WellmanINDUSTRIAL

PARK

Informative Memorandum

July 2015

DisclaimerWellman Logisticsis hereby offering you an opportunity to acquire logistic park (hereinafter: the “Property”) on the conditions stated in this memorandum (hereinafter: “Informative Memorandum”).This confidential Informative Memorandum has been prepared in order to distribute this document to limited number of potential investors who may be interested in acquiring the Investment Property. This Informative Memorandum is not a public tender and any and all information stated in this Informative Memorandum is meant only for an addressee and limited circle of interested parties. This Informative Memorandum includes only initial information about the Investment Property. The information about the Property stated in this Informative Memorandum was correct at the time of distributing this document and is not misleading. Wellman Logisticsis not obliged to update, correct or amend the information stated in this Informative Memorandum and is not responsible for any use or interpretation of the information stated in the Informative Memorandum. Wellman Logistics shall not pay or compensate to any party any fees or expenses related to evaluation of the Informative Memorandum, or related to actions on the basis of this Informative Memorandum, or related to the relevant transaction in any other way.The information stated in the Informative Memorandum is meant to be used as general information and includes some summaries and general data that are prepared in order to introduce the Property. These summaries and general data must not be taken as final, and some issues significant or relevant to an interested party may not be mentioned. 2

Investment OpportunityThe Potential Investor is offered to buy an A class logistics complex in Latvia (hereinafter the “Property”) through the acquisition of   SIA Wellman Logistics.

The Company

SIA Wellman Logistics (www.wellman.lv) is a company with two main profiles : 1.building, development and rental of the Property 2.logistics services provided to its customers, using the the Property. SIA Wellman Logistics belongs to the Wellman PLC (OÜ Wellman www.wellman.ee).

Shareholders/Group

Wellman PLC (OÜ Wellman) was established in  1992. The company initially started as official representative of L`OREAL Group in Baltic States in the years 1992-2004. Wellman PLC is a holding company for various investments incl. logistics services, development of logistics parks, automotive business, financial services, incasso services, information technology and real-estate.

3

Key Investment Considerations• Well located newly built existing logistics property• Flexible and efficient floor layout and technical solutions• Compliance to A class international standards• Entrance nearly at substitution cost• Important local employer with good connections to local government• Future capital appreciation and increase in revenues• Existing cheap loan facility• Additional upside /value add through a development of the phase 2 of the

logistics park• All engineering infrastructure in place• Developed transport and social infrastructure in the neighborhood

4

Location• Location in the middle of the Baltic

States with a convenient and short reach to Tallinn and Vilnius

• Convenient location in Salaspils• Short distance and good connections

to Riga ring road and E67 highway/Via Baltica route, as well as to Riga city center

• Major railways network nearby• Availability of low cost and

experienced labor force (ca 25 000 inhabitants in the neighborhood)

5

Tallinn – Salaspils, Riga - Vilnius4h / 300km 4h / 320km

Location

6

The Property• Address – Krasta str.3/1, Salaspils, Latvia• Land Plot Area – 50 000 m2

Existing Tenants:

• Schneider Electric – 2203 m2 Warehouse – 2049 m2• Office – 154,1 m2• Wellman – Warehouse - 4313,1 m2 +1726,7• Office - 426 m2 • CWS Boco – 1936, 42 m2 Warehouse – 1763, 52 m2 • Office – 172,9 m2 • Depona – Warehouse 2101 m2 • Office – 114,8 m2

7

The Property

Existing Building:

• Address – Krasta str.3/1, Salaspils, Latvia• Gross Leasable Area – 12 987,1 m2• Warehouse Area – 12 027 m2• Offices – 960,1 m2 (7%)• Number of parking places:• Passenger vehicles - 55• Trucks - 20• Current occupancy – 100 %• Developer: SIA Wellman Logistics• Commissioning time: 2008

8

Technical Description• Effective height up to the frames

9.5 m• Floor loading: 3.5 tons/m2• Loading/unloading: 13 gates + 2

of them ramps• 5 warehouse sections, each with

2-3 loading docks• 1.5 m high outer wall of three-

layered insulated reinforced concrete

• Three-layered 150 mm sandwich panels with mineral wool filling in the upper part

• Floors of the warehouse cast in 180 mm fiber concrete

• Single point load Q= 4.5 to. Forklift truck capacity 3.5 t (full weight).

• Heat production in gas boiler house(Oertli German boilers)

• Sections heated by water-air calorifiers Hoval 9

• Ventilation extraction system in sections

• Ventilation and conditioning central unit for 3-rd floor office

• Hörmann 3 x 3 meters electric gates

• Hörmann 4 meters long loading ramps

• Glamox GIR T5 quality lighting in all sections

• Hymo lifts for loading small transport

• Fire systems; sensors, alarms, extinguishers, water connection stations, automatic sprinkler system according to NFPA standards in sections 1 and 2, alarm signal to security, 2 reservoirs (1150 m3 of water), and a pump station

• Security: 24h security point with guard, with 16 perimeter cameras and 2 controllable cameras, infrared movement sensors on the perimeter, 2 m high mesh fence around the area, K9 presence.

Building Layout – Phase I

10

Extension – Phase II• Gross Leasable Area – 10 393 m2• Warehouse Area – 9 643 m2• Offices – 750 m2 (7%)

11

Cash Flow

12

  EXISTING SHORT/MID TERM POTENTIAL

LONG TERM POTENTIAL

(after Extension)

Land size, m2 50 001 50 001 50 001GBA, m2 13 022 13 022  24 327GLA, m2 12 707 12 707 23 380,10Occupancy, % 100 % 100 % 90%Annual Rent Income, EUR 573 311 573 311 1 137 874

Annual Management & Maintenance Fees collected, EUR

106 744 106 744 195 480

Annual Non-recoverable Costs, EUR

75 544 75 544 113 844

Pre Tax profit, EUR 604 511 604 511 1 219 522

Current Debt Liabilities• Financing Bank – SWEDBANK• Outstanding debt – EUR 3 200 000• Loan maturity – 2016• Interest rate – 3M EURibor + 2,702%• Payment Schedule – 15 years annuity• Monthly payment – ca 29 300 EUR• Collateral – the Property

13

14

15

16

17

18

19

20

21

Further ProceedingsWe will be happy to answer any of your questions. All inquiries regarding the

Investment Property, or any information contained in this Informative Memorandum, as well as indicative bids are to be directed to:

22

Ivo TahkMember of the Board

Wellman LogisticsKrasta 3/1 Salaspils LV 2169

Mob +372 50 48287ivo@wellman.lv