Real Estate Development Case Presentation

1. Great Eastern Center Daniel Mandel, Nurulauni Saniman, Maike Zhang, Yuhua Zhou

2. G r e a t E a s t e r n C e n t e r Vision & Investment Overview M Project Summary: • $228MM Total Project Budget • $174MM from Debt; $54MM from Equity • 26% IRR & 6.69x EM Equity Summary: • $46MM from Fund; $5MM from JV Developer • $3MM from Firm • 23% Fund IRR; 5.43x EM

3. Value Creation: • Land scarcity in CBD • Increase demand for class A office • Parking deficit will lead to development opportunity • City will provide 0% interest loan • New tenants will pay higher rent and increase NOI G r e a t E a s t e r n C e n t e r Vision & Investment Overview M

4. G r e a t E a s t e r n C e n t e r Vision & Investment Overview M Project Summary: • $228MM Total Project Budget • $174MM from Debt; $54MM from Equity • 26% IRR & 6.69x EM Equity Summary: • $46MM from Fund; $5MM from JV Developer • $3MM from Firm • 23% Fund IRR; 5.43x EM

5. Location Sensitivity Analysis Site Proposal Partner Proposal Deal Structure Conclusion G r e a t E a s t e r n C e n t e r

6. Location & Market Analysis • CBD in the capital of Atlantis, good access to airport • Fast population growth (20 million as of now) • Politically stable country • High GDP growth of 10.5% for the next 5 years • Currency predicted to be weaker in the near future • High demand for office buildings

7. Risk & Opportunities • Political Risk • Currently stable • Assurance of local embassy • Currency Risk • Predicted to be weaker • Unproductive and Corrupt Working Environment • Local expertise Risks G r e a t E a s t e r n C e n t e r Opportunities • Dire need for more parking in the CBD area • Rapid economic growth • Influx of international companies • Rent growth • Increasing demand for office in CBD areas

8. Sensitivity Analysis Partner Proposal Deal Structure Conclusion G r e a t E a s t e r n C e n t e r Site Proposal Location

9. DEVELOPER’S PROPOSAL • Acquisition price of $186MM • $166MM for existing buildings • $20MM for additional land • A) Buy and divide the property and liquidate the development site • Land has a negative value at acquisition according to feasibility analysis • Land will appreciate quickly due to scarcity • B) Buy and hold without additional capital improvements • More value creation through development • C) Buy and develop the property with a second building A B NO NO C YES

10. Buy and develop the property with a second building Parking Government’s financial support of 0% interest loan High demand for parking due to government support 23% IRR Office High cost of development Negative land value Negative IRR Both 18% IRR DEVELOPER’S PROPOSAL

11. Current Year 10Current Year 1 Year 10 New Parking Structure Opens Current Existing Office Leases all at Market Rent Year 8 Buy Site and start building parking Current Sell Site 10 Year Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Project Timeline G r e a t E a s t e r n C e n t e r

12. • 6-story above-grade parking • 504,000 sqft • 1,440 parking spots • 18,000 sqft green space SITE PROPOSAL

13. Proposed Site Design

14. Proposed Site Design Existing Office Existing Parking New Parking New Greenspace

15. Proposed Site Design

17. PARTNER PROPOSAL • Local developer with expertise in local construction and development • Connections with local brokers and local politicians • High local reputation • Past collaboration yielded high returns for the fund • Experienced project/construction manager • Will hire local firms for property management in the future Oceanic Global Real Estate Opportunity Fund Alex Richmond Co., Local Developer JV Partnership

18. Debt Financing 8.5% 30-year amort, 15-year term; 15% recourse 80% of purchase price $145.5MM Acquisition Loan 0.0% interest 25-year amortization Hard cost for parking $28.8MM City Loan G r e a t E a s t e r n C e n t e r

19. 76% ProjectF U N D I N G Equity Fund & JV & Firm 24% Sources of Capital & Total Project Returns F U N D I N G $145.5MM acquisition loan from APRB and $28.8MM city loan G r e a t E a s t e r n C e n t e r Firm

20. 85.5% 9.5% 76% F U N D I N G Sources of Capital & Total Project Returns Equity F U N D I N G Fund Equity G r e a t E a s t e r n C e n t e r Firm JV Developer

21. Sources & Uses Sources ($US) % Sources % Ownership Total Acqusition Loan from APRB 63.8% $145,556,321 City Loan 12.6% $28,800,000 JV & Fund 22.4% 95.0% $51,111,354 Fund 20.2% 85.5% $46,000,219 JV 2.0% 9.5% $4,600,022 Firm 1.2% 5.0% $2,690,071 Total Sources ($US) 100.00% 100.0% $228,157,746 Uses ($US) Total Acqusition Price $185,658,573 Land Acquistion $19,658,097 Existing Structure Acquistion $166,000,475 New Parking Building Construction Costs $35,136,000 Hard Costs $28,800,000 Soft Costs $5,760,000 Contingencies $576,000 Developer fee $1,054,080 Leasing Commissions $6,309,094 Total Uses ($US) $228,157,746

23. Equity Cash Flow Distributions LP receives 0% until Fund’s hurdle is met 15% IRR 100% Oceanic Fund Tier 1 Oceanic Fund LP receives 30% thereafter Remaining 70% Tier 2 G r e a t E a s t e r n C e n t e r

24. 85.5% 9.5% Equity Returns Breakdown by Parties Equity Fund Equity 23% IRR and 5.43x EM 48% IRR and 30.67x EM G r e a t E a s t e r n C e n t e r 5.0% Firm 23% IRR and 5.43x EM JV Developer

25. G r e a t E a s t e r n C e n t e r G r e a t E a s t e r n C e n t e r

27. G r e a t E a s t e r n C e n t e r

28. G r e a t E a s t e r n C e n t e r

30. Risk Mitigation • Local developer has ties with politicians • Project supported by local government Political Risk + • JV partnership with local experienced developer • Aligned incentives Distant Investment + G r e a t E a s t e r n C e n t e r Corrupt and Unproductive Working Environment + • Compliance with international business standards • Experienced developer who knows how to work with uncertainties

31. Vision Market Analysis Site Proposal Timeline Sources of Capital Equity Cash Flow Distribution Equity Returns Sensitivity Analysis Risk Mitigation Questions? G r e a t E a s t e r n C e n t e r

32. INVEST WITH US

33. NewStructure Dimensions F Length 700 Width 120 Total Area F 84000 New Parking Total Stories 6 Total Gross New Parking Sqft 504000 Total Spots 1440 New Office Length 254 Width 120 Total F 30480 Total Stories 20 Total Gross Office 609600 Land Utilization (Constraint) Existing Structures Value Max Gross Office with FAR Constraint 1423884 Max New Gross Office 610489 Parking to Satisfy New Office 1221 Sqft of New Parking 427350 Total Gross New Parking Sqft 504000 Excess New Parking 76650 Spots 219 Existing Structures Value Existing Office Value NOI $10,593,136 Cap 11.5% Value $92,114,225 Existing Parking Monthly Rate $250 Expense Ratio 15% Spots 1830 Vacancy 95% NOI $4,433,175 Cap 6.0% Value $73,886,250 TOTAL VALUE $166,000,475 Rate 8.5% 10% Amortization 30 I-O WACC Calcualtion New Office Acqusition loan equity construction loan WACC Calculation for Parking City Loan Acqusition loan equity construction loan 80% 20% % Used 9.23% 15% 9.50% Rate % of total 4% 10.41% 15% 9.50% Rate %Total Cost Parking Construction Hard Cost $28,800,000 80% Land 10% Parking Construction all else $7,390,080 20% Building 90% Total Parking Construction Cost $36,190,080 WACC 10.6% WACC 6.25% 8.00% 9.23% 2.00% 15% 72.00% 9.50% 18.00% 15% 100.00% 0.105781569

34. Build Open Stabilized New Office Land Price Calcualtion Current 1 2 3 4 5 6 7 8 9 10 New Rent 2.6 2.73 2.8665 3.009825 3.16031625 3.318332063 3.484248666 3.658461099 3.841384154 4.033453362 4.23512603 New Vacancy 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% New Expense Ratio 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% NOI $12,286,610 $12,900,940 $13,545,987 $14,223,287 $14,934,451 $15,681,174 $16,465,232 $17,288,494 $18,152,919 $19,060,565 $20,013,593 WACC 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% 10.6% Budget $116,150,762.22 $121,958,300.34 $128,056,215.35 $134,459,026.12 $141,181,977.43 $148,241,076.30 $155,653,130.11 $163,435,786.62 $171,607,575.95 $180,187,954.75 $189,197,352.48 New Parking Monthly Rate $250 $263 $276 $289 $304 $319 $335 $352 $369 $388 $407 Expense Ratio 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% Spots 1440 1440 1440 1440 1440 1440 1440 1440 1440 1440 1440 Vacancy 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% NOI $3,796,200 $3,986,010 $4,185,311 $4,394,576 $4,614,305 $4,845,020 $5,087,271 $5,341,635 $5,608,716 $5,889,152 $6,183,610 WACC 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% Budget $60,775,958 $63,814,756 $67,005,493 $70,355,768 $73,873,556 $77,567,234 $81,445,596 $85,517,876 $89,793,770 $94,283,458 $98,997,631 Currency Exchange rate 1 1.05 1.1 1.15 1.17 1.2 1.22 1.24 1.25 1.27 1.29 Total Budget ($US) $176,926,720 $176,926,720 $177,328,826 $178,099,821 $183,808,149 $188,173,592 $194,662,337 $201,374,831 $208,318,791 $215,502,197 $222,933,308 Development Cost ($US) $166,416,701.81 $163,246,860 $155,826,548 $149,051,481 $146,503,592 $142,841,002 $140,730,052 $138,650,297 $136,601,278 $134,582,540 $132,593,635 TI ($US) $28,666,440 $27,301,371 $26,060,400 $24,927,339 $24,501,231 $23,888,700 $23,535,665 $23,187,847 $22,845,170 $22,507,556 $22,174,932 LC ($US) $2,580,188.08 $2,580,188.08 $2,586,052.15 $2,597,295.85 $2,680,542.51 $2,744,205.40 $2,838,833.17 $2,936,723.97 $3,037,990.31 $3,142,748.60 $3,251,119.24 Land ($US) ($20,736,609.97) ($16,201,699.46) ($7,144,174.10) $1,523,705.27 $10,122,783.12 $18,699,684.34 $27,557,786.88 $36,599,962.61 $45,834,352.68 $55,269,352.41 $64,913,620.54

35. New Parking Monthly Rate 250 Expense Ratio 0.15 Spots 1440 Vacancy 0.95 NOI $3,488,400.00 WACC 6.25% Budget $55,848,177.35 Currency Exchange rate 1 Total Budget ($US) $55,848,177.35 Development Cost ($US) $36,190,080.00 TI ($US) LC ($US) Land ($US) $19,658,097.35

36. Build Open Stabilized Year 1 2 3 4 5 6 7 8 9 10 Annual CBD Market Rent psf $32.76 $34.40 $36.12 $37.92 $39.82 $41.81 $43.90 $46.10 $48.40 $50.82 Existing Building Expense Rate 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% New Building Expense Rate 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Annual CBD Parking Rate $3,000 $3,150 $3,308 $3,473 $3,647 $3,829 $4,020 $4,221 $4,432 $4,654 Expense Rate 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% Annual CBD In place rent psf $21.17 $22.23 $23.34 $24.50 $25.73 $27.02 $28.37 $29.79 $31.27 $32.84 Proforma Existing Office Total Occupied Space Begin Year 618,180 580,453 554,160 538,193 531,671 533,920 544,442 562,899 589,101 618,180 Total Occupied Space less New Vacancy 525,453 493,385 471,036 457,464 451,921 453,832 462,776 478,464 500,736 525,453 Absorption 55,000 60,775 67,156 74,208 82,000 90,610 100,124 110,637 117,444 92,727 Total Occupied Space End Year 580,453 554,160 538,193 531,671 533,920 544,442 562,899 589,101 618,180 618,180 New Office Total Occupied Space Begin Year 260,604 312,129 366,230 423,036 482,682 521,208 521,208 521,208 Total Occupied Space less New Vacancy Absorption 51,525 54,101 56,806 59,646 38,526 0 0 0 Total Occupied Space End Year 312,129 366,230 423,036 482,682 521,208 521,208 521,208 521,208 Existing Office Gross Sqft Paying In Place Rent 525,453 438,385 355,261 274,532 194,782 114,694 33,027 0 0 0 Gross Sqft Paying Market Rent 55,000 115,775 182,931 257,139 339,139 429,748 529,872 589,101 618,180 618,180 In Place Annual Rent $11,122,793 $9,743,725 $8,290,986 $6,727,305 $5,011,698 $3,098,598 $936,888 $0 $0 $0 Annual Market Rent $1,801,800 $3,982,428 $6,607,097 $9,751,693 $13,504,501 $17,968,202 $23,262,190 $27,155,552 $29,920,812 $31,416,853 Existing Office Total Rent $12,924,593 $13,726,153 $14,898,083 $16,478,999 $18,516,199 $21,066,799 $24,199,078 $27,155,552 $29,920,812 $31,416,853 New Office Gross Sqft Paying Market Rent 0 0 0 312,129 366,230 423,036 482,682 521,208 521,208 521,208 New Office Total Rent 0 0 0 $11,837,108 $14,583,265 $17,687,546 $21,190,491 $24,025,922 $25,227,218 $26,488,579 Total EGI Office $12,924,593 $13,726,153 $14,898,083 $28,316,107 $33,099,464 $38,754,345 $45,389,569 $51,181,474 $55,148,030 $57,905,431 Other Revenue Existing Parking Revenue $5,215,500 $5,476,275 $5,750,089 $6,037,593 $6,339,473 $6,656,446 $6,989,269 $7,338,732 $7,705,669 $8,090,952 NewParking Revenue $4,104,000 $4,309,200 $4,524,660 $4,750,893 $4,988,438 $5,237,860 $5,499,753 $5,774,740 $6,063,477 $6,366,651 Total Parking Revenue $9,319,500 $9,785,475 $10,274,749 $10,788,486 $11,327,910 $11,894,306 $12,489,021 $13,113,472 $13,769,146 $14,457,603 Total Income Before Expenses $22,244,093 $23,511,628 $25,172,831 $39,104,593 $44,427,375 $50,648,651 $57,878,591 $64,294,946 $68,917,176 $72,363,035 General Operating Expense $1,938,688.91 $2,058,923 $2,234,712.41 $4,247,415.98 $4,964,919.62 $5,813,152 $6,808,435 $7,677,221 $8,272,204 $8,685,814.72 General Parking Expense $698,963 $733,911 $770,606 $809,136 $849,593.29 $892,073 $936,677 $983,510 $1,032,686 $1,084,320 LC Old $387,737.78 $411,784.59 $446,942.48 $494,369.96 $555,485.97 $632,003.97 $725,972.35 $814,666.55 $897,624.36 $942,505.58 LC New $0.00 $0.00 $0.00 $355,113.24 $437,497.96 $530,626.39 $635,714.73 $720,777.65 $756,816.54 $794,657.36 Asset Management Fee included in expenses Total Expense $2,637,651.41 $2,792,833.60 $3,005,318.56 $5,056,552.45 $5,814,512.90 $6,705,224.76 $7,745,112.00 $8,660,731.46 $9,304,890.45 $9,770,134.97 NOI $19,606,441 $20,718,795 $22,167,513 $34,048,040 $38,612,862 $43,943,427 $50,133,479 $55,634,214 $59,612,286 $62,592,900

37. Existing Parking New Parking Year 10 Revenue $8,090,952 $6,366,651 Year 10 Expenses 8% $606,821 $477,499 Year 10 NOI $7,484,131 $5,889,152 cap rate 5.00% 5.00% Value $149,682,618 $117,783,043 $267,465,661 Original Basis $73,886,250 $42,499,174 Land Basis $2,098,778 Capital Gains $75,796,368 $73,185,092 Value Add Tax 7.50% $5,684,728 $5,488,882 $11,173,610 Currency Exchange rate 1.29 Acqusition Loan from APRB in $US $124,839,753 In $A City Loan $17,280,000 Total Reversion $714,137,199 Construction Loan from APRB $156,066,513 Tax $24,188,876 Debt Service $298,186,267 Value $391,762,056 Value ($US) $303,047,645 Return of Capital ($US) $89,348,608 Return of Capital Leftovers $213,699,037 Fund Leftover $149,589,326 Firm Leftovers $64,109,711

38. ***In $US Currency Exchange rate 1 1.05 1.1 1.15 1.17 1.2 1.218 1.23627 1.25481405 1.27363626 1.292740805 EM IRR Fund $49,154,708 $4,848,430 $5,588,716 $29,183,975 $4,038,776 $5,564,354 $11,470,223 $14,805,639 $17,655,431 $19,580,891 $206,425,631 5.305578 18.76% Firm $4,749,481 $345,647 $380,497 $1,453,399 $293,755 $2,463,881 $815,859 $2,305,913 $3,586,948 $4,470,957 $58,362,628 15.06958 34.03% ***In $A Operation MC Owners CF % CF CUM Ret CF % CF CUM Ret CF % CF CUM Ret CF % CF CUM Ret Acqusition Loan from APRB 9.23% $140,898,607 $13,000,661 92% 9.2% $0 0% 9.2% $0.00 0% 9.2% $0.00 0% City Loan 4.00% $28,800,000 $1,152,000 8% 4.0% $0 0% 4.0% $0.00 0% 4.0% $0.00 0% Construction Loan from APRB 9.50% $156,066,513 $0 0% 0.0% $0.00 0% 0.0% $0.00 0% 0.0% $0.00 0% Fund $90,240,148 95% $0 0% 0.0% 0 0% 0.0% $13,536,022.22 95% 15.0% $0.00 70% Firm $4,749,481 5% $0 0% 0.0% $94,989.63 100% 2.0% $712,422.22 5% 17.0% $0.00 30% $14,152,661 $94,990 $14,248,444 Total $14,152,661 $14,247,650 $28,496,095 2nd rule: Equity Managmeent Fee 2% 1st rule 3rd rule 4th rule Debt Service 15% 15%+ ***In $A Operation MC Owners CF % CF CUM Ret CF % CF CUM Ret CF % CF CUM Ret CF % CF CUM Ret Acqusition Loan from APRB 9.23% $140,898,607 $13,000,661 45% 9.2% $0 0% 9.2% $0.00 0% 9.2% $0.00 0% City Loan 4.00% $28,800,000 $1,152,000 4% 4.0% $0 0% 4.0% $0.00 0% 4.0% $0.00 0% Construction Loan from APRB 9.50% $156,066,513 $14,826,319 51% 9.5% $0.00 0% 9.5% $0.00 0% 9.5% $0.00 0% Fund $90,240,148 95% $0 0% 0.0% $0.00 0% 0.0% $13,536,022.22 95% 15.0% $0.00 70% Firm $4,749,481 5% $0 0% 0.0% $94,989.63 100% 2.0% $712,422.22 5% 17.0% $0.00 30% $28,978,979 $94,990 $14,248,444 Total $28,978,979 $29,073,969 $43,322,413 1st rule 2nd rule Debt Service +Construction Loan 2% 3rd rule 4th rule 15% 15%+ ***In $A 0 1 2 3 4 5 6 7 8 9 10 EM IRR Acqusition Loan from APRB $140,898,607 $13,000,661 $13,000,661 $13,000,661 $13,000,661 $13,000,661 $13,000,661 $13,000,661 $13,000,661 $13,000,661 $137,840,414 8.46% City Loan $28,800,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $1,152,000 $18,432,000 0.00% Construction Loan from APRB $0 $0 $0 $156,066,513 $14,826,319 $14,826,319 $14,826,319 $14,826,319 $14,826,319 $14,826,319 $170,892,832 9.50%

39. Existing Gross Office 813395 Hard Costs 175 $142,344,125.00 Soft Costs (of hard, TI, parking) 20% $43,924,170.00 Contingencies ( of hard and soft) 10% $18,626,829.50 Parking 20000 $32,540,000.00 Developer fee 3% $9,120,563.41 Tenant improvments $55 $44,736,725.00 Tax 7.50% $21,846,930.97 Total $313,139,343.88