Real estate investment Office Market Bucharest

1. Real estate investmentOffice MarketBucharest from Dipl. Ing. Arch. Georg Hellwig, MBA HSGGeneral Manager HOCHTIEF DEVELOPMENT ROMANIA Srl Presentation in the context of Bucharest, 11. Octobre 2007

2. Contents • HOCHTIEF Development • Premises for a good sustainable Yield • Site • Planning • Quality of the real estate • Existing surface and future requirements • How much surface tolerates the market • Real estate market investments – office buildings • Rent – Retrospection and forecasts • Yield – Retrospection and forecasts • Short overview Hotel market • Summary

3. Carsten SellschopfBranch Berlin-Brandenburg Stefan Spilker Branch North, Hamburg Paul Bennison HOCHTIEF Development Poland Sp. z o.o.,Warschau Malchus Schwarzer Branch Weser-Ems, Osnabrück Robert Bambach Branch Rhine-Ruhr, Düsseldorf, Cologne Peter Noack HOCHTIEF Development Tschechische Republik s.r.o., Prag Daniel Jäde Branch Rhein-Main, Frankfurt Ralf Niggemann Branch Südost, Munich HTP Ungarn Kft.,Budapest Ivo Iven Branch Rhein-Main, Frankfurt Georg Hellwig HOCHTIEF Development Austria GmbH, Vienna Office Bucharest, Romania Steffen Jüstel Branch Baden-Wuerttemberg, Stuttgart, Heidelberg Pavel Vecan HOCHTIEF Development Russia, St. Petersburg

4. Facts & Figures HOCHTIEF Development • Founding year: 1991 • Staff: 183 • Project types / HTD competences: - corporate headquarters - office developments - hotel developments - mixed-used facilities - special purpose developments • Sold projects: 90 • Realized sales volume: approx. EUR 4,0 Billion • Realized net floor space: 1.500.000 m² • Projects in realization: 14 • Sales volume: EUR 468 Million • Gross floor space: approx. 184.000 m² • Thereof sold: 96 % • Thereof let: 54%

5. Project development Businessmodell • „Trader Developer“: Project development for institutional investors, no own real estate portfolio • Specializing in commercial real estate (mainly office buildings, hotels and logistics) • Focussing on lucrative office areas in Europe / CEE • Concentrationon downtown locations • „Temporary investor“: No commencement of construction without pre-letting of parts of the building, reduction of equity employed by using debt or early selling to investors • Use of synergy potential and integration of other group affiliates in all phases of project development („best practice“ and „knowledge transfer“) • Sophisticated risk management

6. Premises for a good sustainable Yield •  Sites of the office building (Examples) • Center up to Báneasa Top Site 1A • Báneasa up to Otopeni Very good location 2A • Pipera „South“ (Back-office location) Good location 2B • Pipera „Nord“ average location 1B • Bucharest Southdifficult location 2C • The quality of the locations depends on the infrastructure and of the public opening. • In principle the center and the north of Bucharest is a very good location for the office building market. The west and the east belongs also to the good locations of Bucharest. • The south of Bucharest developes itself very slowly.

7. Premises for a good sustainable Yield • Planning • To observe are: • Efficiency (Achsial raster 1,35m, building depth ca. 13-15m, floor level min. 2,80-3,00m, occupancy rate of the rental areas to the brutto floor space of 82-86%) • Parking spaces (Provision for sufficient parking spaces) • Planning mix (Configuration of the office location as a habitat with Break Out Areas, • Coffees, Restaurants and local amenities) • Architecture ( A modern and trendsetting Architecture with well-known Architects from abroad, respectively with countries comprehensive fame.)

8. Premises for a good sustainable Yield • Quality of the real estate • Class A „International Standard“ • „What does this mean“? • High construction standard: • slender constructions, which facilitates a lot of light incursion • High standard for the building technic thru new and innovative heating and cooling systems • High upgrading standard in quality and products ( for ex. Glas partition wall) • Good quality Facade in configuration and implementation in modernest structure

9. Existing stock and future requirements • Existing surface ca. 1.500.000 m², of which ca. • Class A  „national and international Standard“ 550.000 m² • Class B  500.000 m² • Rest old stock 450.000 m² • In generally as from 2004 the office standard was high-graded realized. • New production, in structure and planning until 2010 (estimation) ca. • Class A  700.000 m² • Class B  300.000 m² • - End of 2006 the stock for class A-office was of ca. 400.000 m2 and Class B-office 300.000 m2 in Bucharest (Total 700.000 m2 office space), without old stock. • - End of 2008 awaits a stock for Class A-office of ca. 800.000 m2.

10. How much surface can the market tolerate? • min. 3.000.000 m² Class A office space can be realized in our opinion without any risks. Further another growth can take place for long term only if in Bucharest the premises for a general economic expansion will be created. These are especially for the real estate branch: • Better city center infrastructure in the traffic and in the public transportation • Creation of enough parking spaces • Wider qualification package for junior employees • Co-ordinated urban planning in the area of the industry areas, residential and infrastructure as a city planning master plan on a basis of the present developments.

11. Investment real estate market – office buildings • Rents retrospection and forecast • At the beginning of the 90 the rents were about 25 – 30 €/m² (30 – 40 USD/m²), today at ca. 16 – 21 €/m² • The rent level will level in the next years to 14 - 20 €/m². • Developments over 100.000 m² will flow between 14 – 18 €/m². • In general the rent level will stagnate.

12. Investment real estate market – office building  Yield – Retrospection and forecasts Average earnings performance of offices 2003-2010 In the following years the earnings tendency will be stable, the rent level for good location Class A real estate will stagnate. Up until now ca. 800 Mio EURO were invested in the office market, proportional to the surface expansion the investment market will also develop.

13. Short overview Hotel market • Stock ca. 7.500 rooms in 2-5 Stars Segment, thereof six 5 Stars Hotels with ca. 1.500 rooms • In construction and planning there are 2.500 rooms until 2012 • A further demand of ca. 3.000 rooms exists. • The expected rent/room lies above the european average • The yields circulates arround 6% for the 4-5 Stars Segment and until 2010 will be estimative arround 5%-6% situated.

14. Summary • After the location the quality is relevant for the sustainable yield • Furthermore it exists a solid demand for Class A-Products • The rent level will be long-term stabilised ( depends on the location) between 14-20 €/m² , whereby on average 15 €/m² is to be expected. • A first saturation of the surface demand on the market will be reached first in 2012 , whereby the investment market will already capitalise these new surfaces until 2010. • Thus is to be expected the yields depending on the location and quality to be leveled between 5,5%-6,5%.