskoye Obyedineniye and a group of buildings at 20–26 Bolshaya Morskaya St with a total area of 16.4 thousand sq m were sold to Imperiya Holding.

 UK-based GHP Group put up for sale two Class А business centres, Trinity (GLA 27 thousand sq m) and Electro (GLA 15.7 thousand sq m), due to the end of its projects’ investment periods in Russia.

In 2019, the supply on the office real estate market is expected to grow by 120 thousand sq m. Despite this, we expect the high-quality vacant supply to continue to decline, especially for Class A properties. Most probably, this will result in a moderate increase in rental rates. High demand for quality offices is driven by professional owners’ interest in renovation of their facilities and revision of outdated concepts. We believe that this can be a strong growth point within a year or two..

Supply

As at the end of 2018, the total leasable area of quality office properties amounted to about 3.26 million sq m, of which 2.6 million sq m are available on the rental market. The total supply increased by 9.5%. The market was active mainly in the second half of the year when several large construction projects were completed. The total leasable area of spaces in quality business centres commissioned in 2018 was 280 thousand sq m, with only 37 thousand sq m (13% of total new spaces) entering the open market.

At the end of 2018, the average occupancy rate for new properties was 71%. Two business centres have made contracts for the entire leasable area. Wargaming leased a building in the Russkiye Samotsvety facility that was specially reconstructed for the company and Krasnoye & Beloye retail chain leased a building at 22 Fermskoye highway to establish its headquarters in the North-West Federal District. Besides, an IT company EPAM occupied 80% of the leasable area in the facility at 11/7 Levashovsky Ave.

At the end of 2018, the supply shortage increased, with 152 thousand sq m of spaces remaining vacant at the end of the period, and the average level of vacant spaces dropped to 4.7%, a 3.1 p. p. decrease compared to 2017. The vacant supply structure almost did not change, with 24% of the total vacant area being accounted for by spaces in Class A business centres.

Table 5. New delivery intended for lease in 2018

Leasable office area, Property Address Business district Class thousand sq m Levashovsky Bld 7, 11 Levashovsky Ave Petrogradsky B 10 Russkiye Samotsvety (Mebel' Hall) Litera E, 8 Carl Faberge Sq Eastern B 7 Business Сentre na Fermskom, 22 22 Fermskoe Hwy North-Western B 4.9 Dom Сarla Zadlera 25 8th line V.O. Vasileostrovsky-1 B 4.4 Source: Knight Frank St Petersburg Research, 2019

Demand

The total area of office spaces leased in 2018 was 136 thousand sq m. The amount of transactions increased by 13% from that in 2017. In 2018, most of demand came from tenants engaged in the IT and telecommunications sectors, whose share in lease transactions returned to the level of 2016 and reached 28%, which is a 26 p. p. drop compared to the record level of 2017 (in absolute terms, the area of spaces rented by IT companies decreased by 41%). The share of the oil and gas sector was 18%, mostly remaining at the level of 2017 (+1 p. p. compared to the end of 2017) on account of few large transactions ranging from 2.9 to 9.5 thousand sq m of spaces.

It should also be emphasized that a shift in the structure of transactions toward higher shares of tenants from other sectors that began to show in the first half of 2018 continued, and by the end of 2018, the share of other tenants in lease transactions was 55%, which is more than twice the level of 2017. As at the end of 2018, the largest growth was in the share of spaces occupied by construction and engineering companies (+6 p. p.) and companies from the financial and banking sectors (+5 p. p.). The largest lease transactions in quality business centres are shown in the Table below.

Chart 1. Demand structure depending on tenant`s profile in 2018

Source: Knight Frank St Petersburg, 2019

Table 6. Key lease transactions by tenant`s profile

Leased office Tenant Property Address Class Business district area, thousand sq m IT/Telecommunication EPAM Levashovsky Bld 7, 11 Levashovsky Ave B Petrogradsky 7.9 Litera D, Bld 11, 3 Embankments with Speech Technology Center Nevka B 3.2 Gelsingforsskaya St views MTS Senator 15 Chapaeva St A Petrogradsky 2.8 Oil/Gas/Raw materials Gazprom Neft / Gazprom Neft 74 Embankment of the Kollegiya A Central-1 9.5 Subdivision Moika river 74 Embankment of the Gazprom Neft Subdivision Kollegiya A Central-1 7.5 Moika river Litera a, Bld 2, 85 Lahtinsky Gazprom Aura A Outside area 3.2 Ave Other tenants Sberbank Office L27 Litera A, 27 Lvovskaya St B Eastern 7.2 Cambridge International Primorsky Litera A, 11 Mebelnaya St B North-Western 5.2 School dvorec Krasnoye & Beloye Fermskoye 22 22 Fermskoye Hwy B North-Western 4.7 Parashyutnaya NISSAN Manufacturing Rus 39 Parashyutnaya St B North-Western 4.1 39 YIT Primium Bld 1, 54 Primorsky Ave A North-Western 3.1

Source: Knight Frank St Petersburg, 2019

As for the geographic distribution of demand in 2018, it was rather even compared to 2017, with three business districts leading in terms of the area of occupied spaces. These are Petrogradsky (19.4%), Central-1 (18.7%) and North-West (16%). The latter showed the most notable increase in the share of occupied spaces (+15 p. p.). At the same time, the take-up rate has remained stable in the North-West location for the second consecutive year (17% in 2017–2018). This may suggest that that a new business activity area in St. Petersburg is gradually beginning to take shape. On the contrary, as at the end of 2018, the largest decrease in leased spaces (-31 p. p.) was registered in the Moskovsky prospect location due to a decrease in supply of properties that are interesting to tenants..

Chart 2. Distribution of business districts by volume of leased office space in 2018

*Excl. confidential transactions

Source: Knight Frank St Petersburg, 2019

The total area of office buildings sold in 2018 is 74 thousand sq m. Remarkably, several transactions in Class B properties with an area of 1 to 4 thousand sq m were made to cater for the companies’ own needs. Larger facilities were sold for investment purposes, with the largest being the Sinop Class A business centre with a total area of 20 thousand sq m.

It should be noted that despite the high demand from tenants, the total net take-up rate decreased in 2018. Due to the shortage of premises and the minimal supply of offices to the vacant market during 2018, in total 109 thousand sq m have been taken up, which is comparable with the market performance in 2013. The amount of taken up office spaces decreased by 29% if compared to the end of 2017, with Class B offices being the major take-up target (80% of the total amount). Petrogradsky was the most popular business district, accounting for 23% of the total amount of net take-up.

Chart 3. Dynamics of take-up volume by classes

Source: Knight Frank St Petersburg, 2018

Commercial terms

At the end of 2018, the average-weighted rental rates showed an upward trend. For Class A business centres, this figure increased by 6.7%, and for Class B offices, the rate increased by 0.5% (in rubles) compared to the end of year 2017. If taken on a property-basis, an annual increase in rates for vacant supply was 1.4% for Class A properties and 1.5% for Class B properties (in rubles). The average-weighted rate was 298 $/sq m/year for Class A properties, and 180 $/sq m/year for Class B properties (incl. OPEX, net of VAT). It should be noted that in some cases the offer prices for Class A offices in premium locations were at the level of 412 $/sq m/year. The average price to rent a car-space was RUB 4.9 thousand per month for a space at an outdoor parking lot and RUB 8.2 thousand per month for a space in an underground garage.

Table 7. Delivery, vacancies and rates by business districts

Average rental Average rental rates, Vacancy volume, sq rates, Business district Delivery volume, sq m* $/sq m/ year, Class B m $/sq m/ year Class ** A ** Moskovsky prospect 464,155 20,185 277 191 Embankments with views 346,823 9,070 185 Petrogradsky 341,209 11,146 240 159 Central-2 266,910 23,843 277 235 North-Western 216,084 8,856 201 179 Central-1 171,907 13,281 388 299 Eastern 167,592 20,943 157

Average rental Average rental rates, Vacancy volume, sq rates, Business district Delivery volume, sq m* $/sq m/ year, Class B m $/sq m/ year Class ** A ** Obvodny 167,564 22,428 251 165 South-Eastern 127,015 3,492 171 Vasileostrovsky-1 109,430 6,104 172 180 Vasileostrovsky-2 78,670 3,956 199 140 Admiralteisky 76,589 3,432 305 162 North-Eastern 49,881 3,921 141 South-Western 31,933 0,660 157 Outside area 31,283 0,871 165

Chart 4. Ratio of vacancy rate to average asking rental rates*

$/sq m/year 600 35%

500 30%

25% 400 20% 300 15% 200 10%

100 5%

0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rental rate, Class A Rental rate, Class B Vacancy rate, Class A Vacancy rate, Class B

*Incl. OPEX, net of VAT

Source: Knight Frank St Petersburg, 2018

Forecast

In 2019, the downward trend in supply of quality vacant spaces will continue on the market, especially for Class A offices. 16 office centres with a total leasable area of 117 thousand sq m are under construction or reconstruction. These are designed for lease and are scheduled to be put into operation in 2019. Unless developers reschedule their project completion dates, the following projects (mainly in Class B) will be launched on the market: an office centre in Zanevsky Kaskad-4, Stenbock at Lakhtinsky Ave, Ligovsky 266 and Atlas City in Moscow District, and others. Within a year or two, the market of quality offices will get new supply from Class C renovation projects. Rental rates are likely to increase on a moderate scale, as developers are not in a hurry to implement their current projects.

Map 1. Map of the office real estate development zones

Source: Knight Frank St Petersburg, 2018

Rival projects in the proximate site neighborhood. Analysis of competitive landscape changing perspectives. Kazanskaya Street

Table 8. The list of existing competitors in the zone of influence of the property

№ on The total area, Leasable area, Property Name Address Class map sqm sqm 1 Au Pont Rouge 75-79, Moyki river Emb A 15,000 9280 2 Au Pont Rouge (2 phase) 73, Moyki river Emb A 5598 4199 3 Au Pont Rouge (3 phase) 75-79, Moyki river Emb A 2303 1957 4 Bolloev Center 4, Grivcova lane A 9040 8150 5 White night 23, Malaja Morskaja St B 7333 5500 6 Atrium 1/25, Kazanskaja St B 5300 4240 7 NOVO-ISAAKIEVSKIJ 24, Jakubovicha B 3900 3198 8 Admiralty House 3, Konnogvardejskij St B 2500 2000 9 Lenizdat 59, Fontanki river Emb C 12,800 9600 10 Na Sennoy 14/35, Spasskij lane C 11,000 8250 11 Trezubec / Mir 4А, Efimova St C 9000 8000 12 Kazanskij 7, Kazanskaja St C 8335 6251 13 Mariinskij 58, Moyki river Emb C 6133 4600 14 Alva 8, Apraksin lane C 2919 2296

Source: Knight Frank St Petersburg, 2017

Office centers in the zone of the competitive environment are presented in the map below.

Map 2. The existing competitors in the zone of influence

Source: Knight Frank St Petersburg, 2017

Rival projects in the proximate site neighborhood. Analysis of competitive landscape changing perspectives. Paradny Kvartal

Table 9. The list of existing competitors in the zone of influence of the property

№ on The total area, Leasable area, Property Name Address Class map sqm sqm Nevskaja Ratusha 1 11, Degtjarnyj lane A 27 182 23 423 (building 2) Nevskaja Ratusha 2 11, Degtjarnyj lane A 18 300 15 234 (building 3) 3 Sinop 22, Sinopskaja Emb A 21 192 12 020 4 Preobrazhenskij dvor 26, Litejnyj Ave A 15 000 11 500 5 Grecheskij 13-15, Ligovskij Ave A 4 500 3 400 6 Trubeckoj 9, Paradnaja St A 5 075 3 318 7 Orlov 7, Paradnaja St A 4 877 3 184 8 Ligovskij, 6 6, Ligovskij Ave A 3 565 1 824 9 Zolotaja Shpalernaja 54, Shpalernaja St B 14 000 7 500 10 Goldex 36, Shpalernaja St B 11 009 7 400 11 Nekrasova, 14 14, Nekrasova St B 7 000 5 600

№ on The total area, Leasable area, Property Name Address Class map sqm sqm 12 Vosstanija, 18 18, Vosstanija St B 6 350 5 400 13 Kovenskij, 5 5, Kovenskij lane B 6 490 4 868 14 Bashkirov 52, Sinopskaja Emb B 4 600 3 800 15 B&D 50, Sinopskaja Emb B 3 500 2 800 16 NRK 3, Kaluzhskij lane B 3 800 2 700 17 Kacus 8, Tverskaja St B 3 576 2 682 18 Chajkovskogo, 44 44, Chajkovskogo St B 2 373 1 898 19 Novgorodskaja,13 13, Novgorodskaja Ave B 2 551 1 855 20 Sinopskaja 68-70 68-70, Sinopskaja Emb B 1 584 1 584 21 Moiseenko 24 24, Moiseenko Ave B 1 512 1 210

Source: Knight Frank St Petersburg, 2017

Office centers in the zone of the competitive environment are presented in the map below.

Map 3. The existing competitors in the zone of influence

Source: Knight Frank St Petersburg, 2017

Office market overview of Moscow

Executive summary

 The volume of new delivery of office centers amounted to 125,000 sq m in 2018, which is the market low for the past 10 years.

 As of 2018, the vacancy rate reached 12.5% in Class A offices and 9.3% in Class В offices, which amounted to 1.66 million sq m in total.

 The average weighted asking rent rates increased by 10% to 25,204 rub./sq m/year in Class A and by 5.6% to 14,867 rub./sq m/year in Class B, over 2018.

Table 10. Key indicators of office market as of 2017 Q3

* *Compared to Q4 2017 ** Excluding operational expenses, utility bills and VAT (18%). OPEX rate does not consider change related to property tax rate increase Source: Knight Frank Research, 2019

Supply

As of 2018, the total stock of quality office premises of Moscow amounted to 16.4 million sq m, 25.7% of which refer to Class A and 74.3% to Class B.

2018 recorded the lowest new delivery figures for quality office spaces since 2009. As of 2018, 125,000 sq m were delivered to the market, which is 3.3 times lower than last year's figure. Most of the properties with the cumulative area exceeding 100,000 sq m that had been announced to be delivered in 2018 were never delivered, with their deliveries being rescheduled for 2019.

After 2014, a lot of developers preferred projects with a small office component often redesigning the announced office spaces into apartments. But 2018 has seen the projects with an office component amounting to 100,000 sq m in area, for instance Grand Tower Business Center in Moscow City business district.

Against the backdrop of strong demand, the low delivery volume of quality offices had a positive effect on declining vacancy rate. It went down by 4.6 percentage points for Class A properties throughout Moscow as compared to Q4 2017 all the way to 12.5% or 0.53 million sq m. And it decreased by 2.2 percentage points to 9.3% or 1.13 million sq m for Class В offices.

Chart 5. Class A and B new delivery volume dynamics

Source: Knight Frank Research, 2019

Chart 6. The net take-up and vacancy rate dynamics

Source: Knight Frank Research, 2019

Map 4. Key office projects delivered in 2018

Source: Knight Frank Research, 2019

In 2018, the most striking changes of Class A vacancy rates among all Moscow business districts took place as follows:

 Due to a sizeable transaction with Arbat 1 Business Center, about 18,500 sq m of office premises went off the market in the west part of the Garden Ring. The vacancy rate in this location is currently 2.8% or 2,500 sq m.  Thanks to the transactions with Lotos Business Center and ICube Business Center, the vacancy rate in the southwest of Moscow between the Third Transportation Ring and the Moscow Ring Road went down by 20 percentage points to 9,300 sq m or 7.3%.

 Despite the delivery of about 27,000 sq m of quality offices in Almatea Business Center in 2018, the vacancy rate in the western part of Moscow around the Moscow Ring Road declined by 10 percentage points to 7.2% or 18,200 sq m over a year due to the sale of Pallau RB Business Center and a number of smaller transactions.

The most significant changes of vacancy rate in Class В offices throughout Moscow over 2018 were reported as follows:

 Because of the transactions with Alekseyevskaya Bashnya, Savyolovskiy City, and Faktoriya business centers, the vacancy rate in the north of Moscow between the Third Transportation Ring and the Moscow Ring Road decreased by six percentage points to 35,000 sq m or 5.6%.  Several transactions with Krasnoselskiy Business Center and Lefort Business Center in the east of Moscow in between the Third Transportation Ring and the Moscow Ring Road lead to the vacancy rate in Class В offices declining by nine percentage points to 11.2% or 22,600 sq m.  As a result of a largescale transaction with 'Efremova, 10' Business Center in the west of the Garden Ring in Khamovniki district, the vacancy rate in the location dropped by seven percentage points to 4% or 9,900 sq m.

As of 2018, some business districts of Moscow experienced a lack of quality office premises. This can be attributed to such locations as Paveletsky business district (the vacancy rate in Class A is 6%, in Class В - 1%), and the district in the north of the Garden Ring (the vacancy rate in Class A offices is 5%, in Class В offices - 4%). Thus, when seeing the backlog of demand along with the lack of supply, multiple experienced developers were inspired to search for new sites for constructing offices in most popular locations.

About 450,000 sq m are expected to be delivered in 2019, about half or 230,000 sq m of which are Class A offices. Around 220,000 sq m of Class В offices are planned to be delivered over the same period. Thus, the growth of new quality offices construction in 2019 is forecast to exceed the figures of 2018 by 3.5 times.

Demand

As of 2018, the cumulative trading volume amounted to 787,000 sq m. The total net take-up of Class A and В offices declined insignificantly as compared to 2017 and amounted to 604,000 sq m.

The Telecom/Media/Technology companies were leading the way by the volume of transactions in 2018. Their share amounted to 19% of all transactions. Manufacturers are as well engaged into the deals with office property of Moscow, with their share of all transactions amounting to 13%.

Co-workings are becoming a new tenant type that is winning ground and has already closed an array of sizeable rent deals. There have been several major office rent deals in 2018. First of all, it is worth singling out WeWork, the international co-working operator, that came to the Moscow market and signed three

transactions with the cumulative area of over 13,000 sq m.

As of 2018, 73% of all deals with quality office spaces were signed outside the Garden Ring, which is similar to the figure of 2017.

The business districts located close to the Third Transportation Ring remain in high demand. Thus, 35% of all new rent deals in 2018 refer to the districts around the Third Transportation Ring. It is due to the great transport accessibility of these districts provided by the Moscow Central Circle and Bolshaya Koltsevaya line, the stations of which have been opening their doors one by one throughout 2018.

As before, the districts outside the Moscow Ring Road and the business district inside the Boulevard Ring report modest demand. Thus, each of these districts' share of all new rent deals is less than 10%. The share of rent renewals has also dropped from 8% to 2% in the business centers within the Boulevard Ring in 2018. The complicated accessibility by car and the appreciation of parking make tenants consider alternative districts for locating their offices.

As of Q1-Q4 2018, the structure of deals by size hardly changed as compared to 2017. The demand for office blocks of 500 to 1,000 sq m in area grew by two percentage points. The number of deals with the area varying from 5,000 to 10,000 sq m also went up by two percentage points. The growth of the number of transactions with the area 5,000 through to 10,000 sq m affected the average deal area, which amounted to 2,050 sq m in 2018, and that is 5% higher than the average deal area in 2017.

Chart 7. Distribution of leased office space by sector

Source: Knight Frank Research, 2019

Chart 8. Distribution of transactions by type and location

Source: Knight Frank Research, 2019

Chart 9. Distribution of leased office space by location

Source: Knight Frank Research, 2019

Table 11. Key lease and purchase transactions closed in 2016

Source: Knight Frank Research, 2018

Chart 10. Distribution of leased office units by size

Source: Knight Frank Research, 2019

Commercial terms

The growth of rent rates that started in 2017 continued throughout 2018. By the end of the year, the average weighted asking rent rate increased by 10% to 25,204 rub./sq m/year triple net for Class A offices and by 5.6% to 14,867 rub./sq m/year triple net for Class В offices. The positive rent rate movements are primarily due to the low pace of new delivery as well as the strong demand for quality office premises. Meanwhile, the growth of the average weighted asking rent rates is due to both affordable office blocks going off the market as well as the increasing of rent rates on the part of numerous owners such as Enka, 01 Properties, Capital Group, etc.

The most significant changes of the average weighted rent rate in Class A offices took place in the following business districts of Moscow in 2018 as compared with 2017:

 The average weighted rent rate in the north of the Garden Ring rose by 38% to 31,144 rub./sq m/year. There was an increase in rent rates in Ducat III Business Center, Sadovaya Plaza and Ermitazh Plaza.  The rate in Moscow City business district went up by 25% to 36,557 rub./sq m/year thanks to the high- level demand for the location and the decrease in the vacancy rates as well as the growth of the rent rates in Око Business Center and Embankment Tower Business Center.  A 24% increase of the rent rate to 32,936 rub./sq m/year was reported for Paveletsky business district due to the rise in the rent rates in Paveletskaya Plaza Business Center and Rosso Riva Business Center as well as due to the affordable blocks of Central City Tower Business Center having gone off the market.

The most striking changes in the rent rates for Class В offices happened in the following locations:

 The average weighted rent rate rose by 12% to 14,859 rub./sq m/year in Tulsky business district due to the growth in rent rates in Danilovskaya Manufaktura business district as well as the blocks of Ina House Business Center having come to the market.  A 9% rise in the average weighted rent rate to 21,207 rub./sq m/year was recorded for Belorusskiy business district thanks to the rent rate growth in Ducat II and Severnoye Siyaniye business centers and due to the liquid premises of Brigantina Hall Business Center and Monarkh Business Center having gone off the market.

Chart 11. Average weighted asking rental rates for Class A and B offices, RUB/sq m/year

Source: Knight Frank Research, 2019

Map 5. Moscow submarket data. Average weighed rent

Source: Knight Frank Research, 2019

No particular changes in other commercial terms of lease contracts were noted. The companies remain interested in signing lease contracts for the period of five to seven years, with an early termination possibility.

The indexation of rent rates in most contracts is linked to the consumer price index, but it remains subject to negotiating, since both the tenants and the owners of business centers realize that the rent rates and the inflation rate might grow over the five-year period.

When negotiating, landlords differentiate clients quite substantially according to the leasable area, company name, or the significance of this particular company for the business center. While in the years 2015-2017, business center owners were happy to accommodate any tenant, right now landlords are prepared to discuss flexible rent conditions only with major and/or unique tenants for the particular business center.

The owners of business centers tend to avoid investing into finishing and pass the premises to tenants 'as is'. Apart from that, a lot of major tenants being in the middle of their search for new office space budget finishing expenses and are ready to consider the properties of any state.

The optimization of expenses forces a lot of tenants to consolidate their office premises in the same spot placing their office in a good location and creating a highly efficient environment for their employees. The example of such is Ozon.ru, who consolidated its premises and occupied Embankment Tower Business Center in Moscow City business district.

Forecast

2018 saw a record low volume of new deliveries. The time of low rent rates and unique affordable offers of office blocks has passed by. The office property market of Moscow is coming to a balance; some locations have already reported a lack of quality office spaces. 2019 is forecast to maintain the balance in the overall market, while specific districts will keep their status of most sought-after.

We expect to see a growth in the volume of new deliveries in 2019 at the level of about 450,000 sq m. Further on we forecast an increase in the pace of new quality office property deliveries in Moscow, provided that the demand remains strong.

The key properties that are expected to be delivered in 2019 are Iskra Park Business Center (GLA - 56,000 sq m), Vereyskaya Plaza IV Business Center (GLA - 50,000 sq m), Akademik Business Center (GLA - 47,000 sq m), 'Stratos. Skolkovo Innovation Center' Business Center (GLA - 30,000 sq m), Bolshevik Business Center, phase II (GLA - 25,000 sq m), and Smolensky Passage Business Center, phase II (GLA - 11,000 sq m).

Some developers who have properties in highly liquid locations have moved from a frozen stage to active construction. Alcon II and Alcon III business centers are among such. The construction of new office skyscrapers in Moscow City business district has also been announced.

A 2018 trend, when many developers started to come back to the quality office property market now seeing it as a secure and relatively profitable instrument of return on their investments after the long years of alternative investments into other sectors of the property market, is expected to maintain in 2019.

We also expect co-workings to continue their development in Moscow. The supply of chain co-workings is likely to grow by about 30,000-35,000 sq m. However, as the competition grows in this market and despite the strong demand for this type of office premises, a significant increase in rent rates is not expected. It may come up to 3- 5%, taking the rent rate for one working space in a chain co-working to 24,100 rubles per month, no VAT included, by the end of 2019.

In spite of the rise in new delivery volume, the vacancy rate will gradually decline by one to two percentage points annually. The net take-up will amount to 600,000- 650,000 sq m in 2019.

The average weighted rent rates for the office property market of Moscow will continue growing in 2019 by 3- 5% in average taking the average weighted asking rent rate to 26,500 rub./sq m/year for Class A offices and to 15,500 rub./sq m/year for Class В offices by the end of the year.

Map 6. Key office projects due to be commissioned in 2019

Source: Knight Frank Research, 2019

Office investment

The low volumes of new construction of quality office premises along with the strong demand resulted in the decrease in the volume of supply available for sale.

As of 2018, the vacancy rate for Class A offices went down by 4.6 percentage points to 12.5% and for Class В offices - by 2.2 percentage points to 9.3%. At the same time, the rent rates for Class A increased by 10% and for Class В – by 5.6%. Only 94,000 sq m of quality office premises are forecast to be delivered to the sales market by the end of 2019.

Inspired with the above-mentioned trends, multiple major companies as well as private investors consider investing into office property.

Over 2018, the office market has become the most attractive property market for investing; its share of all investment transactions has amounted to 47% and the figure showed a 23% increase as compared with 2017.

Thus, the cap rates for office spaces purchased for rental businesses are 10% for Class A offices and 12% for Class В offices.

Among the supply of office properties for sale currently under construction, the buyers now prefer office spaces of 100-400 sq m in area located in Class A business centers.

Apart from end user purchases, there is a rise in demand on the part of private investors. The most popular request is for 100 to 300 million ruble investments into a ready-to-go rental business in a new Class A or Class B+ office building or purchasing office spaces for further lease in order to receive regular income.

The trading volume of office spaces has been rising during the past two years. As of 2018, the share of sale transactions amounted to 12% of all deals or 84,200 sq m.

The prices for quality office spaces that were listed on the Moscow market for sale in 2018 have grown as compared to the end of 2017. Thus, Class A office spaces have recorded an 6% increase.

The average weighted prices amounted to 234,290 rubles per sq m for Class A office blocks, 150,440 rubles per sq m for Class B, and 226,386 rubles per sq m for mansions. The average weighted price for general purpose premises on the ground floors of residential complexes amounted to 256,818 rubles per sq m.

Table 12. Moscow submarket data. Average weighted sale price*

Source: Knight Frank Research, 2019

Table 13. Moscow submarket data. Key indicators

* Excluding operational expenses, utility bills and VAT (18%)

Source: Knight Frank Research, 2018

Rival projects in the site immediate neighborhood

Table 14. The list of existing competitors in the zone of influence of the property located at 9, Sadovnicheskaya St., Moscow

Name Comparable 1 Comparable 2 Comparable 3 Address Moscow, Lubyanskiy proezd, 15/2 Moscow, St. Arbat, 1 Moscow, St. Arbat, 10 Source of https://www.cian.ru/sale/commercial/188769085/ https://www.cian.ru/sale/commercial/199295051/ https://www.cian.ru/sale/commercial/199296294/ information Asking price, 3,718,932,000 12,798,155,085 5,974,576,271 rubles, incl. VAT Asking price, rubles per sqm, 286,072 459,919 254,237 incl. VAT

Table 15. The list of existing competitors in the zone of influence of the property located at 22, Avtozavodskaya street, Moscow

Name Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable5 Moscow, 4-y Roschinskiy Moscow, Ordzhonikidze St., Moscow, Paveletskaya nab., Moscow, Kashirskoe hgwy, Moscow, 2-ya Magistral'naya Address proezd, 19 11, bld 10 8, bld 6 3K2, bld 16 St., 8A, bld 1 Source of information https://www.cian.ru/sale/com https://www.cian.ru/sale/com https://www.cian.ru/sale/com https://www.cian.ru/sale/com https://www.cian.ru/sale/com mercial/199554222/ mercial/192911862/ mercial/199293190/ mercial/193229397/ mercial/199294849/ Asking price, rubles, incl. VAT 1,527,559,322 847,457,627 1,133,262,712 1,364,406,780 1,161,016,949 Asking price, rubles per sqm, 142,576 160,351 105,932 118,644 105,749 incl. VAT

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 205

Table 16. The list of existing competitors in the zone of influence of the property located at 16, Tverskoy bulvar, Moscow

Name Comparable 1 Comparable 2 Comparable 3 Comparable 4 Moscow, Malyy Kislovskiy lane, 9 Address Moscow, Tverskaya St., 9S7 Moscow, Volhonka St Moscow, Hlynovskiy tup., 3 bld 1 bld 1 https://www.avito.ru/moskva/kom https://www.cian.ru/sale/commerci https://www.cian.ru/sale/commerci mercheskaya_nedvizhimost/pomesc https://www.cian.ru/sale/commerci Source of information al/199300241/ al/194991453/ henie_svobodnogo_naznacheniya_1 al/199327604/ 485_m_1060259322 Asking price, rubles, incl. VAT 548,560,678 1,600,000,000 593,220,339 550,847,458 Asking price, rubles per sqm, incl. 377,797 282,696 399,475 389,017 VAT

Table 17. The list of existing competitors in the zone of influence of the property located at 16, Davydkovskaya street, Moscow

Name Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable5 Moscow, Mozhayskoe hgwy, Moscow, Malaya Filevskaya Moscow, rayon Ramenki, Moscow, Pivchenkova St., Moscow, rayon Ramenki, Address 36 St., 40 Minskaya St., 1GK2 1K1 Minskaya St, 1GK1 https://www.cian.ru/sale/com https://www.cian.ru/sale/com https://www.cian.ru/sale/com https://www.cian.ru/sale/com https://www.cian.ru/sale/com Source of information mercial/199448116/ mercial/195229190/ mercial/184859609/ mercial/199467313/ mercial/988256/ Asking price, rubles, incl. VAT 40,000,000 169,491,525 28,000,000 19,000,000 22,033,898 Asking price, rubles per sqm, 200,000 245,640 186,667 186,275 216,019 incl. VAT

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 206

Residential market overview of St. Petersburg and Leningradskaya Oblast’

In location description the following concepts and terms are used:

1. The city: the following administrative districts of St Petersburg included: Admiralteisky, Vasileostrovsky, Vyborgsky, Kalininsky, Kirovsky, Krasnogvardeisky, Krasnoselsky, Moskovsky, Nevsky, Petrogradsky, Primorsky, Frunzensky, Central (Tsentralny). 2. ADS: suburban administrative districts subordinate to St. Petersburg: Kolpinsky, Kronshtadtsky, Kurortny (Resort), Petrodvortsovy, Pushkinsky. 3. Suburbs: settlements of Leningradskaya Oblast’ (LO) adjacent to St. Petersburg city borderline:

Vsevolozhsky: Bugry, Vartemyagi, Vsevolozhsk, Zanevka, Kal’tino, Koltushy, Kudrovo, Luppolovo, Mistolovo, Murino, Novoye Devyatkino, Romanovka, Sverdlova, Sertolovo, Toksovo, Scheglovo, Yukki, Yanino-1, Yanino-2

Gatchinsky: Taitsy

Kirovsky: Otradnoye

Lomonosovsky: Gorbunki, Lagolovo, Nizino, Novogorelovo, Novosel’ye, Russko-Vysotskoye, Uzigonty

Tosnensky: Nikol’skoye, Fedorovskoye, Tel’mana

Supply11

Currently, the total area of objects on sale in the residential real estate market of St. Petersburg and surrounding suburbs is 11.3 million sq m, 3% lower than in 2017. The reduction in housing volume occurred mainly due to objects located in suburbs. Their market share has reduced by 2 p.p. in the last year.

11 the amount of apartments available to buyers at the moment

Chart 12. Total area of housing under construction dynamics in St.Petersburg and the suburbs

Source: Knight Frank St Petersburg, 2018

The change in the market structure by locations affected the distribution of housing under construction by classes. The share of C-class facilities located in the suburban area declined by 4 percentage points during the year, while the share of C-class facilities under construction in St. Petersburg increased by 3 percentage points. The share of B-class objects remained at 2017 level, the share of elite properties has slightly increased (by 1 percentage point) due to the two new residential complexes in Petrogradsky district, which started sales.

Chart 13. Supply structure by class, %

Source: Knight Frank St Petersburg, 2018

By the end of 2018, available supply in the residential property market of St. Petersburg amounted to 2.7 million sq m and 1.7 million sq m in the suburbs. On the whole, in the market the supply dynamics were negative mainly due to high sales figures.

Chart 14. The available supply dynamics by class, th. sqm

million sq m Class C Suburb Class C Class B Class A 5

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Knight Frank St Petersburg, 2018

The total area of apartments in new facilities put on sale during 2018 in St. Petersburg and the surrounding suburbs amounted to 4.8 million sqm, which exceeds 2017 by 12,5%. A significant increase in new supply was recorded in class B and C facilities - by 35% and 32%, respectively. In suburbs, the total area of objects in the market decreased by 15% over the year.

Chart 15. New objects entering the market by class, th. sqm

Source: Knight Frank St Petersburg, 2018

Share of the main ten market players for the year decreased from 45% to 43%. Reduction in the share of the main ten players was due to an increase in the share of developers making up the second ten of large developers' rating of St. Petersburg and its suburbs.

Chart 16. Supply volume of housing under construction by developer, %

Source: Knight Frank St Petersburg, 2018

The A class main supply is presented by apartments with 2 and 3 bedrooms - they constitute about 64% of the flatography. Their share decreased by 6 pp over the year, due to the growth in the share of 4-bedroom apartments. Average size of apartments in luxury properties has decreased in all apartment types, due to the release of new properties with more compact layouts.

The main share in the flatography of B-class objects is apartments with 1 and 2 bedrooms, which account for 68% of the total apartments number. Over the year, the share of 2-bedroom apartments has increased by 1 pp due to a reduction in the 1-bedroom apartments share. The average area of this class studios has decreased by 5 sq m over the year. At the same time, the average area of apartments with 3 or more bedrooms, on the contrary, has increased.

In the projects of C-class within the city, 44% of the supply is in one-room apartments. The share of studios has decreased by 1 pp for the year in favor of increasing the 2-bedroom apartments share.

In the C-class facilities of suburban locations, the share of studios in the objects put on sale has significantly decreased by 6 pp, while the share of apartments with 1, 2 and 3 bedrooms has increased by 1, 4 and 1 p. respectively.

The average apartment area in objects of mass demand remained at the same level.

Chart 17. Typical flatography by class

Studio 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 5 and more bedrooms Source: Knight Frank St Petersburg, 2018

In the mass segment the absolute leader is Vsevolozhsky district of the region by the number of offers, where 3.2 million sqm of housing is being built. The number of housing units in the district has decreased by 13% compared to 2016. Among the urban areas Primorsky and Nevsky districts are still leading.

Chart 18. Average apartment areas in standard projects by class

Studio 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 5 and more bedrooms Source: Knight Frank St Petersburg, 2018

Demand

By the end of 2018, 4.93 million sqm of housing was sold in St. Petersburg and its suburbs, which is 18% higher than the same period in 2017. The highest rate of positive sales dynamics was found in С- class residential buildings located in the long-ago inhabited areas of St. Petersburg - about 57% per year. At the same time, the demand for C-class homes in suburban locations continued the negative trend, which began in 2016. As a result, sales in these areas have decreased by 7% for the year. In B-

class objects, the demand increased by 2% for the year. In the high-end market, sales figures are comparable to 2017.

Chart 19. Demand dynamics by class, million sq m

Source: Knight Frank St Petersburg, 2018

In the structure of demand by locations, 60% of the realized apartments area accounted for objects in St. Petersburg, only about 40% of housing was sold in the suburbs.

The demand by apartment types in 2018 was as follows. In A-class facilities, the bulk of sales were apartments with 3 bedrooms - 44%, the share of sold apartments with 2 bedrooms increased from 18% to 25% over the year.

In B-class facilities, in 2018, the share of apartments sold with 1 and 2 bedrooms decreased by 4 pp and 2 pp, respectively, while the share of 3-bedroom apartments sold increased by 7 pp, and studios - by 1 pp.

Chart 20. Sales structure by apartment type in A and B classes

Source: Knight Frank St Petersburg, 2018

Chart 21. Sales structure by apartment type in C class

Source: Knight Frank St Petersburg, 2018

Commercial Terms

By the end of 2018, the average prices in the primary residential property market were:

 in А class - 342.6 th. RUR/sq m,  in В class – 167.4 th. RUR/sq m,  in С class – 110.6 th. RUR/sq m,  in С class in the suburbs – 70.9 th. RUR/sq m.

The most noticeable increase in the average price occurred for C class objects: + 10% per year in urban facilities and + 11% in suburban ones. In the B-class facilities, the positive dynamics of the average price over the year was 5%. In A class objects, the average price indicator has decreased mainly due to a change in the supply structure, and to the sale of houses at the initial stage of construction, at prices usually lower than in commissioned objects.

Chart 22. Average price dynamics by class, rub./sqm

Source: Knight Frank St Petersburg, 2018

Main conclusions and trends in the residential market of Saint Petersburg and its suburbs:

 In connection with the upcoming changes in the legislation, the output volume of new projects / project phases to the market in 2018 was the maximum over the last 3 years.  The shift in demand towards urban projects continued; the volume of construction in suburban areas has decreased markedly.  Among the high-class projects in 2018, new residential complexes with eminent architecture and thought-out layouts appeared in the market.  Replenishment of supply in the segment of mass demand occurred mainly at the expense of new projects, developing on sites of former industrial areas, as well as in areas near the borders between the city and Leningrad Oblast.  2018 showed the highest level of demand after peak 2014. The bulk of sales were C class facilities located in urban areas. Popularity of suburbs continued to decline among buyers of newly-built apartments.  In anticipation of the transition to escrow accounts, the price level for most of the objects increased. The highest dynamics of average prices occurred in objects of mass demands.

Rival projects in the immediate neighborhood (residential premises or flats). Analysis of competitive environment changing perspectives

A number of analyzed objects have a single competitive zone, therefore for the purposes of this work they were grouped according to the following competitive locations:

Location Object LSR № Smolniy Park 1 Russky Dom Verona Neva Art, Neva Residence 2 Neva Haus Neva Art, Neva Residence Osobnyak Martynova emb 3 Europa City 4 Tri Vetra 5 NEO 6 NEO PARK 7 Morskoy Fasad 8 Riviere Noire 9 Bogemiya 10 Yuzhnaya Aquatoriya Sofiya 11 Zvjezdny duet 12 Kalina-park Shuvalovsky 13 Zapovednaya 51 14 Tsivilizatsiya Novaya Okhta 15 Tsvetnoi Gorod 16 Rzhevka 17 Ruch'i

Location 1. Smolny Park, Russkiy Dom

Elite objects (segments A and A+) located in the prestigious zones of Central and Admiralteysky districts were selected as competing residential complexes.

The map of competition

Source: Knight Frank St Petersburg

There are 7 elite residential complexes with a total area of 54.7 thousand m² (396 units) In the competitive area, of which 2 objects are presented in apart-hotel format (Gollandiya and Monferran). Compared to 2017, in the competitive zone, sales in 1 facility were completed - “Konnogvardeisky Blvd. 13".

Table 1. Characteristics of the competing projects

Residential сomplex Address Developer Non- Class Deadlin Res. Numbe residen e area, sq r of tial m flats status Gollandiya Galernaya 40/ RGS + А Comple 7 376 102 Admiralteyskogo 15 Nedvizhimost ted Monferran Konnogvardeyskiy bul., Inteko + А+ Comple 11 806 96 d.5 ted Osobnyak Kusheleva- Kutuzova 24 Dar - А+ Comple 6 310 29 Bezborodko ted Art View House Moyki 102 Ohta Group - А+ Mar-19 3 748 24 Dvortsovaya sloboda Stremyannaya 15 Soyuzgenstroy - А Comple 3 824 32 ted Prioritet Voskresenskaya 32 Evrostroy - А+ Dec-20 5 059 40 Hovard Palace Zagorodnyy pr., d.19 Hovard - А+ Comple 16 617 73 ted

Source: Knight Frank St Petersburg

The closest competitors to the Subject Properties in terms of location are “Osobnyak Kusheleva-Bezborodko” and “Prioritet”..

There are no facilities comparable to the Subject Properties among elite complexes in the competitive area.

Of the future projects, 6 ones were announced in the competitive zone with a total living area of 150 thousand sq m. All projects are presented in aparthotel format. Dom Balle" and Cheval Court, which are now at the construction phase and preparing for the start of sales, are the closest to implementation.

Table 2. Perspective projects

Address Project Developer Non- Res. area, sq m residential status A.Nevskogo 8 - Kravt Invest + 3 573 Aptekarsky 6 - Intef + 4 564 Glinki 4 Dom Balle Megahaus + 6 033 Konyushennaya pl 2 Cheval Court PSN + 7 200 Marsovo pole 1A One Field of Mars Plaza Lotus Group + 24 000 Shpalernaya 56 - Vodokanal +/- 105 000

Source: Knight Frank St Petersburg

The average price level in the competitive zone is in the range from 206 to 740 thousand rubles / sq m.

The differentiation of prices in the competitive zone is largely due to the pricing policy of each developer, as well as to a number of individual object's features.

The average price for competing properties is 454 thousand RUR / sq m. The average price dynamics in the competitive zone was about 2% for the year.

Table 3. Average price, average rate of sales of the competition projects

Residential сomplex Finishing Av. price, Sold Parking, mln rub Commercial rub per sq units per premises: av. m quarter price, rub per sq m Gollandiya pre-finishing 205 967 4 not on sale not on sale Monferran without finishing 321 534 3 4,70 not on sale Osobnyak Kusheleva-Bezborodko different 671 745 1 3,51 300 000 Art View House pre-finishing 739 968 2 4,75 not on sale Dvortsovaya sloboda without finishing 273 452 1 not on sale not on sale Prioritet pre-finishing 483 333 0 not on sale not on sale Hovard Palace full 481 296 4 4,85 not on sale

Source: Knight Frank St Petersburg

Art View House the clubhouse is the most expensive object in the competitive area. The high price level is due to a large number of apartments facing the waterways, as well as with views at historical dominants in the object location (for example, at St. Isaac's Cathedral).

The minimum average price in the competitive zone is recorded in “Gollandiya” residential complex, where there were apartments with no good views out of the windows on sale.

Terms of implementation of elite residential complexes in the analyzed location are different and are due to certain parameters of the projects. Properties that have any disadvantages (in planning solutions, lack of parking, etc.) are sold slowly. On average, the sales rate of elite objects in the competitive area compared with 2017 has not changed and amounts to 2 apartments per quarter.

Location 2. Verona, Neva Art, Neva Residence, Neva Haus, Osobnyak Martynova emb

The competitors of the analyzed objects are elite residential complexes located in the western part of Petrogradsky district, and B class objects located on Petrovsky Island were also considered as properties competing indirectly.

A large proportion of the areas of competing sites are located on Petrovsky Island and Petrograd side. Over the year, the share of these locations in the elite housing supply increased from 41% to 59%, due to the two large residential complexes - Futurist (RBI) and Petrovskaya Dominanta (Etalon Group), which started sales.

The map of competition

Source: Knight Frank St Petersburg

In total, 17 residential complexes of A and B classes with the total area of 408 thousand sqm or 3.7 thousand apartments are on sale in the competitive area. About 60% of the residential area was commissioned. 14% of the area is presented in aparthotel format.

Table 4. Characteristics of the competing projects Residential сomplex Address Developer Non- Clas Deadlin Res. Numb residenti s e area, er of al status sq m flats AVATAR Remeslennaya 21 Stroitelniy trest + B Complet 8 942 105 ed Del Arte Sanatornaya 3 ProektStroyDom + А+ Complet 1 875 9 (Baltinvestbank) ed Dom na Pesochnoy Pesochnaya 18 York - А Complet 5 891 59 ed Esper Club Esperova 16/23 Evrostroy - А+ Mar-20 5 832 68 Familia Petrovskiy 20 RosStroyInvest - B+ Dec-21 20 233 819 Futurist Barochnaya 4a RBI - А Sep-22 21 199 293 Imperatorskiy Yaht- Martynova 92 Morskoy Yaht-Klub + А+ Complet 14 61 klub ed 050 Krestovskiy 12 Krestovskiy 12 Etika development + А Complet 3 333 25 ed Krestovskiy de luxe Dinamo 44 GPBI Development Severo- - А Complet 42 359 Zapada ed 756 Leontevskiy mys Zhdanovskaya 45 Leontevskiy mys - А Complet 57 392 ed 226 One Trinity Place Adm.Lazareva 22 GHP Group - А Jun-20 16 175 328 Ostrov Remeslennaya 2 Stroitelniy trest - B+ Complet 36 404 ed 156 Petrovskaya Petrovskaya kosa Etalon Group - А Dec-21 46 365 dominanta 7/2 833 Petrovskiy kvartal na Petrovskiy 26 Setl City - B+ Dec-19 48 632 vode 682 Privilegiya Vyazovaya 8 Evrostroy - А Complet 48 334 ed 432 Rezidentsiya na 1 Berezovaya 7A Ekoinvest + А+ Complet 3 468 17 Kamennom ed Royal Park Petrovskiy 2 Kortros + А Complet 26 298 ed 196

Source: Knight Frank St Petersburg

In the competitive area, 9 prospective projects were announced with an aggregate residential area of 114.8 thousand sq m, of which 53% is located on Petrovsky Island. The project on the Karpovka River emb. 31A has entered an active phase: the developer demolishes the existing building and prepares the project for sales start. The RBI project on Krestovsky Island is in a high stage of readiness for the start of sales.

Table 5. Perspective projects Non-residential Address Developer Res. area, sq m status Chapygina 5 LEGENDA - 3 000 Dinamo 2a Gazpromsocinvest - 3 801 Esperova 8 Yard + 5 000 Karpovki 31A Evrofinans - 33 543 Krestovsky 4 RBI - 2 775

Non-residential Address Developer Res. area, sq m status Petrovskaya kosa 1/2 Lenstroytrest - 21 210 Petrovskaya kosa 9 Ehkostroy + 30 000 Petrovsky 9 Leontevskiy mys - 10 000 Ryuhina 9 Megasport + 5 500

Source: Knight Frank St Petersburg

The average prices range in the competitive zone varies from 158 thousand RUR/ sq m to 1.39 million RUR / sq m. The highest prices are still in "Residence on Kamenny" club house and in "Del Arte" complex.

The minimum average price in a competitive area is in AVATAR, the aparthotel complex on Petrovsky Island.

The average price in the competitive area is 414 thousand RUR / sq m. At the same time, the indicator for relevant competing objects is 20% lower and amounts to 331 thousand RUR / sq m.

Table 6. Average price, average rate of sales of the competition projects Residential сomplex Finishing Av. price, Sold units per Parking, mln Commercial rub per sq quarter rub premises: av. m price, rub per sq m AVATAR pre-finishing 157 905 4 1,43 140 000 Del Arte without finishing 631 250 0 7,00 not on sale Dom na Pesochnoy without finishing 257 044 7 3,00 not on sale Esper Club without finishing 513 511 3 4,50 not on sale Familia without finishing 223 611 5 not on sale not on sale Futurist without finishing 252 655 23 not on sale not on sale Imperatorskiy Yaht-klub without finishing 788 929 2 8,05 not on sale Krestovskiy 12 without finishing 333 375 1 not on sale not on sale Krestovskiy de luxe without finishing 303 910 20 3,0 not on sale Leontevskiy mys without finishing 373 216 12 3,0 212 199 One Trinity Place full 487 421 13 not on sale not on sale Ostrov without finishing 178 641 24 2,04 156 185 Petrovskaya dominanta without finishing 201 296 16 not on sale not on sale Petrovskiy kvartal na vode without finishing 198 463 46 1,90 not on sale Privilegiya pre-finishing 402 988 14 3,98 not on sale Rezidentsiya na Kamennom different 1 394 000 1 not on sale not on sale Royal Park without finishing 340 902 8 2,87 180 000

Source: Knight Frank St Petersburg

From the point of view of sales volumes, the most successful elite objects of the competitive zone are Krestovsky de luxe and Futurist residential complexes, the average sales rate of which is more than 20 apartments per quarter. Within the limits of 12-16 apartments per quarter, are noted the sales rates in other large objects — Leontyevsky Mys, Petrovskaya Dominanta and Privilegiya. For all other objects, sales are scarce, 3 apartments per quarter on average.

In B class objects of indirect competition, the average sales rate is 20 apartments per quarter.

Location 3. Europa City

The competitors of the Property being analyzed are B-class residential complexes, located in Petrogradsky district. The analysis does not consider apartment hotels of an investment orientation - such properties are rarely able to compete with new projects due to the specifics of planning decisions, as well as to a different circle of buyers. B class objects located on the bank of the Neva opposite to the Property under study were considered indirect competitors.

The map of competition

Source: Knight Frank St Petersburg

Skandi Klubb (Bonava) and Botanica (“Etalon Group”) residential complexes are still the closest competitors of the analyzed Property. “Prityazheniye” (Setl City) territory development complex also went on sale in the zone of indirect competition in 2018.

2 small commissioned houses remained on sale in the eastern part of Petrogradsky district, in addition to the objects hereabove. The main volume of spaces is represented in objects located in the south-western part of Petrogradsky district and on Petrovsky Island.

The share of Petrogradsky district is the 2nd and is 17% in the general structure of class B supply.

In total, 13 objects with a total living area of 301.5 thousand sqm (4 thousand apartments) are on sale in the competitive zone.

Table 7. Characteristics of the competing projects Residential Phase/ Address Developer Non- Class Deadline Res. Numbe сomplex housing resid area, sq r of ential m flats statu s

Atlant Mira 36A Konnolahtinski - B Complete 4 075 57 y 55 d

Biografiya Pionerskaya 33 RBI - B Sep-20 10 925 134

Botanica Aptekarskiy 5 Etalon Group - B+ Dec-19 28 445 356

Dom na Zeleynoy B.Zelenina 34 Sadko-Siti - B+ Mar-19 7 360 92

Familia Housing 1 Petrovskiy 20 RosStroyInvest - B+ Dec-21 20 819 233

Fusion Krapivniy 4 Etalon Group - B Dec-19 9 555 110

GRANI B.Zelenina 24 Stroitelniy trest + B Complete 3 574 57 d

Ostrov Remeslennaya 2 Stroitelniy trest - B+ Complete 36 156 404 d

Petrogradets L.Tolstogo 8 Stroyimpuls - B+ Complete 4 232 38 d

Petrovskiy Kvartal Petrovskiy 26 Setl City - B+ Dec-19 48 682 632 na vode

Premer Palas Housing 4-2 Pionerskaya 50 L1 - B+ Complete 10 894 130 d

Premer Palas Housing 4-3 Pionerskaya 50 L1 - B+ Complete 11 497 148 d

Prityazhenie Housing 1,2 B.Sampsonievski Setl City - B Jun-21 30 371 476 y 66

Prityazhenie Housing 3 B.Sampsonievski Setl City - B Jun-21 14 514 236 y 66

Prityazhenie Housing 4 B.Sampsonievski Setl City - B Jun-21 15 213 220 y 66

Prityazhenie Housing 7 B.Sampsonievski Setl City - B Jun-21 7 150 173 y 66

Skandi Klubb Housing 31-39 Aptekarskiy 16 Bonava - B Complete 20 534 301 d

Skandi Klubb Housing 41-46 Aptekarskiy 16 Bonava - B Dec-20 17 583 283

Source: Knight Frank St Petersburg

30% of the area of the competitive zone was put into operation, another 30% were announced for commissioning during 2019.

9 prospective projects were announced in the competitive zone with an aggregate residential area of about 53.4 thousand sq m. The majority of projects are located in the southwestern part of Petrogradsky district.

Table 8. Perspective projects Non-residential Address Developer Res. area, sq m status

Chapygina 5 LEGENDA - 3 000

Dinamo 2a Gazpromsocinvest - 3 801

Esperova 8 Yard + 5 000

Karpovki 31A Evrofinans - 33 543

Krestovsky 4 RBI - 2 775

Petrovskaya kosa 1/2 Lenstroytrest - 21 210

Petrovskaya kosa 9 Ehkostroy + 30 000

Petrovsky 9 Leontevskiy mys - 10 000

Ryuhina 9 Megasport + 5 500

Source: Knight Frank St Petersburg

The average prices range in the competitive zone varies from 143 to 224 thousand RUR / sq m. The highest prices are recorded in Familia residential complex (RC). Minimum prices within the location are noted in one of the buildings of "Prityazhenie" complex of indirect competition.

The average price in the competitive area is 172 thousand RUR/ sq m. Compared to 2017, the average price increased by 3.6%.

Table 9. Average price, average rate of sales of the competition projects

Residential Phase/ Finishing Av. price, Sold Parking, mln Commercial сomplex housing rub per sq units rub premises: av. m per price, rub per quarter sq m Atlant without finishing 167 911 3 2,30 not on sale Biografiya without finishing 184 382 11 2,22 not on sale Botanica without finishing 185 093 32 2,04 185 184 Dom na without finishing 182 455 12 not on sale not on sale Zeleynoy Familia Housing 1 without finishing 223 611 5 not on sale not on sale

Residential Phase/ Finishing Av. price, Sold Parking, mln Commercial сomplex housing rub per sq units rub premises: av. m per price, rub per quarter sq m Fusion without finishing 189 266 12 not on sale 198 563 GRANI pre-finishing 153 752 6 2,00 130 000 Ostrov without finishing 178 641 24 2,04 156 185 Petrogradets pre-finishing 207 593 3 not on sale not on sale Petrovskiy without finishing 198 463 46 1,90 not on sale Kvartal na vode Premer Palas Housing 4-2 without finishing 149 753 3 not on sale 148 194 Premer Palas Housing 4-3 without finishing 158 293 3 not on sale not on sale Prityazhenie Housing 1,2 different 154 987 47 not on sale not on sale Prityazhenie Housing 3 different 145 825 32 not on sale not on sale Prityazhenie Housing 4 different 142 669 73 not on sale not on sale Prityazhenie Housing 7 different 145 147 65 not on sale not on sale Skandi Klubb Housing 31- pre-finishing 165 568 40 0,80 not on sale 39 Skandi Klubb Housing 41- pre-finishing 168 864 39 1,20 not on sale 46 Source: Knight Frank St Petersburg

The highest sales rates were recorded in “Prityazhenie” RC, the object of indirect competition (more than 200 apartments per quarter in total in all buildings), which is due to relatively low prices for the location close to the center and to the high popularity of the developer among customers.

Petrovsky Kvartal na Vode, Botanica and Skandi Klubb complexes (30-46 apartments per quarter) are being sold at a high pace in Petrogradsky district. For the remaining facilities, the average rate is 8 apartments per quarter.

The average sales rate in the competitive area is 25 apartments per quarter.

Location 4. Tri Vetra

Competitors to the analyzed Property are residential complexes (RC) located in the southern part of Primorsky District, along the Bolshaya Nevka River. Objects around "Komendantsky Prospect" and "Pionerskaya" metro stations were considered the indirect competitors.

The analysis does not consider apartment hotels of an investment orientation - such properties are rarely able to compete with new projects due to the specifics of planning decisions, as well as to a different circle of buyers.

The map of competition

Source: Knight Frank St Petersburg 7 residential complexes are on sale in the competitive zone. 2 objects (LIFE-Primorsky and Stockholm) have view characteristics similar to the analyzed Project. Phase 3 of LIFE-Primorsky Complex is the closest competitor to the Project.

The total living area of the objects on sale is 241.6 thousand sq m (4.4 thousand apartments). About 15% of area in the competitive zone is represented by the commissioned objects, the main volume is concentrated in objects planned for commissioning in 2020-22.

Table 10. Characteristics of the competing projects

Residential сomplex Phase/ Address Developer Class Deadline Res. Number housing area, sq of flats m

Artline v Primorskom Housing 2,4,5 Torfyanaya doroga 17 Setl City - C Jun-21 52 254

Aviator Savushkina 43 Praviy bereg - B Complet 2 839 ed

LIFE-Primorsky 3 phase Primorskiy 52 Pioner - C+ Jun-19 8 563

MASTER na Serebristyy 19 Master - C+ Complet 5 682 Serebristom 19 Development ed

Primorsky kvartal Housing Kolomyazhskiy 13 Megalit and Ohta - C+ Jun-19 42 000 33,34,35,36 Group

Primorsky kvartal Housing 37 Kolomyazhskiy 13 Megalit and Ohta - C+ Sep-20 16 826

Residential сomplex Phase/ Address Developer Class Deadline Res. Number housing area, sq of flats m

Group

Primorsky kvartal Housing 38 Kolomyazhskiy 13 Megalit and Ohta - C+ Sep-22 28 219 Group

Primorsky kvartal Housing 39 Kolomyazhskiy 13 Megalit and Ohta - C+ Sep-22 21 596 Group

Primorsky kvartal Housing 43 Kolomyazhskiy 13 Megalit and Ohta - C+ Sep-22 36 359 Group

Richart Club 3 Dibunovskaya 34 Dibunovskaya - B+ Complet 3 154 ed

Stockholm Housing 1 Primorskiy 46 Setl City - B+ Complet 13 919 ed

Stockholm Housing 2 Primorskiy 46 Setl City - B+ Complet 10 195 ed

Source: Knight Frank St Petersburg

6 projects with an aggregate residential area of about 490 thousand sqm were announced in the competitive area. About half of this volume is represented by new phases of Primorsky Kvartal complex being sold. Also, there is a high probability that the project at Chernoy Rechki Embankment 1 (AAG) will start in 2019.

Table 11. Perspective projects

Non- Address Project Developer residential Res. area, sq m status Bogytrsky 45 Amster Trest 36 - 9 951 Chernoy rechki 1 Royal Garden AAG - 15 600 Kolomyazhsky 13 Primorsky kvartal Megalit and Ohta Group - 245 000 Primorsky 50A - Markus + 78 200 Primorsky 72 - Plaza Lotus Group + 120 100 Zausadebnaya 25 - Stroitelniy trest + 21 000

Source: Knight Frank St Petersburg

The average prices in the competitive zone are in the range of 117.7 thousand RUR/ sqm in one of the buildings of Primorsky Kvartal to 252 thousand RUR / sqm in building 2 of Stockholm RC.

The average price in the competitive zone is 159.8 thousand RUR / sqm. Compared to 2017, the average price indicator decreased by 10% mainly due to the large supply available at Primorsky Kvartal residential complex.

Table 12. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. Sold Parking, Commercial price, units mln rub premises: rub per per av. price, sq m quarter rub per sq m Artline v Primorskom Housing 2,4,5 full 137 572 564 not on sale not on sale Aviator without finishing 172 071 3 1,30 155 000 LIFE-Primorsky 3 phase full 164 147 12 not on sale 146 667 MASTER na Serebristom 19 full 174 015 4 not on sale 147 287 Primorsky kvartal Housing 33,34,35,36 without finishing 144 327 84 0,60 not on sale Primorsky kvartal Housing 37 without finishing 119 216 47 0,60 117 040 Primorsky kvartal Housing 38 without finishing 117 736 79 0,60 140 993 Primorsky kvartal Housing 39 without finishing 118 318 41 0,60 132 463 Primorsky kvartal Housing 43 without finishing 118 952 86 1,10 125 000 Richart Club 3 without finishing 175 436 3 1,80 not on sale Stockholm Housing 1 without finishing 223 410 9 2,25 not on sale Stockholm Housing 2 without finishing 252 222 8 2,25 not on sale

Source: Knight Frank St Petersburg

The highest sales rate was recorded at Artline v Primorskom - 564 apartments were sold only in the first quarter of the object sales (the object went on sale at the end of 2018). On the background of an affordable price, location close to the metro station, low purchase budgets due to the large number of compact studios and 1 bedroom apartments in the offer, a large number of apartments were sold. It is also assumed that some of the apartments were sold to offset the acquisition value of the land.

High rates of sales were recorded in the Primorsky Kvartal, due to affordable prices. A total of 364 apartments per quarter are sold in all buildings.

The average rate of sales in the competitive area for the remaining objects is 7 apartments per quarter.

Location 5. NEO

Competitors of the analyzed object are B+, B- and C-class residential complexes (RC) in Moskovsky district south of the railroad line and close to Elektrosila metro station.

The map of competition

Source: Knight Frank St Petersburg

There are 7 objects on sale in the analyzed location. Victory Plaza business class house at Gastello street, 7 again began to be realized in 2018, after the suspension of sales. Sales were completed in Moskovsky Kvartal near Elektrosila MS and in Grand Familia at Zvezdnaya MS. Apartments in “Piter” complex at Tipanova St. and in Q-Mir on the former territory of a warehouse complex at Kubinskaya St. went on sale.

The total living area of the objects on sale is 230.1 thousand sqm or 3.9 thousand apartments.

Table 13. Characteristics of the competing projects

Residential Phase/ housing Address Developer Cla Deadline Res. Number сomplex ss area, sq of flats m Barcelona Moskovskoe 16 Dom na Lensoveta - B+ Mar-20 7 894 Graf Orlov Housing 3В, 4В Moskovskiy 186 L1 - B Complet 24 133 ed Graf Orlov Housing 5 Moskovskiy 186 L1 - B+ Complet 6 678 ed Graf Orlov Housing 7, 7В, Moskovskiy 186 L1 - B Sep-22 46 283 7Б, 7А, 8, 8А, 8Б, 8В Green Pulkovskoe 30 Mirland - C+ Sep-19 7 425 Tower Development

Residential Phase/ housing Address Developer Cla Deadline Res. Number сomplex ss area, sq of flats m Moskva Kostyushko 19 Setl City - B Complet 31 004 ed Piter Tipanova 21A Kontsern Piter - C+ Jun-21 61 587 Q-mir Kubinskaya 82B Akvilon-Invest - C+ Jun-23 30 658 Victory Gastello 7 Setl City - B+ Jun-22 14 453 Plaza

Source: Knight Frank St Petersburg

7 future projects were announced in the competitive zone, with a total living area of approximately 176.8 thousand sqm. New phases in “Graf Orlov” and “Triumph Park” complexes being sold are the most likely to enter the market.

Table 14. Perspective projects

Address Project Developer Res. area, sq m Blagodatnaya 57 - 3S Development - Kosmonavtov 49 - RBI - Moskovsky 109-111 - Prodazha proekta - Moskovsky 185 Graf Orlov L1 - Moskovsky 72 - Rostekh - Moskovsky/ Ligovsky - Confidential - Pulkovskoe 30 Triumf Park Mirland Development -

Source: Knight Frank St Petersburg

The average prices range in the competitive zone varies from 113 to 262 thousand RUR / sqm. Minimum prices are presented in "Q-mir" residential complex , because it is being built on a former industrial site. Maximum prices are in Victory Plaza business class house.

The average asking price in the competitive zone increased by 8% in comparison with 2017 and amounted to 152.2 thousand RUR / sqm.

Table 15. Average price, average rate of sales of the competition projects

Residential Phase/ housing Finishing Av. price, Sold Parking, Commercial сomplex rub per sq units mln rub premises: m per av. price, quarter rub per sq m Barcelona without finishing 158 412 4 not on sale not on sale Graf Orlov Housing 3В, 4В without finishing 125 840 9 2,29 117 144 Graf Orlov Housing 5 without finishing 150 740 5 not on sale 208 556 Graf Orlov Housing 7, 7В, without finishing 123 774 31 not on sale not on sale 7Б, 7А, 8, 8А, 8Б, 8В Green Tower pre-finishing 142 800 12 not on sale not on sale

Residential Phase/ housing Finishing Av. price, Sold Parking, Commercial сomplex rub per sq units mln rub premises: m per av. price, quarter rub per sq m Moskva without finishing 176 443 29 1,65 not on sale Piter without finishing 117 014 53 not on sale not on sale Q-mir pre-finishing 113 180 88 1,16 137 638 Victory Plaza full 261 829 8 3,00 280 000

Source: Knight Frank St Petersburg

The average sales rate in the competitive zone is 18 apartments per quarter, with the exception of maximum in the residential complex “Q-Mir”, in which high sales rates are due to the low cost of apartments.

Location 6. 3 NEO PARK

Aparthotel complexes located in Moscovsky and Frunzensky districts are the competitors to the Property under analysis.

The map of competition

Source: Knight Frank St Petersburg

5 apart-hotels, which are objects of investment orientation, are presented for sale in the analyzed location.

Salut complex at the corner of Dunaysky Prospect and Pulkovsky Hw, 3 phases of which have already been built and put into operation, 2 more are under construction, is the closest to the analyzed project.

The total area of apartments put on sale in these aparthotels is 112.1 thousand sq m or 3.8 thousand units.

Table 16. Characteristics of the competing projects

Residential Phase/ housing Address Developer Class Deadline Res. area, Numb сomplex sq m er of flats M97 Moskovskiy 97 Polis Group C Dec-21 5 306 150 Salut 4 phase -5 phase Moskovskoe/Dunay SoyuzInvest C Mar-20 14 673 500 (housing 5.2) skiy Developmen t Salut 5 phase (Housing Moskovskoe/Dunay SoyuzInvest C Mar-20 14 673 500 5.3) skiy Developmen t Salut Status by Salut Moskovskoe/Dunay SoyuzInvest C Dec-22 8 836 250 skiy Developmen t Valo Housing 1 (section Salova 61/A Gals C Mar-20 21 327 750 1,2) Valo Housing 1 (section Salova 61/A Gals C Mar-20 21 968 795 3,4) IN2IT Housing 1-4 Vitebskiy 101 Plaza Lotos C Dec-20 14 536 533 Group Studio Housing 1,2 Zaozernaya 1G RBI C+ Jun-21 10 808 357 Moskovsky

Source: Knight Frank St Petersburg

9 perspective projects with a total area of about 338.9 thousand sq m were announced in the competitive zone.

The future apartment-hotel on Ordzhonikidze 44 is the closest to the analyzed Project.

Table 17. Perspective projects

Res. area, sq District Address Project Developer m

Moskovsky Vitebsky 101 IN2IT Plaza Lotos Group 60 830 Moskovsky Leninsky 153 - Lider group 12 052 Frunzensky Ligovsky 127 - VK logistik 300 Moskovsky Moskovsky/ Ligovsky - Confidential 2 748 Moskovsky Ordzhonikidze 44 - NAI Becar 77 508 Moskovsky Salova 61/A Valo Arena development 56 996 Moskovsky Sofijskaya 63 - Alyans-Invest 54 883 Moskovsky Chernigovskaya 14 - Bernulli DS 26 831 Moskovsky Chernigovskaya 8 lit.K - ADM Nedvizhimost 46 725

Source: Knight Frank St Petersburg

The average prices range in the objects varies from 97.4 to 174.5 thousand RUR / sqm. The minimum average price is in Salut the aparthotel, the maximum - in Studio Moskovsky project.

The average bid price in the competitive zone increased by 18% compared with 2017 and amounts to 126.5 thousand RUR/ sqm.

Table 18. Average price, average rate of sales of the competition projects

Residential Phase/ housing Finishing Av. price, Sold units Parking, Commercial сomplex rub per per quarter mln rub premises: sq m av. price, rub per sq m M97 full 161 193 24 not on sale 190 400 Salut 4 phase -5 phase (housing 5.2) full 101 441 61 not on sale not on sale Salut 5 phase (Housing 5.3) full 97 412 26 not on sale not on sale Salut Status by Salut full 104 422 start of sales not on sale not on sale Valo Housing 1 (section 1,2) full 130 109 83 not on sale 189 161 Valo Housing 1 (section 3,4) full 130 330 80 not on sale not on sale IN2IT Housing 1-4 full 112 151 85 not on sale not on sale Studio Moskovsky Housing 1,2 full 174 512 0 not on sale not on sale

Source: Knight Frank St Petersburg

The average sales rate for competing aparthotels is 51 units per quarter and remains at the previous period level. The highest sales rates are recorded in Valo - the facility is well located within walking distance of the metro. Also, a high rate is observed in the IN2IT apart-hotel of Plaza Lotos Group, whose success lies in a successful marketing campaign focused on a small investment budget due to the acquisition of individual square meters, and not the whole apartment.

Location 7. Morskoy Fasad

Vasileostrovsky district of St. Petersburg is the competitive zone. Residential complexes under construction in the newly formed alluvial areas are the main competitors of the Project. Projects of aparthotel format are considered as indirect competitors.

The map of competition

Source: Knight Frank St Petersburg

On alluvial newly-formed territories, currently 5 residential complexes and 1 apart-hotel (of not-serviced format) are on sale. In total, 6 B-class objects, 8 C-class objects and 4 apartment-hotels are being realized in the district.

The total living area of the objects on sale is 553.5 thousand sq m or 10.9 thousand apartments and aparthotel rooms.

Table 19. Characteristics of the competing projects

Residential сomplex Phase/ housing Address Developer Non- Class Deadline Res. area, Number of residential sq m flats status 24 29 1 phase 24 liniya 29 NordEst - C+ Completed 6 237 85 Delagardi 14 liniya 57-61 Nevskiy alyans - B+ Sep-19 3 666 36 Dve epohi Housing А, Б 18 liniya 49-53 EKE - B+ Completed 24 938 317 Emerald na Maloy Neve Housing 1,3,4 Uralskaya 21 Setl City - C Jun-22 34 215 887 Golden City Housing 1, 2 Nevskaya guba Glorax Development - C+ Mar-20 29 092 573 Golden City Housing 7 Nevskaya guba Glorax Development - C+ Sep-21 22 950 435 Kolumb Morskaya nab. Lider Group - C+ Dec-22 52 972 933 Magellan Morskaya nab. Lider Group - C+ Dec-22 51 393 1 471 Malenkaya Frantsiya 20 liniya 5-7 AAG - B+ Jun-22 17 295 145 MONODOM na Malom 1 phase Maliy 63/14 Sun Development - C+ Mar-19 9 356 194 Nahimov Morskaya nab. Lider Group - B Dec-22 12 847 118 Neva-Neva 24 liniya 25 Bazis SPb - B Dec-20 18 650 278 Palatsio Housing 2 25 liniya 8 Setl City - C+ Sep-19 73 117 1 480 Samotsvety Housing 3 Uralskaya 2-4 Etalon Group - B Completed 34 218 562 Tihaya gavan Vilkitskiy Seven Suns - C+ Jun-20 60 221 807 Indirect competitors AVENUE-APART na Malom Maliy 54/2A1 Best + C Mar-22 9 718 317

Residential сomplex Phase/ housing Address Developer Non- Class Deadline Res. area, Number of residential sq m flats status Docklands Housing 2 (Club) KIMa 19 Docklands development + B Dec-19 4 514 54 Docklands Housing 1-1 (Vasylevsky) KIMa 19 Docklands development + B Dec-19 7 720 148 Docklands Housing 1-3 (Family) KIMa 19 Docklands development + B Dec-19 5 594 115 Docklands Housing 3.1, 3.2 KIMa 19 Docklands development + B Completed 19 038 386 Docklands SmArt Makarova 60 Docklands development + B Dec-19 5 500 198 NEXT Housing 1-3 Sredniy 87 Evrostroy + B+ Mar-19 17 397 432 Ya-romantik Housing 11(section 1,2,3) V.Shefnera Seven Suns + C Dec-19 32 899 940

Source: Knight Frank St Petersburg

16 future projects with a total living area of about 705.8 thousand sq m were announced in Vasileostrovsky district, of which 24% of the areas are located in the newly-formed territory as new phases of “Ya-Romantic” and Golden City residential complexes.

Table 20. Perspective projects

Non- Address Project Developer residential Res. area, sq m status 11 liniya 56 Serdce ostrova Confidential - 9 259 12 liniya 41 Bomond AAG - 15 000 12 liniya 41 Bomond AAG + 5 000 13 liniya 50 - Vinteko - 8 140 24 liniya 31 - Indest Development - 7 592 V.Shefnera Ya-romantik Seven Suns - 66 023 Korablestroiteley 28 - LSEG + 18 000 Nalichnaya 103 Morskaya rezidenciya Gazprom - 118 386 Nevskaya guba Golden City Glorax Development - 105 447 Odoevskogo 21 - Stroitelniy trest - 5 083 Smolenki 19/21 - Teorema - 42 500 Emerald na Maloy Uralskaya 21 Setl City - 17 640 Neve Shkipersky 18 - Ruskobank - 61 700 Shkipersky 19A - Almaz-Antej - 166 972 Shkipersky 19A - Almaz-Antej + 8 050 Shkipersky 16-18 - Palmira - 51 000

Source: Knight Frank St Petersburg

The average price in competing properties ranges from 87.6 thousand RUR/ sqm in Nakhimov complex to 193.6 thousand RUR/ sqm in Dve Epokhi commissioned business class house.

The average asking price in the competitive area in the B-class objects is 152.5 thousand RUR/ sqm, in the C-class objects - 120.4 thousand RUR/ sqm. In aparthotel complexes, this indicator is the highest in the district and amounts to 155.3 thousand RUR/ sqm, due to the high price per square meter in Club aparthotel, which is an alternative to business-class housing.

Table 21. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. Sold Parking, mln Commercial price, units rub premises: av. price, rub per per rub per sq m sq m quarter 24 29 1 phase without finishing 134 469 4 2,50 249 500

Residential сomplex Phase/ housing Finishing Av. Sold Parking, mln Commercial price, units rub premises: av. price, rub per per rub per sq m sq m quarter Delagardi without finishing 165 643 1 3,20 142 857 Dve epohi Housing А, Б pre-finishing 193 557 30 not on sale not on sale Emerald na Maloy Neve Housing 1,3,4 full 143 840 265 not on sale not on sale Golden City Housing 1, 2 without finishing 130 234 53 0,96 170 000 Golden City Housing 7 different 113 098 46 0,96 170 000 Kolumb pre-finishing 90 296 50 not on sale not on sale Magellan different 91 567 108 not on sale not on sale Malenkaya Frantsiya without finishing 174 889 3 1,99 not on sale MONODOM na Malom 1 phase without finishing 161 956 22 2,15 150 150 Nahimov without finishing 87 590 8 not on sale not on sale Neva-Neva pre-finishing 158 194 33 not on sale 165 000 Palatsio Housing 2 full 124 238 76 2,00 not on sale Samotsvety Housing 3 without finishing 134 901 38 1,80 129 850 Tihaya gavan full 93 886 51 not on sale not on sale Indirect competitors AVENUE-APART na Malom full 148 422 0 1,20 170 000 Docklands Housing 2 (Club) full 228 438 5 2,10 not on sale, only rent Docklands Housing 1-1 (Vasylevsky) full 135 184 26 2,10 not on sale, only rent Docklands Housing 1-3 (Family) full 132 985 15 2,10 not on sale, only rent Docklands Housing 3.1, 3.2 full 198 602 33 2,10 not on sale, only rent Docklands SmArt pre-finishing 183 470 29 2,10 not on sale, only rent NEXT Housing 1-3 different 139 883 12 1,30 170 000 Ya-romantik Housing 11(section 1,2,3) full 75 394 157 not on sale not on sale

Source: Knight Frank St Petersburg

The average sales rate in the main competing objects is 52 apartments per quarter. The highest sales rates are recorded in Emerald na Maloy Neve (265 apartments per quarter) and Magellan (108 apartments per quarter).

Location 8. Chernaya Rechka (Riviere Noire)

Residential complexes (RC) of B and C classes , which are being built in the local environment - in the southern part of Primorsky district, in Vyborgsky district in the location of Lesnoy Ave. and B. Sampsonievsky Ave., as well as in the northern part of Petrograd side are the competitors of the analyzed Property.

The map of competition

Source: Knight Frank St Petersburg

The given parameters correspond to 16 residential complexes with a total living area of 601.8 thousand sqm (11 thousand apartments). The competitive zone volume has increased almost 3 times in 2018, which is connected with several large objects that started sales, including the Property’s closest competitor - “TsDS Chernaya Rechka” that opened sales.

18% of the areas have already been commissioned, or are announced for commissioning during 2019, 65% of the areas are scheduled for commissioning in 2020-2021.

Table 22. Characteristics of the competing projects

Residential Phase/ Address Developer Class Deadline Res. Number сomplex housing area, sq of flats m Artline v Housing Torfyanaya doroga 17 Setl City C Jun-21 52 254 1 359 Primorskom 2,4,5 Aviator Savushkina 43 Praviy bereg B Complete 2 839 40 d Botanica Aptekarskiy 5 Etalon Group B+ Dec-19 28 445 356 Fusion Krapivniy 4 Etalon Group B Dec-19 9 555 110 G9 Gribalevoy 9 KVS C Dec-19 15 000 316 Georg Landrin 1 B.Sampsonievskiy 77 Absolyut Stroy B Jun-20 27 692 451 Georg Landrin 2 B.Sampsonievskiy 77 Absolyut Stroy B Dec-23 43 523 693 LIFE-Lesnaya Housing 2.1 Novolitovskaya 10-12 Pioner C+ Dec-20 29 633 467 LIFE-Lesnaya Housing 2.2 Novolitovskaya 10-12 Pioner C+ Sep-20 12 262 209 LIFE-Lesnaya Housing 3.1 Novolitovskaya 10-12 Pioner C+ Sep-20 30 702 492

Residential Phase/ Address Developer Class Deadline Res. Number сomplex housing area, sq of flats m Noviy Lessner Housing 1- B.Sampsonievskiy 68 Otdelstroy C+ Mar-23 53 798 1 050 4 Oblaka na Lesnoy Housing 1,2 Novolitovskaya 16 Setl City C Sep-20 52 235 1 381 Prityazhenie Housing 1,2 B.Sampsonievskiy 66 Setl City B Jun-21 30 371 476 Prityazhenie Housing 3 B.Sampsonievskiy 66 Setl City B Jun-21 14 514 236 Prityazhenie Housing 4 B.Sampsonievskiy 66 Setl City B Jun-21 15 213 220 Prityazhenie Housing 7 B.Sampsonievskiy 66 Setl City B Jun-21 7 150 173 Richart Club 3 Dibunovskaya 34 Dibunovskaya B+ Complete 3 154 32 d Skandi Klubb Housing Aptekarskiy 16 Bonava B Complete 20 534 301 31-39 d Skandi Klubb Housing Aptekarskiy 16 Bonava B Dec-20 17 583 283 41-46 Stockholm Housing 1 Primorskiy 46 Setl City B+ Complete 13 919 157 d Stockholm Housing 2 Primorskiy 46 Setl City B+ Complete 10 195 115 d Tarmo Housing 1 Studencheskaya 24 YIT C+ Dec-19 9 186 194 Tarmo Housing 2 Studencheskaya 24 YIT C+ Dec-20 9 238 183 Terra Housing 3 Zemledelcheskaya 3 RosStroyInvest C Jun-21 26 357 586 TSDS Chernaya Housing 2 Beloostrovskaya/Stude TSDS C+ Dec-21 33 305 580 rechka ntcheskiy/Krasnogvard eyskiy TSDS Chernaya Housing 3 Beloostrovskaya/Stude TSDS C+ Dec-21 33 159 578 rechka ntcheskiy/Krasnogvard eyskiy

Source: Knight Frank St Petersburg

13 future projects with a total living area of about 928 thousand sq m were announced in the competitive zone. In the immediate vicinity of the Property under study, several large projects were announced with a total housing area of 255 thousand sq m.

Table 23. Perspective projects

Res. area, sq Phase/ District Address Project Developer m housing

Vyborgsky B.Sampsonievsky 66 Prityazhenie Housing 6 Setl City 9 794 Vyborgsky B.Sampsonievsky 66 Prityazhenie Housing 5 Setl City 18 289 Vyborgsky B.Sampsonievsky 68 Noviy Lessner 2 phase Otdelstroy 56 000 Primorsky Beloostrovskaya 13 - - AAG 37 151 Primorsky Beloostrovskaya 28 - - Etalon Group 19 500 Primorsky Beloostrovskaya 9 - - Bazis SPb 31 660 Primorsky Chernoy rechki 1 Royal Garden - AAG 15 600 Vyborgsky Engelsa 27 Svetlana Park - Setl City 421 235 TSDS Chernaya Primorsky Krasnogvardejsky 23 3 phase TSDS 117 837 rechka TSDS Chernaya Primorsky Krasnogvardejsky 23 2 phase TSDS 33 305 rechka

Res. area, sq Phase/ District Address Project Developer m housing

Vyborgsky Novolitovskaya 10-12 LIFE-Lesnaya Housing 3.2 Pioner 8 660 Primorsky Studencheskaya 24 Tarmo 3 phase YIT 21 936 Artline v Housing 1, Primorsky Torfyanaya doroga 17 Setl City 35 173 Primorskom 3 Artline v Housing 1, Primorsky Torfyanaya doroga 17 Setl City 33 026 Primorskom 2 Vyborgsky Vyborgskaya 55 MOST Building - GTC 25 000 Primorsky Zemledelcheskaya 3 Terra 2 phase RosStroyInvest 43 643

Source: Knight Frank St Petersburg

The average prices in the competitive zone vary from 112 to 252 thousand RUR/ sqm. The highest prices are recorded in the commissioned Stockholm RC. Minimum prices in the location were noted in the 2nd phase of "Georg Landrin" residential complex , which has the latest commissioning period among the facilities to be completed - 2023.

Table 24. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercial rub per sq units mln rub premises: av. m per price, rub per quarter sq m Artline v Primorskom Housing 2,4,5 full 137 572 564 not on sale not on sale Aviator without finishing 172 071 3 1,30 155 000 Botanica without finishing 185 093 32 2,04 185 184 Fusion without finishing 189 266 12 not on sale 198 563 G9 full 152 209 41 not on sale not on sale Georg Landrin without finishing 130 436 63 not on sale 200 000 Georg Landrin without finishing 112 340 29 not on sale not on sale LIFE-Lesnaya Housing 2.1 pre-finishing 143 069 55 0,60 159 125 LIFE-Lesnaya Housing 2.2 pre-finishing 145 777 26 0,60 114 750 LIFE-Lesnaya Housing 3.1 without finishing 130 931 20 not on sale not on sale Noviy Lessner Housing 1-4 pre-finishing 139 368 23 0,50 not on sale Oblaka na Lesnoy Housing 1,2 full 122 152 192 0,85 189 000 Prityazhenie Housing 1,2 different 154 987 47 not on sale not on sale Prityazhenie Housing 3 different 145 825 32 not on sale not on sale Prityazhenie Housing 4 different 142 669 73 not on sale not on sale Prityazhenie Housing 7 different 145 147 65 not on sale not on sale Richart Club 3 without finishing 175 436 3 1,80 not on sale Skandi Klubb Housing 31-39 pre-finishing 165 568 40 0,80 not on sale Skandi Klubb Housing 41-46 pre-finishing 168 864 39 1,20 not on sale Stockholm Housing 1 without finishing 223 410 9 2,25 not on sale Stockholm Housing 2 without finishing 252 222 8 2,25 not on sale Tarmo Housing 1 without finishing 139 210 27 not on sale 129 900 Tarmo Housing 2 without finishing 133 397 0 not on sale 121 500 Terra Housing 3 pre-finishing 117 191 47 not on sale not on sale TSDS Chernaya rechka Housing 2 pre-finishing 123 804 23 not on sale 177 429 TSDS Chernaya rechka Housing 3 pre-finishing 123 299 16 not on sale 177 429

Source: Knight Frank St Petersburg

The highest rate of sales was recorded at Artline v Primorskom - 564 apartments were sold only in the first sales quarter of the object (the object went on sale at the end of 2018). A large number of apartments were sold on the background of affordable prices, location close to the metro station, low purchase budgets due to the large number of compact-area studios and 1 bedroom apartments in the supply. It is also assumed that some of the apartments were sold to offset the cost of acquiring land.

About 200 apartments per quarter are on average sold in “Oblaka na Lesnoy” residential complex, which is caused by the low price of a square meter relative to the closest competitors, a large number of compact-area studios and 1-room apartments with a low purchase budget.

Location 9. Bogemiya

An analysis of residential complexes located in blocks along Moskovsky Ave, near Frunzenskaya metro station, as well as of complexes located along Ligovsky Ave, south of Obvodny Canal metro station, chosen as comparable competitors, was carried out.

The map of competition

Source: Knight Frank St Petersburg

9 residential complexes are on sale In the competitive zone. “Time. Dom u Moskovskogo"(RBI), the closest competitor of the Property, has completed sales in 2018. At the same time, apartments in the neighboring Studio Moskovsky complex at Zaozernaya Str., 1 were put on sale. However, this object is not considered in this analysis, since it is a serviced apart-hotel.

Moskovsky 65 complex, launched by LEGENDA in autumn 2018, is the B-class object closest to the analyzed Property.

The total living area of the objects put on sale is 439 thousand sqm (8.2 thousand apartments). Compared to 2017, the supply volume in the location has increased by 42%.

Table 25. Characteristics of the competing projects

Residential Phase/ housing Address Developer Class Deadline Res. area, Num сomplex sq m ber of flats ARTkvartal.Akvi Moskovskiy 83 Akvilon-Invest C Mar-19 44 813 1 084 lon Bolkonsky 11 RBI B+ Jun-23 13 230 156 Krasnoarmeyska ya 11 Dom u Dnepropetrovsk Investtorg C+ Jun-20 15 573 301 Karetnogo aya 65 mosta Galaktika Housing 4.11 Krasutskogo Etalon Group C+ Dec-19 17 423 377 Galaktika 8.1-1 M.Mitrofanevska Etalon Group C+ Jun-20 14 895 301 ya Galaktika 8.7-1, 8.7-2, 8.7- M.Mitrofanevska Etalon Group C+ Jun-20 25 300 533 3 ya Galaktika Housing 8.2-1, M.Mitrofanevska Etalon Group C+ Complete 62 997 1 128 8.2-2, 8.2-3, 8.2- ya d 4 Galaktika Housing 4.7-1, Parfenovskaya Etalon Group C+ Mar-21 54 475 1 180 4.7-2, 4.7-3 Galaktika. M.Mitrofanevska Etalon Group B Mar-21 43 007 576 Premium ya Ligovsky City - Ligovskiy 271 Glorax C Mar-20 55 921 1 201 Perviy kvartal Development Ligovsky City - Ligovskiy 232A Glorax C+ Dec-19 48 480 830 Vtoroy kvartal Development LOOK Prilukskaya 20 PSK B Complete 5 945 96 d Moskovsky 65 Moskovskiy 65/2 LEGENDA B+ Jun-23 36 885 411

Source: Knight Frank St Petersburg

12 future projects, with the total living area of 941.5 thousand sq m, were announced in the competitive area. RBI project at 12 Krasnoarmeiskaya Street and "Eurostroy" project on Malodetskoselsky Ave, 40 are the most likely to be implemented in 2019.

Table 26. Perspective projects

Non- Res. area, sq District Address Project Developer residential m status Admiraltejsky 12 Krasnoarmejskaya 26 - RBI - 15 189 Moskovsky Chernigovskaya - Etalon Group - 89 597 Moskovsky Detsky 5 - RBI + 11 106 Ligovsky City - Admiraltejsky Ligovsky 240 Glorax Development - 270 000 Ligovsky 240

Admiraltejsky Malodetskoselsky 40 Idealist Evrostroy - 9 570 Moskovsky Moskovsky - Confidential - 54 000 Moskovsky Moskovsky 109-111 - Prodazha proekta - 22 469 Admiraltejsky Moskovsky 65 - Meridian development - 14 242 Moskovsky Moskovsky 72 - Rostekh - 15 130 Admiraltejsky Obvodniy-Moskovsky Galaktika Etalon Group - 375 731 Admiraltejsky Obvodnogo 118a - Gamma + 37 282 Ligovsky City - Admiraltejsky Tosina 3 Glorax Development - 27 200 Tosina 3

Source: Knight Frank St Petersburg

The average price in the competitive zone varies from 115.8 to 199 thousand RUR/ sqm. The lowest price is presented in “Ligovsky City - Vtoroy Kvartal” residential complex. The maximum bid price is presented in "Moskovsky 65" new business-class object.

The average price in the competitive area is 137 thousand RUR/ sqm, which is 9% higher than the same indicator for 2017.

Table 27. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. Sold Parking, Commercial price, units mln rub premises: rub per per av. price, sq m quarter rub per sq m

ARTkvartal.Akvilon pre-finishing 135 898 109 1,50 129 152

Bolkonsky without finishing 180 367 20 not on sale 146 154

Dom u Karetnogo mosta pre-finishing 125 575 25 1,00 136 875

Galaktika Housing 4.11 without finishing 125 757 44 0,73 not on sale

Galaktika 8.1-1 without finishing 133 656 39 0,76 109 926

Galaktika 8.7-1, 8.7-2, 8.7-3 without finishing 127 235 61 not on sale 122 927

Galaktika Housing 8.2-1, 8.2-2, 8.2-3, 8.2-4 without finishing 121 343 106 0,72 126 706

Galaktika Housing 4.7-1, 4.7-2, 4.7-3 full 129 763 84 not on sale 163 770

Galaktika. Premium without finishing 123 526 37 not on sale 137 659

Ligovsky City - Perviy kvartal pre-finishing 117 415 95 1,00 125 000

Ligovsky City - Vtoroy kvartal without finishing 115 765 67 not on sale 205 000

LOOK without finishing 149 994 12 1,50 not on sale

Moskovsky 65 pre-finishing 198 992 102 1,80 349 750

Source: Knight Frank St Petersburg

The average sales rate for the competitive area is 62 apartments per quarter. At the same time, pace of sales is significantly higher than average in the first stage of “Galaktika” residential complex , “Moskovsky 65” and

“ARTkvartal.Akvilon”, due to the high popularity of the location - proximity of the metro station, proximity to the city center at relatively affordable prices.

Location 10. Yuzhnaya Aquatoriya

The competitive zone mainly consists of one large location in the south-west of St. Petersburg, new residential developments in the area of Budennogo Ave. included. Residential complexes under construction in the area of Veteranov Ave. are also considered.

These requirements correspond to 11 residential complexes. The total living area of the objects on sale is 698 thousand sqm or 15.8 thousand apartments. The following facilities were put on sale in 2018: "Nautilus", "Premjera", "Zhemchuzhniy Kaskad" and new phases in "LEGENDA Geroev", "Zhemchuzhniy Bereg" and "Solnechniy Gorod" complexes.

The map of competition

Source: Knight Frank St Petersburg

90% of the objects in the competitive area are C-class housing and are focused on mass demand. 1-bedroom apartments and studios are the most common apartment types in the flatography.

In general, the competition of the analyzed Property can be assessed as high, especially from the projects of integrated territorial development.

Table 28. Characteristics of the competing projects

Residential Phase/ Address Developer Cla Deadline Res. Number сomplex housing ss area, sq of flats m

Zhemchuzhniy Housing 1-4 A.Cherokova/ Baltiyskaya C+ Sep-20 29 987 526 bereg Geroev Zhemchuzhina

LEGENDA Geroev Housing 1, 2 Geroev/ LEGENDA C+ Dec-19 33 313 588 Dudergofskiy kanal

LEGENDA Geroev Housing 3,4 Geroev/ LEGENDA C+ Dec-20 33 312 588 Dudergofskiy kanal

Ogni zaliva Housing 14 Leninskiy BFA-Development C+ Mar-20 34 362 651

Ogni zaliva Housing 15 Leninskiy BFA-Development C+ Mar-20 34 380 651

Baltiyskaya volna 3,4 M.Kazakova/Kuznets Rant C Complete 35 640 752 ova d

Nautilus Housing 1-4 Matisov kanal KVS C+ Mar-21 36 000 709

Zhemchuzhniy Housing 1 Matisov kanal Baltiyskaya C+ Dec-19 16 782 270 bereg Zhemchuzhina

Zhemchuzhniy Housing 2 Matisov kanal Baltiyskaya B+ Dec-19 6 002 67 bereg Zhemchuzhina

Zhemchuzhniy Housing 3 Matisov kanal Baltiyskaya C+ Dec-19 14 292 228 bereg Zhemchuzhina

Zhemchuzhniy Housing 4 Matisov kanal Baltiyskaya B+ Dec-19 5 690 64 bereg Zhemchuzhina

Angliyskaya milya 3 phase Petergofskoe 78/6 Glorax C Dec-20 70 463 1 536 Development

Angliyskaya milya Housing 1-5 Petergofskoe 78/6 Glorax C Jun-19 43 970 995 Development

Kleny - Petergofskoe 86/3 Petropol C Jun-19 27 456 617

Solnechniy gorod Housing 7 Sankt- Setl City C Jun-19 87 878 2 594 Peterburgskoe/ Krasnoselskoe/ Budennogo

Solnechniy gorod Housing 8 Sankt- Setl City C Dec-18 99 015 2 829 Peterburgskoe/ Krasnoselskoe/ Budennogo

Solnechniy gorod Housing 9 Sankt- Setl City C Jun-20 56 182 1 580

Residential Phase/ Address Developer Cla Deadline Res. Number сomplex housing ss area, sq of flats m

Peterburgskoe/ Krasnoselskoe/ Budennogo

Premjera Tambasova 5 Tekhnopolis C Sep-20 24 029 403

Aist Veteranov/ Krasnaya strela C+ Dec-19 9 100 153 Tambasova

Source: Knight Frank St Petersburg

The total area of perspective projects in the competitive zone is 1.4 million sqm of housing, the Property excluded. The nearest future project is “Ogni Zaliva" residential complex (by BFA-Development).

Table 29. Perspective projects

District Developer Res. area, Address Project sq m Krasnoselsky Leninsky Ogni zaliva BFA-Development 303 105 Zhemchuzhniy Baltiyskaya Krasnoselsky Matisov kanal 29 987 kaskad Zhemchuzhina Baltiyskaya Krasnoselsky Baltiyskaya Zhemchuzhina - 166 188 Zhemchuzhina Zhemchuzhniy Baltiyskaya Krasnoselsky Matisov kanal 21 234 bereg Zhemchuzhina Anglijskaya Glorax Krasnoselsky Petergofskoe 78/6 69 860 milya Development Solnechniy Krasnoselsky Budennogo Setl City 838 753 gorod

Source: Knight Frank St Petersburg

In terms of location and transport accessibility, competitors are comparable to the Project. All are built in locations significantly remote from metro stations, with a limited amount of social infrastructure. Problems with the development of transport accessibility are relevant and common in new neighborhoods.

Most of the competing objects sell apartments with a fine finish, or with preparation for finishing. "Aist" and "Kleny" residential complexes are the only exceptions.

The average price in the competitive area is 104.4 thousand RUR / sqm. Compared to 2017, the indicator has increased by 14% due to more expensive objects (for example, LEGENDA Geroev, Zhemchuzhniy Bereg and Zhemchuzhniy Kaskad) which started sales.

Table 30. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. price, Sold units per Parking, mln Commercial rub per quarter rub premises: av. sq m price, rub per sq m Zhemchuzhniy bereg Housing 1-4 pre-finishing 99 731 73 not on sale 159 917 LEGENDA Geroev Housing 1, 2 pre-finishing 135 384 36 0,46 202 038 LEGENDA Geroev Housing 3,4 pre-finishing 131 750 10 0,45 226 105 Ogni zaliva Housing 14 full 93 179 50 0,40 not on sale Ogni zaliva Housing 15 full 92 950 55 0,40 not on sale Baltiyskaya volna 3,4 pre-finishing 83 455 31 1,30 not on sale Nautilus Housing 1-4 full 129 125 48 not on sale 172 742 Zhemchuzhniy bereg Housing 1 pre-finishing 109 825 22 not on sale 190 000 Zhemchuzhniy bereg Housing 2 pre-finishing 127 219 5 not on sale not on sale Zhemchuzhniy bereg Housing 3 pre-finishing 108 181 20 not on sale 161 500 Zhemchuzhniy bereg Housing 4 pre-finishing 126 015 10 not on sale not on sale Angliyskaya milya 3 phase pre-finishing 85 118 117 not on sale 174 286 Angliyskaya milya Housing 1-5 pre-finishing 85 727 91 0,54 128 000 Kleny - different 91 082 28 not on sale not on sale Solnechniy gorod Housing 7 full 100 625 219 0,50 not on sale Solnechniy gorod Housing 8 full 98 535 304 0,50 not on sale Solnechniy gorod Housing 9 full 96 288 161 0,50 234 000 Premjera full 94 620 65 not on sale not on sale Aist without finishing 94 197 11 1,20 not on sale

Source: Knight Frank St Petersburg

Setl City, which sells the largest number of apartments in "Solnechniy Gorod" residential complex, is the undisputed sales leader in this location.

71 apartments per quarter is the average sales rate in the competitive zone.

Location 11. Sofiya, Zvjezdny duet

The southern part of Moscovsky and Frunzensky districts, within the boundaries of Blagodatnaya, Sofiyskaya streets, the Ring Road (KAD) and Western Speed Diameter (ZSD), is a competitive area of the analyzed Properties. C-class residential complexes were considered as competitors.

"New Kupchino" only residential complex by Stroitelny Trest Co. is on sale in Frunzensky district; "Balkany" residential complex by Leader Group was sold a year ago.

The only “Dve Stolitsy” commissioned object is on sale in the competitive area. 21% of the area is scheduled for commissioning until the end of 2019.

The map of competition

Source: Knight Frank St Petersburg

Over 2018, the total living space of the objects on sale increased by 40% and amounted to 712.1 thousand sqm or 17 thousand apartments. During the year, the following residential complexes went on sale: “Q-mir”, “Polis na Moscovskoy”, “Status u Parka Pobedy”, “Novoe Kupchino”, as well as new phases in “Dve Stolitsy” and “Moskovsky” complexes.

Table 31. Characteristics of the competing projects

Residential сomplex Phase/ housing Address Developer Class Deadline Res. Number area, sq of flats m Filosofiya Housing 1,2 1 Predportoviy 11 Setl City C Jun-20 43 217 1 212 Dom na Kosmonavtov Dnepropetrovskaya 65 Etalon Group C+ Sep-20 18 197 312 Bau Haus Housing А, В Kosmonavtov 102A Bau Siti C Dec-18 20 742 416 Polis na Moskovskoy Housing 1,2 Kubinskaya 82 Polis Group C Jun-23 31 098 762 Q-mir Kubinskaya 82B Akvilon-Invest C+ Jun-23 30 658 846 Novoe Kupchino M.Buharestskaya 9 Stroitelniy trest C+ Sep-24 42 991 728 4YOU Housing 3,4 Moskovskoe 13 Akvilon-Invest C Dec-19 28 095 782 4YOU Housing 5 Moskovskoe 13 Akvilon-Invest C Dec-21 34 242 1 020 4YOU Housing 6 Moskovskoe 13 Akvilon-Invest C Dec-20 15 835 595 Dve stolitsy Housing 1 Moskovskoe 13 Moskovskiy industrialnyy bank C Completed 47 137 1 086 Dve stolitsy Housing 2 Moskovskoe 13 Moskovskiy industrialnyy bank C Jun-21 23 839 528 Dve stolitsy Housing 4 Moskovskoe 13 Moskovskiy industrialnyy bank C Dec-21 30 859 675 Zhizn Housing 3,4 Moskovskoe 13 Seven Suns C Jun-20 50 866 1 363 Green Tower Pulkovskoe 30 Mirland Development C+ Sep-19 7 425 132 Triumf Park Housing 5 Pulkovskoe 30 Mirland Development C+ Jun-19 64 990 1 510

Residential сomplex Phase/ housing Address Developer Class Deadline Res. Number area, sq of flats m Moskovsky Housing 1 Pulkovskoe 30V TSDS C Dec-19 11 427 326 Moskovsky Housing 2 (section 3-9) Pulkovskoe 30V TSDS C Dec-19 23 977 575 Moskovsky Housing 3 (section 10-19) Pulkovskoe 30V TSDS C Sep-20 47 285 1 196 Krylya Pulkovskoe 36/4 KVS C Sep-19 14 045 316 Piter Tipanova 21A Kontsern Piter C+ Jun-21 61 587 1 137 Status u Parka Pobedy Housing 1-6 Vitebskiy 15 Setl City C Jun-21 63 608 1 504 Source: Knight Frank St Petersburg

The main volume of residential space is located on Moscovskoe Hw 13 at the former site of "Samson" meat processing plant. The total living area of the projects announced in the competitive zone is 562 thousand sqm.

Table 32. Perspective projects

District Address Project Developer Res. area, sq m

Moskovsky 1 Predportoviy 11 Filosofiya Setl City 11 378 Moskovsky Blagodatnaya 57 Dom u parka 3S Development 10 900 Status u Parka Moskovsky Vitebsky 15 Setl City 20 442 Pobedy

Moskovsky Moskovskoe 13 Dve stolitsy Inter-group 19 730

Moskovsky Moskovskoe 13 Zvezdy stolits Inter-group 96 140

Moskovsky Moskovskoe 13 4YOU Akvilon-Invest 41 200 Moskovsky Pulkovskoe 30V Moskovsky TSDS 61 173 Pulkovsky Moskovsky Pulkovskoe 32 Pulkovskymezonin 12 320 Meridian Moskovsky Kosmonavtov 49 - RBI 39 092

Moskovsky Pulkovskoe 30 Triumf Park Mirland Development 28 529

Moskovsky Tipanova 32 - Lider Group 124 000 Frunzensky M.Buharestskaya 9 Novoe Kupchino Stroitelniy trest 97 107

Source: Knight Frank St Petersburg

The average price in the competitive zone ranges from 83.5 thousand RUR/ sqm in “Dve Stolitsy” residential complex to 181.5 thousand RUR/ sqm in Bau Haus. 80% of apartments are sold prepared for finishing, or with final finishing itself.

The average price in the competitive area is 113.8 thousand RUR/ sq m and increased by 10% compared to 2017, due to more expensive objects put on sale (“Status u Parka Pobedy”, “Novoe Kupchino",“Polis na Moscovskoy" and "Q-mir").

Table 33. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercial rub per sq units mln rub premises: m per av. price, quarter rub per sq m Filosofiya Housing 1,2 full 130 327 162 0,85 162 000

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercial rub per sq units mln rub premises: m per av. price, quarter rub per sq m Dom na Kosmonavtov without 115 304 19 0,95 not on sale finishing Bau Haus Housing А, В without 181 468 32 not on sale not on sale finishing Polis na Moskovskoy Housing 1,2 pre-finishing 107 596 39 not on sale not on sale Q-mir pre-finishing 113 180 88 1,16 137 638 Novoe Kupchino without 111 381 59 not on sale not on sale finishing 4YOU Housing 3,4 pre-finishing 117 640 68 0,54 162 920 4YOU Housing 5 pre-finishing 110 355 82 0,55 118 575 4YOU Housing 6 pre-finishing 110 894 54 not on sale 132 600 Dve stolitsy Housing 1 pre-finishing 85 911 101 not on sale not on sale Dve stolitsy Housing 2 pre-finishing 83 499 76 not on sale not on sale Dve stolitsy Housing 4 pre-finishing 95 956 158 not on sale not on sale Zhizn Housing 3,4 full 93 480 82 not on sale not on sale Green Tower pre-finishing 142 800 12 not on sale not on sale Triumf Park Housing 5 full 115 860 111 not on sale not on sale Moskovsky Housing 1 full 103 562 65 0,30 not on sale Moskovsky Housing 2 (section 3-9) full 103 169 140 not on sale not on sale Moskovsky Housing 3 (section 10-19) full 94 436 65 not on sale not on sale Krylya full 118 661 61 not on sale 189 570 Piter without 117 014 53 not on sale not on sale finishing Status u Parka Pobedy Housing 1-6 full 137 634 0 not on sale 204 750

Source: Knight Frank St Petersburg

On average, in the competitive zone, the rate of sales is 73 apartments per quarter, which is 52% more than a year earlier.

Location 12. Kalina-park

The competitive zone is a neighborhood bounded by the railway line, Marshala Blyuhera Ave and adjacent blocks along the Neva River.

During the year, such residential complexes as “Noviy Lessner”, “Oblaka na Lesnoy”, “Dom na Laboratornom 23A”, as well as the new phase of “Georg Landrin” residential complex went on sale in this location.

The map of competition

Source: Knight Frank St Petersburg

The total living area of the objects on sale in comparison with 2017 increased by 20% and amounted to 473.3 thousand sqm (9.7 thousand apartments).

87% of projects in the competitive area are C-class housing, and 13% are of business-lite class (Georg Landrin).

50% of all apartments are sold with fine finishing or pre-finishing, 30% with roughing and 20% with mixed (within 1 complex there are apartments both with finishing and without finishing).

About 20% of the area in the competitive zone was commissioned, 10% is scheduled for commissioning in 2019. The main volume of space will be commissioned in 2020.

Table 34. Characteristics of the competing projects

Residential Phase/ Address Developer Clas Deadline Res. Numbe сomplex housing s area, sq r of m flats Noviy Lessner Housing 1-4 B.Sampsonievskiy 68 Otdelstroy C+ Mar-23 53 798 1 050 Georg Landrin B.Sampsonievskiy 77 Absolyut Stroy B Jun-20 27 692 451 Georg Landrin B.Sampsonievskiy 77 Absolyut Stroy B Dec-23 43 523 693 G9 Gribalevoy 9 KVS C Dec-19 15 000 316

Residential Phase/ Address Developer Clas Deadline Res. Numbe сomplex housing s area, sq r of m flats Dom na Laboratornyy 23A Stoun C Dec-20 18 400 404 Laboratornom 23A Kirill i Darya Housing 2,3 M.Blyuhera 12 KVS C Dec-19 30 000 623 Suvorov section 1-3 M.Blyuhera 12 RosStroyInvest C Jun-20 23 958 568 Flamingo section 1-3 M.Blyuhera 12 KapStroy C Completed 15 791 337 /Laboratornaya Flamingo section 4-6 M.Blyuhera 12 KapStroy C Completed 11 199 239 /Laboratornaya Dom na M.Blyuhera 4 Etalon Group C Mar-20 76 977 1 455 Blyuhera Marshal Housing 1-1 M.Blyuhera/Kondratevsk L1 C Completed 30 575 716 (А,Б,В,Д,Е,Ж) iy 58 Marshal Housing 2-1 M.Blyuhera/Kondratevsk L1 C Completed 32 283 756 (И,К,Л,М,Н,О) iy 58 LIFE-Lesnaya Housing 2.1 Novolitovskaya 10-12 Pioner C+ Dec-20 29 633 467 LIFE-Lesnaya Housing 2.2 Novolitovskaya 10-12 Pioner C+ Sep-20 12 262 209 Oblaka na Housing 1,2 Novolitovskaya 16 Setl City C Sep-20 52 235 1 381 Lesnoy

Source: Knight Frank St Petersburg

In the location of M. Blyuhera Ave, the tendency to reduce the number of projects has been preserved, which is due to the active development of the former industrial territories and the reduction of free sites. Currently, a significant amount of space is announced in the area of Beloostrovskaya Street, Krasnogvardeisky Lane, as well as in the area of Engelsa Ave.

A total of 13 future projects with a total area of about 829.3 thousand sqm of housing is announced.

Table 35. Perspective projects

Res. area, District Address Project Developer sq m Vyborgsky B.Sampsonievsky 68 Noviy Lessner Otdelstroy 56 000 Primorsky Beloostrovskaya 13 - AAG 37 151 Primorsky Beloostrovskaya 28 - Etalon Group 19 500 Primorsky Beloostrovskaya 9 - Bazis SPb 31 660 TSDS Primorsky Krasnogvardejsky 23 Chernaya TSDS 117 837 rechka TSDS Primorsky Krasnogvardejsky 23 Chernaya TSDS 33 305 rechka Vyborgsky Engelsa 27 Svetlana Park Setl City 421 235 Vyborgsky Vyborgskaya 4/2a Nobelius PSK 6 471 Vyborgsky Vyborgskaya 8 - York 16 277 Primorsky Zemledelcheskaya 3 Terra RosStroyInvest 43 643 Primorsky Chernoy rechki 1 Royal Garden AAG 15 600 Vyborgsky Novolitovskaya 10-12 LIFE-Lesnaya Pioner 8 660 Primorsky Studencheskaya 24 Tarmo YIT 21 936

Source: Knight Frank St Petersburg

The average price in competitor facilities varies from 88.8 to 152.2 thousand RUR/ sq m. The lowest prices in the competitive area are presented in “Dom na Laboratornom 23A” new residential complex (developer “Stoun”). The most expensive object is G9 house near Lesnaya MS (developer KVS).

The average price in the competitive zone is 119.8 thousand RUR / sqm. Compared to 2017, the average price increased by 12%, due to the objects with higher prices in the competition area put on sale.

Table 36. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercia rub per units mln rub l premises: sq m per av. price, quarte rub per sq r m Noviy Lessner Housing 1-4 pre-finishing 139 368 23 0,50 not on sale Georg Landrin without finishing 130 436 63 not on 200 000 sale Georg Landrin without finishing 112 340 29 not on not on sale sale G9 full 152 209 41 not on not on sale sale Dom na Laboratornom pre-finishing 88 822 0 not on not on sale 23A sale Kirill i Darya Housing 2,3 full 110 787 81 1,00 166 400 Suvorov section 1-3 different 103 790 63 not on 212 000 sale Flamingo section 1-3 without finishing 122 467 18 not on 119 922 sale Flamingo section 4-6 without finishing 114 666 16 not on not on sale sale Dom na Blyuhera different 104 378 122 0,54 122 279 Marshal Housing 1-1 without finishing 103 345 11 0,98 not on sale (А,Б,В,Д,Е,Ж) Marshal Housing 2-1 without finishing 103 897 15 0,98 not on sale (И,К,Л,М,Н,О) LIFE-Lesnaya Housing 2.1 pre-finishing 143 069 55 0,60 159 125 LIFE-Lesnaya Housing 2.2 pre-finishing 145 777 26 0,60 114 750 Oblaka na Lesnoy Housing 1,2 full 122 152 192 0,85 189 000

Source: Knight Frank St Petersburg

The maximum sales rates are noted in “Oblaka na Lesnoy”, “Dom na Blyuhera” and “Georg Landrin” residential complexes, and make up 90-190 apartments per quarter in all the phases of each object. “Dom na Laboratornom 23A” complex is implemented at the lowest pace, due to the low popularity of the developer because of the delay in implementation of his previous residential complexes.

The average sales rate in the competitive zone is at the level of 50 apartments per quarter.

Location 13. Shuvalovskiy, Zapovednaya

The competitive area of the analyzed Properties is the northern part of Primorsky district, bounded by Planernaya, Ilyushina streets and the railway line.

There are 12 residential complexes with a total living area of 847.2 thousand sq m or 22.1 thousand apartments in the competitive area. Compared to 2017, the supply volume increased by 21%. This is due to the launch of new phases in previously implemented large-scale projects, as well as to the start of sales in two new projects - Ariosto! and New Time.

The map of competition

Source: Knight Frank St Petersburg

98% of the space is located in economy class facilities. In the competitive area, one B-class object remains on sale (Nizhne-Kamenskaya 7), which was commissioned in 2013. Active construction of C-class buildings has been going on in this neighborhood in recent years, so there are practically no potential buyers of business- class apartments. In this regard, the sales rate in this house is very low.

75% of apartments are sold either with full finishing or pre-finishing.

Table 37. Characteristics of the competing projects

Residential сomplex Phase/ housing Address Developer Clas Deadline Res. Numbe s area, r of sq m flats

Ariosto! Housing 1 Gluharskaya Arsenal- C+ Dec-20 34 971 694 Nedvizhimost Ariosto! Housing 2 Gluharskaya Arsenal- C+ Jun-23 34 067 642

Residential сomplex Phase/ housing Address Developer Clas Deadline Res. Numbe s area, r of sq m flats

Nedvizhimost

Polis na 1 phase (section 18- Gluharskaya Polis Group C Jun-20 25 208 874 Komendantskom 20) Polis na 2 phase (section 14- Gluharskaya Polis Group C Jun-20 37 600 1 216 Komendantskom 17) Polis na 3 phase (section 8- Gluharskaya Polis Group C Dec-28 63 025 2 159 Komendantskom 13) YOGA Housing 2 Komendantskiy (Kamenka) Lider Group C Dec-20 22 203 612

YOGA Housing 3 Komendantskiy (Kamenka) Lider Group C Dec-20 20 841 558

LEGENDA 2 phase Komendantskiy 54-58 LEGENDA C+ Dec-19 31 260 504 Komendantskogo Chistoe nebo Housing 6 Komendantskiy uch.1 Setl City C Jun-20 74 235 2 121

Chistoe nebo Housing 4.1 и 4.2 Komendantskiy uch.2 Setl City C Jun-20 113 3 254 890 Chistoe nebo Housing 7.1 Komendantskiy uch.2 Setl City C Jun-21 23 317 736

Chistoe nebo Housing 7.2,7.4,7.6 Komendantskiy uch.2 Setl City C Jun-21 45 331 1 271

Nizhne-Kamenskaya 7 Nizhne-Kamenskaya 7 Temp B Complete 13 111 142 d Orlovsky park 3А,4А Orlovo-Denisovskiy PIK C Dec-19 26 062 456

Orlovsky park Housing 1А Orlovo-Denisovskiy PIK C Dec-20 27 210 586

Orlovsky park Housing 2А Orlovo-Denisovskiy PIK C Dec-20 12 890 264

UP-Komendantsky Housing 3.2 Parashyutnaya/ Shavrova FSK Lider C Jun-19 20 608 483

UP-Komendantsky Housing 3.3 Parashyutnaya/ Shavrova FSK Lider C Sep-19 20 608 483

New Time Housing 1 Planernaya/Gluharskaya/Aviakonstrukt RosStroyInvest C Dec-23 21 400 626 orov New Time Housing 2 Planernaya/Gluharskaya/Aviakonstrukt RosStroyInvest C Dec-23 18 263 494 orov Ultra City Housing 1, 2 Prigorodniy 4 RBI C+ Jun-24 30 901 548

Ultra City Housing 2,3 Prigorodniy 4 RBI C Mar-20 34 909 847

Graffiti Housing 1.10 Shuvalovskiy/Parashyutnaya Oykumena C Dec-19 21 587 614

Graffiti Housing 1.7 Shuvalovskiy/Parashyu Oykumena C Complete 19 153 504 d tnaya Graffiti Housing 1.8 Shuvalovskiy/Parashyutnaya Oykumena C Complete 13 908 366 d Graffiti Housing 1.9 Shuvalovskiy/Parashyutnaya Oykumena C Dec-19 19 215 487

Novoorlovsky Housing 1.6.1 Suzdalskoe sh. /Novoorlovskaya ul. YIT C+ Complete 12 648 343 d Novoorlovsky Housing 1.6.2 Suzdalskoe sh. /Novoorlovskaya ul. YIT C+ Dec-18 8 796 197

Source: Knight Frank St Petersburg

The construction of 13 perspective projects is announced, the total living area of which is 1.6 million sq m.

Table 38. Perspective projects

District Phase/ Res. area, Address Project Developer housing sq m Arsenal- Primorsky Gluharskaya Ariosto! - 117 704 Nedvizhimost Polis na Primorsky Gluharskaya - Polis Group 190 385 Komendantskom Primorsky Komendantsky (Kamenka) YOGA Housing Lider Group 15 339

District Phase/ Res. area, Address Project Developer housing sq m 4 LEGENDA Primorsky Komendantsky 54-58 3 phase LEGENDA 26 934 Komendantskogo Primorsky Komendantsky uch.1, uch. 2 Chistoe nebo - Setl City 708 043 Primorsky Koroleva 46/4 - - Etalon Group 4 304 2 phase, Primorsky Orlovo-Denisovsky Orlovsky park Housing PIK 48 838 1А, 2А Primorsky Parashyutnaya 52 - - Etalon Group 29 287 Veren Next Primorsky Parashyutnaya 75 - Veren Group 21 375 Shuvalovsky Primorsky Planernaya/Gluharskaya/Aviakonstruktorov New Time - RosStroyInvest 75 709 Housing Primorsky Prigorodny 4 Ultra City RBI 75 871 3-6 Primorsky Suzdalskoe /Novoorlovskaya Novoorlovsky - YIT 99 646 Primorsky Suzdalskoe/Novoorlovskaya - - Oykumena 210 700

Source: Knight Frank St Petersburg

The average price in the competitive zone ranges from 88.8 thousand RUR/ sqm in one of the buildings of Orlovsky Park residential complex and up to 155.4 thousand RUR / sqm in a business-class house.

The average price for comparable objects in the competitive area is 104.2 thousand RUR/sqm. Compared to 2017, the average asking price increased by 7%, due to a more expensive supply that occurred.

Table 39. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercial rub per sq m units mln rub premises: av. per price, rub per sq quarter m Ariosto! Housing 1 full 117 017 12 0,55 180 208 Ariosto! Housing 2 full 113 937 0 not on sale not on sale Polis na 1 phase (section pre-finishing 107 251 70 not on sale not on sale Komendantskom 18-20) Polis na 2 phase (section pre-finishing 103 658 81 not on sale not on sale Komendantskom 14-17) Polis na 3 phase (section 8- without 97 903 99 not on sale not on sale Komendantskom 13) finishing YOGA Housing 2 without 94 664 62 not on sale 155 000 finishing YOGA Housing 3 without 90 480 43 not on sale 156 154 finishing LEGENDA 2 phase different 136 125 42 0,60 not on sale Komendantskogo Chistoe nebo Housing 6 full 102 451 224 not on sale not on sale Chistoe nebo Housing 4.1 и 4.2 full 107 301 222 0,50 not on sale Chistoe nebo Housing 7.1 full 103 507 150 0,50 not on sale Chistoe nebo Housing 7.2,7.4,7.6 full 103 625 253 0,50 not on sale Nizhne-Kamenskaya 7 full 155 382 6 not on sale, not on sale, only only rent rent

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercial rub per sq m units mln rub premises: av. per price, rub per sq quarter m Orlovsky park 3А,4А full 97 226 41 not on sale 135 000 Orlovsky park Housing 1А full 91 889 2 not on sale not on sale Orlovsky park Housing 2А full 88 808 2 not on sale 110 000 UP-Komendantsky Housing 3.2 full 102 877 46 0,59 not on sale UP-Komendantsky Housing 3.3 full 99 858 57 0,59 95 000 New Time Housing 1 pre-finishing 91 790 104 not on sale not on sale New Time Housing 2 pre-finishing 89 915 54 not on sale not on sale Ultra City Housing 1, 2 without 106 496 45 not on sale 200 329 finishing Ultra City Housing 2,3 without 118 074 79 0,47 not on sale finishing Graffiti Housing 1.10 full 109 322 3 not on sale not on sale Graffiti Housing 1.7 full 113 735 49 0,70 not on sale Graffiti Housing 1.8 full 110 286 8 not on sale not on sale Graffiti Housing 1.9 full 101 209 start of not on sale not on sale sales Novoorlovsky Housing 1.6.1 pre-finishing 113 296 40 0,39 not on sale Novoorlovsky Housing 1.6.2 without 101 810 21 0,39 132 300 finishing

Source: Knight Frank St Petersburg

The average sales rate for comparable facilities in the competitive zone is 69 apartments per quarter; compared to 2017, the figure increased by 5%.

Location 14. Tsivilizatsiya

The competitive zone consists of 2 former industrial territories under complex redevelopment. First of all, residential complexes under construction in locations adjacent to the Dalnevostochny Ave., in the immediate vicinity of the Project, were considered as competitors. Secondly, the redevelopment area in Krasnogvardeysky district near Ladozhskaya metro station was considered.

“Rusanovka” residential community, where two large residential complexes are being built, was considered as an indirect competitor. In addition, residential complexes under construction in Vsevolozhsky district in the town of Kudrovo were taken into account.

10 residential complexes (RC) are being built in the zone of main competitive influence, 6 objects - in the zone of indirect competition.

The total living area of the objects on sale is 800.6 thousand sqm or 18.6 thousand apartments. Compared to 2017, the supply volume decreased by 15%, largely due to the reduction in construction volumes in Kudrovo.

The map of competition

Source: Knight Frank St Petersburg

Most of the projects in the competitive area refers to the mass segment housing. Magnifika Residence residential complex is an exception, being built as part of the large Magnifika project, but positioning itself in a higher class, due to improved quality characteristics.

The main competitors for the Object are such residential complexes as Pulse na Naberezhnoy by Setl City, Polis na Neve (Polis Group), as well as Renessans (AAG) and Dalnevostochny 15 (PIK).

Table 40. Characteristics of the competing projects

Residential сomplex Phase/ housing Address Developer Class Deadline Res. area, sq Number of m flats Dalnevostochniy 15 Housing 1А, 2А, 3А Dalnevostochniy 15 PIK C Jun-20 34 551 759 Renessans Housing 1 Dybenko 8 AAG C+ Mar-19 28 789 572 Renessans Housing 2 Dybenko 8 AAG C+ Jun-20 17 190 267 Renessans Housing 3 Dybenko 8 AAG C+ Sep-19 30 981 514 Zolotaya dolina section 1-3 Energetikov 4/1A Russkie samotsvety C+ Mar-20 13 744 231 Kollontay 2 Housing 1-4 Kollontay 2 Temp C+ Completed 40 385 820 Magnifika Lifestyle Housing N1 Magnitogorskaya 11 Bonava C+ Dec-21 5 637 86 Magnifika Lifestyle Housing N4 Magnitogorskaya 11 Bonava C+ Mar-24 6 142 104 Prinevsky Housing 7 Oktyabrskaya 122 TSDS C Dec-18 27 975 792 PULSE na naberezhnoy Housing 1 Oktyabrskaya 38 Setl City C Jun-21 32 214 814 PULSE na naberezhnoy Housing 2,3 Oktyabrskaya 38 Setl City C Jun-21 54 836 1 657 Polis na Neve Housing 1 Oktyabrskaya 44 Polis Group C Sep-19 35 266 1 046 Polis na Neve Housing 2 Oktyabrskaya 44 Polis Group C Dec-19 8 020 300 Veren Next Oktyabrskaya Oktyabrskaya 98/3 Veren Group C Sep-20 10 448 231 Dva angela Respublikanskaya 35 RosStroyInvest C+ Jun-19 17 300 280 Indirect competitors

Residential сomplex Phase/ housing Address Developer Class Deadline Res. area, sq Number of m flats Kapital Housing 5 Kudrovo Stroitelniy trest C Completed 37 500 692 Kapital Housing 7 Kudrovo Stroitelniy trest C Dec-19 69 105 1 205 Evropeysky park 1 Kudrovo uch.2 Investtorg C Jun-21 32 241 780 Noviy Okkervil 4 phase Kudrovo, Leningradskaya Otdelstroy C Completed 75 590 1 592 Noviy Okkervil 5 phase Kudrovo, Leningradskaya Otdelstroy C Dec-18 43 922 962 Noviy Okkervil 6 phase Kudrovo, Leningradskaya Otdelstroy C Dec-19 22 521 508 KudroVO! 1 phase Kudrovo, Prazhskaya Patriot-Neva C Mar-19 20 254 442 KudroVO! 2 phase, 1 phase (section 1-5) Kudrovo, Prazhskaya Patriot-Neva C Dec-19 13 482 299 KudroVO! 2 phase, 2 phase (section 6-12) Kudrovo, Prazhskaya Patriot-Neva C Dec-19 17 885 388 ParkLend Kudrovo, TSentralnaya/Prazhskaya Polis Group C Sep-21 71 371 2 453 Prinevsky Housing 4 Oktyabrskaya 122 TSDS C Dec-19 33 273 835 Source: Knight Frank St Petersburg

The total area of perspective facilities in the competitive area is 1.8 million sqm of housing, excluding the Project. BFA-Development projects at Oktyabrskaya nab. 54 and the project by Setl City on Oktyabrskaya nab. 38 are the most widescale complexes declared. Ca.14 future objects are declared in total.

Table 41. Perspective projects

District Address Project Developer Res. area, sq m Nevsky Krylenko 1A - Bazis 23 059 Krasnogvardejsky Magnitogorskaya 11 Magnifika Lifestyle Bonava 28 597 Krasnogvardejsky Magnitogorskaya 11V Windsor AAG 15 000 Krasnogvardejsky Magnitogorskaya 11/4 Ohta Moll SRV 77 900 Krasnogvardejsky Maloohtinsky 55 - Setl City 6 400 Krasnogvardejsky Maloohtinsky 68 - Galaktika 72 000 Krasnogvardejsky Dalnevostochniy 15 Dalnevostochniy 15 PIK 34 551 Nevsky Oktyabrskaya 122 Prinevsky TSDS 162 107 Krasnogvardejsky Oktyabrskaya 38 PULSE na naberezhnoy Setl City 696 930 Krasnogvardejsky Oktyabrskaya 54 - BFA-Development 400 000 Vsevolozhsky Kudrovo - TSDS 175 000 Vsevolozhsky Kudrovo uch.2 Geometriya Investtorg 24 475 Vsevolozhsky Kudrovo uch.2 Evropeysky park Investtorg 32 789 Vsevolozhsky Kudrovo KudroVO! Patriot-Neva 76 746

Source: Knight Frank St Petersburg

The average price in the main competitors varies from 87.8 thousand RUR/ sqm in “Prinevsky” residential complex to 144.2 thousand RUR/ sqm in a business-class house. The average price in competing projects is 117.6 thousand RUR/ sq m. In the indirect competitors, this figure is lower by 29% and amounts to 83.6 thousand RUR/ sqm.

Table 42. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercial rub per sq units mln rub premises: av. m per price, rub per sq quart m er Dalnevostochniy 15 Housing 1А, 2А, 3А full 109 161 38 1,05 not on sale Renessans Housing 1 pre-finishing 128 213 49 0,69 not on sale Renessans Housing 2 pre-finishing 125 997 22 0,70 122 400 Renessans Housing 3 pre-finishing 109 672 113 0,68 not on sale

Residential сomplex Phase/ housing Finishing Av. price, Sold Parking, Commercial rub per sq units mln rub premises: av. m per price, rub per sq quart m er Zolotaya dolina section 1-3 without 115 943 17 not on not on sale finishing sale Kollontay 2 Housing 1-4 full 126 690 83 not on not on sale, only sale rent Magnifika Lifestyle Housing N1 pre-finishing 137 862 0 1,43 not on sale Magnifika Lifestyle Housing N4 pre-finishing 144 189 14 1,37 not on sale Prinevsky Housing 7 full 87 801 195 not on 108 167 sale PULSE na Housing 1 different 122 155 0 not on not on sale naberezhnoy sale PULSE na Housing 2,3 full 116 362 240 not on 139 500 naberezhnoy sale Polis na Neve Housing 1 full 116 362 35 not on not on sale sale Polis na Neve Housing 2 without 111 872 22 not on not on sale finishing sale Veren Next without 93 204 29 not on not on sale Oktyabrskaya finishing sale Dva angela without 118 774 28 not on 174 808 finishing sale Indirect competitors Kapital Housing 5 pre-finishing 80 864 80 not on not on sale sale Kapital Housing 7 pre-finishing 80 508 73 not on 101 688 sale Evropeysky park 1 full 73 950 34 0,40 117 553 Noviy Okkervil 4 phase pre-finishing 88 444 10 not on not on sale sale Noviy Okkervil 5 phase without 98 418 19 not on not on sale finishing sale Noviy Okkervil 6 phase without 84 059 29 not on not on sale finishing sale KudroVO! 1 phase pre-finishing 77 687 43 not on 98 850 sale KudroVO! 2 phase, 1 phase (section pre-finishing 74 845 17 not on not on sale 1-5) sale KudroVO! 2 phase, 2 phase (section pre-finishing 73 533 41 not on not on sale 6-12) sale ParkLend without 95 346 302 not on not on sale finishing sale Prinevsky Housing 4 full 91 609 80 0,35 not on sale

Source: Knight Frank St Petersburg

Within the city limits, high rates of sales are noted in the objects of well-known developers, such as Setl City, AAG and TsDS. In suburban areas, Polis Group became the sales leader in 2018. High rates were also observed in the facilities by Stroitelny Trest and Patriot Neva companies.

From the point of view of a buyer, the developer's reputation plays an important role in choosing housing. In the mass segment, a developer’s reputation is based on the number of facilities built and commissioned on time.

The average sales rate for the main competitive zone is 59 apartments per quarter. This figure is slightly higher in the zone of indirect competition - 66 apartments per quarter.

Location 15. Novaya Okhta, Tsvetnoi Gorod, Ruchyi

The competitive zone is a new area of complex territorial development in the northern part of Vsevolozhsky district, where residential development began on former agricultural land of AOZT Ruch'i. This includes residential complexes under construction in Murino, New Devyatkino, Lavriki villages.

These requirements correspond to 26 residential complexes. The total living area of objects on sale at this location is 1.2 million sqm (32.7 thousand apartments). Compared to 2017, the volume of supply decreased by 11%.

There are only 2 commissioned houses on sale in the competitive area. 20% of the area of the main competitors is declared for commissioning until the end of 2019, most of the houses (65%) will be commissioned in the period from 2020 to 2024.

50% of projects of indirect competitors are to be put into operation until the end of 2019, another 16% in the period from 2020 to 2023.

Based on commissioning dynamics of of the realized objects, one can assume that most of the complexes will be commissioned after the stated deadlines.

All projects in this location refer to “economy” class housing and are primarily focused on mass demand. The average apartment area in the competitive influence zone is 40.2 sq m.

The competitive influence zone includes projects of direct and indirect influence. 70% of apartments belong to objects of direct competitive influence.

The map of competition

Source: Knight Frank St Petersburg

Table 43. Characteristics of the competing projects

Residential сomplex Phase/ housing Address Developer Class Deadline Res. area, Numbe sq m r of flats

Enfild 1 phase Bugry Arsenal- C Dec-19 21 890 505 nedvizhimost

Murino 2019 3,4 Bugry Samolyot LO C Sep-19 70 060 2 004

UP-kvartal Svetlanovsky 2 Bugry FSK Lider C Dec-18 56 412 879

UP-kvartal Svetlanovskiy 1 Burgy FSK Lider C Dec-18 17 045 487

Murinskie vysoty Housing 1 Grafskaya Zapstroy C Jun-21 10 233 254

Murinskie vysoty Housing 2 Grafskaya Zapstroy C Jun-21 10 233 254

Murinskie vysoty Housing 3 Grafskaya Zapstroy C Jun-21 10 233 254

Lampo Housing 1 Lavriki Petrostroy C Dec-20 24 829 750

Aviator Housing 9 Murino Mavis C Sep-20 17 595 544

Kraski leta Housing 15 Murino Polis Group C Dec-20 14 939 538

Residential сomplex Phase/ housing Address Developer Class Deadline Res. area, Numbe sq m r of flats

Murino 2020 Housing 1,2 Murino Samolyot LO C Dec-20 58 603 1 654

Viktoriya Housing 4(13) Murino Mavis C Jun-20 18 107 484

Forvard Housing 2 Murino Mavis C Dec-19 7 915 204

GreenLandiya Housing 2.8 Murino Setl City C Sep-19 53 000 1 564

Kraski leta Housing 13 Murino Polis Group C Dec-20 11 706 406

Murinsky Posad 3 Murino TSDS C Sep-20 50 956 1 372

GreenLandiya Housing 2.10, 2.11 Ruchji Setl City C Dec-18 49 501 1 490

GreenLandiya Housing 2.12,2.13 Ruchji Setl City C Jun-20 72 416 2 162

GreenLandiya Housing 2.9 Ruchji Setl City C Sep-19 15 203 444

ID Murino Housing 1 Ruchji Evroinvest C Mar-21 21 540 578 Development

ID Murino Housing 2 Ruchji Evroinvest C Sep-23 24 111 652 Development

Murino Park Housing 1 Ruchyovskiy Zapstroy C Jun-24 30 716 900

Urbanist Housing 1,2 SAOZT Ruchji Mavis C Jun-24 43 933 1 368

TSDS Severniy Housing 1,2,3 SAOZT Ruchji TSDS C Dec-20 37 396 872

TSDS Severniy Housing 4,5 SAOZT Ruchji TSDS C Dec-20 26 262 641

Enfild Housing 6 Yuzhnaya Arsenal- C Mar-21 21 532 468 Nedvizhimost

Enfild Housing 7 Yuzhnaya Arsenal- C Mar-21 23 999 533 Nedvizhimost

Tsveta Radugi Housing 2 SAOZT Ruchji Mavis C Completed 7 005 160

Tsveta Radugi Housing 4 SAOZT Ruchji Mavis C Dec-23 6 398 156

Indirect competitors

Yuventa Housing 1 Bugry Konnolahtinskiy 55 C Mar-20 14 357 391

Materik 1 Murino Petrostroy C Dec-18 14 398 549

Materik 2 Murino Petrostroy C Dec-18 15 876 618

Materik 3 Murino Petrostroy C Jun-19 13 392 486

Materik 5 Murino Petrostroy C Dec-21 14 835 503

Severnaya palitra 1 Murino MonArh- C Completed 26 290 308 Development

Territoriya 1,2 Murino Lider Group C Jun-19 23 869 642

Territoriya 3,4,5 Murino Lider Group C Jun-19 38 796 1 129

Tri kita 3 phase Murino Lider Group C Dec-19 68 649 1 816

Residential сomplex Phase/ housing Address Developer Class Deadline Res. area, Numbe sq m r of flats

Tridevyatkino tsarstvo Housing 11 Murino Unisto Petrostal C Dec-18 24 599 503

Tsveta Radugi Housing 3 Murino Mavis C Dec-23 26 312 730

Viktoriya Housing 8 Murino Mavis C Jun-20 5 559 137

VITAMIN Murino Lider Group C Dec-18 42 766 1 135

Dom na Ozernoy Novoe Devyatkino Russkaya Skazka C Sep-19 44 728 1 210

Source: Knight Frank St Petersburg

The total area of the nearest perspective projects in the competitive zone is about 2 million sqm of housing. An increase in competition is observed in this location due to the large number of facilities under construction. However, against the background of the existing competitors' supply of small apartments, there is a likely shortage of comfortable and affordable housing in the Projects' location.

Table 44. Perspective projects

District Address Project Developer Res. area, sq m Arsenal- Vsevolozhsky Yuzhnaya Enfild 218 589 Nedvizhimost Novoe Vsevolozhsky Novoe Devyatkino Dalpiterstroy 144 000 Devyatkino Evroinvest Vsevolozhsky Ruch'i ID Murino 45 927 Development Vsevolozhsky Ruchevsku Murino Park Zapstroy 7 663 Vsevolozhsky Novoe Devyatkino Udacha ISK Vita 24 605 Vsevolozhsky Bugry Yuventa Konnolahtinsky 55 21 996 Vsevolozhsky Lavriki - Lider Group 8 000 Vsevolozhsky Murino Tri kita Lider Group 168 000 Vsevolozhsky Murno Aviator Mavis 173 332 Vsevolozhsky Murno Urbanist Mavis 14 964 Vsevolozhsky SAOZT "Ruch'i" Cveta Radugi Mavis 59 020 Severnaya Monarh- Vsevolozhsky Murino 46 439 palitra Development Vsevolozhsky Lavriki Lampo Petrostroy 36 128 Vsevolozhsky Murino Kraski Leta Polis group 19 950 Vsevolozhsky Lesnaya Gamma PromServis 20 357 Severnaya Vsevolozhsky Centralnoe otdelenie Unisto Petrostal 47 268 kapella TSDS Murinsky Vsevolozhsky Murino TSDS 371 383 Posad Vsevolozhsky Murino TSDS Severniy TSDS 116 982 Novye Vsevolozhsky Garazhniy proezd TSDS 417 000 gorizonty

Source: Knight Frank St Petersburg

The average price in analogous facilities varies from 62.3 thousand RUR/ sqm to 84.8 thousand RUR/ sqm. The average price per square meter among the main competitors is 82.1 thousand RUR. For comparison, in the indirect competitors, which are significantly removed from the nearest metro station, this figure is 16% lower and amounts to 68.9 thousand RUR/ sqm.

Table 45. Average price, average rate of sales of the competition projects

Residential сomplex Phase/ housing Finishing Av. price, Sold units Parking, Commercial rub per sq per mln rub premises: av. price, m quarter rub per sq m Enfild 1 phase full 90 946 66 not on sale 126 000 Murino 2019 3,4 full 86 258 214 not on sale not on sale UP-kvartal Svetlanovsky 2 without finishing 90 820 64 not on sale not on sale UP-kvartal Svetlanovskiy 1 full 90 295 58 not on sale not on sale Murinskie vysoty Housing 1 pre-finishing 82 011 51 not on sale not on sale Murinskie vysoty Housing 2 pre-finishing 81 528 33 not on sale not on sale Murinskie vysoty Housing 3 pre-finishing 79 032 17 not on sale not on sale Lampo Housing 1 pre-finishing 64 340 47 not on sale not on sale Aviator Housing 9 full 71 753 88 not on sale not on sale Kraski leta Housing 15 full 83 115 138 not on sale not on sale Murino 2020 Housing 1,2 full 84 039 438 not on sale not on sale Viktoriya Housing 4(13) without finishing 91 302 106 not on sale not on sale Forvard Housing 2 without finishing 67 219 43 not on sale not on sale GreenLandiya Housing 2.8 full 104 808 140 not on sale 170 000 Kraski leta Housing 13 without finishing 77 440 133 not on sale 158 397 Murinsky Posad 3 without finishing 75 715 228 not on sale not on sale GreenLandiya Housing 2.10, 2.11 full 107 054 144 0,50 not on sale GreenLandiya Housing 2.12,2.13 pre-finishing 100 281 210 0,50 141 750 GreenLandiya Housing 2.9 pre-finishing 110 911 16 not on sale 162 000 ID Murino Housing 1 full 82 826 220 not on sale not on sale ID Murino Housing 2 full 76 244 11 not on sale not on sale Murino Park Housing 1 without finishing 85 096 1 not on sale not on sale Urbanist Housing 1,2 full 66 017 46 not on sale not on sale TSDS Severniy Housing 1,2,3 full 77 347 72 not on sale 106 200 TSDS Severniy Housing 4,5 full 73 658 11 not on sale 99 000 Enfild Housing 6 full 79 000 57 not on sale not on sale Enfild Housing 7 full 77 903 96 not on sale not on sale Tsveta Radugi Housing 2 without finishing 61 133 14 not on sale not on sale Tsveta Radugi Housing 4 without finishing 63 915 10 not on sale not on sale Indirect competitors Yuventa Housing 1 without finishing 62 321 44 not on sale 117 000 Materik 1 without finishing 69 420 52 0,40 not on sale Materik 2 without finishing 69 420 66 not on sale not on sale Materik 3 without finishing 67 774 52 not on sale not on sale Materik 5 without finishing 66 896 88 not on sale not on sale Severnaya palitra 1 without finishing 67 528 10 not on sale not on sale Territoriya 1,2 without finishing 69 814 54 not on sale not on sale Territoriya 3,4,5 without finishing 68 369 100 not on sale 114 000 Tri kita 3 phase different 72 603 118 not on sale not on sale Tridevyatkino tsarstvo Housing 11 full 68 605 35 not on sale not on sale, only rent Tsveta Radugi Housing 3 without finishing 67 041 85 not on sale not on sale

Residential сomplex Phase/ housing Finishing Av. price, Sold units Parking, Commercial rub per sq per mln rub premises: av. price, m quarter rub per sq m Viktoriya Housing 8 without finishing 84 778 26 not on sale not on sale VITAMIN without finishing 62 722 61 not on sale not on sale Dom na Ozernoy full 67 111 30 not on sale not on sale

Source: Knight Frank St Petersburg

The average sales rate for objects of the main competitive group is 96 apartments per quarter, in objects of indirect competition - 59 apartments per quarter.

High sales rates (more than 200 apartments per quarter in total by phases) are noted in the objects by major developers, such as: Setl City, Polis Group, Euroinvest Development, Samolet LO, Leader Group, Arsenal Nedvizhimost'. In the mass segment, the reputation of the developer is important when choosing housing for a buyer. The reputation of the developer is based on the number of facilities built and commissioned on time. The confidence that an object will be built and delivered on time is important for a buyer.

Location 16. Rzhevka

Rzhevka neighborhood is the Project's competitive zone. Due to the fact that at present time there are no objects under construction in this location, an indirect competition in Yanino was considered.

The map of competition

Source: Knight Frank St Petersburg

5 residential complexes are on sale. The total living area of the facilities in this location is 160.9 thousand sq m or 4.1 thousand apartments. Compared with the results of 2017, the volume of supply in the location has significantly decreased - by 48%, due to completion of sales in phase 7 in Yasno.Yanino and in two buildings of “New Yanino” residential complex. The new phases put on sale turned out to be less than the completed ones.

All projects are positioned in C class and targeted at the mass buyer.

80% of area in the competitive environment is scheduled for commissioning during 2019 and 2021. Launch dates were postponed for the most part of objects planned to be commissioned in 2018.

Table 46. Characteristics of the competing projects

Residential Phase/ Address Developer Clas Deadline Res. Numb сomplex housing s area, sq er of m flats Novoe Yanino Housing А Yanino TSDS C Dec-19 34 083 969 Yanila 2 оч - Yanino Lenstroytrest C Dec-19 23 623 519 Housing 4,5,6,7 Rzhevskaya 1,2 Yanino-1 Stroyresurs C Dec-18 1 080 36 usadba Yanila 3 phase - Yanino-1 Lenstroytrest C Jun-21 15 605 383 Housing 1

Residential Phase/ Address Developer Clas Deadline Res. Numb сomplex housing s area, sq er of m flats Yanila 3 phase - Yanino-1 Lenstroytrest C Jun-21 2 974 62 Housing 2 Yasno.Yanino Housing 1.1- Yanino-1 KVS C Dec-18 17 400 604 1.4 Yasno.Yanino Housing Yanino-1 KVS C Sep-21 33 859 860 8.1,8.2,8.4,8.5 ZemlYanino 1 phase Yanino-1 Patriot-Neva C Mar-19 18 284 369 ZemlYanino 2 phase Yanino-1 Patriot-Neva C Dec-18 14 010 284 Source: Knight Frank St Petersburg

The location presents 10 future projects with a total area of 2.2 million sq m of housing. The most large-scale declared complexes are the projects by “Teorema”, “KVS” and “NPP Krasnoznamenets” companies.

Table 47. Perspective projects

District Address Project Developer Res. area, sq m Krasnogvardejsky Kommuny 67 - Teorema 546 895 Krasnogvardejsky Himikov/Kommuny - Teorema 202 000 Vsevolozhsky Yanino-1 Yanila Lenstroytrest 164 034 Vsevolozhsky Yanino-1 Yanino park SU-155 28 543 Krasnogvardejsky Kapsyulnoe 44 - NPP Krasnoznamenec 520 000 Krasnogvardejsky Ryabovskoe/Belomorskaya Stereos Renovaciya SPb 146 444 Krasnogvardejsky 2 Zhernovskaya 48 - Russky sever 15 800 Krasnogvardejsky Yanino-1 Yasno.Yanino KVS 303 368 Vsevolozhsky Yanino-1 Yarky Normann 47 691 Vsevolozhsky Yanino-1 Yanino park SU-155 15 393

Source: Knight Frank St Petersburg

Competitors are comparable with the Project in their location and transport accessibility. All are being built in the zone of new residential development with a limited amount of social and commercial infrastructure. The important role is played by the complicated transport accessibility to new neighborhoods. Difficult transport accessibility to Kovalevo settlement, due to the high congestion of Ryabovskoe highway is an important factor that needs to be taken into account when launching the Project for sale. Construction of tram lines to the new neighborhood by the Customer can have a favorable effect on demand.

More than half of all apartments in the competitive area are offered without finishing. Only 1 object - “Yanila” is being built with a full finishing, in the rest of the complexes apartments are being implemented with preparation for final finishing.

The average price in analogous facilities varies from 45.6 thousand RUR / sqm to 83.7 thousand RUR/ sqm without finishing. The maximum prices are represented in “Novoe Yanino” residential complex. Thus, the average price per square meter in competing projects is 65.7 thousand rubles.

Table 48. Average price, average rate of sales of the competition projects

Residential Phase/ Finishing Av. price, Sold units Parking, mln Commercial сomplex housing rub per sq per rub premises: av. m quarter price, rub per sq m Novoe Housing А without finishing 83 726 225 not on sale not on sale Yanino Yanila 2 оч - full 72 996 48 not on sale not on sale Housing 4,5,6,7 Rzhevskaya 1,2 without finishing 45 552 0,5 not on sale not on sale usadba Yanila 3 phase - different 65 858 34 not on sale not on sale Housing 1 Yanila 3 phase - different 61 956 2 not on sale not on sale Housing 2 Yasno.Yanin Housing 1.1- pre-finishing 70 615 98 not on sale 95 750 o 1.4 Yasno.Yanin Housing pre-finishing 68 434 117 not on sale 111 427 o 8.1,8.2,8.4,8.5 ZemlYanino 1 phase pre-finishing 61 482 21 not on sale not on sale ZemlYanino 2 phase pre-finishing 60 781 27 not on sale not on sale

Source: Knight Frank St Petersburg

High sales rates are noted in the objects by well-known developers, such as TsDS and KVS, where the average sales rate reaches 100-225 apartments per quarter.

The average sales rate for the competitive zone per phase is about 64 apartments per quarter.

Location 17. Ruchyi

The territory comprising eastern part of Kalininsky and northern parts of Krasnogvardeisky districts is the competitive area of the analyzed Project. C-class residential complexes were considered as competitors.

One residential complex - “Dom na Obruchevyh” by “Etalon Group” company is on sale in Kalininsky district. The main supply volume is in Krasnogvardeysky district.

The map of competition

Ruchyi

Source: Knight Frank St Petersburg

The total living area of the objects on sale in this location is 276 thousand sq m or 5.9 thousand apartments. In course of the year, Ohta Haus, Dom na Lvovskoy, and TsDS Polyustrovo residential complexes went on sale. Two commissioned houses are located in the competitive zone, 17% of the areas are to be put into operation during 2019 and 2020. Most of the projects are scheduled for commissioning by the end of 2022.

Table 49. Characteristics of the competing projects

Residential сomplex Phase/ Address Developer Class Deadline Res. Number housing area, sq of flats m

Ohta Haus Housing 6.1 Lagody 6-7 Etalon Group C Mar-22 20 358 420

Ohta Haus Housing 6.3 Lagody 6-7 Etalon Group C Mar-22 18 428 420 Ohta Haus Housing 7.1 Lagody 6-7 Etalon Group C Mar-22 20 966 378 Ohta Haus Housing 7.3 Lagody 6-7 Etalon Group C Mar-22 20 098 465

Dom na Lvovskoy Housing 1-4 Lvovskaya 21 Megalit C Sep-20 33 810 800 Kristall Polyustrovo M.Tuhachevskogo/Stasovoy Etalon Group C+ Completed 42 506 718 Dom na Obruchevyh Obruchevyh 5A Etalon Group C Completed 36 400 765

TSDS Polyustrovo 15 section Piskarevskiy 25 TSDS C Jun-22 78 308 1 779 Iva Dom Revolyutsii 12/2 Demetra C Mar-19 5 213 105

Source: Knight Frank St Petersburg

8 complexes with a total living area of 1.7 million sq m were announced among future projects in the competitive zone.

Table 50. Perspective projects

District Address Project Developer Res. area, sq m

Krasnogvardejsky Kommuny 67 - Teorema 546 895

Krasnogvardejsky Himikov/Kommuny - Teorema 202 000

Krasnogvardejsky Kapsyulnoe 44 - NPP Krasnoznamenec 520 000

Krasnogvardejsky Ryabovskoe/Belomorskaya Stereos Renovaciya SPb 146 444

Krasnogvardejsky 2 ZHernovskaya 48 - Russky sever 15 800

Kalininsky Grazhdansky 14 - Tajms 40 000

Kalininsky Gazhdansky 32 - AVK-invest 4 706

Kalininsky Chugunnaya 2 - VTE 200 000

Source: Knight Frank St Petersburg

The average price in competing properties varies from 83.7 to 121.9 thousand RUR/ sq m. The lowest prices are presented in “Okhta Haus” residential complex (developer “Etalon Group”), since the object is significantly remote from metro stations and is being built in the midst of a former industrial area near a railway line. "Iva Dom" (developer "Demetra") is the most expensive object, since it is offered with a pre-finishing and has an early commissioning period compared to the other complexes in the competitive area.

The average price in the competitive area is 101 thousand RUR/ sq m. Most of the apartments are delivered without finishing.

Table 51. Average price, average rate of sales of the competition projects

Residential Phase/ Finishing Av. price, Sold units Parking, mln Commercial сomplex housing rub per sq per rub premises: av. m quarter price, rub per sq m

Ohta Haus Housing 6.1 different 93 956 90 not on sale not on sale

Ohta Haus Housing 6.3 without finishing 93 970 25 not on sale not on sale

Ohta Haus Housing 7.1 without finishing 83 665 12 not on sale not on sale

Ohta Haus Housing 7.3 without finishing 85 850 23 not on sale not on sale

Residential Phase/ Finishing Av. price, Sold units Parking, mln Commercial сomplex housing rub per sq per rub premises: av. m quarter price, rub per sq m

Dom na Housing 1-4 without finishing 101 094 90 0,53 110 000 Lvovskoy

Dom na Housing 5 without finishing 78 984 12 not on sale 110 000 Lvovskoy

Kristall without finishing 97 705 21 not on sale not on sale Polyustrovo

Dom na without finishing 119 421 60 not on sale not on sale Obruchevyh

TSDS 15 section different 112 334 170 0,41 143 600 Polyustrovo

Iva Dom pre-finishing 121 883 14 not on sale not on sale

Source: Knight Frank St Petersburg

High sales rates are noted in the objects by large developers, such as Etalon Group and TsDS, where the average sales rate for a complex reaches 150-170 apartments per quarter.

The average sales rate in the competitive zone per one phase is about 56 apartments per quarter.

Residential market overview of Moscow

Business Class

Executive summary

 In 2018, sales started in 25 new projects against 19 complexes in 2017.

 The volume of demand continues to grow: in Q4, the indicator increased by 19% compared with the previous year, 4,440 transactions were concluded.

 The share of lots exhibited with finishing increased significantly - up to 26% of the total supply. At the end of 2018, lots with finishing were offered in 31 projects against 16 complexes in 2017.

 Next year, we expect a more substantial growth in the average weighted price of 1 sqm, in the range of 5– 7%, which will be facilitated by the following factors: the transfer of developers to a new scheme of work (project financing), which will lead to an increase in the cost of developers by at least 5–8%; VAT increase from 18% to 20%; a possible increase in contributions to the Fund for the Protection of Shareholders in 5 times - from 1.2% to 6%; inflation, projected in 2019 at 5%. In such circumstances, developers are likely to actively use the system of discounts and promotions, of various types of installments with an increase in the time frame to stimulate consumer activity.

Supply

According to the results of 2018, the primary housing market of Moscow business class is represented by 103 complexes. In the fourth quarter, the total supply of apartments and business class apartments decreased by 3% and amounted to 14.6 thousand lots with a total area of more than 1.1 million sqm and a total value of more than 298.6 billion rubles. In 2018, sales started in 25 new projects, 8 of them in Q4 2018. For the last 3 months of 2018, sales have started in such residential complexes as: ILove (Kortros), SOHO + NOHO (WainBridge), Sinatra (Glincom), RED7 (Osnova Group of Companies), Mitte (Hutton Development), Aquatoria (WainBridge), ONYX (Tashir Group), Danilov Home "(" SMU-6 Investments "), and also in new lines of projects already underway.

At the end of 2018, in the supply structure, the share of apartments decreased by 6 percentage points, reaching 74%; the proportion of apartments, respectively, was 24%. The decline is due both to the high level of demand specifically for the format of apartments (86% of all transactions), and with the release of a new supply volume in the apartment segment.

In the business class segment, the main supply volume is formed by flats and apartments ranging from 60 to 90 sqm. In the fourth quarter of 2018, the share of this range increased by 2 percentage points, reaching 40%, which is equivalent to 5,847 lots. The share of the most compact flats and apartments, with an area of up to 40 sqm, remained at the same level - 7%. The largest lots (with an area of more than 120 sqm) account for a share of 9%, which decreased by 1% over the quarter.

The average supply area for the quarter decreased insignificantly (by 1 percentage point) and in 2018 amounted to 76 sqm. In the new projects, which started in the fourth quarter, the most compact lots with an area of 26–27 sqm are represented in the Mitte (Hutton Development) and SOHO + NOHO (WainBridge)

complexes. The largest lots in new projects that were released in Q4 are being implemented in the Aquatoria complex from WainBridge, these are flats with an area of 245–246 sqm.

It is worth noting that over the year, the share of lots on display with finishing increased significantly - by 15 percentage points, reaching 26% of the total supply. If a year earlier, the lots with finishing were offered in 16 complexes, then by the end of 2018 - already in 31 projects. In absolute terms, the number of lots with finishing in the fourth quarter of 2018 amounted to 3,756 units, the volume of such an offer increased 1.6 times over the quarter. In all new projects that started in the fourth quarter of 2018, buyers have the opportunity to purchase lots with finishing or White Box finishing.

At the end of the year, the average value of the lot in the primary housing market of a business class amounted to 20.5 million rubles, while in the quarter the indicator slightly decreased - by 0.4%. The most budget lots, worth up to 5 million rubles, are represented in two projects: this is Silver - apartments of 27–31 sqm, as well as in the new building of the complex Freedom - studio flats of 24 square meters. m. The highest budgets, more than 200 million rubles, recorded in the projects "VTB Arena Park" in the building. 2 for apartments with full finishing and for flats in the complex RedSide.

In the structure of the proposal at a cost of more than half (52%) of all flats and apartments put up for sale, it was formed in lots ranging from 10 to 20 million rubles, or 7,576 units. In the second place are still proposals in the budget from 20 to 30 million rubles, which accounted for 24% of the total number of lots, or 3,469 pieces. The shares of the two cost ranges for the quarter added by 2 percentage points, respectively. The smallest part (2%) is represented by the most expensive flats and apartments cost more than 60 million rubles, in absolute terms it is 317 lots.

For the quarter, the structure of the supply for the stage of construction readiness has not changed significantly. The largest number of lots is still represented in the buildings, where finishing and facade works are carried out (37%). The share of lots in commissioned or preparing for delivery buildings in Q4 increased by 3 pp and reached 21%. In the last quarter of the year, developers put into operation a significant number of objects: – Tsarskaya Ploshchad (1st point), Mosfilmovsky (building 13), Serebryany Bor House, Prime Time (1st place), Monodom, Timiryazev Park, Dostoyanie, Presnya City ”,“ Zilart ”(lots 3–6),“ Khoroshevsky ”(building 1–6, 9– 12,12A, 13–15),“ Baikonur ”.

Despite the quarterly decline in the share by 2 percentage points, the largest volume of lots is still represented in the Zapadniy Administrative District - 22% of the total supply. The share of Severniy Administrative Okrug for the quarter increased by 3 percentage points and reached 20%, which is associated with the release of two new projects in the district. At the end of the year, Severo-vostochniy Administrative District is in third place, accounting for 14.3% of the total supply. Quarterly growth (+2.3 percentage points) in this district is also associated with the release of a new line in the Silver Fountain project. The Tsentralniy Administrative District still ranks fourth - 13.7% of the total supply. The smallest volume of supply was fixed in Vostochniy Administrative Okrug and Yugo-Vostochniy Administrative district, whose share did not change in the quarter and at the end of the year amounted to 2%, respectively.

Table 18. Objects entered to the market in 2018

Start of Number Date of Type of real Availability of Complex name project District Developer of lots (on commissio estate finishing sales project) ning New projects Capital Towers Q1 2018 TSAO, Presnenskiy Flats Capital Group 720 Q1 2021 Total fit-out Freedom SZAO, Horoshevo- "Donstroy" Q1 2018 Flats 786 Q2 2020 Without finishing Mnevniki Level YUAO, Danilovskiy Level Group Q1 2018 Apartments 157 Q3 2019 Total fit-out Paveletskaya Story Q1 2018 YUAO, Danilovskiy Apartments Stone Hedge 182 Q4 2019 Without finishing Beregovoy Q1 2018 ZAO, Filevskiy Park Flats "Glavstroy" 1 101 Q1 2020 White Box Kryl'ya Q1 2018 ZAO, Ramenki Flats "Lider-Invest" 1 473 Q4 2020 Without finishing Nebo ZAO, Ramenki Capital Group White Box / Without Q1 2018 Flats 1 202 Q4 2020 finishing Prime Park SAO, Horoshevskiy Optima Total fit-out / White Q1 2018 Flats 2 525 Q4 2023 Development Box FiliCity ZAO, Filevskiy Park MR Group White Box / Without Q1 2018 Flats 1 127 Q2 2020 finishing Hill8 Q2 2018 SVAO, Ostankinskiy Apartments "Siti-XXI vek" 295 Q1 2020 Total fit-out Spires ZAO, Ochakovo- Tekta Group Q2 2018 Flats 548 Q1 2021 Without finishing Matveevskoe Tatlin TSAO, Basmannyy Vesta Q2 2018 Apartments 130 Q2 2020 Total fit-out Development Play Q2 2018 YUAO, Danilovskiy Apartments Stone Hedge 221 Q4 2020 Without finishing Co-loft Q2 2018 YUAO, Danilovskiy Apartments "Koldi" 223 Q4 2019 Without finishing Bauman House Q3 2018 TSAO, Basmannyy Flats Capital Group 342 Q2 2021 Without finishing Big Time SZAO, Horoshevo- Tekta Group Q3 2018 Flats 670 Q4 2020 Without finishing Mnevniki Chkalov TSAO, Basmannyy Ikon- Q3 2018 Apartments 396 Q4 2021 Total fit-out Development ILove SVAO, Ostankinskiy GK "Kortros" Without finishing/ Q4 2018 Flats 1068 Q3 2021 Total fit-out/White Box SOHO+NOHO Q4 2018 SAO, Begovoy Apartments WainBridge 338 Q2 2020 Total fit-out Sinatra Q4 2018 TSAO, Presnenskiy Apartments Glincom 82 Q3 2020 White Box RED7 Q4 2018 TSAO, Krasnosel'skiy Apartments GK "Osnova" 289 Q2 2022 Total fit-out MITTE YUAO, Danilovskiy Hutton Q4 2018 Apartments 116 Q2 2020 Total fit-out Development Aquatoria Q4 2018 SAO, Levoberezhnyy Flats WainBridge 624 Q3 2022 Total fit-out ONYX YUZAO, GK "Tashir" Q4 2018 Flats 540 Q2 2019 White Box CHeremushki Danilov dom YUAO, Danilovskiy "SMU-6 Q4 2018 Apartments 396 Q2 2019 White Box Investitsii" New phases Life Kutuzovskiy ZAO, Mozhayskiy GK Pioner Q1 2018 Flats 243 Q2 2019 Without finishing (bld. 4) Mosfil'movskiy ZAO, Ramenki MonArh Q1 2018 Flats 120 Q2 2019 Without finishing (bld. 14) Rezidentsii TSAO, Basmannyy AFI arhitektorov (bld. Q1 2018 Flats Development 219 Q1 2020 Without finishing 6, 7, 9) Simvol YUVAO, Lefortovo Donstroy («Svoboda» bld. Q1 2018 Flats 179 Q4 2019 Without finishing 4) Prime Time (2-ya SAO, Horoshevskiy OOO "Atlantik" White Box / without Q2 2018 Flats 266 Q1 2020 och.) finishing Zilart (lot 17) Q2 2018 YUAO, Danilovskiy Flats LSR 556 Q2 2021 Without finishing City Park, bld. 1 i TSAO, Presnenskiy «MonArh» Q3 2018 Flats 369 Q3 2020 Without finishing 6 Silver bld. 4 SVAO, Sviblovo AFI Q3 2018 Apartments 78 Q1 2019 Without finishing Development Serebryanyy SVAO, Alekseevskiy "Etalon-Invest" более 1 Q4 20018 Flats Q4 2021 Without finishing fontan bld. 4 608

Commercial terms

The average price of 1 sqm for the quarter increased by 0.4% and for the year amounted to 269 thousand rubles. Three leaders did not change: the highest weighted average price of 1 sqm recorded in the Tsentralniy Administrative District - 346 thousand rubles, where the quarterly drop was -1%. Next in terms of the weighted average bid price, the Severniy Administrative District with a value of 301 thousand rubles follows. and the maximum quarterly decline in the index by 7%, which is associated with the release of a significant amount of new supply at investment prices. Closes the three leaders of the Yugo-Zapadniy Administrative district with an indicator of 278 thousand rubles. and a quarterly increase of 4% due to an increase in the stages of construction readiness of projects, including the commissioning of the VAVILOVE complex (INGRAD), as well as the launch of the new ONYX project (GK «Tashir» ) already at the stage of facade works. The weighted average price of 1 square meter increased by 6%. m in Zapadniy Administrative District and Yugo-Vostochniy Administrative District also by increasing the stages of construction readiness of projects located in the districts under consideration.

Demand

The volume of demand in Q4 increased by 19% compared with the previous. Number of transactions - 4.5 thousand. In the fourth quarter, the average transaction area decreased by 3% to 70 sqm, while the average budget remained at the same level - 18 million rubles.

The sales leaders in the business class segment in 2018 were Zilart complexes (LSR) - 6% of the total number of lots sold, Simvol (Donstroy) 5%, and Dynasty (Sezar Group) - 4% and the “Heart of the Capital” (“Donstroy”) - 4%. The top three sales in Q4 of 2018 did not change compared with the previous period. However, some projects were reversed: the Zilart complex (LSR) still holds the first place, the Symbol (Donstroy) is now in second position, and the HeadLiner (Kortros) is in third place. The top three accounts for 15% of the total number of transactions concluded in the fourth quarter of 2018. It is also worth noting that sales in the Baikonur (Vostok Development) and Heritage (Gals Development) complexes ended in the last quarter of the year.

More than half (58%) of the total volume of demand still accounts for 3 districts – Zapadniy Administrative district, Severniy Administrative district and Tsentralniy Administrative district . Leadership in the number of transactions retains the Zapadniy Administrative District, which accounts for 25.5% of total sales. The largest number of transactions in the district is recorded in such projects as Sky (Capital Group), Zapadniy Port (PIK) and Life Kutuzovsky (Pioneer). Quarterly growth of transactions in the company amounted to 0.5 pp. The second place is occupied by the CAO (17%), which added 1 pp in the quarter. The top three in terms of demand are closed by the CAO with a share of 15% (the indicator fell by 2 pp ). Earlier this district ranked second in terms of demand. The change of leaders is associated with sales growth in residential complexes of the Northern Administrative District (Tsarskaya Ploshchad, SOHO + NOHO). Outsiders in terms of demand remain SEAD with a share of 5% (only one business class complex is being implemented) and HLW - 0.5%.

The structure of transactions at cost in IV quarter did not change significantly. The most in demand among buyers are still apartments and apartments worth from 10 to 20 million rubles, which in the structure of demand for new buildings of business class occupy 54% of the total volume of transactions. On lots in the range of 20- 30 million rubles. accounting for 19%. The most budget lots in the structure of demand account for 18%.

In the structure of demand for lots in the 4th quarter of 2018, the share of transactions with apartments and apartments with an area of 40-60 sqm (up to 32%) increased by 3 percentage points, which, first of all, is connected with new projects released at start prices, in which lots of the considered areas are realized. The largest volume of transactions (68%) is made with lots of 40–90 sqm, of which apartments and 60–90 sqm occupied 36%.

It is worth noting that a strong driver of demand is still the mortgage, the share of transactions involving which in Q4 was 34%.

Economy and Comfort class

The main conclusions and trends in the market of new buildings economy and comfort class in 2018

As a landmark event for the real estate market in 2018, it is necessary to note the first stage of the reform of the equity construction mechanism, which resulted in the transition of the market to project financing. Amendments to the 214th Federal Law on Participation in the Shared Construction of Apartment Buildings and Other Real Estate Objects entered into force on July 1, 2018. The main provisions of the amendments included the introduction of escrow accounts, mandatory banking support of the transaction, the prohibition of housing certificates and housing cooperatives.

The second stage of the reform will come in force on July 1, 2019, when it is planned to end the conclusion of equity construction contracts in the real estate market. The goal of the reform is to provide guarantees for property buyers, including a final solution to the problem of deceived co-investors.

The new rules of the game will lead to an even greater concentration of the market, from which small companies will have to leave. The industry will remain mainly developers with reliable sources of funding, both own and banking.

In the short term, as a result of legislative innovations, an increase in the cost of housing is expected, as well as an active marketing of new projects.

Supply and demand in the market of new buildings of economy and comfort class

From the point of view of replenishing the primary mass housing market with new projects, developer activity remained high during 2018: sales opened in 30 residential complexes, 24 of which were launched to the market during the second half of 2018. This indicator is almost identical to the previous 2017, when 29 new projects started on the market.

Chart 23. Dynamics of supply volume and average prices in the primary market of economy and comfort class

180 000 25 000

150 000 20 000

120 000 15 000

90 000 10 000

60 000 5 000

30 000 - IVQ4 кв.2016 2016 I кв.Q1 20172017 II кв.Q2 20172017 III кв.Q3 2017 IV кв.Q4 2017 I кв.Q1 20182018 II кв.Q2 20182018 III кв.Q3 20182018 IV кв.Q4 20182018

Объем Econom экспозиции-class supply, экономкласса, units шт. ОбъемComfort экспозиции-class supply, комфорткласса, units шт.

СредняяEconom- стоимостьclass average лотов price, экономкласса, RUB per sqm руб./кв.м. СредняяComfort- стоимостьclass average лотов price, комфорткласса, RUB per sqm руб./кв.м.

Eco Eco Source: Best-Novostroy, 2019

According to the results of the reporting period, the largest volume of supply accounted for Severo-vostochniy Administrative District, both in the share of apartments for sale (29%) and in the total number of buildings for sale (79 pieces). In this district, such large projects are being implemented as the residential quarters Kvartaly 21/19, Nekrasovka, Lyublinsky Park. In the fourth quarter of 2018, in the Severo-vostochniy , sales opened in the new project of Samolet Development Company with a total area of 228 thousand sqm - "Quarter Nekrasovka". And also in the residential complex "Topol", the developer of which is the company "Moskapstroy-TN". The second place is occupied by the South Administrative Okrug (17% of the total supply), where in the reporting quarter sales started in the 2nd stage of the River Park Residential Complex. Closes the top three leaders of Severniy Administrative District (16%), where 3 new projects entered the market at once: Residential complex Dmitrovsky Park from PIK and Residential complex Talisman on Vodnoy and Talisman on Dmitrovsky from a new player in the residential real estate market of 3S GROUP.

As a result, following the results of the fourth quarter of 2018, 95 projects for 283 buildings were exhibited on the market. Compared to the fourth quarter of 2017, the total number of projects for implementation grew by 14%, while the total number of buildings on sale remained almost unchanged. However, there is a significant decrease in the supply of flats compared to the fourth quarter of 2017, both in the number of lots (-26%) and in the exposure area (-24%).

The current situation is explained, firstly, by the completion of sales during 2018 in a number of large projects in several buildings, such as the residential complex "Varshavskoe Highway 141", "Fili Grad" (1st and 2nd stages), "Golden Star "," Water "," Life-Mitinskaya Esorak ". As well as a high level of consumer activity, which during the year was boosted not only by the presence of discounts and promotions, but also by the approach of the deadline for the registration of the DDU (July 1, 2019).

Chart 24. Distribution of supply by districts

90 35% 79 80 30% 70 25% 60

50 45 20% 41 38 40 29% 15% 29 30 21 10% 17 20 17% 16% 15% 13 11% 5% 10 5% 4% 4% 0 0% South-East South North North-East West East North-West South West total sales of apartments,% Number of buildings, pcs.

Source: Best-Novostroy, 2019

As a result of the renewal of a significant volume of the primary mass housing market by the end of 2018 compared to the fourth quarter of 2017, the total part of flats in buildings at the zero-cycle work stage and whose construction was not started increased 2.5 times and amounted to 47% of the total lots on sale, (almost half of the exhibited volume). The proportion of buildings at the stage of installation and finishing works has not changed much over the same period in 2017: 40% of the total number of buildings for sale. However, the number of flats located in such buildings decreased by 1.8 times.

Chart 25. Distribution of supply by the stage of completion, %

13% 14% 7% 2% 24% 21%

4% 5% 30% 33%

40% 8%

Construction not started Zero Cycle Works Installation began Installation and finishing works Delivery Commissioned

The outer circle - by the number of apartments in implementation,%; The inner circle - by the number of buildings in the implementation,% Source: Best-Novostroy, 2019

According to the results of the quarter, it is worth noting the stability of the supply structure of flats in the segment of comfort class, which during 2018 did not undergo significant changes. The share of 1-room flats (-4

percentage points versus the 4th quarter of 2017) decreased slightly amid the growth in the share of 3-room apartments (+3 percentage points).

Chart 26. Distribution of supply by types of apartments,%

The outer circle – Comfort class The inner circle – Economy class Source: Best-Novostroy, 2019

In the structure of the economy class flats supply, it is worth noting the prevailing share of 2-room apartments, 67%. This is explained, on the one hand, by the peculiarities of the planning decisions of panel houses in the residential complex “Nekrasovka” and “My address at Bazovskaya”, which formed the basis of the proposal in the fourth quarter of 2018.

On the other hand, demand for 1-room flats, which occupy 36% in the structure of demand. However, since the share of economy class apartments accounts for only 6% of the total supply, the displacement of the exhibited volume towards the 2-room apartments in the market as a whole does not occur

Chart 27. Distribution of demand by types of apartments,%

The outer circle – Comfort class The inner circle – Economy class Source: Best-Novostroy, 2019

One of the distinguishing features of 2018 is the high volume of new supply, which continues to grow from year to year. Thus, according to the results of the fourth quarter of 2018, the share of flats in the buildings that went on sale during 2018 accounted for 64% of the total supply. Whereas, in the fourth quarter of 2017, the same indicator was 50%. At the same time, the bulk of the new supply enters the market at the initial stages of construction. Finished flats in the introduced houses in the volume of the new offer are practically absent.

The current situation was also reflected in the market structure by the stage of construction readiness, where the volume of flats in buildings at the initial and zero stages of construction amounted to almost half of the offer in the fourth quarter of 2018.

The current situation was also reflected in the market structure by the stage of construction readiness, where the volume of apartments in buildings at the initial and zero stages of construction amounted to almost half of the offer in the fourth quarter of 2018At the same time, the largest consumer activity was observed in the Yugo-Vostochniy administrative district and Zapadniy administrative district, where 25% and 18% of the total number of transactions, respectively, were registered. Yugo-Vostochniy administrative district is the leader among metropolitan districts in terms of supply, in addition, this district accounts for 55% of the supply of flats in the economy class. Not many projects are being implemented in the Zapadniy administrative district. However, 80% of the offer in the fourth quarter of 2018 was made up of flats in buildings that went on sale in the second half of 2018, which are mainly in the initial stages of construction and, accordingly, are characterized by affordable cost.

Prices in the primary housing market of economy and comfort class

According to the results of the fourth quarter of 2018, the weighted average price per square meter showed an increase compared to the same period of 2017 in almost all districts. The cost of apartments in the segment of comfort class amounted to 161,714 RUB per sqm (+ 8% to Q4 of 2017), and in the economy class segment, the figure increased by 7% to 119,382 RUB per sqm. The positive dynamics was recorded, despite the significant amount of new supply at the initial stages of construction, which went on sale during 2018. Among the main reasons for the increase in value, besides legislative innovations, it is worth highlighting the increase in the share of flats in buildings with some kind of decoration : in the fourth quarter of 2018, the share of such flats rose to 64%: +19 percentage points compared to the fourth quarter of 2017, when this indicator was 45%. As well as the sale of new buildings at prices higher than the market average.

Chart 28. District rating at an average cost of 1 sqm flats of economy class, thousand rubles / sqm

200 (+9%) (+7%) 180 172,2 (+8%) (+5%) (+8%) 167,1 (+26%) (+3%) (+7%) 164,6 164 163,6 (+12%) 157,6 160,3 157,9 160 154 (+8%) 141,3 140 (+0,4%) 121,5 120 (-4%) 105,1 100

0 North-West North East West East South North South East South West

Source: Best-Novostroy, 2019

In the comfort class segment, the increase in the cost per square meter relative to Q4 2017 is fairly uniform in terms of districts (within 7-9%) and correlates with the growth in the segment as a whole (+ 8%). The exceptions are the Vostochniy administrative district and the Severniy Administrative district, where the increase in the average cost per square meter was 5% and 3%, respectively.

In Severniy administrative District, a slight increase in the indicator is due to the presence of multidirectional trends. On the one hand, the cost increase due to an increase in the share of apartments with any type of finishing from 38% in the fourth quarter of 2017 to 49% in the reporting period. On the other hand, the leveling of growth due to the replenishment of the exposure with new projects and buildings: the share of flats in buildings at the initial and zero stages of construction increased from 7% to 67%. As a result, the overall increase in the average cost per square meter for the year was only 3. In Vostochniy administrative district, despite the decline in the share of apartments with finishing, the overall increase in cost occurred due to an increase in the construction readiness of buildings, as well as the sale of new projects at prices above average market prices.

In the economy class segment, in the fourth quarter of 2018, only 6 projects were exhibited, 3 of which are concentrated in the Yugo-Vostochniy administrative district. In the district of the county of 2017, it has been 38% to 10%. There is a significant increase in the administrative district (+ 26%) and the administrative district (+ 12%).

Rival projects in the immediate neighborhood. Analysis of competitive environment changing perspectives

Table 19. The list of existing competitors in the zone of influence of Leningradskoye Shosse residential complex

Average area of flats, Asking price, RUR per sqm sqm Residential Type of the Date of one- three Address Developer Fitting out Class three- one- three- three- complex premises commissioning roo - room room room room m room flats flats flats flats flats flats 1, Dybenko st., RC Discovery Park Flats MR Group July 2020 Shell&core Comfort 40.41 62.03 93.00 160,083 152,245 151,525 Moscow 10, bld. 1, Business RC Mayakovsky Flats Goloviskoe h/w, TEKTA GROUP April 2019 Shell&core 43.10 61.12 85.72 214,612 231,715 224,427 Moscow 7, Vyborgskaya, April 2022, october Business RC Nevsky Flats/Apartments Krost Shell&core 35.17 48.60 70.54 214,853 192,536 217,804 Moscow 2020, completed 11, Goloviskoe h/w, RC Talisman Flats 3S Group April 2019, July 2020 Shell&core Comfort 35.16 54.76 77.43 163,787 162,286 159,889 Moscow 27, Festivalnaya, RC Festival Park Flats Center Invest July 2020 Shell&core Comfort 47.88 63.79 85.60 209,783 209,292 208,620 Moscow

Table 20. The list of existing competitors in the zone of influence of Donskoy Olimp residential complex

Average area, sqm Asking price, RUR per sqm Residential Type of the Date of one- three- three- one- three- three- Address Developer Fitting out Class complex premises commissioning room room room room room room flats flats flats flats flats flats 4, Kozevnicesky RC I'm Flats/Apartments PSN Group completed Shell&core Business 40.85 73.80 102.66 418,853 412,310 395,217 lane, Moscow 3 bld., 2/6, Russky dom RC Play Apartments Kholodilny per., October 2020 Shell&core Business 38.36 53.94 75.50 244,834 245,293 273,500 nedvizimosti Moscow Moskovsky 31 bld. 1, Vavilova RC Vavilov Dom Flats gorodskoy center October 2020 Shell&core Business 47.52 71.95 96.70 301,356 301,762 318,167 st., Moscow nedvizimosti 4, Vavilova st., RC Vavilova 4 Flats PIK April 2019 Shell&core Business 65.40 125.81 125.98 320,945 262,419 343,134 Moscow 1 bld. 2, 2nd RC Danilov Dom Apartments Roschinskaya, SMU-6 July 2020 Shell&core Business 63.49 127.30 112.19 295,000 310,000 330,000 Moscow

Table 21. The list of existing competitors in the zone of influence of ZILART and ZILYUG residential complex

Average area, sqm Asking price, RUR per sqm Type of the Date of one- three- three- one- three- three- Residential complex Address Developer Fitting out Class premises commissioning room room room room room room flats flats flats flats flats flats RC Park Legend Flats/ Apartments 23, Avozavodskaya st., Moscow TEN completed Shell&core Comfort n/a 65.8 87.25 n/a 170,721 191,731 Apartments Business RC Story 13, 3rd Avtozavodsky, Moscow STONE HEDGE April 2019 Shell&core 42.95 63.48 94.30 223,114 238,494 264,876

Apartments Business RC YES Tekhnopark 10, Andropova, Moscow Pioneer April 2021 Fit out 24.17 37.58 86.48 201,019 198,512 179,056

RC Lider v Sadovnikah Flats 4, Nagatinskaya st., Moscow Lider Invest July 2019 Shell&core Comfort 45.20 65.18 87.30 208,667 197,133 199,474 RC Nagornaya 7 Flats 7, Nagornaya, Moscow Ringo Trade completed Shell&core Comfort 58.61 76.31 100.53 179,049 182,160 180,000 RC Residencii Compositorov Flats /Apartments 8, Paveletskaya emb., Moscow AFI Development completed / April 2019 Shell&core Business 60.33 85.57 122.31 250,067 218,665 200,598

Table 22. The list of existing competitors in the zone of influence of Luchi residential complex

Average area, sqm Asking price, RUR per sqm Type of one- three- one- three- one- three- Residential complex the Address Developer Date of commissioning Fitting out Class room room room room room room premises flats flats flats flats flats flats 1, Chobotovskaya, 44.43 62.63 80.98 156,201 141,976 133,561 RC FoRest Flats Center Invest December 2020 Shell&core Comfort Moscow 2C, Borovskoe 38.86 59.64 78.03 173,808 151,314 137,250 RC Mescherskiy Les Flats PIK December 2019, December 2020 Shell&core Comfort h/w, Moscow Rasskazovka settl., 38.63 60.33 79.91 156,587 137,292 120,439 RC Peredelkino Flats Absolute Nedvizimost April 2019 Shell&core Comfort Moscow 1, Rodnikovaya st., n/a 58.39 73.19 n/a 133,315 117,855 RC Positive Flats Capital Group April 2019 Shell&core Comfort Moscow Rasskazovka settl., 41.56 66.33 93.04 147,647 140,211 141,694 RC Rasskazovo Flats SEZAR GROUP December 2020 Shell&core Comfort Moscow 58A, Centralnaya, 37.43 57.82 78.75 130,001 118,913 111,783 RC Rumyancevo Park Flats Lexion Development July 2020 Shell&core Comfort Moscow

Table 23. The list of existing competitors in the zone of influence of Nakhabino Yasnoe residential complex

Average area, sqm Asking price, RUR per sqm Type of Residential Fitting one- three- one- three- one- three- the Address Developer Date of commissioning Class complex out room room room room room room premises flats flats flats flats flats flats RC Krasnogorsky Flats Koroleva st., Nahabino settl., Moscow Region JSC Grad Completed, July 2020, July 2021 Shell&core Comfort 36.17 54.85 79.70 69,963 64,867 64,080 RC Malina Flats Pokrovskaya st., Nahabino settl., Moscow Region JSC Fregat July 2019 Shell&core Comfort 32.73 48.42 67.87 70,496 67,448 64,697 RC Nakhabino Skver Flats 1-17, Isakovo settl. Russtroyinvest Completed Shell&core Comfort 38.82 58.95 74.80 68,565 72,105 63,745 RC Novosnigerevski Flats 1-10, 16, 18, Serenivy blv., Pavlovo Snegiri settl. Istrinskie Dali April 2019, December 2019 Shell&core Comfort 68.81 n/a n/a 47,072 n/a n/a RC Pavlovski Kvartal Flats 1-29, Novaya st., Lobanovo settl. OPIN July 2019, completed Shell&core Comfort 32.76 n/a n/a 70,858 n/a n/a RC Skazka Flats 9, Krasnaya, Pavlovskaya settl. Sodruzestvo July 2019 Shell&core Comfort 55.11 67.69 95.46 101,936 105,851 116,468

Table 24. The list of existing competitors in the zone of influence of Krasny Mayak residential complex

Average area, sqm Asking price, RUR per sqm Type of one- three- one- three- one- three- Residential complex the Address Developer Date of commissioning Fitting out Class room room room room room room premises flats flats flats flats flats flats RC Annino Park Flats 141, bld. 11, Varshavskoe h/w, Moscow PIK Completed, May 2019 Fitted-out/Shell&co Comfort 41.80 66.92 90.89 204,366 164,120 162,613 RC Lesoparkovii Flats 170E, Varshavskoe h/w, Moscow INGRAD December 2019, July 2020 Fitted-out Comfort 39.47 55.26 77.41 179,033 159,806 155,777 RC Lider Tsaritsino Flats 27, blvd. 2, Kavkazsky blvd., Moscow Lider Invest April 2019 Shell&core Comfort 40.70 59.40 78.00 212,930 223,500 220,000 RC Lider na Chertanovsloy Flats 59, Chertanovskaya st., Moscow Lider Invest April 2019 Shell&core Comfort n/a 62.12 91.69 n/a 195,639 196,753 RC Orekhovo-Borisovo Flats 26, blvd. 9, Generala Belova st., Moscow RG Development April 2019, completed Shell&core Comfort 37.63 61.11 79.22 178,808 153,484 147,686

Residential market overview of Yekaterinburg

Supply

The city of Yekaterinburg is actively under construction: there is practically a record number of ditch and constructions on the market of Yekaterinburg.

At the end of 2018, the crane index12 rose to its maximum value over the past 4 years. Over the last quarter, the number of operating cranes increased by 8 units, and for the year the increase was 27%.

Chart 29. Number of operating cranes at the construction of residential facilities in Yekaterinburg

Source: https://upn.ru/docs/analytic/ekbcraneindex4q2018.pdf

By the autumn of 2018, the volume of buildings under construction increased to 2.8 million square meters. This corresponds to the peak value of 2014. The market has returned to its pre-crisis level. The developers of the city this year have updated the record for the number of project starts; they have started approximately 1.1 million square meters of buildings in about nine months.

12 The crane index is an indicator reflecting the number of cranes installed on the construction sites of residential buildings (excluding constructions that were stopped). It is an indirect index of construction activity in the residential sphere.

Chart 30. Territorial structure of buildings under construction

Source: Knight Frank Research, 2018

Chart 31. Dynamics of the total area of buildings under construction in Yekaterinburg, million square meters

Source: Knight Frank Research, 2018

Chart 32. Apartment supply structure in the primary residential market, %

Source: Knight Frank Research, 2018

Chart 33. Apartment supply structure in the primary residential market

Source: Knight Frank Research, 2018

Chart 34. Developers rating by the number of commissioned buildings, %

Source: https://erzrf.ru/top-zastroyshchikov/sverdlovskaya-oblast?topType=1&date=2018

Demand

In 2018, prices in the residential real estate market of Yekaterinburg showed a positive trend against the background of significantly increased buying activity. The main stimulator of demand and the reason of price growth in the residential market was the reduction in mortgage rates. The average mortgage rate for 11 months of 2018 was 9.6%, it was decreased by 1.2% compared to the same period of the previous year, thereby reaching the lowest level in the entire history of mortgage in Russia. According to the Bank of Russia, for 11 months of 2018, 1.31 million mortgage loans in the amount of 2.67 trillion rub were issued in the Russian Federation. This is 40.5% more than in the same period last year in quantitative terms and 54.3% in terms of money.

The demand at the end of the year was such that some new buildings (70-80%) were bought at the level of the ditch.

The main contribution to the increase in prices for new buildings will make the reform of shared construction. Now the industry is 74% funded by equity holders, who are the main investors in residential construction. However, from July 1, 2019, directly attracting funds to buyers of apartments in buildings under construction will be prohibited, and customers will be able to pay for the purchase only by leaving funds in special escrow accounts managed by a bank. The bank will finance the construction of the building chosen by the buyer. That's why, the developer will incur new expenses for servicing the issued loan, which will be included in the cost of building.

Table 25. Analysis of the sale prices of apartments in Yekaterinburg, economy-class, comfort-class and business class

Number of apartments in residential The amount of sales, Name of residential complex complex apartments / month. HC " Roshchinsky " 168 14 HC " Sakharov " 502 39 HC "Skazka" 375s 19 HC «Park Kamennye Palatki» 391 21 HC " Alpy " 128 9 HC " Gorizont " 130 7 HC " Na Tenistoi " 168 39 HC «Sukhodolskii kvartal» 330 23 HC "RIO" 492 29 HC “Repin park” 377 14 HC "Rus” 429 23 HC "Milenium” 233 15 HC "Sedmoe nebo” 136 6 HC "M-Art” 145 6 HC "Belyi parus” 215 28 HC " Osnova” 192 25 HC "Luch” 296 20 HC "Luch” 126 12

Source: Knight Frank Research, 2018

Commercial Terms

According to the results of the 4th quarter of 2018, in the primary residential market of Yekaterinburg, supply prices increased by 3.9%. The average price per square meter increased by 2,732 rubles, reaching a historic high of 73,245 rubles in December 2018. Due to high demand the prices for individual projects in 4Q 2018 exceeded 10%.

Chart 35. Dynamics of the average price for housing under construction in Yekaterinburg, th. rub. /sqm

Source: http://novosel99.ru/nedvizhimost/novinki-kataloga/2621

Table 26. Asking prices in the primary market by the size of apartments

Sept.18 Dec.18 Yekaterinburg % Change Price per 1 sq.m Average price 70 513 73 245 3,9 One-room 73 962 76 923 4,0 Two-rom 69 181 72 088 4,2 Thee-room 68 413 71 058 3,9

Source: http://novosel99.ru/nedvizhimost/novinki-kataloga/2621

Table 27. Asking prices in the primary market by location

Sept. 18 Dec. 18 Yekaterinburg % Change Price for 1 sq.m Centre 109 864 110 755 0,8 1 zone 74 498 78 325 5,1 2 zone 61 768 63 396 2,6 3 zone 57 407 58 888 2,6 4 zone 49 051 50 907 3,8

Source: http://novosel99.ru/nedvizhimost/novinki-kataloga/2621

Chart 36. The structure of new buildings at the construction stage, %

Source: http://novosel99.ru/nedvizhimost/novinki-kataloga/2621

In the supply structure of new buildings: 26% were commissioned, 22% are at the stage of interior finishing, 27% are at the building frame construction stage, 25% are at the stage of foundation construction. Over the last quarter, the share of residential objects which were commissioned has decreased by 7%. The shares of objects at the stages of foundation construction + 6% and interior finishing + 1% increased.

Chart 37. Division of the city by the price zones

Source: http://novosel99.ru/nedvizhimost/novinki-kataloga/2621

The Ural Chamber of Real Estate has updated the composition of the price zones of Yekaterinburg, into which all residential real estate of the city is divided. Zones are formed not by territorial principle, but by the level of prices for apartments. There are 4 such zones in Yekaterinburg. In addition, the center of the Ural capital is highlighted in a separate category. It is limited by Moskovskaya St., Chelyuskintsev St., Vostochnaya St., Dekabristov St., Lunacharskogo St. and Bol’shakova St., where the average cost of apartments is significantly higher than in comparison to other areas.

Since the beginning of 2019, the Ural Chamber of Real Estate has moved the Solnechny and ONZ microdistricts from the third price zone to the second, and the, Siniye Kamni (Blue Stones) and Novaya Sortirovka residential districts from the second to the third price zone. These changes are explained by both market trends (growth or decrease in the attractiveness of the territory), and town planning processes —mostly because of active renovation of the residential stock.

Updating the composition of price zones occurs infrequently, once every 7–10 years.

Map 7. Dividing the city into price zones

Source: https://www.oblgazeta.ru/economics/personal-finance/41204/

In Yekaterinburg apartments can be bought directly from a construction company in any area of the city. Traditionally, large developers are build objects in neighborhoods adjacent to the center, where a high-quality infrastructure cluster has already been formed.

As of the end of 2018, the average cost of 1 square meter of primary market objects in the central part of the city is about 2 times higher than on the outskirts.

Map 8. Division of the city by the price zones and their annual dynamics

Source: https://www.oblgazeta.ru/economics/personal-finance/41204/

Forecast

Experts note that in 2019 prices for new buildings will continue to grow. The reason for this is the rejection of shared construction and the transition to the model of project financing. For reducing the risk, the buyer will have to pay. The sale of objects at the initial stage of construction will become a rare phenomenon, and small developers will begin to leave the market, only large companies would be able to adapt and thus – dictate the trend.

At the same time, the difference in the price of an apartment at the start of construction and after the commissioning will be reduced. Today, many people prefer to take apartments at the stage of the ditch, as they cost 20-25 percent cheaper. This is an essential parameter. After the reform, the size of such a discount is likely to decrease.

Rival projects in the immediate neighborhood. Analysis of competitive environment changing perspectives

Table 28. The list of existing competitors in the zone of influence of Rassvetny and Voskhod residential complexes

One- Two- Type of Three- Date of Fitting room room Residential complex the Address Developer Class room flats commissioning out flats flats premises price price price Roschinsky Flats 4, Roshchinskaya St. Mayak corporation 31.12.2019 Fitted out Economy 57,426 56,103 53,684 Na Tenistoi Flats 4a, Tenistaya St. Astra Development 31.12.2020 Fitted out Economy 60,359 57,663 Not in sale Saharov Flats Akademika Saharova Hw. ATOMSTROJKOMPLEKS Corporation 31.12.2019 Fitted out Comfort 66,667 64,167 57,927 Skazka Flats Novgorodcevoj St. TEHN 31.03.2020 Fitted out Comfort 73,430 72,076 71,940 Park Kamennye Palatki Flats 1, Vladimira Vysockogo St. Astra Development 30.06.2019 Fitted out Comfort 73,378 73,582 72,240 Ural'skij Flats Blyuhera St. — Sahalinskaya St. EHfes 31.12.2020 Fitted out Comfort 63,673 62,525 60,564

Table 29. The list of existing competitors in the zone of influence of Khrustal’niye Klyuchi residential complex

One- Type of the Date of room Two-room flats Three-room flats Residential complex Address Developer Fitting out Class premises commissioning flats price price price Svetlyj 6 Flats Slavyanskaya St. TEHN Q3 2020 Fitted out Comfort 60,876 57,549 Not in sale Svetlyj 7 Flats Slavyanskaya St. TEHN Q4 2020 Fitted out Comfort 60,195 59,560 59,388 Roschinsky Flats 4, Roshchinskaya St. Mayak corporation Q4 2019 Fitted out Economy 57,426 56,103 53,684

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 294

Table 30. The list of existing competitors in the zone of influence of Michurinskiy, Meridian (Akademicheskiy) and VIZ residential complexes

Residential Type of the Date of One-room Two-room Three-room Address Developer Fitting out Class complex premises commissioning flats price flats price flats price Na Tenistoi Flats 4a, Tenistaya St Astra Development Q4 2020 Fitted out Economy 60,359 57,663 Not in sale ATOMSTROJKOMPLEKS Saharov Flats Akademika Saharova Hw. Q4 2019 Fitted out Comfort 62,688 60,337 54,469 Corporation Evgeniya Savkova St.- RIO Flats Hrustal'nogorskaya St.- STROJTEHK 31.12.2019 Fitted out Comfort 53,581 50,028 47,956 Verhneufalejskaya St. Ryabinovyj Flats Krasnoles'ya St. KomStrin Q4 2019 Shell&core Comfort 57,567 56,865 Not in sale

Table 31. The list of existing competitors in the zone of influence of Flagman residential complex

Residential Type of the Date of One-room flats Two-room flats Three-room Address Developer Fitting out Class complex premises commissioning price price flats price Repin park Flats 75, Zavosdkaya St. Aston Q1 2020 Shell&core Comfort 72,585 69,159 65,937 Kraulya-Rabochih St.- Rus’ Flats Krasnyh Zor' St.- TEHN Q1 2021 Fitted out Comfort 75,089 72,708 72,074 Locmanovyh St. Milenium Flats 26, Gromova Vash dom corporation Q4 2019 Fitted out Comfort 71,443 70,756 69,971

Table 32. The list of existing competitors in the zone of influence of Tsvetnoy Bulvar residential complex

Residential Type of the Date of One-room flats Two-room flats Three-room Address Developer Fitting out Class complex premises commissioning price price flats price Osnova Flats 4, Roshchinskaya St. FORTIS 31.12.2019 Shell&core Economy 75,113 72,538 72,005 Sovremennik Flats 4a, Tenistaya St STROJTEHK 31.12.2020 Fitted out Comfort 64,735 63,644 62,995 Ural'skij Flats Akademika Saharova Hw. EHfes 31.12.2019 Fitted out Comfort 63,673 62,525 60,564 Luch Flats Novgorodcevoj St. TEHN 31.03.2020 Fitted out Economy 63,860 58,327 58,015

Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO- 25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 295

Appendix 4 – Residential market segmentation according to the current classification

The classification of modern residential buildings supposes differentiation of projects according to the following basic characteristics:

 Location;  Areas and proportion of different types of apartments;  Parking availability and its characteristics;  Constructional type;  Number of storeys in the building;  Average apartment13 area.

We define the following classes of multi-apartment houses in the residential real estate market of Saint- Petersburg:

 Class A (prime) which in its turn is subdivided into 2 subclasses: A+ and A.  Class B (middle-class), which is also subdivided into 2 subclasses: higher middle-class (B+) and class B.  Class C (mass-market residential real estate), which is subdivided into 2 subclasses: higher mass-market class and lower mass-market class residential real estate.

Table 33.Market segmentation according to the modern classification

C B A Characteristics C C+ B (comfort) B+ (business) A (elite A) A+ (elite A+) (economy) (medium) Prestigious zones of non- central districts; The most Non-central Historical centre; embankments prestigious districts, embankments Location Non-central districts outside the zones of prestigious with scenic borders of historical suburbs views historical centre centre; prestigious suburbs Large Panel Large Panel System System building; building(rare Brick or brick Brick or brick Brick or brick & Brick or brick Constructional brick and ly); & reinforced & reinforced reinforced & reinforced type reinforced brick and concrete concrete concrete concrete concrete reinforced building building building building building with concrete small building

13 hereafter an ‘apartment’ means a residential premise; a ‘unit’ means a residential premise or an aparthotel room/flat, literally a non- residential premise

C B A Characteristics C C+ B (comfort) B+ (business) A (elite A) A+ (elite A+) (economy) (medium) apartments Storey number (prevailing in a Of no importance Up to 16 Up to 12 Up to 9 residential complex) Apartment number on a Of no importance Up to 7 Up to 5 Up to 4 stairwell, item Parking index, place number Of no importance From 0,5 From 0,7 From 1,1 per one apartment Placing offices, service Placing offices industries and and service Non- trade is No industries is Mainly for residential No requirements possible. Public requirements possible, internal use premises catering and excluding public food products catering are not preferred Studios – 0% Studios – to Studios – 0% Studios – 0% Studios – to Studios – to 1 room – 0% 5% 1 room – to 1 room – to 15% 50% 15% 2 room -15- 1 room – 30- 25% 2 room – 25- Usual 1 room – to 1 room – 35- 25% 40% 2 room – 30- 35% apartments 70% 45% 3 room – 40- 2 room – 35- 40% 3 room – 35- ratio by room 2 room – to 2 room – 25- 60% 45% 3 room – 35- 50% number 30% 35% 4 room – 15- 3 room – 20- 45% 4 room – to 15% 3 room – to 3 room – 15- 25% 35% 4 room – to Multiroom – to 15% 20% Multiroom – to 4 room – to 5% 10% 2% 10% Average apartment From 35 From 52 From 65 From 80 From 110 From 130 area, sq.m Source: Knight Frank St Petersburg, 2017

Appendix 5 – Office market segmentation according to the current classification

Table 34.Market segmentation according to the modern classification

Class A Class B+ Class B-

1. BUILDING ENGINEERING SYSTEMS

1.1. Building Management System (BMS)

must must recommended

1.2. Heating Ventilation and Air-Conditioning (HVAC)

HVAC system that provides all- HVAC system that provides the-year-round cooling, heating Heating, Ventilation and Air cooling, heating and humidity and humidity control within Conditioning systems. control. individual premises.

must must must

Recommendation: four-pipe AC.

1.3. HVAC capacities

Capacity to provide 24-hour and all-the-year-round cooling in server rooms. Temperature in office areas: 22 C0 ± 1 C0. Fresh air supply: 60 m3 per hour per 10 sqm of office rentable space, according to planned occupancy.

must optional recommended

1.4. Modern fire security system

which includes fire detection, fire alarm and fire suppression.

must must must

1.5. Elevators

Modern high quality speed elevators from major Modern elevators for 4-storey buildings and higher. international brands.

must must must

1.6. Maximum waiting time of elevators

No longer than 30 seconds.

must recommended recommended

Recommendation: an intelligent elevator control system to be

installed in the buildings with 20 or more floors.

Class A Class B+ Class B-

1.7. Power supply Two independent sources of power supply with automatic change-over or diesel generator power supply system as emergency backup (power supply should be a minimum 70 VA of the one-time electric load per 1 sqm effective office space), UPS for emergency systems.

must optional recommended

1.8. Security system Modern security and access Modern security and access control systems: CCTV at all control systems: CCTV at all CCTV at all entrance points, 24- entrance points, around the entrance points, around the hour security personnel. Access building, at parking areas, building, at parking areas, control. electronic card access, 24-hour electronic card access, 24-hour security personnel. security personnel.

must must must

2. BUILDING STRUCTURE

2.1. Clear ceiling height: min 2.7 m and over

must must recommended

2.2. Layout

Open floor plates, efficient Open floor plates, efficient layout, Open floor plates for the whole layout, supporting columns. supporting columns. Regular or more than 50% of office Regular column grid: not less column grid: not less than 6×6. rentable area, efficient layout. than 6×6.

must must recommended

Recommendation: For not less than 90% of usable area distance

from windows to columns should not be less than 4 m.

2.3. Floor depth

Floor depth: not more than 20 m from window to window. Not more than 10 m from window to floor plate core and 12 m for buildings with non-regular forms and atriums.

must optional recommended

2.4. Loss factor

Building loss factor: not exceeding 12%. Areas are calculated according to BOMA standards.

must must recommended

Class A Class B+ Class B-

2.5. Load bearing capacity: not less than 400 kg/sqm

must optional recommended

2.6. Fit-out of common areas and facade finishing

High quality materials used in fit- Quality materials used in fit-out of common areas and facade out of common areas and facade finishing. finishing.

must must must

2.7. Raised floors

Building is designed for full value Possibility to install raised floors. raised floor installation.

must optional recommended

2.8. Lighting & window grid

Modern high quality windows providing sufficient natural lighting.

must must recommended

3. LOCATION

3.1. Location

Good building location, an absence of nearby objects that can have a negative impact on a building’s image

(e.g. functioning industrial buildings, dumps, etc.).

must optional recommended

3.2. Transport access

Location within not more than 15-minute walks from the nearest metro station or an adequately organized shuttle-bus service (waiting time of about 5–15 minutes during morning and evening peak traffic periods).

must optional recommended

4. PARKING

4.1. Parking type

Underground parking or covered multilevel parking. Surface guest Organized guarded parking. parking.

must must must

Class A Class B+ Class B-

4.2. Parking ratio

- Within the Garden Ring: not less than 1 space per 100 sqm of leasable area (1/100).

recommended recommended recommended - Between the Garden Ring and the Third Ring Road: not less than 1/80;

- Between the Third Ring Road and MKAD: not less than 1/60;

- Outside MKAD: 1/30–1/40 or more. must must recommended

5. OWNERSHIP

5.1. Single ownership (the building is not sold by floors or blocks to different owners)14

must optional recommended

6. PROPERTY MANAGEMENT & SERVICES FOR OCCUPIERS

6.1. Property management

Professional property management company with not less than 5 buildings under Organized property Property management company. management (not less than management. 5,000 sqm each) or with relevant international experience.

must must must

6.2. Telecom providers

No exclusive telecom provider. Potential possibility to use services of two or more independent telecom providers.

must must recommended

6.3. Lobby

Efficiently organized reception area appropriate to building size, providing convenient access to the building. Well organized waiting zone.

must optional recommended

6.4. Amenities

14 Not applicable for multifunctional complexes (MFC) comprising office and retail premises or apartments

Class A Class B+ Class B-

Professionally organized staff cafeteria adequate to building size and populationю At least two Staff cafeteria and other amenities in the building (ATM, newsstand, more amenities in the building dry-cleaning, shops, etc.). Infrastructure nearby should be considered. (ATM, newsstand, dry-cleaning, shops, etc.). Infrastructure nearby should be considered.

must must must

7. CERTIFICATION 7.1. Certification according to one or more international environmental assessment methods for buildings (e.g. BREEAM or LEED) recommended recommended recommended Source: Knight Frank St Petersburg, 2017

Appendix 6 – Valuation of properties located in Germany

56. Leipzig Asset-ID 56 Country Germany Brandenburger Str. / Sachsenseite, 04103 Address Inspection by Simon Volz Leipzig Date of valuation 31.12.2018 Date of Inspection 30.01.2019

Overview

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The subject property is a project development of two inner city hotels at the east side of the main station of Leipzig. The development comprises a two-star budget hotel operated by H2 as well as a four-star hotel operated by Hyperion (previously Ramada). The two hotels occupy two different building parts of the property. The forecasted completion of the construction works is in November 2019 and the latest handover date is agreed with the tenants to be in March 2020. For the purpose of our valuation, we have assumed that the construction of the property will be completed in accordance within the above time shedule but have added some slack time and assumed that the handover to the tenants will take place on the 31/12/2019. In our DCF approach we have projected the future cash flows after the handover of the lease areas. Therefore it is assumed that the property generates no rental income in the first year of the CF (2019). First income is assumed to be generated in January 2020. Further, we have deducted the outstanding construction costs in accordance with the provided information. According to the provided information, the property will comprise 337 rooms 2-star rooms and 193 4-star rooms after completion. The lease agreements are already signed and will have lease terms of 20 years. In addition, there will be an office area on the 5th floor of the Ramada hotel with approx. 401 sq m. The lease term for the office area is 10 years. We consider the micro location of the property to be excellent for hotel use. Rating (6=top / 1=worst)

Macro loc. 4 Building 6 Overall property rating 5 Micro loc. 6 Cash-flow 5

Main facts

Contracted rent [Euro p.a.] [future Type of property Hotel 3,904,072 rent] Year of constr. / last Contracted rent 2019 (expected) 16.42 refurb. [Euro/sq m] Lettable area [sq m] 19,814 Market Rent [Euro p.a.] 3,904,072 Market Rent [Euro/sq Anchor tenant H2 Hotel 16.42 m] Vacancy in WAULT [years][starting at 0.0% 19.41 % completion]

Valuation results

Market Value [Euro] Gross Yield on contracted rent 10.6% 36,800,000

Gross Yield on market Capital Value [Euro per room] 10.6% 69,434 rent

Capital Value [Euro per sq m] 1,857

SWOT

Strengths Weaknesses • Good macro location in a growing city with positive • Above average noise pollution due to the proximity to economic prospects and expanding tourism activity the train station and the bus terminal • Very central location directly adjacent to two major • Leipzig has good development prospects, but ist transportation hubs (main train station and bus terminal) currently economic situation is below average • Excellent location for hotel use • No parking available on site • Good location for office use • Strong local investment climate • In the last 24 months there has been an above average investment activity in the hotel market • Investor's demand for hotel properties has significantly increased during the last 3 years Opportunities Threats • Positive development prospects for Leipzig and forecasted • Longer than expected construction time and delay of population growth (2012 - 2030 +13.9%) handover to the tenants • Rising number of overnight stays in Leipzig (2010 to 2017 • Higher than expected construction costs approx. +50%) • Possible hold-up of the positive macroeconomic development of Leipzig • Relative high hotel development activity in the vicinity (e.g. Premier Inn, Capri, NH, Astoria) in a radius of 750m

Location description

Macro - location Leipzig is situated in the west of the federal state of Saxony, 170 km to the southwest of Berlin. The city has approx. 600,000 inhabitants thus it is the largest city in the state. Between 2014 and 2018 the population of Leipzig has grown by approx. 8%. The dynamic population growth as well as the good prospects for the city's economy make Leipzig an attractive investment target both for residential as well as commercial real estate developments. The largest employers in Leipzig are VBG (local gas supplier), the University of Leipzig as well as Porsche Leipzig. Due to the proximity to the A19, A14 and A38 motorways, Leipzig is also well connected to the national motorway network. Leipzig is a very popular destination of tourists in Germany. In 2017 around 2.7mn overnight stays arranged on 1.5mn visitors (approx. 15% foreigners) were noticed.

Micro - location The subject property is located to the east of the main train station of Leipzig right next to the side entrance of the building. The vicinity of the property is characterised by a commercial cityscape. A large newly-built bus terminal and car park, recently developed by the developer of the subject property is located to the north of the property and adjoins the plot of the subject property. The long-distance busses are being served by the adjacent parking building. The property strongly benefits from the proximity to the major transportation hubs. There is also further construction activity in the vicinity of the property. Some 500m to the north of the property a large offices complex of the Deutsche Telekom is being constructed. On the other side of the Brandenburger Strasse there is an A&O Hotel. In addition, some 600m to the southwest of the subject property there is a development of a Capri Hotel (operated by Frasers), which will also be completed in 2019. The propery is also located near the historic centre of Leipzig, which is some 400m to the south of the property. Overall, the location of the property is excellent for hotel use.

Property description

At the day of inspection, the property was in a medium stage of construction. The structural works with the erection of the several floors seems to be completed. During the inspection we noted that interior construction works had partly begun,

thus indicating that construction works are broadly in accordance with the provided time shedule. According to the provided information, the property is expected to be completed in November 2019 and the latest handover date to the tenant is in March 2020. In order to reflect possible risks and delays in the construction process, we have assumed that the actual completion of the building will be in late 2019 and that the handover will take place on the 31/12/2019, meaning a start of the leases on that date.

Based on the provided information, the property will comprise a budget two star H2 hotel with 337 rooms and a up-scale four star Hyperion hotel with 193 rooms after completion. The building will be a reinforced concrete structure with a curtain wall and a flat roof. The facade will have an integrated isolation and will be partially covered with metal sheets but also comprise a large share of windows surfaces. The northern building section of the property will comprise six floors (incl. GF). The ground floor and the first four upper floors will be occupied by the Hyperion hotel, whereas the fifth floor will be let as an office area. The southern building section wil have seven floors, which all are all going to be occupied by the H2 hotel. The two hotels will not be connected to each other regarding their operations but there are going to be connection points between the two building sections in order to create the neccesary escape routs. Some of the parts of the buildings are fitted with a sprinkler system. The sprinkler unit itself is located within the technical facilites of the adjacent car park. The subject property itself does not comprise any parking spaces but there is an obligation by the operator of the car park to provide an appropriate number of parking spaces on market conditions to the tenants of the subject property. According to the provided building and construction description as well as the building rendering, we consider the subject property to be of a good quality and appealing visual appearance.

According to the provided costs shedule the remaing project costs until completion of the property as at the date of valuation amount to €33,271,385. In addition, we have deducted additional contingencies of 5% in order to reflect possible higher construction costs as well as higher developer's profit expectations. In total we have therefore deducted cost of €34.9mn (rounded). For the purpose of this valuation we have assumed that around 90% of the costs will be due in 2019 (prior to the date of valuation) and the remaining 10% will be due in 2020.

Property Condition

We have been instructed to undertake an inspection of the construction site. During our visual inspection, we did not note any deficincies in the construction works. The construction works appear to be in line with the provided time shedule. However, we have not checked whether the timeline is met in detail. According to information by the project leader of the development company there have not been any unusual events leading to substantial construction difficulties. We have not undertaken a technical survey of the construction site. Our undertanding of the construction process is based on our visual impressions and the information provided during the inspection. In order to reflect possible delays in the construction process, in our valuation approach, we have assumed that the handover of the lease areas to the tenants will be on 31/12/2019. Tenure

The property is freehold. According to the provided land registry of Leipzig dated 15/01/2018, the owner of the property is S&G Development Objekt Leipzig GmbH. The property comprises two parcels (Nr. 3960/12 and Nr. 3918/65) with a total plot size of 5,334 sq m. Further, there is a registered easement in favor of the subject property which allows the use of parking spaces in the adjacent car park to the north of the property. The lease agreements with the tenants of the property state that the owner of the car park has to provide an appropriate amount of parking space on market conditions to the tenants. There is also an encumbrance to the disadvantage of the subject property which foresees that the owner of the subject property has to tolerate immissions caused by the Deutsche Bahn Netz AG (operator of the adjacent train station). A further entry in Section II of the land registry provides the city of Leipzig the right to re-gain ownership of the subject property in case the property is not completed by the end of December 2019. Occupational Market Comment

After slow growth in the last years, in 2017 (latest available data) the overnight stays in Leipzig have risen enormously with a plus of nearly 228,000 guest-nights to approx. 2.7mn overall which means an increase of around 9% compared to 2016. In addition, also the guest arrivals have risen by 8% in 2017 to around 1.5mn arrivals and the rate of foreign tourists stands stable at some 15%. As a consequence of the increasing touristic interest and rising numbers of overnight stays, the bed supply in Leipzig rose by 23% (approx. 2,500 beds) between 2010 and 2017 to 13,300 beds overall. In addition there are several current hotel developments which are expected to be completed within the next 2 years (e.g. Capri by Frasers ≈ 150 rooms; Holiday Inn Express ≈ 160 rooms; Premier Inn ≈ 180 rooms; Hotel Astoria ≈ 250 rooms). Leipzig also shows an upward trend in the major hotel KPI's such as average occupancy and daily room rate. In 2017 the average room occupancy climbed to ca. 70% and average daily rate stayed stable at €80 in 2017. The hotel market in Leipzig is dominated by 3- and 4-star hotels which account for approx. 91% of the total amount of classified hotels.

Lease Comps

We are not aware of comparable rental evidence for hotel properties in the Leipzig region. We consider the rental level of the signed lease agreements to be typical considering the location and the planned specifications of the property. Following table includes also some rental evidence for the office area within the Hyperion hotel. Property Use Rooms / Actual to Monthly Comment sqm date rent Leipzig 2* Hotel 194 rooms 2009 406 €/ constructed 2009 Motel One, central location room Cologne 4* Hotel 313 rooms 2018 1.025 €/ constructed 2001, located at the exhibition room Leipzig Office 150 - 7,000 current offer 10.75 €/ sq development – YoC 2020, comparable sq m m location Leipzig Office 380 sq m current offer 11.00 €/ sq slightly inferior building, but superior location m

Investment Market Comment

In 2018 the transaction volume of hotel properties in Germany amounted to a total of just above €4bn which was 4% below the 2017 performance. Nevertheless this is still the forth best result of all times. Around 70% (or €2.8bn) of the total investment volume accounted for properties within the major cities (Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg, Leipzig, Munich and Stuttgart). Remarkable is the fact that only some €800mn were transacted through portfolios which is equivalent to 20% of the total investment volume. Around 31% of the total investment volume was generated by transactions of hotels with a volume higher than €100mn, followed by properties with a capacity between €50mn and €100mn which accounted for approx. 28%. Looking at the split of the transaction volume by purchaser, the dominating purchasers of hotel properties in Germany in 2018 have been special-purpose funds (19%) followed by corporates (15%) and investment/asset managers (12%). Looking at the top 7 German cities, the current prime GIY ranges between 3.75% and 4.50%, whereas Munich remains the most expensive market in terms of hotel. Due to the lack of product in the established hotel markets, investors will look into investing in secondary markets, a trend which has also been observed in the second half of 2018. The overall investment market prospects for 2019 are positive.

Investment Comps

Property Use Sales date Rooms Price Gross Yield Comment Deals Park Inn Hotel Q4 2018 148 n/a 3-star hotel by €23,500,00 with 148 Radisson, 0 rooms, re- Nuremberg [€158,784 developed in per room] 2016, located at the city centre fringe Motel One Hotel Q4 2018 400 4.2% 3-star hotel Stuttgart €94,000,00 with 400 0 rooms, [€235,000 completion in per room] 2020, superior location 7 Days Hotel Q3 2018 150 n/a 3-star hotel, Premium €12,650,00 constructed in Leipzig 0 2018, located [€84,333 in proximity to per room] the airport (inferior location) Holiday Inn Hotel Q2 2018 164 4.4% 3-star hotel Dusseldorf €25,000,00 with 164 0 rooms, 8 years [€152,439 lease term, per room] superior location

niu Hotel, Hotel Q2 2018 186 n/a 3-star hotel Halle €20,500,00 with 186 0 rooms, [€110,215 completion is per room] expceted for 2019, inferior macro location Capri by Hotel Q3 2017 151 n/a 5.2% 3-star Fraser, apartment Leipzig hotel with 151 rooms, completion in 2019, centrally located south of the main station Leipzig Motel-One, Hotel Q1 2017 194 4.5% 2-star budget Leipzig €21,000,00 hotel, 0 constructed in [€108,247 2009, located per room] in the historic centre of Leipzig

Asset Management Requirements

Since the property is already fully let, we do not see any asset management requirements as of the valuation date. Valuation Assumptions Rental level / Market Rent According to the most recent hotel study of HypZert from 2012 the average monthly rental levels mainly range between €250 and €420 per room for 2-star hotels and between €450 and €1,200 for 4-star hotels. The rental level of the H2 (560€/sq m) is above the typical range according to HypZert and the rental level of Hyperion (685 €/ sq m) within the indicated range. Given that the last available HypZert publicaton is from September 2012 and also considering the excellent location of the subject property as well as the expected good building specifications, we consider the current rental level of the two hotels to be on market level. Since the lease agreements for the subject property have all been newly signed and revised though ammendments in 2017, we consider the property to be broadly rack-rented.

Re-letting assumptions Given the excellent location of the property for hotel use, as well as the overall good economic development of Leipzig and the growing number of traveller arrivals, we expect the re-letting prospects in case of a future vacancy to be very good. Due to the very central location, we also consider the re-lettability of the office space to be good. A detailed overview of our re- letting assumptions can be found within the annex "Rent roll & Market leasing assumptions". However due to the length of the defined cash flow period which is shorter than these of the lease agreements, no re-letting costs have been deducted.

Yields Prime gross initial yields for newly built hotel properties in bigger cities stand range between approx. 3.75% and 4.50% and are achieved for properties in excellent micro-locations. For long-term leased hotel properties in good locations of Leipzig, prime gross yields of around 4.9% can be achieved. In the hypothetical scenario that the property would be completed and the lease has started as at the date of the valuation, we would expect a gross yield of 5.25% (19.1 multiple of the gross rental income). For the estimation of the current market value (31/12/2018), we have considered the current construction progress and the remaining time to completion and lease start as well as the agreed rent free periods for the hotels (6.5 monhts after lease start). We have therefore applied a discount rate of 5.00% and a capitalization rate of 4.85% in order to arrive at a gross yield of approx. 5.4% (around 18.5 multiple of the gross rental income). The higher gross yield in comparison to the yield (5.25%) in the hypothetical scenario above, reflects the costs, risks and missing rental income until completion. We have then also deducted the outstanding construction costs in accordance to the provided cost shedule incl. an additional deduction of 5% for contingencies.

Sales period Considering the subject property characteristics and the current investment climate in Leipzig as well as the excellent location, we are of the opinion that the saleability of the property after completion will be very good. As of the valuation date and due to the not yet completed construction the risk involved with the construction progress, we would expect the investor's interest as of the valuation date to be somewhat limited. Potential buyers are most likely to be regional and national investment companies as well as real estate funds with a focus on hotel properties and foreign investors. For the subject property we would expect a sales period of around 6 months after completion to be sufficient.

Specific assumptions due to a lack of information

We have not undertaken a technical survey of the construction site and our understanding process is based on the provided documentation, as well as our visual impressions and the information provided during the inspection on the 30/01/2019. We have assumed that the construction works take place in accordance to the provided time shedule and will be completed in November 2019. In order to reflect the risks related to possible delays during the construction, we have added some slack time and assumed that completion will have taken place until the end of 2019 and that the tenant handover will take place by the end of December 2019. Thus, in our DCF approach, the first rental income is generated in January 2020 (one year after the valuation date).

Information provided (partly received during the initial valuation as at 31/12/2017)

• Lease agreement H2 Hotel from 16/06/2015 and lease amendment 14/06/2017 • Lease agreement Ramada Hotel (Hyperion) from 16/06/2015 and lease amendment 14/06/2017 • Lease agreement Dr. Seidemann & Co. Projektentwicklung (office areas), dated 20/12/2016 • Cadastral map, dated 23/05/2017 • Time shedule for construction works, dated 20/09/2017 • Cost schedule for construction works. dated 31/12/2017 • Updated information regarding the construction process/ costs, provided on 21/01/2019

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Property

57. Landshut

Asset-ID 57 Country Germany Inspection Simon Address An der Ueberfuehrung 6, 84032 Landshut by Volz Date of valuation 31.12.2018 Date of Inspection 29.01.2019

Overview

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The subject property comprises a recently completed (2018) hotel in a central location of Landshut, north of the city's main train station. Landshut is a medium-sized city with good development prospects, situated some 65km northeast of Munich. The development comprises a two-star budget hotel (B&B) with 84 rooms. The property has been completed in Q3 2018 and is single tenanted by B&B. The lease contract has started on 31/10/2018 and has a 20 year term. In our DCF-approach we have considered the rental income according to the provided lease contract. Further, we have deducted the outstanding construction costs in accordance with the provided cost analysis. According to the provided information all works have been completed as at the day of valuation; however, around €323,000 of the total costs are still due as at the day of valuation. We have therefore deducted the outstanding costs of €323,000 in our valuation. We consider the micro location of the property to be average for hotel use.

Rating [6=best, 1=worst]

Macro loc. 5 Building 5 Overall property rating 5 Micro loc. 4 Cash-flow 5

Main facts

Type of property Hotel Rent passing [Euro p.a.] [future rent] 297,360 Year of constr. / last refurb. 2018 Rent passing [Euro/sq m] 11.98 Lettable area [sq m] 2,069 Market Rent [Euro p.a.] 297,360 Anchor tenant B&B Market Rent [Euro/sq m] 11.98 Vacancy in % 0.0% WAULT [years] 19.83

Valuation results

Market Value [Euro] 5,400,000 Gross Yield on rent passing 5.5% Capital Value [Euro per room] 64,286 Gross Yield on market rent 5.5% Capital Value [Euro/sq m] 2,610

SWOT

Strengths Weaknesses

• Good macro location in a medium-sized city with strong economic • Above average noise pollution due to the location at indicators and positive prospects highly frequented street and the proximity to the train • Very central location close to the main train station of Landshut station • Very good access to the property by public and private transport • Landshut is not an established touristic destination, • Investor's demand for hotel properties has significantly increased during however some hotel chains will soon open their first the last 3 years hotels in Landshut (e.g. Ibis) • Situated on the northern side of the railway tracks, slightly weaker location as the city centre on the other side of the railway Opportunities Threats • Positive development prospects for Landshut and forecasted population • Hotel operational figures are not yet stabilized due to growth (2012-2030 +9.5%) recent opening • A further competitior (ibis), situated in the immediate vicinity, will open in Q1 2019 • Potential hold-up of the positive macroeconomic development of Landshut

Location description

Macro - location Landshut is situated in the east of the federal state of Bavaria located some 65km to the northeast of Munich. The city has approx. 70,000 inhabitants. Landshut is the eleventh largest city in Bavaria and is also the administrative capital of the district Lower Bavaria. According to the Prognos Atlas the future prospects for the city are very good. Further, a stable population growth is expected until 2030 (+9.5%). The good prospects for the city's economy and the lack of product in the state's capital Munich have drawn the investor's attention to smaller Bavarian cities. The largest employers in Landshut are the Deutsche Rentenversicherung (German pension fund), the Lakumed Clinic and the public clinic of Landshut. According to the statistics of the local municipality, in 2017 the 25 accommodation provider noticed 226,562 overnight stays arranged on 113,181 visitor arrivals. Due to the proximity to the A92 motorway, Landshut benefits from a good accessibility to the German motorway network and a good connection to Munich. Therefore, many residents of Landshut are commuting to Munich.

Micro - location The subject property is located very closely to Landshut's main train station, some 200m to the northeast. The immediate vicinity of the property is mainly characterised by commercial buildings, incl. a car dealership, a car-repair shop, a fitness studio and some supermarkets. Further to the north, there are residential buildings. The historic centre of Landshut as well as most of the city’s attractions are located approx. 1.5km to the south of the subject property on the other side of the railway tracks. The property benefits from the vicinity to the main train station. However the micro location of the property is not best suited for hotel use, mainly due to the lack of leisure and gastronomy possibilities in the immediate vicinity. A further hotel, operated by ibis has been recently completed in the immediate vicinity, in a slight superior location on the other side of the railway tracks and slightly closer to the main station. Ibis is expected to start its operation in March 2019

Property description

At the valuation date, the construction works have been completed and the hotel operation has started on 31/10/2018.

The property comprises a budget two star B&B hotel with 84 rooms. The building has a reinforced concrete structure with a plastered facade. The facade has an outside isolation. The property comprises six floors (incl. GF) and has no basement. On the ground floor there is the reception as well as common areas such as breakfast the room. The five upper floors comprise 16 to 17 rooms each with a room size of approx. 13 sq m. In total the hotel has 84 guest rooms, which can be split as follows: 40 single-bed rooms, 28 double-bed rooms and 16 family-rooms (whith more than 2 beds). The daily rates are generally €54/ single room, €64/ double-room and €84/ family room; breakfast is availbale for €8.50. According to the provided information during our inspeciton the hotel hadan average occupancy of around 30% during the first two months after opening. This is considered to be low but not unusual for newly opened hotels. It usually takes around 1-2 years after opening to stablize the occupany. In addition the property provides around 22 external parking spaces. Based on the findings during our inspeciton, we consider the subject property to be of good quality but of average visual appearance.

According to the provided information and costs shedule most of the costs have been already paid. However, an amount of around €323,000 is still due as at the day of valuation. We have therefore deducted these costs in Year 1 of the cash flow.

Property Condition

We have been instructed to undertake an inspection of subject property. During our visual inspection, we did not identify any repair and maintenance backlog. Due to the recent completion of the construction works the property is in good state of repair and has an average visual appearance (standard B&B hotel appearance). According to information by the owner, around €323,000 of the total costs are still due. We have therefore deducted the outstanding amount of €323,000 in the first year of our DCF calcluation. Tenure The property is freehold. According to the provided land registry of Landshut, dated 15/01/2018, the owner of the property is Zu Hause auf Zeit Landshut GmbH. The property comprises a single parcel (Nr. 1580/173) with a plot size of 1,195 sq m. There are three encumbrances to the disadvantage of the subject property. One encumbrance foresees that the owner of the subject property has to tolerate immissions caused by the Deutsche Bahn Netz AG (operator of the main train station). Two further encumbrances are in favor of the local energy supplier and a gas supplier (E.ON) and foresee the installation of cabling in the subject plot. We have assumed that the entries in Section II have no detrimental effect on the use and therefore on the value of the property. Occupational Market Comment

There are approx. 15 centrally located hotels. Currently there are no 2-star or 5-star hotels in Landshut, meaning that all of the centrally located hotels are 3- or 4-star accommodation facilities. The subject property is going to be the first centrally located 2-star hotel in Landshut. With the exception of the subject B&B hotel, there are currently no further hotels in Landshut belonging to chain hotel companies. However, an ibis, located in the immediate vicinity is expected to start to open in the operation in March 2019. Daily rates for hotel rooms in the above mentioned establishments range broadly from €80 to €120 per room, which is above average taking into consideration the city's size but is mainly due to the very good economic situation in Landshut.

Lease Comps

We are not aware of comparable rental evidence for hotel properties in the Landshut region. We have therefore compared rents for hotels in other German cities. We have regard to the following comparable rents: Location Hotel Rooms Actual to Monthly rent/ Comment category date room Dusseldorf 2* 99 2015 329 € constructed 2015, occupied by B&B, district location Dortmund 3* 82 n/a 302 € constructed 1998, location in city centre Merseburg 4* 133 2016 282 € Constructed 1782 (listed building) and 1995, sauna/fitness area, central location, weaker economy Valuation report │ A portfolio of real estate assets in St. Petersburg and Leningradskaya Oblast', Moscow and Moskovskaya Oblast’, Yekaterinburg, Russia and Leipzig, Landshut and Munich, Germany │ KF Ref: PO-25/2018 │ Prepared on behalf of LSR Group OJSC │ Date of issue: March 12, 2019 Page 314

Berlin 4* 176 2016 379 € Constructed: early 1980's, 26 conference rooms, wellness area, decentralised location Berlin n/a 64 n/a 391 € Central location, constructed 1918

Investment Market Comment

Investment Comps

Sales Comment Property Use Rooms Price Gross Yield date Deals Super 8 Hotel Q1 2019 216 €24,000,000 4.3% 3 star hotel Hotel, [€111,111 per with 216 Mainz room] rooms, forward deal, YoC 2020, superior location Moxy Hotel Q4 2018 178 €25,000,000 4.3% 3-star hotel Darmstadt [€140,449 per with 178 room] rooms, constructed in 2018, suerior location Park Inn by Hotel Q4 2018 148 n/a 3-star hotel Radisson €23,500,000[€158, with 148 Nurember 784 per room] rooms, re- g developed in 2016, located at the city centre fringe 7 Days Hotel Q3 2018 150 €12,650,000 n/a 3-star hotel Premium [€84,333 per with 150 Hotel room] rooms, Leipzig constructed in Airport 2018, located in direct proximity to the airport

Ibis Styles Hotel Q4 2017 131 €10,600,000 5.6% constructed Offenbach [€80,916 per 1995, room] refurbished 2015, remaining lease term of around 16.5 years with Fidelis Hospitality GmbH

Asset Management Requirements

Since the property is already fully let, we do not see any asset management requirements as of the valuation date. Valuation Assumptions Rental level / Market Rent According to a hotel study of HypZert from 2012 the average monthly rental levels for 2-star hotels mainly range between €250 and €420 per room. The rental level of the B&B Hotel (295€/room) is at the lower end of the above mentioned range. This is mainly due to the location of the property in a secondary touristic destination, but also due to the small size of the rooms (approx. 13 sq m according to the provided plans). Since the lease agreements for the subject property have all been signed in November 2017, we consider the property to be broadly rack-rented.

Re-letting assumptions Considering the very central location of the property, the overall good economic situation, but also the average touristic activity in Landshut, we expect the re-letting prospects in case of a future vacancy to be average. A detailed overview of our re-letting assumptions can be found within the annex "Rent roll & Market leasing assumptions". However due to the length of the defined cash flow period which is shorter than these of the lease agreements, no re-letting costs have been deducted.

Yields Prime gross initial yields for newly built hotel properties in bigger cities stand range between approx. 3.75% and 4.50% and are achieved for properties in excellent micro-locations. For long-term leased hotel properties in good secondary locations of Bavaria and with creditworthy tenants, prime gross yields of around 5.00% can be achieved. Considering the very long lease term, the location of the subject property we would expect a gross yield of approx. 5.2% (19.2 multiple of the gross rental income) for the subject property, reflecting a capital value of approx. €68,000 per room and have therefore applied a discount rate of 4.75% and a capitalization rate of 4.50% to achieve this. However, we have also deducted the outstanding costs of €323,000; resulting in a lower market value (GIY 5.5%). However, once the outstanding costs are paid, the value is expected to fall to 5.2% (in case that no siginificant changes in the market/ tenancy situation occur).

Sales period Considering the subject property characteristics and the current investment climate in Bavaria as well as the good location, we are of the opinion that the saleability of the property to be good. Due to the long-lease term the property is appealing a broader range of investors, such as regional investment companies, family offices as well as private investors. However and due to the relative low investment volume the property is not likely to appeal institutional investors as they are more focussed on investments of around €15mn and above. We would expect a sales period of around 6-12 months to be sufficient in the current market.

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58. Munich

Asset-ID 58 Country Germany Inspection Christoph Address Herzog-Heinrich-Strasse 1, 80336 Munich by Gerlinger Date of valuation 31.12.2018 Date of Inspection 16.01.2019

Overview

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The subject property comprises a six-storey (incl. ground floor and attic) mixed-use building located at the western edge of the inner city area of Munich, approx. 600m south of the main train station of Munich. The property mainly comprises office areas on the ground floor and the four upper floors. Two residential units are situated in the attic of the building (5th floor). The building is detached and was built to high specifications that however are partly outdated today. As at the date of valuation, there were no lease agreements in place. The property owner has not prolonged the previous leases as he intends to re-develop/ refurbish the property. However, some of the areas of the property are owner-occupied (LSR Europe). We have been informed that the owner might will add another floor on top of the existing building. In addition the property owner has not yet decided which use(s) the property shall have after refurbishment, potential uses are ongoing office/ residential uses, 100% office, 100% residential or a hotel. For the purpose of this valuation and in order to reflect the potential investor's interest, we have assumed that no areas are occupied by LSR and that all the areas of the building will be available for reletting following refurbishment. The re-letting prospects for the office areas as well as the residential untis are very good. Due to the high achievable office rents in Munich and the currently booming occupational and investment market, we consider the saleability of the property to be very good.

Rating

Macro loc. 6 Building 4 Overall property rating 4 Micro loc. 5 Cash-flow 2

Main facts

Type of property Mixed-use Rent passing [Euro p.a.] 0 Year of constr. / last refurb. 1991 Rent passing [Euro/sq m] 0.00 Lettable area [sq m] 1,429 Market Rent [Euro p.a.] 363,926 Anchor tenant n/a Market Rent [Euro/sq m] 21.22 Vacancy in % 100.0% WAULT [years] 0.00

Valuation results

Market Value [Euro] 7,750,000 Gross Yield on rent passing 0.00% Capital Value [Euro/sq m] 5,423 Gross Yield on market rent 4.70%

SWOT

Strengths Weaknesses • Excellent macro location in an economically very strong city • 100% vacant and the refurbishment has not yet • Very good micro location in central district of Munich started • Good access to the property by public and private transport • Partially outdated fit-out, tenant improvements are • High-quality mixed-use building with refurbishment requirement necessary in order to let the vacant areas on market • Booming office occupational market with record-high take-up volumes level • Strong investment climate with high transaction volumes and yield • Re-letting efforts are required to make the property compression income - producing Opportunities Threats • Refurbishment of property and re-letting of the vacant areas on market • Longer than expected void periods level • Higher than expected tenant improvement costs • Fast lease-up of the property is possible due to the currently very high • Decline of the currently very high demand for office demand for office space space • Further positive development of the office investment market and yield • Deterioration of the office investment climate compression • Potentially also conversion to residential or hotel space • Potential to increase of the lettable area (by adding one floor)

Location description

Macro - location The property is located in Munich, the capital of the federal state of Bavaria, in Southern Germany. Munich has around 1.5 million (as at 31.12.2018) inhabitants and is thus the third largest city in Germany after Berlin and Hamburg. Until 2030 a population of 1.8 million is predicted, making Munich one the fastest growing major German cities. Furthermore, the city benefits from its attractive surroundings and its strong economic strength. The economic environment is diversified with all sectors being represented. Four DAX companies (Allianz, BMW, Munich RE and Siemens) are headquartered in Munich and further two DAX companies have their headquarter in the Munich metropolitan area. Furthermore, Munich is the second largest university city in Germany with approximately 110,000 students.

Micro - location The subject property is located at the western fringe of the city centre in the district Ludwigsvorstadt-Isarvorstadt. It lies at the beginning of the main street "Herzog-Heinrich-Strasse", some 600m south of the main train station of Munich and approx. 1km to the west of the historic old city of Munich. The vicinity of the property is characterised by a mixed-use cityscape, consisting predominately of residential and office buildings. Further, there are many pre-WWII villas present in the immediate vicinity of the property, that have been converted in commercial buildings, now offering upmarket office space for rent. Overall, the location of the property is very well suited both for commercial as well as residential uses.

Property description

The property comprises a detached 5 storey mixed-use building located on a land plot comprising a site area of 0.08

hectares (800 sqm). The building comprises a Gross Floor Area of 1,445.9 sqm, resulting toa floor to plot area ratio of 1.81. The net area of the property amounts to 1,079 sqm. In Munich it is common that the lettable area for office space is defined as a gross floor area and not a net area. For the matters of our valuation, we have used the gross floor area. The building was constructed in 1991 as a reinforced concrete structure with natural stone facade and tin roof. It has not been modernised since its construction but remains in a good condition, commensurate with its construction year. The attic of the building (5th floor) is being used as residential space and comprises two two-room apartments. The residential untis are connected to the ground floor via the same staircase and elevator as the office spaces. In addition, the office floors are connected with each other via a second internal stairway. Subject to closing the internal stairs, the office areas could be let floor-by-floor to multiple tenants. Due to the skeleton construction concept and thus the lack of load-bearing interior walls, the internal design is flexible. Lastly, the property also has underground parking with a total of 24 parking spaces. According to the provided information the property owner has not prolonged the leases with the former tenants as he intends to refurbish/re-develop the property and might will extend the building by adding one floor. In this regard we have been provided with a provisional planning permission, stating that an extenion of the property (adding one floor) is permissible. In addition a change of use to 100% office or 100% residential or probably a conversion to a hotel use would be permissible as well. However, according to the provided information, the property owner has not yet specified a concept for the refurbishment/ re-development. For the purpose of this valuation we have assumed a on-going use as mixed-use building with office and residential accommodation after refurbishment.

Property Condition

We have been instructed to undertake an inspection. During our visual inspection, we did not note any structural or technical defects. The property is in an overall good condition, commensurate with its construction year. However, in order to re-let the vacant office areas some capital expenditures in form of tenant improvements are required. In our re-letting assumptions in the DCF approach, we have applied tenant improvement costs of €500 per sqm for the office areas and €200 per sqm for the residential untis. Further, according to a provided document, a refurbishment of the building's entrance area is planned, which is budgeted at approx. €115,000. We have deducted this capital expenditure as well.

Tenure The property is a freehold. According to the provided land registry of Ludwigs-Vorstadt dated 16/01/2018, the owner of the property is LSR Europe GmbH. The property comprises a single parcel (Nr. 9872) with a plot size of 800 m². There are no restrictions or encumbrances at the cost of the subject property, mentioned in Section II of the land registry. Occupational Market Comment

In the first three quarters of 2018 take-up in the Munich office market concluded at around 689,000 sq m. This result represents an increase of approximately 16% compared to the same period of the previous record year 2017 and is significantly above the 10-year average (approx. 33%). As a result of a shortage in modern office space in the most desirable parts of the Munich Centre, prime rents increased by further 4% to €38.50 per sq m in Q3 2018. This is the highest level achieved in Munich over the last 10 years. Average rents within the city also slowly increased by further 12% to around €18.80 per sq m, on the back of also falling vacancy in peripheral locations. The subject property itself is located between the two real estate submarkets “city centre” and “Middle ring”. Top rental levels in the city centre amounts up to €38.50 per sq m and in the middle ring between €21.00 and €29.00 per sq m. In the vicinity of the subject property, rental levels between €20.00 and €25.00 can be observed, depending on the building quality. Rents above €24.00 are being achieved in luxurious villas converted into office spaces or in newly constructed upscale office buildings. For offices in the vicinity of the subject property with say approximately similiar building quality, rental levels predominantly range between €16.50 and €21.00 per sqm (net, excl. OPEX).

Lease Comps (offers)

Property Use Lettable area Actual to date Monthly rent per Comment sq m 80336 Munich Office 225 sq m current offer 16.50 Comparable location, slightly inferior building quality 80336 Munich Office 300 sq m current offer 21.00 Slightly superior location and building

80336 Munich Office 350 sq m current offer 20.00 Comparable location, slightly superior building quality 80336 Munich Office 235 sq m current offer 21.00 Slightly superior location, comparable building quality

Investment Market Comment

In the first three quarters of 2018 a total transaction volume of €4.9 bn was registered in Munich, which is a 21% increase in comparison to the previous year’s result. Further, this is the second best result of the past 10 years. More than 50% of the transactions were office properties followed by hotels (22%) and retail properties (7%). However, investors are more focussed on larger investment volumes of above €10mn, which account for more than 95% of the total investment volume. Due to the scarcity of office space and strong competition in Munich, the rental levels have increased which has further led to a continuous compression of yields. In Q3 2018 prime net office yields compressed to around 2.9%, reflecting an all time low.

Investment Comps

Property Use Sales date Lettable area Price Gross Yield Comment Deals Parkstie Office Q4 2018 8,000 sq m 50,000,000 € n/a Constructed [6,250 €/ sq m] in 2008, fully let property in a inferior location Arabella Bogen Office Q2 2018 44,000 sq m 170,000,000 € 4.3% Constructed [3,864 €/ sq m] 1984, recently refurbished, inferior location Leopoldstraße- Office Q1 2018 11,600 sq m 60,000,000 € 4.0% Constructed Business-Center [5,172 €/ sq m] in 2001, 93% let, inferior location, main tenant with high covenant strength (Federal State of Bavaria) Gabrielen-Lofts Office Q3 2017 7,365 sq m 53,500,000 € 4.0% Redeveloped [7,264 €/ sq m] in Q4 2017 and is of higher quality, fully pre-let at time of transaction. Superior location.

Arnulfpark, Office Q3 2017 7,400 sq m 57,700,000 € 3.9% Higher Munich [7,797 €/ sq m] building quality, redeveloped office property, inferior location North Munich Office Q2 2017 9,144 sq m 50,000,000 € 3.9% Constructed [5,468 €/ sq m] in 2004 and fully let, inferior location, Wault 6.6 years

Asset Management Requirements

There is currently no lease contract in place, but the property owner LSR Europe GmbH partly owner-occupies areas of the property. During our inspection on the 16/01/2019, we have been informed that the property owner intends to refurbish/ re-develop the property but has not yet specified details (might proceed with the current uses [office/ residential], might change the uses to 100% office or 100% residential or a change to 100% hotel). In this regard we have been provided with a provisional planning permission. However, for the purpose of this valuation and due to the current unclear scope of redevelopment/refurbishment, we have assumed a further use with office and residential accommodation after refurbishment. Therefore, in our valuation we have deducted the necessary costs, such as tenant improvements, agent fees and void costs until the re-letting. Valuation Assumptions Rental level / Market Rent Following a refurbishment of the subject property and renovation of the offices, we would expect an ERV of €19.50 per sqm. Following some renovation measures of the residential areas, we estimate the ERV of the two residential units to stand at €18.50 per sqm.

Re-letting assumptions Given the good condition, specification and location of the building, as well as the record high office take-up volume in Munich, we expect a high demand for the office areas and very good re-letting prospects. As mentioned in the report sections above, some re-letting costs and rental incentives will be neccesary in order to re-let the vacant areas and achieve market rental level. For the refurbishment we have applied €500/ sq m office and €200/ sq m residential space for the first re-letting.

Yields Prime net initial yields for newly built office buildings in top locations of Munich stand at 2.9%. Considering the older construction year of the subject property, the very central but not prime location as well as possible risks connected with the refurbishment and re-letting of the areas, we would expect the property to transact at a net yield (Potential Rental Income / Gross Market Value) of approx. 4%. In our DCF calculation approach, we have applied a capitalization rate of 3.60% and a discount rate of 3.90% in order to arrive the following yields after stabilisation (CF year 2): gross yield on market rent (=potential rental income) of 4.2% and a net yield of 3.8%.

Sales period Considering the subject property characteristics and the current investment climate in Munich, we are of the opinion that the saleability of the property is very good and that a marketing period of 3 to 6 months would be sufficient after redevelopment. Due to the investment volume potential buyers are most likely to be regional investment companies, family officies as well as private investors. Specific assumptions due to a lack of information

During our inspection, we have been informed that the owner of the property is taking into consideration several redevelopment concepts that include the senario of a building conversion into a residential or hotel building or a refurbishment of the property and re-letting as office space. We are also aware that the owner would like to use the office spaces on the 3rd and 4th floor for its own purposes.

Since none of the plans is finalized, we have adopted the most likely senario, which is the refurbishment of the building and lease-up. Further, in our valuation, we have assumed that if the property was to be sold to an investor, the current owner would lease the required areas on market level (sale-and-lease back deal). Information provided (partly received during the initial valuation as at 31/12/2017)

• Land registry excerpt, dated 16/01/2018 • Cadastral map, dated 11/07/2016 • Floor area measurement dated 22/11/1988 • Floor plans, dated 04/08/1989 • Cost schedule, entrance area, dated 18/10/2016 • Provisional planning permission, dated 05/02/2019

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