www.atisreal.ro

Property Particulars

BUCHAREST REAL ESTATE MARKET

2

CONTENT

About Atisreal

Bucharest Real Estate Market

Office Market Retail Market Investment Market Residential Market

3

Atisreal International Key Figures (2007)

Established in 2000

A subsidiary of BNP Paribas Real Estate

Present in 10 European countries in Middle East, India and New York

Number of direct offices: 67

Number of transactions: 5,100 (one transaction every 12 minutes)

Staff: 2,400

Gross Turnover : € 431 million

Number of valuations: 86,000

€11 billion of investment transactions

4

Atisreal RomaniaKey figures 2007 Started operations in 2001 under another international name

January 2008 acquired by Atisreal

Staff: 30

Number of clients: Approx. 1,800 companies – Landlords, Investors, End

Users

Average annual growth (2002-2007): ~60%

50 office deals of 500 sq m minimum size

Over 500 valuation and consulting instructions

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OFFICE MARKETOFFICE MARKET

6

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006 2007

Thou

sand

sq m

New Refurbished •Total office stock (class A + B): 1,500,000 sq m of which 37% is represented by Class A offices

• Northern submarket has witnessed the strongest development activity

•Strong development activity during 2007: 312,000 sq m of offices delivered, of which 155,000 sq m are class A

SUPPLYSUPPLY

Annual completions of modern office stock

Source: Atisreal RomaniaSource: Atisreal Romania

7

Existing office stock by building size

16%

10%

47%

9%

18%

<=2.500 mp

2.501-5.000 mp

5.001-7.500 mp

7.501-10.000 mp

> 10.000 mp

The market is shifting towards large, high quality premises

The volume of Class B offices has decreased by 19% compared to 2006 while refurbished offices accounted only for 6.5% of the added stock

The office stock has remained focused in the northern and central submarkets, while other locations account for around 22% of completions in 2007.

The western part of Bucharest is expected to emerge as one of the most active submarkets (please see next slide)

Source: Atisreal RomaniaSource: Atisreal Romania

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Office submarkets

Existing stock

1. Central-north and northern submarket

900,000 sq m

2. Central submarket

390,000 sq m

3. Eastern submarket

62,000 sq m

4. Southern submarket

21,000 sq m

5 Western submarket

125,000 sq m

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Office take-up

Back-operation centers dominate demand for Class B Offices

Occupier expansion and relocation of medium size and large companies – key drivers of Class A demand

Class A vacancy rate (Q4 2007): 1,0%

0306090

120150180210240270300

2002 2003 2004 2005 2006 2007

Tho

usan

d sq

m

Class A Class B

0

2

4

6

8

10

12

14

16

18

20

2001 2002 2003 2004 2005 2006 2007

%

Total vacancy Class-A vacancy

Office vacancy rates

DEMANDDEMAND

Total take-up in 2007: 435,000 sq m, of which

•Class A: 243,000 sq m•Class B: 192,000 sq m

Pre-leases in 2007: 185,000 sq m

Source: Atisreal RomaniaSource: Atisreal Romania Source: Atisreal RomaniaSource: Atisreal Romania

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Office rents

0

5

10

15

20

25

30

35

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Eur

o/sq

m/m

onth

Class A Class B

During 2007 the average prime office rents increased to approximately Euro 21.0-22.0/sq m/month

Quality Class B buildings rents are currently ranging between Euro 14.0-16.0/sq m/month and between Euro 12.0-14.0/sq m/month for less attractive Class B space range

Source: Atisreal RomaniaSource: Atisreal Romania

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Average A&B Class rents by location:

1. Central-north and north: Euro 20.0-22.0/sq m/month (central-north) Euro 16.0-

20.0/sq m/month (north)

2. Central: Euro 22.0-24.0/sq m/month up to Euro 26.0/sq m/month

3. East: Euro 10.0-16.0/sq m/month

4. South: Euro 12.0-14.0/sq m/month

5. West: Euro 12.0-15.0/sq m/month

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Proposed office supply 2008-2010

0

100

200

300

400

500

600

700

800

2008 2009 2010

Thou

sand

sq

m

Class A Class B

By the end of 2008 office stock is expected to reach around 1,9 million sq m as a result of almost 410,000 sq m of offices planned for completion

Around 250,000 sq m of Class A offices are due to be completed this year

The shortage of supply will continue in 2008, as 43% of the proposed supply is already pre-leased

The proposed supply for 2008 will be mainly located in the northern submarket (40%), while the western submarket will count for 67,000 sq m reflecting further market decentralization.

Source: Atisreal RomaniaSource: Atisreal Romania

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RETAIL MARKETRETAIL MARKET

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Existing retail supply by type

Source: Atisreal RomaniaSource: Atisreal Romania

16

15

63

76

84

131

135

191

200

210

0 25 50 75 100 125 150 175 200 225

Discount stores

Supermarkets

Department stores

Cash&Carry

Shopping Centres

Do-it-yourself

Shopping Galleries

Hypermarkets

Malls

On street units

Thousand sq m

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1999 - Bucuresti Mall

Developer: Anchor MallInvestment: $ 50 millTotal surface: 52,687 sq m, of which 28,000 sq m leasable spaceNo of floors: Fountain level, Street Level, Fashion and Food & Fun Gardens Level, MediaGalaxy LevelNo of stores: 105

2004 - Plaza Romania Developer: Anchor MallInvestments: Euro 55 millionTotal surface: 104,000 sq m, of which 42,000 sq m leasable spaces Parking spaces: 2,400 placesNo floors: 5 No stores: 152

1976 – Unirea Shopping Center Developer: S.C.D.M.A.I. UNIREA S.A.Investments: Total surface: 84,000 sq m (44,000 sq m shopping area) and 14 000 sq m storage area.Parking spaces: 1,000 placesNo floors: 3No stores: 225

2005 – City Mall

Developer: Jaguar Development/Sirius InvestitiiInvestments: N/ATotal surface: 14,400 sq m lettable areaParking spaces: 400No floors: B+GF+3No stores: 103

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Asking rents by location for on-street units Proposed modern shopping facilities in Bucharest

0 30 60 90 120 150

Prime

Secondary

Peripheral

Euro/sq m/month

Source: Atisreal RomaniaSource: Atisreal Romania

NameGLA(sq m)

Proposed completion date

Baneasa Shopping City 85,000 2008

Liberty Mall 26,000 2008

Grand Arena 40,000 2009

Sun Plaza 76,600 2009

Controceni Park 53,000 2009

Promenada 33,000 +2010

Colosseum 120,000 +2010

Esplanada 40,000 +2010

Sema Park 100,000 +2010

Casa Radio project N/A +2010

Galeria Bucharest 57,000 +2010

Metropola Centre 37,000 +2010

TOTAL proposed retail stock ~ 667,600

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INVESTMENT MARKETINVESTMENT MARKET

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Investment transactions by

market segment in 2007

Investment transactions - Evolution

71%

19%

2%8%

Office Industrial Residential Hotel

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007

Inve

stm

ent v

alue

(mil

Eur

o)

Office Industrial Retail Residential Hotel

Source: Atisreal RomaniaSource: Atisreal Romania

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Investors by nationality

31%

4%

7%27%

16%

15%

Austria Greece IsraelUK France Germany

Main investment transactions in 2007

Q Property UseSize

(sq m)Buyer

Yield(%)

1 UPC Building Office 5,300 City Capital 7.4

1 S-Park Office 30,800 Immoeast 6.9

1 Evocentre Office 3,200 Fabian 8.5

1 Logistic facility Industrial 9,000Eastern

European Property

10.0

2 Cubic Centre Office 44,000 Fabian 7.4-7.8

2 Baneasa BC Office 9,600 Fabian 7.7

3 Construdava I Office 9,200 DEGI 7.2

3 Millennium BC Office 14,800 DEGI 6.4

3 America House Office 27,000 Ixis 5.6Source: Atisreal RomaniaSource: Atisreal Romania

20

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2003 2004 2005 2006 2007

Offi

ce

Indu

stria

l

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Ret

ail

Office Industrial Retail

Yields by market segments

The local investment market is still attractive for international investors and should be less affected by the U.S. subprime crisis.

Strong market fundamentals: low vacancy rate, high demand coming from international tenants, stable rentals with potential for growth.

Although the lack of transactional evidence in Q1 2008 is making accurate pricing difficult, it is clear that prime office yields are moving towards the levels recorded in H2 2006 (7-7,25%).

Source: Atisreal RomaniaSource: Atisreal Romania

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RESIDENTIAL MARKETRESIDENTIAL MARKET

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Annual completion of housing units

0

2,000

4,000

6,000

8,000

10,000

12,000

2000 2001 2002 2003 2004 2005 2006 Q3 2007

Bucharest Ilfov County

Qualitative indicators of the residential stock - Bucharest

2000 2002 2004 2006

Number of existing rooms - thousands 1,879 1,890 1,900 1,912

Living floor/room – sq m 14.64 15.83 15.87 15.91

Living floor/person – sq m 13.69 15.47 15.64 15.76

Residential stock characteristics as at Q12007 - Bucharest

Number of housing units 785,696

Number of rooms 1,912,186

Total surface – sq m 30,432,532

Number of rooms / housing unit 2.43

Living surface / room – sq m 15.91

Living surface / housing unit – sq m 38.73

Inhabitants / housing unit 2.45

Inhabitants / room 1.0

Source: National Institute of StatisticsSource: National Institute of Statistics

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0

3,000

6,000

9,000

12,000

15,000

2001 2002 2003 2004 2005 2006 Q3 2007

RO

N m

illion

s

Loans granted for real estate purchase

Source: National Bank of RomaniaSource: National Bank of Romania

25%

40%

30%

5%

Studios

1 bedroom

2 bedrooms

3 bedrooms or more

Demand structure on apartment submarket

2005200019951990198519801975197019651960

22,0

20,0

18,0

16,0

14,0

12,0

10,0

8,0

Negative natural increasePositive natural increase

Footnote

Evolution of population natural increase

Source: National Institute of StatisticsSource: National Institute of Statistics

Source: Atisreal RomaniaSource: Atisreal Romania

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