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Investor Presentation May 2015 Disclaimer This presentation (the "Presentation"), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly,


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SLIDE 1

Investor Presentation

May 2015

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SLIDE 2

Disclaimer

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This presentation (the "Presentation"), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in, the United States, Australia, Canada or Japan or any jurisdiction where applicable laws prohibit its viewing, release, distribution, publication or use. This Presentation is being provided for information purposes to selected recipients only and does not constitute or form part of, and should not be construed as an offer or invitation or recommendation to, purchase or sell or subscribe for, or any solicitation of any offer to purchase or subscribe for any securities in BPG Investments S.à r.l (the "Company"), in any

  • jurisdiction. Neither the Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on, in connection

with, or act as an inducement in relation to, a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any such securities. While the Company is financed via debt securities, it is not intended that the information that will be provided in this Presentation will constitute material non-public information regarding the Company and the Company has already publicly stated that they are considering strategic options, including an IPO. The contents of this Presentation and any information relating to the Company received (whether in written or oral form) are confidential and may not be copied, distributed, published or reproduced, directly or indirectly, in whole or in part, or disclosed or distributed by recipients to any other person. The information contained in this Presentation has been provided by the Company and has not been verified independently. Unless otherwise stated, the Company is the source of information. No reliance may be placed for any purpose whatsoever on the information or opinions contained in the Presentation or on its completeness, accuracy of fairness. No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its respective directors, officers, employees, agents or advisers as to the accuracy, completeness or fairness of the information or opinions contained in the Presentation and no responsibility or liability is accepted by any of them for any such information or opinions. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, ambitions, estimates or forecasts contained in this Presentation and nothing in this Presentation is or should be relied on as a promise or representation as to the future. This Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. All features in this Presentation are current at the time of publication but may be subject to change in the future. The Company disclaims any obligation to update or revise any statements, in particular forward-looking statements, to reflect future events or developments. Statements contained in this Presentation regarding past events or performance should not be taken as a guarantee of future events or performance. Prospective recipients should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning such matters and other consequences of a potential investment in the Company and its securities, including the merits of investing and related risks. In receiving any information relating to the Company (whether in written or oral form), including information in this Presentation, you will be deemed to have represented and agreed for the benefit of the Company (i) that you will

  • nly use such information for the purposes of discussions with the Company, (ii) to hold such information in strict confidence and not to disclose it (or any discussions with the

Company) to any person, except as may be required by law, regulation or court order, (iii) not to reproduce or distribute (in whole or in part, directly or indirectly) any such information, (iv) that you are permitted, in accordance with all applicable laws, to receive such information, and (v) that you are solely responsible for your own assessment of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.

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SLIDE 3

BGP management team

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Source: Company information

BGP Management – Non Executive Directors

Chairman Mediaworks Ltd, Vantage Private Equity, member of the board of Ramsay Healthcare

Former Chairman of Skycity Entertainment Group and Australian Growth Properties Ltd

The present Honorary Consul General for Luxembourg in Australia

Gained significant real estate experience

Known for international sports marketing activities, including leading the bid for Sydney’s Olympic games 2000 Rod McGeoch

Chairman  Chairman and CEO of Carrosserie Comes and co- founder and chairman of HITEC Luxembourg  Significant entrepreneurial expertise  BSc degree in industrial technology from University

  • f Applied Sciences in Ludwigshafen and MA degree

in economics and finance from the University of Mannheim Nicolas Comes Non-Executive Director

Currently serves as managing partner and CEO of HITEC Luxembourg SA. and is a member of the board of Carrosserie Comes

He is also chairman of the Luxembourg National Research Fund (FNR) and member of the Supervisory Board of Villeroy & Boch

He previously served as a member of the management committee of SES SA and has significant experience in the fields of innovation, technology, business development and marketing.

He received his MSc degree from ETH Zurich in civil engineering, an MBA and an IDP-C from INSEAD Yves Elsen Non-Executive Director

BGP Management – Key Executives

CEO of BGP since 2009, responsible during repositioning phase

More than 20 years experience in corporate and institutional banking

Previous positions include Managing Director within Financial Markets at ING and Head of Specialized Funds EMEA at Babcock & Brown

BA and LLB degree from University of Sydney

Joined BGP in 2014 from Orco Property Group, where he acted as CFO

Prior to this he served in various roles at Groupe Bruxelles Lambert and Générale de Banque

Graduate degree in Ingenieur Commercial in Business Administration and Technology Interface from I.C.H.E.C. Brussels Yves Désiront CFO Mark Dunstan CEO

Joined BGP in 2009, responsible for the

  • perational activities of BGP AM

Previous positions include asset and investment manager at Cerberus Group and fund manager for IVG

Architecture degree level from Karlsruhe including scholarships at the ESTAB Barcelona and the Architectural Association London, as well as an MBA and MRICs

Joined BGP in 2009, in charge of the BGP AM finance department

Eight years of experience at PwC in transaction services, business recovery services and auditing

BA degree in history and economics at Oxford University, qualified as an Associated Chartered Accountant Thomas Drastik Managing Director Fund Management & Finance Till Schmiedeknecht COO

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SLIDE 4

Residential portfolio €1,093m 96% Non-core(1) €47m 4%

BGP at a glance – an attractive, fully integrated platform in the German residential real estate market

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Portfolio Locations – Residential Portfolio(2) GAV by Portfolio Segment – 31-Mar 2015

GAV < €5m €5m < GAV < €10m €10m < GAV < €50m €50m < GAV < €100m GAV > €100m

Nuremberg Kirchseeon Garching Ulm Karlsruhe Dietzenbach Berlin Düren Dortmund Essen Düsseldorf Cologne Bremerhaven Bremen Celle Hanover Emden Ronnenberg Gronau Paderborn Münster

Northern Germany Southern Germany Western Germany Berlin Area 42% of portfolio GAV located in the Berlin area

Goettingen Glienicke

BGP at a glance Total GAV of €1,140m

42% 12% 22% 25%

Norderstedt Rendsburg Kiel Kappeln

Bremerhaven Norderstedt Rendsburg Kiel

OTTO II

As of 31-Mar 2015

GAV(3): €1,140m, thereof €1,093m residential

LTV(4): ~47% As of 31-Dec 2014

GAV(3): €1,220m, thereof €1,084m residential

EPRA NAV: €584m(5)

LTV(4): 51.9%

Residential units: 16,117

NRI(6): €75.5m

Rent/sqm (residential)(7): €5.4

Vacancy rate (residential)(8): 5.9%

Source: Company information, CBRE reports (1) Non-core portfolio consists of Straubing (€44m) and 25% minority stake in OTTO III (25% NAV representing €2.8m), see Annex for more information; valuation as of 31-Dec 2014 (2) Residential portfolio as of 31-Mar 2015 (CBRE) (3) Gross asset value based on CBRE (4) Loan to value – for a calculation, see “G – Financial Overview” (5) EPRA NAV represents net assets after excluding marked to market adjustments of effective cash flow hedges and deferred tax relating to revaluation movements, capital allowances and derivatives (6) Net rental income of residential portfolio for the year ending 31-Dec 2014 (7) Average residential net cold rent per month per sqm, as of 31-Dec 2014 (8) Vacancy of residential units as of 31-Dec 2014 excludes OTTO II and units under repositioning and refurbishment and assets held for sale

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SLIDE 5

Management successfully transformed BGP into a pure-play residential player

5

2005 - 2009

2007 Q1 2015

Source: Company information (1) GAV as of 31-Mar 2015 (CBRE); excluding non-core portfolio consisting of Straubing and OTTO III

Stabilization and repositioning of BGP – focus on German residential portfolio Pan-European multi-segment fund

Focus on German residential assets

Establishment of BGP Asset Management in 2009 as a subsidiary of BGP Investment

Divest non-core assets and negative equity investments

Reinvest income in target portfolio through capex and debt reduction

Full integration of the platform incl. AM, PM and FM

 Initially, major joint venture between Babcock & Brown and the

GPT Group established in mid 2005 as Pan-European multi-segment fund

 Portfolio before global economic conditions deteriorated and

prompted a partial sell down 2009 – Q1 2015

Germany Netherlands Spain France Lithuania Czech Republic Denmark Sweden Residential Light industrial Retail 1,093

  • Germany

Netherlands Spain France Lithuania Czech Republic Denmark Sweden

GAV €m

(1)

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SLIDE 6

Operational Turn Around

  • Improvement of core processes

(refurbishment, repositioning and maintenance, letting, rent collection, side costs)

  • Introduction of Rental Price

Cockpit (dynamic pricing model)

  • Improvement of KPIs
  • Sale of non core locations and

start of sell-down program for condo units

  • Set up of JV with family office(1)

(currently in sales process – estimated IRR (BGP) > 100%)

Refinancing

  • c.10,000 units with a CMBS

transaction at initial cost of capital of 3.91% in 2013 (currently 4.16%) (Monnet)

  • c.1,600 units at 2.075% cost of

capital at Jun 2014 (Franz I)

  • c.4,000 units with a bank loan at

1.945% cost of capital at Dec 2014 (Bundaberg)

Platform Integration

  • Participation of 28% in facility

manager in 2012

  • Participation of 50% in property

manager 2013

  • Establishment of own letting

platform BGP Immobilienservice (first external client acquired in December 2014)

  • Acquisition of outstanding

stakes and integration of asset management, property management, facility management into Pan-German Residential platform

  • Transfer of all residential units

from external property management into internal structure

  • Rollout of FM services in key

markets

Capex Program

  • Value-enhancing capex program

from 2013 – 2015 to further reduce vacancy levels and uplift asset valuation

  • Approx. €36m of total capex in

2015 to be invested in the portfolio to drive operating performance and repositioning

  • f selected assets

Strong management track record of value enhancement

BGP’s asset management team has a strong track record in implementing value-enhancing strategic projects. The successful turn-around allowed for refinancing of the company. Platform integration as well as the current capex program should drive further profitability and valuation improvements

(1) OTTO III defined as non core asset

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SLIDE 7

BGP – Key investment highlights

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Opportunity to invest in growing and resilient German residential market Germany wide upward trending residential portfolio consisting of attractive micro locations in Berlin (42%) and other growing urban cities Fully integrated management platform geared to support scale and efficiency enhancement Significant organic growth potential driven by capturing rental reversion, vacancy reduction and selective refurbishments Germany wide presence allows significant opportunities for acquisition of small to medium scale portfolios with limited competition – operational gearing Well balanced, conservative financial structure combined with significant cost

  • ptimization potential

2 3 4 5 6

7

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SLIDE 8

19.0 17.0 16.7 16 15.4 15.6 60.6 59.6 54.5 51.9 51.5 50.4 20.4 23.3 28.8 32.1 33.1 34 2008 2020 2030 2040 2050 2060 <20 years 20-65 years 65 years and older

Supportive structural demand dynamics

8

Source: Federal Statistical Office 2013

29.4 31.1 32.1 32.8 10.2 9.6 8.9 8.3 39.9 40.7 41.0 41.1 2013A 2015E 2020E 2025E 1-2 person households 3+ person households %

1-2 person household growth: +11.7%

m units

Ageing German population Number of private households

Source: Federal Statistical Office

1

18% 21% 21% 21% 25% 35% 43% 49% Hamburg Berlin Cologne Frankfurt Munich Paris Madrid Rome Germany European Metropolis

Source: Cologne Institute for Economic Research

2012

Ownership ratio

56% 58% 80% 82% Netherlands France Italy Spain % Germany: 46%

Source: EMF – Hypostat 2013

Accommodation cost as a % of income(1)

(1) Refers to 1 room apartments

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SLIDE 9

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(1) Construction costs for a multiple dwelling (medium price segment, living comfort, without underground car park - in A-locations construction costs are on average 20% higher (2) Houses and apartments

Low structural housing supply

Commentary

Source: CBRE 13.0

11.5 10.0 9.0 9.0 7.5 5 10 15 Munich Frankfurt Hamburg Cologne Dusseldorf Berlin

Median Rent (Supply) in €/SQM

10.5 5.5 4.0 3.9 2.3 2 4 6 8 10 12 Spain France Netherlands Italy Germany

Source: Euroconstruct, Worldbank

% Average housing(2) completions per 1,000 inhabitants 2003-2012

European Housing completions in major countries

Supply is historically low in Germany as evidenced by lower average housing completions compared to European neighbours

In place stock significantly lower than construction costs

Areas with extensive demand for residential properties and thus significant increases in rent levels such as Berlin and Munich

  • ffer the potential to rental growth

1

~950 ~1,620 + ~20% Average value Average construction cost

Construction costs to replace current stock

In €/sqm Source: Arbeitsgemeinschaft für zeitgemäßes Bauen (2015), own estimates

(1)

Base rental levels in major German cities

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SLIDE 10

Attractive German residential real estate market with strong increase of new letting and low vacancy levels

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Significant catch-up potential for German metropolitan areas

(1) Vacancy defined as vacant apartments which are immediately marketable as well as apartments which are currently not lettable due to defects but could be let in the medium term (<6 months) (2) Number reflect the development of year average new letting rents excluding new construction

% Index 100 103 103 107 110 112 116 88 92 96 100 104 108 112 116 120 2011A 2012A 2013A Dec-2014A Market BGP 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A Germany Growing regions in Germany

Development of residential rent in Germany(2)

Source: CBRE Empirica Vacancy Index Source: CBRE

Decreasing vacancy rates indicate good upside potential

This is supported by the strong preference for metropolitan areas and relatively low accommodation costs as percentage of income which indicate substantial further upside potential for rent increases

1

Vacancy rates in Germany(1) Attractive funding spread

(4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 2001 2003 2005 2007 2009 2011 2013 2015 Bundesbank 9-10y Average yield Rental yield

Source: Bulwiengesa AG, Eurostat, Bloomberg

%

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SLIDE 11

BGP’s residential portfolio is focused on growth regions/ urban centre areas in Germany

Source: Federal Statistical Office, Company Information (1) GAV of residential portfolio as of 31-Mar 2015 (CBRE) (2) CAGR 2007A - 2014A (3) CAGR 2007A - 2012A (4) As of Dec 2013A Berlin Area  Most sought after German residential real estate market. Strong demand especially for smaller apartments due to high proportion of 1-person households  Rent level still low compared to other German and European metropolis  Limited availability new built apartments GDP growth(2): 3.1% Increase of disposable income(3): 1.7% # inhabitants(4): 3.4m

Portfolio GAV by Region(1) % of total GAV 41.6% 24.6% 21.8% 11.9% Berlin Area Northern Germany Western Germany Southern Germany Residential Portfolio(1)

GAV < €5m €5m < GAV < €10m €10m < GAV < €50m €50m < GAV < €100m GAV > €100m

Nuremberg Kirchseeon Garching Ulm Karlsruhe Dietzenbach Berlin Düren Dortmund Essen Düsseldorf Cologne Bremerhaven Bremen Celle Hanover Emden Ronnenberg Gronau Paderborn Münster

Northern Germany Southern Germany Western Germany Berlin Area

Goettingen Glienicke

Southern Germany  Strong growth of market demand in metropolitan areas due to positive demographic trend  Higher incomes allow for higher rent levels GDP growth(2): 2.1% Increase of disposable income(3): 2.2% # inhabitants(4): 29.7m Western Germany  Economic centre of Germany generating approx. 22% of German GDP  Most densely populated federal state  Immigration to additionally drive growth in new households GDP growth(2): 1.7% Increase of disposable income(3): 2.4% # inhabitants(4): 17.6m Northern Germany  Continuing trend towards inner-city living boosts demand in urban areas  Positive household growth in urban areas expected GDP growth(2): 2.3% Increase of disposable income(3): 2.7% # inhabitants(4): 10.8m

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4 3 2 2 3 4 1 1

€455m €269m €238m €130m

2

Norderstedt Rendsburg Kiel Kappeln

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SLIDE 12

+3% +9% +7% +8% +10% +12% +8% +5% +6% +6% +4% +2% +32% +30% +63% +48% +46% +41% +41% +32% +24% +27% +56% +28%

Population growth 2011 – 2025 Household growth 2011 – 2025 Rent upside(2)

+2% +3% +5% +8% +7% +6% +14% +9% +6% +6% +9% +4%

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42% of residential portfolio GAV located in sought-after Berlin area

Source: CBRE, Berlin-Brandenburg Statistics Office (1) Percentage of total GAV as of 31-Mar 2015 (CBRE) (2) Rental potential defined as the sqm weighted difference between CBRE market rent (as of 28-Feb 2015) and portfolio rent as of 28-Feb 2015

8% 3% 2% 4% 1% 5% <1% 2% 1% 8% 2% <1% 4% Glienecke 1% Other Mitte Friedrichshain- Kreuzberg Pankow Charlottenburg- Wilmersdorf Spandau Steglitz- Zehlendorf Tempelhof- Schöneberg Neukölln Treptow- Köpenick Marzahn- Hellersdorf Lichtenberg Reinickendorf

6.9% population growth in BGP located districts (GAV weighted)

2

6.6% household growth in BGP located districts (GAV weighted) 35.7% rent upside in BGP located districts (sqm weighted)

District % OF GAV Marzahn-Hellersdorf 8.4% Mitte 7.5% Steglitz-Zehlendorf 5.2% Charlottenburg 4.2% Friedrichshain-Kreuzberg 2.5% Pankow 2.1% Neukölln 2.0% Lichtenberg 1.7% Treptow-Köpenick 1.2% Spandau 1.0% Tempelhof-Schöneberg 0.9% Reinickendorf 0.4%

Overview of Berlin portfolio (% of total GAV)(1)

District

Marzahn-Hellersdorf Mitte Steglitz-Zehlendorf Charlottenburg Friedrichshain-Kreuzberg Pankow Neukölln Lichtenberg Treptow-Köpenick Spandau Tempelhof-Schöneberg Reinickendorf

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SLIDE 13

Berlin Area

41.6%

─ Berlin East

17.6%

─ Berlin Center

13.6%

─ Berlin West

6.0%

─ Glienicke

3.7%

─ Others

0.7%

Western Germany

21.8%

─ Cologne

7.6%

─ Münster

3.5%

─ Düsseldorf

2.1%

─ Verden

1.4%

─ Others

7.3%

Northern Germany

24.6%

─ Kiel

6.7%

─ Rendsburg

4.4%

─ Emden

1.8%

─ Bremen

1.8%

─ Hannover

1.5%

─ Other

8.5%

Southern Germany

11.9%

─ Munich

5.8%

─ Nürnberg

2.3%

─ Others

3.8% 100% 4,176 4,204 6,245 1,443 2,629 887 436 199 25 1,030 628 318 388 1,840 1,574 1,425 512 142 321 2,271 558 376 509

Residential portfolio located in regions with positive household growth dynamics – substantial rent increases and vacancy reduction achievable

City

Source: Company information, CBRE (1) Residential units as 28-Feb 2015 (2) CBRE as of 31-Mar 2015 (3) 2009A-2030E; based on BBSR; adjusted for latest census update (4) Rental upside potential defined as the sqm weighted difference between CBRE market rent (as of 28-Feb 2015) and portfolio rent as of 28-Feb 2015 (5) Vacancy upside potential defined as the difference between CBRE market vacancy (Data as of 31-Dec 2013 and published in Dec 2014) and portfolio vacancy levels as of 28-Feb 2015

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% 5.5% 7.2% 3.7% 11.3% 5.0% 5.0% 5.0% 15.9% 3.6% 9.4% 10.5% 9.4% 7.6% 4.0% 1.9% 4.9% 2.2% 1.3% 4.1% 4.8% 17.5% 7.4% 7.5%

# of residential units(1) GAV(2) Household Growth(3)

€m

Rent Upside To Market Rent(4) Vacancy Upside To Market Vacancy(5)

%

32.8% 13.1% 7.4% 44.5% 38.1% 34.9% 22.9% 6.1% 21.0% 15.2% 22.4% 25.4% 7.2% 5.7% 8.1% 6.8% 13.2% 11.9% 12.5% 4.8% 83.7% 22.5% 14.8%

% Ø 20.9% BGP portfolio wide Total # of units: 16,068 Ø 2.1% Germany wide (29.3%)

2

455 192 149 65 41 8 238 83 38 23 15 80 269 73 48 19 19 17 93 130 64 25 41 Total GAV: 1,093 25.5% 68.9% 62.2% 80.0% (0.7%) 46.8% 65.9% 23.7% 74.8% 75.6% 53.7% 66.6% 67.2% 55.0% 55.8% 48.8% 71.6% 64.7% 68.0% 63.3% 24.8% 87.2% Ø 58.5% BGP portfolio wide

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SLIDE 14

14

Berlin Area

41.6%

Western Germany

13.2%

─ Cologne

7.6%

─ Münster

3.5%

─ Düsseldorf

2.1%

Northern Germany

10.0%

─ Kiel

6.7%

─ Bremen

1.8%

─ Hannover

1.5%

Southern Germany

10.3%

─ Munich

5.8%

─ Nürnberg

2.3%

─ Karlsruhe

1.3%

─ Ulm

0.9% 75.1%

Approximately 75% of portfolio GAV located in Germany’s top 50 university cities

City

Source: Company information, CBRE Report Student Housing 2014/2015 (1) GAV as of 31-Mar 2015 (2) CBRE Report Student Housing 2014/2015 as of 25-Nov 2014

% GAV(1)

# ‘000 # ‘000 3,375 1,915 1,024 297 594 1,300 240 546 514 2,297 1,388 495 296 118

Total Population(2) Ratio Students / Total Population(2)

  • No. of Students(2)

163 179 88 51 39 104 32 32 40 187 109 23 41 14 4.8% 10.9% 8.6% 17.3% 6.6% 9.0% 13.3% 5.8% 7.8% 9.5% 7.9% 4.6% 13.8% 11.9% %

2

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SLIDE 15

Norderstedt Rendsburg Kiel Kappeln

Tailored setup allows for efficient operation and management of the historically spread-out portfolio

Offices located at close proximity to portfolio assets

Asset Management Letting Facility Management Property Management Headquarters

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Nuremberg Kirchseeon Garching Ulm Karlsruhe Dietzenbach Berlin Düren Dortmund Essen Düsseldorf Cologne Bremerhaven Bremen Celle Hanover Emden Ronnenberg Gronau Paderborn Münster

Northern Germany Southern Germany Western Germany Berlin Area

Goettingen Glienicke Munich Verden

GAV < €5m €5m < GAV < €10m €10m < GAV < €50m €50m < GAV < €100m GAV > €100m

Offices Assets Luxembourg (1) Employee figures as of 31-Dec 2014

Integrated residential real estate platform(1) Property Management (PM)

Offices: 10

Employees: 20

Services:

Residential letting for internal and external clients

Offices: 10

Employees: 69

Services:

Rent collection

Maintenance

Side costs

Tenant management

Project management

Property accounting

Locations: 5

Employees: 72

Services:

Janitor service

Winter service

Gardening

Concierge service

Small maintenance services

Asset Management (AM)

Offices: 4

Employees: 26

Services:

Portfolio management

Financing

Asset management

Managing operational companies

BGP Investment (Luxembourg)

Offices: 1

Employees: 7

Services:

Strategic management Proximity allows for quickly being able to adapt to local market developments and needs

3

Letting Facility Management (FM)

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SLIDE 16

BGP’s Rental Price Cockpit has increased letting rents by almost a factor of two compared to the market since 2011

Comments Rental price cockpit  The Rental Price Cockpit is a dynamic pricing model

 Every quarter all relevant online offers are classified

according to size groups

 Property type refurbishment standards and target rents are

adjusted to market developments

 Supported an increase in new rents by c.16%(2) in 3 years out-

performing the market

 Appropriate pricing improved tenant selection reducing

fluctuation from 12.7%(4) to 11.9%

Residential use rent new lettings Rental price cockpit example(3)

Note: Figures excluding OTTO II (1) ERP defined as Enterprise Resource Planning; i.e. business management software (2) 2011A to 2014A new NCR difference; excluding OTTO II (3) Snapshot Rental Price Cockpit - apartment units from 60m2-75m2 (4) Tenant fluctuation defined as % turnover of tenants by sqm

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5.2 5.8 5.9 6.1 4.5 5.0 5.5 6.0 6.5 2011A 2012A 2013A 2014A NCR (€/sqm)(2)

+16.4% BGP vs 8.3% Market

Implementation of the Rental Price Cockpit

# offers NCR /€/sqm) 2007 2008 2009 2010 2011 2012 2013 2014 Offers NCR NCR/sqm new lettings

3

Market data Immoscout In place rent ERP(1) Size groups Market segmentation Size groups Positioning Refurbishment standards Development of market rents in size groups Development of target rents

  • Excl. OTTO II
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SLIDE 17

Value creation through stringent asset development strategy

Source: Company information (1) Based on classification by company’s management as of 28-Feb 2015 (2) Based on internal assessment of company’s management as of 28-Feb 2015 (3) As of 28-Feb 2015 – Vacancy of residential units excludes OTTO II, units under repositioning and refurbishment and assets held for sale

Portfolio(1) Upside potential(2)

Value creation potential Portfolio cluster % of resi units Vacancy(3) Vacancy reduction potential Rent increase potential Property strategy Portfolio strategy Comments

Vacancy reduction 31% 12.4%

High Moderate to high Remove obstacles of vacancy reduction CAPEX Programme Improve value upside of existing portfolio Significant capex spending budgeted in 2015 to improve occupancy and cash flow portfolio

Rental upside 37% 3.4%

Limited Moderate to high Adjust property and apartment qualities to market requirements Rental Price Cockpit Improve value upside of existing

  • portfolio. Invest in

growth markets. Sell in stagnating market and markets without critical mass Additional capex spending to realise upsides

Project development 1% 8.8%

Moderate High Value creation through complete repositioning and additional building rights Project Developments Dependent of ROI/ sell if upside is limited Current project developments are 3 upside potential properties in Berlin and one large development potential in Münster

Stabilised potential disposal and reinvestment 31% 3.0%

Limited Limited Realise rental upsides through Differentiated Housing Products Improve value upside of existing

  • portfolio. Invest in

growth markets. Sell in stagnating market and markets without critical mass About one quarter of stabilised properties are under rental caps

  • f which most will

expire by 2016 and will then potentially allow for rental upside

Total 100% 6.1%

Reinvestment in project management, vacancy reduction and rental upside properties

3

17

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SLIDE 18

0% 10% 20% 30% Vacancy

Portfolio provides significant potential for organic growth driven by rental reversion and vacancy reduction

0% 15% 30% 45% 60% Rental potential 0% 15% 30% 45% 60% Rental potential 0% 15% 30% 45% 60% Rental potential

GAV split by region(2)

Berlin(1) Western Germany(1) Northern Germany(1)

0% 15% 30% 45% 60% Rental potential 0% 10% 20% 30% Vacancy 2.6% 13.1% 0% 10% 20% 30% Vacancy 8.7% 0% 10% 20% 30% Vacancy 7.4% 8.4% 44.5% 5.3%

Southern Germany(1)

Northern Germany 25% Western Germany 22% Southern Germany 12% Berlin 42% Total: €1,093m

Vacancy reduction strategy Rent reversion strategy

Average weighted rental growth potential of 20.9% in current portfolio

Significant vacancy reduction potential before approaching vacancy levels of peers

4

32.8%

18

Source: Company information, CBRE report

6.1%(1,3) 3.4% 2.2% 2.7% 3.4% 0.5%(4) 6.7% 0% 2% 4% 6% 8% 10% Average: 2.9%

Vacancy upside vs. peers

Source: Company information, for peers latest available reporting

(1) As of 28-Feb 2015 (2) As of 31-Mar 2015 (3) Vacancy of residential units excludes OTTO II, units under repositioning and refurbishment and assets held for sale, as of 28-Feb 2015 (4) Including OTTO II vacancy, as of 28-Feb 2015

slide-19
SLIDE 19

Conservative capex spent historically, as company focused on streamlining its core portfolio

Historical capex spent 2012-2014 Capex spent and returns achieved

Historically BGP’s focus was on streamlining the portfolio

Successful transformation into core residential portfolio and strategic disposal of non-core assets

Capex spent in the past very focused on properties with clear upside potential

Demonstrated through significant NRI increases overall

Approximately 12-19% inflation adjusted NRI increase(5)

5 6 6 8 9 14 <1 1 6 <1 1 1 14 16 27

  • 5

10 15 20 25 30

2012 2013 2014 Maintenance Modernisation capex Letting capex Otto II

Source: Company information

a

4

19

In €m

Source: Company information

(1) Maintenance: expenditures to maintain rented investment property (2) Modernisation capex: expenditures on planned works (3) Letting capex: expenditures on vacant investment property to increase rent and support the letting process (4) Analysis only takes into consideration capitalised capex spent (5) Ratio in percentage of inflation adjusted NRI increase to prior-year capex spent 2012(4) 2013(4) 2014(4) Capex spent (€m) 8.5 9.6 20.1 Inflation adj. NRI increase (€m) 1.0 2.4 Inflation adj. NRI increase to prior-year capex spent ~12% ~19%

Comments

(1) (2) (3)

slide-20
SLIDE 20

6 14 6 <1 27

  • 5

10 15 20 25 30 35 40

2014 2015E 2016E 2017E Maintenance Modernisation capex Letting capex Otto II

20

16.5 13.8 17.6 29.1 ~242

…but also maintaining a value enhancing Capex programme

Total capex vs. peers (2014A) Comments  Near term capex programme significantly larger than the

average of most other German peers

 Portfolio offers significant opportunities to utilise capex in

  • rder to enhance shareholder returns

 Management team targets a capex budget with minimum

return of 8%

 In case of potential upside opportunities, capex can be

increased

~32(2) Source: Company information, for peers their latest reporting (1) Historical and targeted capex spent (2015-2017E targets pre-acquisition) (2) Based on latest total lettable area (1,139,661sqm) from CBRE report as of 31-Mar 2015, based on rent roll as of 28-Feb 2015 Average: 19.3

b

4

Capex and maintenance programme(1)

In €m €/sqm 2014 2015E ~36 ~27 ~22

slide-21
SLIDE 21

Repositioning of projects to drive further value

21

4

Upgrade properties Berlin Comments

Repositioning project in separate SPV in preparation

Strategy

Repositioning to increase rents from current to market levels

Measures

Build out roof top

Elevator

Energetic measures

Improvement of floor apartments and floor plant

Repositioning project in separate SPV in preparation

Strategy

Repositioning to increase rents from current to market levels

Measures

Build out roof top

Elevator

Energetic measures

Improvement of floor apartments and floor plant

Repositioning project in separate SPV in preparation

Strategy

Repositioning to increase rents from current to market levels

Measures

Build out roof top

Elevator

Energetic measures

Improvement of floor apartments and floor plant

Address: Warschauer Str. 25 / Kopernikusstr. 6 Address: Warschauer Str. 72 Address: Schönhause Allee 86 / Erich Weinert Str. 2

slide-22
SLIDE 22

Germany wide presence allows significant advantage for acquisition

  • f small to medium scale portfolios with limited competition

5

22

29% 26% 45% €0m - €100m €100m – €500m > €500m 

Aiming to acquire additional portfolios with cost efficiency and vacancy reduction potential and has set a target of 18 months to achieve

BGP targets assets in growing markets that are

Too small for institutional investors and too big tor private investors

Enhance operational footprint / scalability

Show clear upside potential or low pricing

Have assets with up to c.15% vacancy and / or 5-20% inherent rental upside potential

Offer rental yields on actual rents of 6-7%

Locations

Growth cities >100,000 inhabitants and urban regions with positive household development

Asset type

Residential properties with up to 20% commercial

Commercial properties with redevelopment potential into residential/student housing/business apartments

Target deal sizes

Minimum of €5m (if local presence exists) and minimum of €15m (if no presence); maximum c.€50m (80-800 units)

Deutsche Annington Deutsche Wohnen LEG Foncière des Régions ADO

GAV (€bn) 1.1(1) 12.8 10.1 6.0 1.7(2) n.a. Berlin     (Berlin, Dresden)  North    (Hanover, Kiel) South   West    (Rhine-Main / Rhineland)  (NRW)  (Rhine-Ruhr) East  Focus German wide focus on growth regions German wide Berlin NRW Berlin/NRW Berlin

Acquisition criteria

Management plans to use €250m over the next 3 years for acquisitions

Volume of acquisitions may be increased if opportunities arise and financing available

German residential 2013 transaction volume per portfolio size

BGP vs. other German residential players

Source: Company information, CBRE reports, for peers their latest reporting Source: CBRE report

(1) GAV of BGP Investment as of 31-Mar 2015 (2) GAV of German residential assets

slide-23
SLIDE 23

23

BGP completed acquisition of OTTO II portfolio

Portfolio summary

Portfolio spread across 13 cities

The district Schleswig-Flensburg represents c.36% of the lettable area and 30.5% of the total fair value as of 31-Mar 2015

Portfolio fair value of €42m as of 31-Mar 2015

1,301 residential units with a lettable area of 76,490 sqm

€4.0m of NRI(1)

NCR/sqm of €4.8(2)

Vacancy rate of 12.8%(3)

Mainly apartment buildings which were constructed between 1945-1983

Deal summary

Repurchase of debt at discount (through equity)

Portfolio already owned by BGP, but not in control since 2009

External facility and property management to date

Source: Company information, CBRE reports as of 31-Mar 2015 (1) For the year ending 31-Dec 2014 (2) As of 28-Feb 2015; NCR defined as net cold rent (defined as contractually agreed rent payments; additional expenses (e.g. trash collection, water, janitor) and heating costs are not included in NCR (3) Vacancy of residential units as of 28-Feb 2015

Competitive strengths / rationale

Ability to pay cash upfront was a competitive advantage

BGP knew the asset well (having owned it, but not in control since 2009)

Rationale:

Currently high vacancy provides significant upside potential

Limited incremental costs as properties strongly overlap with existing BGP portfolio

Portfolio Location OTTO II

Northern Germany

Norderstedt Rendsburg Kappeln Kiel

5

slide-24
SLIDE 24

9.1% 7.5% 5.9% 6.1% 0.4% 0.5% 0.5% 0.5% 9.5% 7.9% 6.4% 6.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2012A 2013A 2014A Feb-2015A

% of residential units

15,106 14,981 14,813 14,767 1,304 1,304 1,304 1,301 16,410 16,258 16,117 16,068 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 2012A 2013A 2014A Feb-2015A

Strong operational track record

Number of residential units

Source: Company information (1) Excl. OTTO II (2) As of 28-Feb 2015 – Vacancy of residential units excludes OTTO II and units under repositioning and refurbishment and assets held for sale (3) Tenant fluctuation defined as % turnover of tenants by units, including OTTO II; better tenant selection has helped decrease this figure

Vacancy development(2)

12.7% 12.7% 11.9% 10.0% 11.0% 12.0% 13.0% 2012A 2013A 2014A

6

Number of units

5.1 5.3 5.4 5.4 5.8 5.9 6.1 6.1

0.0 2.0 4.0 6.0 8.0 10.0

2012A 2013A 2014A Feb-2015A Average in-place rents New rent (of respective year)

Rent development

€ NCR per sqm +7.0% / +4.9%(1)

Tenant fluctuation by units(3)

24

OTTO II 5.9 5.4 5.4 6.0 xx

  • Incl. OTTO II
  • 3.0 pp

Adjusted vacancy OTTO II impact

~0.2% new lettings in Q1

slide-25
SLIDE 25

37.2 11.2 37.2 11.7 39.9 13.8 2.3 2.2 1.7 1.7 2.0 2.1 13 13 16 10 20 30 40 50 Adjusted EBITDA OTTO II FFO I 942 386 976 430 1,043 526 48 10 51 12 44 4 482 58 464 57 133 54 1,472 453 1,492 499 1,220 584 200 400 600 800 1,000 1,200 1,400 1,600 Residential Real Estate Non-Core Portfolio Disposal Group

Key financial highlights

NRI and NRI multiple Adjusted EBITDA(3) & FFO I

73.1% 67.0% 51.9% ~47% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2012A 2013A 2014A Q1 2015

(1) Multiples and growth rate excl. OTTO II (2) 14.6x if calculated from CBRE gross asset value as of 31-Dec 2014 (net of purchasing cost of 7.9%) (3) Adjusted EBITDA is defined as EBITDA adjusted from Net gains / loss on disposal of investment properties, as well as valuation gains from investment property (4) LTV is equal to Net loans over GAV

66.2 68.2 71.6 3.7 3.7 4.0 20 40 60 80 2012A 2013A 2014A 14.2x(1) 14.3x(1) 14.6x(1,2)

GAV & NAV development

2012A 2013A 2014A GAV NAV GAV NAV GAV NAV

6

€m €m

25

Source: Company information Source: Company information Source: Company information

8.1%(1) OTTO II ~(26)% 70.0 72.0 75.5 37.2 11.2 37.2 11.7 39.9 13.8 2.2 2.2 1.8 1.8 2.0 2.0 13.4 13.5 15.9 10 20 30 40 50 Adjusted EBITDA OTTO II FFO I

Source: Company information

€m 2012A 2013A 2014A 39.4 39.0 41.9 13.4 13.5 15.9

LTV(4) development

slide-26
SLIDE 26

 Current average debt maturity of c.4 years  Current average cost of debt of c. 3.4%(1)  Entire debt structure based on secured financing of which

c.66% of CMBS financing which is expected to be pre-paid and potentially refinanced through bank market

 Monnet CMBS of €386m at issuance will be partly amortised

As of 31-Dec 2014 amounted to €378m

 Company remains committed to hedge a significant portion of

its interest costs as it is also the case currently

 OTTO II loan has been acquired in February 2015 with a 25%

discount Type of debt(5)

Current financing structure

Comments Structure of debt(5)

Bank loans 34% CMBS debt 66% Variable but hedged and fixed 96% Variable, but capped 4%(6)

6

26

Debt maturity(2,3)

Short-term debt Long-term debt / 386 133 25 41 41 158 100 200 300 400 500 2015 2018 2019 2021

Start date: Sep 2013 Cost of debt: 4.16%(3,4) Start date: Jun 2014 Cost of debt: 2.08% Start date: Jan 2015 Cost of debt: 2.10% Start date: Dec 2014 Cost of debt: 1.95%

In €m

€34m acquisition

  • f OTTO II

portfolio loan in early 2015

Source: Company information (1) Weighted average cost of debt as of 31-Dec 2014, Monnet CMBS pro-forma adjusted by 25 bps (step-up effective Jan 2015 onwards), without accounting for the purchase of the OTTO II loan (2) As of 31-Dec 2014, pro-forma the acquisition of OTTO II loan in early 2015 (3) Initial principal amount excluding amortisation (4) Reflecting 25bps step-up from Jan 2015 and onwards (5) As of 31-Dec 2014 (6) €25m variable and only capped at 2.5%

slide-27
SLIDE 27

Current outstanding Monnet CMBS: €378m(1)

Cost of financing of c.4.16% (reflecting 25bps step-up from Jan 2015 and onwards)

Expiring in 2018

Option to pre-pay with a penalty:

Before 12 August 2014, 7% of the total outstanding loan amount

After 12 August 2014 but before 12 August 2015, 5% of the total outstanding loan amount

On or after 12 August 2015 but before 12 August 2016, 3% of the total outstanding loan amount

On or after 12 August 2016 but before 12 August 2017, 1% of the total outstanding loan amount

Marked-to-market of swaps: €17.1m(2)

Total breakage costs of refinancing estimated at €28.5m

CMBS pre-payment expected to significantly enhance FFO

CMBS structure today

Source: Company information (1) As of 31-Dec 2014, after amortisation (2) As of 31-Mar 2015 (3) Calculated as the amount of new debt minus estimated value of Monnet CMBS as of Sep 2015 (€377m) minus total breakage costs minus €4m issuance costs 

Assuming a 60% LTV of the underlying portfolio (existing Monnet and OTTO II) €442m debt could be raised, delivering €32-33m(3) additional proceeds (net

  • f costs)

Expected refinancing in September 2015 could increase FFO by €8.3 - €9.3m, based on the illustrative example presented above

6

27

Illustrative FFO increase (pre-tax)

(€m) Annual interest savings at new cost of debt One time penalty Swap marked- to-market Total breakage costs(3) Repayment date 1.75% 1.90% 2.05% <12/08/2015 9.3 8.7 8.3 18.9 17.1 36.0 12/08/2015< 12/08/2016 9.3 8.7 8.3 11.4 17.1 28.5 12/08/2016< 12/08/2017 9.3 8.7 8.3 3.8 17.1 20.9 >12/08/2017 9.3 8.7 8.3 0.0 17.1 17.1

slide-28
SLIDE 28

FFO development

FFO bridge Comments

 Adjusted EBITDA margin remained stable at approx. 56%  Cash taxes from operations is expected to be very limited

going forward, due to significant tax loss carry forward

 Important capex programme is expected to peak in 2015 and

subsequently decrease in 2016

 Capex has been partially financed in 2014 by €4.8m capex

line of the CMBS financing

Normalised FFO

Core 2014 Split (€m) 2012 2013 2014 OTTO II Total EBIT 254.6 66.7 83.2 14.7 97.9 (+) correction for D&A 2.5 1.5 14.4 0.1 14.5 EBITDA 257.2 68.2 97.6 14.8 112.3 (-) Asset sales (9.6) (0.8) (2.5) (0.0) (2.5) (-) Revaluation (210.3) (30.2) (55.2) (12.7) (67.9) Adjusted EBITDA 37.2 37.2 39.9 2.0 41.9 (-) Net cash interest (25.6) (25.2) (25.6) 0.0 (25.6) (-) Current income taxes (0.4) (0.4) (0.5) 0.0 (0.5) FFO 1 11.2 11.7 13.8 2.0 15.9 (-) Capitalised maintenance (8.5) (9.6) (20.1) (0.9) (20.9) AFFO 2.7 2.2 (6.2) 1.2 (5.1) 13.8 2.0(1) 8.3-9.3(2) ~1(4) 0.0 10.0 20.0 30.0 40.0 50.0 FFO 2014A OTTO II Monnet refinancing Refinancing closed in 2014 VAT group Platform integration Growth

Source: Company information (1) Based on 2014A FFO contribution (2) Based on the illustrative example laid out on previous slide (3) Company estimate depending on positive outcome of an EU court decision (remaining 51% acquisition of BGP Asset Management GmbH, allowing issuance of invoices without VAT within the group) (4) Company estimate resulting from BGP Asset Management GmbH and its subsidiaries, remaining 51% acquired in December 2014

6

28

€m

(3)

slide-29
SLIDE 29

Summary

BGP is a lean but fully integrated real estate platform across attractive micro locations in Germany

29

 LTV of ~47% as of 31-Mar 2015  Target LTV of ~50% post add on acquisitions  Dividend payout ratio in % of recurring FFO in line with peers  Portfolio optimisation  Reduction of vacancies and refurbishments  Add on developments  Firepower for selective bolt-on acquisitions Operational highlights Financial highlights

slide-30
SLIDE 30

Appendix

slide-31
SLIDE 31

Housing Market in Transition – BGP Prepared to Offer Tailored Solutions

Due to its fully integrated operational platform, BGP can offer differentiated, tailor-made housing solutions. German residential real estate is in transition

 Ongoing trend towards living in metropolitan areas  Ongoing development towards 1- to 2-person households  Energy savings will become a key topic  Demand for external services strongly increasing  Demographic development/elderly population impact housing needs

Thus, differentiating housing supply taking into account demographic and socioeconomic trends will be key

 Housing solutions with external services in metropolitan areas of key importance (food corner, laundry, gym, assisted

living)

 Living communities (in particular for elderly people) will further increase as structure of apartments cannot be changed  Housing supply for students in metropolitan areas missing

With its in-house platform across Germany, BGP is well equipped to capture growth in the residential housing sector

 Vertically integrated property management; letting and facility management platform allows to offer service packages  Scalable platform allows for add-on acquisitions with strong synergy potential  Regional diversified portfolio allows to invest in most attractive growth regions across Germany

30

slide-32
SLIDE 32

Overview of Key Strategic Projects

BGP’s asset management team has a strong track record in implementing value-enhancing strategic projects. The successful turn-around allowed for refinancing of the company. Platform integration as well as the current capex program should drive further profitability and valuation improvements.

Key Strategic Projects Operational turn around 2009-2014 Refinancing 2013-2014 Platform integration 2013-2014 Capex program 2014-2015

 Improvement of core processes (refurbishment, repositioning and maintenance, letting, rent collection, side costs)  Introduction of Rental Price Cockpit (dynamic pricing model)  Improvement of key performance indicators  Sale of non core locations and start of sell-down program for condo units  Set up of JV with family office(1) (currently in sales process – estimated IRR (BGP) > 100%)  c.10,000 units with a CMBS transaction of €406m at c.4% cost of capital in 2013 (Monnet)  c.16,00 units at c.2% cost of capital in 2014 (Franz I)  c.4,000 units with a bank loan at c.2% cost of capital end of 2014 (Bundaberg)  Participation of 28% in facility manager in 2012  Participation of 50% in property manager 2013  Establishment of own letting platform BGP Immobilienservice (first external client acquired in December 2014)  Acquisition of outstanding stakes and integration of asset management, property management, facility management into

pan German Pan-German Resi platform

 Transfer of all residential units from external property management into internal structure  Rollout of FM services in key markets  Value-enhancing capex program in 2014 and 2015 to further reduce vacancy levels and uplift asset valuation

31

(1) Otto III

slide-33
SLIDE 33

Case Study: Grazer Damm repositioning

32

Source: Company information 50 100 150 200 250 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Mar 2010 May 2010 Jul 2010 Sep 2010 Nov 2010 Jan 2011 Mar 2011 May 2011 Jul 2011 Sep 2011 Nov 2011 Jan 2012 Mar 2012 May 2012 Jul 2012 Sep 2012 Nov 2012 Jan 2013 Mar 2013 May 2013 Jul 2013 rent/m² new lettings modernisation / m² 

Status quo

Former occupation with high percentage of subsidized tenants

Measures

Unit by unit refurbishment including new bath rooms

Step by step refurbishment of staircases, façade and gardens and

  • pen spaces by “integrated” facility manager

Renovation to barrier reduced apartments for ground floor units

With decreasing vacancy increasing CAPEX spending as more difficult apartments are renovated

Result: positioning as core property

Re-letting at higher level to tenants from middle class (new letting 50% above in-place rents) gradually adapted with rental development

slide-34
SLIDE 34

As of December 31, 2014 split (€m) 2012 2013 2014 Resi Core OTTO II GRI 100.2 104.4 108.3 101.7 6.6 Services charges (30.2) (32.4) (32.8) (30.1) (2.6) NRI 70.0 72.0 75.5 71.6 4.0 Other expenses related to investment properties (29.0) (30.1) (28.0) (26.3) (1.8) NOI 41.0 41.9 47.5 45.3 2.2 Other operating income 1.6 3.5 2.3 2.2 0.1 Other operating expenses (5.9) (7.9) (22.3) (22.0) (0.3) Gain / loss on portfolio disposal 9.6 0.8 2.5 2.5 0.0 Revaluation 209.9 29.4 67.9 55.2 12.7 EBIT 256.3 67.7 97.9 83.2 14.7

Historic P&L

P&L Comments

Source: Company information

33

 Revenue from investment properties

increased in 2014, primarily due to the increase in rental income

 Reduction in Expenses related to

investment properties mainly driven by decreasing vacancy

 Corporate and other operating expenses

increased in 2014, principally due to goodwill impairment of €11m from the purchase of BGP Asset Management

 Net gains on disposals increased to €2.5m

in 2014 primarily due to gains on the sale

  • f a property in Berlin

 Net rental income increased by €3.6m,

driven by higher new rents achieved via the Rental Price Cockpit and a decrease in vacancy in 2014

slide-35
SLIDE 35

As of 31-Dec 2014 split (€m) 2012 2013 2014 Resi Core OTTO II EBIT 256.3 67.7 97.9 83.2 14.7 Finance income 0.1 0.1 0.1 0.0 0.0 Finance costs (63.9) (60.9) (57.6) (55.9) (1.7) Net gains on derivatives 9.1 15.2 4.8 4.8 0.0 Net finance expenses (54.7) (45.6) (52.8) (51.0) (1.7) Share of result from associates (21.4) 18.2 (35.7) (35.7) 0.0 Profit before tax from continuing

  • perations

180.2 40.3 9.4 (3.5) 13.0 Current income tax (0.9) (0.2) 1.2 1.2 (0.0) Deferred income tax (34.3) (6.1) (5.3) (5.5) 0.1 Profit for the period from continuing

  • perations

145.0 34.0 5.3 (7.8) 13.1 Profit/ (loss) after tax for the period from discontinued operations (5.3) 16.8 50.2 50.2 0.0 Profit 139.7 50.8 55.5 42.4 13.1

Historic P&L (cont’d)

P&L Comments

Source: Company information (1) including also others non-core

34

 In 2014, net gain on derivates only

includes the reversal of past fair value liabilities

 Net finance expenses increased in 2014,

mainly due to a decrease in net gains on swap contracts valuation

 Net finance expenses in 2014 include

€1.8m of issuance costs’ amortization

 Result from associates includes 49% stake

in the asset management platform, the share of result in non core activities and impairment of the full investment value in a retail portfolio financed in Swiss Francs

 Income tax expenses remain low as non-

recognised accumulated loss carry forward is partially compensating valuation gains

 Current income tax changed from a tax

payment in 2013 to a gain of €1.2m in 2014 mainly as the result of an over- estimated tax liability

 Profit from disc. operations increased in

2014, driven by the sale of the Group's logistic activities

slide-36
SLIDE 36

As of 31-Dec Consolidated statement of financial position data (€m) 2012 2013 2014 Assets Tangible assets 1,322.9 1,124.6 1,084.7 Investment in associates 64.7 82.9 37.4 Goodwill

  • 4.6

Financial instruments held to maturity

  • 20.4

20.4 Other non current assets 3.7 2.4 1.3 Total non-current assets 1,391.3 1,230.3 1,148.4 Tenants receivables 2.9 1.9 2.4 Other current assets 23.1 28.8 59.1 Cash and cash equivalents 38.5 34.8 50.1 Total current assets 64.5 65.5 111.5 Assets classified as held for sale 87.8 313.1 98.0 Total assets 1,543.6 1,608.9 1,357.9 Equity Total capital reserves attributable to the owners of the parent (550.0) (499.3) (444.2) Non-controlling interests (0.3) (0.2) 0.2 Total equity (550.3) (499.5) (444.0) Liabilities Loans from banks and institutional investors 311.6 516.7 566.0 Loans from related parties 728.9 728.6 728.4 Interest on loans from related parties 200.4 231.9 260.7 Finance lease 2.6 0.0 0.0 Derivative financial instruments 47.1 5.2 0.0 Deferred tax liabilities 27.5 33.7 39.0 Other non-current liabilities

  • 20.4

20.4 Total non-current liabilities 1,318.3 1,536.5 1,614.5 Loans from banks and institutional investors 663.1 197.4 37.9 Finance lease 0.0 0.0 0.0 Accrued interest payable to banks 6.3 8.1 8.3 Accounts payable and accrued expenses 39.6 25.5 62.0 Income taxes payable 1.3 1.1 0.5 Total current liabilities 710.4 232.2 108.7 Liabilities directly associated with the assets classified as held for sale 65.3 339.7 78.8 Total liabilities 2,093.9 2,108.4 1,801.9 Total equity and liabilities 1,543.6 1,608.9 1,357.9

Historic balance sheet

Balance sheet Comments

35

Source: Company information (1) BGP Holdings Europe S.à r.l. became substitute lender replacing the retiring lender, GPT RE Limited, to the Preferred Loan concluded by the Company and GPT RE Limited in June 2005 for an amount up to AUD 1,020,000,000. As at December 2014 the principal of that loan amounts to 986,905,213 (no change since 1 January 2012)

 In order to meet the retention requirement,

the company holds €20.4m of class D notes issued by Monnet Finance Limited

 As of 5-May, 2015, all assets held for sale

are sold, except one retail portfolio valued at €44m

 Loans from related parties include

primarily the Preferred Loan (granted by BGP Holdings Europe1)

 Loans from banks and institutional

investors include the CMBS, and loans from Berliner Volksbanken and the Berlin Hyp finance facility

 Cash taxes from operations is expected to

be very low going forward, due to significant tax loss carry forward

 End of 2014, associates include two retail

portfolios and a minority stake in one residential portfolio

slide-37
SLIDE 37

As of 31-Dec 2014 (€m) 2012 2013 2014

  • Cont. Discont.

Operating activities Profit/(loss) before tax from continuing operations 180.2 40.3 9.4 9.4 0.0 Profit /(loss) before tax from discontinued operations (5.5) 17.3 50.3 0.0 50.3 Profit/(loss) before tax 174.7 57.6 59.7 9.4 50.3 Adjustments to reconcile profit before tax to net cash flows: Fair value adjustments of investment properties (194.1) (25.5) (69.6) (67.9) (1.7) Fair value adjustments of derivative financial instruments (12.2) (26.9) (10.4) (4.8) (5.6) Amortization and impairment

  • 14.4

14.4 0.0 Net finance expenses 86.1 80.8 65.5 57.6 8.0 Share of result of associates 21.4 (18.2) 35.7 35.7 0.0 Gain on disposal of investment properties (9.7) (2.4) (50.1) (2.7) (47.4) Change in working capital (1.2) (23.7) (10.4) 1.1 (11.5) Tax paid (0.4) (3.2) (0.2) (0.1) (0.1) Net cash flows from operating activities 64.7 38.6 34.6 42.6 (8.1) Investing activities Capital expenditure on investment properties (12.8) (6.9) (21.0) (20.9) (0.1) Proceeds from disposal of investment properties 26.8 22.1 102.9 11.0 91.9 Acquisition of a subsidiary, net of cash acquired

  • (15.6)

(15.6) 0.0 Proceeds from associates 0.0 0.0 8.1 8.1 0.0 Interest received 0.2 0.2 0.1 0.1 0.0 Net cash flows from investing activities 14.1 15.4 74.4 (17.4) 91.8 Financing activities Repayments of borrowings (38.1) (386.3) (275.3) (208.8) (66.5) Proceeds from borrowings

  • 387.0

199.2 199.2 0.0 Transfer from continued to discontinued 0.0 0.0 0.0 25.3 (25.3) Interest paid and other (48.5) (46.0) (32.6) (24.8) (7.8) Net cash flows used in financing activities (86.6) (45.2) (108.7) (9.1) (99.6) Net increase/(decrease) in cash and cash equivalents (7.7) 8.8 0.3 16.2 (15.9) Cash and cash equivalents at the beginning of the year 48.7 41.0 49.8 30.0 19.7 Cash and cash equivalents at the end of the year 41.0 49.8 50.1 46.2 3.9

Historic cash flow statement

Cash flow statement Comments

Source: Company information

36

 In 2014, net cash flows from operating

activities was €34.6m compared to €38.6m in 2013, mainly as a result of the restructuring of the portfolio and the integration of the management platform

 Net finance expenses comprises the net of

finance income, finance costs and net gains on derivatives

 Finance costs includes interest on bank

loans, swap payments, amortization of capitalized finance costs, net foreign currency exchange losses and other finance costs. Net gains on derivatives relate to gains on the Group's interest rate swap contracts.

 Change in working capital is highly

influenced by the sale of discontinued activities and service charges

 Repayment of borrowings include €66m

repayment upon sale of discontinued assets and the refinancing from Franz 1 and Bundaberg