1. Global Research and Consulting European Investment Briefing Presented by: Michael Haddock, Director, EMEA Research & Consulting 05/10/2010

2. Key themes for today’s market  The downturn was syncronised –the recovery is more uneven  Uncertainty is everywhere –not least in the economic outlook  Debt is available to buy commercial real estate –but only if you don’t need it  New allocations to real estate are coming at the expense of bonds, not equities

3. Source: ECOWIN, Financial Times 10-year government bond yield Changes in risk free rate

4. Global Research and Consulting Investment Activity

5. Source: CB Richard Ellis € Billion Investment market turnover in Europe

6. Source: CB Richard Ellis H1 2010 versus H2 2009 Changes in investment market turnover

7. Global Research and Consulting Economy, Occupier Markets, Vacancy & Development

8. Peak to trough decline in output (% of GDP) **still in recession as at Q2 2010 Source: Eurostat, CB Richard Ellis Extent of the recession

9. Real GDP growth Source: Consensus Forecasts Inc Future economic growth

10. Net absorption (rolling six months) and vacancy (% of stock) Source: CB Richard Ellis European office absorption and vacancy

11. ‘000 Sq M Source: CB Richard Ellis Office development – Western Europe

12. Currently vacant office space, plus developments scheduled for completion by end 2012 As percent of Stock Source: CB Richard Ellis Office development pipeline

13. NB. Markets do not necessarily move along the curve in the same direction or at the same speed. The rental cycle is intended to display the trend in net effective rents As at 30th June 2010 L London City M Dublin Barcelona Berlin Rome Lisbon Lyon L Geneva G Amsterdam Milan Brussels A Prague Athens Dusseldorf Frankfurt Paris Madrid Hamburg Stockholm Copenhagen Oslo Edinburgh Munich London TV Manchester D P O B Birmingham Vienna Moscow Warsaw Zurich Helsinki M F P A C Z E V M T Budapest Bucharest D B R M H H B B B S W M B L Rental Decline AcceleratingRental Decline SlowingRental Growth AcceleratingRental Growth Slowing L London West End Office rent cycle – Q2 2010

14. Global Research and Consulting Capital Values and Pricing

15. EU-15 Offices Capital Value Growth, % per annum Source: CB Richard Ellis Drivers of capital values

16. Capital value change: June 09 to July 10 Source: CB Richard Ellis

17. UK secondary yield spreads Source: CB Richard Ellis Prime – secondary yield spread

18. Global Research and Consulting Summary

19.  Prime – Secondary dislocation is the key feature of markets everywhere in Europe  Investors –Investment activity driven by risk averse institutional style capital –Lenders have no appetite for secondary either  Occupiers –Weak net absorption –Uncertain economic outlook –Any rental growth is due to lack of development activity Conclusions

20. Global Research and Consulting Panel Discussion Jonathan Hull, Head of EMEA Capital Markets John Welham, Head of European Retail Investment Peter Schreppel, Head of International Investment, Germany Natale Giostra, Head of UK & EMEA Debt Advisory

21. Source: CB Richard Ellis Investment market – Germany 2009 Total transactions €10.45 billion H1 2010 Total transactions €8.65 billion Total value of transactions by purchaser nationality

22. Global Research and Consulting Panel Discussion Jonathan Hull, Head of EMEA Capital Markets John Welham, Head of European Retail Investment Peter Schreppel, Head of International Investment, Germany Natale Giostra, Head of UK & EMEA Debt Advisory