1. Development of Real Estate Funds Management in Asia

2. Agenda Introduction of MGPA From MGPA to BlackRock Real Estate Funds
What role does real estate perform in a balanced portfolio
Real Estate Funds in Asia
Real Estate in Asia – How it has developed over time
Capital inflows for Asia Funds
Asian real estate returns
2013 – 2018 Crystal ball
Thailand-
In an Asian RE Investment context
The landscape ahead: Where will capital go
Q & A

3. Introduction of MGPA

4. Historical AUM / EUM (US$ Millions) Capital Commitment by Region
MGPA Overview
Vertically integrated independently managed, private equity real estate advisory company operating throughout Asia Pacific and Europe
Focused on real estate funds management, co-investments and separate account mandates for institutional investors
Offering products across the risk/return spectrum including development
14 year investment and development track record across Asia and Europe1
91 investors from Australia, Europe, Middle East and North America
As of 31 March 2013 MGPA had (i) raised US$8.5 billion of equity commitments and (ii) gross assets under management of US$12billion
Historical AUM / EUM (US$ Millions)
Capital Commitment by Region
1 Including Lend Lease Global Properties Fund SICAF.

5. Global presence
Extensive local network with 220 staff in 13 offices throughout Asia Pacific and Europe.
Europe
Copenhagen
Frankfurt
London
Luxembourg
Paris
Warsaw
Asia Pacific
Beijing
Hong Kong
Kuala Lumpur
Shanghai
Singapore
Sydney
Tokyo

6. Long term growth, stable platform
1995
APIC Close
US$250 million
1995
1 Does not include the establishment and realisation of co-investment vehicles or separate accounts.

7. MGPA at a glance Activities Since inception – investors
Eight funds currently under management in Asia and Europe
total cumulative equity commitments of approximately US$7.5 billion
Seven co-investments and joint ventures totalling US$385 million in equity commitments
Three advisory mandates
Invested in 421 properties with exposure to 21 countries
Since inception – investors
91 investors from 16 countries across four regions; Australia, Europe, Middle East and North America
Over 85% of investors have reinvested with MGPA
Since inception - realised investments
172 properties with total gross asset value at disposition of over US$6.3 billion
Realized net investment level returns across value add and opportunistic strategies IRR 19%,
1 As at 31 March 2013 includes all realised investments across LLGP, MGPA AFII, MGPA EFII, MGPA AFIII & MGPA EFIII.

8. Global industry recognition
2013 Best Asian PERE fund manager (REIW)
2013 Asian deal of the year (Ginza 4-Chome Tower) (REIW)
2012 Best Asian PERE fund manager (REIW)
2010 Europe deal of the year (acquisition of Aldi Portfolio, Germany)
2009 Asian firm of the year Asia deal of the year (181 Queen’s Road) CEE retail awards investor of the year award (MGPA Europe Fund III, L.P.)
2008 Asian firm of the year Global fundraiser of the year (Global Fund III) Asian fundraiser of the year (MGPA Asia Fund III, L.P.) Asian industry figure of the year (Simon Treacy)
2007 Asian & European firm of the year Asian industry figure of the year (Jim Quille) Asia deal of the year (8 Shenton Way)
2006 Asian firm of the year

9. Capital raised over past five years
MGPA has raised US$5.4 billion of capital commitments over the last five years, ranking them (globally) number 11 of real estate asset managers
Source: PERE Magazine

10. Investor profile
Total capital raised (including all Funds and co-investments) US$8.5 billion
91 investors across all industry sectors from Australia, Europe, Middle East and North America
Capital commitment by investor type
Capital commitment by region (number of investors)
Average equity commitment by investor US$ MM
Capital commitment by region

11. MGPA in Europe – Proven Performance
Well established European presence with over 80 staff in six offices
13 nationalities, 24 languages
298 properties acquired since 1999 across 13 countries
Gross asset value of US$6.2 billion
20 development and re-development projects undertaken in ten countries
Investments in 104 properties realised1
Total gross asset value at disposition of US$3.4 billion
Realised net investment level IRR 19%,
1 As at 31 March 2013.
2 Includes all realised investments across LLG, EFII and EFIII.

12. Assets in 13 European countries
Belgium
l Banimmo Portfolio (corporate, office & retail)
l Sony Portfolio (office)
Denmark
 Illum (retail)
France
l Banimmo Portfolio (corporate, office& retail)
l Akeler Portfolio
(corporate, office/logistics)
l Capital Sud (office)
 Logiffine (light industrial/logistics)
l Balthazar (office)
 Le Madeleine (office & retail)
 Viva (office)
Germany
l Akeler Portfolio (corporate, office/logistics)
l MCT (office)
 GLI Portfolio (logistics)
 Sony Portfolio (office)
 ‘Dial’ and ‘August’ Portfolios (retail & industrial)
 CNL GIT Portfolio (retail)
 Separate Account Portfolio (retail)
Greece
 Academy Gardens (retail)
Italy
l Sony Portfolio (office/logistics)
 Light Building (office)
Luxembourg
l Banimmo Portfolio (corporate, office & retail)
Poland
l Roundabout (office)
 Angel Wings (residential)
 Rondo 1 (office & retail)
 Wilanow One (residential)
 Karolinka (retail)
 Pogoria (retail)
Portugal
l Arrabida Shopping Centre (retail)
l Akeler Portfolio (corporate, office/logistics)
Spain
l Amura (office)
l Metrovacesa (equity)
Switzerland
 Sony Portfolio (office)
The Netherlands
l Haslemere (equity) UK
l Meadow Portfolio (mixed use)
l Hayes Office Park (office)
l Storage King (self storage)
l Chancery Exchange (office)
 LIH (corporate)
 Exchange Tower (office)
 Moorgate Exchange (office)
 6 Bevis Marks (office)
l Realised assets
 Currently owned assets

13. MGPA in Asia – Proven Performance
Over 130 staff in China, Hong Kong, Japan, Singapore, Malaysia and Australia
130 properties acquired since 1999 across seven countries
Gross value of US$11 billion
14 development and re-development projects undertaken in six countries
74 properties realised1
Total gross value at disposition of US$2.9 billion
Realised net investment level returns across value add and opportunistic strategies, IRR 18%,
1 As at 31 March 2013.
2 Includes all realised investments in Asia and Japan across LLGP, AFII and AFIII.

14. Assets in eight countries across Asia Pacific
Australia
 6-10 O’Connell Street (retail & office)
 Optima Centre (office)
Japan
l Arasho (office)
l MyAtria Ikebukuro (residential)
l Sogo Portfolio (office)
l Toranomon (office)
l Ueno building (office)
l Rosa Akasaka (residential)
l KIR Otemachi (residential)
l Osaka 2 Portfolio (office)
l Noda (logistics)
l Sanbacho (office)
 Whale Portfolio (residential)
 Ginza 4-Chome (office & retail)
 Strings Portfolio (office)
l MyAtria Portfolio (mixed use)
 Malera Shopping Centre (retail)
 Fukuoka (office & retail)
 Meiwa 2 Portfolio (office & residential)
 Higashi Ogijima (industrial)
l Shirokanedai (office & retail)
 Fuji Grand Imabari (retail)
l Ark II (office & residential)
 Whale Meguro (office & residential)
l Hybrid Portfolio (office & residential)
 Kameido (office)
l Meguro Yamate Place (office)
l Atria Meguro Tower (residential)
China
l Platinum (office)
 Galleria Chengdu (retail)
l Panyu (residential & retail)
 j-Tower (office)
Hong Kong
l Lippo Towers (office)
l Repulse Bay (residential)
l 181 Queens Road (office & retail)
l Vicwood (office & retail)
l Great Eagle (equity)
l HK Land (equity)
Malaysia
 The Intermark (office, retail & hospitality)
Singapore
l Springleaf Tower (office)
 8 Shenton Way (office & retail)
 Asia Square (office, retail & hospitality)
 Asia Square (office & retail)
l Cascadia (residential)
l 8 Napier (residential)
South Korea
l M Tower (office)
l KEB (NPL portfolio)
l Financial News (office)
l Realised assets
 Currently owned assets
Thailand
 Evolution Capital (hotel & leisure)
 Andaman (hospitality & residential)
 South Shin Otsuka Building (office)
 Shinjuku TX Building (office)

15. Asia Square – Singapore
Current asset development
Key figures
Equity invested to date
US$1,724 million
Ownership
MGPA Asia Fund III
Acquisition date
Q (Tower 1) and Q (Tower 2)
Size
2.1 million sq ft of office and retail (NLA) and a star hotel
Opportunity
Buy, develop, sell
Key information
Amalgamate two adjacent sites to develop an integrated premier office complex with a 5-star hotel in new CBD of Singapore
Asia Square Tower 1 completed in June 2011; Tower 2 scheduled to be completed in Q3 2013
Deliver efficient space for the financial services sector
Tenants: Citi (anchor), Julius Baer, Sarasin Bank, Google, Lloyds of London, Marsh & McLennan and Westin hotel
Tower 1 is certified LEED Platinum (first in Singapore) and Tower 2 is pre- certified LEED Platinum.

16. The Intermark – Kuala Lumpur, Malaysia
Current asset redevelopment
Key figures
Equity invested to date
US$244 million
Ownership
MGPA Asia Fund II
Acquisition date
Q2 2007
Size (NLA)
1,315,659 sq ft (office)
208,697 sq ft (retail)
540 rooms (hotel)
Opportunity
Buy, fix, sell
Key information
A mixed use development of 2,755,948 sq ft comprising a 63 storey existing office tower, a 40 storey new office tower, six storey shopping centre and a hotel
Renovate existing office tower (Vista Tower) and hotel (Doubletree by Hilton)
Demolish one of the poorly designed retail centres and re-develop into a new office tower (Integra Tower)
Capture planning gain through increasing allowable plot ratio to ten times
Integra Tower received Certificate of Completion and Compliance in November 2012
Tenants: Vista Tower – UOB, SMBC, BNP Paribas and Petronas; Integra Tower – JP Morgan and Aker Solutions.

17. 181 Queen’s Road Central – Hong Kong
Realised asset management
Key figures
Equity invested
US$85.5 million
Ownership
MGPA Asia Fund II (65%), co-investors (35%)
Acquisition date
Q2 2006
Size (GFA)
35,590 sqm
Realised date
Q to Q1 2010
Gross sales price
US$434 million
Opportunity
Buy, reposition, sell
Key information
A 29 storey Grade B+ office building with retail podium
Located in the fringe of Central Hong Kong
Invested in an under-rented building in a market with limited supply, strong demand and a positive rental growth outlook
Realised reversionary value – passing rents over 50% below prevailing market rents
Sold through strata title, to take advantage of opportunity in market cycle
Net investment level return: IRR 20%, EM 1.8x.

18. Vicwood Plaza – Hong Kong
Realised asset repositioning
Key figures
Equity invested
US$67.4 million
Ownership
MGPA Asia Fund II (51%), co-investors (49%)
Acquisition date
Q1 2006
Size (GFA)
377,214 sq ft
Realised date
Q3 2010
Gross sales price
US$488 million
Opportunity
Buy, fix, sell
Key information
A 35 storey building over four levels of retail and 29 office floors
Excellent transport connections including a footbridge system linking it to Central
Realised reversionary value – passing rents 50% below market rents
Improved tenant covenants (e.g. HSBC and Mayer Brown JSM)
Revitalised retail tenant mix and created direct access from retail podium to MTR
Upgraded office floors and increased leasable area from 377,214 sq ft to 390,161 sq ft
Net investment level return: IRR 23%, EM 2.2x.

19. 56 Repulse Bay Road – Hong Kong
Realised asset repositioning
Key figures
Equity invested
HK$622 million
Ownership
Global Fund I (70%), co-investors (30%)
Acquisition date
Q3 2001
Size
188,294 sq ft
Realised date
Q4 2006
Gross sales price
HK$3,049 million
Opportunity
Buy, refurbish, sell
Key information
Located in Repulse Bay, traditional luxury residential area of Hong Kong, all 53 houses enjoy full sea view
Fixed the physical deficiencies, including water leakage, underperforming air conditioning and dated aesthetic design
Value added opportunity to upgrade the asset via refurbishment, including replacement of the façade, upgrade of the car park and driveway and creation of new landscaped garden
Rebranded the project including renaming it to ‘56 Repulse Bay Road’ and conducted high profile marketing campaign
Disposed of the asset on a strata title basis, major buyers were local HNW and family offices
Net investment level return: IRR 29%, EM 1.7x.

20. Toranomon – Tokyo, Japan
Realised asset repositioning
Key figures
Equity invested
US$13.4 million
Ownership
Global Fund I
Acquisition date
Q4 2004
Size
4,692 sqm
Realised date
Q3 2006
Gross sales price
US$71.3 million
Opportunity
Buy, reposition, sell
Key information
Located on a major arterial route in central Tokyo
Undertook extensive refurbishment and repositioning, including new façade to provide modern office accommodation
Let and sold into improving market cycle
Net investment level return: IRR 61%, EM 3.2x.

21. Malera Shopping Centre – Gifu, Japan
Current asset repositioning
Key figures
Equity invested to date
US$153 million
Ownership
MGPA Japan Core Plus Fund
Acquisition date
Q1 2008
Size
76,143 sqm
Opportunity
Repositioning
Key information
Acquire a retail investment in suburban Japan in order to rebalance and reposition the centre in the trade area to capture increased sales
Off market acquisition
Property management efficiently restructured and redesigned
Centre has secured new tenants including new anchor tenants (Round One, H&M, Zara and Bershka)
Common areas have been improved and the centre re-zoned
NLA has been increased by 277 tsubo following conversion of common area to let area.

22. Ginza 4-Chome – Tokyo, Japan
Current asset management
Key figures
Equity invested to date
US$25 million
Ownership
MGPA Asia Fund III (100%)
Acquisition date
March 2012
Size
60,536 sq ft
Opportunity
Buy value with active management
Key information
A well-located office/retail property in the Ginza district of Chuo ward
Lender took control of the asset following original developer’s bankruptcy. Decision to dispose asset at significant discount to the original loan amount provided attractive pricing
58% initial occupancy, to be leased-up and stabilized during the hold period
The strategy is to lease-up and stabilize during the hold period and to achieve cost reduction by streamlining the building management and property management costs
Sell at stabilized cash flows in central Tokyo to institutions such as J-REITs
Increased occupancy to 100% within 6 months of acquisition

23. M Tower – Seoul, Korea Realised asset management Key information
Key figures
Equity invested
US$16 million
Ownership
MGPA Asia Fund II (50%), co-investor (50%)
Acquisition date
Q1 2007
Size
34,173 sqm
Realised date
October 2007
Gross sales price
US$166 million
Opportunity
Forward purchase
Key information
A 19 storey Grade A office tower development located in a prime area of the CBD with a redevelopment plan
Strong demand with limited supply. Building fully let prior to completion.
Sold to a Korean REIT after the building was fully let
Net investment level return: IRR 91%, EM 1.6x.

24. Galleria – Chengdu, China
Current asset management
Key figures
Equity invested to date
US$67 million
Ownership
MGPA Asia Fund III (50%), JV partner (50%)
Acquisition date
Q3 2011
Size (GFA)
385,125 sq ft (retail)
Opportunity
Acquire institutional Grade retail property with a strong rental growth outlook
Key information
Occupancy remains unchanged at 100%
Leasing performance is above underwriting
Ongoing discussions with Auchan about the connecting foot bridge
Approximately 7,800 sqm of let (23% of NLA/65 leases) space will expire in second half of 2013, providing good reversionary potential. Majority of these leases are on Levels 2 and 3.

25. From MGPA to BlackRock

26. Bigger platform with wider coverage
Platform expansion
A team of over 400 real estate professionals collectively
Combined pro forma of approximately US$25 billion AUM as of 31 March 2013
MGPA US$12 billion
BlackRock real estate US$13 billion
US$25 billion
The combined platform will have substantial on the ground investment expertise in 18 offices across 13 countries
BlackRock Real Estate investment offices
MGPA investment offices
Tokyo
Sydney
Hong Kong
Shanghai
Beijing
Singapore
Kuala Lumpur
Copenhagen
London
Frankfurt
Paris
Luxembourg
Warsaw
New York
Boston
San Francisco
Newport Beach
Pittsburgh
BlackRock and MGPA investment offices
Source: BlackRock as at 5 June 2013

27. Future initiatives Launch follow on Funds Grow in all 4 quadrants
Large core funds in each region & major country
Value add & opportunistic on a regional basis
Grow AUM selectively

28. Real Estate Funds

29. What role does real estate perform in a balanced portfolio
Inflation Protection – hedge against inflation
Rental income highly correlated with inflation
Return enhancer – higher long-term return than and bonds and cash
Income generator
Stable rental income from stabilised properties often secured against long term leases CPI indexed
Diversification – weak correlation to equities and bonds
Real assets
You can feel and touch
Low beta
Lower long term volatility than equities

30. Real Estate offers many investment styles
Return
Opportunistic:
18%-20%
Private
Public
Private funds - Core, core plus, value-add, opportunistic
REITs
Listed property funds
Equity
Value-add:
13%-15%
Core plus:
10%-12%
Mezzanine
Whole loans
CMBS
Mortgage REITs
Debt
Core:
6%-8%
Risk

31. Real Estate Funds in Asia

32. Real Estate in Asia – How it has developed over time
Private
Public
1998
2013
1993
2004
Private funds - Core, core plus, value-add, opportunistic
REITs,
Listed property funds
Equity
Mezzanine,
Whole loans
CMBS,
Mortgage REITs
Debt

33. Capital inflows for Asia Funds 1995 -2013
Fund raising environment remains challenging
Declining capital raised/fund ratio
Real Estate Funds Raised in Asia
Source: Preqin

34. What investors want Stability Certainty Transparency Rule of Law
Stable political and economical environment
Certainty
Continuity of policies, regulations
Transparency
Availability of information for investors making informed investment decisions
Rule of Law
Law enforcement
Title
Liquidity
An active transaction market
Robust Capital markets

35. What's changed in a post GFC world
Initially less capital – This is changing
LP’s want more say
Definition
New formats
Less fees
Greater Transparency
Greater regulatory environment
Operators V Allocators
Fiduciary culture
Increased communication

36. Where the capital is heading
Capital is heading to markets that
welcome capital
have liquidity
Most active markets in H1 2013
Most active cities in H1 2013
Source: JLL

37. Institutional grade real estate market size
The U.S. still dominant by a very large margin
Estimated Size of Real Estate (US$ bn)
Estimated Size of Real Estate (US$ bn)
Source: Prudential Real Estate Investors

38. Asia – the growth engine
Asia Pacific is expected to become the largest real estate market in the world by 2021
China will contribute the most to the global growth of CRE
Forecasted Size of Real Estate (US$ tn)
Contributions to global growth of CRE
Source: Prudential Real Estate Investors

39. 2013 – 2018 Crystal ball Defined benefit to defined contribution
More money
Greater liquidity
More allocation to alternatives
DB/DC Asset Split
Pension asset allocation
Source: Towers Watson

40. Pension asset development in Asia and CEE (€ bn)
2013 – Crystal ball
Real assets – growth trend
Infrastructure
Real estate
Timber
Agricultural land
Emerging market
Retirement plan (pension)
Life insurance
Matching assets with liabilities
Pension asset development in Asia and CEE (€ bn)
Source: Allianz Dresdner Economic Research

41. Thailand- in an Asian RE investment context

42. Thailand- in an Asian RE investment context
Current GDP 5.3%1
3-yr forecast average: 4.7%
3-yr historical average: 4.4%
Population 66.4 billion, growth at 0.3% p.a. ( )2
2015 projection: 67.4 billion
Diversified economy
Source: CIA World Factbook, 2012 est.
1 Source: IHS
2 Source: United Nations, Department of Economic and Social Affairs (as of 2010)

43. Thailand- in an Asian RE investment context
Asian real estate ex. Japan delivers consistent positive returns
Asian markets 5-year total return
Asian markets 10-year total return
Source: MGPA, JLL REIS
Note: the returns were calculated based on JLL office total return indices (local currency)
China – Beijing & Shanghai

44. Thailand- in an Asian RE investment context
Much less inbound institutional investors
Thailand is not getting its “fair share”
Source: Real Capital Analytics

45. Thailand- plenty of room to grow
Thailand has lagged in developing a REIT market, compared to its peers in ASEAN
It has also lagged in the size of institutional-grade real estate
Source: Asia Pacific Real Estate Association (APREA)
Source: Prudential Real Estate Investors
Note: For charting purpose, property funds are used as a proxy for REITs in Thailand

46. The landscape ahead: Where will capital go?
Its all about change
The rate of change
How we adapt to change
Capital is agnostic
Adapt and grow or atrophy and die
Detroit

47. Development of Real Estate Funds Management in Asia
22 July 2013
Development of Real Estate Funds Management in Asia

48. Disclaimer
The information in this document is being delivered and provided on a confidential basis and as an information only document. No offer is being made by MGPA by delivery of this document and no reliance should be placed upon the contents of this document by any person who may subsequently decide to enter into any investments, investment services or transaction which may be described herein. This document is provided for assistance only and is not intended to be and must not alone be taken as, the basis for a decision to enter into any investments, investment services or transaction which may be described herein. Recipients of this document should not treat its contents as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers concerning any investments, investment services or transaction that may be described herein. Third party information contained in this document has been compiled from sources believed to be reliable but no liability is accepted if this is not the case. In considering any performance data contained herein, you should bear in mind that projected returns are not indicative of future results, and there can be no assurance that an investment will achieve comparable results or that projected returns will be met. A full list of past specific recommendations is available upon request. This document is proprietary to MGPA. By accepting delivery of this document, the recipient agrees not to reproduce or distribute this document in whole or in part and not to disclose any of its contents (other than to obtain advice on it from a legal, business, investment or tax advisor) without the prior written consent of MGPA. © MGPA 2013