Capability Presentation July 2019 www.sierrabalmain.com Contents - - PowerPoint PPT Presentation

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Capability Presentation July 2019

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Contents Sierra Balmain Overview History Clients and Portfolio Core Services

Galeria Pomorska, Bydgoszcz Purchased 2004, extended 2016

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Overview of Sierra Balmain

Sierra Balmain is central Europe’s foremost real estate services platform with a true focus on real estate as multi- functional destinations With a deep-rooted, decades-long experience

• f

global shopping centre experience combined with cutting edge thinking and actual delivery of modern experiential real estate, Sierra Balmain is perfectly poised to bridge the existing environment to the biggest change in retail real estate since the introduction of the covered mall in the 1950’s Sierra Balmain is a premier services business that brings together the market-leading CEE specialist real estate asset manager and service provider, Balmain Asset Management with the highly regarded and successful international real estate company, Sonae Sierra.

Logistics Culture Workspace Lifestyle Entertainment Retail Leisure

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Overview of Sierra Balmain

Sierra Balmain has successfully provided service to, and executed transactions with, dozens of Europe’s largest and most well-known investors. Globally the Sonae Sierra group provides services to clients in geographies as diverse as Portugal, Algeria, Brazil, Colombia, Germany, Greece, Italy, Morocco, Romania, Russia, Slovakia, Spain, Tunisia and Turkey. Sonae Sierra owns or has a stake in 42 properties out of the 92 they manage with a market value of about €7.5 billion and manages and/or leases 79 Shopping Centres with a Gross Lettable Area of 2.6 million m2 with more than 9,500 tenants. At present, Sonae Sierra has 11 projects under development. Sierra Balmain and the broader group has not

• nly

vast international coverage and experience but a detailed and long- standing success in the Central European market From long term experience in owning and managing “traditional” retail real estate to being at the forefront of cutting edge ideas and real delivery of converged real estate and technology. Creating the future, not just talking about it. Up to 99% collection rate AUM €1.27bn 15 years in the region 14 Polish Cities 1,120 Occupiers 17 Assets 110 employees 57.3m customer visits per year

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Board of Directors

James Turner – Group Managing Director Prior to establishing the Balmain Asset Management group in 2003, James held various senior positions with Westfield

• ver

a ten-year career, culminating in establishing their European shopping centre business in London in 1998. James has been directly involved with 2.7 million sqm and EUR 10.5 billion

• f shopping centre assets over his thirty-one year career in real estate.

James leads the strategy and investments for the Sierra Balmain business. Alberto Bravo – Group Director Alberto spent four years in charge of the property management and leasing activities of Spanish consultancy CCC before joining Sonae Sierra in 2000. Since then, he has held various positions within Sonae Sierra, ranging from Regional Operations Manager for southern Spain to Managing Director for Property Management and Leasing for the whole of Spain, a responsibility he took up in 2010, managing a portfolio of 14 shopping centers and more than 650k of GLA. In 2012 Alberto added the Romanian market to his specific responsibilities and in 2013 he added Greece. In 2016 he became Managing Director for Property Management and Leasing in Eastern Europe & North Africa, while maintaining the responsibility of Country Representative for Spain.

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Board of Directors

Paul Cawood – Group Director, Leasing Paul has thirty-seven years’ experience in retail property leasing, asset management and development initially in the UK with firms such as Knight Frank, Shearer Harris and Lambert Smith Hampton. Paul’s retailer contacts and direct leasing experience are extensive. He has been personally involved in leasing over sixty shopping centres. Paul joined Balmain Asset Management in April 2004 and has a wealth of market knowledge and contacts in the Central European market. Paul was the founder of the UK Shop Agents Society; he is founder and chairman of a charity for disabled children, the Elifar Foundation (www.elifarfoundation.org.uk) and is a fellow of the Royal Society for the Arts, Manufacture and Industry. Alexandre Fernandes – Group Director Alexandre joined Sonae Sierra in 1997 as Development Manager

• f

NorteShopping, later becoming the centre’s General Manager. In 2000 he was appointed Asset Manager for Portugal and in 2002 he added Greece and Romania to his portfolio. Between 2008 and 2015 Alexandre oversaw all Sonae Sierra’s real estate investments in Portugal and Spain and is now responsible for Europe.

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Board of Directors

Tim Rylance – Group Director, Management & Project Services Tim has 32 years property and asset management experience. His career started at Donaldson’s. In 2000 he joined MEPC and then specialist retail developer Thornfield. Tim has considerable experience in retail leasing and shopping centre asset

• management. Tim joined Balmain Asset Management in 2005 and oversees

Property Management, Management Accounts and Project and Technical Services. Jonathan Turner – Group Director, Finance Jonathan is the finance director for the Sierra Balmain Group, responsible for the overall financial reporting and control as well as corporate legal and tax related matters. Jonathan has over thirty two years experience in the property industry. Having originally joined Balmain Asset Management in 2005 from Westfield, Jonathan has a wealth of experience in property / portfolio acquisitions and disposals across a range of platforms and jurisdictions and has been involved in debt refinancing, restructuring as well as development finance. He has also established operational and corporate finance teams from inception including creation and implementation of financial process and procedures both with Balmain and previous employments.

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History

2003-2004 2005-2006 2007-2008 2009-2010

Balmain Asset Management LLP established Revcap LLP becomes minority shareholder BPRI JV with Europa Capital Clients / Partners Portfolio Services Corporate People JV with Investec JV with Bank of Scotland Acquired Galeria Pomorska, Bydgoszcz Galeria Butovice, Prague (AM) Sale of Galeria Pomorska Acquired Galeria Panorama BPRI acquisitions commence Acquired German portfolio Acquired BPRI portfolio Acquired 50% Galeria Panorama Family Point, Wroclaw (AM) Sell Galeria Pomorska to Resolution Property. Acquired Ferio, Konin Private client Europa Capital Babcock & Brown / GPT Investec Bank of Scotland Zwerenz & Krause Resolution Property Rockspring PIM Asset Management | Lease Management | Investment Advisory | Finance Arrangement Retail Leasing Warsaw office opened Development Management Bank Advisory 3 7 13 15

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History

2011-2012 2013-2014 2015-2016 2017

JV with NBGI for Starachowice development Balmain Property Management established Clients / Partners Portfolio Services Corporate People Charter Hall Portfolio (Leasing & Project Services) Acquired Alfa Centrum Tristan COAL Portfolio (AM) Galardia, Starachowice development commenced

• Ave. 1 leasing deal per day

Galeria Kazimierz (Leasing) Solaris, Karolinka, Pogoria (PM) Aura Centrum (PM) Sale Ferio Konin to Union Inv. Tristan Portfolio (PM) NBGI Charter Hall Tristan Capital Invesco Rockcastle Skanska Peakside Capital Project Management Tenancy Co-ordination Lease Administration Property Management Office & Industrial Agency | Capital Markets 18 60 84 100 BSC Real Estate Advisors created Corporate Accounting

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History

2018-2019

Sierra Balmain 50/50 JV with Sonae Sierra created Clients / Partners Portfolio Services Corporate People Acquisition of Galeria Malta Sale of BPRI Portfolio, Family Point and Aura Olsztyn. Sonae Sierra Debt work out, logistics 110

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Clients and Portfolio

Past and Present Clients

GROUP ASSET MANAGEMENT LEASING PROPERTY MANAGEMENT PROPERTIES 17 13 12 10 GLA (SQ.M) 452,047 234,151 326,491 319,752 TENANTS 1,277 642 922 856 FOOTFALL (retail p.a) 57.5m 27.8m 39.8m 40.9m SALES (retail) € 374m € 246m € 246m € 323m

Portfolio Statistics

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Core Competences

Sierra Balmain is a real estate services business to its core. Steeped in experience with shopping and entertainment centres, Sierra Balmain has significant experience managing the amongst the most complex and challenging real estate assets classes to

• perate.

The strong human aspect to these buildings provides the perfect background when looking at the need for the convergence of retail, entertainment, workspace, lifestyle, culture and by extension, logistics in the present real estate environment. Sierra Balmain and the wider Sonae Sierra group provides a wide range core services across all commercial real estate asset classes Asset & Investment Management Leasing Marketing PR and digital Research** Development and Project Management* Architectural and Engineering** Restructuring & Debt Workout Sustainability strategy and delivery**

* Major schemes delivered in partnership with Sonae Sierra ** provided via Sonae Sierra

Property Management Corporate Accounting

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Asset and Investment Management

“The term “Asset Management” within Sierra Balmain refers to the establishment, implementation and execution of strategies both to protect a retail property asset and to enhance its value. It is about building both the quantity and quality of income. Each asset manager represents investor interests by overseeing all property activity such as leasing, property management and marketing, project and development, sustainability, market research, valuation, lender relations and reporting and corporate activities. Sierra Balmain’s asset managers each come from a multi-disciplined background that ensures added depth of knowledge in determining strategy.” ALWAYS TAKE THE OWNER’S PERSPECTIVE ESTABLISHMENT AND EXECUTION OF STRATEGIES BUILDING QUANTITY AND QUALITY OF INCOME OVERSEE ALL ASPECTS OF REAL ESTATE MANAGEMENT OCCUPIER FOCUSED MULTI DISCIPLINED TIMELY, ACCURATE AND INFORMATIVE REPORTING 15 YEARS OF EXPERIENCE Monika Idzkowska Director – Head of Asset Management

“We are grateful for the hard work being undertaken by all at Sierra Balmain. It was good to see the level of detail being considered and gives us great confidence that we will make progress with the business plan.”

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Property Management

“Sierra Balmain’s property management brings together elements of investment goals by translating strategy and planning into delivery. Sierra Balmain performs this across all asset classes including retail, leisure lifestyle, entertainment, culture, workspace and logistics. Sierra Balmain Property Management always takes the investor’s perspective in whatever we do. We believe in a close cooperation and understanding

• f

the investor’s goals and strategies. We keep up with the changing market conditions, also apply these to the needs of a property, its

• wners, the tenants and the customers. The property management

team benefits greatly from the broader perspective attained by constant communication within all the Sierra Balmain teams.” FOCUS ON MANAGING ALL COSTS ESPECIALLY NON-RECOVERABLE STRONG CLIENT KPI’s & REPORTING CAREFULLY EXECUTED HANDOVER & DATA MIGRATION OCCUPIER RELATIONSHIP MANAGEMENT FOCUS ON INCOME COLLECTION SUPERIOR TECHNICAL AND FACILITIES MANAGEMENT ADDITIONAL INCOME GENERATION TEAM DEVELOPMENT AND TRAINING INSTITUTIONAL REPORTING EXCEPTIONAL VALUE FOR MONEY Dorota Suchodolska Director – Head of Property Operations

“We were impressed with BSC’s professional approach, knowledge, and we are particularly impressed with their reporting capability and presentation.”

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Property Management

Particular attention is paid to advance planning, compliance with the regulations, quality of service, managing service charge budget and

• ptimization.

A balance that Sierra Balmain strikes perfectly is meeting the requirements of the current technical market trends providing high standards of service with the pressure of cutting the costs. Our teams are focussed on technologies of green management, energy saving, waste management, recycling. We also have access to Sonae Sierra’s renowned sustainability services. We have experience in supervising BREEAM in USE certification process with excellent results in asset and building management. Broader strategy and delivery within the group is available via Sonae Sierra’s innovative sustainability services team. Our skills in development and planning are also a huge advantage when it comes to extending existing buildings - from understanding complex development issues to effective local authority relations Highly experienced in FM management Facility Management Plan 5 year planned maintenance programme Specialist technical FM managers on site Professional budgeting Cost control and efficiency BREEAM & LEED

Technical and Facility Management

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Property Management

We offer integrated reporting based on profound knowledge and understanding of the business and client’s expectations with accurate data delivered rigorously to agreed deadlines is tailored to each client’s needs. Our systems and procedures allow to report on a wide variety of information produced by a property giving at the same time full flexibility in relation to the scope of information reported, way of presenting and reporting deadlines. The reporting starts immediately after information is available and builds up to the final shape and structure when all data is in

• place. The process is defined in detail and scheduled carefully in

the calendar within the reporting periods. All our teams are fully and actively engaged in timely delivery of verified information in order for the accurate reporting. Detailed property and corporate accounting Institutional grade reporting Robust but flexible systems Timely and accurate Fully engaged qualified team Seamless integration from property to corporate entity

Accounting and Reporting

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Property Management

Establish clear design guidelines to ensure high standard of presentation and sight. Review short term leasing policy including division of the centre into STL zones to ensure income maximization. Target removal of short term leasing stands which generate lower income. Re-organise remaining kiosks and maximize the value gained for each one. Identify new income opportunities to replace lost kiosk income. Keep income up on a day to day basis whilst developing new retailers business and saving unnecessary vacancy at the same time.

Commercialisation

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Property Management Case Studies

MALTA, POZNAN

Acquisition in July 2018. Management of retailer relations. Preparation for repositioning.

GALARDIA, STARACHOWCIE

Launch and opening of dominant new shopping centre in October

• 2014. Starting property

management instruction 3 months prior to the opening. Continuous growth of footfall and sales.

SOLARIS, KAROLINKA & POGORIA

Following a successful takeover of Solaris in mid-2016 a mandate on further two schemes (Karolinka & Pogoria) obtained from 1st Jan

• 2017. Management of Solaris

through a 10,000m2 extension.

TRISTAN PORTFOLIO

Takeover of 4 properties from June 2017. Successful management of relations with co-

• wner (Carrefour). Timely and
• n-budget delivery of high value

repair works necessary due to age

• f buildings.

PANORAMA, POZNAN

Managing the centre through a 10-months re-development

• project. Repositioning.

Stabilisation of footfall and sales results.

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Leasing

“Our leasing team is the most highly regarded in the region. Our deep, wide and direct occupier relationships are a significant factor in the success of the real estate that we share with our

• ccupiers.

At Sierra Balmain, leasing is not just about maintaining occupancy

• r filling vacant space, but delivering a coherent and sustainable

story for the property. Our leasing team think and advise, creating strategy rather than just plug vacancy. Creating vibrant tenant mix, blending expiry profiles, all whilst maximising opportunity and minimising risk are core tenets of what the Sierra Balmain leasing team do” . OVER 100 YEARS COMBINED RETAIL MARKET EXPERIENCE LONGSTANDING RELATIONSHIPS WITH RETAILERS 12 SHOPPING CENTRE LEASING INSTRUCTIONS OVER 920 TENANTS STRONG MARKET KNOWLEDGE OVER 200 LEASING DEALS EVERY YEAR FOR THE LAST 5 YEARS A REPUTATION FOR STRATEGY AND DELIVERY OVER 400,000m2 LEASED IN POLAND UNDERSTANDING OF CORRECT MARKET POSITIONING TOTAL FOOTFALL OF 43.5M IN CENTRES LEASED REPOSITIONING, REMODELING TOTAL AVERAGE OCCUPANCY OF 97.5%

“It has been a pleasure dealing with the Sierra Balmain retail leasing team. They are creative, hardworking and reliable but most of all their market knowledge, relationships and delivery are exceptional.”

James Fife, London and Cambridge Properties

Magdalene Kondeja Director – Head of Leasing

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Leasing

BOREK, WROCLAW

Repositioning and leasing strategy and delivery. 98% leased.

FERIO, KONIN

Extension and leasing strategy produced an increase in footfall of 56% between purchase and sale. 100% leased on relaunch.

JANTAR, SLUPSK

25 leasing deals done in 18 months leading up to the sale of the centre including 6 units which had never previously been let.

EMKA, KOSZALIN

Design and remodelling advice to reinvigorate the centre with a redesign and leasing strategy. 98% leased at relaunch.

GALARDIA STARACHOWICE

New centre. Development design and layout advice. Leased to 98% on opening.

PANORAMA POZNAN

Repositioning, remodelling and leasing strategy. 95%

• leased. Subsequent growth

in footfall and sale in the most retail saturated city in Poland.

Case Studies

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Marketing, PR & Digital

“Marketing at Sierra Balmain is a holistic process of activities for the centres, offices and occupiers that we manage. Our team’s experience extends beyond commercial property and results in a superior know-how and creative approach to marketing solutions. The Sierra Balmain marketing philosophy utilises the competencies across all teams in the company to maximise the message and application of each activity. In combination with Sonae Sierra’s digital, PR and marketing capabilities, Sierra Balmain’s services in these areas in CEE are second to none” STRATEGY – CREATION, IMPLEMENTATION AND EVALUATION BUDGET PLANNING BUDGET PERFORMANCE COORDINATION PROJECT EXECUTION ANALYSIS OF ACTIVITY VERIFICATION AND CONTROL ADVERTISING ORGANIZING ACTIONS AND EVENTS DESIGN (COHERENT COMMUNICATION) PR ACTIVITIES RELEVANT SUPPORT FOR LOCAL, ON-SITE TEAMS GENERAL MARKETING ADVICE RESEARCH Paulina Szymczukiewicz Head of Marketing

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Marketing Case Studies

Successful launch of Galardia Shopping Centre in Starachowice (pop. 55,000) with 65,000 customers visiting in the first week alone Pro-sales campaign in Aura Shopping Centre, Olsztyn after significant new competition had opened. Lottery with 8,000 entries, generated equivalent of PLN 57 million of retailer sales to enter the draw. 35,000 customers attended the draw (see right) Targeted campaign reflecting the correct positioning of the scheme after replacing pervious marketing company in Panorama, Poznan saw sales increase by 3.46% Re-launch of Panorama saw the opening date of the refurbishment gain a 107% increase against the same the year before. Monthly footfall and sales constantly double digit growth 241% ROI for Charms Action in Aura Centrum resulted in over PLN 582k net spent by customers resulting in 6.7% increase in retail turnovers and 117% of estimated target return. Unique digital xmas action – reindeer race in Aura Centrum and Galardia resulted in 116.5% and 185.5% target returns. Customers spent more than estimated and registered purchase value was PLN 488k net.

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Project & Technical

“Our key focus is the mitigation and management of risk to bring increased project certainty in terms of quality, cost, and delivery date. Sierra Balmain’s project teams are highly experienced across many technical disciplines and real estate classes. Tied in with the global development, design and engineering experience of Sonae Sierra, there is virtually no project challenge no matter how big or small that we cannot handle” PROJECT MANAGEMENT TENANCY COORDINATION AND FITOUT BANK MONITORING TECHNICAL DUE DILIGENCE DEVELOPMENT SERVICES DESIGN AND ENGINEERING Pawel Fert Head of Project Services

“Sierra Balmain’s professionalism on all aspect from the technical delivery of the project within time and cost budgets, as well as commercialisation, coordination of the tenants and the establishment of property management was carried out with great skill and care.”

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Project and Technical

Sierra Balmain provides the project management of a tenant’s fit-out, be it retail, office or industrial. Tenancy coordination involves ensuring that the completion of the fit-out meets or exceeds the agreed vision of the owner and key stakeholders. Through our tenancy coordination service, we ensure that tenants manage their works with a strict adherence to planning, timing and quality. Our team is highly experienced providing a fully integrated and hands-on approach that respects the needs of the client at every level. Sierra Balmain ensures that our tenants are in and paying rent as soon as possible and encourage facades and interiors to be

Development, Project Management, Design and Engineering

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Project and Technical

Sierra Balmain provides the project management of a tenant’s fit-out, be it retail, office or industrial. Tenancy coordination involves ensuring that the completion of the fit-out meets or exceeds the agreed vision of the owner and key stakeholders. Through our tenancy coordination service, we ensure that tenants manage their works with a strict adherence to planning, timing and quality. Our team is highly experienced providing a fully integrated and hands-on approach that respects the needs of the client at every level. Sierra Balmain ensures that our tenants are in and paying rent as soon as possible and encourage facades and interiors to be

Tenancy Fitout & Coordination

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Creating the future, not just talking about it.

Warsaw Towers Sienna 39 Street, 00-121 Warsaw, Poland

Galardia, Starachowice Developed 2014 with Stage Capital