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US $ 67.2 million Offering to Participate in the Investment in Markaz U.S. Multifamily Fund IV Investor Presentation Investor Presentation

December 2007

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Disclaimer

The information in this document is in draft form and is subject to updating, completion, revision, verification and amendment. Recipients of this document who intend to subscribe for Units following publication of the final document relating to the Fund are reminded that any issue will be made solely on the basis of the information contained in the final document, which may substantially diff f th i f ti t i d i thi d t Thi d t h ll t b t d ff idi l l fi i l differ from the information contained in this document. This document shall not be construed as offer, or as providing legal, financial or tax opinions or guidance. To the extent the information is to be used by a Recipient to make legal, financial or investment determinations, Recipient shall seek advice from its own legal counsel, investment, tax and financial advisors. No representation or warranty, expressed or implied, is given by Kuwait Financial Centre, S.A.K. (“Markaz”), the Fund, the Fund Manager, or its respective directors, officers, representatives and/or employees (the “Parties”) as to the accuracy or completeness of the material, information or opinions contained in this document and the Parties shall have, and accept, no liability for any statements, the material, information or opinions contained in this document and the Parties shall have, and accept, no liability for any statements,

• pinions, information or matters (expressed or implied) arising out of, contained in or derived from this document or any omissions

from this document, or any other written or oral communication transmitted or made available to any other party in relation to the subject matter of this document. Where indicated, portions of this document contain conclusions and projections based on Markaz research and intelligence. Markaz’s views and conclusions are the results of the exercise of its best professional judgment, based in part upon materials and information gathered by Markaz (Kuwait Financial Centre S.A.K.) and others. Use of this report or the content extracted there from by any other party for whatever purpose is at such party’s own risk and shall not, and does not, absolve such other party from using due diligence in verifying the report’s content or any of the information extracted there from. Any forward-looking statements in this Presentation such as “will”, “may”, “expect”, “project” and any other words of similar effect whatsoever are the results of the exercise of personal professional judgments. There is no guarantee that such statements would be materialized or ever occur and the Fund Manager Markaz (Kuwait Financial Centre S A K )

• r its respective directors
• fficers

materialized or ever occur and the Fund Manager, Markaz (Kuwait Financial Centre, S.A.K.), or its respective directors, officers, representatives and/or employees accept no liability whatsoever as a result of such forward-looking statement. Therefore, Recipients should not rely on such forward looking statements. This document and its contents are confidential and should not be distributed, published or reproduced in whole or in part or disclosed to any other person, party and/or entity without the written consent of Kuwait Financial Centre S.A.K. (“Markaz”). 2

The Fund

US$ 67.2 Million Offering in

M k U S M ltif il F d IV Markaz U.S. Multifamily Fund IV

Investment Period of 5 years, extendable by 4 additional one-year periods S b Minimum Subscription: 10 units Class A Units Class B Units Price per Unit US$ 13,200 per Unit US$ 11,200 per Unit I t t U it M Price per Unit US$ 13,200 per Unit US$ 11,200 per Unit Annual Cash Yield (paid semi-annually) 7.0% 0.0% Expected IRR 13.0% 14.0% Investment Unit Manager: Kuwait Financial Centre S.A.K. (Markaz) General Partner: BCRE Fund IV GP, LLC (an affiliate of Boston Capital)

3

(an affiliate of Boston Capital)

OUTLINE OUTLINE Investment Highlights Investment Overview Portfolio Overview Management Management Summary A di Appendices

4

Investment Highlights

Investment Highlights

The Offering: Markaz U.S. Multifamily Fund IV (the “Fund”) seeks to raise US$ 67.2 million to selectively invest in the development of apartment properties in the US. The investments will be made in a manner consistent with the principles of Islamic Shari’ah. The Objective: The Fund's objective is to develop, lease-up and deliver for sale multifamily properties to capitalize on the market risk premium assigned to new construction investments relative to those in l d d completed, occupied assets. The Portfolio: The Fund will invest in approximately 4 to 8 individual projects:

• The Fund has already invested in two transactions:
• 344 unit Class A development in Seattle, MSA;
• 240 unit Class A development in Phoenix, MSA;
• Currently conducting due diligence on a 212 Class A development in Denver, MSA.

Return Expectations: Target net IRRs to End Investors:

• Class A Units

: 13.0% +

• Class B Units

: 14.0% + Management Fee and Carried Interest:

• Placement Fee

: 2% of amount invested in projects

• Management Fee

: 10% mark-up over amount invested in projects

6

g p p j

• Carried Interest

: 20% over an IRR of 10%

Investment Overview

Investment Overview The Opportunity The Opportunity

Real Estate Fundamentals Capital Market Environment

Real estate fundamentals support the multi-family sector: The sector is poised for substantial NOI growth. Capital markets support the development and subsequent sale of apartment properties: Yield arbitrage between low cap rates (high market prices) and high build rates (lower development costs).

Multifamily

Industrial Office Retail

Development Projects

Existing Product

Largest beneficiary

• f changes in the

economy and demographics Capital Markets have driven valuations higher: it is substantially cheaper to develop apartment properties than to acquire existing product

• Exorbitant House Prices;
• Mortgage Crisis;
• Capital Inflows into

Multifamily Properties;

• Shift in Demographics;
• Employment Growth.
• Significant Cap Rate

Compression.

8

Investment Overview The Opportunity: Real Estate Fundamentals

Balance tilting towards renting due to affordability and sub- prime woes…

The Opportunity: Real Estate Fundamentals…

• Choices for households: (a) Purchase homes;
• The on-going sub-prime mortgage crisis and rising

p High House Prices and Mortgage Crisis

• r (b) Rent apartments (multifamily).
• Over the past 6 years, house prices have

risen significantly making it increasingly number of defaults is leading to:

• Tighter lending standards, larger down-

payments and fewer mortgage originations; expensive for households to purchase homes;

• Result: a greater number of households are

forced to rent apartments.

• Declining housing sales volumes; and
• Expectations of declines in house prices,

deterring would-be buyers.

using: Rent rtments

1 000 1,100 1,200 1,300

2006 US$)

Owner vs. Renter Costs Owner vs. Renter Volume

e Demand for Hou ship + Rental] R Apa

• using

600 700 800 900 1,000

Renter Costs (2 Total Sustainable [Owners Purchase of H

400 500 600 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Owner and

9

Before Crisis After Crisis

Owner Costs Renter Costs

Sources: The State of Nation’s Housing (JCHS, 2007), Markaz Analysis and Illustrations

Investment Overview The Opportunity: Real Estate Fundamentals

… Rental pool also expands due to demographics, immigration and employment…

• 20 – 29 age group displays low home

The Opportunity: Real Estate Fundamentals…

Demographics, Immigration and Employment

• Immigration is expected to further increase

p y

• wnership rates (33% or half of national

average) and high propensity to rent. This age group is expected to increase by 5.5 ll h h h the potential target market by 12 million.

• Non-farm employment has increased by 8.4

million people since May 2003; translating million over the next 10 years as the echo boomers come of age.

Apartment Intense Age Group (20 – 29)

into significant growth in potential renter population.

Non-Farm Employment

140

45

125 130 135 140 nt (millions)

41 42 43 44 45

Group, Millions

110 115 120 125 m Employmen

37 38 39 40

n in 20 - 29 Age G

105 110 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Non-Farm

34 35 36 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Population

10

Sources: Economy.com, US Census Bureau, Marcus & Millichap

Investment Overview The Opportunity: Real Estate Fundamentals

… Resulting in sustained rent growth and occupancy gains.

• Nationwide apartment vacancy rates have

The Opportunity: Real Estate Fundamentals…

Results: Declining Vacancy Rates and Solid Rent Growth declined and rents have risen:

• Vacancy Rates have declined from

approximately 7% in 2003 to 5.9% in

5.0% 6.0% 7.0% 8.0%

Multifamily Rent Growth and Vacancy Rates: Historic and Outlook

2006;

• Effective rents have grown at an annual

rate of 3.2% since 2003.

3.0% 4.0% 5.0% Growth (%) 5.0% 6.0% 7.0% tes (%)

• Based on the strengthening fundamentals of

the apartment market, Reis Inc. estimates that the multifamily sector will be one of the best performing real estate classes over the

0.0% 1.0% 2.0% Effective Rent G 2.0% 3.0% 4.0% Vacancy Rat

best performing real estate classes over the next five years:

• Vacancy rates are expected to decline

from their current levels; and

• 2.0%
• 1.0%

0.0% 2002 2003 2004 2005 2006 2007E 2008E 2009E 2010E 0.0% 1.0% 2.0% Rent growth Vacancy Rates

from their current levels; and

• Effective rents are expected to grow at

an annual rate of 3.4%.

Rent growth Vacancy Rates 11

Sources: Reis, Inc.

Investment Overview The Opportunity: Capital Market Environment

… Yield arbitrage.

The Opportunity: Capital Market Environment…

Strong investor activity and competitive bidding for apartment properties: Capital markets have driven valuations higher. It is now substantially cheaper to develop apartment

• In 2006, total sales volume in the apartment

segment exceeded US$ 88 billion, having grown at an annual rate of 34% since 2001. properties than to acquire stabilized product. Arbitrage Opportunity: potential arbitrage profits can be earned by developing apartment properties l l h l ( h h b ld ) d

• Total number of properties sold increased

three-fold over the same time period. As a result, cap rates have declined by almost 300 b h 6% b S b 2007 relatively cheaply (at high build rates) and subsequently selling them at higher market prices (at low cap rates). bps to reach 6% by September 2007.

Cap Rate Compression Build Rates = NOI = 7.0% - 8.0% Project Cost Average Spread 125 – 175 bps

9% 10%

p

A d f 125 t 175 b b t b ild t d

Cap Rates = NOI = 5.5% - 6.5% Market Price

7% 8% 9% e Cap Rates

A spread of 125 to 175 bps between build rates and cap rates offers opportunities to generate pre-tax project-level IRRs of between 20% and 22%.

5% 6% Average

12

Source: Real Capital Analytics, Markaz Survey 4% 2001 2002 2003 2004 2005 2006 2007

Investment Overview Investment Objectives and Investment Guidelines Investment Objectives and Investment Guidelines

Investment Objective The Fund’s objective is to capitalize on the market risk premium assigned to new construction investments versus those in completed, occupied assets. The Fund will attempt to capture the yield arbitrage between the return on cost or “build rate” of new construction and the market capitalization rate that buyers will pay for existing product. Investment Guidelines

• Gross development property cost will be in the range of US$20 - US$100 million.
• Properties will contain between 100 and 500 units.
• Properties will be new construction development opportunities.
• Investments will be structured as joint ventures with developer partners that will manage the

development of the properties.

• Properties will include garden-style and mid-rise construction, and may include high-rise.
• Properties will be built in suburban locations near major cities or in urban or infill locations.
• Leverage at the property level will not exceed 80%.
• The Fund will not invest more than 20% of the Fund’s Capital in any single transaction.

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Investment Overview Investment Process Investment Process

Investment S l ti Boston Capital will identify investment opportunities. In doing so, Boston Capital will Selection Investment Approval The Fund Manager will analyze investment opportunities and preliminarily approve projects that meet the Fund’s Investment objectives leverage its relationships with developers, brokers and other market participants. Approval Due Diligence Boston Capital and the Fund Manager will conduct thorough due diligence on the

• Project. Due diligence will focus on financial, environmental, legal, technical and

projects that meet the Fund s Investment objectives. Transaction Structuring The Fund Manager and Boston Capital will structure the transaction with the Developer to ensure that the Fund’s interests are protected. market parameters. Monitoring The Fund Manager and Boston Capital will monitor the performance of the Developer and the progress of the Project to minimize likelihood of deviation from stated

• bjecti es

Disposal The Fund will sell the Project upon successful completion and lease-up or at an earlier date if necessitated by market conditions.

• bjectives.

14

Portfolio Overview

Portfolio Overview

The Fund is expected to be approximately 50% invested in high quality transactions at closing. Two Seed Transactions: The Fund has already invested US$ 22.2 million (37% of its anticipated investment amount) in two seed transactions involving the construction of 584 units:

• Beaumont Apartments

: 344 units in Woodinville, Washington (Seattle, MSA);

• Alta Ravenwood

: 240 units in Tempe, Arizona (Phoenix, MSA). Third Project: Late Stage Due Diligence: The Fund is expected to close on its third transaction by the end of December 2007;

• The project will involve the construction of 212 units in Denver, Colorado;
• The project is expected to be financed with US$ 7.2 million in equity (12% of the Fund’s investment

amount);

• Current status: late stage due diligence.

The Pipeline: The Fund benefits from a healthy deal pipeline:

• The Investment Unit Manager has reviewed 6 other potential development opportunities involving the

construction of a total of 1,987 units with required equity investment of US$ 72.6 million;

• Some of these opportunities may become future investments by the Funds.

16

Portfolio Overview Seed Transaction: Beaumont Apartments Seed Transaction: Beaumont Apartments

High Barrier Market with Sound Fundamentals

17

Source: Google Earth

Portfolio Overview Seed Transaction: Beaumont Apartments Seed Transaction: Beaumont Apartments

The Project:

• A 344-unit Class A apartment development

Summary Statistics:

• Build Rate

: 7.58% located in Woodinville, Washington, 14 miles northeast of downtown Seattle.

• The Project will involve the construction of 3
• Current Market Cap Rate : 5.50%
• Expected Sale Cap Rate : 6.00%
• Expected Spread

: 1.58% four-storey, wood-framed buildings with attractively designed exterior finishes.

• Beaumont Apartments is located within 3 miles

f 4 illi f f il Expected Spread : 1.58%

• Expected Project IRR

: 21.06%

• Project Duration

: 3 years

• Transaction Closed

: Dec 2006

• f over 4 million sqft of retail space.
• Key employers in Project's proximity include:

Boeing, Microsoft and University of Washington. D l F i fi ld R id ti l f th l t

• Transaction Closed

: Dec 2006 Project Costs: Land Acquisition Costs US$ 6.4 mn Developer: Fairfield Residential – one of the largest and most prominent multifamily developers in the US. Seattle: experiencing strong economic conditions*: P l ti i th i i j t d t t Construction Costs US$ 57.9 mn Soft / Development Costs US$ 15.2 mn Total Development Costs US$ 79.5 mn

• Population in the region is projected to grow at

an additional 40,000 to 50,000 p.a.

• The area is projected to add 20,000 to 40,000

new jobs annually through 2010 Seed Equity US$ 10.0 mn JV Partner Equity US$ 10.0 mn Total Equity US$ 20.0 mn

18

new jobs annually through 2010.

Source: REIS, Inc

q y $

Portfolio Overview Seed Transaction: Alta Ravenwood Seed Transaction: Alta Ravenwood

Very High Growth Market

19

Source: Google Earth

Portfolio Overview Seed Transaction: Alta Ravenwood Seed Transaction: Alta Ravenwood

The Project:

• A 240-unit Class A apartment development

Summary Statistics:

• Build Rate

: 7.36% located in Tempe, Arizona, 10 miles northwest of downtown Phoenix.

• The Project will involve the construction of 48
• Current Market Cap Rate : 5.30%
• Expected Sale Cap Rate : 5.70%
• Expected Spread

: 1.66% two-storey, wood-framed buildings with attractively designed exterior finishes.

• Alta Ravenwood is located in close proximity to

il d ffi Expected Spread : 1.66%

• Expected Project IRR

: 20.76%

• Project Duration

: 3 years

• Transaction Closed

: Aug 2007 retail and office space.

• Key employers in proximity include: Arizona State

University, Motorola, Honeywell and JP Morgan. D l W d P t f th i

• Transaction Closed

: Aug 2007 Project Costs: Land Acquisition Costs US$ 9.6 mn Developer: Wood Partners – one of the premier development organizations in the country. Phoenix: experiencing rapid growth. In 2006*: Ph i l d th ti i l t th Construction Costs US$ 34.0 mn Soft / Development Costs US$ 5.5 mn Total Development Costs US$ 49.2 mn

• Phoenix led the nation in employment growth

with over 106,000 new jobs;

• Phoenix ranked second in the nation in

population growth with an increase of 105 000 Seed Equity US$ 11.9 mn Developer Equity US$ 0.6 mn Total Equity US$ 12.5 mn

20

population growth with an increase of 105,000.

* Source: REIS, Inc

q y $

Portfolio Overview Strong Pipeline Strong Pipeline

The Fund is currently examining numerous development opportunities which may turn into potential investments by the Fund:

• Denver, Colorado

[Currently under due diligence]

• 212 unit Class A development located in Denver
• Expected spread between build rates and cap rates: 167 bps
• Raleigh, North Carolina
• 350 unit Class A development located in Raleigh
• Expected spread between build rates and cap rates: 153 bps

pected sp ead bet ee bu d ates a d cap ates 53 bps

• Riverside, California
• 184 unit Class A development located in Riverside
• Expected spread between build rates and cap rates: 160 bps

Expected spread between build rates and cap rates: 160 bps

• Salt Lake City, Utah
• 319 unit Class A development located in downtown Salt Lake City
• Expected spread between build rates and cap rates: 171 bps
• Expected spread between build rates and cap rates: 171 bps
• Thornton, Colorado
• 384 unit Class A development located 10 miles north of Denver

E t d d b t b ild t d t 168 b

21

• Expected spread between build rates and cap rates: 168 bps

Source: Markaz

Management

Management: Markaz Overview

Our experience in the US includes over US$ 725 million in transactions spanning developments and acquisitions across all

Overview

Markaz has been active in the US real estate market since 1978; Since 1988, we have been operating through our fully owned subsidiary and asset management arm in the p q asset classes… US, Mar-Gulf Management, Inc., located in Los Angeles, California. Over the years, we have developed or acquired over 65 properties for a total development / acquisition cost

• f US$ 725 million;

We have executed transactions across all major asset classes: Retail, Office, Multifamily and Industrial; We currently manage approximately US$ 535 million in real estate assets; We currently manage two Funds in the US:

• Markaz U.S. Industrial Realty Investment Unit I (2002): consisting of 12 distribution warehouses,

located in 7 states;

• Markaz U.S. Retail Realty Investment Unit III (2004): consisting of 13 retail centres in 5 states;

We successfully liquidated Markaz U.S. Retail Realty Investment Unit II in 2007 at a significant profit for our investors (net IRR of approx. 20%); Our success stems from the lasting relationships we build with our professional partners such as our real estate brokers, investment banks, property developers, REITS, and lending institutions; they provide us with a unique and proprietary flow of investment opportunities, and help us finance and structure our transactions optimally.

23

Management: Markaz Location

… We have been consistent in our investment philosophy: focusing not only on location…

Location

Markaz has executed real estate transactions across 17 states: Locations of Projects

Arizona California New York Ohio Florida G i Oregon S th C li Georgia Illinois South Carolina Tennessee Indiana Kentucky Texas Virginia Kentucky Mississippi Virginia Washington

24

Nevada

Management: Markaz Market Timing

… but also on timing the market…

Market Timing

Our strategy is focused on timing the market:

• We develop when the

Focused on development &

• pportunistic

Focused on acquisitions and disposals of stabilized Focus is on disposals and development

p spreads between cap rates and 10-year treasury rates are low; Timing the Market

6% asury

• pportunistic

acquisitions when spreads were low disposals of stabilized products in an

• scillating market

development as spreads decline

• We buy stabilized

products when the spreads are high; and W ll h h d

4% 5% 10-year Trea

Focused on acquisition

• f

t bili d

• We sell when the spreads

decline. But when we see attractive investments we act

2% 3% ap rates and

stabilized products when spreads were high

investments, we act

• pportunistically.

0% 1% between ca

• 1%

0% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Spread

25

Management: Markaz Sector Selection

… and on carefully selecting sectors…

Sector Selection

Our strategy is focused on carefully selecting sectors:

• We identify sectors based on the prevailing real estate fundamentals and capital market conditions;
• In the past, we’ve been able to identify in advance and invest in sectors that have delivered strong

returns;

• Once we’ve selected the sectors, we partner with leading players in those sectors to leverage their

abilities, experience and networks. Sector Selection: NCREIF Returns (annualized) and our Investment Focus for the Period Multifamily Industrial Office Retail Sector Focus NCREIF Rank 1984 - 1986 10.6% 11.4% 9.0% 14.6% Multifamily 3 1987 - 1990 8.0% 7.6% 3.2% 11.4% Retail 1 1993 - 1997 11.4% 9.6% 7.4% 5.6% Industrial 2 1998 - 2000 12.9% 13.8% 15.3% 10.1% Office 1

d f f h d

2002 - 2006 13.2% 12.7% 11.6% 17.4% Retail, Industrial 1,3 2007 - 2011 ? ? ? ? Multifamily 1

26

denotes: our investment focus for the period

Sources: Past performance is not indicative of future performance.

Management: Markaz Returns

… which has translated into consistent returns and preservation of capital…

Returns

Throughout our history, we have consistently delivered high returns across real estate sectors: Returns delivered on sample transactions Project Name Type Location Cost Initiated Ended IRR 1 Corbanc Condominiums Condominiums Oregon 4,300,000 1988 1996 10.2% 2 W t t 15 & 16 I d t i l T 3 100 000 1994 1999 18 5% Returns delivered on sample transactions 2 Westport 15 & 16 Industrial Texas 3,100,000 1994 1999 18.5% 3 Lake Fairfax 4 & 8 Office Virginia 1,400,000 1995 1996 26.3% 4 Plano Land Land Texas 750,000 1995 1998 11.7% 5 ISOP Office California 3,825,000 1996 2006 19.3% 6 Highland Business Centre Industrial Texas 4,400,000 1996 1997 139.9% 7 Parkway Business Centre Industrial California 600,000 1997 2000 25.5% 8 Scrripps Poway Business Park Industrial California 5,200,000 1997 2000 38.7% 9 Pacifica Court Office California 18,000,000 1999 2006 21.7% 10 US Fund I Portfolio Industrial Nationwide 150,000,000 2002 N/A N/A , , / / 11 US Fund II Portfolio Retail Nationwide 170,000,000 2003 N/A 20.0% 12 US Fund III Portfolio Retail Nationwide 208,000,000 2004 N/A N/A

27

Sources: Past performance is not indicative of future performance.

Management: Markaz Middle East

… And we can leverage our capabilities developed in the Middle East…

Middle East

Markaz started its real estate activity in Kuwait in 1998 with the launch of Markaz Real Estate Advisory Services:

• The service consisted initially of advising our clients on issues related to real estate development,

evaluation of portfolios, and valuation of real estate projects;

• This successful advisory service was later developed into a full-fledged real estate offering that led to

the establishment of our first real estate fund, the Markaz Real Estate Fund (MAREF), which is the first

• pen-ended real estate fund to be established in Kuwait;
• The objective of the MAREF is to generate stable income and recurring returns, in compliance with the

I l i Sh i ' b i i i f li f l i i hi h f K i d i Islamic Sharia'a, by investing in a portfolio of real estate properties within the state of Kuwait during the life of the Fund;

• MAREF invests in multi-family as well as in industrial and commercial-retail real estate.

W h d l d b t ti l ti i t t i i i fi b th d bt d it d I l i We have developed substantial expertise in restructuring, raising finance: both debt and equity; and Islamic finance for real estate companies. We have established a real estate mortgage finance company in December 2003, Amar Finance & Leasing; W tl i th f l i MENA R l E t t O t iti F d (MREOF) f d We are currently in the process of closing our MENA Real Estate Opportunities Fund (MREOF); a fund focused on real estate development projects in the region.

28

Management: Markaz The Team

… and the experience of our team members.

The Team

Ali H. Khalil – Executive Vice President, Finance, Markaz

• Mr. Khalil has over 20 years of extensive experience in Corporate Finance and related services and transaction

structuring across various legal jurisdictions including the US, Kuwait and Europe: advisory services related to corporate restructuring, conducting business valuations, management consulting including privatization projects; financial feasibility studies; investment analysis, economic research and project management.

• Mr. Khalil joined Markaz group in 1988 and since then has held senior positions until today in its affiliated

companies in the US. In 1997, he moved to Kuwait to join Kuwait Financial Centre (Markaz) as its Executive Vice President – Finance, and currently heads the Corporate Finance Department at Markaz. He is also the President of Gulf Pacific America an investment fund focused on the US real estate President of Gulf Pacific America, an investment fund focused on the US real estate. MBA from INSEAD, France M.S in Industrial Engineering from University of Texas A&M (US) B S i I d t i l E i i f U i it f T A&M (US) B.S in Industrial Engineering from University of Texas A&M (US)

29

Management: Markaz The Team The Team

Sami Shabshab – President, MarGulf Management

• Mr. Sami Shabshab has been active in the real estate and construction field for 20 years. His experience

ranges from structural engineering, general contracting and construction management, to real estate portfolio acquisitions and dispositions. On the construction side, he was involved in numerous renovation and rehabilitation projects as well as new project construction. On the real estate side, his real estate consulting f Sh b bl h d 98 l d d h k l d h f l firm, Shabcon, established in 1987, also provided services such as market analysis and research for real estate appraisers and investors. Mr. Shabshab joined Mar-Gulf Management in 1993 and now acts as President. In his 12 years at Mar-Gulf he was initially responsible for operations, with special focus on turnaround situations and under-performing assets he later spearheaded the real estate portfolio acquisition activity which has and under performing assets, he later spearheaded the real estate portfolio acquisition activity which has acquired over US$600 million of industrial and retail properties across the U.S. Mr. Shabshab graduated from the American University of Beirut in 1984, where he majored in civil and structural engineering. In addition to his general contracting license and designation as a professional engineer (PE), Mr. Shabshab also holds a California real estate broker license.

• B. Eng. in Civil and Structural Engineering from American University of Beirut (Lebanon)

30

Management: Markaz The Team The Team

Bassam N Al-Othman – Senior Vice President, Real Estate, Markaz

• Mr. Al-Othman has joined Markaz in January 2005. He has over 20 years of experience in managing and

executing government grants and loans for various infrastructure projects in the Middle East, Africa and Asia on behalf of Kuwait Fund for Arab Economic Development (KFAED). Mr. Al-Othman’s main positions at KFAED were: Engineering Advisor (1988-2004), Resident Representative in Lebanon (1994-2002) and Resident ( 992 996) l d l l d f Representative in Egypt (1992-1996). His expertise includes evaluation, appraisals, and execution of infrastructure projects in electrical power, telecommunication, industrial, healthcare and education sectors. Since joining Markaz he has lead the MENA real estate team in managing “Markaz Real Estate Fund” and in the planning structuring and incorporation of the upcoming “MENA Real Estate Opportunities Fund” planning, structuring and incorporation of the upcoming MENA Real Estate Opportunities Fund . MBA from the American University of Beirut (Lebanon) B.S. in Electrical Engineering from North Carolina A&T State University (USA)

31

Management: Markaz The Team The Team

Ani Soghomonian – Treasurer, MarGulf Management

• Ms. Ani Soghomonian is the Treasurer of Mar-Gulf Management and responsible for all financial reporting. She

is in charge of corporate affairs, preparing financial statements, tax planning and compliance, investor relations and reporting, financial reporting of projects, review and analysis of all financial reports and projections of properties and cash management of portfolio assets. Ms. Soghomonian has been working with Mar-Gulf since 98 Sh h b h l ’ d b d d C f d bl l d b

• 1984. She has a bachelor’s degree in business administration and is a Certified Public Accountant licensed by

the California Board of Accountancy. B.S. in Business Administration from Haigazian University (Egypt) C ifi d P bli A b h C lif i B d f A Certified Public Accountant by the California Board of Accountancy

32

Management: Markaz The Team The Team

Kumar Srinivasan – Vice President, Real Estate, Markaz

• Mr. Srinivasan received his Bachelors degree in Computer Science and his MBA with specialization in Finance

from Poona University, India. After obtaining his MBA in 1994, he worked as an Analyst (Equity Research) for J.M. Share and Stockbrokers Ltd. India and subsequently as Analyst, Corporate Finance with J.M. Morgan Stanley Ltd., India. In November 1999, he joined as a Senior Analyst with Gulf Investment Services in Muscat, S l f O O b 200 h d l C S ( k ) Sultanate of Oman. In October 2001, he joined Kuwait Financial Centre S.A.K. (Markaz) as Assistant Vice President in the Corporate Finance Department and in November 2002 was promoted as Vice President. MBA (Finance) from Poona University (India) B h l f C S i f P U i i (I di ) Bachelor of Computer Science from Poona University (India) Milad Elia – Manager, Real Estate Project Management, Markaz

• Mr. Elia joined Markaz in September 2006. Mr. Elia possesses substantial experience in project management,

cost control and quality management in a variety of industrial and civil engineering projects. Prior to joining Markaz, Mr. Elia was employed with Consolidated Contractors Company for three years, where he worked, initially as a Quality Engineer and later as a Cost Control Engineer Mr Elia has also worked for MID initially, as a Quality Engineer and, later, as a Cost Control Engineer. Mr. Elia has also worked for MID Contracting and AEC in Lebanon in the area of project management. MBA from INSEAD (France) Bachelors in Civil Engineering from University of Saint Joseph (Lebanon)

33

Bachelors in Civil Engineering from University of Saint Joseph (Lebanon)

Management: Markaz The Team The Team

Hadi O. Salame – Assistant Manager, Corporate Finance & Real Estate, Markaz

• Mr. Salame joined Markaz in July 2001. Since joining Markaz, Mr. Salame has been active in executing a variety
• f investment banking transactions and, over the last three years, he has focused primarily on real estate deals.
• Mr. Salame has been involved in the structuring of US Real Estate Investment Units II and III and has

conducted due diligence on the acquisition of numerous properties in the US and in the MENA region. Business Administration from American University of Beirut (Lebanon) Sohail Ladha – Senior Analyst, Corporate Finance & Real Estate, Markaz

• Mr. Ladha joined Markaz in November 2004. Since joining Markaz, Mr. Ladha has been involved in the research

and analysis of several real estate development transactions in the US and the MENA region. He has also participated in the structuring of several investment funds as well as a variety of investment banking and d i i t advisory assignments. MSc Economics from London School of Economics (UK) BSc Economics from London School of Economics (UK)

34

General Partner Boston Capital and BCRE Fund IV GP

Management: Boston Capital and BCRE Fund IV GP Overview Overview

Founded in 1974 by Jack Manning and Herb Collins, Boston Capital offers a comprehensive range of services including tax credit and REIT investments, equity for market rate multifamily housing development, and equity and debt for affordable multifamily housing development. Thirty-three years after its founding, Boston Capital is acknowledged as one of the nation's leading real estate financing and investment firms, with multifamily housing and commercial holdings in 48 states, the f C l b d h S l d District of Columbia, Puerto Rico and the U.S. Virgin Islands. Boston Capital’s holdings include over 2,700 multifamily properties, constituting over 158,000 apartment units with a total development cost of approximately US$ 11.5 billion. B C i l i h f h l /i f i i h d h 11th Boston Capital is the fourth largest owner/investor of apartment properties in the country and the 11th largest owner of real estate property in general. Boston Capital has executed projects and maintains strong relationships with most major multifamily developers nationwide developers nationwide. Boston Capital is also very active in shaping the legislative debate in the areas of housing, taxation and real estate investment. Boston Capital Real Estate Partners is the entity responsible for managing a series of Private Real Estate Boston Capital Real Estate Partners is the entity responsible for managing a series of Private Real Estate Investment Funds and the Boston Capital REIT. Boston Capital boasts a successful track record in executing projects and managing multifamily properties.

36

Management: Boston Capital and BCRE Fund IV GP Track Record Track Record

Investment (Development Deals Only) Gross IRR (1) Gross Multiple (1)

Realized

Villas at Galleria, L.P. Tranche A

21.5% 1.56x 22.5% 1.66x 16.9% 1.47x

Vill t G ll i L P T h B (4)

404 0% 5 01x 404 0% 5 01x 317 4% 4 12x

Hypothetical Net IRR (3) Hypothetical Net Multiple (3) Hypothetical Gross IRR (2) Hypothetical Gross Multiple (2) Villas at Galleria, L.P. Tranche B (4)

404.0% 5.01x 404.0% 5.01x 317.4% 4.12x

Green Mount Lakes Apartments, LLC

21.6% 1.57x 21.9% 1.64x 16.5% 1.45x

Tampa Bridlewood, LLC

29.5% 1.61x 32.1% 1.75x 24.6% 1.54x

Fairfield BCMR Sonoran, LLC

53.3% 1.97x 58.7% 2.24x 46.5% 1.93x

BC - Broadstone Sterling, LLC

29.9% 1.78x 31.9% 2.00x 24.9% 1.73x Weighted Average Realized 40.7% 1.79x 44.9% 1.97x 35.0% 1.72x Unrealized

Westbridge Village, LLC

27.5% 2.00x 29.9% 2.34x 23.7% 1.97x

BC - MLP King's Landing, LLC

19.7% 1.60x 19.0% 1.68x 14.2% 1.48x

BC Pembroke Woods, LLC

25.7% 1.76x 26.3% 1.87x 20.3% 1.62x

BCMR Waterstone Apartments, LP

31.4% 1.65x 34.8% 1.82x 26.9% 1.60x

Courtney Reserve Apartments, LLC

26.3% 1.77x 27.4% 1.92x 21.2% 1.66x

Alta Peoria, LLC

27.6% 1.78x 29.2% 1.97x 23.0% 1.71x

BC Metropointe, LLC

29.7% 1.67x 30.9% 1.86x 23.9% 1.63x

BC Eastland Center, LLC

21.7% 1.61x 22.3% 1.73x 16.9% 1.52x

Fairfield-BCMR Centerview, LLC

24.8% 1.66x 24.6% 1.83x 18.9% 1.60x

, BC Sterling Ridge, LLC

24.8% 1.62x 24.8% 1.75x 18.8% 1.53x

FF Beaumont, LLC

23.0% 1.67x 22.9% 1.76x 17.4% 1.54x

BCMR Town Center Apartments, LP

21.6% 1.62x 23.2% 1.77x 17.7% 1.55x Weighted Average Unrealized 25.2% 1.71x 26.0% 1.86x 20.1% 1.62x

Weighted Average Portfolio Basis

29.0% 1.73x 30.5% 1.89x 23.6% 1.64x

N t d A ti Notes and Assumptions: (1) "Gross IRR" and "Gross Multiple" Investments include a pre-funded preferred return reserve, which was used to pay a current preferred return during the construction period for each investment. This increased the equity requirement for each investment and diluted the Gross IRRs and Gross Multiples. (2) "Hypothetical Gross IRR" and "Hypothetical Gross Multiple" Investments reflect calculations made by BCRE to remove the pre-funded preferred return reserve, which is not contemplated for Investors of the Fund. This reduces the equity requirement for each investment and increases the Hypothetical Gross IRRs and Hypothetical Gross Multiples. (4) Villas at Galleria, L.P. Tranche B did not utilize a pre-funded preferred return reserve. (3) "Hypothetical Net IRR" and "Hypothetical Net Multiple" Investments reflect calculations made by BCRE to determine the hypothetical IRR and multiple a limited partner of the Fund would realize for each "Hypothetical Gross"(2) Investment, if such Investment were, individually, subject to its pro rata share of the asset management fee, the organizational and offering costs, and the distribution structure of the Fund.

37

Management: Boston Capital and BCRE Fund IV GP The Team The Team

Mark W. Dunne – Senior Vice President, Managing Director of Boston Capital Real Estate Partners

• Mr. Dunne oversees Boston Capital's market rate housing initiatives and is responsible for developing the group's

investment strategy. Mr. Dunne and his team identify and partner with experienced developers with a solid track record in multifamily development and also pursue direct and joint venture investment opportunities for the group's Private Equity Investing activities and the Boston Capital Real Estate Investment Trust. Prior to joining Boston Capital, in his capacity as President of River Partners, he served as Head of Portfolio Management and Dispositions with PaineWebber Properties and as Senior Vice President and Director of Asset Management for real estate equity investments for PaineWebber, Inc. Previously, he held positions in real estate development and commercial lending development and commercial lending. He holds the Counselor of Real Estate (CRE) designation, is a licensed real estate broker in the State of Massachusetts and serves on the Board of the National Multi Housing Council. M S in Real Estate from Massachusetts Institute of Technology (USA) M.S. in Real Estate from Massachusetts Institute of Technology (USA) A.B. from Syracuse University (USA)

38

Management: Boston Capital and BCRE Fund IV GP The Team The Team

Ted Trivers – Senior Vice President, Director of Underwriting

• Mr. Trivers is responsible for the underwriting and coordination of due diligence of all BCRE investments. From

1993 to 2006, Mr. Trivers served as the Director of Due Diligence and Underwriting, in Boston Capital's tax credit group and served as a voting member of its Investment Committee. Mr. Trivers also served as Director of Acquisitions in that group from 2002 to 2003. Prior to joining Boston Capital, Mr. Trivers was Treasurer of New l d C l l d England Communities, Inc., a regional real estate acquisition, asset management and property management company located in Massachusetts. During his 12-year tenure, he participated in placing in excess of US$ 50 million in debt financing and managed over 2.5 million square feet of residential and commercial property. He holds a construction license in Massachusetts holds a construction license in Massachusetts. MBA from Babson College (USA) B.S. in Business from Babson College (USA)

39

Management: Boston Capital and BCRE Fund IV GP The Team The Team

Richard D. Mazzocchi – Vice President, Acquisitions

• Mr. Mazzocchi is responsible for evaluating, negotiating and closing the acquisition and development of new and

existing multifamily properties for BCRE. Mr. Mazzocchi concentrates on identifying and structuring equity investment opportunities for to-be-built multifamily properties throughout the United States and creating national relationships with investment sales firms and multifamily developers. Prior to joining Boston Capital in 1996, he k d h C h h bl f h f l f h worked with FJR Construction, where he was responsible for overseeing the financial operations of the company. MBA from Northeastern University (USA) B.S. in Finance from Babson College (USA)

40

Management: Boston Capital and BCRE Fund IV GP The Team The Team

Dan Hartley – Vice President, Acquisitions

• Mr. Hartley serves as an Assistant Vice President for BCRE and is responsible for evaluating potential property

investments, negotiating purchase/investment terms, coordinating and conducting due diligence, and closing investments related to the acquisition and joint venture development of new and existing multifamily properties. He is also responsible for joint venture and investor level financial structuring and modeling and is involved in f l C 2002 l k investor communications on financial matters. Prior to joining BCRE in 2002, Mr. Hartley spent two years working in Boston Capital's Structured Finance Department where he performed analyses and made recommendations regarding the structuring of Fund property investments to meet investor clients' needs. B S /B A in Business Administration (concentration in Finance) from University of North Carolina at Chapel Hill B.S./B.A. in Business Administration (concentration in Finance) from University of North Carolina at Chapel Hill (USA)

41

Management: Boston Capital and BCRE Fund IV GP The Team The Team

Stephen P. Rourke – Assistant Vice President

• Mr. Rourke is responsible for analyzing, underwriting and presenting potential multifamily development and

acquisition opportunities for investment purposes, as well as assisting in the closing and asset management of

• investments. Mr. Rourke's other responsibilities include updating and maintaining market rate financial models

that are utilized for the purpose of investment decision making, and coordinating and assisting in the assembly of d k k d f h h l d f C Investment Memoranda. Mr. Rourke worked for eight years at the New England Life Insurance Company in various financial positions such as Commercial Mortgage Analyst and also worked as an Analyst in the Capital Markets group for Spaulding and Slye. B S in Finance and Marketing from North Adams State College (USA) B.S. in Finance and Marketing from North Adams State College (USA)

42

Summary

Summary Why Invest? Why Invest?

Improving multifamily fundamentals:

• Supported by low affordability, mortgage crisis, favorable demographics and employment growth; and
• Positive excess spread (arbitrage) between build rates and cap rates.

Strong development pipeline and quality seeded assets; Track record: Track record:

• Successful asset acquisitions spanning all asset classes; and
• Proven structuring and execution capabilities.

Focused investment strategy: Focused investment strategy:

• Disciplined approach to acquisitions and disposals;
• Rigorous due diligence process;
• Careful selection of submarkets and products
• Careful selection of submarkets and products.

Property manager with extensive deal sourcing capabilities; Experienced international fund manager with successful track record in market timing and sector selection.

44

Appendices

Appendix A: Why Real Estate? Investing in Real Estate: Superior Risk-Adjusted Returns and Diversification Investing in Real Estate: Superior Risk Adjusted Returns and Diversification

400 450 NAREIT NCREIF

Cumulative Returns of Asset Classes

On a risk adjusted basis, the Real Estate sector has

• utperformed the major equity and bond indices:

250 300 350 400 Returns Index NCREIF S&P 500 DJIA Russell 2000 ML Corporate / Govt Bond ML High Yield Corporate

Equities Real Estate

• Over the past 10 years: NAREIT and NCREIF

delivered higher returns and lower volatility relative to all major equity indices;

50 100 150 200 Cumulative R ML High Yield Corporate

Bonds

• The 15-year Sharpe ratios for NCREIF (1.01) and

NAREIT (0.64) exceed the ratio for S&P 500 (0.45). Real estate also offers diversification benefits: Real Estate I di (NCREIF d NAREIT) hibi l

50 1996 1998 2000 2002 2004 2006

Indices (NCREIF and NAREIT) exhibit very low correlations with stock and bond indices.

15-year Correlation Matrix NAREIT NCREIF S&P 500 Lehman US Aggregate Lehman High Yield NAREIT 1.00 0.01 0.36 0.17 0.42 NCREIF 0 01 1 00 0 00 0 20 0 19 NCREIF 0.01 1.00 0.00

• 0.20
• 0.19

S&P 500 0.36 0.00 1.00 0.15 0.49 Lehman US Aggregate 0.17

• 0.20

0.15 1.00 0.24 Lehman High Yield 0 42

• 0 19

0 49 0 24 1 00

46

Sources: NAREIT Chartbook 2006; Center for International Securities and Derivatives Markets; Historical returns are not indicative of future performance

Lehman High Yield 0.42

• 0.19

0.49 0.24 1.00

Appendix B: Why Multifamily? Investing in Multifamily Real Estate: Attractive Investment Attributes Investing in Multifamily Real Estate: Attractive Investment Attributes

Multifamily has historically delivered higher returns and greater stability among the real estate asset classes.

NCREIF INDICES ALL MULTIFAMILY INDUSTRIAL OFFICE RETAIL 20-Year History Average Returns 8.28% 10.09% 9.09% 6.80% 9.52% Volatility 5.82% 4.65% 6.56% 8.73% 6.39% Negative Returns 2 1 3 4 2 Positive Returns 18 19 17 16 18 10-Year History Average Returns 12.52% 12.71% 13.03% 12.75% 13.15% Volatility 3.67% 3.46% 4.08% 5.95% 5.13% Negative Returns Positive Returns 10 10 10 10 10 5-Year History 5 s o y Average Returns 12.43% 13.21% 12.73% 11.61% 17.38% Volatility 4.67% 4.55% 5.15% 6.81% 3.67% Negative Returns

47

Negative Returns Positive Returns 5 5 5 5 5

Sources: NCREIF

Appendix C: Multifamily Returns vs GDP Growth? Low Correlation with GDP Growth Low Correlation with GDP Growth

Multifamily returns have historically exhibited very low correlations with GDP growth: over the past 15 years the correlation has been less than 0.14; Furthermore, the Fund will continue to invest in opportunities that are not likely to be impacted by a potential recession (e.g. high barrier markets, high growth markets, markets dominated by student tenants, and markets with business cycles that are independent of the national economy).

6% 7%

NPI Quarterly Apartments Return GDP Q t l G th

Apartment Returns vs GDP growth 4% 5%

GDP Quarterly Growth

2% 3% 0% 1% 0% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

48

Sources: NCREIF, www.freelunch.com

Kuwait Financial Centre S.A.K. "Markaz"

P.O. Box 23444, Safat 13095 State of Kuwait Tel: +965 224 8000 Fax: +965 241 4499 Email: info@markaz.com markaz.com