December 2017 FINEP Hloubětín a.s., J&T Banka, a.s. Office Park Hloubětín, Czech Republic Office Park Hloubětín located in Prague 9, Czech Republic Contents 1 Executive Summary ........................................................................................................ 6 2 Location ......................................................................................................................... 9 2.1 Macro Location ............................................................................................................................................................................ 9 2.2 Micro Location ........................................................................................................................................................................... 10 3 Description ................................................................................................................... 12 3.1 Site Characteristic ..................................................................................................................................................................... 12 3.2 Access .......................................................................................................................................................................................... 12 3.3 Services ....................................................................................................................................................................................... 12 3.4 Building Description, Construction and Condition ........................................................................................................... 12 3.5 Accommodation ....................................................................................................................................................................... 13 3.6 Soil Conditions and Contamination ..................................................................................................................................... 14 3.7 Flood Risk ................................................................................................................................................................................... 14 4 Legal ............................................................................................................................ 15 4.1 Tenure .......................................................................................................................................................................................... 15 4.2 Title List No. ................................................................................................................................................................................ 15 4.3 Planning ...................................................................................................................................................................................... 16 4.4 Occupancy Permit .................................................................................................................................................................... 17 5 Tenancy ........................................................................................................................ 18 6 Market Commentary ..................................................................................................... 19 6.1 Czech Republic Economy ........................................................................................................................................................ 19 6.2 Prague Office Market Overview .............................................................................................................................................. 20 6.2.1 Stock and Supply ................................................................................................................................................................. 20 6.2.2 Demand .................................................................................................................................................................................. 21 6.2.3 Vacancy ................................................................................................................................................................................... 21 6.2.4 Rental Levels.......................................................................................................................................................................... 22 6.2.5 Net Absorption* .................................................................................................................................................................... 22 6.3 Prague 9 Office Market Overview ........................................................................................................................................... 23 6.3.1 Stock and Supply ................................................................................................................................................................. 23 6.3.2 Demand .................................................................................................................................................................................. 24 6.3.3 Vacancy ................................................................................................................................................................................... 25 6.3.4 Rental Levels.......................................................................................................................................................................... 25 6.4 Rental Value Considerations .................................................................................................................................................. 25 6.4.1 Rental Evidence .................................................................................................................................................................... 25 6.4.2 Rental Value Rationale ........................................................................................................................................................ 26 6.5 Investment Market Commentary ........................................................................................................................................... 26 6.5.1 Investment Considerations – Office Transactions ........................................................................................................ 27 6.5.2 Yield Rationale ...................................................................................................................................................................... 29 7 Valuation ...................................................................................................................... 30 7.1 Valuation Methodology ........................................................................................................................................................... 30 7.2 Adopted Methodology ............................................................................................................................................................. 30 7.3 General Valuation Assumptions ............................................................................................................................................ 31 7.4 Specific Valuation Assumptions ............................................................................................................................................ 32 7.5 SWOT Analysis ........................................................................................................................................................................... 33 8 Valuation Conclusions ................................................................................................... 34 8.1 Confidentiality ........................................................................................................................................................................... 34 COPYRIGHT © JONES LANG LASALLE IP, INC. 2019. All Rights Reserved 2 Office Park Hloubětín located in Prague 9, Czech Republic Letter FINEP Hloubětín a.s. (the Client) Jones Lang LaSalle s.r.o. Havlíčkova 1030/1 Myslbek, Na Příkopĕ 1096/21 110 00 Prague 1 110 00 Prague, Czech Republic Czech Republic Ján Zibura MRICS J&T Banka, a.s. (the Bank) Pobřežní 297/14 186 00 Prague 8 Tel: +420 224 234 809 Czech Republic [email protected] 17th April 2019 Dear Sir/Madam, Valuation and Report on Office Park Hloubětín, located in Prague 9, Czech Republic We have pleasure in reporting to you in accordance with our valuation agreement dated 6th March 2018 regarding the valuation of Office Park Hloubětín, located in Prague 9, Czech Republic (the “Property”). We understand that the valuation is required for the LTV Test Purposes of J&T Banka, a.s. We inspected the Property on 16th April 2019 and have carried out all the necessary enquiries with regard to rental and investment value, planning issues and investment considerations. We have not been instructed to carry out a building survey or environmental risk assessment. We have been provided with floor areas by the Property Management of Office Park Hloubětín. We performed check measurement that shown deviation of less than +/- 2%. Therefore we have assumed that the provided areas are correct and accurate. We confirm that Jones Lang LaSalle provides the valuation