BUILDING AN INTERNATIONAL BUSSINESS Growing Your Business Globally Opportunities with FIABCI World Councils Russian National Real Estate Congress May 17, 2012 Moscow, Russia Kirkor Ajderhanyan President World Council of Brokers FIABCI President International Relations Committee FNAIM General Coordinator Global Real Estate Think Tank Broker/Owner Agence 107 Promenade 107, Promenade des Anglais Nice France

Business is Changing—You must have Vision and Perspective Implement a business plan Define target audience and marketing strategies Vision must reflect global trends and market realities Niche market expertise – makes you strong globally Be a “geo-strategist”: Pursue new markets with a global strategy based on understanding of world events Internet and social media play key role in networking The chess (strategy) rules stay the same; only players change 2

Referrals: The way forward Increase revenue from referrals As business becomes more global → revenue from referrals will increase as % of total revenue Grow referral business by building brand loyalty Offer “one-stop” shopping client services Financing Legal Document services Etc. Develop strong interpersonal relationships 3

Interpersonal relationships Real estate remains a people business—local or global Personal relationship opens doors—surround yourself with the best people to get to the best doors Participate in industry events around the world Learn about other markets Meet brokers in those markets Build a global network to support referral business Be a broker of relationships! 4

MANAGERS Michael von Hauff, President BROKERS Kirkor Ajderhanyan, President DEVELOPERS / INVESTORS João Crestana, President EXPERTS Terry Dunkin, President WORLD COUNCILS OFFICE BUILDINGS CONDOS RESIDENTIAL OFFICE INDUSTRIAL RETAIL LEISURE LAND FARM BUILDERS FUNDS FINANCIAL INSTITUTIONS ARCHITECTS VALUERS LAWYERS ENGINEERS SURVEYORS CONSULTANTS TITLE COMPANIES EDUCATORS Professional Division PROMOTERS RENTAL BUILDINGS RETAIL INDUSTRIAL ASSETS FIABCI World Councils FIABCI WORLD COUNCIL OF BROKERS FIABCI World Councils: Created under FIABCI World President Enrico Campagnoli FIABCI World Councils: Election of Management Team; Launching of Action Plan under FIABCI World President Alexander Romanenko FIABCI World Councils: Active involvement in the global real estate industry under FIABCI World President Judy Shenefield

World Council of Brokers Vision To be the premier, most effective, global business network for brokers To be multidisciplinary, multi-sectorial and multilingual To focus our activities around FIABCI’s core competencies To achieve the goals set for all the World Councils FIABCI WORLD COUNCIL OF BROKERS6

Philosophy to Achieve the Vision Build a new “Golden Bridge” between the continents for the good of the industry. We will achieve this through the exchange of industry knowhow. The human element and shared universal high values and standards will be “construction guide.” FIABCI WORLD COUNCIL OF BROKERS7

Commercial OFFICE BUILDINGS INDUSTRIAL RETAIL LEISURE LAND Residential PRIMARY HOUSING SECONDARY HOUSING WORLD COUNCIL OF BROKERS WCB Divisions FIABCI WORLD COUNCIL OF BROKERS8 DIVISIONS SPECIALTIES SERVICES Education Training & Technology PLATFORM MESSAGING FIREC New Services PROXIO SOCIAL MEDIA SYNDICATION New Markets SPONSORSHIPS GLOBE TROTTER INVESTMENT INFO. Marketing BRANDING EVENTS NETWORK Global Development & Promotion CREATION OF WCB STRATEGIC PLANNING GROUP

FIABCI WORLD COUNCIL OF BROKERS9 Foundation of Success: Volunteers! Join our team and be part of our success! If you have an idea—step up and make it happen.

French Market Opportunities Home prices increased, on average, 85% between 2000 and 2007 before falling back during the crisis Largest increases were in Paris and southern France Figures not adjusted for inflation (est. 15%) Between 2007 and 2011 home prices fell 3.2% Strong sales and price growth in was a record year for home sales activity Total sales exceeding 850,000 (highest level since 2006) Home prices rose an average of 6.1% due to: Historically low interest rates Bounce back from three previous lackluster years Source: FNAIM

Housing Outlook for 2012 Challenges for French residents to buy a home Expected further market correction Tax changes Rising interest rates; larger deposit needed for good rates In spite of this…France is a “crisis resistant market” – especially Paris, Nice / French Riviera Excellent Investor Opportunities Underlying demand remains Substantial housing shortage; high desire for home ownership Low household debt Capital gains tax changes will mean fewer properties on the market, putting pressure on prices

Foreign Investment in France Paris Snapshot Foreign investors looking for €1 to €5 million price property; attracted by prices that are 20-30% lower than Central London Paris has overtaken London to become the #1 city in Europe for property investment (CBRE, 3/30/12) Investment jumped from €3.6 billion in the first half of 2011 to €7.9 billion in the second half Office sector drove investment surge British, Italian and German buyers most active in luxury market; increased interest from Russian, Middle East and Asian buyers (Knight Frank)

Foreign Investment in France Nice / French Rivera Snapshot High demand from large national and international buyers Prices stable since 2008; buyers understand true value of property Prices remain reasonable; pricing is unique for each (no average sq. meter price) Very high re-sale potential Attractive lifestyle Sales volume increased 33% from 2010 to 2011 in Nice seafront Top buyers include French, Russians, Scandinavians, British and other from Northern Europe and also Middle East/Persian Gulf

Doing Business in France Highly transparent market Consumers are well protected More demand than inventory Referrals on the sale of properties average 40% – 50% of the commission paid Average commissions run between 5% and 8% depending on a number of variables Fees are negotiable Professional network of agents through FNAIM

Targeting Russian Investors Russians buyers are looking for reliable, safe place to put their money >>> Real Estate! Moscow is expensive; more affordable to invest outside Russia Russians interested in high quality real estate in London, Paris, Cote d’Azur, Toscana and New York 20% buy in foreign resort areas for holiday trips with families; 20% looking for a retirement home; 25% for investment Source: Analytical Center IRN.RU

Targeting Russian Investors Typical Russian investor abroad is a businessman – owner of one or several enterprises Owns an apartment in Moscow and dacha in the suburbs Looking to buy abroad for personal use Preferred destinations: If speculative – developing markets If long-term investment – developed markets Most Russians buy in markets they have travelled to, including Cyprus, Bulgaria, Montenegro, Spain and France Looking for warm, beachfront locations High-priced preferred locations are London, Switzerland and French Riviera Source: Moscow Times, Real Estate Quarterly – September 2011

BUILDING AN INTERNATIONAL BUSSINESS Growing Your Business Globally Opportunities with FIABCI World Councils Russian National Real Estate Congress May 17, 2012 Moscow, Russia Merci Beaucoup ! Kirkor Ajderhanyan President World Council of Brokers FIABCI President International Relations Committee FNAIM General Coordinator Global Real Estate Think Tank Broker/Owner Agence 107 Promenade 107, Promenade des Anglais Nice France