52
Company Presentation at Sberbank Conference April, 2013

Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

  • Upload
    others

  • View
    19

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Company Presentation at Sberbank Conference

April, 2013

Page 2: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Contents

Strategy and corporate overview 3

Market overview 10

Asset portfolio overview 17

2012 Achievements & acquisitions and divestments 21

2013 Initiatives 27

Debt & Liquidity 30

Financial performance – Historical 32

Financial performance – Projections 34

Our equity story 37

Appendix: yielding assets 42

2

Page 3: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 3

Strategy & Corporate Overview

Page 4: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Dmitriy Mints

Alexander Ostrovskiy

Michael Stanton

Tomasz Zamiara

Pavel Barbashev

Management Team

4

Chairman of the Board Since 2006 actively involved in the real estate and private equity

investment projects of OTKRITIE FINANCE CORPORATION (“OFC”)

Completed transactions exceeding $3Bn in value

Graduated from Moscow State Institute of International Relations

Chief Investment Officer Joined OFC in 2006 to create its Real Estate Fund for Vivaldi Plaza

25 years of finance experience

MBA from the University of Michigan

Chief Financial Officer CFO of Horus Group from 2006 until 2010

14 years experience in Accounting and Real Estate

MBA from London Business School

Head of Asset Management and Leasing Over 5 years with Horus Capital and 6 years with Hines

Management of the assets that are now part of the O1 portfolio

Over 15 years experience in Real Estate

Graduated from TOURO College of New-York (Moscow Branch)

Chief Executive Officer Previously Managing Director at OFC, which he joined in 2007

Degree in Law from The Russian Customs Academy of Federal Customs Service

Page 5: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 5

The Idea

100%

Office

100%

Moscow

~ 80/20

Yielding/

Development

~ 50/50

Leverage

Page 6: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

A Moscow Office Pure-Play

6

Investment in high quality office properties located in Moscow

Class A and Class B+/B properties

Top-tier tenants, principally multinationals corporations and leading

Russian companies

Existing yielding real estate portfolio comprised of 10 properties with

total NRA of 426,793 sq. m. of as of 01 February 2013 (2)

Development portfolio includes 50% stake in 1 project

Independent portfolio valuation of US$ 3.7Bn

Yielding: US$ 3.67Bn

Developments: US$0.03Bn (3) (not consolidated)

Total value = US$3.7 Bn

Yielding assets = US$3.67 Bn

Development (not consolidated)

= US$0.03 Bn

Portfolio Structure (1)

O1 - Company Snapshot Internally–Managed Business

Continuous in-depth analysis of development and

acquisition opportunities in Moscow

Highly visible presence in the market (investors,

landlords, developers, occupiers, investment

managers, finance providers…)

Established relationships with Moscow planning

authorities and other relevant government authorities

Experienced in-house team for supervision of

development

Regular interaction with local authorities helps ensure

local needs (for both the O1 and the local authorities)

can be aligned within re-development activities

Top-class franchise of leasing capabilities including

strong relationships with tenant brokers

In-house experience with strong focus on tenant

relationships

Add value to standing assets through specific asset

improvements

Close involvement of O1 professionals ensures

optimal management of the centres and their client

relationships

Full control of asset performance (tenant

performance, etc.)

Asset

Management

and Leasing

Sourcing /

Business

Development

Acquisitions

Development

Supervision

Notes

1. Cushman & Wakefield valuation report as of 31 December 2012; assets ownership as of 01 February 2013

2. NRA including only yielding assets; except development projects (incl. White Square but excl. Olympia park )

3. O1 stake in development project is 50%

Excellent track record in the acquisition of attractive

assets and development projects

Approval of all material investments and disposals at

the Board of Directors level

99%

1%

Yielding Assets Development Projects

Fully Integrated Office Real Estate Platform

Page 7: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 7 7

Asset Quality: Diversified Portfolio Across Moscow

Yielding Assets

Avion

Krugozor

Le Fort

Stanislavsky

Development Projects

Lighthouse

Vivaldi Plaza

Sheremetyevskaya

Lesnaya Plaza

Value: $0.03 Bn

NRA: 31 171 sq m

Current Portfolio (1)

Completion: 2016

100% Moscow Office

Avion

$107 MM Le Fort

$261 MM

Stanislavsky Factory

$256 MM

Lighthouse

$237 MM

MKAD

Ring Road

Sheremetyevskaya

$29 MM

Vivaldi Plaza

$423 MM

Lesnaya Plaza

$280 MM

Sheremetyevo

Airport

Domodedovo

Airport 5 km

Kremlin

Yielding Asset

Development Project

Vnukovo

Airport

Notes

1. Olympia park was sold in Feb 2013, all data are given without Olympia park

2. Annualized full occupancy NOI as of Feb 2013 incl. parking

3. O1 owns a 50% interest in Sheremetyevskaya

Krugozor

$359 MM

Silver City

Silver City

$361 MM Ducat III

$380 MM

Ducat III

Yielding Assets make up 99% of Portfolio Value

Feb 2013

Value (US$ Bn.) 3.7

NRA (sq. m) 426,793

Occupancy 98%

LOI’s 0,2%

Annualized 2013 NOI

($ MM) (2) 336

Weighted Average ERV

(US$) 752

White Square

White Square

$1 002 MM

Page 8: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Strong Board

8

Value-Add Board Members and Strong Corporate Governance

The composition of the Board of Directors is well balanced; 3 out of 7 Board members are independent non-executive directors, all are active industry

participants with significant experience in real estate and real estate finance

All three committees (audit, nomination and remuneration, strategy and development) are headed by independent directors

Corporate Governance

Executive Directors

Alexander

Ostrovskiy

Chief Operating

Officer

Tomasz

Zamiara

Chief Financial

Officer

Michael

Stanton

Chief Investment

Officer

Dmitriy Mints

Chairman of the

Board and

Chief Executive

Officer

Independent Non-Executive Directors

Richard Gregson

Former Real Estate Leader of

PWC, Russia

Appointed to the Board in

June 2012

Chairman of audit committee

John Nacos

Former Global Head of

Real Estate, Deutsche Bank

Joined in August 2011

Chairman of O1 Strategy and

Development committees

Timothy Fenwick

Former Head of Jones Lang

LaSalle, Russia

Joined in July 2011

Chairman of remuneration

committee

Founding shareholder (Boris Mints) remains committed to the ongoing business strategy

Strong Alignment of Shareholder Interests

Page 9: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 9

Group structure chart (pro-forma)

85%

Page 10: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 10

Market Overview

Page 11: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 11

Key Highlights Market Position

4) Moscow –Investment into Real Estate Rising

5) Leading Class “A” Office Player in Moscow Market

3) Moscow market has particularly attractive characteristics for office real estate

2) Within Russia, Moscow demonstrates position of economic concentration

1) Russian Economy demonstrating strong macroeconomic position

Page 12: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

1) Macros: Lowest debt levels

12

Source: The Economist (Global debt guide September 2012)

Page 13: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

2) Moscow: Russia’s Office Market

13

Moscow Office Market 5 times larger than St Petersburg

Source: Cushman & Wakefield, as of Feb 2013

9.34 MM sq m

2.14 MM sq m

1.20 MM sq m

(11.4% of Class B)

0.42 MM sq m

(16.6% of Class A)

Moscow Office Stock & Vacancy Breakdown

Total Stock (sq m): 13.1 MM

Class A

Class B

Vacant class B

Vacant class A

Page 14: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

3) Moscow Office Market: Low Levels Class A Stock

14

New office Construction

Source Cushman & Wakefield, as of Feb 2013

Moscow’s Stock & Vacancy

Source Cushman & Wakefield, as of Feb 2013

Million sq.m.

New York

Budapest

Prague

Warsaw

Frankfurt

Milan

Madrid

Moscow

London

Paris

0.0

5.0

10.0

15.0

15.0 30.0 45.0 60.0

Total Office Stock (sq m MM)

Low Relative Stock Per Capita

Population (MM)

Source Cushman & Wakefield, as of June 2012

0

500

1 000

1 500

2 000

2 500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Class B (B+ and B-) Class A

Attractive Yield Dynamics

8,5

6,3 6,0

7,3

4,5 4,0

2,9

4,5

5,8

6,4

2,1 1,8

0

2

4

6

8

Moscow(Russia)

Warsaw(Poland)

Madrid(Spain)

Budapest Paris (France) London (UK)

Office yield Government bonds yield

%

Page 15: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

4) Increasing Investments into Real Estate

15 Source: Cushman & Wakefield as of Feb 2013, Jones Lang LaSalle Feb 2013

Foreign Participation Small But Rising

Name Market YEAR Rentable area,

sq m Investor

Estimated Value, US$

MM

Metropolis Shopping Center Moscow 2013 200,000 Morgan Stanley (MSREF) $1 200

Galleriya St Pete 2012 192,000 Morgan Stanley (MSREF) $1 100

Actor Gallery Moscow 2012 18,000 SOFAZ $133

Metropolis Bldg B Moscow 2012 25,000 Heitman $250

Nagatino I-Land Moscow 2012 24,995 Raiffeisenbank $95

Bakhrushina House Moscow 2012 4,159 Sponda Plc $47

Mercury City Moscow 2012 10,000 Japan Tobacco International N/A

Golden Babylon Moscow 2012 240,000 Immofinanz $250

Pushkino Logistics Moscow 2012 212,600 Raven Russia $220

G - 11 Moscow 2011 9,000 Hines $94

Recent foreign investment transactions

• In 2007, Russian investors and foreign

investors reach represented roughly

half of the investment market

• In 2009, foreign investment was

largely absent

• Foreign investors gradually returning

to the market but market still driven by

local market participants

Page 16: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

5) O1 is The Leading Player in Moscow Office Market

16

O1 Investment Portfolio Increase

O1 has 426,793 sq. meters of completed and yielding Class A and B+ Office Space with an additional 100,000

sq meters under development

We estimate 4 – 5 million of total office stock would be classified as Class A or B+, with the remainder being

lower quality Class B

Our potential market share in Class A / B+ segment is probably in the range of 10% - 12%

321

363

396 427

2 105

2 525

2 982

3 665

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

-

50

100

150

200

250

300

350

400

450

HY 2012 3Q 2012 4Q 2012 1Q 2013

NRA, thous. sq. m GAV, MM USD

Source: Company data

Thous. sq. m MM USD

Page 17: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 17

Asset portfolio overview

Page 18: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

High Quality Cash-Generating Asset Portfolio

18

Strong Rent-Generating Assets and Selected Development Exposure

Portfolio Description (1)

All Properties Class A and Class B+ (except for LeFort which is

Class B)

Top-tier tenants, principally multinationals corporations and leading

Russian companies

Existing yielding real estate portfolio comprised of 10 properties with

426,793 sq. m. NRA as of Feb 2013

Independent yielding portfolio valuation of US$ 3.7Bn

18

Properties (1)

Avion

Yielding Assets (99% of GAV)

Krugozor

Lesnaya Plaza

Le Fort

Valuation: $255.5 MM

NRA: 34,345 sq m

WAULT: 3.0 years

Occupancy: 100.0%

Valuation: $106.7 MM

NRA: 18,429 sq m

WAULT: 0.9 years

Occupancy: 100%

Stanislavsky Factory

Vivaldi Plaza

Valuation: $422.5 MM

Total NRA: 48,051 sq m WAULT: 6.9 years

Occupancy: 100% Completion Date: 4Q 2011

White Square

Valuation: $1001.9 MM

NRA: 76,542 sq m WAULT: 6.2 years Occupancy: 99,4%

Lighthouse

Valuation: $280.3 MM

NRA: 39,710 sq m

WAULT: 4.5 years

Occupancy: 91%

1. Notes

Asset portfolio excludes Olympia park since it was sold in Feb 2013. Valuation based on Cushman & Wakefield valuation report as of 31 Dec 2012.

WAULT – weighted average unexpired lease term as of Feb 2013. Company information as of Feb 2013

Silver City

Valuation: $360.8 MM

NRA: 41,766 sq m

WAULT: 3.0 years

Occupancy: 98%

Valuation: $261.4 MM NRA: 56,169 sq m WAULT: 3.4 years

Occupancy: 100%

Valuation: $380.1 MM

NRA: 33,333 sq m

WAULT: 2.8 years

Occupancy: 98%

Ducat III

Lease Expiration Profile, % of NRA

41 316 35 119

55 311

40 440

73 892

36 975 31 284

83 736

6 192 8 055

9,88%

8,40%

13,22%

9,67%

17,66%

8,84%

7,48%

20,02%

1,48% 1,93%

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Total Expired NRA from total signed tenants m²

Total Expired NRA from total signed tenants %

Valuation: $358.9 MM

Total NRA: 50,951 sq m

WAULT: 3.6 years

Occupancy: 100%

Valuation: $237.1 MM NRA: 27,405 sq m WAULT: 6.9 years Occupancy: 93% Completion Date: 1Q

2012

Page 19: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Well Diversified Yielding Portfolio

19

Notes

1. Property valuation as of 31 Dec 2012 by Cushman & Wakefield

2. White Square Project legally consists of two separate buildings, each of them is located on its own land plot. The FY2012 Cushman&Wakefield valuation

is divided between the buildings proportionally based on NRA.

Low Asset Concentration underpins Stable Cash Flows

As of 30 Sep 2012 As of April-2013

Total Value: $2.6 Bn Total Value: $3.7 Bn

+ White Square

+ Ducat III

- Olympia Park

Avion 4% Krugozor

14%

Le Fort 10%

Stanislavsky Factory

10%

Lesnaya Plaza 11%

Lighthouse 9%

Vivaldi Plaza 16%

Olympia Park 12%

Silver City 14%

Avion 3%

Krugozor 10%

Le Fort 7%

Stanislavsky Factory

7%

Lesnaya Plaza 8%

Lighthouse 6%

Vivaldi Plaza 12%

Silver City 10%

Ducat III 10%

White Square Bld.1 (PWC headquarter)

12%

White Square Bld.2 15%

Page 20: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Secure Cash Flows Due to High Quality Tenants

20

Mostly : Multinational Tenants or Russian RTS/LSE Listed

Key Tenants (as of 01 Feb 2013, including White Square, Ducat III and excl. Olympia Park)

# Tenant NRA, m² NRA, %

1 PwC 33 151 7,93%

2 EurAsEC 23 875 5,71%

3 Deloitte 15 946 3,81%

4 Nomos Bank 10 622 2,54%

5 SUEK 10 096 2,41%

6 Citibank 9 706 2,32%

7 Volkswagen Group 9 470 2,26%

8 General Electric 8 098 1,94%

9 Slavneft 7 917 1,89%

10 McKinsey & Company 7 722 1,85%

11 LG Electronics 6 236 1,49%

12 Mail.ru 6 217 1,49%

13 Weatherford 5 702 1,36%

14 Arguments&Facts 5 561 1,33%

15 Nokia Siemens Networks 5 370 1,28%

16 ABB 5 160 1,23%

17 Alacatel 4 831 1,16%

18 Rolf Import 4 756 1,14%

19 Regus 4 587 1,10%

20 CHTPZ Group 4 395 1,05%

21 Toyota Bank 4 393 1,05%

22 Europa Media Group 4 322 1,03%

23 McDonalds 3 981 0,95%

24 Roche Diagnistics 3 853 0,92%

25 Orgenergogaz 3 763 0,90%

# Tenant NRA, m² NRA, %

26 Swedbank 3 708 0,89%

27 Clifford Chance 3 690 0,88%

28 FESCO Transportation Group 3 595 0,86%

29 TimService 3 486 0,83%

30 IBM 3 428 0,82%

31 Nike 3 383 0,81%

32 Sistematika 3 382 0,81%

33 BNPP 3 265 0,78%

34 Goldman Sachs 3 182 0,76%

35 Kvartal stroy 3 148 0,75%

36 Bacardi 3 113 0,74%

37 Agropromkredit 3 101 0,74%

38 REPUBLIKA 3 017 0,72%

39 Cordiant 3 016 0,72%

40 Canon 2 993 0,72%

41 Jones Lang LaSalle 2 831 0,68%

42 John Deere 2 766 0,66%

43 Olympus 2 748 0,66%

44 Syngenta 2 680 0,64%

45 Marsh Insuarance 2 579 0,62%

46 Boston Consulting Group 2 466 0,59%

47 Sovcomflot 2 463 0,59%

48 Cushman & Wakefield 2 463 0,59%

59 ConocoPhillips Russia, Inc. 2 400 0,57%

50 VNIIR 2 385 0,57%

1. The list excl. O1 Properties rented space of 3 110 sq. m

Page 21: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 21

2012 : Achievements, Acquisitions &

Divestitures

Page 22: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

2 105

2 525

2 982

3 665

64 356

76 380

1 002

318

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

30 June 2012 CAPEX &Valuationchanges

Silver Cityacquisition

30 September2012

CAPEX &Valuationchanges

Ducat IIIacquisition

31 December2012

Olympia Parkdisposal

White Squareacquisition

30 March 2013

Mln

US

D

22 22

2012 Achievements

1) UK Listing: Approved by UKLA for meeting LSE Listing Eligibility requirements and issued Prospectus (though IPO was later

deferred)

2) Acquisitions : Acquired Ducat III, Silver City and White Square

3) Leasing: Leased over 120,000 sq meters and finished the year 98% leased

4) Disposals: Olympia Park was sold to end-user (Kaspersky Lab)

5) Hedging : Locked in Low Interest rates on Ducat, Silver City and White Square Acquisitions

6) Financing : Extended maturities of key debt (Aareal loan matures 2017)

7) Capital Base: Supplemented Capital base by issuing $170 mln of Pref Stock to our Parent Company

-

Gross Asset Value growth

Page 23: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

2012 Acquisition 1

23

Silver City: Value-add Opportunity in Core Asset Class: A

ERV 2013: $700

NRA: 41,766 sq m (1)

Parking slots: 446

Occupancy: 98%

WAULT: 3.0 years

Valuation: $360.8 MM (31.12.12 by Cushman&Wakefield)

Rationale of the acquisition:

Prestigious location inside the Garden Ring

Newly build class A office property with major international and

Russian tenants

Short WAULT to be managed by the asset management

department

Latest Acquisition of Standing Assets (Recent Independent Appraisal $360.8MM)

Source Company data as of Feb 2013

Page 24: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

2012 Acquisition 2

24

Ducat III: Core Asset

Rationale of the acquisition:

“Trophy” class A office property in Moscow: top international

companies as tenants, superior location and building quality.

Currently under-rented as initially leased were signed during

construction phase in 2005-2006.

Rent ramp-up due to coming lease expirations would create

significant additional value

Class: A

ERV 2013: $1,100 - $1,300

NRA: 33,333 sq m

Parking slots: 474

Occupancy: 98%

WAULT: 2.8 years

Valuation: $380.1 MM

Trophy Class “A” Property (Recent Independent Appraisal $380.1MM)

Source Company data as of Feb 2013

Page 25: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

2012 Acquisition 3

25

White Square: Core Asset

Rationale of the acquisition:

Trophy Class “A” Property considered by some to be the finest

office building in Moscow.

The property is fully occupied, high quality multinational

tenants, long term secured lease agreements

Winner of the Commercial Real Estate Moscow Awards 2010

for best Class A Business Center

Excellent transport accessibility to the city centre of Moscow as

well as to the Garden Ring (GR), Third Transport Ring (TTR)

and Moscow Ring Road (MKAD), proximity to the next metro

station – Belorusskaya metro station is next to the property;

The construction and fit-out of the subject property complies

with high quality standards which will ensure a maintaining

long-term value of the property;

Modern buildings – capital expenses are not required

Class: A

ERV 2013: $1,000

NRA: 76,542 sq m

Parking slots: 802

Occupancy: 99,4%

WAULT: 6.2 years

Valuation: $1 001.9 MM

Trophy Class “A” Property (Total Value $1 001.9MM)

Source Company data as of Feb 2013

Page 26: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Olympia Park divestment

26

Lo

cati

on

North Administrative District

Close to Vodny Stadion metro station

(5 minute walk)

Close to Leningradsky Prospect

which is a principal route from

Moscow city centre to Sheremetyevo

airport

Class A office complex

Consists of 3 buildings, 5 stories

each

Buildings are located on the bank

of Khimkinskoe lake

New development completed in

late 2011

Olympia Park

MKAD

Ring Road

Descri

pti

on

(1)

Olympia Park is a Class A office building located in “Leningradsky corridor”, half way from the Kremlin to Sheremetyevo airport.

O1 acquired the property in a semi-developed state in December 2010 for $96.1 MM.

Since the acquisition, O1 invested a further $105 MM into the property and the construction was substantially completed by December 2011.

Another $42 MM have been required to finalize works (approx. $17 MM for fit-out) and buy out the City of Moscow’s interest (approx. $25 MM).

During the construction phase, O1 was able to successfully lease up the property to four major tenants, including Kaspersky and BMW, that together take up 96% of

the NRA.

As at 31 December 2012 Cushman & Wakefield valued the property at $318.3 MM with $17 MM remaining to be spent. In December 2012 we signed SPA with

Kaspersky Lab for the sale of Olympia Park.

The sale price of $345 mln was almost 10% higher than 31 Dec 2012 independent valuation.

Page 27: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 27

Initiatives for 2013

Page 28: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Bolshevik Development Underway

28

Bolshevik Factory

Redevelopment project:

Bolshevik Factory asset is 19th century industrial building and used to

be a Kraft Foods factory

Redevelopment will perfectly utilize the capabilities of the former Horus

employees that are now part of the O1 team (Horus used to be

specialized in the redevelopment of industrial assets into quality office

space)

The asset is located between the Garden Ring and the Third Transport

Ring and is expected to be re-developed into a class A-/B+ office asset

The development will take place in two phases of equal size, with

expected completion in Q4 2013 and Q2 2015 respectively

Class A-/B+

ERV, US$/sq m/year 600

Valuation, USD$MM 88.5

O1 share Option to acquire

100%

NRA, sq m Circa 75,000

Completed (phases I and II) 2013 and 2015

GAV, $MM (100% share) 88.5

Total outstanding development cost, $MM (Phase I) 50.0

O1 has an Option to acquire a Low risk and highly profitable refurbishment project

Notes: Company estimates as of 30 September 2012 (based o Cushman & Wakefield valuation report as of 30 June 2012)

Page 29: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Sheremetyevskaya: Starting 2H 2013

29

Sheremetyevskaya

Development project:

O1 has been closely following the status of the project since three

years ago when it was already offered to O1 by the previous owner

Sheremetyevskaya will become a class B+ office in the northeast

administrative district of Moscow

O1 has acquired a 50% JV stake in the development for $9.6MM in

June 2011 and increased its stake to 85% in March 2013.

Management anticipates significant increases in office demand in the

respective area and expects the property to generate a very high yield

on the acquisition/ development costs

Class B+

ERV, US$/sq m/year 500

Valuation, USD$MM 29.3

O1 share 50%

NRA, sq m 31,000

Completed 2015/16

GAV, $MM (100% share) 29.3

GAV, $MM (O1 share) 14.65

Total outstanding development cost, $MM 125.0

Total outstanding development cost, $MM

(O1 share) 62.5

Development Project

Notes: Company estimates as of 30 Feb 20123 (based on Cushman & Wakefield valuation report as of 01.12.2012)

Page 30: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 30

Debt and Liquidity

Page 31: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Debt Maturity Profile

31

$ MM

Outstanding Debt (incl. White Square, excl. Olympia as of Feb 2013)

Vivaldi debt was

refinanced with a loan

from Sberbank to mature

in 2020

Total debt: US $2,4 Bln

(incl. White Square)

Note: debt repayment in 2017 in total sum of $877 MM includes Aareal bank loan - $441MM (Krugozor, Stanislavsky, Lefort), VTB loans -

$139MM (Lesnaya Plaza); $110MM (Lighthouse) and Bank of Moscow (VTB Group) – $187MM (Silver City)

Avion

Alfa Bank loan

maturity

47 59 64 69 60 40 40 9 3

217 127

184

882

0

567

230

0 45

0

100

200

300

400

500

600

700

800

900

1000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Principal Ammortization

Page 32: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 32

Financial Performance - Historical

Page 33: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 33

Equity & Capital Structure

+ Ducat III + Silver City

31 Dec 2011 31 Dec 2010 30 Sep 2012 30 Jun 2012 30 Jun 2011 31 March 2013 (pro forma)

Note: Equity of 1,078 as of year end 2012 includes issuance of preferred stock of $171mln (for Ducat acq.)

Equity as of 31 March 2013 includes $202 MM preferred stock for White Square

31 Dec 2012 (est)

+ White square

- Olympia Park

$ MM

1 459 1 604

2 012 2 105

2 508

2 984

3 665

37 71

60 72

73

69

79

197 173

224 97

83

127

129

661 749 775 850 901 1 078

1 295 195

201 291 142 137

200

191 836

897

1 230 1 282

1 626

1 902

2 388

54% 53%

58% 60%

63% 62% 63%

0%

10%

20%

30%

40%

50%

60%

70%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

Investment Property Other Non-current Assets Current Assets Equity Other liabilities Debt Net debt /GAV

Page 34: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 34

Financial Performance - Projections

Page 35: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 35

Net Debt / EBITDA (x)

Secured rental income underpins material improvement in credit metrics

Interest Coverage Ratio (ICR) (x)

Loan to Value (Net debt to GAV)

Key Credit Metrics

Note: 1) EBITDA for the year / Interest expenses (and amortisation) paid for the year

2) Assumes acquisition of 100% of Bolshevik project in 2015 for $361 million (less assumed debt)

Note: Net debt at the end of the year / GAV at the end of the year Note: Net debt at the end of the year / EBITDA for the year

1,67x 1,84x 1,87x 1,96x

1,30x 1,37x 1,40x 1,46x

0,00x

0,50x

1,00x

1,50x

2,00x

2,50x

2013 2 014 2 015 2 016

ICR DSCR excl. PIK

8,63x

7,28x 7,53x 6,58x

0,00x

2,00x

4,00x

6,00x

8,00x

10,00x

2013 2 014 2 015 2 016

62% 61%

58%

56%

52%

46%

48%

50%

52%

54%

56%

58%

60%

62%

64%

2012 2013 2 014 2 015 2 016

Page 36: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 36

Our Equity Story

Page 37: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 37

IPO Timing May 2012 – Market Conditions Awful

Russia ETF down 20% over 90 day period coinciding IPO Roadshow / Bookbuilding

Go / No Go

Decision

Decision to

defer IPO

EEM : Global Emerging Markets ETF

RSX: RTS Index ETF

Source: NYSE Data

Sunday

May 6, 2012

French &

Greek elections

Page 38: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 38 38

Valuation: Cash Flow & NAV Growth drive Valn.

Price / NAV – driven by NAV growth

1. GAV – Gross Asset Value, LTV – Loan to Value

2012 O1 NAV:

18% yoy growth

X

2012 IPO Roadshow

Page 39: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 39 39

Property Stocks Recover

2013 / 2014 Time to IPO ?

1. Source Morgan Stanley : November 2012 Monthly Chartbook

X X

Page 40: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

Company Highlights

40

Strong and

Resilient Cash

flows

Majority of tenants are multinationals or Russian companies with high quality credit standing

Resilient assets: evidenced by the resilient rental income and high occupancy rates through the 2008 crisis

No receivables collection delays

High quality

assets

As of March 2013, O1 assets are 98% leased

Modern assets: most of the portfolio is brand new or refurbished within the last 5 years

Prime locations: on transport arteries or walking distance to metro station as demonstrated by the low vacancy

rates compared to the market

Active

management of

estate

Strong track record of asset management as evidenced by consistently strong portfolio metrics (occupancy ratios,

WAULT, retention)

Asset management team is a multinational team with local language, local knowledge and local expertise

Tight risk

management

policy

Minimal exposure to developments (currently 1%, maximum 20% of GAV)

Strong emphasis on high standards of corporate governance

Debt Service Coverage Ratios above 1.1 X even under “crisis” scenario analysis

Long lease

expiry profile

Portfolio WAULT of approximately 4.3 years (as of March 2013), which compares well to industry peers

High Retention Rate

Demonstrated

access to

capital

Meaningful relationship with key international and domestics banks

Demonstrated willingness and ability to use equity capital to reduce financial leverage

Strong Liquidity Strong and positive FFO generation (after interest and dividend payments) and long debt maturities and low

Capex.

Strong market

and low

competition

Exceptionally strong market for high quality buildings and within 3rd ring (Moscow’s central business district) with

limited stock of prime quality office properties as reflected by rising rents since the 2008 crisis

GAV – $3,7 Billion (incl. White Square, excl. Olympia Park)

Low tenant

concentration

Total of ca. 240 tenants as of March 2013

PwC, Eurasian Economic Community (EEC) and Deloitte are the only tenants accounting for more than 3% of

Total NRA

Page 41: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 41

Appendix: Yielding Assets

Page 42: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206

42

White Square

Valuation $ MM 1001.9

GBA sq m 96,704

NRA sq m 76,542

Parking # 802

WAULT Years 6.2

Occupancy % 99,4%

ERV $/sq m 1000

Indexation %/year 2.4%

Land plot sq m 3,500

Land lease agreement Year 2050

Lo

cati

on

Northern Administrative District between the

Garden Ring and Third Transport Ring

Belongs to Belorusskaya area which is one of

the most prestigious business districts in

Moscow (prime office sub-market)

Right next to the Belorusskaya Metro Station (1

minute walk) and Belorusskaya Railway Station

(express trains to Sheremetyevo airport)

Descri

pti

on

Class A+ office centre

Modern, high-class building

completed in 2009

Winner of the Commercial Real

Estate Moscow Awards 2010 for best

Class A Business Center

LG Electronics

White square

Ten

an

ts

MKAD

Ring Road

Lease Expiration Profile

Top-5 tenants occupy 85% of total NRA

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

0% 3% 0% 6% 5%

13%

5% 1%

66%

1% 0%

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 43: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 43

Ten

an

ts

Krugozor

South West administrative district

Krugozor is close to Kaluzhskaya

Metro Station (5 minutes walk)

Valuation $ MM 358.9

GBA sq m 62,072

NRA sq m 50,951

Parking # 703

WAULT Years 3.6

Occupancy % 100%

ERV $/sq m 655

Indexation %/year 3.74%

Land plot sq m 27,078

Land lease agreement Year 2045

Descri

pti

on

Class A office centre

Consists of 2 buildings of different

heights connected together

Reconstructed buildings of former

toy factory

Krugozor

MKAD

Ring Road

Lo

cati

on

Lease Expiration Profile

Top-5 tenants occupy 55% of total NRA

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

(1)

15%

3%

29%

3%

20% 20%

9%

0% 0% 0%

0%

10%

20%

30%

40%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 44: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 44

Lesnaya Plaza

Valuation $ MM 280.3

GBA sq m 49,520

NRA sq m 39,710

Parking # 318

WAULT Years 4.5

Occupancy % 91%

ERV $/sq m 600

Indexation %/year 3.7%

Land plot sq m 3,500

Land lease agreement Year 2050

Lo

cati

on

Northern Administrative District between the

Garden Ring and Third Transport Ring

Belongs to Belorusskaya area which is one of

the most prestigious business districts in

Moscow (prime office sub-market)

Right next to the Belorusskaya Metro Station (1

minute walk) and Belorusskaya Railway Station

(express trains to Sheremetyevo airport)

Descri

pti

on

Class A office centre

Modern, high-class building

completed in 2005

LG Electronics

Lesnaya Plaza

Ten

an

ts

MKAD

Ring Road

Lease Expiration Profile

Top-5 tenants occupy 78% of total NRA

(1)

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

1% 0%

12%

20%

24%

19%

2%

12%

1% 0%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 45: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 45

Le Fort

Valuation $ MM 261.4

GBA sq m 59,781

NRA sq m 56,169

Parking # 714

WAULT Years 3.5

Occupancy % 99.7%

ERV $/sq m 450

Indexation %/year 3%

Land plot sq m 43,424

Land lease agreement Year 2052

Lo

cati

on

East Administrative District

Well developed industrial area with

more than 300 of the largest industrial

companies located there

Close to Preobrazhenskaya Ploschad

Metro Station (7 minutes walk)

Class B office centre

Consists of 10 rentable buildings

of different heights

Reconstructed buildings of former

silk factory (early 20th Century

buildings)

Le Fort

MKAD

Ring Road

Ten

an

ts

Descri

pti

on

Lease Expiration Profile

Top-5 tenants occupy 58% of total NRA

(1)

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

2%

18%

24% 21%

25%

1% 3%

0% 0% 0%

0%

10%

20%

30%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 46: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 46

Stanislavsky Factory

Valuation $ MM 255.5

GBA sq m 43,251

NRA sq m 34,345

Parking # 335

WAULT Years 2.9

Occupancy % 100.0%

ERV $/sq m 650

Indexation %/year 3.16%

Land plot sq m 19,632

Land lease

agreement Year 2051

Lo

cati

on

Central Administrative district (some

of the most prestigious offices are

located within district)

Close to Taganskaya and

Marksistskaya metro station (7 and 9

minutes walk respectively)

Class A- office centre

Consists of 6 buildings

Reconstructed buildings of former

factory

Stanislavsky Factory

MKAD

Ring Road

Ten

an

ts

Descri

pti

on

Lease Expiration Profile

Top-5 tenants occupy 50% of total NRA

(1)

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

10%

19% 21% 19%

30%

0%

0%

10%

20%

30%

40%

2013 2014 2015 2016 2017 2018

Page 47: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 47

Avion

Valuation $ MM 106.7

GBA sq m 19,147

NRA sq m 18,429

Parking # 63

WAULT Years 0.9

Occupancy % 99.5%

ERV $/sq m 550

Indexation %/year 4.7%

Land plot sq m 9,428

Land lease agreement Year 2054

Lo

cati

on

North Administrative District

Close to Aeroport metro station

The property resides along Leningradsky

Prospekt, a principal route from the

Moscow city centre to the Sheremetyevo

airport

Right next to Aeroport Metro Station

Class B+ office centre

Consists of 2 buildings connected

together

Reconstructed in 2005

Avion

MKAD

Ring Road

Ten

an

ts

Descri

pti

on

Lease Expiration Profile

(1)

Top-5 tenants occupy 68% of total NRA

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

77%

8% 9% 0%

5% 0%

0%

20%

40%

60%

80%

100%

2013 2014 2015 2016 2017 2018

Page 48: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 48

Lo

cati

on

Central Administrative district (some of the

most prestigious offices are located within

district)

Close to Paveletskaya metro station (2

minutes walk)

One of the most well developed business

districts in Moscow

Class A office complex

Consists of 3 buildings, 11 stories

each

New development completed in

late 2011

Ten

an

ts

Vivaldi Plaza

Descri

pti

on

MKAD

Ring Road

Vivaldi Plaza Lease Expiration Profile

Valuation $ MM 422.5

GBA sq m 71,809

NRA sq m 48,051

Parking # 754

WAULT Years 6.9

Occupancy % 100%

ERV $/sq m 700

Indexation %/year 4.3%

Land plot sq m 16,322

Land lease agreement Year 2060

Top-5 tenants occupy 75% of total NRA

(1)

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

0% 0% 0% 0%

9%

0%

25%

56%

9%

1%

0%

10%

20%

30%

40%

50%

60%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 49: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 49

Lighthouse

Valuation $ MM 237.1

GBA sq m 44,581

NRA sq m 27,405

Parking # 332

WAULT Years 7.1

Occupancy % 93%

ERV $/sq m 700

Indexation %/year 3.5%

Land plot sq m 6,200

Land lease agreement Year NA L

ocati

on

Garden Ring

Central Administrative district (some

of the most prestigious offices are

located within district)

Close to Dobrininskaya and

Paveletskaya metro station (3 and 5

minutes walk, respectively)

Class A office centre

14 floors building

New development completed in

early 2012

McDonalds

Fitch Ratings

Knight Frank

Fitness

Lighthouse

MKAD

Ring Road

Ten

an

ts

Descri

pti

on

Lease Expiration Profile

(1)

(1)

Top-5 tenants occupy 64% of total NRA

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

0% 0% 0% 0%

12%

16%

29%

6%

0%

27%

0%

5%

10%

15%

20%

25%

30%

35%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 50: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 50

Silver City

Valuation $ MM 360.8

GBA sq m 56,033

NRA sq m 41,766

Parking # 446

WAULT Years 3.0

Occupancy % 100%

ERV $/sq m 700

Indexation %/year 2.2%

Land plot sq m 3,500

Land lease agreement Year 2050

Lo

cati

on

Central Administrative District within the Garden

Ring

Between Taganskaya and Paveletskaya metro

stations.

Descri

pti

on

Class A office centre

Modern, high-class building

completed in 2007

Silver City

Ten

an

ts

MKAD

Ring Road

Top-5 tenants occupy 58% of total NRA

(1)

(1)

Lease Expiration Profile

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

31%

4%

16% 10%

17% 13%

6% 0% 0% 0%

0%

50%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 51: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

0 130 200

14

86

155

133

168

202

255

105

21

235

192

154

128

128

128

204

204

255

0

102

204

217

217

217

0

130

206 51

Ducat Place III

Valuation $ MM 380.1

GBA sq m 46,085

NRA sq m 33,079

Parking # 494

WAULT Years 2.8

Occupancy % 98%

ERV $/sq m 1,100-1,300

Indexation %/year 3.0%

Land plot sq m N/A

Land lease agreement Year N/A

Lo

cati

on

Central Administrative District, in the most

prestigious business area in moscow

Between Mayakovskaya and Belorusskaya

metro stations.

Descri

pti

on

Class A prime office centre

Modern, high-class building

completed in 2008

Ducat III

Ten

an

ts

MKAD

Ring Road

Top-5 tenants occupy 51% of total NRA

(1)

(1)

Lease Expiration Profile

Note:

1. Cushman & Wakefield valuation report as of 31.12. 2012

1%

40%

7%

15% 12% 15%

3% 1% 2% 0%

0%

10%

20%

30%

40%

50%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Page 52: Company Presentation at Sberbank Conference · Company Presentation at Sberbank Conference April, 2013 . 0 130 200 14 86 155 133 ... 217 217 0 130 206 Contents Strategy and corporate

52

Thank you