1. PRIVATE & CONFIDENTIAL www.dtz.com European Market Outlook April 2012

2. Agenda European overview European property market – recent trends and forecasts Capital market trends European scenario analysis 1

3. Divergent economic outlook Source: Various Statistics Agencies, DTZ Research 2 GDP growth forecasts for 2012

4. Bond markets calmer following LTRO, but Italian and Spanish yields have risen once again Source: Bloomberg, DTZ Research 3 5 year government bond yields, selected countries

5. Agenda European overview European property market – recent trends and forecasts Capital market trends European scenario analysis 4

6. Little rental growth expected in near term Source: DTZ Research 5 European rental growth

7. Prime office and retail rents mostly flat in recent months 6 month % change, Q3-11 to Q1-12 6 Prime rents Source: DTZ Research

8. Vacancy rates stable in most markets Q3-11 and Q1-12, % 7 Office market vacancy rates Source: DTZ Research Q1-2012 X Q3-2011 Region Average Average= 11.3%

9. Strongest growth seen in Eastern Europe Source: DTZ Research 8 Office rental growth 2012

10. Stable yields points to period of weak capital growth Source: DTZ Research 9 European capital growth

11. Office and retail yields also little changed over past 6 months Q1-12 yields and 6 month bps change, Q3-11 to Q1-12 10 Prime office yields Source: DTZ Research

12. Yields in core markets to edge upward as interest rates normalise.... Source: DTZ Research 11 Prime yield forecasts for selected markets – 2012-16

13. .....yields in CEE to edge inward as the European economy recovers Source: DTZ Research 2012-2016 (%pa) 12 Prime yield forecasts for selected markets – 2012-16

14. Agenda European overview European property market – recent trends and forecasts Capital market trends European scenario analysis 13

15. Full year volumes up 6% year on year despite increased caution Source: DTZ Research; Propertydata 14 European investment activity

16. Contrasting fortunes across Europe Source: DTZ Research; Propertydata 15 European investment activity by geography

17. 2011 growth mostly driven by capital value increases Source: DTZ Research 16 Drivers of European investment activity

18. Rise in lot size over the quarter, but down for the year as a whole Source: DTZ Research 17 Investment activity by lot size

19. Growth in domestic investment … Source: DTZ Research 18 European investment activity by source of capital

20. But non-European investors remain net-buyers Source: DTZ Research 19 Net investment by source of capital

21. Listed property companies less active on the buy-side Source: DTZ Research 20 Investment activity by investor type

22. and become net sellers in Q4 Source: DTZ Research 21 Net investment by investor type

23. Growth in office investment and retail holds steady over the year Source: DTZ Research 22 European investment activity by sector

24. Uncertainty could push volumes lower in 2012 Source: DTZ Research 23 European investment volume forecast

25. Agenda European overview European property market – recent trends and forecasts Capital market trends European scenario analysis 24

26. Why do scenario analysis? This is NOT our base case forecast, which shows continued recovery But, many market participants focused on managing downside risks Scenario analysis helps quantify the downside for office markets Using a four-step approach in our scenario analysis: – Define the downside economic scenario – Measure impact across 45 European office occupier markets – Take into account yield impact and quantify total return change – Use DTZ Fair Value Index methodology to assess attractiveness 25

27. European scenario analysis assumptions Base case probability = 45%, break-up scenario probability = 10%. Supplied by Oxford Economics, Jan 2012; Disorderly defaults in Greece, Portugal and Ireland which hit banks hard, particularly in France and Germany; Business and consumer confidence fall, firms cut back on investment, labour markets weaken and economies across Europe are plunged back into recession; Authorities hold interest rates at record lows for an extended period; Impact of crisis reaches well beyond the borders of the Single Currency bloc, tipping the UK back into recession as well. 26

28. Euro-zone break-up scenario prompts deep recession in Europe Source: DTZ Research, Oxford Economics %y/y EU27 GDP Average%pa Base case1.8 Scenario1.0 2012-16 Euro-zone to break up Greece, Ireland, Italy, Portugal and Spain leave single currency Banks suffer heavy losses 27

29. Nordics/UK/Emerging Europe hold up better than Eurozone Source: DTZ Research, Oxford Economics %pa GDP, 2012-2016 2012%pa Spain-4.6% Italy-4.2% Ireland-4.0% Belgium-3.9% EU 27-2.0% France-1.6% Netherlands-1.5% Finland-1.5% Eurozone-1.3% Sweden-1.1% Germany-0.7% UK-0.7% Poland-0.3% Turkey-0.2% Russia0.1% Eurozone markets in grey 28

30. Euro break-up scenario sees rental declines in many markets Source: DTZ Research Prime rents pa 2012-2016 29

31. Risk aversion and recession push yields higher under euro break-up Source: DTZ Research European prime yields by sector 30

32. Euro break-up results in capital value declines in some markets Source: DTZ Research Prime capital values 2012-2016 Cumulative % change 31

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35. PRIVATE & CONFIDENTIAL www.dtz.com European Retail Guide

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