Új Buda Center

Hengermalom út 19 – 21
Budapest 1119
Hungary

REPORT AND PROPERTY VALUATION

FOR

ÚJ BUDA CENTER, HENGERMALOM UT –

BUDAPEST XI

AS AT

30th September 2008

 King Sturge Kft.
Roosevelt Office Ceneter
H-1054 Budapest
Roosevelt Ter 7-8

T +(36 1 ) 451 1010

F +(36 1) 451 1011
www.kingsturge.com

EXECUTIVE SUMMARY

Address: Uj Buda Centre

Hengermalom utca 19-21
Budapest H- 1119
HRSZ: 4021/4
Location: The subject property is located on the Buda side of the Danube River in
Budapest XI District Kelenfold fronting the junction of Hengermalom út and
Budafoki út which runs parallel with Szeremi ut and Fehervari ut. The
property lies on the former site of the Hungarian Cable Works (MKM Rt)
which occupies a prominent position along Budafoki ut. Historically the area
has been principally industrial in nature with manufacturing, logistics and
storage being the principle activities. The area is witnessing rapid
development and investment in terms of new commercial and residential
buildings. In the past 2 years, Budafoki ut has been resurfaced which has
eased traffic congestion, several new commercial developments have been
completed such as IP West and Budafoki Center with numerous new
schemes under development such as Office Gardens and Malom Business
Center. With the addition of new residential development, Kelenfold has all
the ingredients for long term gentrification and sustainability.

Property: The subject property lies on the plot number HRSZ. 4021/4 which extends to
4.4419 Ha. It comprises a single stand alone building running parallel with
Budafoki ut. Access to the property is either from Budafoki ut or Hengermalom
ut, there are two points of access from Budafoki ut, one being for deliveries and
servicing. The property was built around the mid 1960’s as a manufacturing hall
for MKM Rt. The existing building is arranged over ground, first and second
floors. The ground floor area offers approximately 27 unit shops accessed
externally as a parade anchored at the southern end by Tescos. The ground
floor offers a useable area of 15,068 m2.

The first floor is accessed by internal stairs or lifts from 5 points within the
building; this floor extends to 2,790m2 and is principally arranged as a gallery
over the western façade of the building. The floor will be used for offices with
each suite being between 200m2 – 300m2. The stairs or lifts lead to the
second floor which has been converted to offer 6 large open plan galleries
offering 1,060m2 – 1,600m2. Each gallery could ideally lend itself to a leisure
activity such as a nightclub, bowling, fitness center, bar and restaurant or
similar entertainment.

A second phase, within the plot, occupies a land area of 4,700m2 directly
bordering the western boundary of the site. The second phase is planned to be
developed in Q2 of 2009 and will provide roughly 1,700m2 arranged over
ground floor and mezzanine gallery of 970m2.

Tenure: The subject property is currently owned by Sybil Holding Ingatlanforgalmazo

Kft. We have inspected the Cadastral title documents and the property is
registered under HRSZ 4021 /4. There is mortgage claim from FHB
Jelzálogbank Ny Rt. No. 189605/1/2007/07. 06. 25 for an amount of 20.0m
Euros.

The subject property is held on a freehold interest. The title does not contain
any unusual or onerous conditions or obligations other than those referred to

Part of the King Sturge International Group with offices throughout Europe, North America and Asia Pacific. In association with King Sturge Corfac International
Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

above.

Tenancies: The subject property is currently let to approximately 29 tenants with vacant
areas found principally on the first floor and second floor. We are advised that
part of the 2nd floor will be occupied by leisure activities. The property at the
date of valuation is 95% let on the ground floor.

Market Value
building and land on
€ 36,400,000 (Thirty Six Million Four Hundred Thousand Euros) as at
the assumption all
30th September 2008.
parts are let (Excl
AFA):

Residual Site Value

€ 1,930,000 (One Million nine Hundred and thirty Thousand Euros)
of Phase 2
as at 30th September 2008.
development.

Market Value of € 2,000,000 (Two Million Euros) as at 30th September 2008.

Phase 2 (Excl AFA)
On Comparable
basis:

This summary should be read in conjunction with the remainder of our Valuation Report
and must not be relied upon in isolation.

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Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

26th October 2008

Sybil Europe Public Co. Limited

Nicosia Cyprus

For the Attention of:

Mr. Kobi Kaspi, CFO,

Dear Sirs,

PROPERTY VALUATION OF PHASE 1 and 2 OF UJ BUDA CENTER – BUDAPEST

XI.

1 INTRODUCTION

1.1 INSTRUCTIONS

In accordance with your instructions dated 24th September 2008, from Sybil Europe
Public Co. Limited, by Kobi Kaspi, CFO, we have inspected and valued the above
properties which are owned by Sybil Holding Ingatlanforgalmazo Kft (“the Company”)
and referred to in the appendices, in order to advise you of our opinion of the 100%
interest Market Value of the freehold interests in the currently developed and
undeveloped property. The valuation is of the 30th September 2008.

As referred to in the appendices the valuation has been undertaken without having seen
any structural, soil survey or environmental report and we would draw your attention to
section 1.6 below.

Our valuation advice has been prepared in accordance with the basis of valuation and
valuation assumptions set out below and in accordance with the Appraisal and
Valuation Standards, Sixth edition, published by the Royal Institution of Chartered
Surveyors (RICS).

Details of the surveyors inspecting and valuing each property are provided in the
Appendix to this report.

1.2 STATUS OF VALUER & CONFLICTS OF INTEREST

We confirm that we have undertaken the valuations acting as External Valuers as

defined in the RICS Appraisal and Valuation Standards.

1.3 PURPOSE OF VALUATION

We understand that this Valuation Report is required in connection with internal

reporting, and for the purpose of using it for the preparation of, the company’s and its
affiliates’ financial reports, according to the IFRS. King Sturge consents that this
valuation would be attached to the publicly published financial reports of Sybil Europe

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Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

Public Co. Limited and Sybil Germany Public Co. Limited on the Tel Aviv Stock
Exchange and the Israel Security Authority.

Please note the basis of valuation adopted may not be appropriate for other purposes,
so the Valuation should not be relied upon for any other purpose without prior
consultation with us.

1.4 BASES OF VALUATION

The value of the property has been assessed in accordance with the relevant parts of
the current Appraisal and Valuation Standards (the “Red Book”) published by the Royal
Institution of Chartered Surveyors (RICS). PS 3.2 of the Red Book defines "Market
Value" as "The estimated amount for which a property should exchange on the date of
valuation 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".

The properties are held freehold

For Property held for Development or in the course of construction, as requested by

Sybil Europe Public Co. Limited, we have considered Market Value on the following
basis:

Market Value of the existing project in its present condition at the time of valuation
based upon its leased status and on the parameters contained herein. We have
adopted a Discounted Cash Flow approach in order to appraise the subject property.
The property according to our knowledge is with planning and building permits for a
retail development.

The undeveloped property has been appraised adopting a residual approach and a
comparison approach.

1.5 TAXATION & COSTS

No allowances have been made to reflect liability to taxation or other costs associated
with disposal. Nor, as is customary in Central & Eastern European markets, has an
allowance been made in respect of purchaser’s costs.

1.6 ASSUMPTIONS AND SOURCES OF INFORMATION

The Glossary to the Red Book states an assumption to be a "supposition taken to be

true". This may include information or conditions affecting the subject property or
approach to a valuation that, by agreement, need not be verified by a valuer.

In undertaking our valuations, we have made a number of Assumptions and have relied
on certain sources of information. Where appropriate Sybil Holding Ingatlanforgalmazo
Kft. has confirmed that our Assumptions are correct so far as they are aware. In the
event that any of these Assumptions prove to be incorrect then our valuations should be
reviewed of may affect the valuation.

The Assumptions made for the purposes of our valuations are referred to below:-

The client has provided us with such information as details of tenancies, use, town
planning consents and the like. We have obtained title documentation form the
Budapest Land Registry and floor plans from Casiopea Group, the schemes architects.

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Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

We have assumed that the documentation supplied is correct and that our
understanding of the situation is also correct.

We have made an Assumption that the Company is possessed of good and marketable
freehold title in each case and that there are no encumbrances or unduly onerous or
unusual easements, restrictions, outgoings or conditions that are likely to have an
adverse effect on the value of the properties. The valuation also assumes that the
property is free from mortgages.

We have not affected official searches and for the purposes of this valuation we have
assumed that full planning consent exists. We have assumed that established use rights
are available for the existing building in its present use.

We have not calculated areas and have relied upon areas provided by the owners,
which we assume to have been calculated in accordance with local market practice.

We have not carried out structural surveys nor have we inspected those parts of the
properties which are covered, unexposed or inaccessible and such parts have been
assumed to be in good repair and condition. We cannot express an opinion about or
advice upon the condition of uninspected parts and this report should not be taken as
making any implied representation or statement about such parts. We have had regard
to the general condition of the properties as observed in the course of our inspection for
valuation purposes.

We have not arranged for any investigation to be carried out to determine whether or
not high alumina cement, calcium chloride additive or any other potentially deleterious
material has been used in the construction of the properties and we are therefore
unable to report that the properties are free from risk in this respect. Since the present
construction was refurbished and obtained its occupancy permit during December 2006,
we consider, for the purposes of these valuations, that such investigation would not
disclose the presence of any such material in any adverse conditions.

Certain types of composite cladding panels contain combustible insulation which causes
concern to some insurance companies. During the course of our inspections for
valuation purposes we were not able to determine the insulation within any composite
cladding panels and recommend that you obtain assurances that the panels have a
suitable fire retardant quality and insurance is available. Nonetheless, since the property
obtained its occupancy permit during December 2006, we assume that all is in order
since the scheme has been trading without interruption.

No specialist tests have been carried out on any of the services systems and for the
purpose of these valuations and given that the premises obtained is occupancy permit
in December 2006, we have assumed that all are in reasonable working order and in
compliance with any relevant statutory regulations.

No allowance has been made in these valuations for any items of plant or machinery
not forming part of the service installations of the buildings. All items of plant,
machinery and equipment wholly or primarily related with the occupants’ business have
specifically been excluded.

We have not carried out site surveys or environmental assessments or investigated

historical records to establish whether any land is, or has been contaminated. We are
not aware of the content of any environmental audit, site survey or any other
investigations which may have been carried out on the properties that may draw
attention to any contamination or the possibility of any contamination and we have
assumed that no hazardous or potentially contaminated substances have been or are
being used at the properties. Should it however be established subsequently that
contamination exists at the properties or on any neighbouring land or that the premises

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Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

have been or are being put to any contaminative uses, this might reduce the values now
reported.

No soil bearing tests have been carried out by us and we cannot offer any opinion either
as to the suitability of the sites for existing or proposed developments nor the condition
of or potential liability for any embankment, river, wharf or retaining wall.

We have not made any assessment of the potential liability for flooding and for the
purposes of this valuation have assumed the properties would not be subject to
flooding.

1.7 COMPLIANCE WITH STANDARDS

This report has been prepared by James Kinnell BSc, MRICS, MPhil, a Chartered
Surveyor with 12 years experience in the region and qualified to give valuation advice
on this type of property and in this locality. This valuation has been made in accordance
with the Valuation and Appraisal Standards (the Standards) published by the Royal
Institution of Chartered Surveyors (RICS), subject to the Special Assumptions explained
below.

King Sturge Kft. is acting as External Valuers. An External Valuer is defined in the
Standards as “A valuer who, together with any associates, has no material links with the
client, an agent acting on behalf of the client, or the subject of the assignment.”

We confirm that King Sturge Kft. has no direct interest in the property or the parties
associated with it. King Sturge confirms that the engagement letter signed between it
and Sybil Holding Ingatlanforgalmazo Kft. is on an arms length basis with a
remuneration based upon a fixed fee without insentivisation. Accordingly, we are able
to provide independent advice.

Our involvement in the property dates back to April 2007 when we were asked by Sybil
Europe Public Co. Limited to provide a valuation report for the purpose of financial
reporting.

2 VALUATION SUMMARY

We have appraised the existing property value based upon its present cash flow with an
appropriate assumption for leasing up of the vacant parts. We have adopted a discount
rate of 8.0% for ground floor we have applied the same discount rate on the upper
floors, but have applied a vacancy of 36 months due to the current market situation.
For the development of Phase 2 we have adopted a 7,75% cap rate on full rental
income together with adopting an 18month void at commencement.
We have arrived at the market value based upon the assumptions herein to be:

€ 36,400,000 (Thirty Six Million Four Hundred Thousand Euros) as at 30th September
2008.

Phase 2 Development site based upon a comparison approach reflects a market value
of :
€ 2,000,000 (Two Million Euros) as at 30th September 2008.

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Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

4 LOCATION
GPS Ref: N 47.28.677
E19.03.009

The subject property is located in the eastern part of Budapest’s District XI

approximately a third of the way along Budafoki ut, a busy artery which runs parallel
with both Szeremi ut and Fehervari ut and ultimately leading into the M6 motorway
which connects Budapest with Pecs in southern Hungary. The subject property is
positioned on the left hand side of the street at the junction of Hengermalom utca if one
is driving south, away from Budapest. Although the area still has an industrial
predominance, there are an increasing number of residential developments completed
or planned which require the amenity of a neighbourhood retail scheme which Uj Buda
Center can offer. The northern end of Budafoki ut has witnessed a significant amount of
investment including the development of Westels’ headquarters, the development of IP
West by AIG and Budafoki Center. The mid section of Budafoki ut has similarly seen
increasing gentrification with the refurbishment of Budapest Fovarosi Gaz Muvek district
headquarters, the construction of the Malom Business Center on the opposite corner to
the subject appraised property and Pannon GSM’s district offices. Some 2 -300m south
of the site is the Budafoki Business Center, Ram-Dunatec, INKU, and ELBA Business
Center which was the former Nestle production facility.

Due to the nature of the properties, Budafoki ut is planned as an industrial and

manufacturing area due to its proximity to the Danube benefiting for loading and
unloading heavy bulky cargos. As a result many of the properties still possess this
industrial theme. Today the picture is changing and it is expected to see former
industrial and manufacturing sites rezoned for residential and more sensitive
commercial uses.

A location plan is appended to this report

4.1 COMMUNICATIONS

The subject property is easily accessible both by public and private transportation. It is
located at the intersection of two principle streets in the XIth District. Hengermalom ut,
a 4 lane road leads directly from Etele ut to the west, it being one of the most important
transport hubs in the locality. Whilst Budafoki ut, a 6 lane road, leads to the north from
both Petofi and Lagymanyosi Bridge connecting Buda with Pest. Being positioned at
the intersection of these two important arterial roads ensures the scheme that it is easily
accessible from all parts of the XI th District which forms the principal catchment area.
Given the heavy volume of traffic using these two roads, visitors can expect to
experience some congestion during peak commute hours. In terms of public
transportation, the only means of access is by bus or trolley with No 3 and 103 passing
the subject property. In time the 4th metro link will be built across the XI th District
however the subject site will not benefit since it is not located near any planned stations.

Street parking in the area is limited, but there are more than sufficient parking spaces to
the east and west elevation of the property which is suitably orientated towards the
principle points of access. Access from the western part of the district is gained via
Hengermalom ut which allows both right and left turn traffic. From the north or south
Budafoki ut provides the only access with two points on egress/ingress to the site albeit
they only permit left hand turn traffic.

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Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

4.2 SITUATION

The development is bounded by major roads to two sides and other development to the
others. he northern boundary of the site is defined by Hengermalom utca which is set
back some 25m from the façade of the property. Beyond are small workshops and an
OMV petrol station. To the east is Budafoki ut which runs the entire length of the façade
and is similarly set back by the same distance. Apart from Pannon and Fovarosi Gaz
Muvek Rt the rest of the properties are older manufacturing or storage buildings such as
Beltex.

The western border borders on to Phase 2 which in turn abuts the Office Gardens
development and undeveloped land rumoured to be under development for up to 2,000
residential apartments. To the south, the site borders on to INKU, an interior design
and décor outlet. The surroundings have significantly improved over the past 18 months
and the feel of the neighbourhood is one gentrification and growth. Commercial
occupiers include Sade, Pannon, Pirelli, Trendex, Welle, Westel, ERSTE Bank.

5 SITE

Our understanding of the site’s boundaries are marked below and we have attached a
“Terkepmasolat” – cadastral plot plans attached to this report.

The site of the existing shopping center (red outline) extends to 44,419 m² and is
principally rectangular in shape having the approximate dimensions of 220m long (north
south axis) by 170m wide (east-west axis). The topography is flat.

The site of Phase 2 is roughly square, extends to 4,700m2 and is shown in blue.

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Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

6 DESCRIPTION

6.1 THE PROPERTY

Phase 1 of the scheme involved the redevelopment of a former factory building to

provide a mixed use scheme, with a primary focus on a neighbourhood retail facility.

The existing building has been cleverly converted from a manufacturing hall to now
provide ground level convenience retail facilities, a strip of offices at first floor and large
galleries at second floor level. The property was built around the mid 1960 and has an
approximate height of 19m. The façade shows little of the former industrial nature of the
building and it is only the upper gallery where there are signs of the manufacturing hall.
The present building has a useable area of 27,525 m2 including a balcony area
extending to 1,663 m2.

The new development now offers approximately 15,068m2 of ground floor retail
arranged in a linear parade fronting the principal external car parking. Access to the
shops is via a covered gallery running the entire external length of the scheme with only
a single small mall running through the middle of the scheme. Some of the larger shops
such as Tesco and JSYK have access from both sides of the development. This is
important for Tesco since the Budafoki entrance is positioned at the bus stops. The
scheme provides for a variety of shop units sizes from a minimum of 82m2 up to
4,868m2.

The table below indicates the number of units delivered and the floor areas.

Floor Level Units Area m2

Ground 32 15,068
First 9 2,790
Second 6 8,004
Second terraces 6 1,663
53 27,525

The first floor and second floor are accessed from 5 independent cores located along
the western façade of the building. Each core has stairs and in 3 there are hydraulic
lifts. The stair cores will also provide a fire escape. The first floor provides a narrow
strip of offices overlooking the car park, The configuration of the ground floor does not
permit a full office floor plate since the internal height at ground floor level is
approximately 6.5m and extends to the slab of the second floor. The first floor is divided
into 6 office suites accessed from each building core. The internal height is
approximately 3.7m. We have not been provided with a detailed technical description of
the offices; however we were reported that they will offer a class B+ standard.

The specification of the ground floor is fairly simple with exposed building services in the
ceiling, pendant 500 Lux lighting, convection heaters and tiled floor coverings or painted
resin floors, all retail units have glazed facades and service doors.

The scheme benefits from its own car parking both to the eastern elevation where it
fronts Budafoki ut where there are 120 spaces for car parking and to the rear of the

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Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

scheme where there are approximately 420 spaces. Together this provides a ratio of 1
space per 51 m2 leaseable retail area.

Servicing of the shops is provided externally with units A11, A12, A14 A17 and A18
having an inner loading corridor via a covered loading dock to the eastern façade. This
allows large lorries to access the building from Budafoki ut without disturbing the
customer car park area.

6.2 DEVELOPMENT BUDGET & PROGRESS

The development budget of Phase 2 provided by Sybil Europe Public Co. Limited
reflected an estimated total value of € 5,33 m for excluding the residual land value at the
time of being built. We have summarised below.

1 Construction 1 823 000

2 Design and surveys 160 000

3 Land 1 562 000

4 Marketing 100 000

5 Advertising+Promotion 125 000

6 Legal Fees 50 000

7 Independent Engineer (estimation) 50 000

8 Project Management 100 000

9 Head office 150 000

10 Finance costs 330 000

11 Management 350 000

12 Tenants improvements 200 000

13 First year running operation 150 000

14 Contingencies 182 000

Total estimated costs 5 332 000

6.3 FLOOR AREAS:

A summary of leaseble floor areas provided to us by Sybil Europe Public Co. Limited via
their architects Casiopea Group Kft is presented below. We have assumed these to be
correct and calculated in accordance with market practice:

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Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

Floor Function Built Height, m Useable

Area, m²

Ground Retail + 0,73 15,068

First Offices +6.82 2,790
Second Retail/ Leisure +10.4 8,004
Terraces +10.4 1,663

Total Net 27,525

PHASE 2:

Floor Function Common Area Useable Area, m²

UJ Buda2 - A1 209,8 0% 209,8
UJ Buda2 - A2 83,5 5% 87,7
UJ Buda2 - A3 83,7 5% 87,9
UJ Buda2 - A4 172,0 5% 180,6
UJ Buda2 - A5 83,7 5% 87,9
UJ Buda2 - A6 83,7 5% 87,9
UJ Buda2 - A7 171,8 5% 180,4
UJ Buda2 - A8 83,7 5% 87,9
UJ Buda2 - A9 141,5 5% 148,5
UJ Buda2 - A10 82,0 5% 86,1
UJ Buda2 - A11 363,0 0% 363,0
UJ Buda2- A1G 132,7 5% 139,3
UJ Buda2- A4G 164,5 5% 172,7
UJ Buda2- A7G 132,0 5% 138,6
UJ Buda2- A9G 117,0 5% 122,9
UJ Buda2- A11G 444,7 0% 444,7
TOTAL 2,549 m2 2,625 m2

7 SERVICES:

We understand that all mains services are available to the property including electricity,
gas, telecommunications, water and mains drainage. We have assumed that the
capacity of the services is adequate for the future use of the property and the
subsequent development of Phase 2.

8 PLANNING

8.1 PLANNING SITUATION OF THE SUBJECT PROPERTY

The planning decisions for the subject property (Határozat Phase 1) have been
obtained since the scheme was authorized to be opened for use on December 2006.

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Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

Phase 2 is under planning and as of the date of this report there is no detailed planning
permit, merely a general zoning.

9 TENURE

9.1 SUMMARY

For the purposes of valuation we were provided by Sybil Europe Public Co. Limited,
with title documents. The ownership of the subject site registered under Plot No 4021/6
Sheet number 8000004/320150/2008 dated 6th October 2008 shows that the property is
owned by;

i). Sybil Holding Ingatlanforgalmazo Kft. located at H-1026 Budapest, Harangvirag

utca 5 who are registered with an interest of 1/1 the subject property under
reference 40091/2/2006/06.01.16.

The above confirms that the property is owned in full by the mandatory and the site
extends to a total of 44,419 m2. There are three encumbrances on the title documents,
and two marginal notes. Whilst the encumbrances are not in our opinion onerous we
would not be able to ascertain if these have an adverse effect on value, furthermore, we
cannot qualify the marginal notes.

i). Marginal Note 540/ 2006.02.06: Sybil Holding Kft as owner located at H-1117
Budapest, Hengermalom út 19-21 has requested a change of registered
address from Harangvirag utca 5.
ii). Marginal Note 82280/ 2006.03.03: CIB IngatlanLizing Rt, located at H-1138
Budapest, Vaci ut 140 has requested a charge referred to as a ‘service right’.
We cannot see from the title documents what this request specifically refers to.
iii). Encumbrance 40091/ 2/2006/ 06.01.16: Modification of the site area subject to
Plan T- 75769 in order to make a plot subdivision to create HRSZ 4021 / 4. We
have not seen the referred to plan and cannot qualify the impact this would
have on the appraised property nor the area to be parcelled as 4021 /4.
iv). Encumbrance 40091 /2/2006.01.16: Mortgage right in favour of HVB Bank
Hungary Rt, located at H-1054 Budapest, Szabadsag ter 5-6 for an amount of
19,874,400 Euros.
v). Encumbrance 40091 /2/2006.01.16: Purchase right in favour of HVB Bank
Hungary Rt, located at H-1054 Budapest, Szabadsag ter 5-6 in relation to the
mortgage right above.

The ownership of the Phase 2 site registered under Plot No 4021/6 Sheet number
8000004/320184/2008 dated 6th October 2008 shows that the property is owned by;

i). Sybil Heights Ingatlanforgalmazo Kft. located at H-1026 Budapest,

Hengermalom utca 19-21 who are registered with an interest of 1/1 the subject
property under reference 53053/1/2008/07.12.16.

The above confirms that the property is owned in full by the mandatory and the site
extends to a total of 4,698 m2. There is a purchase option for the benefit of Sybil
Holdings Ingatlanforgalmazo Kft. Whilst the encumbrance is not, in our opinion,
onerous on value, furthermore, we cannot qualify the marginal notes.

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Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

For the purpose of our valuation, we have assumed that the above is correct. In the
event that any of these Assumptions prove to be incorrect then our valuations should be
reviewed of may affect the valuation.

We have assumed that there are no other encumbrances or unduly onerous or unusual
easements, restrictions, outgoings or conditions that are likely to have an adverse effect
on the value of the property and we have assumed that there is a good marketable title.

For the avoidance of doubt our valuation does not take into account any mortgage to
which the property may be subject.

9.2 OWNERS INTEREST

Sybil Holding Ingatlanforgalmazo Kft. have made an application to subdivide the land
referred to as HRSZ: 4021 /4 under plan T-75769. The purpose is to sub divide the plot
and to allocate 4,700m2 to Phase 2.

10 TENANCIES

10.1 SUMMARY

At the date of valuation the property was subject to 29 individual tenancies and 33
occupied units. The ground floor was approximately 95% let to a mix of convenience
profile retailers. The largest occupier on the ground floor is Tesco anchoring the
southern end of the parade with 5,076 m2 excluding a service yard adjacent to the
store. Within the Tesco's store is a strip of 5 small retailers opposite the check out tills.
Other principle occupiers in the parade are JYSK, KIK, Office Depot and Fressnapf,
Burger King, Post Office and more.

Tesco occupies the area on a 15 year lease commencing on the 1st December 2006,
the other larger foot print retailers are on 10 year leases commencing at during
December 2006. Unit shops occupied by the likes of DM, Unicredit Bank, Cardo are on
5 + 5 year leases.

The first floor was under reconstruction at the time of the valuation and was not in a
condition which could be leased. To our knowledge there are no pre-leases in place.
The first floor will offer 6-8 self contained office suites facing the car park and ranging in
size between 205m2 up to 541m2. The second floor galleries are suitable for
entertainment and leisure activities. We have not seen a sample lease but have been
provided with a summary of the principle terms which are outlined in § 11.4.0.

11 MARKET COMMENTARY

11.1 OCCUPATIONAL MARKET

Budapest Modern Office Market

Current stock of A class offices has reached a little over 2,13 million m2 on the
Budapest market excluding owner occupied space, with almost further 700,000 m2 of
office space in the pipeline (delivery over 6-18 months time), which we are of the
opinion that most of this space will be delivered within this period unless project
financing in the senior debt markets worsen.

1. Supply

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By the end of Q2 2008 a total of 132,000 m2 of new class A office space has been
delivered and a further 188,000 m2 is projected to be delivered by the end of 2008. In
2009 it is expected that 300,000 m2 of new class A office space will be completed.
Completions in H1 on the Pest side included, BSR Center (25,480m2), Millennium
Tower III (19,600m2), Corvin Offices I (15,700m2), KÉSZ Udvár II (4,200m2), Átrrium
Park (15,160m2) and K6 (1,500m2) Pest Non Central saw the highest completions
representing 73,000m2.

There were 4 buildings on the Buda side completed which included: Urban Studio
(4,000m2), Flórián Udvar (10,920m2) were delivered in North Buda whilst in South
Buda, Bártók Udvar (5,200m2), South Buda Business Center (22,530m2), and Office
Gardens (15,000m2) were completed.

In H2, we forecast over 200,000m2 will be delivered, with the majority of activity
expected in Pest non Central where 128,000m2 is scheduled. Project completions
include Millennium Tower II (19,300m2), Haller Gardens (32,000m2), Horizont Park
(3,600m2) and Spirál (32,000m2),

Pest Central is the second most favoured submarket for project deliveries with roughly
66,900m2 forecasted. Projects include Capital Square (30,500m2), Medimpex
(17,000m2), River Park (9,700m2). Following closely behind is South Buda with
60,000m2 of new supply expected to be delivered in 2009. Projects include InfoPark E
(15,500m2), IP West III (14,000m2) and Office Garden II (15,200m2).

The above developments will push vacancy up from its current 12,5% by some 4%
reaching almost 17% resulting in a saturated market, larger landlord incentives being
paid and declines in headline rents are expected. This creates an uncertain picture and
with a slow down in the local economy and occupier demand the prospects are not
upbeat. It should be noted that the majority of this new development is in north Pest
(Váci út corridor) and South Buda. By contrast, Praha has a vacancy of 5,8% and
Warsaw 2,7% respectively.

Chart 1.: New Supply, Demand, Vacancy Rate 2003 – 2008 Q2

120000 25

100000
New Supply 20
Take-up
80000 Vacancy Rate
15
m2

60000
%

10
40000

5
20000

0 0
2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

source: BRF

Supply of District 11

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The 11th District sub-market offers a fraction of approximately 13% of the Budapest
modern office stock, reaching 268,000 m2 (see table 1.). This compares with Pest
Non Central having 600,000m2 or 24,7% of the stock and Pest Central with
572,000m2 or 23,6% of the stock.

The existing stock is likely to be doubled by the end of 2009 with the further 287,000
m2 expected to be delivered, which will definitely generate a substantial influence on
the submarket (see table 2.)

Table 1.: Existing office Buildings in District 11

Total Vacancy
Building
area m2 rate

1 Eleven Business Center 5 000 7,0%

2 Rubin Business Center 4 718 7,9%
3 Horizont Park Irodaház 3 595 79,6%
4 BCW Irodaház 4 561 0,0%
5 Dorottya Udvar 28 000 25,0%
6 Bartók Udvar 14 500 3,9%
7 Bartók Ház 12 000 0,0%
8 Science Park 29 062 0,0%
9 Infopark "A" 12 300 4,6%
10 Infopark "B" 8 400 11,0%
11 Infopark "D" 18 500 7,2%
12 Infopark "I" 8 700 11,3%
13 Infopark "C" 11 310 0,0%
14 IP West I-II 30 000 47,5%
15 Dél Buda Center 8 000 50,0%
16 Multi Plaza 7 082 14,3%
17 Office Garden Irodapark 15 030 77,0%
South Buda Business
18 Park 21 300 100,0%
19 BC 209 2 350 23,4%
20 Budaörsi 64 3 465 8,1%
21 Új Buda Center 2 300 74,8%
22 BFI House 6 526 59,5%
23 Prielle Corner 10 000 0,0%
24 Budavirág House 1 267 0,0%
TOTAL 267 966 27,0%

Table 2.: Major Office Schemes with middle to high probability of realization by 2009/
2010

Total Completion
Project Developer
are m2 date
1 IP West III.-IV. * 14 300 2009 Q1 Europolis
2 Budai Skála/offices * 8 500 2009 Q2 ING Real Estates

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3 Kelen Park 45 000 2009 Q4 N/A

4 Szerémi Gate 90 000 2009 Q4 GTC
5 BudaWest Offices 27 500 2009 Q3 Vendere
6 Infopark "E" * 15 500 2009 Q3 IVG Development Kft.
7 Technical University Building Q 20 000 2009 N/A
8 Office Garden II * 17 000 2009 GRT
9 High Tech Park 2-3. 50 000 2009 Q4 ABLON
TOTAL: 287 300 m2

* Under construction

Developers

Due to the availability of large pieces of development sites and also to the expected
improvement of the public transportation connection the focus of the developers turned towards
the South-Buda region and the 11th District primarily. Not surprisingly most of the active players
have ongoing development in the given area.

GTC

GTC has been in the Central European region since 1994, their capitalization is over 2.1 Billion
Euros. GTC Hungary’s office projects have been successful from the start of the Hungarian
market, and new pipeline projects such as Spiral, Sasad Resort Office, GTC Metro, Szerémi
Gate follow the footsteps of Center Point1 and 2.

IVG

IVG Development Hungary Ingatlanfejlesztési Kft., a branch of IVG Development

GmbH has been present in Hungary as an investor and project developer company
since 1998. IVG Development Hungary is a leading project developer company in Budapest,
successfully leasing, operating and selling to investors its high-quality office developments
through its team of excellent professional background. Their ongoing projects: Infopark Building
E, River Park offices and Stefánia Park

AIG

In Hungary, AIG/Lincoln has successfully realized numerous office development. The Hungarian
and Romanian teams are consolidating AIG/Lincoln’s position in the region as a leader in
commercial real estate development and management with past and current development
projects exceeding 600 million US dollars and more than 250,000 sq m of commercial space
under management. Their currently running scheme in the region is IP West.

ABLON

The Group´s Initial Portfolio properties in Budapest includes 10 yielding commercial properties,
with a total lettable area of 17,200 square metres and 5 projects under construction, and an
additional 15 development projects, all located in prime Budapest locations. Budafoki Business
Center and Hightech Park Phase 2-5

FUTUREAL

Futureal Group is active in real estate investment and development, investment fund
management as well as venture capital investment. With over 1,3 billion EUR worth of projects
under development, Futureal Group has become a dominant player in the Central European

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real estate market. Developments include multifunctional urban developments, residential, office
and retail projects.

2. Demand

Regarding take-up, the Buda locations are expected to gain more ground in the volume of
transactions as transport communications improve (4th Metro Line delivered). The take up in
2007 was 325,000 m2 of which almost 40% came from lease renewals and 18% from tenants
expanding in existing buildings, therefore little actual net absorption. In the first half of 2008 the
market experienced 136 900 m2 of transaction which is a slight decline compared the record
level of take-up registered in the last two quarter of 2007. We expect the take up to further fall
by about 8-12% in the second half of 2008 as the European economies slow.

The average office lease size was 600m2 in H1, 67% of transactions were for less than 50m2,
whilst 15% were signed for more than 1,000m2. Amongst all sub markets, Pest Central was the
most successful in satisfying demand by securing 47,000m2 or 35% of the total take-up. North
Pest followed with 33% of the total take up or 44,700m2, whereas South Buda attracted
16,900m2 representing 12% and North Buda securing 12,000m2 or 9% of the total take up.

Chart 2.: Type of Letting Transactions 2008 Q1-Q2

Renewal
18% 10%
Expansion
27%
Relocation from outside the
stock

25% Relocation within the stock

20% New

source: BRF

Table 3.: Major letting transaction in the first half of 2008

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Leased
2008 Tenant Building Submarket
m2
Pricewaterhouse Coopers 10 000 Office Trade Center Inner Pest
Vodafone 7 900 Aréna Corner Outer ring
Q1 AXA 3 300 BSR Center Váci út corridor
UPC 3 000 Kinizsi Irodaház Inner Pest
Hewitt 2 100 Váci 33. Váci út corridor
Raiifeisen Bank 8 500 Aréna Corner Outer ring
KVVM 4 300 Átrium Park II Váci út corridor
Bunge 2 000 Váci 33. Váci út corridor
Q2
Philips 1 800 GRT Office Garden South Buda
Futureal 2 000 Corvin Offices South Pest
AON 1 500 Gateway I Váci út corridor
source: BRF

The vast majority of the transactions have fallen between 500 – 1,000 m2, though those few
deals of 2,000 m2 or above provides almost 35-40% of the whole take-up of the relevant period.

Chart 3.: Total Leased Area by Size of Letting Transactions 2000-2008 H1

300000
0-199 sqm
250000 200-499 sqm
500-1499 sqm
200000 1500-2999 sqm
3000-4999 sqm
150000 5000 sqm +

100000

50000

0
2000 2001 2002 2003 2004 2005 2006 2007 2008
H1

source: BRF

Chart 4.: Deal Size Chart 2008 Q2

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9000
8000
7000
6000
5000
4000
3000
2000
1000
0

each coloumn represents a transaction

source: BRF

Supply of District 11

Regarding Take-up, the Buda and the 11th district init locations are expected to gain
more ground in the volume as the pipeline schemes will contribute more and more to
the total stock and as the 4. Metro line will be completed. At the last 6 months the
district has only take a limited share from the total letting transactions.

Chart 5.: Take-up by Sub-Markets 2000 - 2008 Q2

300000

250000
CBD
200000 Inner Pest
South Pest
M2

150000 Váci út
Outer Ring
100000 Central Buda
South Buda
50000 North Buda
Budaörs
0 Other
2000 2001 2002 2003 2004 2005 2006 2007 2008
H1

source: BRF

3. Vacancy rate

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Thanks to the record volume of take-up in the second half of 2007 the vacancy rate remained
stabile in the last 18 months despite the enormous amount of space delivered on the market.
According to expectation the slight decrease in the level of take-up will continue in the 2nd half of
2008 and along 2009, which will increase the rate of vacancy significantly.

Table 4: Vacancy between 2006 and 2008 Q2

2006 2007 2008 Q1 2008 Q2

Total Vacancy 12,83% 12,20% 11,98% 12,63%
source: BRF

4. Rental Rates:
Prime rents are estimated to be at €22/m2/month which apply to buildings in the CBD but the
average rents are certainly lower than this. Within Pest Non Central the rental levels are
estimated to be lower at € 11 to €14,5/m2/month. Pest Central commands rents between €13 –
€15,5/m2/month. North Buda and South Buda are pitched between € 11 to €14,5/m2/month for
A class space.

We have given specific consideration to a range of comparable transactions, which are set out
in Appendix 7.

RETAIL SYNOPSIS:

After a rapid growth in the retail market over the past 7 years and the delivery of approximately
540,000m2 of modern shopping center space in Budapest alone there are signs that the retail
market is reaching saturation and in some cases the signs of market saturation are self evident
such as GL Outlet, Csepel Plaza and Recsei Center which are all struggling. The improving
economy of the country as a whole had a direct impact on increasing interest in retail space
from both customers and retailers. On the other hand the turnover in retail trade and restaurant
business in 2007 and first quarter of 2008 declined, and despite of the fact that now there are
some promising signs for recovery, the turning point is still not at all clear. Even the value index
of food retail declined by circa 2.6% in the last quarter, which indicates the people are preferring
discounters and hypermarkets. (Price over quality.)

Retail spending in Hungary has declined in 2008 by up to 12% in the non food sector and by
circa 4,2% in the food sector as a result of increased taxes introduced as part of the
convergence/ austerity package. Total retail spending during the first half of 2008 decreased by
6.8% over 2007. In spite of the fact that everyone expected a downturn, few were prepared for
it and landlords or retail properties are just about to feel the consequences. Rumour has it that
many of the tenants in Arena Plaza have been given up to 6 months rent free to continue
trading whilst other are asking for 20 to 30% reduction in rent.

The retail market may be broadly divided into three major segments: shops in the central part of
the city on high streets, super/hypermarkets and shopping centres. In terms of shopping
centres, they have existed on the market for the past 10 years, and development first
concentrated exclusively to the bigger cities of Hungary. Today there are two or three shopping
centers in secondary cities. Hypermarkets have seen the most impressive growth with over 104
existing hypermarkets in Hungary. Much of this expansion has been by Tesco and Auchan
followed by Interspar. Other retail concepts have also evolved such as the Family Center, Stop
Shop and The Park. Also since 2004, four outlet centers were opened, 3 of those in the
Budapest region and the most recent one in Polgár on the M3 motorway.

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International grocery chains and discounters are also spreading in Hungary – the notiable
groups are Aldi and Lidl who have embarked on an aggressive acquisition of sites for
convenience and neighbourhood retail stores.

The Park which is a similar concept to Stop and Shop has opened retail schemes in 6 country
side cities with a further 6 cities under development. These schemes offer approximately
6,000m2 GLA and are arranged over ground floor only with surface car parking. The
developments are anchored by a Lidl or an Aldi as a food store and are complimented by a
number of comparison goods retailers such as C&A, Intersport, Deichmann, Leonardo, Libri or
Alexander and DM or Muller.

During 2007 and early 2008 there were 3 Stop and Shop Malls which opened these were in
Miskolc comprising 8,000m2, another in Bekéscsaba of 3,700m2 and the other in Debrecen
totalling 9,700m2. Meanwhile, the family center chain expanded with 3 units in Baja,
Hódméz vasarhely and Sopron each offering 10 to 12,000m2 GLA.

The retail pipeline for the next two years in Budapest comprises some significant projects
however there are also some substantial projects in the countryside which together could
constitute some 470,000m2 GLA of new space, of this 65% will be in the provincies. The major
schemes in Budapest include the KÖKI Terminal located en route to Ferihegy airport and
Köbanya Kispest, this will provide 65,000m2 GLA of modern retail and will be anchored by an
OBI, Tesco , Electro World and have a provision of 180 unit shops. Another significant
delievery will be the second phase of Arkad in Budapest XIV offering approximately 16,000m2
and the completion of ING’s Buda Skala retail department store and shopping center on
Fehervári út.

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Major cities will also see some large developments, namely in Miskolc the 65,000m2 Market
Central will be delivered and ECE is likely to complete the Forum development in Debrecen
which will offer 28,000m2. Also according to information received Magnum Hungaria will
introduce a new Eurocenter chain in Kecskemet, Székesfehervár and Veszprem by 2009 each
offering 22 – 25,000m2 retail space at the same time that will be continuing the roll out of a
further 9 Family Centers up to 2011.

11.2 MARKET CONDITIONS

Although rental levels across all sectors remained stable in the last quarter, high street rents in
Budapest have increased on an annual basis. Yields have fallen in all sub-sectors, continuing
the downward trend from last quarter.

Occupier demand remains strong. The prime retail locations within Budapest are still Váci utca
Pedestrian Street and the shopping malls of Duna Plaza, Westend City Center, Mammut
Shopping Center and Árkád Center. Demand from foreign retailers is still strong in these
locations, although there is an increasing interest for other major city centre locations.

Power centres, or smaller retail strip malls, and retail parks are an increasing focus for
developers. New schemes are underway in both Budapest and other major cities. New plans for
major shopping centres in Budapest are also expected, although it is not certain how many will
be completed. Concentration in the Hungarian market is continuing, with an increasing number
of hypermarkets which brought the total number to 108 by the end of 2007.

Foreign investor interest is almost stopped as a result of the credit crisis and an almost stop in
the senior debt market which is making it extreamly difficult to fund acquisitions. From a prime
shopping centre yield of 5.45% in Q1 2008 following the purchase of Campona by ING, retail
yields have mover out to over 7% which can be witnessed from the recent acquisition of the
Tesco/ OBI retail development in Szeged by Rockspring.

Going forward, the retail property market is expected to remain relatively stable. Steady,
moderate rental growth is anticipated for the best shopping centre and high street locations.
Investor interest is continuing, but whilst further yield falls are expected, the pace of decline is
likely to slow. Purchase offers nowadays are at the level of 6.5% - 7% cap rates and are
continuing to move out.

PRIME RETAIL RENTS IN HUNGARY

Location RENT Eur/m2 % Growth Compounded

m2/month m2/year 5 years 1 year Trend

Vaci utca 100 1200 4.8 14 Rising
West End 80 960 4 3.2 Rising
MC Ferihegy 12.8 153 4.5 2.5 Rising
Debrecen 26 312 -1.8 0 Flat
Gyor 25 300 3 1.2 Stable

PRIME RETAIL YIELDS IN HUNGARY

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Location Yield % Gross Last 5 years

Current Last Year Low High Trend

Vaci utca 6.85 6,5 6.5 10 stable
Arena Plaza 6.5 6 - - falling
Szekesfehervar 8,5 7,5 7,5 12 falling
Gyor 8,5 7.5 7,5 1.2 falling

A fifth of retail sales (excluding vehicle and petrol sales) are now concentrated in shopping
centres/hypermarkets in Hungary based upon reports by the Hungarian Council of Shopping
Centers. Consumers are still eager to spend, although growth in retail sales has slowed in the
last few years. Access to consumer loans has increased, while with the debit card market now
saturated.

Currently, the total shopping mall, strip mall and specialised shopping centre stock in Budapest
is 660,300 square metres according to King Sturge Retail Report 2007, which is expected to be
expanded by 245,000 square metres in the next two to three years based upon research reports
by the Hungarian Council of Shopping Centers. These schemes in the pipeline are shown in
the table below.

Development Owner Size m2 Opening Occupiers

Arena Plaza Plaza 64,000 plus exp Mid 2008 P&C, Zara, Tesco,
Centers of 30,000m2 Electro World, IMAX
Kerepesi ut,
Bp VIII
Corvin Setany FutoReal 36,200 plus Circa 2011 Still in planning and
residential design phase
Budapest IX
ING Skala ING Circa 45,000 Q4 2009 Early stages but rumours
have it that InterSpar and
Budapest XI Libri are signed
KOKI 50,000 2010-11 DIY retailer. Scheme
located at end of M3
KisPest, Bp Metro.
XIX
Market Central AIG 42,000 plus 3 Q4 2007 for Tesco,Praktiker, C&A,
office bldgs of the retail. Intersport, Electro World,
Ferihegy II 7,000m2 each Deichmann
Premier AVIVA 7,800m2 Q3 2007 Vanity Fair, Timberland,
Outlets III Hilfiger,
M1 Outlets FTB Invest 16,500m2 Q2 2008 Marketing just started

On the high street and in the city centre malls, a low supply of adequately sized premises
combined with a high demand has pushed rents to up to €90-100 per square metre per month
during 2006, with rent for prime space expected to increase even further according to research
prepared by Jones Lang Lasalle (Budapest City Profile March 2006).

There still exist opportunities for out of town retail schemes and speciality retail concepts such
as ‘big box’ centres and factory outlets. The location of such schemes is critical for the
sustainability of such projects. Those located close to motorway junctions and other retailers
with critical mass are more likely to be successful.

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EU accession has brought continued economic growth and; as a result, demand for retail units
has increased as new trading fascias have entered the market.

COMPETITION:

The retail competition around Uj Buda

Center is fairly limited with the major
schemes being Savoya Park located
some 5km south on Hunyadi Janos ut
in the Albertfalva area. This scheme
was developed in 2004 and is
anchored by Auchan, Deichmann,
Takko, New Yorker. It extends to
25,000m2 NLA and forms a
hypermarket with 2 parallel strip malls.
Rents vary between 14.5 Eur /mth for
units over 500m2 and circa 26-28
Euros/mth for units under 150m2.

ING Skala will be a proposed

redevelopment of the Skala
Department store located at the
junction of Fehervari ut and Oktober
26 u. in Budapest XI. The scheme is
located 2km from Uj Buda. It benefits
from better public transport. The
project will total circa 45,000m2 and is
scheduled to open in Q3 of 2010.

BKV and MAV are currently

developing Kelenfold railways station
which will be turned into a major
transport hub following the completion
of the M4 metro line. Part of the
proposal is to develop a retail
shopping center totalling 30,000m2
GLA. The scheme is in the very early
stages of planning.
It is likely to be post 2011 before
anything is developed. It is located
3km from Uj Buda Center.

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Campona is located in the XXII nd

District approximately 10 mins drive
time from Uj Buda. The scheme has
88 tenants including H&M, Mango,
Zara, Tesco, Springfield and several
other strong brands. It also has a
Tropicarium.
The total NLA of the scheme is
38,000m2 with 2,200 car spaces. It
was built in 1998.

12 SWOT ANALYSIS

STRENGTHS
Modern practical designed Power center in a market which has become
increasingly more and more interesting for institutional purchasers.
Still a new and relatively undiscovered concept in Budapest which is
becoming increasingly more sophisticated in its retail offer.
Sufficient critical mass to be able to compete with competition and
possibility to expand the scheme with a second Phase.
Good volume of surface car parking
Located in an increasingly developing area – particularly residential.
Excellent visibility
Good transport links – new access infrastructure proposed with M4 metro
line.
Good international tenant mix.

WEAKNESSES
The location is a former industrial area and is reliant on becoming locally
well known and requires a higher emphasis on private transportation.
The area is experiencing gentrification and redevelopment which creates
some disturbance to the immediate environs.
The offices within the development are large and not particularly flexible.
Upper floors are only suitable for leisure and entertainment.

OPPORTUNITIES
Increasing number of trading fascias looking to expand their retail formats
across Hungary, a dedicated scheme is one of the easiest methods of
entry.
Consumer spending growth is likely to increase over the coming years
once tax reforms are implemented.
Potential to expand the development in the event of identifying new trading
fascias entering the market.

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THREATS
Possible future competition over time from other developments, and
developers causing pressure on rents.
Decreasing reversionary exit yields pushed by collapse of the senior debt
market and fewer institutional investors entering the market.
Purchasers becoming more price sensitive and looking towards
discounted retail opportunities.

FACTORS AFFECTING VALUE

Possible competition from other developments causing pressure on rents.

Reduced ERV’s on reversion of lease terms in the wake of possible
competition.
Flow of institutional funds being diverted to Romania and Bulgaria slowing
the compression of yields in Hungary for such properties
Increasing interest rate on debt, affecting financing returns and affecting
inflation
Higher taxation in Hungary affecting spending patterns and affecting
turnover rent provisions.

13 CONCLUSION

KEY ISSUES
The property comprises a speculative retail development in a developing
commercial and residential location. During the first few months of opening it
has attracted good footfall figures and has demonstrated its position as a
neighbourhood convenience retail destination.
Our assessment of gross development value has been assessed in the light of
current market evidence and makes no allowance for changes in value over
time except for rental indexation.
The completed development is targeting middle income Budapest residents.
It a good chance of success and sustainability as a shopping destination since
it offers a mix of convenience and food shopping as the principal attraction.
Retail schemes such as the subject property are becoming increasingly
sought after by institutional investors.
Our valuation is based on the assumptions for the successful leasing of the
scheme based upon the rental value estimates contained here in.

14 SENSITIVITY

We have undertaken a financial sensitivity analysis to assess the robustness of the

development in the light of fundamental changes to key aspects of the project. We have run a
correlation between fluctuations in the discount rate (risk return) against fluctuations in the
anticipated ERV’s secured on retail lettings. The analysis shows the effect of the changes in
the key parameters against GDV. In case of Phase 1 the worst case scenario is represented by
a 12.10% drop in GDV from business plan assuming ERV’s drop by 10% and the discount rate
(risk) increases by 10%. The loss of value is marginally less affected by fluctuations in risk and
is more dependent on the changes in rental values achieved.

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In case of Phase 2 the worst case represented by a 33.6% drop in residual land value assuming
ERV’s drop by 10% and the discount (suggested: 7.75%) increases by 50bp. The same
changes, however, would affect GDV by only 13.5%.

P1 Sensitivity of GDV to fluctuations in ERV and Risk

INCOME
-10% -5% 0% 5% 10%
-10% 32,000,000 32,500,000 33,000,000 33,500,000 34,100,000

-5% 33,600,000 34,100,000 34,600,000 35,200,000 35,700,000

Discount
0% 35,300,000 35,900,000 36,400,000 36,900,000 37,500,000
Rate
5% 37,300,000 37,800,000 38,400,000 38,900,000 39,500,000

10% 39,500,000 40,000,000 40,600,000 41,100,000 41,700,000

P2 Sensitivity of GDV to ERV and Discount Rate

ERV
-10.0% -5.0% 0.0% 5.0% 10.0%
7.25% 5,684,297 6,000,091 6,315,886 6,631,680 6,947,474
Discount

7.50% 5,569,901 5,879,340 6,188,778 6,498,217 6,807,656

Rate

7.75% 5,458,332 5,761,572 6,064,813 6,368,054 6,671,294

8.00% 5,349,511 5,646,706 5,943,902 6,241,097 6,538,292
8.25% 5,243,363 5,534,661 5,825,958 6,117,256 6,408,554

P2 Sensitivity of Residual Land Value to ERV and Discount Rate

ERV
-10.0% -5.0% 0.0% 5.0% 10.0%
7.25% 1,650,000 1,890,000 2,140,000 2,390,000 2,640,000
Discount

7.50% 1,550,000 1,790,000 2,040,000 2,280,000 2,520,000

Rate

7.75% 1,460,000 1,700,000 1,930,000 2,170,000 2,410,000

8.00% 1,370,000 1,600,000 1,830,000 2,070,000 2,300,000
8.25% 1,280,000 1,510,000 1,740,000 1,960,000 2,190,000

15 PREVIOUS INVOLVEMENT

Our involvement in the property dates back to:

April 2007 when we were asked by Sybil Europe Public Co. Limited to provide a
valuation report for the purpose of financial reporting.

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February 2008 when we were asked by Sybil Europe Public Co. Limited to provide a
valuation report for the purpose of financial reporting.

16 TRANSACTION HISTORY

We are aware of the following former transactions in respect of the property over the past 2
years.

We have reviewed the land registry certificate and have noticed that there is a Marginal Note
540/ 2006.02.06, whereby Sybil Holding Kft as owner located at H-1117 Budapest,
Hengermalom út 19-21 has requested a change of registered address from Harangirag utca 5.

Furthermore, on February 5th 2007 for the purpose of a transaction between Group companies,
which generated the same value as that stated in this report. The inter company transaction
involved the sale of a 25% stake in the project company and by virtue of an inter-company
transaction it attracted a discount reflecting EUR 4,180M.

17 VALUATION

VALUATION CONSIDERATIONS

17.1 As requested by Sybil Europe Public Co. Limited, we have considered Market Value on
the following bases:
Market Value at the date of valuation subject to the assumptions herein.

17.2 In preparing our valuations on this basis it is necessary for us to prepare valuations on a
‘special assumption’. A Special Assumption is referred to in the Glossary in the Red
Book as an Assumption that either:

requires the valuation to be based on facts that differ materially from those that
exist at the date of valuation; or

is one that a prospective purchaser (excluding a purchaser with a special interest)

could not reasonably be expected to make at the date of valuation, having regard
to prevailing market circumstances.

We have made an assumption for the sustainable rental value and the period
for leasing up.

17.3 VALUATION ASSUMPTIONS

For the purpose of the valuation of Phase 1 we have adopted a Discounted Cash Flow
approach and cross checked this with a Hard Core Top Slice approach which aims to best
reflect the current value and the estimated income characteristics of the property.

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The Cash Flow model can be adopted for valuing development projects and their future gross
development values. Properties, such as the subject premise, is partially let and income
producing. We have made various assumptions within our cash flows.

To appraise the site value of Phase 2 we have similarly adopted two methods, a Residual
approach and a traditional market comparison approach.

The theoretical basis of the Residual method is that the expected sales proceeds or the rentals
from the project are capitalised at the project yield rate to arrive at the total capital value for the
specific project. In arriving at this value, we calculate the rent resulting from the Direct
Capitalisation method in order to arrive at the total capital value, or in the case of sales we
adopt market pricing. From this figure one deducts the total gross development costs, which is a
combination of hard and soft costs. Hard costs are considered as construction materials, site
clearance and demolition whilst soft costs are defined as planning fees, architects, project
management, mechanical and electrical engineering, marketing and agency contingency costs
and cost of finance. A further amount is deducted for the developer’s profit (the risk reward
accrued to the developer for undertaking the project). The resultant figure represents the
residual value/profit.

The residual profit is the amount the developer has for the land purchase (which includes also
the cost of purchase: agents and legal fees, stamp duty and cost of the land finance.)

Construction costs – We have assumed a construction cost 656 Eur/m2 for Phase 2 based on
the gross external area. For surface parking we have allocated €58/m2. On and off-site
infrastructure has been budgeted at €26/m2. All hard costs are inflated by 5% hard cost
inflation across this Phase.

Professional fees – We have assumed a total of 13,5% for professional fees for architects,
quantity surveyors, engineers, project management, etc.

Marketing – We have assumed a total of 2.25% for the total costs related to marketing of the
project and total agent’s fees based on the sale of the completed development

Legal and administration fees – e.g. Planning and building regulation costs at 3.25% of total
build costs.

Project Contingency – We have assumed a contingency on the entire project at 5.0% of hard
costs, technical services and marketing

Financing - Interest charges during the construction period assuming development finance at
5.5% over a construction period of 12 months. We have included lender’s arrangement and
supervision fees.

Developer’s profit – As this project is entirely speculative we have assumed a developer’s profit
at 15% based upon as built costs, reflecting a reasonable return for the risk.

Land Purchase – the resultant residual value suggest that the developer could afford to pay up
to Eur 1.93m for the site based upon the project parameters.

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Market comparison method - site

Property for com parison
Object Property for com parison 1. Property for com parison 3.
2.
Budapest XI.
Address Hengermalom Budapest XI. Budaörsi u. Budapest XI. Balatoni u. Budapest XI. Albertfalva
u.
Zoning Institutional (IZ) Institutional (IZ) Institutional (IZ) Institutional (IZ)

Correction
Description Description Korr. Description Korr. Description Korr.
m odel
Site area, m 2 4 700 3 800 5 191 18 513
Gross floor
area, m 2
Base value telek terület telek terület telek terület telek terület
Base Value 4 700 3 800 0% 5 191 0% 18 513 0%
Offered price /
transaction 380 000 000 Ft 550 000 000 Ft 1 851 000 000 Ft
price
Date of
transaction / Offered price Offered price Offered price
inflation
Specific value
100 000 105 953 99 984
(Ft/m2)
Budapest XI.
Location Hengermalom Budapest XI. Budaörsi u. Budapest XI. Balatoni u. Budapest XI. Albertfalva
u.
Site shape Regular Regular Regular Regular
Site sloping flat flat flat flat
Built-in ratio 30% 30% 30% 30%
Coefficient of
1.0 1.0 0.6 1.0
site area
Height max. building max. building max. building max. building
5,0%
regulations height: 12 m height: 12 m height:6-9 m height: 10-15 m
Utilities,
Infrastructure, Utilities, Utilities, Utilities,
institutional 10,0% 10,0%
utilities,location institutional area institutional area institutional area
area
Offering
/transaction -10,0% -10,0% -10,0%
price
Coefficient of site
Other factor 2 10,0% Size of site 10,0%
area

Corrected spec.
price /Total 107 276 Ft 90 000 Ft -10,0% 121 846 Ft 15,0% 109 982 Ft 10,0%
correction

Permission for
ok -10% ok 15% ok 10%
corrections

Value based
on m arket 504 196 693 Ft
com parison:
€ 2 016 787 € 2 020 000
IZ zoning: IZ-XI/L

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The second method of appraising the site value was to adopt a comparison approach, the
analysis of which is shown in the table above.

Accordingly we have arrived at a value of ca 2,0m Euros based upon a market comparison
approach. This closely conforms to the residual approach.

17.4 Discounted Cash Flow (DCF)

For the purpose of this valuation we have adopted a Discounted Cash Flow approach method to
best reflect the income characteristics of the investment properties.

The Discounted Cash Flow (DCF) approach is widely used for valuing income-producing
properties for investment purposes. Investment properties such as the subject premises are
normally valued based on their ability to generate income and on anticipated change in market
sentiment. Analysis of a property in terms of its ability to provide sufficient net annual return on
investment capital is an important means of developing a value indication.

Projected net incomes over a given period are discounted back to their present value in line with
the cash-flow methodology at a rate commensurate with investment risks inherent to the
ownership of the property. Such a conversion of income considers competitive returns offered
by alternate investment opportunities.

The discount rate is based upon the return expectation an investor would be willing to accept for
such a property. The subsequent sums of each discounted cash flows provides the capital value
of the building plus the reversionary value which is discounted back.

The projected gross incomes outlined in this report exclude VAT.

The discount rate is based upon the return expectation an investor would be willing to accept for
such a property. We have assumed a rate of 8.0% for phase 1. We have also adopted an exit
yield of 8% to show an effective equated yield over the 10 yr cash flow of the project. The
model adequately takes into consideration the rental voids, non recoverable items such as
service charge shortfalls and void periods in between re-lettings.

17.5 CHOICE OF DISCOUNT RATE

The discount rate used in DCF analysis is not the same as a yield as commonly referred to in
real estate transactions. A yield reflects an all risks single figure to capture all aspects of the
future performance of an investment and is growth implicit. A discount rate is growth explicit with
these factors dealt with explicitly elsewhere in the cash flow; indexation, voids and exit
capitalisation rates.

The appropriate discount rate for valuation purposes should reflect market value and therefore a
market rate must be applied. We have evidence of numerous market transactions in all asset
classes to base our discount rate. Recent prime office transactions have occurred between
6.20% (Bank Center) and 6.35% (Krisztina Palace) during 2008, whilst prime retail yields are
probably at 6.25 % with the most recent transaction being the acquisition by Rockspring of the
Tesco/OBI in Szeged at 7.0%. Our applied discount rate is usually between 100 – 120 bp above
the all risks yield paid for such an income producing asset.

We as the valuer’s must apply our own understanding of the market to build up a picture of the
“typical investor“ for the subject investments valued. We have had to consider the typical buyer
and not any specific one for a particular product since not all investors are willing to apply the

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same value to an asset. This problem is amplified in a rising market where suitable product is
scarce and too much money is chasing too little product. The very fact that an investor has been
successful in securing a deal almost automatically means they have agreed a price that would
be considered above market value. This is particularly true in the case of Central European
Markets where the subject properties have been valued.

For straight investment product it easier to estimate suitable discount rates for valuation
purposes as the attitudes of investors and lending banks to the inherent risks are well known.
The markets in which the products we are valuing, in general, have converged such that
numerous investors are of the same mind when it comes to specific transaction profiles and the
valuer can be confident in his opinion of the typical market purchaser. In this case we have
generally adopted discount rates of between 7.5 – 8.5% depending on the type of property. In
respect of the appraised property we have taken a discount rate of 8.0% to reflect the income
producing nature of the scheme. For development property the investor profile is spread over
a wider range and investors previously averse to development risk are beginning to enter this
market. Their return expectations are obviously greater than before but may be less than
developers who have traditionally operated in this sector. At present the discount rate for
development income is predominantly influenced by the attitudes and expectations of the
developers as they remain the most active. Since development projects expose the investor to
a greater level of risk we have reflected this in our appraisals by choosing rates between 9 % -
10% depending upon the product, location and period for development – the longer the period
the higher the systematic risk.

Parameters employed for the DCF calculation:

Type of Parameter Parameter Explanation

Estimation of Retail Income Ground 170,000 Eur/ month

(Excl VAT) once fully let.
First 22,700 Eur/ month
Second 60,000 Eur/ month

Estimation of Retail Income 450,000 Eur/ p.a.

(Excl VAT) once fully let of
Phase 2

Discount Rate. We have Given that the ground floor area is let we foresee
adopted 8.0% limited risk in the sustainability of income hence
for retail, offices we have adopted a more robust discount rate.
and gallery. Since the upper parts are unlet we have applied a
higher Discount rate to reflect the vacancy.

Leasing Voids 2 to 36 months Where vacancy occurs in the retail element of the
voids scheme we have assumed a 2 months void period
whilst the unit remains unlet and is thereafter let at
ERV. We have applied a 36 month void on the
second floor as this has not been let since the
scheme opened. We have also allowed for
approximately 100 Euros/m2 for fit out allowance
and a non-recoverable service charge of 122,000
Euros.

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Reversionary Cap Rate We have adopted an increase of approximately

100bp over the ARY to capitalise the reversionary
income at the end of the cash flow.

Indexation Harmonised We have adopted the EU 26 HICP in order to

Capitalisation Yields Phase 1
Consumer grow the rents over the cash flow. Although the
Retail Price past 3 years have demonstrated approximately
Index 2% we have taken the 10 year average at 2% pa.
The percentage is considered appropriate to local
market experience.
Yield on Term We have adopted a 8% ARY on the passing
income of the ground floor since this represents
the most secure income. We have placed an
ARY at 100bp above prime retail yields to reflect
the nature of the development. We have used an
equated yield of 8% across the entire scheme.
Yield on We have applied a higher reversionary yield on
Reversion the core retail income at 8.25% to reflect possible
competition from new schemes and therefore risk
in the sustainability of incomes.

18 VALUATION CERTIFICATE

We are of the opinion subject to all of the above that the Market Value based upon the data
provided and on the assumptions stated herein, as at 30th September 2008 is in the order of
€ 36,400,000 (Thirty Six Million Four Hundred Thousand Euros) based upon a discounted
cash flow.

The Market Value of Phase 2 is considered to be 2,000,000 Euros (Two Million Euros) based
upon a Market Comparables and Residual Approach.

KEY FACTORS

In comparison to our previous valuation in December 2007, the main key factors, which
attributed to the decrease in the property's value, are:

The project is over a year since it was opened to the public. The current tenants appear to
be satisfied with their operation. The stronger performing retailers are mainly the

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SITE PLAN

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FLOOR PLANS

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APPENDIX 1

CALCULATIONS

44
HARD CORE VALUATION SHEET Indicated value 36,400,000 Initial yield 4.94%
Value/m2 1,404 Yield when fully leased 5.34%

Rent free
U/x term Service Leasing Fit Out Apply Irrecovera Apply Void Apply in Core Froth Reversionary yield 8.32%
Type

U/x term Over Charge Fees (m2) in val? bles in val? (mths) val? yield yield
minus rent Rent passing ERV Froth Core value Froth value Core PV Froth PV TERM REVERSION
(yrs) rented? CORE CORE S/Chge Leasing Fee Fit Out Vacancy Initial
# Tenant free pre start CORE TERM pre start adjust for adjust for start TOTAL Core Value Froth Value Total Value/m²
REVERSION TOTAL Correction Correction Correction /Credit Loss Yield
4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% adjustm'ts adjustm'ts start date date Currency Value Currency Value

A1 Tesco Leased 13.28 - 13.28 467,896 486,438 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 5,904,214 3,744,206 2,160,009 5,904,214 - 1.0000 1.0000 - - - - EUR 3,744,206 EUR 2,160,009 5,904,214 5,904,214 - 5,904,214 7.92% 1,238
A2 Tesco Leased 13.28 - 13.28 44,543 46,308 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 562,070 356,441 205,629 562,070 - 1.0000 1.0000 - - - - EUR 356,441 EUR 205,629 562,070 562,070 - 562,070 7.92% 1,238
A3 KIK Leased 5.03 - 5.03 104,636 106,176 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 1,309,537 419,984 889,553 1,309,537 - 0.9933 0.9931 - - - - EUR 417,162 EUR 883,575 1,300,737 1,300,737 - 1,300,737 8.04% 1,029
A4a Líra és Lant Leased 8.19 - 8.19 33,321 32,604 717 2% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 404,784 190,496 214,288 404,784 4,151 1.0000 1.0000 - - - - EUR 194,647 EUR 214,288 408,934 404,784 4,151 408,934 8.15% 1,957
A4b Garko Leased 8.42 - 8.42 42,495 40,392 2,103 5% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 501,533 240,716 260,817 501,533 12,409 1.0000 1.0000 - - - - EUR 253,125 EUR 260,817 513,942 501,533 12,409 513,942 8.27% 2,596
A5 empty Vacant - - - - 85,752 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 1,058,239 - 1,058,239 1,058,239 - 1.0000 1.0000 - - - - EUR - EUR 1,058,239 1,058,239 1,058,239 - 1,058,239 0.00% 2,666
A6 Mona Lisa Leased 8.42 - 8.42 48,869 49,680 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 612,025 291,235 320,791 612,025 - 1.0000 1.0000 - - - - EUR 291,235 EUR 320,791 612,025 612,025 - 612,025 7.98% 2,957
A7 Café Leased 8.42 - 8.42 22,200 24,192 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 288,514 132,303 156,211 288,514 - 1.0000 1.0000 - - - - EUR 132,303 EUR 156,211 288,514 288,514 - 288,514 7.69% 3,435
A8 Fáraó mobile Leased 3.29 - 3.29 17,384 18,900 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 229,673 48,620 181,054 229,673 - 1.0000 1.0000 - - - - EUR 48,620 EUR 181,054 229,673 229,673 - 229,673 7.57% 2,916
A9 Wellmed Leased 9.54 - 9.54 17,178 16,078 1,101 7% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 199,741 104,518 95,223 199,741 7,078 1.0000 1.0000 - - - - EUR 111,595 EUR 95,223 206,818 199,741 7,078 206,818 8.31% 3,396
A10 Posta Leased 4.00 - 4.00 11,773 13,824 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 164,390 38,995 125,394 164,390 - 1.0000 1.0000 - - - - EUR 38,995 EUR 125,394 164,390 164,390 - 164,390 7.16% 1,284
A11a Optica Leased 8.93 - 8.93 19,830 20,815 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 252,400 123,159 129,241 252,400 - 1.0000 1.0000 - - - - EUR 123,159 EUR 129,241 252,400 252,400 - 252,400 7.86% 4,074
A11b Lombard Leased 5.00 - 5.00 17,384 18,900 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 228,149 69,402 158,747 228,149 - 0.9933 0.9931 - - - - EUR 68,936 EUR 157,680 226,616 226,616 - 226,616 7.67% 2,878
0 Lombard Leased 5.00 - 5.00 4,415 4,320 95 2% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 53,532 17,247 36,285 53,532 377 0.9933 0.9931 - - - - EUR 17,505 EUR 36,041 53,546 53,172 374 53,546 8.25% 1,339
A11c empty Vacant - - - - 28,296 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 349,192 - 349,192 349,192 - 1.0000 1.0000 - - - - EUR - EUR 349,192 349,192 349,192 - 349,192 0.00% 2,666
A12 Euronics Leased 4.75 - 4.75 39,690 47,629 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 559,714 151,918 407,797 559,714 - 1.0000 1.0000 - - - - EUR 151,918 EUR 407,797 559,714 559,714 - 559,714 7.09% 917
A13 empty Vacant - - - - 34,594 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 426,916 - 426,916 426,916 - 1.0000 1.0000 - - - - EUR - EUR 426,916 426,916 426,916 - 426,916 0.00% 2,221
A14 Office Depot Leased 3.16 - 3.16 118,887 122,100 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 1,502,321 321,266 1,181,056 1,502,321 - 1.0000 1.0000 - - - - EUR 321,266 EUR 1,181,056 1,502,321 1,502,321 - 1,502,321 7.91% 1,624
A15 Allsize Leased 3.44 - 3.44 25,713 26,611 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 326,776 74,737 252,039 326,776 - 1.0000 1.0000 - - - - EUR 74,737 EUR 252,039 326,776 326,776 - 326,776 7.87% 3,242
A16 Patika Leased 8.74 - 8.74 27,853 28,552 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 350,300 170,466 179,834 350,300 - 1.0000 1.0000 - - - - EUR 170,466 EUR 179,834 350,300 350,300 - 350,300 7.95% 3,239
A17 Leonardo Leased 7.59 - 7.59 61,921 99,144 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 1,024,552 342,591 681,960 1,024,552 - 1.0000 1.0000 - - - - EUR 342,591 EUR 681,960 1,024,552 1,024,552 - 1,024,552 6.04% 1,116
A18 JYSK Leased 8.19 - 8.19 118,985 136,080 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 1,589,510 695,698 893,813 1,589,510 - 1.0000 1.0000 - - - - EUR 695,698 EUR 893,813 1,589,510 1,589,510 - 1,589,510 7.49% 1,262
A19 Cardo Leased 3.58 - 3.58 44,040 47,880 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 581,141 132,697 448,444 581,141 - 1.0000 1.0000 - - - - EUR 132,697 EUR 448,444 581,141 581,141 - 581,141 7.58% 2,913
A20 UniCredit Leased 3.20 - 3.20 56,273 47,880 8,393 18% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 592,536 130,570 461,967 592,536 22,781 1.0000 1.0000 - - - - EUR 153,351 EUR 461,967 615,317 592,536 22,781 615,317 9.15% 3,084
A21 DM Leased 3.18 - 3.18 68,401 76,248 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 922,275 185,827 736,449 922,275 - 1.0000 1.0000 - - - - EUR 185,827 EUR 736,449 922,275 922,275 - 922,275 7.42% 2,613
A22 Fressnapf Leased 4.21 - 4.21 82,978 74,564 8,414 11% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 923,459 257,708 665,751 923,459 28,914 1.0000 1.0000 - - - - EUR 286,621 EUR 665,751 952,373 923,459 28,914 952,373 8.71% 1,379
A23 Burger King Leased 8.75 - 8.75 49,056 54,557 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 643,836 300,492 343,343 643,836 - 1.0000 1.0000 - - - - EUR 300,492 EUR 343,343 643,836 643,836 - 643,836 7.62% 2,549
A24 Silver BO Leased 3.20 - 3.20 42,031 43,546 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 534,762 114,793 419,970 534,762 - 1.0000 1.0000 - - - - EUR 114,793 EUR 419,970 534,762 534,762 - 534,762 7.86% 2,653
A26 CIB Leased 8.24 - 8.24 65,024 57,840 7,184 12% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 718,114 339,643 378,472 718,114 41,777 1.0000 1.0000 - - - - EUR 381,420 EUR 378,472 759,891 718,114 41,777 759,891 8.56% 3,153
A27 Atlantic Leased 9.00 - 9.00 172,616 121,608 51,008 42% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 1,510,410 759,792 750,618 1,510,410 315,403 1.0000 1.0000 - - - - EUR 1,075,195 EUR 750,618 1,825,813 1,510,410 315,403 1,825,813 9.45% 3,243
A27a Atlantic Leased 9.00 - 9.00 1,380 1,260 120 9% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 15,650 7,872 7,777 15,650 740 1.0000 1.0000 - - - - EUR 8,612 EUR 7,777 16,390 15,650 740 16,390 8.42% 1,093
A28 Parwan Leased 4.72 - 4.72 19,426 22,176 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 264,273 73,964 190,310 264,273 - 1.0000 1.0000 - - - - EUR 73,964 EUR 190,310 264,273 264,273 - 264,273 7.35% 1,001
TOTAL Ground Floor
B1 Tesco Leased 13.28 - 13.28 37,773 19,635 18,138 92% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 244,312 157,124 87,188 244,312 143,139 1.0000 1.0000 - - - - EUR 300,263 EUR 87,188 387,451 244,312 143,139 387,451 9.75% 2,013
B2 empty Vacant - - - - 27,003 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 333,242 - 333,242 333,242 - 1.0000 1.0000 - - - - EUR - EUR 333,242 333,242 333,242 - 333,242 0.00% 1,259
B3 Sybil Europe Leased 4.29 - 4.29 26,656 27,712 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 339,520 93,647 245,872 339,520 - 1.0000 1.0000 - - - - EUR 93,647 EUR 245,872 339,520 339,520 - 339,520 7.85% 1,250
B3a empty Vacant - - - - 6,122 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 75,550 - 75,550 75,550 - 1.0000 1.0000 - - - - EUR - EUR 75,550 75,550 75,550 - 75,550 0.00% 1,259
B4 Center management Leased 3.29 - 3.29 18,936 19,686 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 241,542 52,959 188,583 241,542 - 1.0000 1.0000 - - - - EUR 52,959 EUR 188,583 241,542 241,542 - 241,542 7.84% 1,252
B5 empty Vacant - - - - 59,180 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 730,327 - 730,327 730,327 - 1.0000 1.0000 - - - - EUR - EUR 730,327 730,327 730,327 - 730,327 0.00% 1,259
B5a Varioffice Leased 3.42 - 3.42 13,444 12,424 1,020 8% 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 153,773 35,909 117,865 153,773 2,934 1.0000 1.0000 - - - - EUR 38,843 EUR 117,865 156,708 153,773 2,934 156,708 8.58% 1,287
B7 empty Vacant - - - - 61,302 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 756,509 - 756,509 756,509 - 1.0000 1.0000 - - - - EUR - EUR 756,509 756,509 756,509 - 756,509 0.00% 1,259
B8 empty Vacant - - - - 39,758 - N 4.50 12.00% 100.00 N 0.00% Y 2.00 Y 8.00% 8.25% 490,636 - 490,636 490,636 - 1.0000 1.0000 - - - - EUR - EUR 490,636 490,636 490,636 - 490,636 0.00% 1,259
TOTAL 1st Floor - -
C1 Marketing start 01/08 Vacant - 6.00 - - 141,205 - N 4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% 1,742,562 - 1,742,562 1,742,562 - 1.0000 1.0000 - 13,497 - 16,729 - 154,894 - EUR - EUR 1,557,442 1,557,442 1,742,562 - 1,742,562 0.00% 1,111
C1balcony Marketing start 01/08 Vacant - 6.00 - - - - N 4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% - - - - - 1.0000 1.0000 - - - - EUR - EUR - - - - -
C2 Marketing start 01/08 Vacant - 6.00 - - 99,722 - N 4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% 1,230,636 - 1,230,636 1,230,636 - 1.0000 1.0000 - 9,532 - 11,814 - 109,390 - EUR - EUR 1,099,900 1,099,900 1,230,636 - 1,230,636 0.00% 1,111
C2balcony Marketing start 01/08 Vacant - 6.00 - - - - N 4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% - - - - - 1.0000 1.0000 - - - - EUR - EUR - - - - -
C3 Marketing start 01/08 Vacant - 6.00 - - 143,127 - N 4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% 1,766,286 - 1,766,286 1,766,286 - 1.0000 1.0000 - 13,681 - 16,956 - 157,003 - EUR - EUR 1,578,645 1,578,645 1,766,286 - 1,766,286 0.00% 1,111
C3balcony Marketing start 01/08 Vacant - 6.00 - - - - N 4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% - - - - - 1.0000 1.0000 - - - - EUR - EUR - - - - -
C4 Marketing start 01/08 Vacant - 6.00 - - 95,418 - N 4.50 12.00% 100.00 Y 0.00% Y 2.00 Y 8.00% 8.25% 1,177,524 - 1,177,524 1,177,524 - 1.0000 1.0000 - 9,121 - 11,304 - 104,669 - EUR - EUR 1,052,430 1,052,430 1,177,524 - 1,177,524 0.00% 1,111
C4balcony Marketing start 01/08 Vacant - 6.00 - - - - N 4.50 12.00% 100.00 N 0.00% Y 3.00 Y 8.00% 8.25% - - - - - 1.0000 1.0000 - - - - EUR - EUR - - - - - - // - - // -
C5 Marketing start 01/08 Vacant - 6.00 - - 95,418 - N 4.50 12.00% 100.00 Y 0.00% Y 4.00 Y 8.00% 8.25% 1,162,516 - 1,162,516 1,162,516 - 1.0000 1.0000 - 18,125 - 11,160 - 103,335 - EUR - EUR 1,029,896 1,029,896 1,162,516 - 1,162,516 0.00% 1,097
C6 Marketing start 01/08 Vacant - 6.00 - - 145,494 - N 4.50 12.00% 100.00 Y 0.00% Y 5.00 Y 8.00% 8.25% 1,761,281 - 1,761,281 1,761,281 - 1.0000 1.0000 - 34,437 - 16,908 - 156,558 - EUR - EUR 1,553,377 1,553,377 1,761,281 - 1,761,281 0.00% 1,089
C6balcony Marketing start 01/08 Vacant - 6.00 - - - - N 4.50 12.00% 100.00 Y 0.00% Y 6.00 Y 8.00% 8.25% - - - - - 1.0000 1.0000 - - - - EUR - EUR - - - - - - // - - // -

1,943,010 3,028,150 98,293 36,810,753 579,702 - 98,393 - 84,872 - 785,849 - 10,753,287 25,657,359 36,410,646 36,800,060 579,700 37,379,760 4.81% 1,441

3,028,150 Less adjustment for vacant area service charge loss prior to first reversion -98,393
Less adjustment for leasing fees at first reversion -84,872
870,916.56 Less adjustment for fit out costs at first reversion -785,849
#REF! Less adjsutment for vacancy & credit loss -
36,410,646

Rounding to, places left of decimal point 5 say 36,400,000 0.00%

TENANCY DETAIL SHEET
Lease Term Area Indexation 2.20% Rent passing
Inc. in

Location

Currency
Rent Total Unit rent in Unit rent in Per month in Per annum in

Floor
Term U/x term U/x term Type rentable Area Exch.

Type
# Description Lease start free Rent start Lease expiry Rentable original valuation valuation valuation
(yrs) (yrs) less r/free area? (m2/No.) rate
(mths) (m2) currency currency currency currency

A1 Tesco Leased 11/Jan/07 15.00 - 11 Jan 07 11-Jan-22 13.28 13.28 Retail G Y 4,769.00 4,769 EUR 8.18 1.00 8.18 38,991.34 467,896.13 26.0%
A2 Tesco Leased 11/Jan/07 15.00 - 11 Jan 07 11-Jan-22 13.28 13.28 Retail G Y 454.00 454 EUR 8.18 1.00 8.18 3,711.90 44,542.85 2.5%
A3 KIK Leased 1/Nov/08 5.03 - 1 Nov 08 13-Nov-13 5.03 5.03 Retail G Y 1,264.00 1,264 EUR 6.90 1.00 6.90 - - 0.0%
A4a Líra és Lant Leased 7/Dec/06 10.00 7 Dec 06 7-Dec-16 8.19 8.19 Retail G Y 209.00 209 EUR 13.29 1.00 13.29 2,776.77 33,321.29 1.9%
A4b Garko Leased 1/Mar/07 10.00 1 Mar 07 1-Mar-17 8.42 8.42 Retail G Y 198.00 198 EUR 17.89 1.00 17.89 3,541.23 42,494.76 2.4%
A5 empty Vacant 0/Jan/00 - 29 Nov 08 - - Retail G Y 397.00 397 EUR 18.14 1.00 18.14 - - 0.0%
A6 Mona Lisa Leased 1/Mar/07 10.00 1 Mar 07 1-Mar-17 8.42 8.42 Retail G Y 207.00 207 EUR 19.67 1.00 19.67 4,072.41 48,868.97 2.7%
A7 Café Leased 1/Oct/07 9.42 1 Oct 07 1-Mar-17 8.42 8.42 Retail G Y 84.00 84 EUR 22.02 1.00 22.02 1,850.02 22,200.29 1.2%
A8 Fáraó mobile Leased 15/Jan/07 5.00 15 Jan 07 15-Jan-12 3.29 3.29 Retail G Y 78.75 79 EUR 18.40 1.00 18.40 1,448.69 17,384.22 1.0%
A9 Wellmed Leased 15/Apr/08 10.00 15 Apr 08 15-Apr-18 9.54 9.54 Retail G Y 60.90 61 EUR 23.51 1.00 23.51 1,431.52 17,178.18 1.0%
A10 Posta Leased 30/Sep/07 5.00 30 Sep 07 30-Sep-12 4.00 4.00 Retail G Y 128.00 128 EUR 7.67 1.00 7.67 981.12 11,773.44 0.7%
A11a Optica Leased 3/Sep/07 10.00 3 Sep 07 3-Sep-17 8.93 8.93 Retail G Y 61.95 62 EUR 26.67 1.00 26.67 1,652.47 19,829.60 1.1%
A11b Lombard Leased 1/Nov/08 5.00 1 Nov 08 1-Nov-13 5.00 5.00 Retail G Y 78.75 79 EUR 18.40 1.00 18.40 - - 0.0%
0 Lombard Leased 1/Nov/08 5.00 1 Nov 08 1-Nov-13 5.00 5.00 Retail G Y 40.00 40 EUR 9.20 1.00 9.20 - - 0.0%
A11c empty Vacant 0/Jan/00 - 30 Sep 08 0-Jan-00 - - Retail G Y 131.00 131 EUR 18.40 1.00 18.40 - - 0.0%
A12 Euronics Leased 1/Jul/08 5.00 1 Jul 08 1-Jul-13 4.75 4.75 Retail G Y 610.63 611 EUR 5.42 1.00 5.42 3,307.54 39,690.46 2.2%
A13 empty Vacant 0/Jan/00 - 30 Sep 08 0-Jan-00 - - Retail G Y 192.19 192 EUR 15.33 1.00 15.33 - - 0.0%
A14 Office Depot Leased 30/Nov/06 5.00 30 Nov 06 30-Nov-11 3.16 3.16 Retail G Y 925.00 925 EUR 10.71 1.00 10.71 9,907.27 118,887.22 6.6%
A15 Allsize Leased 9/Mar/07 5.00 9 Mar 07 9-Mar-12 3.44 3.44 Retail G Y 100.80 101 EUR 21.26 1.00 21.26 2,142.77 25,713.19 1.4%
A16 Patika Leased 27/Jun/07 10.00 27 Jun 07 27-Jun-17 8.74 8.74 Retail G Y 108.15 108 EUR 21.46 1.00 21.46 2,321.12 27,853.38 1.5%
A17 Leonardo Leased 5/May/08 8.00 5 May 08 5-May-16 7.59 7.59 Retail G Y 918.00 918 EUR 5.62 1.00 5.62 5,160.08 61,920.94 3.4%
A18 JYSK Leased 10/Dec/06 10.00 10 Dec 06 10-Dec-16 8.19 8.19 Retail G Y 1,260.00 1,260 EUR 7.87 1.00 7.87 9,915.44 118,985.33 6.6%
A19 Cardo Leased 1/May/07 5.00 1 May 07 1-May-12 3.58 3.58 Retail G Y 199.50 200 EUR 18.40 1.00 18.40 3,670.00 44,040.02 2.4%
A20 UniCredit Leased 12/Dec/06 5.00 12 Dec 06 12-Dec-11 3.20 3.20 Retail G Y 199.50 200 EUR 23.51 1.00 23.51 4,689.45 56,273.36 3.1%
A21 DM Leased 7/Dec/06 5.00 7 Dec 06 7-Dec-11 3.18 3.18 Retail G Y 353.00 353 EUR 16.15 1.00 16.15 5,700.10 68,401.23 3.8%
A22 Fressnapf Leased 14/Dec/06 6.00 14 Dec 06 14-Dec-12 4.21 4.21 Retail G Y 690.41 690 EUR 10.02 1.00 10.02 6,914.87 82,978.44 4.6%
A23 Burger King Leased 1/Jul/07 10.00 1 Jul 07 1-Jul-17 8.75 8.75 Retail G Y 252.58 253 EUR 16.18 1.00 16.18 4,088.00 49,056.00 2.7%
A24 Silver BO Leased 14/Dec/06 5.00 14 Dec 06 14-Dec-11 3.20 3.20 Retail G Y 201.60 202 EUR 17.37 1.00 17.37 3,502.60 42,031.18 2.3%
A26 CIB Leased 28/Dec/06 10.00 28 Dec 06 28-Dec-16 8.24 8.24 Retail G Y 241.00 241 EUR 22.48 1.00 22.48 5,418.64 65,023.73 3.6%
A27 Atlantic Leased 1/Oct/07 10.00 1 Oct 07 1-Oct-17 9.00 9.00 Retail G Y 563.00 563 EUR 25.55 1.00 25.55 14,384.65 172,615.80 9.6%
A27a Atlantic Leased 1/Oct/07 10.00 1 Oct 07 1-Oct-17 9.00 9.00 Retail G Y 15.00 15 EUR 7.67 1.00 7.67 114.98 1,379.70 0.1%
A28 Parwan Leased 20/Jun/08 5.00 20 Jun 08 20-Jun-13 4.72 4.72 Retail G Y 264.00 264 EUR 6.13 1.00 6.13 1,618.85 19,426.18 1.1%

TOTAL Ground Floor - - - 15,255.71 - - - - 0.0%

B1 Tesco Leased 11/Jan/07 15.00 11 Jan 07 11-Jan-22 13.28 13.28 Office 1st Y 385.00 193 EUR 8.18 1.00 8.18 1,573.88 18,886.56 1.1%
B2 empty Vacant 0/Jan/00 - 30 Sep 08 0-Jan-00 - - Office 1st Y 264.74 265 EUR 9.20 1.00 9.20 - - 0.0%
B3 Sybil Europe Leased 13/Jan/07 6.00 13 Jan 07 13-Jan-13 4.29 4.29 Office 1st Y 271.69 272 EUR 8.18 1.00 8.18 2,221.34 26,656.05 1.5%
B3a empty Vacant 14/Jan/07 - 30 Sep 08 0-Jan-00 - - Office 1st Y 60.02 60 EUR 9.20 1.00 9.20 - - 0.0%
B4 Center management Leased 15/Jan/07 5.00 15 Jan 07 15-Jan-12 3.29 3.29 Office 1st Y 193.00 193 EUR 8.18 1.00 8.18 1,577.97 18,935.62 1.1%
B5 empty Vacant 0/Jan/00 - 0 Jan 00 0-Jan-00 - - Office 1st Y 580.20 580 EUR 9.20 1.00 9.20 - - 0.0%
B5a Varioffice Leased 1/Mar/08 4.00 1 Mar 08 1-Mar-12 3.42 3.42 Office 1st Y 121.80 122 EUR 9.20 1.00 9.20 1,120.32 13,443.80 0.7%
B7 empty Vacant 0/Jan/00 - 0 Jan 00 0-Jan-00 - - Office 1st Y 601.00 601 EUR 9.20 1.00 9.20 - - 0.0%
B8 empty Vacant 0/Jan/00 - - 0 Jan 00 0-Jan-00 - - Office 1st Y 389.78 390 EUR 9.20 1.00 9.20 - - 0.0%

TOTAL 1st Floor 2,674.73 - 0.0%

C1 Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Nov 08 1-Jan-13 - - Office 2nd Y 1,568.94 1,569 EUR 8.50 1.00 8.50 - - 0.0%
C1balcony Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Nov 08 1-Jan-13 - - Terrace 2nd N 217.60 - EUR - 1.00 - - - 0.0%
C2 Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Nov 08 1-Jan-13 - - Office 2nd Y 1,108.02 1,108 EUR 8.50 1.00 8.50 - - 0.0%
C2balcony Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Nov 08 1-Jan-13 - - Terrace 2nd N 339.46 - EUR - 1.00 - - - 0.0%
C3 Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Nov 08 1-Jan-13 - - Office 2nd Y 1,590.30 1,590 EUR 8.50 1.00 8.50 - - 0.0%
C3balcony Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Nov 08 1-Jan-13 - - Terrace 2nd N 310.22 - EUR - 1.00 - - - 0.0%
C4 Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Nov 08 1-Jan-13 - - Office 2nd Y 1,060.20 1,060 EUR 8.50 1.00 8.50 - - 0.0%
C4balcony Marketing start 01/08 Vacant 1/Jan/10 - 6.00 30 Dec 08 1-Jan-13 - - Terrace 2nd N 339.46 - EUR - 1.00 - - - 0.0%
C5 Marketing start 01/08 Vacant 1/Jan/10 - 6.00 29 Jan 09 1-Jan-13 - - Office 2nd Y 1,060.20 1,060 EUR 8.50 1.00 8.50 - - 0.0%
C6 Marketing start 01/08 Vacant 1/Jan/10 - 6.00 1 Mar 09 1-Jan-13 - - Office 2nd Y 1,616.60 1,617 EUR 8.50 1.00 8.50 - - 0.0%
C6balcony Marketing start 01/08 Vacant 1/Jan/10 - 6.00 31 Mar 09 11-Jan-13 - - Terrace 2nd N 455.95 - EUR - 1.00 - - - 0.0%

TOTAL 2nd Floor - - - // - - - - 8,004.26 - EUR - 1.00 - - - 0.0%

TOTAL 2nd Floor BALCONY - - - // - - - - 1,662.69 - EUR - 1.00 - - - 0.0%

25,934.70 25,934.70 149,807.33 1,797,687.93 100%

-
CASH FLOW ANALYSIS SHEET
Valuation date 08-‫ספטמבר‬-30
Valuation currency EUR

PURCHASE DETAILS FINANCING ASSUMPTIONS SALE DETAILS

Equity 40.00% 14,560,000 Exit @ year 5 income 2,890,748

Purchase Price (see Price Calc) 36,400,000 Debt 60.00% 21,840,000 Exit Yield 8.00%
Stamp Duty 0.00% - Total Capital Employed 36,400,000 Gross Sale Price 36,134,350
Legals/Agents 0.00% - Selling Expenses 1.00% - 361,344
Total Acquisition Cost 36,400,000 Loan Term (yrs) 999.00 35,773,007
Interest 4.50% Less non rec. operating expenses -
Debt Service Repayments - 982,800 Less Capex -
(P&I basis) Net Sale Price 35,773,007

Year 0 1 2 3 4 5 6 7 8 9 10 11

GROSS REVENUE
Lease income 2,235,441 2,356,262 2,399,008 2,354,550 2,890,748 3,157,623 3,204,445 3,223,777 3,173,780 3,126,218 3,155,097
Vacancy & credit loss allowance on future leases - - - - - - - - - - -
2,235,441 2,356,262 2,399,008 2,354,550 2,890,748 3,157,623 3,204,445 3,223,777 3,173,780 3,126,218 3,155,097
Area falling vacant (m²) 10,620 - - 2,501 9,841 1,383 - 918 2,622 639 -

NON-RECOVERABLE OPERATING EXPENSES

Service charge loss from vacant areas 0.00% - 126,948 - - - 22,509 - 16,531 - 12,445 - - 8,262 - 23,595 - 5,750 -
Asset Management fee - - - - - - - - - - - -
Other non recoverable operating costs - - - - - - - - - - -
Total Expenses - 126,948 - - - 22,509 - 16,531 - 12,445 - - 8,262 - 23,595 - 5,750 -

NET OPERATING INCOME 2,108,494 2,356,262 2,399,008 2,332,041 2,874,217 3,145,178 3,204,445 3,215,515 3,150,184 3,120,468 3,155,097

CAPITAL EXPENSES
Leasing fees - 127,487 - - - 51,492 - 107,096 - 15,528 - - 11,897 - 53,365 - 16,673 -
Maintenance costs prior to releasing - 794,339 - - - 250,095 - 984,099 - 138,275 - - 91,800 - 262,168 - 63,890 -
Total Capex - 921,826 - - - 301,587 - 1,091,195 - 153,803 - - 103,697 - 315,533 - 80,563 -

CASH FLOW BEFORE DEBT SERVICE 1,186,668 2,356,262 2,399,008 2,030,454 1,783,023 2,991,376 3,204,445 3,111,818 2,834,651 3,039,905 3,155,097

PURCHASE/SALE
Purchase Price - 36,400,000
Sale on Exit 35,773,007
- 36,400,000 1,186,668 2,356,262 2,399,008 2,030,454 1,783,023 2,991,376 3,204,445 3,111,818 2,834,651 38,812,911

INVESTMENT RETURNS

1 2 3 4 5 6 7 8 9 10
Running Yield on Capital Employed 3.26% 6.47% 6.59% 5.58% 4.90% 8.22% 8.80% 8.55% 7.79% 8.35%
3 Year Average 5.44%
5 Year Average 5.36%
10 Year Average 6.85%

Assumed Exit Yield 8.00% 7.75% 7.50%

IRR on Capital Employed 6.48% 6.70% 7.18%

FINANCING
Equity - 14,560,000
Debt Service - 982,800 - 982,800 - 982,800 - 982,800 - 982,800 - 982,800 - 982,800 - 982,800 - 982,800 - 982,800
Balloon Repayment on Exit - 21,840,000
Cash Flow After Debt Service - 14,560,000 203,868 1,373,462 1,416,208 1,047,654 800,223 2,008,576 2,221,645 2,129,018 1,851,851 15,990,111

Assumed Exit Yield 8.00% 7.75% 7.50%

IRR on Equity 9.2% 9.7% 10.7%

This model represents one possible permutation from a range and is not necessarily intended to represent the investment performance over the time frame indicated. Real estate markets are dynamic and subject to fluctuation and future
estimates, which clearly cannot be guaranteed, must therefore be treated with care. This page forms part of a detailed report and must not be read in isolation.
 ÚJ BUDA CENTER PHASE 2 VALUATION AS OF 30 SEPTEMBER 2008
List of tenants and income from total lettable area
AREA Sensitivity 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Unit number Unit common Total Lease fee 0% Yld 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
m2 area 0% Erv Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Eur/m2/mo EUR/m2/mo Eur/mo

UJ Buda2 - A1 209.8 0% 209.8 € 17.0 € 17.00 3,566 0 21,822 45,408 46,316 47,243 48,187 49,151 50,134 51,137 52,160 53,203
UJ Buda2 - A2 83.5 5% 87.7 € 22.0 € 22.00 1,928 0 11,802 24,557 25,048 25,549 26,060 26,581 27,113 27,655 28,208 28,772
UJ Buda2 - A3 83.7 5% 87.9 € 22.0 € 22.00 1,934 0 11,834 24,625 25,117 25,620 26,132 26,655 27,188 27,731 28,286 28,852
UJ Buda2 - A4 172.0 5% 180.6 € 17.0 € 17.00 3,071 0 18,793 39,104 39,886 40,684 41,498 42,328 43,174 44,038 44,919 45,817
UJ Buda2 - A5 83.7 5% 87.9 € 22.0 € 22.00 1,934 0 11,834 24,625 25,117 25,620 26,132 26,655 27,188 27,731 28,286 28,852
UJ Buda2 - A6 83.7 5% 87.9 € 22.0 € 22.00 1,934 0 11,834 24,625 25,117 25,620 26,132 26,655 27,188 27,731 28,286 28,852
UJ Buda2 - A7 171.8 5% 180.4 € 17.0 € 17.00 3,067 0 18,772 39,061 39,842 40,639 41,452 42,281 43,127 43,989 44,869 45,766
UJ Buda2 - A8 83.7 5% 87.9 € 22.0 € 22.00 1,934 0 11,837 24,631 25,123 25,626 26,138 26,661 27,194 27,738 28,293 28,859
UJ Buda2 - A9 141.5 5% 148.5 € 17.0 € 17.00 2,525 0 15,452 32,153 32,796 33,452 34,121 34,804 35,500 36,210 36,934 37,672
UJ Buda2 - A10 82.0 5% 86.1 € 26.0 € 26.00 2,239 0 13,700 28,507 29,078 29,659 30,252 30,857 31,475 32,104 32,746 33,401
UJ Buda2 - A11 363.0 0% 363.0 € 12.0 € 12.00 4,356 0 26,659 55,471 56,581 57,713 58,867 60,044 61,245 62,470 63,719 64,994
UJ Buda2- A1G 132.7 5% 139.3 € 8.0 € 8.00 1,115 0 6,821 14,194 14,478 14,767 15,063 15,364 15,671 15,985 16,304 16,630
UJ Buda2- A4G 164.5 5% 172.7 € 8.0 € 8.00 1,382 0 8,456 17,595 17,947 18,306 18,672 19,046 19,427 19,815 20,212 20,616
UJ Buda2- A7G 132.0 5% 138.6 € 8.0 € 8.00 1,109 0 6,786 14,120 14,402 14,690 14,984 15,284 15,590 15,901 16,219 16,544
UJ Buda2- A9G 117.0 5% 122.9 € 8.0 € 8.00 983 0 6,015 12,515 12,766 13,021 13,282 13,547 13,818 14,094 14,376 14,664
UJ Buda2- A11G 444.7 0% 444.7 € 10.0 € 10.00 4,447 0 27,213 56,624 57,756 58,912 60,090 61,292 62,517 63,768 65,043 66,344

0 229,631 477,816 487,372 497,120 507,062 517,203 527,547 538,098 548,860 559,837
PV 7.75% 0.92807 0.86132 0.79937 0.74188 0.68852 0.63899 0.59303 0.55038 0.51079 0.47405 0.43996
Total 2,549.2 2,625.8 37,521 0 197,786 381,952 361,569 342,274 324,009 306,719 290,351 274,857 260,189 246,304 3,078,803
0
CAP VAL 6,064,813 Eur Rev Cap 8.00%
UNIT PRICE 2,310
 Phase 2 - Uj Buda Center
Site Area: 4,700
EUR EUR EUR
1.0 Gross development value
1.1 Usable (Leaseable) retail area EUR 2,310 /sqm x 2,626 sqm = 6,064,813 6,064,813

Hard Cost Inflation 5%

2.0 Estimated project hard costs

2.1 Site Preparation EUR 50 /sqm x 4,700 sqm = 235,000
2.2 Retail construction (b) EUR 656 /sqm x 2,845 sqm = 1,866,743
2.3 Surface parking EUR 58 /sqm x 1,175 sqm = 67,856
2.4 Landscaping EUR 40 /sqm x 1,175 sqm = 47,000
2.5 Off site infrastructure, provisional sum EUR 26 /sqm x 4,700 sqm = 123,375
2,339,974

3.0 Technical services

3.1 Design and planning 4.00% of total project hard costs 93,599
3.2 Inspections and approvals 1.00% of total project hard costs 23,400
3.3 Management & supervision 6.00% of total project hard costs 140,398
3.4 Professional fees 2.50% of total project hard costs 58,499
315,896

4.0 Marketing
4.1 Marketing @ 1.25% of gross development costs 75,810
4.2 Agent's fees @ 16.00% of gross income p.a. 72,041
147,851

5.0 Other expenses

5.1 Legal and accounting 1.25% of hard costs & technical service 29,250
5.2 General administration 1.25% of hard costs & technical service 29,250
5.3 General liability insurance 0.75% of hard costs & technical service 17,550
76,049

6.0 Project contingency

6.1 Contingency @ 5.00% of hard costs, technical service & marketing 143,989

7.0 Financing Costs

7.1 Financing of Construction costs etc 5.50% of hard costs, technical, marketing fees 166,307

7.0 Developer's profit

7.1 Developers's profit @ 15% of development costs excluding site purchase & finance 791,063

8.0 Estimated total construction cost 3,981,128

PV 1 yrs at 7.75% 3,694,783

9.0 Residual 2,083,685

10.0 Site purchase 212,000

11.0 Site value

11.1 Site value pre phasing adjustment 1.0 2,083,685
11.2 PV over (years) 1
at 7.75% 0.928 - 149,871
1,933,814
say 1,930,000
Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

APPENDIX 2

TITLE SHEETS

58
Budapesti 1. számú Körzeti Földhivatal
Budapest, XI.,Budafoki út 59. 1519 Pf. : 415. Oldal: 1/2

Ne m h ite le s tu lajdon i lap - Te lje s m ásolat

Megrendelés szám:8000004/320150/2008
2008.10.06
BUDAPEST XI.KER. Szektor : 34
Belterület 4021/5 helyrajzi szám Térképszelvény : 4133
1117 BUDAPEST XI.KER. Hengermalom út 21.
I. R É S Z
Földrészlet területe változás elõtt: 4700 (m2) törlõ határozat:9011/2006
1. Az ingatlan adatai:
alrészlet adatok terület
kat.t.jöv. alosztály adatok
mûvelési ág/kivett megnevezés/ min.o k.fill. ha m2
ter. kat.jöv
ha m2 k.fill
------------------------------------------------------------------------------------------------
- Kivett üzem és udvar 0 4698 0.00
II. R É S Z
1. tulajdoni hányad: 1/1 törlõ határozat: 53053/1/2008/07.12.03
bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16
törlõ határozat: 53053/1/2008/07.12.03
jogcím: Vétel 83439/1998.03.26., 38164/1/2005/04.12.20.
jogállás: tulajdonos
név: EURO-KÁBEL KÁBELIPARI TERMÉKEKET ÉS SZERELVÉNYEKET FORGALMAZÓ KFT.
cím: 1117 BUDAPEST XI.KER. Hengermalom út 21.

2. tulajdoni hányad: 1/1

bejegyzõ határozat, érkezési idõ: 53053/1/2008/07.12.03
jogcím: Vétel
jogállás: tulajdonos
név: SYBIL HEIGHTS INGATLANFORGALMAZÓ KFT.
cím: 1117 BUDAPEST XI.KER. Hengermalom utca 19-21.

III. R É S Z
1. bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16

- t-75769 térrrajz alapját átjegyezve a 4021/4 helyrajzi számú ingatlanról, megosztás

alapján.

2. bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16

törlõ határozat: 302219/1/2006/06.12.04
Keretbiztositéki jelzálogjog 355 000 000 FT,azaz háromszázötvenötmillió FT erejéig.
a bejegyzés a 375513/1/2005/05.12.15. a 4021/4 hrsz-ra bejegyzett rangsorában.
jogosult:
név: KERESKEDELMI ÉS HITELBANK
cím : 1051 BUDAPEST Vigadó tér 1.

3. bejegyzõ határozat, érkezési idõ: 302848/1/2006/06.12.04

törlõ határozat: 317946/2/2007/07.12.03
Vételi jog 2007.08.30-ig
jogosult:
név: SYBIL HOLDING INGATLANFORGALMAZÓ KFT.
cím : 1117 BUDAPEST XI.KER. Hengermalom utca 19-21

Folytatás a k öve tk e z õ lapon

Budapesti 1. számú Körzeti Földhivatal
Budapest, XI.,Budafoki út 59. 1519 Pf. : 415. Oldal: 2/2

Ne m hite le s tu lajdon i lap - Te lje s m ásolat

Megrendelés szám:8000004/320150/2008
2008.10.06
BUDAPEST XI.KER. Szektor : 34
Belterület 4021/5 helyrajzi szám Térképszelvény : 4133
Folytatás az e lõz õ lapról
III. R É S Z
4. bejegyzõ határozat, érkezési idõ: 290332/1/2007/07.10.30
-
Vételi jog módosítása iránti kérelem elutasítása.
jogosult:
név: SYBIL HOLDING INGATLANFORGALMAZÓ KFT.
cím : 1117 BUDAPEST XI.KER. Hengermalom utca 19-21

TULAJDO NI LAP VÉGE

Budapesti 1. számú Körzeti Földhivatal
Budapest, XI.,Budafoki út 59. 1519 Pf. : 415. Oldal: 1/2

Ne m h ite le s tu lajdon i lap - Te lje s m ásolat

Megrendelés szám:8000004/320184/2008
2008.10.06
BUDAPEST XI.KER. Szektor : 34
Belterület 4021/6 helyrajzi szám Térképszelvény : 4133
1117 BUDAPEST XI.KER. Hengermalom út 19-21.
I. R É S Z
Földrészlet területe változás elõtt: 44419 (m2) törlõ határozat:540/1/2006/06.02.06
Földrészlet területe változás elõtt: 44419 (m2) törlõ határozat:9011/2006
1. Az ingatlan adatai:
alrészlet adatok terület
kat.t.jöv. alosztály adatok
mûvelési ág/kivett megnevezés/ min.o k.fill. ha m2
ter. kat.jöv
ha m2 k.fill
------------------------------------------------------------------------------------------------
- Kivett üzem és udvar 0 4.4412 0.00

1. bejegyzõ határozat: 82280/3/2006/06.03.03

Terheli a BUDAPEST XI.KER. Belterület 3992/1 HRSZ-t illetõ útszolgalmi jog

II. R É S Z
1. tulajdoni hányad: 1/1
bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16
jogcím: Vétel 38164/1/2005/04.12.20. és az 50134/1/2005/04.11.25.
jogállás: tulajdonos
név: SYBIL HOLDING INGATLANFORGALMAZÓ KFT.
cím: 1026 BUDAPEST II.KER. Harangvirág utca 5.

III. R É S Z
1. bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16

- ingatlan megosztás a T-75769 számú térrajz alapján. Átjegyezve a 4021/4 helyrajzi számú
ingatlanról.

2. bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16

törlõ határozat: 201521/1/2007/07.07.09
Keretbiztositéki jelzálogjog 19 874 400 EUR,azaz
tizenkilencmillió-nyolcszázhetvennégyezer-négyszáz EUR erejéig.
1. ranghelyen.
jogosult:
név: HVB BANK HUNGARY RT.
cím : 1054 BUDAPEST Szabadság tér 5-6.

3. bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16

törlõ határozat: 201521/1/2007/07.07.09
Vételi jog
utalás: III/2.
jogosult:
név: HVB BANK HUNGARY RT.
cím : 1054 BUDAPEST Szabadság tér 5-6.

Folytatás a k öve tk e z õ lapon

Budapesti 1. számú Körzeti Földhivatal
Budapest, XI.,Budafoki út 59. 1519 Pf. : 415. Oldal: 2/2

Ne m hite le s tu lajdon i lap - Te lje s m ásolat

Megrendelés szám:8000004/320184/2008
2008.10.06
BUDAPEST XI.KER. Szektor : 34
Belterület 4021/6 helyrajzi szám Térképszelvény : 4133
Folytatás az e lõz õ lapról
III. R É S Z
4. bejegyzõ határozat, érkezési idõ: 40091/2/2006/06.01.16
-
lemondás jelzálogjog rangelyének rendekezési jogáról.
utalás: III/2.
jogosult:
név: SYBIL HOLDING INGATLANFORGALMAZÓ KFT.
cím : 1026 BUDAPEST II.KER. Harangvirág utca 5.

5. bejegyzõ határozat, érkezési idõ: 189605/1/2007/07.06.25

Jelzálogjog 20 000 000 EUR,azaz húszmillió EUR mindenkori forint értékének megfe- lelõ összeg
és járulékai erejéig!.
jogosult:
név: FHB JELZÁLOGBANK NYILVÁNOSAN MÛKÖDÕ RT.
cím : 1132 BUDAPEST XIII.KER. Váci út 20.

6. bejegyzõ határozat, érkezési idõ: 189605/1/2007/07.06.25

Elidegenítési és terhelési tilalom a jelzálogjog biztosítására.
utalás: III/5.
jogosult:
név: FHB JELZÁLOGBANK NYILVÁNOSAN MÛKÖDÕ RT.
cím : 1132 BUDAPEST XIII.KER. Váci út 20.

7. bejegyzõ határozat, érkezési idõ: 189605/1/2007/07.06.25

Vételi jog 2012.06.22-ig
jogosult:
név: FHB JELZÁLOGBANK NYILVÁNOSAN MÛKÖDÕ RT.
cím : 1132 BUDAPEST XIII.KER. Váci út 20.

TULAJDO NI LAP VÉGE

Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

GENERAL TERMS & CONDITIONS:

GENERAL PRINCIPLES APPLYING TO ALL EUROPEAN VALUATIONS

UNDERTAKEN BY KING STURGE

It is our objective to provide a professional and efficient valuation service to all our
clients. In the interests of establishing clear terms of reference at the outset we believe
that it is important that we should fully understand the requirements of our clients and
the purpose and basis of the valuations that they commission and that clients should
understand the usual limitations to the services offered. We are pleased to discuss
variations, where appropriate, and to arrange the provision of extended or additional
services, such as site, building or structural surveys if required.

The following General Principles apply to all valuations and appraisals undertaken by
King Sturge in the Europe unless it is specifically agreed otherwise in confirming
instructions and so stated within the main body of the report. The General Principles
themselves will normally be included as an appendix to the report but will nonetheless
comprise a part of the conditions of our engagement.

1 RICS Appraisal and Valuation Standards "The Red Book"

Valuations and appraisals will be carried out in accordance with the RICS
Appraisal and Valuation Standards ("The Red Book"), 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.

2 Confirmation of Instructions

In order to comply with The Red Book, instructions must be confirmed with clients
in writing. In addition to the matters specifically referred to below, the purpose,
timetable and extent of and limitations to the valuation service are subject to such
agreement.

3 Valuation Basis

Properties are valued individually and 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 stated in the body of the report
and the definition will usually be included with these General Principles

63
Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

4 Title & Burdens

We do not read documents of title although, where provided, we consider and

take account of matters referred to in solicitors 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 neither the property
nor any material litigation pending.

5 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.

6 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.

7 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.

8 Planning, Highways 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, 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
your lawyers 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.

9 Property Insurance

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

64
Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

10 Building Areas & Age

Where so instructed, areas provided from a quoted source will be relied upon.
Otherwise, dimensions and areas measured on location or from plan are
calculated in accordance with the RICS Code of Measuring Practice or local
measuring practice and are quoted to a reasonable approximation, with reference
to their source. Where the age of the building is estimated, this is for guidance
only

11 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.

12 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.

13 Environmental Investigations
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.

65
Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

14 Leases

You should confirm to us in writing if you require us to read leases. Where we do

read leases we recommend that reliance is not placed on our interpretation of
these documents without reference to solicitors particularly where purchase or
lending against the security of a property is involved.

15 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.

16 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.

17 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 and then any such indication given is
only for guidance and should not be relied upon as the basis for insurance cover.

18 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 it's general
accuracy or where it was in accordance with expectation. In addition, we have not
inspected comparable properties.

19 Responsibility

Subject to clauses 1.3 & 16 in the valuation, our valuation is confidential to the
party to whom it is addressed for the stated purpose and no responsibility is
accepted to any third party for the whole or any part of its contents.
Responsibility will not subsequently be extended to any other party save on the
basis of written and agreed instructions; this may incur an additional fee.

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Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

20 Regulated Purpose Valuations (RPV)

The 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, King Sturge shall state the following in its
report:

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 King Sturge has continuously been carrying out the valuation
instruction for the client.

When instructed in a continuing role as external or Independent Valuer, the

terms of engagement will include a statement as to policy on rotation of the
surveyor responsible for the instruction.

21 Disclosure & Publication

If our opinion of value is disclosed to persons other than the addressees of our
report, the basis of valuation should be stated. Neither the whole or any part of
the valuation report nor any 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 and context in which it may appear, excluding the mentioned
above, clauses 1.3 & 16 in the valuation.

22 Complaints Procedure

In accordance with the requirements of the RICS a copy of our complaints

procedure is available on request.

23 Jurisdiction

English 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 England.
In the event of a dispute arising in connection with a valuation, unless expressly
agreed otherwise in writing by King Sturge, the client, and any third party using
the valuation, all will submit to the jurisdiction of the English Courts only. This will
apply wherever the property or the client is located or the advice is provided.

67
Új Buda Center
Hengermalom utca 19 - 21
Budapest 1117
30TH SEPTEMBER 2008
Hungary

Valuation Bases

1 Market Value (MV)

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

Market Value is defined as:

The estimated amount for which a property should exchange on the date of
valuation 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.

2 Existing Use Value (EUV)

Existing Use Value is the estimated amount for which a property should
exchange on the date of valuation based on continuation of its existing use, but
assuming the property is unoccupied, 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.

3 European Union Market Value (EUMV)

Market Value shall mean the price at which land and buildings could be sold
under private contract between a willing seller and an arm’s-length buyer on the
date of valuation, it being assumed that the property is publicly exposed to the
market, that market conditions permit orderly disposal and that normal period
having regard to the nature of the property, is available for the negotiation of the
sale (91/647/EEC).

4 Market Rental Value (MRV)

Market Rental Value is the estimated rent for which a property should exchange
on the date of valuation between a willing lessee and a willing lessor in an
arm’s-length transaction after proper marketing wherein the parties had each
acted knowledgeably, prudently and without compulsion.

68
REPORT AND VALUATION

ON

TRIO FAMILY SHOPPING PARK

BUDAPEST XV

30TH SEPTEMBER 2008

King Sturge Kft

1051 Budapest
Roosevelt tér 7-8.

1
PRESENT BBT INGATLANFORGALMAZÓ KFT
TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY .........................................................................4

2 GENERAL SUMMARY..........................................................................11
2.1 COUNTRY OVERVIEW ...........................................................................11
3 LOCATION ............................................................................................13
3.1 TRANSPORT LINKS ................................................................................15
3.2 SITUATION ................................................................................................16
3.3 PLAN ...........................................................................................................16
3.4 SUMMARY .................................................................................................16
4 PROPERTY DATA ................................................................................17
4.1 THE PROPERTY.......................................................................................17
4.2 STANDARD FINISHES ............................................................................20
4.3 PHOTOGRAPHS ......................................................................................21
4.4 SUMMARY .................................................................................................21
5 ACCOMODATION.................................................................................21
5.1 FLOOR AREAS .........................................................................................21
5.2 SITE AREA.................................................................................................22
6 SERVICES.............................................................................................22

7 CONDITION...........................................................................................23
7.1 GENERAL CONDITIONS ........................................................................23
7.2 DELETERIOUS MATERIALS..................................................................23
8 STATUTORY ENQUIRIES ....................................................................23
8.1 TOWN PLANNING ....................................................................................23
9 ENVIRONMENTAL CONSIDERATIONS ..............................................24
9.1 CONTAMINATION ....................................................................................24
9.2 FLOOD RISK..............................................................................................24
10 TAXATION ............................................................................................24
10.1 VAT..............................................................................................................24
10.2 TRANSFER TAX (STAMP OUT).............................................................25
11 TENURE ................................................................................................25

12 TENANCIES ..........................................................................................26

13 NARROWED MARKET SEGMENT REVIEW .......................................26

13.1 DISTRICT REVIEW ..................................................................................26
13.2 DEMOGRAPHIC AND CUSTOMER PROFILE ....................................26
13.3 MARKET CONDITIONS...........................................................................29
13.4 COMPETING SCHEMES.........................................................................30

2
PRESENT BBT INGATLANFORGALMAZÓ KFT
TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

14 VALUATION..........................................................................................31
14.1 VALUATION ASSUMPTIONS.................................................................31
14.2 MARKET VALUE.......................................................................................35
15 SWOT ANALYSIS .................................................................................40
15.1 STRENGTH................................................................................................40
15.2 WEAKNESSES..........................................................................................40
15.3 OPPORTUNITIES.....................................................................................40
15.4 THREATS...................................................................................................40
16 CONCLUSION.......................................................................................41
16.1 KEY ISSUES ..............................................................................................41
17 PROJECT ANALYSIS...........................................................................41
17.1 SCOPE REVIEW.......................................................................................41
17.2 PRICE REVIEW.........................................................................................42
17.3 COST REVIEW..........................................................................................42
17.4 SCHEDULE REVIEW ...............................................................................42
17.5 PLANNING REVIEW ................................................................................42
17.6 LAND RISK AND PROJECT RISK REVIEW.........................................42
18 OVERALL PROJECT REVIEW.............................................................43

APPENDICES

1 VALUATION CALCULATIONS

2 CADASTRAL EXTRACT AND SITE PLAN

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

1 EXECUTIVE SUMMARY

Location: The proposed project referred to as the TRIO Family Shopping

Park is located in the northern part of Budapest on the edge of
District XV in an area called Rakospalota. It is approximately 11
km north –north east of the city center and directly fronts the M3
motorway. The M3 leads from Budapest towards Miskolcs and
Debrecen in eastern Hungary. The area is already reasonably
well developed with Metro, Praktiker and Gulliver Toy Store
already represented opposite the site. Other notiable retail in
the neighbourhood is Polus Center located on Szentmihaly ut
(1.5km due east) and Cora, Bricostore 1km north of the subject
site.

Description: The property comprises land with a total site area of 146,920 m2
upon which the owner intends to develop a new Out of Town
retail park. The scheme will principally provide a two phases
developments:

Phase I with a proposed scheme of 35,945 m2 GLA including a

hypermarket anchor, 6 LSU’s a unit shop provision of circa 38
units, stands and a food court in the ground floor and 9,731 m2
GLA including fitness, entertainment and first floor DIY units on
the first floor. Phase I will be serviced with approximately 1,450
surface car parking spaces orientated towards the front of the
scheme.

Phase II with a proposed 12,110m2 GLA including 4 MSU’s a

unit shop provision of circa 29 units. Phase II will be serviced
with approximately 350 surface car parking spaces orientated
towards the front of the scheme. TRIO Family Shopping Park,
with a total gross leasable area of 57,786m2 will be amongst
the most dominant retail scheme in the northern districts of the
city. The center is arranged in a classic "U" shape with anchors/
LSU’s at either end. Anchors are anticipated to be food, office
supplies, Sports department store, electronics and fashion.

Tenure: The property is held with unlimited ownership. Present BBT

Ingatlanforgalmazó Kft is 100% owner (the owner).
The development is currently under pre-leasing and building
Tenancies:
permitting process.

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BUDAPEST

Valuation Base: Scenario 1 = MARKET VALUE assuming scheme is let

Scenario 2 = MARKET COMPARABLES

Gross Development Value: Phase I: €72,099,000 as at 30th Sept 2008

Phase II: €20,158,000 as at 30th Sept 2008

Residual Site Value Phase I: €18,990,000 as at 30th Sept 2008

Phase II: €3,520,000 as at 30th Sept 2008

The value applies for the sale of the subject property

via a quota sale & purchase rather then the
acquisition of the asset itself.

The above figures are for 100% interest in the asset.

Total Development Cost: Phase I: €42,500,000 (SCENARIO 1)

Phase II: €13,000,000 (SCENARIO 1)

NOTE THIS EXCLUDES DEVELOPERS PROFIT

Profit on Cost 17.5% Phase 1 and 20% Phase 2

Market Value €22,500,000 AS AT 30th Sept 2008

(Scenario 2)
€153 /M2 (SCENARIO 2)

Key Issues: Subject to planning and final building consents.

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PRESENT BBT INGATLANFORGALMAZÓ KFT
TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

23rd of October 2008

Present BBT Ingatlanforgalmazó Kft

Harangvirág utca.5
1026 Budapest
Hungary

For the Attention of:

Mr Motti Peretz,

Dear Sirs,

PROPERTY VALUATION OF PHASE 1 & 2 OF TRIO Family SHOPPING Park –

BUDAPEST XV

INSTRUCTIONS
Purpose of the Valuation

In accordance with your instructions dated the 19th September 2008, from Present BBT
Ingatlanforgalmazó Kft, by Motti Peretz – Managing Director, we have inspected and valued
the above site and proposed development, which is owned by Present BBT
Ingatlanforgalmazó Kft (“the Company”) and referred to in the appendices, in order to advise
you of our opinion of the 100% interest the Market Value of the freehold interest in the
currently undeveloped property for financial reporting purposes.

The valuation is of the 30th September 2008.

As referred to in the appendices the valuation has been undertaken without having seen any
structural, soil survey or environmental report and we would draw your attention to section 1.6
below.
Our valuation advice has been prepared in accordance with the basis of valuation and
valuation assumptions set out below and in accordance with the Appraisal and Valuation
Standards, Sixth edition, published by the Royal Institution of Chartered Surveyors (RICS).
Details of the surveyors inspecting and valuing each property are provided in the Appendix to
this report.

Status of Valuer & Conflicts of Interest

We confirm that we have undertaken the valuations acting as External Valuers as defined in
the RICS Appraisal and Valuation Standards.

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

Purpose of Valuation

We understand that this Valuation Report is required for the purpose of the company’s
financial reports, according to the IFRS. King Sturge consents that this valuation would be
attached in its entirety to the publicly published financial reports of Sybil Europe Public Co.
Limited to the Tel Aviv Stock Exchange and the Israel Security Authority.
Please note the basis of valuation adopted may not be appropriate for other purposes, so the
Valuation should not be relied upon for any other purpose without prior consultation with us.

Bases of Valuation

The value of the property has been assessed in accordance with the relevant parts of the
current Appraisal and Valuation Standards (the “Red Book”) published by the Royal Institution
of Chartered Surveyors (RICS). PS 3.2 of the Red Book defines "Market Value" as "The
estimated amount for which a property should exchange on the date of valuation 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".

The property is held freehold for Development and as requested by Present BBT
Ingatlanforgalmazo Kft, we have considered Market Value on the following basis:

Market Value of the proposed project assuming it is satisfactorily let on the assumptions
contained herein. We have adopted a Residual based on Discounted Cash Flow and a
market comparable approach in order to appraise the subject property’s completed value.

The property according to our knowledge is with planning but subject to building permits for a
retail development, which is expected to be awarded in Q4 2008.

Taxation & Costs

No allowances have been made to reflect liability to taxation or other costs associated with
disposal. Nor, as is customary in Central & Eastern European markets, has an allowance
been made in respect of purchaser’s costs.

Assumptions and sources of information

The Glossary to the Red Book states an assumption to be a "supposition taken to be true".
This may include information or conditions affecting the subject property or approach to a
valuation that, by agreement, need not be verified by a valuer.
In undertaking our valuations, we have made a number of Assumptions and have relied on
certain sources of information. Where appropriate, Present BBT Ingatlanforgalmazo Kft has
confirmed that our Assumptions are correct so far as they are aware. In the event that any of
these Assumptions prove to be incorrect then our valuations should be reviewed.

The Assumptions made for the purposes of our valuations are referred to below:-
The client has provided us with such information as details of tenancies, use, town planning
consents and the like. We have obtained title documentation form the Budapest Land
Registry and floor plans from Casiopea Group, the schemes architects. We have assumed
that the documentation supplied is correct and that our understanding of the situation is also
correct.

We have made an Assumption that the Company is possessed of good and marketable
freehold title in each case and that there are no encumbrances or unduly onerous or unusual
easements, restrictions, outgoings or conditions that are likely to have an adverse effect on

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the value of the properties. We have also assumed that the properties are free from
mortgages.

We have not affected official searches and for the purposes of this valuation we have
assumed that full planning consent exists for the project stated in this report.

We have not calculated areas and have relied upon areas provided by the owners, which we
assume to have been calculated in accordance with local market practice.

No allowance has been made in these valuations for any items of plant or machinery not
forming part of the service installations of the buildings. All items of plant, machinery and
equipment wholly or primarily related with the occupants’ business have specifically been
excluded.

We have not carried out site surveys or environmental assessments or investigated historical
records to establish whether any land is, or has been contaminated. We are not aware of the
content of any environmental audit, site survey or any other investigations which may have
been carried out on the properties that may draw attention to any contamination or the
possibility of any contamination and we have assumed that no hazardous or potentially
contaminated substances have been or are being used at the properties. Should it however
be established subsequently that contamination exists at the properties or on any
neighbouring land or that the premises have been or are being put to any contaminative uses,
this might reduce the values now reported.
No soil bearing tests have been carried out by us and we cannot offer any opinion either as to
the suitability of the sites for existing or proposed developments nor the condition of or
potential liability for any embankment, river, wharf or retaining wall.
We have not made any assessment of the potential liability for flooding and for the purposes
of this valuation have assumed the properties would not be subject to flooding.

Compliance with Standards

This engagement letter and the report has been prepared and signed by James Kinnell BSc,
MRICS, MPhil, a Chartered Surveyor with 14 years experience in the region and qualified to
give valuation advice on this type of property and in this locality. This valuation has been
made in accordance with the Valuation and Appraisal Standards (the Standards) published by
the Royal Institution of Chartered Surveyors (RICS), subject to the Special Assumptions
explained below.

King Sturge Kft. is acting as External Valuers. An External Valuer is defined in the Standards
as “A valuer who, together with any associates, has no material links with the client, an agent
acting on behalf of the client, or the subject of the assignment.”

We confirm that King Sturge Kft. have no direct interest in the property or the parties
associated with it. King Sturge confirms that the engagement letter signed between it and
Present BBT Ingatlanforgalmazo Kft is on an arms length basis with a remuneration based
upon a fixed fee without insentivisation. Accordingly, we are able to provide independent
advice.

Our involvement in the property dates back to:

April 2007 when we were asked by Sybil Europe Public Co. Limited to provide a valuation
report for the purpose of financial reporting.
October 2007 when we were asked by Present BBT Ingatlan forgalmazo Kft to provide a
valuation report for the purpose of financial reporting.
February 2008 when we were asked by Present BBT Ingatlan forgalmazo Kft to provide a
valuation report for the purpose of financial reporting.

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BUDAPEST

September 2008 when we were asked by Present BBT Ingatlan forgalmazo Kft to provide
a valuation report for the purpose loan security.

Special Assumptions

In preparing this report we have made a number of Special Assumptions regarding the
planning status of the site, the ability to lease the retail elements of the proposed
development to future owner-occupiers, and the divisibility of the site to allow a phased
release of land in the open market as outlined below. These are not matters of fact and do not
accord with the present circumstances of the property today. These assumptions directly
affect our valuation, and are therefore “Special Assumptions” under the terms of the
Standards. A Special Assumption is defined as “An Assumption that either:

Requires the valuation to be based on facts that differ materially from those that exist at the
date of valuation; or

Is one that a prospective purchaser (excluding a purchaser with a special interest) could not
reasonably be expected to make at the date of valuation, having regard to prevailing market
circumstances.”

In the case of this report, it is the first of these definitions that is applicable. Further
information on the use of Special Assumptions is available in PS 2.3 and Appendix 2.3 of the
Standards. Copies of these can be provided on request.

The specific Special Assumptions we have made are:

The valuation provided is based upon the subject site being appropriately zoned and the
subject development being permitted. In order to develop the site, a specific design, within the
constraints of the General Development Plan has to be submitted. Currently the land does not
have these detailed permits in place as no application has been made. Accordingly, a ‘Special
Assumption’ has been made, to the effect that the land has been issued a Building Permit, for
the specific scheme contained in this report below.

In arriving at an appropriate assessment of the Market Value of the site, we have assumed
land is made available to the market (or developed directly), on a controlled and appropriately
phased basis over time and can be let to appropriate covenants on the rental levels
suggested.

The values outlined in the report are therefore calculated, and dependent upon, these
hypotheses, although are not considered inappropriate for this exercise.

Valuation Summary

We have appraised the existing property value based upon its present cash flow with an
appropriate assumption for leasing up of the vacant parts. We have adopted a discount rate
of 8.50% for Phase 1 and 2 for the DCF and a present value adjustment on the residual of 9%
for Phase 1 and 10% for Phase 2, to reflect the possible rental void in the first instance and
the development risk inherent in the second project.

We have arrived at the Gross Development Value of both Phase 1 and Phase 2, based upon
the assumptions as of 30th September, 2008 herein to be:

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

2 GENERAL SUMMARY

2.1 COUNTRY OVERVIEW

Hungary was part of the polyglot Austro-Hungarian Empire, which collapsed during
World War I. The country fell under Communist rule following World War II. In 1956, a
revolt and announced withdrawal from the Warsaw Pact were met with a massive
military intervention by Moscow. Under the leadership of Janos Kadar in 1968, Hungary
began liberalizing its economy, introducing so-called "Goulash Communism." Hungary
held its first multiparty elections in 1990 and initiated a free market economy. It joined
NATO in 1999 and the EU in 2004.

Since the mid-1990s, the Hungarian economy has grown at an annual average rate of
4%, one of the highest growth rates in the EU. The private sector accounts for over
80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread,
with cumulative foreign direct investment totalling more than $60 billion since 1989.
Hungarian sovereign debt was upgraded in 2000 and together with the Czech Republic
holds the highest rating among the Central European transition economies; however,
ratings agencies have expressed concerns over Hungary's unsustainable budget and
current account deficits. Germany is by far Hungary's largest economic partner.

As a result of its early open policy toward foreign investment and due to its central
geographical location, Hungary has been the preferred location among Central
European countries for foreign direct investment since the beginning of the transition to
a market economy. It has been one of the region’s most popular countries amongst
foreign investors, with 27% of all foreign investment in the region ending up in Hungary,
it is only overtaken by Poland.

In 2007, the retail sales rate in Hungary in the food sector grew by 4.3 %. Overall the
weighted retail sector dropped by 2.9% since there was a drop of 5.8% in the non-food
spending. Consumer Price Index increased by 7.9% according to statistics issued by
the KSH for the period January 07 to December 07. The current unemployment rate is
6.3% and suspected to rise given the weakening economy.

Interest rates have been steadily falling since 2002, the current interest rates are 8.5%
in Hungarian forints and are likely to rise in order to mirror the currently higher inflation
as fears of stagflation loom on the horizon. (low GDP growth and high inflation) One of
the positive signs of the Governments fiscal policy has been the reduced public sector
budget deficit currently standing at 6.1% resulting from higher taxes at a local level and
a weak forint making imports 10% more expensive within the past 6 months. It is
expected to fall to 4% during 2008

International developers have introduced to the Hungarian market larger developments

with greater amenities and more sophisticated marketing, resulting in a more
competitive environment. Leading international developers are mostly from Israel,
Ireland and Germany. Demand for income producing products of all asset types is
particularly strong and has been one of the key drivers of strong yield compression.
International investors are mostly from Germany, Austria, UK, Ireland, Spain and Israel.

Demand for retail space in shopping centers has been increasing ever since the first
institutional style shopping centers were built in the mid 1990’s. Since then, more than
67 shopping centers have been built across Hungary and 108 hypermarkets. This has
added 1.66 million m2 of shopping centers and 1.72million m2 of hypermarkets making
a total of new retail of 3.37million m2. Today there is approximately 0.237m2 of retail
space per capita in Hungary, albeit most of it is concentrated around Budapest. There

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BUDAPEST

has been a strong demand for modern retail in Budapest over the past 8 yrs due to the
high per capita income (when compared with other countries in Central Europe) and the
growing disposable income

Category 2007 2006

GDP 118 bn $ 168 bn $
GDP/ capita (WP) 19,500 $ 16 840 $
Retail Expenditure/ 6,208 $ 6,400 $
capita in Budapest
Fiscal Deficit 5.16 bn $ 8 bn $
Interest Rates HUF Deposit 7.5% Deposit 6.2%
Inflation 7.2 % 4.16 %
CPI Gen Index 7.4 % 1.8 %
Unemployment 7.2 % 5.9 %
Registered Cars 335,600 380,000
Budapest
Population 1,928,000 2,018,000
ALL FIGURES PROVIDED BY CIA & KSH HUNGARY (KOZPONTI STATISZTIKAI HIVATAL) 2007
EDITION

Amongst its residents, 20% of all retail sales are concentrated in

supermarkets/hypermarkets through out the country. Analysts suggest now that
Budapest is close to reaching retail floor space saturation and older, less successful
shopping center schemes will need to rebrand or reposition them selves in the market if
they are to compete with the larger dominant attractions in Budapest. Even new
schemes such as Arena Plaza are struggling and have needed to give rent rebates to
hold on to tenants. Set against this background is the number of new trading fascias
entering the market who struggle to find appropriate space: eg, Zara, KIK, Magma,
InterSport, Jysk, Decathlon, Saturn and Müller.

At the end of Q3 2007, the y-o-y turnover of shopping centers and hypermarkets was
estimated at 3.3bn Euros or 1,680 Euros/m2 pa turnover, in 2008 it is predicted to be
approximately 3,6% higher but this is a result of inflation rather than consumption which
is in fact declining. Statistics from GFK show that non food spending between Q2 2007
and Q2 2008 has dropped by over 9% whilst food spending has increased by circa
5,6% but actually volumes purchased have dropped – again a result of inflation.

The growth in the retail market over the coming years is anticipated to be from
additional neighbourhood schemes in the provinces. According to major food store
groups they are together planning some 10 to 12 additional units (Aldi and Lidl). We
can expect to see the development or diversification of the retail market with more
specialty orientated schemes such and factory outlets, out of town retail power centers
and home centers.

Shopping center rents vary from 70 to 100 Euros/m2 for units between 30m2 and
70m2, 30 Euros to 50 Euros for units between 70m2 and 120m2 and for anchors and
MSU’s (Medium Sized Units) between 8 and 18 Euros/m2/month. Service charges are
typically between 4.5 and 10 Euros/m2/month.

Land prices, of all forms of real estate investment, have seen the greatest increases
over the past 3 yrs. This has been driven by a combination of factors, including the lack
of suitable development sites, the number of new players entering the market and the
higher returns (prime yields for retail have compressed from 8.75% in early 2005 to
circa 6% in Q3 of 2007 following the sale of Arena Plaza to AiiM and even down to
5,45% for the sale of Campona. Since these transactions the market has moved out
by up to 120bp to reflect the changes in the debt markets and the effects of less
liquidity.

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3 LOCATION

The subject site is located on the Pest side of the Danube in the XV th District of
Budapest referred to as Rákospalota which is located 11 km northeast of the city
center. Rákospalota is a fringe residential and commercial area of the city and is just
within the city boundary of Budapest. The subject site fronts the start of the M3
motorway which connects Budapest to Miskolc in eastern Hungary. The proposed
development site is also 500m from the junction of the M0 orbital motorway.
The map below indicates the sites location in relation to the M3 and the M0 motorways

The population has grown in the XV th District as a result of numerous new residential
developments over the past 3 years, the most notable schemes are Homoktövis
Residential Park. Today the population of the XV th District is 90,000 and the 5th largest
in Pest. The District supports an average household size of 3.2.

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BUDAPEST

The location has also been chosen by a number of leading out of town retailers which
include Metro, Mazda, Peugeot, Praktiker, Cora and Gulliver Toys. The area was first
recognised as being a strong location for retail in the mid 1990’2 when the Polus
shopping center, located in the center of XV th District, was built and subsequently
anchored by Tesco.

The site can be accessed directly from the M3 via the interchange, which connects the
Metro/Praktiker developments or via Mogyoród útja and Régi Fóti út. The surrounding
area is generally undeveloped and therefore offers opportunities in the future to infill the
neighbouring sites with residential projects.

Moreover, the developer has received the approval from the highway authorities (AAP
Rt) to grant the project an access, which leads the traffic from the M3, via an
underground tunnel, directly to the parking area of the project. This solution enhances
the desirability from the retailers and the continuing negotiations with them.

M3

M0

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3.1 TRANSPORT LINKS

The XVth District is one of the easiest parts of Budapest to access, principally because
it is straddling one of the primary arterial roads in/out of the city. The subject site is
best reached from central Pest via the M3 dual carriageway which leads directly from
Róbert Károly Krt (inner ring road) or from the newly constructed M0 motorway which
runs to the north of the site and connect the XV th District with the IV th District. Both
roads are 2 or 3 lanes in each direction thus ensuring the free flow of carborne traffic in
the area. Estimated drive times from the main residential areas of the IV th District are
circa 10 minutes, Ujpalota in the XV th District is 5 minutes and the northern parts of the
XIV th District is 10 minutes. Accordingly, the site of the future scheme provides good
access.

The proposed and approved main accesses to the project, as presented by the
company are:

a. Coming from the North-East (from the M0), via the existing interchange, adjacent to
the "SHELL" service station into the site.

b. Coming from the South-West (from City Center), via the new approved tunnel under
the M3, directly into the parking of the project.

Additional access to the site can be gained from Mogyorod utja to the north western
boundary of the site. This access is perhaps more suited to deliveries rather than a
principle means of access.

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BUDAPEST

By public transport the site is somewhat limited with only routes 25, 96 and 177 passing
the viscinity of the site. Accordingly, it is proposed by the owner to provide a shuttle
bus service from the Polus Center and other high density pick up points to facilitate
traffic to the scheme.

3.2 SITUATION

The site is situated within the XV th District of Budapest which borders the IV th District
to the north west, and the XVI th District to the east and the XIV th District to the south.
The IV th and XIV th Districts are major residential districts within Budapest and would
principally form the direct catchment of the center.

To the north of the site are agricultural fields, a Shell petrol station and beyond some
light commercial buildings which border to Régi Fóti út and eventually the M0. To the
east the site directly borders the M3 motorway and opposite the retail park occupied by
Metro, Gulliver and Praktiker. To the south the site is defined by Mogyoródi út and
beyond residential detached houses and low rise apartment buildings whilst to the west
the site is bordered by residential properties.

Given the expected traffic generation from the retail development, a new access
junction will be developed with a filter road from the north directly in to and out of the
site. Whilst from the west, a secondary access will be constructed leading from
Mogyoród utja. It is anticipated that most of the traffic will be coming from Regi Foti ut
or the M3.

3.3 PLAN

Due to the rather preliminary nature of the development, plans are currently under
design by appointed architects, Casiopea Limited based in Budapest. These are
subject to change resulting from anchor and LSU occupier requirements. Thereafter
final design input can be made and the permitting plans produced.

3.4 SUMMARY

The property is located in what is one of the developing commercial and residential
areas of north east Budapest. There are clear signs of both residential and commercial
development and even leisure. He latter it is proposed to develop an Aqua Park and
hotel complex just south of Dunakeszi. Furthermore, with the extension of the M0 filling
the quadrant from 1 o’clock to 3 o’clock it will open up another catchment from the XVI
th District and the outer lying villages of Csömör, Nagytarcsa and Kistarcsa. This part of
the M0 is scheduled for completion in 2009.

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4 PROPERTY DATA

4.1 THE PROPERTY

The Trio Family Shopping Park scheme design has been evolved in co-operation with
independent architects Casiopea Limited, based in Hungary, with additional design
input from the Headquarters of the developer following input from the design team of
anchor store retail operators. We would initially comment that a scheme arranged over
mainly ground floor. By linking in the car parking directly to the front of the building and
where the majority of public transport arrives goes a long way to ensuring free
movement within the scheme. The number of shops according to the plans provided
reflects in Phase I a hypermarket, 4 LSU’s a unit shop provision of circa 38 units,
stands and a food court in the ground floor and 9,731m2 GLA including entertainment
units in the first floor and in Phase II 4 MSU’s a unit shop provision. We anticipate that
this provision should be able to be absorbed in such a format where Budapest is
lacking in out of town retail. The average unit shop size in Budapest is 75m2 but for out
of town retail this rises to 210m2, therefore the proposed scheme grid reflects the retail
occupier requirements.

The scheme proposal broadly comprises in Phase I a ground floor of 35,945m2 GLA
and 9,731m2 GLA in second floor. In Phase II a ground floor of 12,110m2 GLA only.
The Center totalling net leasable area of 57,786m2 served by surface parking

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(providing approximately 1,800 open free car spaces). The configuration of the center is
arranged in the classic “U” shape layout with the anchor stores securing the ends of the
centre so as to encourage disbursement of consumers. The leisure/ food court takes
the form of a centrally positioned forum in the middle of the scheme with an area of 250
m2 it is proposed to be operated by domestic catering operators.

The scheme will be anchored by a major hypermarket operator, since Metro, Cora and
Auchan are in close proximity. Advanced negotiations are held with Tesco. They are
known to be cramped in Polus and are looking to increase their trading capacity in the
neighborhood. The LSU’s could comprise Euronics, for electronics and consumer white
goods, OBI for DIY and a sports or furniture retailer. In addition to the anchors the
scheme will be further supported by 3 MSU’s (fashion and office supplies, etc.).
Fashion retailers could comprise C&A, Magma, or Zara Outlet. The access to the units
will be from the parking.

The hypermarket is orientated to the southern elevation far from the main traffic
entrance to the Center with the capability to be independently serviced from the rear
access road.

Car parking, is on a ratio of 1 space per 30 m2 of the gross leasable area of the Center
and is considered to be sustainable given that car ownership is 1 : 1.7 inhabitants. The
scheme is based on functionality of the various units planned in order to give the up
most flexibility in dividing the space to big and small units, while all are facing the
parking with an appropriate frontage to dept ratio. In our view and having appraised the
market it seems appropriate as this will also aim to differentiate the scheme from
specialty and comparison retailers.

It is envisaged that the supermarket, variety anchor stores and the majority of the unit
shops should benefit from separate vehicle servicing areas which appears from the
plans to have been adopted, at the back side. The remainder of small units of the
scheme being informally serviced directly at the front. From the initial concept plans
provided this appears to have been satisfactorily implemented.

For a stand-alone facility, we believe the scheme will be predominantly reliant on car
access with less emphasis on public transportation. The design focuses on the car
parking as the primary shopping portal to the scheme. Pedestrian access to the
scheme will clearly be from the public transport points and we imagine that the bus /
shuttle bus stops will have direct access to the scheme.

The anchor stores and MSU’s are considered suitable to address the identified
demand. The main draw to the Center will inevitably be the food store and competition
in the immediate area is strong. A critical mass of 10,000m2 - 13,000m2 should be
competitive but pricing of product will be a key driver. Secondly, it is of fundamental
importance to differentiate the Center from the variety stores and comparison retailing
found in the strip malls of Cora, Auchan and the Buy – Way. Our reservations are that
the scheme will not work if the same retailers are attracted nor if the concept claims to
provide a one stop shopping forum. The TRIO Family Shopping Park needs to attract
lower to middle income consumers who represent the main catchment demographics
and source retailers who are not yet represented in the area with an increasing number
of inbound trading fascias entering the market. Nonetheless, it is important to
emphasize that the Center's location is advantageous in compares to the competition,
in regards to its visibility facing the M3, direct access from the M3 and the M0. With
these parameters, the competition is lacking at least with one parameter.

Servicing is provided for on the western and northern perimeter of the building with
smaller units having to be serviced at the front. Given the plans provided, the
circulation of service lorries around the scheme is peripheral and appears not to
handicap the customer shopping routes.

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According to our research across Hungary and together with actual retailers, the ideal
size of shop units tends to vary between 37 and 120 m2. This does not apply to
anchors and MSU retailers who will look to occupy much larger units.

There is an increasing interest from larger multiples to take bigger units but at lower
rental costs and in peripheral areas of the city. This can be clearly evidenced by the
take up in schemes such as Buy- Way and Stop & Shop. These development are
similar in that they are stand alone peripheral retail developments of between 9,000m2
and 12,000m2 GLA and have secured occupiers such as Mountex, Media Markt,
Intersport, Retz Furniture, Müller, C&A, Humanic, Office Depot, Jysk, Lira, Pannon
Furniture, Brendon Babyware and similar. In order to adequately comment on the
schemes design and content we have categorised the size of ‘Out of Town’ shop units
into different retailer types.

• Fashion: 150 to 700 m2

• Shoes & leather: 100 to 600 m2
• Jewellery: 60 to 80 m2
• Health & Beauty: 225 to 350 m2
• Sports/ Furniture: 1,500 to 2,500m2
• Gastronomy: 80 to 150 m2

It is not possible to be more precise than the above ranges as individual retailers have
their own preferences. However, it is our recommendation that a range of unit sizes for
each retailer type are provided for within the design of the centre in order that differing
requirements can be satisfied.

We will briefly comment on the following factors in respect of the proposed layout of the
shopping centre:

• Layout & units sizes

• Location for the Hypermarket facility
• Customer entrances
• Location of the food court
• Location of anchor tenants & MSU’s

4.1.1 Layout
In general it is fundamental to have a Power Center arranged over ground floor and in
one contiguous mass. The layout and shape of the scheme somewhat dictates the
placing of the anchors and the LSU’s. By having one contiguous mass and a central
promenade enables visitors to see all trading fascias in one go.
Anchors and LSU’s at either end of the scheme ensures an equal dilution of foot fall
and creates a natural gravitation from one end to the other. The choice and size of the
retail units will generally be determined by the early stages of marketing.

4.1.2 Location of the Hypermarket

Currently the hypermarket is located on the southern elevation which is arguably,
opposite to one of the best positions within the center. Clearly loading access is a
critical element to the function of the food store, this appears to have been well
considered. It is highly likely that customers will seek to trolley through the hypermarket
purchases so though should be given to the placing of trolley parks and the subsequent
collection of these to avoid disruption. We believe food purchase is one of the key
drivers for retail visits.

4.1.3 Location of the DIY

The proposal suggests that the DIY store will be anchoring one end of the mall having
its own entrance. The store would be arranged over ground and first floor therefore

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maximizing the GLA vertically. It is not clear at this stage if the first floor gallery will be
directly accessing the DIY store.

4.1.4 Customer entrances

The existing layout of the scheme proposes entrances to the centre's units at the front
directly from the car parking to each unit. The food court, located in the middle of the
scheme will provide an enticing entrance.

As a general rule, customers should be given a variety of options to access the Power
center given their specific needs (food purchases or non food), we consider that the
proposed entrances provides the flow of customers throughout the scheme.

4.1.5 Location of the food court

In terms of the current layout of the proposed scheme the food court tenants are
situated in the center on the ground floor of the scheme. KFC has secured a stand
alone unit in the middle of the project fronting the car park. According to our research,
food court operators much prefer to be around the central gathering point of a scheme
or at the entrance to the Hypermarket as they benefit from the visits of their customers
who can reflect on their subsequent purchases. The design of the center allows the
food court to operate in conjunction with the rest of the scheme. We would state that
careful management of food smells will need to be monitored so as not to infiltrate the
site.

4.1.6 Location of anchor tenants

The location of anchor tenants in the centre is positioned at either ends of the scheme.
The scheme has been so designed that from any point in the site the shopper has an
uninterrupted view of all the trading fascias present in the scheme. The anchors are
further supported by MSU’s. At present it is too early to comment on the merchandising
mix although we can assume that the positioning of these stores is to draw customers
into the centre and assist with there so called ‘inline movement’.

4.2 STANDARD FINISHES

We have not been provided with any architect’s specifications for the finishes of the
power center at this stage as the final design plans and specification are not yet
prepared. Notwithstanding this, our discussions reveal that the finishes will generally
be of composite stone, which has good insulation and traffic resistant qualities, both of
which are important for the sustainability of the scheme.

The quality of materials used in the project and the provision of separate service
corridors will reduce the anticipated capital expenditure on replacing finishes. It is usual
practice, to provide quality-flooring materials in the retail sites used by the public.
Trolleying heavy loads across mall flooring in order to service unit shops will increase
wear and tear on flooring materials resulting in an inevitable shorter life span. However,
this is not applicable in the site, as the service is at the back of the units and as the
scheme of the site does not include inner corridors. It appears from the plans provided
that the units are accessed separately for each unit thus they can be serviced during
trading hours without disrupting pedestrian flow.

The developer intends to deliver the retail units as a cold shell, sewage, sprinkler,
electricity, air conditioning and telecoms conduits will be provided for the tenants to plug
directly into.

The roof specification will be strong enough to support the landscaping and roof garden
structure.

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4.3 PHOTOGRAPHS

Architect’s visualisations of the property are attached at Appendix 3.

4.4 SUMMARY

The site is subject to a proposal to develop a modern "dumbbell" shape scheme, Strip
Mall, which will be one of the first in Budapest and parallels a growing market segment
which currently remains virtually untapped. The success of Market Central Ferihegy
demonstrates the success and profile of this retail category. It will be arranged over
ground floor extending to a 48,055m2 GLA in 2 phases plus 9,731m2 GLA in the first
floor. The center will be supported by surface car parking to the eastern elevation.

We understand that the project is currently at final planning stage with no planning
granted Building permit but is expected to be awarded during Q4 2008.

5 ACCOMODATION

5.1 FLOOR AREAS

We have been provided with final floor plans for TRIO Family Shopping Park. The
schedule of areas below are based on that information provided and may be subject to
change as a result of the final building permit. We would normally make a measured
survey of the plans in accordance with the latest addition of the RICS Code of
Measuring Practice 5th Edition. In the light of no formal information we have based our
assessment on confirmation from the schemes architects - Casiopea who have
provided the Gross Internal Floor Areas to be as follows:

We have relied upon the floor areas provided to us as being correct and calculated in
line with normal market practice (which varies from the 6th Edition of the RICS Code of
Measuring Practice).

We have derived the following areas for other parts of the building:
Phase I:

Description (no. of units) m2

Hypermarket (1) 14,925
DIY 10,064
Non fashion LSU’s (4) 5,447
fashion LSU’s (2) 4,179
Unit Shops
100m2 – 250m2 (24) 2,544
250m2 – 500m2 (13) 3,754
Food Court (10) 488
st
Entertainment (1 floor) (3) 4,275
TOTAL * (excl parking & CA) 45,676

Phase II:

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Description (no. of units) m2

MSU’s (4) 5,000
Unit Shops
Less than 100m2 (14) 500
100m2 – 250m2 (2) 1,110
250m2 – 500m2 (8) 2,500
500m2 – 850m2 (4) 3,000
TOTAL * (excl parking & CA) 12,110
CA – Common Area

5.2 SITE AREA

Our understanding of the site boundaries are shown on the Cadastral Plan attached at
Appendix 4. The site extends to a total of 146,920 m2. The property is made up of plot
register No. 98113/16 and 98113/17 totalling 106,002m2 and plot register No. 98109/58
totalling 40,918m2.
This total area is post expropriation agreed with the owner, of 8,920m2, for the purpose
of upgrading the adjacent roads network.

The topography of the site is generally level and is regular is shape but generally
adopts the shape of a rectangle. The narrower part being to the north is close to the
access junction. The site approximately measures 715m along its east west axis, 200m
along its northern border and 225m along its southern border. Access and egress from
the site will be via the new road.

6 SERVICES

We understand that all mains services are available to the property including telecoms,
electricity, gas and water.

Sewage infrastructure to the all area has been planned and approved by the authorities
but still has not been developed. All the property owners are to contribute to the cost.
This cost has been included in the valuation.

A new traffic solution has been developed in co-operation with Alami Autopálya Rt
(State Motorways Authorities) and approved initially by the high way authorities. The
solution will provide a tunnel leading from the north bound carriageway of the M3
motorway, and will lead directly to the parking area of the project. It will be part of the
development and its estimated cost has been included in the valuation.

The design will be based on Hungarian OTÉK Standards. All works will be carried out
in accordance with relevant local standards and codes of practice and in accordance
with local regulations.

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7 CONDITION

7.1 GENERAL CONDITIONS

On the date of the inspection the construction works have not yet begun. The site has
been fenced off. Pictures of the site are contained in Appendix 2.

7.2 DELETERIOUS MATERIALS

We understand that no deleterious materials will be used in the construction of the

property in accordance to the relevant regulations.

8 STATUTORY ENQUIRIES

8.1 TOWN PLANNING

The property lies within the jurisdiction of the XV th District Planning Department, sub
district (Rákospalota) whose planning policies are contained within the Budapest City
Masterplan, which was adopted in May 2002. We understand that the plan period will
run from 2002 to 2008.

According to the Masterplan, the site is currently zoned for mixed use and would
appear to comply with the proposed retail project. The site can be developed up to
25% which allows a maximum built foot print of 41,000m2. Foot print cannot exceed
35% of the land size, with total building rights at a multiplier of 2.1. The maximum built
height to the eaves is 10m with a maximum finished height of 12m. The internal floor
height (slab to slab) on the ground floor is 7.5m.

We understand that a zoning permit application was submitted which took the land out
of recreational zoning, albeit the cadastral plans still state the site as recreational. The
reader should be made aware that not formal planning application has been submitted
and the valuation is based on the assumption that a scheme mirroring that indicated in
this report will be applied for and permitted.

Furthermore, the valuation assumes that all necessary building and planning consents
are forthcoming and there is minimal risk in this not being obtained. If it transpires that
the building permit will not be issued then the valuation does not hold and the value is
likely to be less than the residual site value.

The property is not within a conservation area. We would however recommend that
your advisors check this issue in further detail.
The new road infrastructure works are likely to be a condition of the planning permit and
these will need to be undertaken prior to the actual property construction works taking
place. There is some inherent risk in this approach. The up side is that the property
will eventually have direct access to an adopted highway. We are aware that the
developer is in the process of approving the traffic solution.

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9 ENVIRONMENTAL CONSIDERATIONS

9.1 CONTAMINATION

We have not undertaken or commissioned an environmental assessment to establish

whether contamination exists or may exist, nor are we aware of any such assessment
having been prepared by a specialist adviser in respect of the subject property and its
environs. We have not undertaken any detailed investigations into past and present
uses of the subject property or of any adjoining property.

During the course of our inspection of the property and its immediate vicinity for
valuation purposes and our usual subsequent enquires, the possibility that the subject
property may be contaminated has been considered by complying with the various
requirements of the Royal Institution of Chartered Surveyors. In particular, we have
had regard to the contents of the Appraisal and Valuation Manual and the separate
Guidance Note, Contamination and its implications for the Chartered Surveyors, and
the Property Observation Checklist for identifying apparent potential for the
contamination included herein.

We did not observe evidence of potential and actual contamination on the property that
we consider could be likely to affect our valuation [or state any potential hazards eg:
landfill, knotweed, dumping, asbestos etc]

Our subsequent enquiries have not revealed any evidence that there is a significant risk
of contamination affecting the subject property or neighbouring properties that would
affect our valuation at this stage.

Therefore, for the purposes of this Valuation Report, we have assumed that no
contamination exists in relation to the property sufficient to affect value. However, we
would stress that should this assumption prove to be incorrect the values reported
herein might be reduced.

9.2 FLOOD RISK

We understand that there is no history of flooding at this site and that it is not located in
a flood plain or flood risk area. Accordingly, we have not made any adjustment to our
valuation in respect of flood risk.

10 TAXATION

10.1 VAT

We understand that the property will be leased on formal lease agreements to tenants
in order that the receivable VAT can be off set against the VAT incurred in the
construction programme.

If this is the case, VAT issues should not adversely affect the value of the property and
therefore we have not made adjustment to our valuation in this regard.

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10.2 TRANSFER TAX (STAMP OUT)

We understand that the property is established within a special purpose vehicle where
transfer tax may be payable at a lower rate than normal property transactions.
Although this may provide a greater realisation in the onward sale of the property we
have specifically not reflected this in our valuation.

11 TENURE

The Cadastral Office in Budapest registers key information related to properties listed in
the Cadastral Extract (“Title Deeds”) from the public Cadastral Register. The extract
from the Cadastral Register notes the owner of the property, as well as most third party
rights which may encumber the property, i.e., easements, mortgages or pre-emptive
rights.
Under Hungarian law, data contained in the Cadastral Register are presumed to be
correct, but such presumption can be disproved by evidence to the contrary.

We have been provide with a copy of the cadastral extracts which are both dated 26th
September 2008 and state that the ownership of the land plots below are owned
freehold by Present BBT Ingatlanforgalmazo Ltd,. We summarise the cadastral
extracts below:

Title no. 98113/16, 98113/17 & 98109/58

Cadastre extracts dated: 26.09.2008
Cadastre area: 33 Budapest XV Ker
Owner: PRESENT BBT INGATLANFORGALMAZO KFT.
Land Plot Area (m2) Type of land Use Protection
number
98113/16 51,745 Inner Zoned None
98113/17 54,257 Inner Zoned None
98109/58 40,918 Inner Zoned None

Total land 146,920m2

Ownership InvestKredit Bank have a registered mortgage amounting to 13,44m

limitations
Euros on the plot Ref No. 98109/58, 98113/16 and 98113/17 Together
with a right of purchase dated 07.09.2007.

The City Gas Authority has an excavation right across 1,544m2 and
2,736m2 ref No. 64414/3/2008/07/12 and 49362/2/2008/07/12.

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This total area is post expropriation agreed with the owner, of 8,920m2, for the purpose
of upgrading the adjacent roads network.

For the purposes of the valuation we have assumed that there are no encumbrances or
unduly onerous or unusual easements, restrictions, outgoings or conditions that are
likely to have an adverse effect on the value of the property and we have assumed that
there is a good marketable title.

If our assumptions on title are not correct then our valuation may be adversely affected.

12 TENANCIES
The property is not subject to any tenancies at present.

13 NARROWED MARKET SEGMENT REVIEW

13.1 DISTRICT REVIEW

The proposed project referred to as TRIO Family Shopping Park is located in the
northern part of Budapest. We have already commented earlier in the report on the
surrounding area and the existing commercial developments thereto.

13.2 DEMOGRAPHIC AND CUSTOMER PROFILE

The population of Budapest is 2,014,000 inhabitants of which District XV has 90,000.

The population is split 49.26% male and 50.07% female. The pre-working population
(i.e. under 18 years old) accounts for 15% of the population, working population is 64 %
and the post working population is 23%.

Zone Residential Population Number of Population of

Population of XV Households Catchment Area
(%) (%)
1 km 12,300 13 3,843 5%
2.5 km 71,000 78 22,187 28.9%
5 km 212,000 210 50,625 66 %

Total 295,300 89,655 100

Source: KSH (Figures provided in 2005)

XV District Population in ages in 2005:

0-14 10,414
15-49 44,615
50-59 13,477
60< 21,435

Age distribution per cent (%) XVth District

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0-14 11.5
15-49 49.6
50-59 14.9
60< 23.8

It is anticipated that, as job opportunities in cities increase and, conversely, those in

rural areas decrease, the present levels of urban migration will continue. Labour
mobility is constrained by the lack of housing in the cities, and benefits retained by
protected housing rules. However, as incomes rise with the rapid growth of the
economy and the introduction of mortgage funding, more Hungarian people will be able
to afford their own homes and expenditure on DIY and household goods is likely to
increase.

The number of cars in Budapest is increasing daily and currently reflects 408,000
private vehicles. That suggests 1 car in every 1.7 people over the driving age. Our
conversations with Budapest Transport Department representatives reveal that the
figures of car ownership are in constant increase. Any new retail development should
cater for the need to provide for the car borne consumer. With increase in mobility, car
parking access and convenience will become increasingly important to shopping
behaviour patterns. Information available from KSH indicates that average gross
annual wages in as of the end of the second quarter of 2007 of Eur 10,676 in Budapest.

Data available for the average monthly per capita expenditure by household (derived
from a family expenditure survey in Budapest undertaken by the Kozponti Statistical
Hivatal (KSH) and independent analysts GFK) suggest that the household expenditure
is Eur 10,926 per annum (p.a.). The expenditure data is limited to broad sectors and it
is difficult to identify retail expenditure in particular segments as opposed to expenditure
on education, holidays or health. The survey indicates that the bulk of household
expenditure being on food at 31% (excluding alcoholic and tobacco products) with 28%
being spent on housing and utilities, 11% on transportation, 12.6% on clothing and
shoes etc.

Recent research by the Domestic Market Research Institute showed that the majority of
customers shop near their place of residence or work. There is a preference to visit
large stores where factors of convenience, choice, ease of car parking, time saving and
discount value apply. Some shops are positioned under the same retail area with
supermarket chains such as Cora, Tesco and Auchan. This indicates that such
shopping behavioural patterns are convenience based and primarily relating to fresh
food purchasing and weekly shopping. There is a clear migration towards shopping
after work or at weekends.

OVERVIEW
After a rapid growth in the retail market over the past 7 years and the delivery of
approximatley 540,000m2 of modern shopping center space in Budapest alone there
are signs that the retail market is reaching saturation and in some cases the signs of
market saturation are self evident such as GL Outlet, Csepel Plaza and Recsei Center
which are all struggling. The improving economy of the country as a whole had a direct
impact on increasing interest in retail space from both customers and retailers. On the
other hand the turnover in retail trade and restaurant business in 2007 and first quarter
of 2008 declined, and despite of the fact that now there are some promising signs for
recovery, the turning point is still not at all clear. Even the value index of food retail
declined by circa 2.6% in the last quarter, which indicates the people are preferring
discounters and hypermarkets. (Price over quality.)

Retail spending in Hungary is expected to decline in 2008 by up to 12% in the non food
sector and by circa 4,2% in the food sector as a result of increased taxes introduced as

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part of the convergence/ austerity package. Total retail spending during the first half of
2008 decreased by 6.8% over 2007. In spite of the fact that everyone expected a
downturn, few were prepared for it and landlords or retail properties are just about to
feel the consequences. Rumour has it that many of the tenants in Arena Plaza have
been given up to 6 months rent free to continue trading whilst other are asking for 20 to
30% reduction in rent.

The retail market may be broadly divided into three major segments: shops in the
central part of the city on high streets, super/hypermarkets and shopping centres. In
terms of shopping centres, they have existed on the market for the past 10 years, and
development first concentrated exclusively to the bigger cities of Hungary. Today there
are two or three shopping centers in secondary cities. Hypermarkets have seen the
most impressive growth with over 104 existing hypermarkets in Hungary. Much of this
expansion has been by Tesco and Auchan followed by Interspar. Other retail concepts
have also evolved such as the Family Center, Stop Shop and The Park. Also since
2004, four outlet centers were opened, 3 of those in the Budapest region and the most
recent one in Polgár on the M3 motorway.

International grocery chains and discounters are also spreading in Hungary – the
notiable groups are Aldi and Lidl who have embarked on an aggressive acquisition of
sites for convenience and neighbourhood retail stores.

The Park which is a similar concept to Stop and Shop has opened retail schemes in 6
country side cities with a further 6 cities under development. These schemes offer
approximately 6,000m2 GLA and are arranged over ground floor only with surface car
parking. The developments are anchored by a Lidl or an Aldi as a food store and are
complimented by a number of comparison goods retailers such as C&A, Intersport,
Deichmann, Leonardo, Libri or Alexander and DM or Muller.

During 2007 and early 2008 there were 3 Stop and Shop Malls which opened these
were in Miskolc comprising 8,000m2, another in Bekéscsaba of 3,700m2 and the other
in Debrecen totalling 9,700m2. Meanwhile, the family center chain expanded with 3
units in Baja, Hódméz vasarhely and Sopron each offering 10 to 12,000m2 GLA.

The retail pipeline for the next two years in Budapest comprises some significant
projects however there are also some substantial projects in the countryside which
together could constitute some 470,000m2 GLA of new space, of this 65% will be in the
provincies. The major schemes in Budapest include the KÖKI Terminal located en
route to Ferihegy airport and Köbanya Kispest, this will provide 65,000m2 GLA of
modern retail and will be anchored by an OBI, Tesco, Electro World and have a
provision of 180 unit shops. Another significant delievery will be the second phase of
Arkad in Budapest XIV offering approximately 16,000m2 and the completion of ING’s
Buda Skala retail department store and shopping center on Fehervári út.

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Major cities will also see some large developments, namely in Miskolc the 65,000m2
Market Central will be delivered and ECE is likely to complete the Forum development
in Debrecen which will offer 28,000m2. Also according to information received
Magnum Hungaria will introduce a new Eurocenter chain in Kecskemet,
Székesfehervár and Veszprem by 2009 each offering 22 – 25,000m2 retail space at the
same time that will be continuing the roll out of a further 9 Family Centers up to 2011.

13.3 MARKET CONDITIONS

Although rental levels across all sectors remained stable in the last quarter, high street
rents in Budapest have increased on an annual basis. Yields have fallen in all sub-
sectors, continuing the downward trend from last quarter. Retail sales in 2007 in the
food sector showed a marginal increase of 2.9%, compared to 2006, although this is a
slower rate than two years ago. There is an overall drop in retail sales during the first
half of 2008.

Occupier demand remains strong. The prime retail locations within Budapest are still
Váci utca Pedestrian Street and the shopping malls of Duna Plaza, Westend City
Center, Mammut Shopping Center and Árkád Center. Demand from foreign retailers is
still strong in these locations, although there is an increasing interest for other major city
centre locations.

Power centres, or smaller retail strip malls, and retail parks are an increasing focus for
developers. New schemes are underway in both Budapest and other major cities. New
plans for major shopping centres in Budapest are also expected, although it is not
certain how many will be completed. Concentration in the Hungarian market is
continuing, with an increasing number of hypermarkets which brought the total number
to 108 by the end of 2007.

Foreign investor interest is continuing and although there were few transaction deals to
report in the third quarter, yields are showing a continuing downward trend. The prime
shopping centre yield fell to a record low of 5.45% in Q1 2008 following the purchase of
Campona by ING.

Going forward, the retail property market is expected to remain relatively stable.
Steady, moderate rental growth is anticipated for the best shopping centre and high
street locations. Investor interest is continuing, but whilst further yield falls are
expected, the pace of decline is likely to slow. Purchase offers nowadays are at the
level of 6.5% - 7% cap rates and are continuing to move out.

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PRIME RETAIL RENTS IN HUNGARY

Location RENT Eur/m2 % Growth Compounded

m2/month m2/year 5 years 1 year Trend

Vaci utca 100 1200 4.8 14 Rising
West End 80 960 4 3.2 Rising
MC Ferihegy 12.8 153 4.5 2.5 Rising
Debrecen 26 312 -1.8 0 Flat
Gyor 25 300 3 1.2 Stable

PRIME RETAIL YIELDS IN HUNGARY

Location Yield % Gross Last 5 years

Current Last Year Low High Trend

Vaci utca 6.85 6,5 6.5 10 stable
Arena Plaza 6.5 6 - - falling
Szekesfehervar 8,5 7,5 7,5 12 falling
Gyor 8,5 7.5 7,5 1.2 falling

13.4 COMPETING SCHEMES

We refer you to our retail market overview attached in Appendix 5, which we consider
relevant to the subject property. The main competition will be felt from Polus Center,
Cora, Auchan, Buy Way and potentially ECE Árkád. The latter is planning a 15,000m2
extension which will create a very dominant shopping center in the XIV th District. The
current average passing rents in Market Central Ferihegy, at the entrance to Budapest
airport, at the south-east part of the city, are at 12.8 Eur/m2/month which closely
corresponds with the expected average target for TRIO Family Shopping Park, which is
11.7 Eur/m2/month.

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14 VALUATION

14.1 VALUATION ASSUMPTIONS

In our development appraisal, we have proceeded as follows: The TRIO Family

Shopping Park proposal extends to some 57,786 m2 gross leasable area in two
phases. The currently planned scheme incorporates a balanced blend of merchandise
and services. The success of the occupational element of the scheme will hinge on
being able to secure new and interesting trading facias and the creation of a critical
mass with sufficient variety and weight to pull customers to it.

After taking into consideration our market research as well as analysis of the existing
schemes throughout Budapest, approximately 40% of all the shop units are occupied
by fashion type retailers such as services, clothing, shoes, accessories and leather
goods. Given the above suggested size of the scheme it should be considered that one
supermarket and up to five - seven MSU’s in both phases could be supported
principally in the fashion, bulk goods (furniture) and sport goods sector.

We have valued the property assuming the construction of a fully let modern Retail
Park based upon a discounted cash flow.

We have based the areas on the assessment of the plans inspected and categorised
these areas in to Anchors, MSU’s, Unit shops and Food court. We have then applied a
market rental value for each sub category in order to arrive at a total estimated average
rent of €12.3/m2/mth for the ground floor, € 9.7/m2/mth for the first floor and €
14/m2/mth for phase 2.

We have not placed any rental value on the parking spaces as the scheme is peripheral
and we foresee only visitors to the development using the parking.

For phase I we have assumed that rental prices begin at Eur 8 /m2 for the
hypermarket, Eur 9-10/m2 for the Anchors, Eur 13-16/m2 for the MSU’s, unit shops will
range between Eur 22/m2 to Eur 32/m2. The estimated annual income at Eur
6,420,000 reflecting an average rent of Eur 11.7 to 12 /m2/month.

For phase II we have assumed that rental prices are at Eur 14 /m2. The estimated
annual income at Eur 2,035,000 reflecting an average rent of Eur 14 /m2/month.
We have made adjustments to reflect capital expenditure on the center in year 5 and
year 8 for repairs and replacements up to the sum of 0.5m Eur.

Using a Discounted Cash Flow (DCF) approach with a discount rate of 8.50% and a
growth rate of 1.8% pa, we have discounted the future annual rental revenues back to
their present value in line with the cash-flow assumptions based above. Although CPI
indexation is generally adopted on rents, we have taken the approach that institutional
purchasers would expect to see growth in rents, albeit this could also be fixed stepped
increments. We have reduced the first year’s rental income to allow for rent free
periods, fitting out contributions and vacancies. We have made further deductions in
year 6 and year 8 where some of the leases will come up for renewal. We have
therefore allowed for a renegotiation on the passing rent, some rent free periods and
potential vacancy. Throughout the DCF we have assumed that there will be an
average of 5% - 7% vacancy across the scheme and we have allowed for this in our
DCF.
We have capitalised the reversionary income of both phase 1 and 2 at an all risks yield
of 7,75% and arrived at a market capital value of Eur 74.73 m for Phase 1. On the
basis of a simple capitalisation approach we have also applied a yield of 8.00% to the

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

second year passing income and arrived at a capital value of Eur 69.4m. The basis of
our yield is derived from similar investment transactions of retail schemes which we
have outlined on the following page.

The combined average of the DCF and direct capitalisation approach has resulted in a
capital value of the completed Phase 1 scheme of Eur 72.1 m and for both Phase 1 and
Phase 2 is 92,26m Euros.

The investment yield reflects a rate commonly utilised by institutional investors as a

required return rather than a specific market-pricing requirement. The estimated total
project cost (without land) is Eur 55.5 million thus reflecting an all cash IRR of 16.6% (a
detailed calculation is provided in the cash flow analysis provided in Appendix 4). We
therefore consider it is certainly capable of being viable and producing a leveraged
profit on capital cost employed of 29.90% based on an LTC of 70%. Our financial
analysis demonstrates a breakeven point is achieved with occupancy of about 52,3% in
order to service the debt repayment.

We have made a second valuation of the land plot based upon the project parameters
and budget for development of the project. The theoretical basis of this method is that
the expected sales proceeds or the rentals from the project are capitalised at the
project yield rate to arrive at the total capital value for the specific project. In arriving at
this value, we calculate the rent resulting from the Direct Capitalisation method in order
to arrive at the total capital value, or in the case of sales we adopt market pricing. From
this figure one deducts the total gross development costs, which is a combination of
hard and soft costs. Hard costs are considered as construction materials, site clearance
and demolition whilst soft costs are defined as planning fees, architects, project
management, mechanical and electrical engineering, marketing and agency
contingency costs and cost of finance. A further amount is deducted for the developer’s
profit (the risk reward accrued to the developer for undertaking the project). The
resultant figure represents the residual value/profit.

The residual profit is the amount the developer has for the land purchase (which
includes also the cost of purchase: agents and legal fees, stamp duty and cost of the
land finance.)
Construction costs – We have assumed a construction cost 550 Eur/m2 for phase I and
578 Eur/m2 for phase II, for the subject property based on the gross external area. For
surface parking we have allocated €10/m2-€11/m2. On and off-site infrastructure has
been budgeted at €30/m2 and €10/m2 respectively. All hard costs are inflated by 5%
hard cost inflation across the phases.
For the expropriated land to be developed to roads (8,920m2), cost contributed by the
owner we have assumed at cost of 40 Eur/m2.
Professional fees – We have assumed a total of 8% for professional fees for architects,
quantity surveyors, engineers, project management, etc.

Marketing – We have assumed a total of 2.1% for the total costs related to marketing of
the project and total agent’s fees based on the sale of the completed development

Legal and administration fees – e.g. Planning and building regulation costs at 2.5% of
total build costs.

Project Contingency – We have assumed a contingency on the entire project at 5.0% of

hard costs, technical services and marketing

Financing - Interest charges during the construction period assuming development

finance at 7.0% over a construction period of 15 months for Phase 1 and an extra 12
months for Phase 2. We have included lender’s arrangement and supervision fees.

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

Developer’s profit – As this project is entirely speculative we have assumed a

developer’s profit at 20% based upon as built costs, reflecting a reasonable return for
the risk.

Land Purchase – the resultant residual value suggest that the developer could afford to
pay up to Eur 22.5m for the site based upon the project parameters.

14.1.1 Choice of Discount Rate

The discount rate used in DCF analysis is not the same as a yield as commonly
referred to in real estate transactions. A yield reflects an all risks single figure to capture
all aspects of the future performance of an investment and is growth implicit. A discount
rate is growth explicit with these factors dealt with explicitly elsewhere in the cash flow;
indexation, voids and exit capitalisation rates.

The appropriate discount rate for any given investment is dependant on many factors.
The discount rate must reflect the underlying real estate characteristics of the
investment, the risk free rate of return, the risk profile of the individual investment, the
future income profile of the investment, cost of capital, cost of debt, investor’s corporate
structure, gearing ratio, target hurdle rate etc. What is immediately obvious is that these
factors are specific to individual parties and, considering the countless interactions
between the factors in the mind of any one investor, it is almost impossible to exactly
pin down one rate for all.

What is of paramount importance in estimating the appropriate discount rate for

valuation purposes is that this must reflect market value and therefore a market rate
must be applied. We have evidence of numerous market transactions in all asset
classes to base our discount rate.

Office transaction have occurred between 6.25% and 6.85% during 2007, whilst prime
retail yields are at 6.0 % and prime logistics yields are between 6.75% and 7%. Our
applied discount rate is usually between 100 – 140 bp above the all risks yield paid for
such an income producing asset. Given that the project possesses risk since it has not
secured tenants nor a final permit we have applied 250bp above prime retail yields.

We as the valuer’s must apply our own understanding of the market to build up a
picture of the “typical investor“ for the subject investments valued. We have had to
consider the typical buyer and not any specific one for a particular product since not all
investors are willing to apply the same value to an asset. This problem is amplified in a
rising market where suitable product is scarce and too much money is chasing too little
product. The very fact that an investor has been successful in securing a deal almost
automatically means they have agreed a price that would be considered above market
value. This is particularly true in the case of Central European Markets where the
subject properties have been valued.

For straight investment product it easier to estimate suitable discount rates for valuation
purposes as the attitudes of investors and lending banks to the inherent risks are well
known. The markets in which the products we are valuing, in general, have converged
such that numerous investors are of the same mind when it comes to specific
transaction profiles and the valuer can be confident in his opinion of the typical market
purchaser. In this case we have generally adopted discount rates of between 7.5 –
8.5% depending on the type of property. In respect of the appraised property we have
taken a discount rate of 8.50% to reflect the developed nature of the scheme. For
development property the investor profile is spread over a wider range and investors
previously averse to development risk are beginning to enter this market. Their return
expectations are obviously greater than before but may be less than developers who
have traditionally operated in this sector. At present the discount rate for development
income is predominantly influenced by the attitudes and expectations of the developers
as they remain the most active. Since development projects expose the investor to a

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

greater level of risk we have reflected this in our appraisals by choosing rates between
9 % - 10% on the residual approach for Phase 1 and 2 respectively.

To reach an appropriate discount rate where there is a wider range of investors active,
the attitude of the investor is most important.

Ultimately there must be a personal level of comfort above and beyond the bare
numbers. The effects of this are plain to see in emerging markets where country risk,
itself hard to quantify, has such an impact. Two projects, fundamentally the same in
countries of seemingly similar risk on paper, will see investors applying different
discount rates for no better reason than that they are familiar with one country and have
perceived a greater level of comfort from this. This snowballs into a herd mentality on
the basis that if one person has made this decision and they are of a similar profile then
the developer too must be entering this market. The current position of the Romanian,
Bulgarian and Serbian markets can be viewed in this way.

Parameters employed for the DCF calculation:

Type of Parameter Parameter Explanation

Estimation of Retail Ground 5,284,000 Eur

Income (Excl VAT) once First 1,138,000 Eur
fully let. Second Phase 2,034,000 Eur

Discount Rate. We have Given that both phases are likely to reflect the
adopted 8.50% similar amount of development risk we have
for Phase 1 and chosen to reflect the letting risk on the Present
2 and a PV Value factor adopting 9% for Phase 1 and 10% for
factor of 9% for Phase 2.
P1 and 10% for
P2 on costs
Leasing Voids Up to 6 months Where vacancy occurs in the scheme at the date
void of valuation we have assumed the first 6 months
will remain unlet and thereafter let at ERV. We
have assumed releasing voids in year 5 of 4
months and releasing voids in year 8 of 3 months
on the MSU’s. We have conservatively assumed
a 50% occupancy during the first year of trading.
We have also allowed for approximately 500,000
Euros for non recoverable operating costs.
Reversionary Cap Rate We have adopted an increase of approximately
25bp over the ARY to capitalise the reversionary
income at the end of the cash flow.
Indexation Harmonised We have adopted the EU 15 HICP in order to
Consumer grow the rents over the cash flow. Although the
Retail Price past 3 years have demonstrated approximately
Index 2% we have taken the 10 year average at 2% pa.
The percentage is considered appropriate to local
market experience.
Capitalisation Yields Yield on Term We have adopted a 8.00% ARY on the passing
income of the ground floor since this represents
the most secure income. We have placed an
ARY at 200bp above prime retail yields to reflect
the nature and initial risk of the development.
We have applied a more aggressive reversionary
yield on the core retail income at 7,75% to reflect
attraction of the location and its future
sustainability in respect of incomes.

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PRESENT BBT INGATLANFORGALMAZÓ KFT
TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

14.2 MARKET VALUE

Market Value assuming sale of completed development of both Phase 1 and Phase 2:

Based on the facts and assumptions contained within this Valuation Report the Gross
Development Value of Phase 1 scheme as at 30th September 2008 is in the region of :

Eur 72,099,000 (Seventy Two Million and Ninety-Nine Thousand Euros). The reported
value is exclusive of VAT.

The Gross Development Value of Phase 2 scheme as at 30th September 2008 is in the
region of :

Eur 20,158,000 (Twenty Million, One Hundred and Fifty Eight Thousand Euros). The
reported value is exclusive of VAT.

SENSITIVITY ANALYSIS:

We have run a sensitivity analysis for Gross Development Value

INCOME
-10% -5% 0% 5% 10%
-10% 87,730,000 91,870,000 96,010,000 100,150,000 104,290,000

-5% 85,990,000 90,050,000 94,100,000 98,160,000 102,220,000

Discount
0% 84,310,000 88,280,000 92,260,000 96,240,000 100,210,000
Rate
5% 82,680,000 86,580,000 90,470,000 94,370,000 98,270,000

10% 81,100,000 84,920,000 88,750,000 92,570,000 96,400,000

Residual Land Value:

INCOME
-10% -5% 0% 5% 10%
-10% 19,000,000 22,200,000 25,400,000 28,600,000 31,800,000

-5% 17,700,000 20,800,000 23,900,000 27,100,000 30,200,000

Discount
Rate 0% 16,400,000 19,400,000 22,500,000 25,600,000 28,600,000

5% 15,100,000 18,100,000 21,100,000 24,100,000 27,100,000

10% 13,900,000 16,900,000 19,800,000 22,800,000 25,700,000

Sales Comparison Approach

To determine the market value of the fee simple ownership interest in the property and land,
consideration was given to the sales comparison approach. In analysing the applicability of
the approach the pertinent characteristics of the subject property and sufficiency of available

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

data for use in connection with the approach was considered. A description of the
methodology is provided below.

In this approach a market value estimate is predicted on prices paid in actual market
transactions for similar properties with the unit sales prices of the comparables adjusted to the
characteristics of the subject property. The major premise of the sales comparison approach
is the market value of the property is directly related to the prices of comparable competitive
property. Based on the principle of substitution an informed purchaser will pay no more for a
property than the cost of acquiring an alternative property with the same utility.

The price paid is usually the result of an extensive shopping process in which the purchaser is
constantly comparing available alternatives. The key strength of this method is that it directly
reflects the actions of buyers and sellers in the marketplace.

The sales comparison approach is best suited for vacant land or properties that have a similar
and predictable income and expense structure or are purchased for use by an owner. It
provides the most reliable indication of value from sales of similar properties which are
available and the necessary adjustments are few in number and relatively minor. This
approach has been used to estimate the market value of the subject property. The
comparables identified are as follows:

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

PROPERTY PHOTO ACQUISITION AREA PRICE /

YIELD

The property was 56,415m2

Bogancs purchased by site area The site
utca/ Newland in June with an has
Regifóti út. 2007. additional recently
Budapest XV 37,000m2 been sold
The smaller plot for to the XV
was purchased for development Municipalit
92 Euros/m2. It . y for
has a developable Zoned MZ. €9.7mln.
footprint of 35%.

BauHaus The property was 60,500m2 Purchase

Site purchased by price was
Dunakeszi BauHaus in €106/m2
November 2006

Next to the site is

an Auchan,
Decathlon and
Electro World.

Northern The site was 172,000m2 Purchase

Gate purchased by price was
European €85/m2.
Commercial
Developments
Ltd. in 2007.

It is at the junction
of the M0 and M3
motorway next to
CORA.

Ing.com
5001971 The site is along The site is Asked
the M3 motorway, 20,014m2 price
in the XVth district (total):
of Budapest at the 700mln
edge of the city. HUF.

Zoned K-
BK1/XV/1, built-in:
25%, density 1.0,
green area 30%,

In order to reach the fair market value of the appraised land we need to make adjustments to
the unit prices of the comparables. These corrections account for differences in location,
technical parameters, visibility, sizes, asked price, as well as infrastructure development and
are presented below:

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PRESENT BBT INGATLANFORGALMAZÓ KFT
TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

Target C1 C2 C3 C4

Comment
Northern Ing.com
Source (Ingatlan.com, etc.) Gate Bogáncs 5001971 Bauhaus
Time 2007 June, 2007 2008 November, 2006
Size 146.920 172,000 93,415 20,014 60,500
Zoning I-XV com., ind., com., ind., K-BK1/XV/1 commercial
Location M3, M0 M3 M3 Dunakeszi,
Density 35% 25%
Coeff. o. Site Area 2.1 1
Max. Height (m)
Green Area
EUR EUR HUF HUF
Asked Price n.a. 14,700,000 9,700,000 700,000,000 1,500,400,000
Unit Price 85 104 34,976 106
Exchange Rate 233 1 1 233 1

Unit Price EUR 85 104 150 106

Correction factors:
Price (transaction/offer, time) 1.07 1.07 0.9 1.14
Location 1.05 1.1 1.05 1.1
Size 1 1.05 1.10 1.05
Access 1.25 1.1 1.05 1.05
Zoning Coefficients yes 1 1 1.15 1
Visibility 1 1.1 1 1

Concluded Unit Price 152.88 120 155 188 148

Market Value
EUR 22,460,582
(vacant possession)

2
Unitary Fair Market Value EUR/m 152.88

Based upon the above, we are of the opinion that the subject property would command a
vacant possession value of approximately 152.88 EUR/m2. This would suggest a market
value on comparison at €22,460,000.

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PRESENT BBT INGATLANFORGALMAZÓ KFT
TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

15 SWOT ANALYSIS

15.1 STRENGTH

Modern design and high specification Retail Park in a market, which is becoming
increasingly more and more interesting for institutional purchasers.
Still a new and undiscovered concept in Budapest which is becoming increasingly
more sophisticated in its retail offer and incurs lower developer's risk in the sense of
lower development costs in compares to shopping malls.
A counter weight to the Budaors Retail area in the south-western part of Budapest
Sufficient critical mass to be able to compete.
Good volume of surface car parking
Located in an increasingly developing area with excellent visibility
Located adjacent to two main highways in Budapest – M3 and M0 with very
intensive passing traffic especially in weekdays
Located approx. 10 min from city center
Good transport links – new access infrastructure approved for a direct access from
the M3 to the project's parking, via a underground tunnel.
A big site, which allows development in phases and blocking potential competition

15.2 WEAKNESSES

The location is off center and is reliant on becoming locally well known and requires
a higher emphasis on private transportation.
Significant established retail already in existence in the catchment
Spending power is still limited and will be spread over a larger retail floor area.

15.3 OPPORTUNITIES

Unique concept of roof garden for action and relaxation as well as a shopping and
family retail in one environment.
The size of the site allows the construction of a large scale retail premises with
sufficient car parking, which allows development in phases with sufficient critical
mass, blocking potential competition
The site is a undeveloped which minimises the development cost
Circa 450m frontage to M3 motorway
Spending power is still limited and will increase with the new residential
development projects planned for the area. This will enchance the spend
sustainability of the scheme.

15.4 THREATS

Possible future competition over time from other developments, and developers
causing pressure on rents.
Economic country risk
Planning risks to contend with. (New access road, motorway extension.) Final
planning approvals not yet been obtained for current project (preliminary approvals
have).

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

16 CONCLUSION

16.1 KEY ISSUES

The property comprises a speculative retail development in a developing commercial

and residential location. The market is currently relatively untested in terms of this type
of Power Center development and as such involves a certain amount of inherent
development risk. It will be critical to implement a good design and secure retailers
which not only create a draw and therefore differentiate the scheme from its
competitors but also meet the needs of the catchment.

Our assessment of gross development value has been assessed in the light of current
market evidence and makes no allowance for changes in value over time except for
rental indexation.

The completed development is likely to target a middle income Budapest residents. It

has a greater chance of success if it can become a shopping destination and therefore
should not solely concentrate on food shopping as the principal attraction.

Retail schemes such as the TRIO Family Shopping Park and becoming increasingly
sought after by institutional investors and as such if appropriately designed and let will
attract a gaggle of institutional investors.

Our valuation is based on the successful permitting of the land plots and the successful
leasing of the scheme based upon the rental value estimates contained here in.
Notwithstanding, we have checked the residual land value in accordance with market
value.

17 PROJECT ANALYSIS

17.1 SCOPE REVIEW

It is recognised that the site is of sufficient size and orientation to accommodate the
proposed development.

We are satisfied that the scheme appears to have the prospect of a sufficient return at
the required levels to proceed subject to detailed analysis of costs and development
expenses.

The work necessary to secure the anchor pre-lettings and international MSU’s should
continue as this is crucial for a new project entering an already well developed market

Satisfactory pre-letting agreements to the anchor stores and MSU’s would also provide
the final design input required and the permitting drawings can be completed.

We recommend that the design continues to respond to the principal operator

requirements. Architects and cost consultants should be approached at all stages.

Letting agent input should be forthcoming as soon as possible.

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

17.2 PRICE REVIEW

We have analysed the rents being paid in the market and compared these to rents
being proposed in the surrounding developments such as Polus Center, Cora Foti,
Auchan and Buy Way. The rents proposed are inline with the market and within reach
of retailer occupier expectations. Independent discussions with fashion and
comparison goods retailers suggest according to their expectations possible sales turn
over of 1,200 Euros/m2/month on trading area may be achievable.

We have discussed our rental values with Present BBT’s team at a local level and
consider these to be sustainable and equally affordable for inbound retailers. Whilst we
have based our assessment on fixed rental values, Present BBT would be willing to
base a rent as a fixed rental values or percentage of retail turnovers, the higher of the
two.

17.3 COST REVIEW

We have not been able to fully verify the development costs as the design plans are not
final. The costs outlined in our residual appraisal are in line with market figures and we
have cross checked these with our Construction cost consultant. Our assessment of
utility infrastructure is based upon an educated review.

17.4 SCHEDULE REVIEW

The project construction schedule is estimated at 18 months, which appears to be

realistic for such a scheme. Construction delays may arise due to design changes, poor
weather or failure to build the project in accordance with the permitted plans.

17.5 PLANNING REVIEW

As the site only has one neighbour (Shell) there is limited risk of contesting the
planning. The principle risk to planning is implementing the bridge and road access, or
any other approved traffic solution, which we imagine will be a condition precedent to
securing the building permit.

17.6 LAND RISK AND PROJECT RISK REVIEW

We are advised by Present BBT Ingatlan forgalmazo Kft that a final planning permit will
be forthcoming, we have not made further investigations in this respect. We have
made further enquiries with Yael Argaman the Chief architect of Casiopea who would
not comment until the final scheme design had been completed. Therefore,
realistically, one can expect a planning consent application to be delivered in Q4 of
2008.

Discussions have been held with a number of space users including hypermarket
operators and LSU’s. Responses have generally been positive. In order to assist the
letting campaign as much information as possible will need to be provided to retailers
including population and expenditure estimates, details of the location in relation to the
highway infrastructure network and proposed improvements, details on the design and
tenant mix strategy, anchor store lettings, parking provision and anticipated service
charge liabilities will need to be provided along with an outline of the anticipated lease
structure and rent review pattern.

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TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

APPENDIX 1

VALUATION CALCULATIONS

44
 List of tenants and income from total lettable area SEPTEMBER 2008
Lease fee
Re-Let Void 0.75 AREA ERV 0% End of Remaining 1.80% 1.80% 1.80% 1.80% 1.80% 1.80% 1.80% 1.80% 1.80% 1.80%

UNIT Yld 0% Extn Period 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

M2 Eur /m2/mo Eur /mo Yrs End in months Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Ground Floor Gro 92,260,000

Tenant Net 22,500,000

10 Food Tesco 13,141.6 9.50 124,845.49 12 2020 - 144 749,073 1,525,112 1,552,564 1,580,511 1,608,960 1,637,921 1,667,404 1,697,417 1,727,970 1,759,074
10a Food - Loading 1,783.6 6.00 10,701.78 12 2020 144 64,211 130,733 133,086 135,482 137,920 140,403 142,930 145,503 148,122 150,788
11 Animals 700.2 11.00 7,701.65 7 2015 - 46,210 94,083 95,777 97,501 99,256 101,042 102,861 26,178 95,777 97,501

12 Magma 1,539.1 13.00 20,007.78 10 2018 - 120,047 244,415 248,815 253,293 257,852 262,494 267,219 272,029 276,925 281,910

13 Fashion 157.2 18.00 2,829.42 5 2013 - 16,977 34,564 35,186 35,820 36,464 9,280 35,820 36,464 37,121 37,789

14 Fashion 183.6 18.00 3,304.80 5 2013 - 19,829 40,371 41,098 41,838 42,591 10,839 41,838 42,591 43,358 44,138

15 Fashion 157.6 18.00 2,837.52 5 2013 - 17,025 40,371 41,098 41,838 42,591 10,839 41,838 42,591 43,358 44,138

16 Shoes 112.9 26.00 2,934.88 5 2013 - 17,609 34,663 35,287 35,922 36,569 9,307 35,922 36,569 37,227 37,897

17 Fashion 174.5 24.00 4,187.04 5 2013 - 25,122 35,852 36,498 37,155 37,824 9,626 37,155 37,824 38,504 39,197

18 Restaurant 125.1 22.00 2,751.54 5 2013 - 16,509 51,149 52,070 53,007 53,961 13,733 53,007 53,961 54,932 55,921

19 Restaurant 111.3 24.00 2,671.20 5 2013 - 16,027 33,613 34,218 34,834 35,461 9,025 34,834 35,461 36,099 36,749

20 Restaurant 98.8 24.00 2,370.72 5 2013 - 14,224 32,631 33,219 33,817 34,425 8,761 33,817 34,425 35,045 35,676

21 Restaurant 133.8 22.00 2,942.72 5 2013 - 17,656 28,961 29,482 30,013 30,553 7,776 30,013 30,553 31,103 31,663

22 Restaurant 109.6 27.00 2,960.28 5 2013 - 17,762 35,948 36,595 37,254 37,925 9,652 37,254 37,925 38,607 39,302

23 Fashion 512.0 0.00 0.00 5 2013 - 0 0 0 0 0 0 0 0 0 0

24 Shoes 1,375.5 14.00 12,256.72 10 2018 - 73,540 149,728 152,423 155,167 157,960 160,803 163,698 166,644 169,644 172,697

24a Fashion 132.6 19.00 2,519.21 5 2013 - 15,115 30,775 31,329 31,893 32,467 8,263 31,893 32,467 33,051 33,646

25 Fashion 807.0 14.00 11,297.86 7 2015 - 67,787 138,015 140,499 143,028 145,602 148,223 150,891 38,402 143,028 145,602

26 Fashion 706.8 16.00 11,308.16 7 2015 - 67,849 138,140 140,627 143,158 145,735 148,358 151,029 153,747 140,627 143,158

27 DIY 5,864.3 10.00 58,643.40 15 2023 - 351,860 716,388 729,283 742,410 755,773 769,377 783,226 797,324 811,676 826,286

27a DIY - Loading 255.0 6.00 1,529.70 5 2013 - 9,178 18,687 19,023 19,366 19,714 5,017 19,366 19,714 20,069 20,430

28 Sports 1,278.9 14.00 17,905.02 7 2015 - 107,430 218,728 222,665 226,673 230,753 234,906 239,135 60,860 226,673 230,753

29 JYSK 1,494.0 14.00 20,916.56 7 2015 - 125,499 255,517 260,116 264,798 269,564 274,417 279,356 71,096 264,798 269,564

30 Home stuff 102.9 20.00 2,057.60 5 2013 - 12,346 25,136 25,588 26,049 26,518 6,749 26,049 26,518 26,995 27,481

31 Books 601.1 16.00 9,617.76 5 2013 - 57,707 117,491 119,605 121,758 123,950 31,545 121,758 123,950 126,181 128,452
32 Electronics 2,704.3 10.50 28,395.47 10 2018 - 170,373 346,879 353,123 359,479 365,950 372,537 379,242 386,069 393,018 400,092

33 Unit Shop 85.2 32.00 2,727.68 5 2013 - 16,366 33,321 33,921 34,532 35,153 8,947 34,532 35,153 35,786 36,430

34 Unit Shop 81.9 30.00 2,458.20 5 2013 - 14,749 30,029 30,570 31,120 31,680 8,063 31,120 31,680 32,251 32,831

35 Unit Shop 81.9 30.00 2,458.20 5 2013 - 14,749 30,029 30,570 31,120 31,680 8,063 31,120 31,680 32,251 32,831

36 Unit Shop 85.2 24.00 2,045.76 5 2013 - 12,275 24,991 25,441 25,899 26,365 6,710 25,899 26,365 26,840 27,323

37 Unit Shop 121.6 24.00 2,918.40 5 2013 - 17,510 35,651 36,293 36,946 37,611 9,572 36,946 37,611 38,288 38,977

38 Unit Shop 121.6 22.00 2,674.98 5 2013 - 16,050 32,678 33,266 33,865 34,474 8,774 33,865 34,474 35,095 35,726

39 Unit Shop 121.6 22.00 2,675.20 5 2013 - 16,051 32,680 33,268 33,867 34,477 8,774 33,867 34,477 35,098 35,729

40 Unit Shop 121.6 22.00 2,674.98 5 2013 - 16,050 32,678 33,266 33,865 34,474 8,774 33,865 34,474 35,095 35,726

41 Unit Shop 121.6 22.00 2,675.20 5 2013 - 16,051 32,680 32,680 32,680 32,680 8,317 33,268 16,634 33,268 33,268

42 Unit Shop 121.6 22.00 2,674.98 5 2013 - 16,050 32,678 33,266 33,865 34,474 8,774 33,865 17,237 33,865 34,474

43 Fast Food 413.1 20.00 8,261.20 5 2013 - 49,567 100,919 102,735 104,585 106,467 27,096 104,585 106,467 108,384 110,334

43a Fast Food Terrace 74.5 8.00 595.92 5 2013 - 3,576 7,280 7,411 7,544 7,680 1,955 7,544 7,680 7,818 7,959

101-130 Stands 30.0 1,200.00 36,000.00 5 2013 - 60 216,000 439,776 447,692 455,750 463,954 118,076 455,750 463,954 472,305 480,807

Sub Total Ground Floor 35,944.7 12.25 440,335.0 2,642,010 5,383,341 5,479,653 5,577,698 5,677,508 4,632,787 5,803,778 5,284,168 5,926,249 6,032,323

First Floor

G1 Fitness 2029.62 8.00 16,236.96 5 2013 97,422 198,351 201,921 205,556 209,256 53,256 205,556 209,256 213,022 216,857

G1T Fitness Terrace 1462.64 3.00 4,387.92 5 2013 26,328 53,603 54,568 55,550 56,550 14,392 55,550 56,550 57,568 58,604

G2 Magma 2nd floor 1264.31 10.00 12,643.10 7 2015 75,859 154,448 157,228 160,058 162,939 41,468 160,058 162,939 165,872 168,858

G3 Casino Sports bar 782.92 21.00 16,441.32 7 2015 98,648 200,847 204,462 208,143 211,889 53,926 208,143 211,889 215,703 219,586

G4 Beauty Shop 247.46 7.00 1,732.22 5 2013 10,393 21,161 21,542 21,929 22,324 5,682 21,929 22,324 22,726 23,135

G5 DIY 3944.29 11.00 43,387.19 15 2023 260,323 530,018 539,558 549,270 559,157 569,222 579,468 589,898 600,517 611,326

First Floor:

Sub Total First Floor 9,731.2 9.74 94,828.7 568,972 1,158,428 1,179,279 1,200,506 1,222,115 737,945 1,230,704 1,252,857 1,275,408 1,298,365

Total Leased Area 45,675.9 1,137,944.5 PV at 8.50% 0.921658986 0.849455287 0.782908098 0.721574284 0.665045423 0.612945091 0.564926351 0.520669448 0.479879675 0.442285415 0.428504986

NPV 2,959,430 5,556,940 5,213,332 4,890,978 4,588,563 3,291,964 3,973,964 3,403,629 3,455,929 3,242,256 34,160,946

2009 2010 Reversion Value

TOTAL ANNUAL INCOME ( EURO ) 2,959,430.49 5,556,939.56 CAP VAL: 69,461,744 Eur Cap Rate: 8.00%

CAP VAL: 74,737,932 Eur Rev CP: 7.75%

Av CAP VAL: 72,099,838 Eur

PHASE 2: Delivery in 1.5 Yrs 1.5

Total 12,110.0 14.00 2,034,480.0 1,017,240 2,034,480 2,071,101 2,071,101 2,071,101 2,071,101 2,071,101 2,071,101 2,071,101

PV at 8.50% 0.921658986 0.849455287 0.782908098 0.721574284 0.665045423 0.612945091 0.564926351 0.520669448 0.479879675 0.442285415 0.428504986

NPV 0 864,100 1,592,811 1,494,453 1,377,376 1,269,471 1,170,019 1,078,359 993,879 916,018 9,651,312

2010 2011 Reversion Value

TOTAL ANNUAL INCOME ( EURO ) 864,099.90 1,592,810.87 CAP VAL: 19,910,136 Eur Cap Rate: 8.00%

CAP VAL: 20,407,797 Eur Rev CP: 7.75%

Av CAP VAL: 20,158,967 Eur

COMBINED VALUE P1 & P2: 92,258,805 EUR

 TRIO Family Center, Budapest - Phase I

Eur/mth Eur/mth Cap Val

1.0 Gross development value
1.1 Usable (saleable) Retail area 45,676 /sqm x 10.14 5,556,940 72,099,838

Site Area: 106,002 72,099,838

2.0 Estimated project hard costs

2.1 Site preparation Eur/mth 10 /m3 x 106,002 sqm = 1,060,020
2.2 Retail construction (b) Eur/mth 550 /sqm x 47,960 sqm = 26,377,850
2.3 Surface parking & lanscaping Eur/mth 10 /sqm x 60,326 sqm = 603,261
2.4 On site infrastructure Eur/mth 30 /sqm x 106,002 sqm = 3,180,060
2.5 Off site infrastructure, provisional sum Eur/mth 10 /sqm x 106,002 sqm = 1,060,020
2.6 Expropriated land development Eur/mth 40 /sqm x 2,679 sqm = 107,160
32,388,370

3.0 Technical services

3.1 Design and planning @ 3.00% of total project hard costs 971,651
3.2 Inspections and approvals 2.00% of total project hard costs 647,767
3.3 Engineers and Marketing Man 3.00% of total project hard costs 971,651
2,591,070

4.0 Marketing
4.1 Marketing @ 0.50% of gross development value 360,499
4.2 Promotion @ 0.50% of gross development value 360,499
5.2 Marketing Management 0.10% of gross development value 72,100
4.3 Agent's fees @ 1.00% of gross development value 720,998
1,514,097

5.0 Other expenses

5.1 Legal and accounting 1.50% of gross development value 1,081,498
5.2 General liability insurance 1.00% of gross development value 720,998
1,802,496
6.0 Project contingency
6.1 Contingency @ 5.00% of hard costs, technical service & marketing 1,914,802

7.0 Financing Costs

7.1 Lender's legal & supervision fees 0.50% 197,449
7.2 Carried interest charge @ 7.00% of construction costs, fees,
over (years) 1.25 technical services & market
applied to (%) of costs/time 50.00% ing costs. Over 15 months 1,742,541

8.0 First Years Running Costs

8.1 Estimate on budget 350,000

9.0 Estimated total construction cost 42,500,824

10.0 Developer's Profit

10.1 Developer's Profit @ 17.50% of development costs 7,036,896

11.0 Residual Value 22,562,118

PV @ 9.0% for 2 years 0.84168 18,990,083

Residual Value/m2 179

 TRIO Family Center, Budapest - Phase II

Eur/mth Eur/mth Cap Val

1.0 Gross development value
1.1 Usable (saleable) Retail area 12,110 /sqm x 14.00 2,034,480 20,158,967

Site Area: 40,918 20,158,967

2.0 Estimated project hard costs

2.1 Site preparation Eur/mth 11 /m2 x 40,918 sqm = 429,639
2.2 Retail construction (b) Eur/mth 578 /sqm x 12,716 sqm = 7,343,201
2.3 Surface parking Eur/mth 11 /sqm x 28,808 sqm = 302,484
2.4 On site infrastructure Eur/mth 32 /sqm x 40,918 sqm = 1,288,917
2.5 Off site infrastructure, provisional sum Eur/mth 11 /sqm x 40,918 sqm = 429,639
2.6 Expropriated land development Eur/mth 40 /sqm x 6,241 sqm = 249,640
10,043,520

3.0 Technical services

3.1 Design and planning @ 3.00% of total project hard costs 301,306
3.2 Inspections and approvals 2.00% of total project hard costs 200,870
3.3 Engineers and Marketing Man 3.00% of total project hard costs 301,306
803,482

4.0 Marketing
4.1 Marketing @ 0.50% of gross development value 100,795
4.2 Promotion @ 0.50% of gross development value 100,795
5.2 Marketing Management 0.10% of gross development value 20,159
4.3 Agent's fees @ 1.00% of gross development value 201,590
423,338

5.0 Other expenses

5.1 Legal and accounting 1.50% of gross development value 302,384
5.2 General liability insurance 1.00% of gross development value 201,590
503,974
6.0 Project contingency
6.1 Contingency @ 5.00% of hard costs, technical service & marketing 588,716

7.0 Financing Costs

7.1 Lender's legal & supervision fees 0.50% 60,807
7.2 Carried interest charge @ 7.00% of construction costs, fees,
over (years) 1.00 technical services & market
applied to (%) of costs/time 50.00% ing costs. Over 12 months 425,650

8.0 First Years Running Costs

8.1 Estimate on budget 150,000

9.0 Estimated total construction cost 12,999,488

10.0 Developer's Profit

10.1 Developer's Profit @ 20.00% of development costs 2,472,606

11.0 Residual Value 4,686,873

PV @ 10.0% for 3 years 0.751315 3,521,317

Residual Value/m2 86
PRESENT BBT INGATLANFORGALMAZÓ KFT
TRIO FAMILY SHOPPING PARK 30 SEPTEMBER 2008
BUDAPEST

APPENDIX 2

CADASTRAL EXTRACT AND SITE PLAN

48