Valuation Report Valuation Report Vliegend Hertlaan 15 - 97 Utrecht, the Netherlands 06039-01 Client Morgan Stanley Bank, N.A. Summary Property details Address : Vliegend Hertlaan 15 - 97 City : Utrecht, the Netherlands Property : Office Building Size : 18,233 sq m lfa Parking space : 326 inside parking spaces Tenure : leasehold interest Land registry : Municipality Utrecht, section R, 1097 Tenancy details Number of leases : 17 Vacancy rate : 19.27% WALE : 4.70 year Rental income : € 2,075,157 per year Theoretical rent : € 2,716,838 per year Market rent : € 3,330,215 per year Market value and yields Valuation date : 06-02-2018 GIY on rental income : 7.72% GIY on market rent : 9.46% Market value net € 35,200,000 IRR : 7.77% EN-19 Vliegend Hertlaan 15 - 97 Utrecht, the Netherlands 06039-01 Page 2 Contents Valuation letter ...............................................................................................................................................4 Assumptions ..................................................................................................................................................7 Report ......................................................................................................................................................... 11 Location ......................................................................................................................................... 12 Accommodation ............................................................................................................................. 13 Description ..................................................................................................................................... 13 State of repair ................................................................................................................................ 14 Condition ........................................................................................................................................ 15 Local land registry .......................................................................................................................... 15 Tenure ............................................................................................................................................ 16 Town planning ................................................................................................................................ 17 Services ......................................................................................................................................... 17 Environmental issues ..................................................................................................................... 17 Occupational leases and other agreements .................................................................................. 18 Special assumptions ...................................................................................................................... 20 Comments ...................................................................................................................................... 20 Market analysis .............................................................................................................................. 21 General introduction....................................................................................................................... 21 Dutch economy .............................................................................................................................. 21 Office market .................................................................................................................................. 23 Office occupier market ................................................................................................................... 23 Office investment market ............................................................................................................... 24 Forecast office market ................................................................................................................... 25 Local market analysis .................................................................................................................... 26 Market rent and investment analysis ............................................................................................. 31 Market rent analysis ............................................................................................................ 31 Investment analysis ............................................................................................................. 32 Estimated market rent .................................................................................................................... 33 Valuation methodology .................................................................................................................. 33 SWOT analysis .............................................................................................................................. 34 The property as security for a loan ................................................................................................ 34 Security of income ...................................................................................................................................... 34 Letting period .............................................................................................................................................. 34 Evolution of rental and capital values ......................................................................................................... 35 Investment demand .................................................................................................................................... 35 Property rating ............................................................................................................................... 35 Sources .......................................................................................................................................... 36 Appendices ................................................................................................................................................. 37 Appendix: Photographs .............................................................................................................................. 38 Appendix: Location plan ............................................................................................................................. 42 Appendix: Land registry extract .................................................................................................................. 44 Appendix: Calculation ................................................................................................................................. 45 Appendix: Engagement Letter .................................................................................................................... 46 EN-19 Vliegend Hertlaan 15 - 97 Utrecht, the Netherlands 06039-01 Page 3 Valuation letter EN-19 Vliegend Hertlaan 15 - 97 Utrecht, the Netherlands 06039-01 Page 4 Mr. A. Mascarenhas Savills Valuations Morgan Stanley Bank Claude Debussylaan 48 20 Bank Street 1082 MD Amsterdam Canary Wharf The Netherlands London E14 4AD United Kingdom P.O. Box 75849 1070 AV Amsterdam The Netherlands T: +31 (0) 20 301 2000 F: +31 (0) 20 301 2002 www.savills.nl Amsterdam, 29 March 2018 Dear Mr. Mascarenhas, In accordance with our instruction letter of 9 February 2018 with reference number MO/DR/18030, we have prepared a full valuation of the leasehold interest in the property situated at Vliegend Hertlaan 15 - 97 in Utrecht, the Netherlands as at 6 February 2018 for financing purposes. The property was inspected on 6 February 2018 by Martijn Onderstal. We were able to inspect the whole of the property, both externally and internally, but limited to those areas that were easily accessible or visible. We expressly assume for the purposes of this valuation that there have been no material changes to the property since that date. The valuers with MRICS or FRICS qualifications are RICS Registered Valuers. Furthermore, we confirm that the valuers have sufficient current local and national knowledge of the particular market and the skills and understanding to undertake the valuation. The valuers are in a position to provide an objective and unbiased valuation and have no connection or involvement with the subject of the valuation instruction or the party giving the instruction. The valuation has been prepared in accordance with the Royal Institution of Chartered Surveyors’ (‘RICS’) Valuation - Global Standards 2017 (the ‘RICS Red Book’) effective from 1 July 2017. Furthermore the valuation has been prepared in accordance with the standards of the Dutch Register for Real Estate Valuers (Nederlands Register Vastgoed Taxateurs - NRVT). Attached to this letter is a document entitled ‘Assumptions’ and the valuation report with appendices. EN-19 Vliegend Hertlaan 15 - 97 Utrecht, the Netherlands 06039-01 Page 5 Market value The valuation is to be of the market value. Valuation Performance Standard (VPS) 4 - 4 of the Red Book defines Market Value (MV) 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