Development Projects Construction of residential real estate in Kiev, Ukraine

2 Project 1 – residential quarter “Renovation”

3 Location description Location area is Ukraine, Kiev, Solomenskiy district, metro station “Beresteiskaya”, territory of the plant “CARS” Area of the land plot – 9,8 ha The plot is distant from the zone of multi-storeyed residential housing; Pobedy Prospect, metro station and park “Nivky” are in the pedestrian availability ( meters) The district is characterized by absence of objects of commercial and social infrastructure in the pedestrian (construction of SRC, reconstruction of sports complex and office center is offered by another project) The plot does not require any special constructive decisions, a part of the territory will require soil recultivation (fuel and lubricant warehouse). There are required utility facilities on the territory. It is necessary to change intended purpose of the plot and carry out a range of approval procedures that will take from 3 to 9 months before starting selling. A boiler-house is located on the plot what is necessary to take into consideration during development of the general layout - a buffer zone.

4 Location

5 Project description Concept development of this project was carried out in accordance with principles of “a product for an investor” – use of technologies and materials, providing entry into a market with an offer of ready-to-use residence. Structures and areas of apartments were estimated according to a format “your first apartment” in order to solve a problem, regarding withdrawal from business competition “head-on” and to increase selling potential capacities. We implement a closed-type project (with greenfield area, own infrastructure and parking).

6 Project implementation period Sale – 50 months From start till final deferred payment– 76 months 1 st construction stage sq.m. = 805 apartments for sale – 11 months 2 nd construction stage sq.m. = 805 apartments for sale – 9 months 3 rd construction stage sq.m. = 805 apartments for sale – 9 months 4 th construction stage sq.m. = 805 apartments for sale –9 months 5 th construction stage sq.m. = 920 apartments for sale – 11 months

7 Conception For this area the most perspective is construction of economy and comfort class objects with their own infrastructure and convenient transportation. We suggest to focus on the target groups of potential buyers: Parents of students who plan to buy housing for children for a comfortable stay during their studies and further work in the capital city (there are many universities near the land plot – Kiev Polytechnic University, Kiev National economy university, National Aviation university); People and companies, who give their flats in long – term and short term lease (convenient transportation contributes this, as well as proximity of Universities mentioned above)

8 Conception As a description of the "base" of the group of potential buyers – there are buyers interested in purchasing an apartment of a compact area with a rational layout for the "fair" price, that is situated in the region close to the center. For successful development of the project a complex of infrastructure should be created (such as sports center, a kindergarten, a beauty salon, shopping center, supermarket, etc.) To carry out a reconstruction of the sports complex, (located on the territory), as well as reconstruction of one of administrative buildings to the office complex. Structure of flats: 1 room flats with the area of m² % 2 room flats with the area of m² % 3 room flats with the area of m² - ~ 5%

9 Financial indicators of the project Land plot area – 9,8 ha Area of residential housing – sq.m. Number of flats – Investments (working capital) – 13,7 mln $ Net profit – 44,3 mln $ Yield – 59,6 % annually Project implementation – 76 months

10 Project 2 - Building TENANT HOUSE Location – suburb/dormitory Building technology –europanel ‖ Effective area – sq.m Daily rent: 3’000 sq.m= 100 apartments Long-term rent: 9’000 sq.m= 150 apartments Commercial property rent -1’000 sq.m Parking sale 50 parking slot Investments (working capital) – 2 mln $ Net profit – 0,79 mln $ Yield – 66 % annually Project implementation – 15 months Net rental profit – 1,132 mln $/ year

11 Project 3 - Building TENANT HOUSE Location – suburb/dormitory Building technology – europanel ‖ Effective area – m² (3 phases) = 800 apartments Investments (working capital) – 1,55 mln$ Net profit – 1,15 mln $ Yield – 63 % annually Project implementation – 20months

12 Project 4 - Building TENANT HOUSE Location – dormitory, less than 15 min walk to the metro Building technology –europanel ‖ Effective area – sq.m. Apartments for sale - 6’000 sq.m. = 100 apartments Daily rent: 2’000 sq.m. = 67 apartments Long-term rent: 4’000 sq.m = 67 apartments Commercial property rent -1’000 sq.m Parking sale 25 parking slots Parking rent 25 parking slots Investments (working capital) – 4 mln $ Net profit – 1,4 mln $ Yield – 55% annually Project implementation – 18 months Net rental profit – 0,62 mln $/ year

13 INVESTMENT- REAL ESTATE DEVELOPMENT COMPANY “TITUL” CONTACTS: President of the company: Telman Abbasov Tel.: , Site: