RESULTS FOR HALF-YEAR ENDING AND PERFORMANCE UPDATE FOR THE QUARTER - - PowerPoint PPT Presentation

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RESULTS FOR HALF-YEAR ENDING AND PERFORMANCE UPDATE FOR THE QUARTER ENDING SEPTEMBER 30, 2012

Private and Confidential

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DISCLAIMER

Forward Looking Statements

It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Company’s plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions.

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YATRA CAPITAL LIMITED

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EXECUTIVE SUMMARY

Executive Summary

• In its second quarter review of monetary policy, RBI has scaled down the growth

projection from 6.5% to 5.8% considering the weakening of all indicators of growth

• Sentiment in the markets has improved as government launches the next phase of

the reforms process; However inflationary concerns and slowing growth continue to

• verhang
• Most experts predict that growth slowdown has largely bottomed out
• Yatra Capital NAV at €6.1, 1.66% higher than NAV on March 31, 2012
• Company has completed the process of redemption of shares; 2.14 million shares

redeemed at €3.5 per share. Total consideration of Shares redeemed is €7.5 million

• Real Estate markets continue to be stable
• Sales improved across key markets on account of Diwali season; However high

interest rates and reduced affordability continues to impact off take.

• Commercial rentals stable despite slowing demand
• Retail Rentals will be stable; Approval for FDI in Multi brand retail creates

positive sentiment; on the ground implementation will be key to further growth

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EXECUTIVE SUMMARY

Executive Summary (continued)

• Bangalore residential project obtained requisite approval in last quarter and

launched the project under the name “One Bangalore West”. It received an encouraging response with sales of 262 units out of 430 units launched

• Approval of allowing up to 51% foreign direct investment (FDI) in the multi brand

retail is expected to benefit Phoenix Mills in long run from the leasing perspective

• Finishing work continues at Kolkata hotel. The opening has been delayed as final
• ccupancy certificate is yet to be received
• In Bhavnagar, exit terms were approved by Investment Committee (details on slide

31). Documentation is in progress.

• In Batanagar, approval from the Government body to file the merger scheme with

the courts is still awaited

• Progress on fund raising for the shortfall in Indore retail mall and revised business

plan in Bantala IT SEZ continues to lag

• Apart from continuing to pursue the above issues over the next few quarters, the

key focus has been to achieve Bhavnagar exit. We also continue to focus on distributions to shareholders either through project cash flows (as in the case of the Pune, Indore and Bangalore residential projects) and through the sale of K2’s stake in the projects once completed (case in point being the Taj Gateway in Kolkata) or where development is not being pursued (such as Agra)

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SHARE PRICE PERFORMANCE

Yatra Share trading Volume- Monthly Yatra Share Price Performance

Yatra Share Price Performance

Note: NAV for March 31st was announced to the market in the month of July and the NAV as of September 30th was announced to market in November.

• The Company has repurchased under the 2nd Buyback programme to date, 16,076

Ordinary shares for a total consideration of EUR 51,407. The number of Ordinary shares

• utstanding in issue is 21,230,639 (will change after redemption)
• The Company also successfully completed the share redemption process in accordance

with the announcement made on November 8, 2012. 10% of the outstanding shares in issue were redeemed at €3.5 for a total consideration of €7.5 million

• The highest traded price of the shares for the quarter has been €3.05 whereas the lowest

traded price was €2.7; share price as on September 28, 2012 was €2.90

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PERFORMANCE SUMMARY FOR THE QUARTER ENDING SEPTEMBER 30 , 2012

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SUMMARY

Result Summary

• Net Asset Value* (NAV) per share at €6.1,

1.66% higher than NAV on March 31, 2012

• 76% of net funds raised was committed as at

September 30, 2012

• Pre-let/ let/ sold/ pre-sold/ terms agreed for
• ver

5.7 million sq ft as on September 30, 2012

• The Bangalore Market City project has been

launched post receipt of all approvals and has seen strong sales

• Net Asset Value (“NAV”) is based on Yatra’s (including all subsidiaries) net assets divided by number of shares outstanding as at

September 30, 2012

NAV in EUR

• Internal desktop valuation as on September 30, 2012 conducted by the Manager,

extending the CBRE valuation principles established for March 31, 2012. However these amounts are expected to be realisable only if Yatra continues to stay invested in the projects until their full completion

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VALUATIONS & NAV

Valuations & NAV

Development Project Amount Committed Project Valuation NAV* Mar’12 (CBRE valuation) Sep'12 (Desktop Valuation) Gain/(Loss) in Sep'12 Mar’12 (CBRE valuation) Sep'12 (Desktop Valuation) Gain/(Loss) in Sep'12 Contributi

• n to NAV

Euro million Euro million Euro million % Euro million Euro million % % Market City, Bangalore # 28.07 20.57 25.80 25.5 22.29 25.61 14.88 19.94 Batanagar, Kolkata 20.28 8.16 8.17 0.1 8.68 8.73 0.57 6.80 Market City Retail, Pune 17.05 23.96 24.74 3.2 4.33 5.51 27.18 4.29 Forum IT SEZ, Kolkata 16.68 4.62 4.02

• 13.1

1.80 0.59

• 67.04

0.46 Residential Project, Pune 15.88 23.22 23.53 1.3 18.13 19.96 10.06 15.54 Treasure Market City, Indore 10.97 6.07 6.07 0.0 0.58 0.03

• 95.62

0.02 City Centre, Nashik 10.42 11.21 11.50 2.6 7.98 8.48 6.28 6.61 Treasure Town, Bijalpur 7.71 16.77 17.14 2.2 11.19 11.62 3.84 9.05 Mixed Use, Bhavnagar 6.28 3.31 2.59

• 21.6

0.66 0.00

• 100.0

0.00 Taj Gateway, Kolkata 4.64 10.14 10.21 0.7 4.95 4.35

• 12.13

3.39 Phoenix United Mall, Agra 4.04 2.83 2.84 0.3 2.73 2.78 1.89 2.17 Listed Equity Holding The Phoenix Mills 3.73 1.95 1.83

• 5.72

1.95 1.83

• 5.72

1.43 Unlisted Equity Holding Saket Engineers Private Ltd 10.13 9.90 9.65

• 2.5

8.15 7.96

• 2.36

6.20 Total 155.88 142.71 148.10 3.8 93.42 97.44 4.31 Cash and Receivables NA NA NA NA 31.79 28.09

• 11.62

21.88 Market City Hospitality, Pune^ 4.58

• 2.90

2.86

• 1.44

2.23 Total 160.46 142.71 148.10 3.8 128.11 128.40 0.22 100.0 *NAV numbers post balance sheet adjustments

#includes two SPVs

^ Not included; Valued at Cost

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MACRO ECONOMIC OVERVIEW

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MACRO ECONOMIC OUTLOOK

Macro Economic Summary

• In its second quarter review of monetary policy, RBI has scaled down the growth

projection from 6.5% to 5.8% considering the weakening of all indicators of growth

• Increased risk from the global economic factors, poor IIP data, weakening net

exports and estimated decline in food grain production resulted in this scale down

• f growth
• Government of India (GOI) allowed FDI up to 51% in the multi brand retailing and

up to 100% in single brand retail. It also permitted FDI in civil aviation, power exchange and broadcasting sectors in a bid to improve efficiency and productivity

• RBI reduced the cash reserve ratio (CRR) by 25 basis points from 4.5% to 4.25%.

The reduction in the CRR will inject around INR 175 billion (€2.5 billion) of primary liquidity into the banking system

• Inflows from foreign institutional investors (FIIs), the main driver of Indian

equities, topped at $20 billion (around INR 1.1 trillion) in the first 11 months of the calendar year - the second highest since 1993, when India opened the doors to this class of investors

• A combination of quantitative easing in the developed world and the government’s

efforts to change the perception about policy-making during the second half of 2012 has led to strong inflows in the country

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REAL ESTATE OUTLOOK

Real Estate Markets*

* Source :- JLL & Market Research

• Residential sales wait for interest rate cuts and developer discounts; Affordability

continues to be key concern; Marginal Increase in Sales

— A high interest rate scenario continued to impact sales velocity as buyers continue to wait for rate cuts to improve affordability. Preference continues to be towards completed projects as compared to under construction projects; Absorption of residential units across India's top seven cities recorded a q-o-q increase of about 12% in 3Q12 — Launches improved across most markets during Diwali season and prices continued to be stable

• Retail: Retail Sales and footfalls exhibited a positive trend in light of the festive

season, Rentals continued to be largely stable across micro markets; Optimism in the sector account of approval for FDI in multi brand retail.

— Domestic consumption and new launches continues to positively impact sales and footfalls, Rentals continue to be stable on account of supply pressures

• Office: A weak sentiment and an supply overhang continues to impact absorption;

Net absorptions continue to be largely stagnant

— Absorption was largely stagnant across most micro markets; tenant churn increased towards newer properties — The Office sector has entered an initial growth phase with a gradual increase in rents. Capital values in the office sector in India on average are still 23% lower than their last peak values (witnessed in mid-2008)

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PORTFOLIO OVERVIEW AS AT SEPTEMBER 30 , 2012

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• Twelve projects (two Bangalore SPVs being taken as one project due to proposed

amalgamation of business plans) and two entity level investments

• Over 18.9* million sq ft saleable / leasable area spread across projects
• Over 5.7 million sq ft pre-let / let / pre-sold / sold / terms agreed for as at September 30, 2012 as

against 5.4** million sq ft at the end of the previous quarter

• Financial closure is at 75% same as the previous quarter at the project level#; Weighted average

cost of debt at 14.2% for portfolio companies

PORTFOLIO OVERVIEW

Yatra Portfolio Overview

Geographic Diversification Sectoral Diversification

*Excludes Alliance Hospitality SPV since its business plan is under review **Excludes sold /leased area which was considered earlier for the township company (proposed to be merged with 25 acres company) in Batanagar, Kolkata and Alliance Hospitality SPV

#Financial closure achieved– 100% for residential projects and 71% for non-residential projects. Mix of higher debt requirements, lapsing of sanctions & debt restatement; includes promoter/unsecured

loans; could change depending on when the financing is arranged by the company

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KEY PORTFOLIO EVENTS

Key Portfolio Events in the Quarter

Project Key Events Market City, Bangalore The project was launched under the name “One Bangalore West”. The project received an excellent sales response with 61% of Phase I inventory already sold Residential Project, Pune Sale of operational school completed; the proceeds substantially utilized for repaying debt Market City, Pune PVR multiplex, opened in September 2012 with 9 screens, has led to significant increase in the footfalls Mixed Use Development, Bhavnagar The project is partially complete with sluggish sales. If the fund were to remain invested through the life of the project, it may have to disburse the balance commitment €1.17 mn and wait till the project completion to exit. Since there is a huge uncertainty in sales and project completion, the fund has negotiated and finalized an exit terms through sale

• f its stake to the promoter at a value lower than the investment amount. This exit

proposal has been approved by Investment Committee and documentation is in progress Taj Gateway, Kolkata The hotel operator has taken over the possession of the hotel. The company is raising additional debt to complete last mile launching needs The Phoenix Mills Limited (PML) The Government approved a proposal to allow up to 51% foreign direct investment (FDI) in multi-brand retail. Phoenix Mills, a pure play on retail real estate, is expected to benefit from this policy in the long run

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PORTFOLIO OVERVIEW

Portfolio Snapshot

Complete / Almost complete Significantly complete Advanced stage Initial stage Yet to commence Project Name Asset Class Partner Equity Committed € million Equity Stake Financial Closure Achieved Land Acquisition Planning Approvals Pre - Construction Activities Construction Status Leasing/ Sales Status

Market City, Bangalore # Residential Phoenix Mills 28.07 30.00% n/a Batanagar, Kolkata Residential Hiland Group 20.28 50.00% n/a Market City Retail, Pune Retail Mall Phoenix Mills 17.05 24.00% 97% Forum IT SEZ, Kolkata Office Forum Group 16.68 49.00% 77% Residential Project, Pune Residential Kolte Patil 15.88 49.00% 100% Treasure Market City, Indore Mixed-use TWDPL 10.98 28.90% 29%# # City Centre Mall, Nashik Retail Mall Sarda Group 10.42 50.00% 100% Saket Engineers, Hyderabad Enterprise Level Saket Group 10.13 27.25% 100%

n/a n/a n/a n/a n/a

Treasure City, Bijalpur Residential TWDPL 7.71 40.00% 100% Mixed Use, Bhavnagar Retail Mall Modi Developers 6.28 50.00% 100% Taj Gateway, Kolkata Hospitality Jalan Group 4.64 40.00% 86%# # #

n/a

Market City Hospitality, Pune n/a Phoenix Mills 4.58 20.00% n/a

n/a n/a n/a n/a

Phoenix United Mall, Agra n/a Big Apple 4.04 28.00% n/a

n/a n/a n/a n/a

The Phoenix Mills Enterprise Level Phoenix Mills 3.73 0.44% n/a

n/a n/a n/a n/a n/a

# includes two SPVs # # incorporates current estimates of anticipated increase in costs, principal repayments and interest on incremental loan; could change as and when the financing is

arranged by the company

# # # Manager’s latest estimate accounting for opening budget; yet to be confirmed by the Company

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PORTFOLIO OVERVIEW

Consolidated Debt Sanction Status (€ million) Debt Maturity Profile (% of Total Sanctioned Debt)** Project Completion Status Project Completion Year Wise* Land / pre construction 2 Projects Construction Started 4 Projects Advanced Construction 4 Projects Completed 2 Projects

* Completion dates are for the first phases, are indicative and are dependant upon further project progress. Sales and construction completion in residential projects is on-going. This excludes Agra SPV, Alliance Hospitality SPV and Bhavnagar SPV ** The debt maturity profile considers the repayment of secured loans and may not be directly comparable with the project completion schedules.

19.9% 16.7% 30.2% 26.8% 3.8%1.8% 0.7% 0.0% 0.0% 0% 5% 10% 15% 20% 25% 30% 35% FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 1

• 1

2 4 1 2009 2010 2011 2012 2013 2014 2015

• No. of Projects

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PORTFOLIO OVERVIEW

Financial Closure

Project Projected Debt

(€ million)

Sanctioned Debt

(€ million)

Shortfall

(€ million)

Status Additional Equity Requirements Market City Retail, Pune 88.05 85.12 2.94

• Company raised additional debt of

€7.34 million to meet deficit caused

• n account of repayment of liabilities
• For

the balance, the SPV is exploring various options including sale of the multiplex area Currently not anticipated Treasure Market City, Indore 68.66 19.81 48.85

• Financial Closure critical to ensure

that value in the project is protected

• The company has approved strata

sale to the extent of 100,000 sq ft to repay

• verdue

payments to the lenders

• Company

continues to explore various options of raising additional equity/quasi-equity but no progress so far

• Will require additional

equity infusion if funding gap is not closed

• The fund may commit
• nly if it can be

demonstrated that additional funding can generate threshold returns Forum IT SEZ, Kolkata 30.02 23.23 6.79 The promoter continues to infuse in the form of unsecured loan to fund interest and construction cost The Manager has started dialogue with the Promoter to explore exit options Taj Gateway, Kolkata 15.12 12.99 2.13 During the quarter, the promoter has raised €0.06 million in the form of unsecured loan to fund the shortfall in construction cost No further equity infusion expected

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DETAILED PROJECT UPDATES AS AT SEPTEMBER 30 , 2012

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RESIDENTIAL PROJECT, BANGALORE*

Current Status Map 3D Elevation Current Status Investment Summary City Population: 9.5 million Economic Drivers: IT/ITeS, Biotechnology, Engineering (source: CBRE Research)

Asset Class Residential development Development Partner The Phoenix Mills, a leading real estate developer, specializing in large format mixed use developments Saleable Area 2.0 million sq ft ** K2’s Commitment €28.07 million (fully disbursed) K2’s Equity Stake 30% Land Acquisition Completed Development Plans Finalized for Phase – I Planning Approvals Layout plan approvals and building plan approvals for Phase – I are in place Debt Projected: Nil; Sanctioned: Nil Construction Status Excavation work has commenced for Phase – I which includes five residential towers. Company is in advanced stage of negotiation for awarding the civil contract for five towers Sales Update The Phase – I (comprising of 3 towers of 29 stories each and 2 of 20 stories each) was launched under the name “One Bangalore West” during first week of September

• 2012. 262 units totaling 0.67 million sq ft with a sale value
• f €69.5 million (INR 4736 million) were booked since

launch Completion Date Q3 2015 for Phase - I Comments As per the report submitted by independent architect, the project has potential to improve total FAR from 2.0 to 2.9 million sq ft by purchasing TDR. The Company is in the process of acquiring TDR which is essential for seeking regulatory approvals to launch Phase-II of the project * Includes two SPVs ** Development potential of this project can increase with the use of Transferable Development Rights.

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RESIDENTIAL PROJECT, PUNE

Current Status Map Project Master Plan Current Status Investment Summary City Population: 5.1 million Economic Drivers: Engineering, Automobile, IT,/ITeS

(source: CBRE Research)

Asset Class Residential led mixed use development Development Partner Kolte Patil Developers, a prominent Pune based residential real estate developer Saleable Area 2.1 million sq ft* K2’s Commitment €15.88 million (fully disbursed) K2’s Equity Stake 49% Land Acquisition Completed Development Plans Finalized for Phase I Planning Approvals Partial planning approvals received Debt Outstanding debt: ~€0.9 million Construction Status Civil works is completed up to 10th floor for the previously launched residential component. Excavation and foundation work for new residential (‘Langston’) building is underway while civil works completed till 1st slab for commercial component Sales/Leasing Update 197 apartments out of the launched 315 apartments have been sold with 42 apartments sold during the last quarter. In commercial and retail, 42 out of 49 units launched have been sold. The sale of operational school was completed and consideration received has been utilised for clearing debts Completion Date Q1 2015 for Phase - I Comments Focus is to maintain sales momentum in Phase –I, obtain requisite approvals and development rights (in lieu of the handover of the road and reserved land) to launch the next phase

• subject to development rights expected in lieu of handover of the road

and reserved area land to authorities

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Current Status Map 3D Elevation Current Status Investment Summary City Population: 3.2 million Economic Drivers: Textiles, Pharmaceuticals, Automobile, Agro based industries

(source: CBRE Research)

Asset Class Residential led mixed use development Development Partner TWDPL, a leading developer of urban city centers, shopping malls and townships in Tier II cities Saleable Area 3.41 million sq ft* K2’s Commitment €7.71 million (fully disbursed) K2’s Equity Stake 40% (42.8% of profits) Land Acquisition Completed Development Plans Completed Planning Approvals Partially received Debt Outstanding debt: €4.1 million Construction Status

Finishing and MEP works is in progress for all 26 buildings in Treasure Vihar, 7 buildings in Treasure Town and 80 Row Houses. Construction of infrastructure facilities like road, sewage, services are in progress for plotted

• development. Tiling work of artificial lake is underway

Sales/Leasing Update

1,533 units comprising of plots, row houses, apartments and affordable housing units have been sold. Besides residential, 30 out of 33 shops have been sold (net of cancellations). Decrease in 10 residential units (compared to last quarter) is attributed to cancellation of bookings where buyers had defaulted on payments. There is a delay in the handover of EWS units to the Government due to ambiguity in the norms that determine the selling price and allotment procedure for EWS (Economically Weaker Section) units. This inaction of Government is affecting all the developers in Indore including Treasure Town

Completion Date

Q3 2013 for Phase –I

Comments

Focus is on handover of the EWS units and completing the current phase of the residential

TREASURE TOWN, INDORE

* Subject to securing approvals of change of land use and building plan for Phase - II

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BATANAGAR, KOLKATA

Current Status Map Current Status Master Plan of the Township Investment Summary City Population: 14.7 million (KMDA region) Economic Drivers: Jute, Steel, Petrochemical, Plastic, IT/ITeS (source: DTZ Research) Asset Class Residential led mixed use Development Partner

Riverbank Developers, a joint venture between the Kolkata Municipal Development Authority, and one of the leading residential developers, Calcutta Metropolitan Group Ltd., in Kolkata

Saleable Area

~10 million sq ft (complete township)*

K2’s Commitment

€20.28 million (fully disbursed)

K2’s Equity Stake

Originally 50% in the SEZ SPV; to be ~31% in the entire 262 acre township if merger gets approved

Land Acquisition

Completed

Development Plans

Completed

Planning Approvals

Master plan and building plans approved

Debt

Projected: € 40.4 million; Sanctioned: €40.4 million (for township)

Construction Status

In mid market housing (built on 25 acres originally meant for SEZ), civil work for the first tower reached up to 7th slab and piling work in progress for the second tower. The works

• n

MEP interiors and finishes have commenced for various components

• f

premium housing in the township company

Sales/Leasing Update

Out of 224 units launched in the mid market housing (built on 25 acres originally meant for SEZ) category, 218 units have been sold . Of the 404 units in the first phase of premium housing, 302 units have been sold.

Completion Date

NA

Comments

Migration of K2’s stake to the larger township depends

• n KMDA approval for the merger. Post which merger

scheme needs to be filed with High Court for its approval * Includes saleable area of 1.4 million sq ft in 25 acres company

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CITY CENTRE MALL, NASHIK

Map Current Status Investment Summary City Population: 1.48 million Economic Drivers: Engineering, Government run industries, Agriculture

(source: JLLM Research)

Asset Class Retail development Development Partner Sarda Group, a diversified business group based

• ut of Nashik with interests in Real Estate,

Consumer Products and Education Leasable Area 0.37 million sq ft K2’s Commitment €10.42 million (fully disbursed) K2’s Equity Stake 50% Debt Outstanding LRD debt: €4.65 million Present Status Occupancy levels continue to hover around 58 to 60% with a small churn in the non-performing vanilla tenants Leasing Update During the quarter, four LOIs covering ~3,000 sq ft were signed. Letters of Intent (LOIs) and Lease Agreements for 230,763 sq ft of total retail space have been signed out of which 218,653 sq ft of the total retail space is currently operational Comments Leasing higher floors

• f

the mall has been

• challenging. As per recommendations made by a

consultant, the company is focussing on building food court and banquet area soon

• n

top

• floors. Applied for regulatory permissions

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MARKET CITY RETAIL, PUNE

Map Investment Summary City Population: 5.1 million Economic Drivers: Engineering, Automobile, IT,/ITeS

(source: CBRE Research)

Asset Class Retail led mixed use Development Partner The Phoenix Mills, a leading real estate developer, specializing in large format mixed use developments Saleable/ Leasable Area 1.4 million sq ft (Phase I): Phase I is spread across main mall of 1.13 million sq ft, Bazaar Mall retail of 0.15 million sq ft and Bazaar Mall Offices of 0.11 million sq ft. Bazaar Mall retail and Bazaar Mall Offices are being sold on strata title basis K2’s Commitment €17.05 million (fully disbursed) K2’s Equity Stake 24% Land Acquisition Completed Development Plans Completed Planning Approvals Received Debt Projected: €88.1 million; Sanctioned: €85.1 million Present Status Currently, 241 stores are trading at the mall; with this 76%

• f the main mall is operational. PVR multiplex, opened in

September 2012 with 9 screens, has led to more than 30% increase in footfalls Sales/Leasing Update 0.86 million sq ft is currently operational. In the Bazaar Mall 0.26 million sq ft has been sold Completion Date NA Comments Monitoring footfalls and the revenue sharing with the tenants Current Status

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TREASURE MARKET CITY, INDORE

Current Status Investment Summary

City Population: 3.2 million Economic Drivers: Textiles, Pharmaceuticals, Automobile, Agro based industries

(source: CBRE Research

Asset Class

Retail led mixed use development

Development Partner

TWDPL, a developer of urban city centers, shopping malls and townships in Tier II cities

Leasable Area

1.28 million sq ft ( ~1 .09 million sq ft of Retail space in Phase I; balance in subsequent phases)

K2’s Commitment

€10.98 million (€10.13 million disbursed)

K2’s Equity Stake

28.9%

Land Acquisition

Completed

Development Plans

Completed

Planning Approvals

Received

Debt

Projected: €68.66 million; Sanctioned: €19.81 million

Construction Status

Construction works stopped since March 2012

Sales/Leasing Update

Fresh leasing will resume after funding for the project is in place. Currently, total area under Letters

• f intent (LOIs)

stands at 0.41 million sq ft. The Company has done strata-sale of 19,000 sq ft

Completion Date

Q2 2014 for Phase I subject to achievement of financial closure which could be a challenge

Comments

Total interest and principal overdue of €3.0 million has already turned NPA. To avoid non-seizure of property, the company has approved strata sale to the extent of 100,000 sq ft (expected to generate approximately €6.6 million) to help partially repay

• verdue

payments. The company continues to explore options on raising equity/quasi-equity for the mall completion but no progress so far Map 3D Elevation Current Status

27 27

TAJ GATEWAY, KOLKATA

Current Status Map 3D Elevation Current Status

Investment Summary City Population: 14.7 million (KMDA region) Economic Drivers: Jute, Steel, Petrochemical, Plastic, IT/ITeS (source: DTZ Research) Asset Class Hospitality development Development Partner Jalan group, a prominent Kolkata based business family with interests in property developments and financial services Hotel Area 0.2 million sq ft / 196 rooms K2’s Commitment €4.62 million (fully disbursed) K2’s Equity Stake 40% Land Acquisition Completed Development Plans Completed Planning Approvals Received; Occupancy Certificate is under process Debt Projected: €15.12 million; Sanctioned: €12.99 million Construction Status Finishing works for 80 rooms are completed. Interior and fit

• ut works for balance rooms are in progress. The Operator

has taken over the possession of the hotel. The regulatory body has been slow in approving all projects in Kolkata metropolitan region. Delay in getting occupancy certificate has resulted in securing other permissions. The company is raising additional debt to complete last mile launch requirements Sales/Leasing Update Hotel operator agreement has been signed with The Indian Hotels Company (Taj Gateway) Completion Date Q2 2013 if debt funding is in place (for 80 rooms, restaurant, banquet area) and balance rooms expected to get

• perational after 6-9 months from the launch date

Comments The Manager closely monitoring development in SPV to ensure the hotel get partially operational by April 2013. Based on preliminary feedback from investment bankers, buyers could be interested after the hotel is commissioned; therefore active sales pitch will start only post operation

28 28

FORUM IT SEZ, KOLKATA

Map 3D Elevation Current Status Investment Summary City Population: 14.7 million (KMDA region) Economic Drivers: Jute, Steel, Petrochemical, Plastic, IT/ITeS (source: DTZ Research) Asset Class IT Special Economic Zone Development Partner Forum Projects, a prominent real estate developer in Kolkata credited with many landmark developments in the city Leasable Area 1.45 million sq ft ( ~0.7 million sq ft is planned in Phase I) K2’s Commitment €16.68 million (fully disbursed) K2’s Equity Stake 49% Land Acquisition Completed Development Plans Revised plans for Phase I is finalized Planning Approvals Received for Phase I Debt Projected: €30.02 million; Sanctioned: €23.23 million (for Phase – I) Construction Status Civil work at site is progressing at very slow pace given the lack of demand for IT offices in Kolkata and more particularly in the micro-market (Bantala) Sales/Leasing Update

• Completion Date

Q1 2014 for Phase – I subject to satisfactory leasing Comments The developer is considering building capacities commensurate with the expected sales

• absorption. The Manager has started dialogue with

the promoter to explore exit options

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MARKET CITY HOSPITALITY, PUNE

Current Status Map 3D Elevation Current Status Investment Summary City Population: 5.1 million Economic Drivers: Engineering, Automobile, IT/ITeS (source: CBRE Research) Asset Class Business plan under review Development Partner The Phoenix Mills, a leading real estate developer, specializing in large format mixed use developments Saleable Area NA K2’s Commitment €4.58 million (fully disbursed) K2’s Equity Stake 20% Land Acquisition Completed Development Plans Concept and design development plan for revised business plan is underway Planning Approvals Preliminary approval to be applied for revised development plan Debt NA Construction Status Mall structure was complete. Super structure (above the mall) to commence once revised business plan is finalized and subsequent approvals are obtained Sales/Leasing Update NA Completion Date NA Comments Building residential project (instead of a hotel) appears to be practical strategy given current market conditions in that micro market. The Manager is seeking the business plan from the company for further analysis

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PHOENIX UNITED MALL, AGRA

Current Status Map 3D Elevation Current Status Investment Summary City Population: 1.7 million Economic Drivers: Textiles, Leather, Handicraft and Tourism (source: CBRE Research) Asset Class Business plan under review Development Partner Big Apple Real Estate, an upcoming North India based developer, with retail projects in Tier II cities and Phoenix Mills Leasable Area NA K2’s Commitment €4.04 million (fully disbursed) K2’s Equity Stake 28% Land Acquisition Completed Development Plans NA Planning Approvals NA Debt NA Construction Status NA Sales/Leasing Update NA Completion Date NA Comments Development of land may take longer time which may go beyond fund’s life. Here the intent is to sell the land on “as is where basis” rather than complete development. In that direction, the Manager is discussing with the promoters to realign K2’s equity stake in the SPV

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MIXED USE DEVELOPMENT, BHAVNAGAR

Current Status Map 3D Elevation Current Status Investment Summary City Population: 0.6 million Economic Drivers: Manufacturing, Diamond Processing; Ship Breaking; Textiles, Food Processing

(source: CBRE Research)

Asset Class Residential led mixed use development Development Partner Modi Buildwell, a residential and retail developer in Western India Saleable/Leasable Area 0.57 million sq. ft (Residential: 285,000 sq ft; Retail : 224,000 sq ft; Commercial: 60,000 sq ft) K2’s Commitment €6.28 million (€5.11 million disbursed) K2’s Equity Stake 50% Land Acquisition Completed Development Plans Completed Planning Approvals Received Debt Outstanding debt: €0.16 million (working capital facility) Construction Status RCC work completed for the residential blocks Sales Update Sales have been sluggish with 0.21 million sq ft of residential component have been sold out of 0.29 million sq ft and 0.16 million sq ft of commercial and retail component have been sold out of 0.28 million sq

• ft. Cash inflow from the projects will be insufficient to

recover full capital Exit Date Q2 2013 Comments The project is partially complete with sluggish sales. If the fund were to remain invested through the life of the project, it may have to disburse the balance commitment €1.17 mn and wait till the project completion to exit. Since there is a huge uncertainty in sales and project completion, the fund has negotiated and finalized an exit terms through sale of its stake to the promoter at a value lower than the investment

• amount. The documentation for this exit, as approved

by the Investment Committee is in progress

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SAKET ENTERPRISE LEVEL, HYDERABAD

Current Status Map Current Status

Investment Summary

City Population: 6.8 million Economic Drivers: IT/ITES, Pharmaceutical , Biotechnology

(source: DTZ Research)

Asset Class Residential Unlisted Entity Level Investment Development Partner Saket Engineers, a Hyderabad based mid-sized residential developer Saleable Area NA K2’s Commitment €10.13 million (fully disbursed; includes equity investment

• f €6.85 million and mezzanine investment of €3.28 million

at 25% IRR) K2’s Equity Stake 27.25% Debt Projected: €21.94 million; Sanctioned: €21.94 million Construction Status Two projects are currently under development – Sriyam, among the first high rise structures in Hyderabad, and Pranaam, a project targeted at senior citizens. At Bangalore site, foundations works completed and 1st slab construction works in progress for residential tower and sample flat completed. Basic infrastructure work completed for newly launched villa project in Hyderabad; construction work on 19 villas has commenced Sales/Leasing Update 150 out of 272 apartments launched in Sriyam have been sold; 207 out of 323 apartments launched in Pranaam have been sold. Additionally, 57 units out of total 130 units in the Bangalore project and 22 units out of total 109 units in Bhusattva have been sold Completion Date NA Comments The Manager is pursuing with the Development partner to liquidate the land holdings of the Company so as to repay the mezz facility. Conclusion of sale of land parcels identified for this purpose is crucial. This sale is expected to materialize in the next 6-9 months

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THE PHOENIX MILLS LIMITED

Investment Summary Company Profile The Phoenix Mills (PML) is a mid cap real estate company with a focus on the retail, commercial and entertainment segments in Tier I and Tier II cities. PML’s flagship project, High Street Phoenix, in Lower Parel, Mumbai was the first retail centre developed by the Phoenix Group in India. Developed on 1.5 million sq ft of space, the complex houses retail, entertainment, commercial and residential complexes and is being steadily expanded in phases. K2’s Commitment €3.73 million (fully disbursed) K2’s Equity Stake 0.44% Current Status The Government approved a proposal to allow up to 51% foreign direct investment (FDI) in multi- brand retail. Phoenix Mills, a pure play on retail real estate, is expected to benefit from this policy in long

• run. Post announcement, the share price moved

from INR 175 per share to high of INR 209 per share during September month Stock Performance Closing stock price of The Phoenix Mills Limited as at September 30, 2012 was INR 196 per share (adjusted for stock split). This represents a 39% mark-to-market loss on our original investment as compared to 45% mark to market loss as seen at the end of June 2012 Stock Performance

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