THROUGH INTEGRATION COIMA REAL ESTATE FORUM VII EDITION Milan - PowerPoint PPT Presentation

CREATING VALUE THROUGH INTEGRATION COIMA REAL ESTATE FORUM VII EDITION Milan October 25 th , 2018 REAL ESTATE SIIQ

PRESENTING TEAM KELLY RUSSELL Marketing, Communication & Corporate Social Responsibility ALBERTO GORETTI STEFANO CORBELLA Investor Relations Sustainability Officer VINCENZO TORTIS VINCENZO DONNOLA Information & Property Management Digital Transformation CLAUDIO SAIBENE EDOARDO SCHIEPPATI Procurement & Conceptual Investment Management Construction Management FRANCO GERBINO FABRIZIO BIGIONI Development Management Fund & Asset Management 2 COIMA REAL ESTATE FORUM

A BRIEF HISTORY OF THE COIMA PLATFORM OVER 40 YEARS IN ITALIAN REAL ESTATE Genesis Development Consolidation Growth Built a €700m+ COIMA RES Milan office IPO focused portfolio Consolidation of > €1bn in Final closing Partnership COIMA platform acquisitions COF II COIMA / Hines (value-add and development Porta Nuova First JVs with fund) development Founded by the international Catella Family investors 1974 1990 1999-2015 2015 2016 2018 3 COIMA REAL ESTATE FORUM

COIMA - A VERTICALLY INTEGRATED PLATFORM INVESTMENT AND ASSET MANAGEMENT ~ €5 BILLION ASSET UNDER MANAGEMENT OVER 40 YEARS TRACK RECORD REIT LISTED ON 31 LEED CERTIFIED BORSA ITALIANA BUILDINGS DEVELOPMENT AND 1.6 MILLION SQM PROPERTY MANAGEMENT DEVELOPED OVER 150 PROFESSIONALS > 70 ARCHITECTS AND GENERAL CONTRACTORS MANAGED 4 COIMA REAL ESTATE FORUM

COIMA BUSINESS MODEL ACQUISITION DEVELOPMENT MANAGEMENT EXIT / HOLD INVESTMENT MGMT DEVELOPMENT MGMT ASSET & PROPERTY MGMT ASSET MGMT Feasibility study Leasing Disposal / Portfolio Deal origination management Preliminary & Development Portfolio management Design Financial due diligence Entitlement process Activities managed by Construction management Property & facility COIMA SGR management Technical due diligence Testing & commissioning COIMA SRL Integrated Operating Model: Sustainability, Innovation, Technology, Performance and Risk Management 5 COIMA REAL ESTATE FORUM

COIMA - IN HOUSE EXPERTISE ON ESG & INNOVATION Board of Directors Board of Directors Board of Directors Sustainability Think Tank Digital Transformation Team Sustainable Innovation Committee Conceptual Construction Team Environmental Social Governance Project Coordinator Project Coordinator Project Coordinator 6 COIMA REAL ESTATE FORUM

COIMA - SUSTAINABILITY STRATEGY SUSTAINABILITY NEXT GENERATION PRODUCTS SMART CONSTRUCTION CSR POLICIES SUSTAINABILITY OBJECTIVES DEVELOP SUSTAINABLE & CONSTRUCTION TECHNIQUES AND INNOVATIVE “NEXT GENERATION” MATERIALS ENVIRONMENTAL CERTIFICATIONS PRODUCTS DATABASE OF SUPPLIERS AND GRESB CLASSIFICATION ATTENTION TO BUILDINGS TENANT NEEDS (FOR BENCHMARKING) LONG-TERM SUSTAINABILITY PERFORMANCE STRATEGY 7 COIMA REAL ESTATE FORUM

COIMA - DIGITAL STRATEGY COIMA HAS EMBARKED ON A DIGITAL TRANSFORMATION JOURNEY (1) Data (2) ERP (3) CRM EMBRACE BIG Warehouse DATA ANALYTICS INTERNAL DIGITAL AND ARTIFICIAL TRANSFORMATION INTELLIGENCE (4) Business (5) eDocument Planning Workflow MAXIMISE EFFICIENCY IN MANAGING PROPERTIES COIMA (1) Smart (2) Smart (3) Smart DIGITAL Buildings Retail Public Spaces INCREASE PLATFORM SUSTAINABILITY & WELLBEING BUSINESS INNOVATION PERFORMANCE & NEXT GENERATION (4) Co-Working (5) Co-Living REAL ESTATE PRODUCTS 8 COIMA REAL ESTATE FORUM

BONNET (CORSO COMO PLACE) 9 COIMA REAL ESTATE FORUM

CORSO COMO PLACE VIDEO 10 COIMA REAL ESTATE FORUM

COIMA SGR - INVESTMENT MANAGEMENT DUE DILIGENCE AND ORIGINATION NEGOTIATIONS AND CLOSING INVESTMENT ANALYSIS DEFINITION OF INVESTMENT STRATEGY MARKET SCOUTING ARRANGING OF FINANCING DUE DILIGENCE DEAL ORIGINATION STRUCTURING AND CONTRACT UNDERWRITING BUSINESS PLAN NEGOTIATION 11 COIMA REAL ESTATE FORUM

COIMA SGR - INVESTMENT MANAGEMENT BONNET (CORSO COMO PLACE)  ACQUISITION "OFF-MARKET" – 2 WEEKS EXCLUSIVITY – ACQUISITION PRICE OF €89 MILLION  DEFINITION OF INVESTMENT STRATEGY – FULL RETROFITTING – CUTTING EDGE TECHNOLOGY – MAXIMISATION OF COMMERCIAL AREAS – INTEGRATION WITH URBAN FABRIC  ARRANGEMENT OF €56 MILLION FINANCING 12 COIMA REAL ESTATE FORUM

COIMA SGR - ASSET MANAGEMENT POST ACQUISITION CLOSING DEVELOPMENT AND LEASING AND PROPERTY ACTIVITIES MANAGEMENT MANAGMENT OPERATING COSTS CONTROL AND OPTIMIZATION MARKETING OF THE PROPERTY APPOINTMENT OF ARCHITECT, BUSINESS PLANS REFINEMENT DESIGN TEAM & GENERAL PROACTIVE LEASING ACTIVITY (UNDERWRITING AND UPSIDE CONTRACTOR CASES) TENANT(S) MANAGEMENT ARRANGEMENT OF CAPEX ENGAGE WITH FINANCING & REFINANCING COORDINATION OF EXISTING TENANTS ACTIVITIES PROPERTY MANAGMENT MONITORING OF FINANCIAL PERFORMANCE 13 COIMA REAL ESTATE FORUM

COIMA SGR - ASSET MANAGEMENT BONNET (CORSO COMO PLACE)  URBAN REGENERATION – EXTENSION OF CORSO COMO AND PORTA NUOVA – ~ €1 MILLION INVESTED IN PUBLIC SPACES UPGRADE  HIGH SPECS BUILDING – ADVANCED IoT – FIRST «WELL CERTIFIED» OFFICE IN MILAN  PROACTIVE LEASING – TAILOR MADE SPACE PLANNING SOLUTIONS 14 COIMA REAL ESTATE FORUM

COIMA SRL - DEVELOPMENT MANAGEMENT DEVELOPMENT ADDITIONAL PRE-DEVELOPMENT PHASE PHASE EXPERTISE TECHNICAL DUE DILIGENCE PROJECT TEAM ORGANIZATION CONSTRUCTION MANAGEMENT SUSTAINABILITY CONSULTING STRATEGY AND ACTION PLAN ADMINISTRATIVE MANAGEMENT FIT-OUT MANAGEMENT SET-UP PLANNING, COST CONTROL AND MARKETING & PR DEVELOPMENT BRIEF RISK MANAGEMENT TECHNICAL ASSISTANCE FOR ENTITLEMENT MANAGEMENT HANDING OVER AND LEASING AND SALES COMMISSIONING DESIGN MANAGEMENT AND TENDERING 15 COIMA REAL ESTATE FORUM

COIMA SRL - DEVELOPMENT MANAGEMENT BONNET (CORSO COMO PLACE)  FAST PROCESS – 12-18 MONTHS PRE-DEVELOPMENT / ENTITLEMENT  EXTRACTED ADDITIONAL SURFACES – +19% GAIN IN COMMERCIAL AREA  LEED CERTIFICATION "PREMIUM" – ~ 7-11% PREMIUM ON PROPERTY VALUE – > 3x SPEED IN LEASING VS NON LEED  FLEXIBILITY IN END USE FOR NEW BUILDING – MAXIMUM FLEXIBILITY IN LEASING STRATEGY 16 COIMA REAL ESTATE FORUM

COIMA SRL - DEVELOPMENT MANAGEMENT BONNET (CORSO COMO PLACE): HOW WE ACHIEVED A 19% INCREASE IN COMMERCIAL AREA COMMERCIAL AREA AT UNDERWRITING CURRENT COMMERCIAL AREA Increase in commercial areas by +19% 20 floors of 530 18 floors of 583 • Existing building sqm SLP sqm SLP rights (2 extra floors) • Energy bonus and SLP SLP walls deduction Amenities Amenities • Creation of upper floor terraces • Efficient underground layout 17 COIMA REAL ESTATE FORUM

COIMA SRL - DEVELOPMENT MANAGEMENT BONNET (CORSO COMO PLACE) SUSTAINABLE DEVELOPMENT: LEED CERTIFIED ASSETS ARE 3x QUICKER TO LEASE AND COMMAND A PREMIUM VALUATION OF +7-11% REDUCTION IN ENERGY AND NATURAL RESOURCES CONSUMPTION 80% 65% 65% >1,000 m 2 Non potable water Renewable Potable water Integrated reduction energy reduction PV 5,900 m 2 of public area 200 lockers, 2,500 m 2 Lifecyle material 50 indoor bicycle racks, renovated urban landscape selection 8 showers 18 COIMA REAL ESTATE FORUM

COIMA SRL - DEVELOPMENT MANAGEMENT BONNET (CORSO COMO PLACE) SUSTAINABLE DEVELOPMENT: TECHNOLOGY ENABLING “NEXT GENERATION” PROPERTY MANAGEMENT Integrated Internet of Things platform CO 2 Humidity PIR Automatic Cloud based Temperature reporting Level solution > 5,000 DALI 157 billion Sound Ambient Bluetooth drivers Monitoring datapoints monitored pressure light sensors per year 19 COIMA REAL ESTATE FORUM

COIMA SRL - PROCUREMENT & CONCEPTUAL CONSTRUCTION CONCEPTUAL ARCHITECTS AND GENERAL SMART CONSTRUCTION CONSTRUCTION DESIGN TEAMS CONTRACTOR LAB SCREENING & PREQUALIFICATION BIM PROJECT’S REPORT SCREENING & DIGITALISATION SIGN OFF ON DUE PREQUALIFICATION REFERENCE & TRACK DILIGENCE PLAN REPORT OFF SITE CONSTRUCTION RECORD MATRIX SUPPORT ON DESIGN REFERENCE & TRACK INDUSTRIALIZATION OF TECHNICAL, ECONOMIC RECORD MATRIX PROJETS EVALUATION AND SUPPORT ON ACCOUNTABILITY MATRIX CONSTRUCTION TECHNICAL & ECONOMIC I.o.T. SENSORS – SMART EVALUATION MATRIX BUILDINGS SITE INSPECTION OF BIDDERS & MAIN HEALTH & SAFETY SUBCONTRACTORS 20 COIMA REAL ESTATE FORUM

COIMA SRL - PROCUREMENT BONNET (CORSO COMO PLACE)  EXTENSIVE SCREENING AND BENCHMARKING – > 50 CONSULTANTS PREQUALIFIED – > 10 TENDERS TO CREATE THE DESIGN TEAM – > 300 HOURS ON GENERAL CONTRACTOR TENDER  MATERIAL SAVINGS GENERATED – ~ 5% SAVING ON CONSULTANTS – ~ 6% SAVING ON GENERAL CONTRACTOR 21 COIMA REAL ESTATE FORUM

COIMA SRL - PROPERTY MANAGEMENT DUE DILIGENCE PROPERTY & FACILITY ACQUISITION PHASE DESIGN PHASE PHASE MANAGEMENT BEST MANAGEMENT AND MAINTENANCE FUNCTIONALITY TESTS PRACTICES EVALUATION OF ON BUILDING SYSTEMS RECOMMENDATION OF BUILDING SYSTEMS TECHNICAL SOLUTIONS CONTINUOUS SERVICE USEFUL LIFE FEASIBILITY STUDY FOR IMPROVEMENT REPLACEMENT OF DEFINITION OF SERVICE ANALYSIS OF BUILDING OBSOLETE COMPONENTS SPECIFICATIONS FOR BUILDING SERVICES AND INSTALLATION OF GENERAL CONTRACTORS PERFORMANCE (QUALITY AND COSTS) NEW TECHNICAL ANALYTICS SYSTEMS MONITORING OF TENANTS SATISFACTION 22 COIMA REAL ESTATE FORUM