FRENCH INVESTMENT BRIEFING5 July 2012

Olivier de Molliens

Deputy CEO & Head of Investment

Keops - Colliers International

2

Colliers International Worldwide

512 offices in

65 countries

More than

12,500professionals

worldwide

World’s 3rd largest real estate firm

33

Ranked #4 in the French real estate market

#1

#2

#3

#4

#5

#6

#7

#8

44

« when France sets a 75 percent top income tax

rate, we will roll out the red carpet, and we will

welcome more French business which will pay

their taxes in Britain »

5

KEY FIGURES

6

Key figures

- Inventory :200 mn sq. m

-Estimated value :400 billion Eur

Offices Warehouses Retail

-Inventory :100 mn sq. m

- Estimated value :60 billion Eur

- Inventory :70 mn sq. m

-Estimated value : 200 billion Eur

7

Market Office : european comparison

CityInventory

(in million sq.m)

Paris Region 52

Greater London 43

Munich 19

Berlin 17

Madrid 14

Hamburg 14

Brussels 13

Frankfurt 11,5

Milan 11

Roma 10

Amsterdam 7

Barcelone 5

Lyon 5

Lille 4

Toulouse 3,5

Marseille 3

Paris

London

Munich

Berlin

Madrid

Hamburg

Milan

Roma

Lyon

Marseille

Lille

Toulouse

8

PARIS REGION OFFICE MARKET

9

Paris : an attractive region

The advantages of Paris Region

- Europe’s most populated region

- Europe’s no.1 region for R&D expenditure and personnel

- The world’s third largest concentration of Fortune 500 head offices

-The presence of a diversified SME network

-A dense and integrated freight and transport network

10

Main office submarkets in Paris Region

Paris RegionInhabitants : 11,9 mn

Jobs : 5,9 mn

Office space : 52 mn sq. mClass A office : > 170 €/sqm

Vacancy rate : 7%

Paris CBD8,5 million sq. m

Class A office : > 600 €/sqmVacancy rate : 4,6%

Paris Paris Paris Paris CBDCBDCBDCBD

La Défense3 million sq. m

Class A office : > 450 €/sqmVacancy rate : 7%

11

Office take-up and vacancy rate in the Paris Region

0,00%

1,00%

2,00%

3,00%

4,00%

5,00%

6,00%

7,00%

8,00%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

E

0

0,5

1

1,5

2

2,5

3

Take-up in the Paris Region

Vacancy rate in Paris Region

Vacancy rate in Paris CBD

Paris region office market overview

12

INVESTMENT MARKET

13

Investment market :

european comparison

14

French Investment Market

Investment volumes in France (€bn) Office/Retail/Warehouses

12

9

13

10,511,212,5

16,1

24,6

28,2

12

8,1

12,1

16,8

0

5

10

15

20

25

30

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Total

Q4

Q3

Q2

Q1

Courbes 6

Financialization & Internationalization

Leverage & Speculation

French institutional & Equity

Safe havens & restriction of

financing conditions

15

French Investment Market

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

French investors Foreign investors

Investment volumes in France by origin of investors

16

Date Address Floor area Seller BuyerPrice

Mn €

201252-60 avenue des Champs-Elysées

Paris CBD27.000 sqm GROUPAMA Qatar 500

201265 Croisette

Cannes1.800 sqm KANAM THOR 80

2011O’Parinor

Paris Region111.000 sqm HAMMERSON

NPS

South

Korean

377

Major investment deals

Retail

17

Date Address Floor area Seller BuyerPrice

Mn €

2012French portofolio

France

40.500

sqmIndustrial Securities ETCHE 40

2011French portofolio

France

280.000

sqmAEW GLL 177

2011French portofolio

France

395.000

sqmGECINA CARVAL 114

Major investment deals

Logistic

18

Date Address Floor area Seller BuyerPrice

Mn €

2011 50 % of portofolio of prime building in Paris Region 7 buildingsAXA REAL

ESTATE

NORGES

BANK702,5

2012Cité du Rétiro and Néo

Paris CBD47,000 sqm KANAM QATAR 600

201252 avenue Hoche Paris CBD

Avant Seine Paris 13th54.500 sqm EUROSIC

Asian fund

represented by

JP Morgan

508

Major investment deals

Secure Office

19

Date Address Floor area Seller BuyerPrice

Mn €

2011Solstys

Paris CBD32.000 sqm NEXITY DEKA 330

2012Petra

Western Crescent21.000 sqm HINES IVANHOE CAMBRIDGE 150

2012Noda

Western Crescent22.000 sqm

BNP REAL

ESTATEWERELDHAVE 138

Major investment deals

On spec Office

20

Real Estate Risk Premium Evolution

French Investment Market

0

2

4

6

8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Real Estate Premium 10 year risk free rate

Real Estate Risk Premium

=

150 basis points

Prime initial yields

Paris CBD : 4,5 – 5,75 %

Paris excluding CBD : 5,25 – 6,5 %

West CBD : 5,5 – 7 %

THANK YOU!!