Property Presentation ! April 2013 ! Legal Disclaimers ! This is not - - PowerPoint PPT Presentation

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Property Presentation ! April 2013 ! Legal Disclaimers ! This is not - - PowerPoint PPT Presentation

Property Presentation ! April 2013 ! Legal Disclaimers ! This is not an offer to sell or a solicitation of an offer to purchase securities looking statements are typically identified by terminology such as may, by Mongolia Growth Group


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Property Presentation!

April 2013!

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2!

Legal Disclaimers!

This is not an offer to sell or a solicitation of an offer to purchase securities by Mongolia Growth Group (the “Company”). Any such offer or solicitation will only be made by means of the Company’s Offering Documents (e.g., prospectus, offering memorandum, subscription agreement and or similar documents) and only in jurisdictions where permitted by law. Investors should refer to the Offering Documents for more complete information, including investment risks, fees and expenses. !

!

The securities are a highly speculative investment and are not intended as a complete investment program. They are designed only for sophisticated persons who can bear the economic risk of the loss of their investment in the Company and who have limited need for liquidity in their investment. There can be no assurance that the Company will achieve its objectives. Target investment goals are not a guarantee of future returns. ! ! The attached material is provided for informational purposes only as of the date hereof, is not complete, and may not contain certain material information about the Company, including important disclosures and risk factors associated with an investment in the Company. This information does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. More complete disclosures and the terms and conditions relating to a particular investment is, or will be, contained in the Offering Documents. Before making any investment, prospective investors should thoroughly and carefully review the Offering Documents with their financial, legal and tax advisors to determine whether an investment is suitable for them.! ! The attached material includes forward-looking statements relating to, among other things, the future financial performance of and objectives of the Company; plans and expectations for the operation of the Company; and estimates or expectations for fees, costs and expenses. These forward- looking statements are typically identified by terminology such as “may,” “will,” “should,” “expect,” “anticipates,” “plans,” “intends,” “believes,” “estimates,” “projects,” “predicts,” “seeks,” “potential,” “continue” or other similar terminology. Forward-looking statements are inherently unreliable, and prospective investors should not rely on them. The forward-looking statements are based on the Company’s current expectations, assumptions, estimates and projections about future events. Actual results are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed in a forward-looking statement as a result

  • f various factors which may be further described in the Company’s

Offering Documents. The Company does not have any obligation to update

  • r otherwise revise any forward-looking statements in the attached material
  • r to reflect the occurrence of unanticipated events.!

! Certain information contained herein have been prepared by third-party sources, and such information has not been independently audited or verified by the Company. The Company has used its best efforts to ensure the accuracy and completeness of the information presented.!

!

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Legal Disclaimers!

Forward Looking Statements! ! This document, together with any documents incorporated by reference herein, contains statements about expected future events and financial and

  • perating results that are forward-looking. From time to time, we may also

provide oral or written forward-looking statements in other materials we release to the public. Forward-looking statements give our current expectations or forecasts of future-events. You can identify these statements by forward-looking words such as "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions, or that events or conditions "will", "would", "may", "could", "should" or "might" occur and similar words. In addition, statements that we make in this document including any documents incorporated by reference herein that are not statements of historical fact may also be forward-looking statements.! ! Forward-looking statements are not guarantees of our future performance and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. For example, some risks, uncertainties and assumptions include: capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada and the United States; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production and between actual and estimated reserves and resources; changes in national and local government legislation in Canada, the United States and Mongolia or any other country in which the Company currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which the Company does or may carry on business; the speculative nature of oil and natural gas exploration, production and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; competition; loss of key employees, additional funding requirements; stock market volatility and ability to access sufficient capital from internal and external sources; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; and defective title to claims or property

  • r contests over claims to oil and gas properties. In addition, there are risks

and hazards associated with the business of oil and natural gas exploration, production and development, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks). You should not place undue reliance on forward-looking statements.! ! We do not promise to notify you if we learn that our assumptions or projections are wrong for any reason except as required under applicable securities laws. We do not undertake any obligation to update forward- looking statements, whether as a result of new information, future events or

  • therwise except as required under applicable securities laws. You should

be aware that all the risk factors discussed in this document could cause our actual results to differ from any forward-looking statements. !

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!! Land area: 1.56m sq.km! !! 19th largest country in the world! !! Capital: Ulaanbaatar!

Mongolia!

Ulaanbaatar!

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Ulaanbaatar City Map!

Mountains Mountains

A single 2-lane east-west road constricts movement and focuses all development into the downtown !

  • f approximately 2km North-South by 3 km East-West!

Airport

Peace Avenue Is Only Main East-West Road City Is Constricted To The North And South By Mountains

Airport Airport

Mountains Mountains

Ulaanbaatar is constricted by mountains to the north and the south! Downtown !

Airport

Peace Avenue Is Only Main East-West Road City Is Constricted To The North And South By Mountains

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View of Downtown UB!

Ring Road

D

  • w

n t

  • w

n C

  • r

e

Gandan Ger District

Parliament

New UN Building

Central Business District

Peace Avenue Seoul Street

Ring Road North

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MGG Property Portfolio!

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MGG Property Locations!

500 meters! 2000 feet!

Peace Avenue

Parliament

CENTRAL BUSINESS DISTRICT

DOWNTOWN CORE Seoul Street!

Each property location is designated by a pink dot.!

Small Ring Road!

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MGG Portfolio Breakdown!

Type! # of Meters! # of Properties! At Cost! % At Cost! Residential! 2,200! 19! 2.9B MNT! 5.8%! Retail! 6,502! 48! 19.4B MNT! 39.7%! Office! 5,231! 6! 10.1B MNT! 20.7%! Redevelopment! 14,062! 6! 16.5B MNT! 33.8%! Total! 27,995! 78! 48.9B MNT! 100%!

As of March 31, 2013!

All data as of March 31 , 2013. Percentages are calculated based on property purchase costs in MNT.! !

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MGG Real Estate Breakdown!

As of March 31, 2013!

All data as of March 31, 2013. Percentages are calculated based on property purchase costs in MNT.!

44.3%! 36.8%! 6.6%! 12.3%!

Retail! Redevelopment! Residential! Office!

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MGG Acquisition Growth Chart!

MNT!

As of March 31, 2013!

All data as of March 31 , 2013. Total property purchased is calculated based on property purchase costs in MNT.! 0! 5,000,000,000! 10,000,000,000! 15,000,000,000! 20,000,000,000! 25,000,000,000! 30,000,000,000! 35,000,000,000! 40,000,000,000! 45,000,000,000! 50,000,000,000! Redevelopment! Office Space! Retail Space! Residential !

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MGG Property Usage!

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MGG Property Usage Breakdown!

All data as of March 31, 2013. Percentages are calculated based on property values.! For the purpose of this chart, MGG’s insurance subsidiary, Mandal Daatgal, is considered as a tenant as it pays rent to

  • MGG. The Property value of the space rented by Mandal is not included under “corporate use”. !

As of March 31, 2013!

45.3%! 36.8%! 4.7%! 2.2%! 6.9%! 4.2%! Rented! Redevelopment! Renovation! For Sale! Vacant! Corporate Use!

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MGG Lease Breakdown!

Retail! Office! Residential! Total!

5 Years! 22.0%! 0.0%! 0.0%! 13.8%! 3 Years 23.3%! 39.3%! 0.0%! 26.3%! 2 Years! 25.8%! 28.3%! 3.0%! 24.9%! 1 Year! 28.9% 32.4% 97.0% 35.0%

As of March 31, 2013!

All data is presented in MNT. Percentages are calculated based on the amount of rent collected.!

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Occupancy Rates!

Retail! Office! Residential! Total! Occupancy rate! 93.8%! 51.3%! 96.9%! 92.2%!

As of March 31, 2013!

Percentages are calculated based on the amount of rent collected in relation to the total rentable properties.!

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Monthly Rental Revenue!

As of March 31, 2013!

MNT! All data as of March 31, 2013 is presented in MNT and includes VAT received. MGG’s insurance subsidiary, Mandal Daatgal, has paid 11,653,760 MNT monthly since March 2013; and paid 8,410,210 MNT in rent to MGG in February 2013 and 8,410,210 in January 2013.!

0! 50,000,000! 100,000,000! 150,000,000! 200,000,000! 250,000,000!

Redevelopment! Office! Retail! Residential!

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Tenant Breakdown!

Types of Tenants! % of rent! # of Tenants! Restaurants/Pubs/Cafes!

29.1% 22

Offices!

29.4% 18

Services!

9.6% 13

Retail Stores!

14.2% 13

Banks!

4.7% 2

Cell Phone Stores!

1.7% 1

Other Commercial and Office!

3.7% 15

Residential!

7.7% 14

Total!

100.0% 102

As of March 31, 2013!

The percentage of tenant is calculated based on the total number of tenants in relation to property types as of end of March 2013. !

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Rent Breakdown!

Type! Average Yield1! % of Rent Total!

Residential! 9.8%! 7.7%! Retail! 9.0%! 54.7%! Office! 13.2%! 29.1%! Redevelopment! 1.3%! 8.5%! Total! 10.1%*! 100%!

1 Average yield is calculated as annual rent received as a percentage of total property acquisition cost (including capital expenditures). All data is presented in MNT.! * Total yield is based on all rentable properties that excludes land, redevelopments and properties under renovation. !

As of March 31, 2013!

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Conclusion!

According to the International Monetary Fund, Mongolia is expected to be one of the fastest growing economies in the world

  • ver the next decade. !

! We want to leverage that growth.!

!

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Contact!

For more information please visit: MongoliaGrowthGroup.com!

  • r contact: !

info@mongoliagrowthgroup.com!