1. Year-End Review | 2014 | Russia | Colliers International Overall real estate investment volume, 2007–2013 1 Investment Summary 2013 In terms of total deal volume, 2013 was the third record year, with the total investment volume having reached $8.2 billion dollars. In addition, 2013 also saw a record set for the largest average deal size, which increased to $186 million dollars (a 29.5% increase compared to 2012). These new benchmarks demonstrate the robust state of the Russian commercial real estate market. Despite the economic instability, the real estate segment continues to attract both Russian and international institutional investors. One of the most active players this year was Morgan Stanley (a total of $1.2 billion invested), Hines CalPERS ($600 million of invested), Millhouse Capital ($1.1 billion invested) as well as institutional Russian companies such as BIN Group ($980 million invested) and O1 Properties ($530 million invested). Source: Colliers International Key Investment Figures 2013 SECTORVALUE Value of transactions$8.2 billion Office$2.87 billion Retail$2.93 billion Industrial$1.54 billion Yields Office8.5% Retail9% Industrial11% Dynamics of deal size distribution Source: Colliers International

2. Year-End Review | 2014 | Russia | Colliers International 2 The Russian real estate market continues to be one of the most active in Eastern Europe. Many companies continued to build their portfolios of quality assets during 2013, such as O1 Properties, Millhouse Capital and Raven Russia. Large commercial property investors were able to use rental income generated by their assets for new acquisitions. The past year was unique in terms of large deals closed across all sectors of the market. First of all, Morgan Stanley Real Estate Investing set a new record in the retail sector in purchasing Metropolis shopping center from Capital Partners for $1.2 billion dollars. Later in 2013, Russian investment company Renova sold the MLP industrial portfolio to BIN Group for $900 million dollars. In addition, Millhouse Capital acquired White Gardens business center for estimated $740 million. And finally, Azimut Hotels acquired the mixed-use development Radisson Moscow Olympic for approximately $120 million, which is also considered to be a large deal for the hotel sector. In addition to the above, one of the largest regional deals ever recorded was closed in 2013, which was acquisition of Aura shopping center in Novosibirsk by RosEvroDevelopment for approximately $250 million. Such large investment into a the regional retail sector demonstrates a willingness to invest in institutional quality assets in the Russian regions. Despite continually diminishing Russian economic forecasts and an increase in the number of pessimistic outlooks for projected future growth projection in Russia, institutional investors did not hesitate to acquire quality real estate assets. This trend is yet another demonstration of the separation of the activity in the commercial real estate market from pessimistic economic forecasts. Investments by segment, billion $ Source: Colliers International Breakdown of real estate investments by region Source: Colliers International

3. Year-End Review | 2014 | Russia | Colliers International 3 Prognosis 2014 This year Morgan Stanley and CalPERS have demonstrated a successful strategy for entering the Russian real estate market and we expect many other companies to follow in their footsteps during 2014. This transaction is an important step for future investment inflow from international investors and is a demonstration of the investment stability of the Russian real estate market. Companies such as O1 Properties, Millhouse Capital and Raven Russia were able to build portfolios of quality assets in their own respective segments. According to their strategy, they will continue to build their portfolios in 2014. Since the volume of institutional assets on the Russian market remains limited, several noteworthy acquisitions can significantly improve any of the active market players’ position. In 2013, the Russian government changed the property tax policy for commercial real estate, which is now calculated based on cadastral value of the property rather than book value. This reform limits company’s ability to manage its property tax since cadastral value is theoretically much closer to the market value of the asset. We believe that the property tax reform is an attempt to tighten control over the industry by the Russian government. Tax reform as well as other governmental measures will stimulate more asset deals on the domestic market rather than through offshore holding companies. Capitalization rates in various segments, % Source: Colliers International