DTZ Ukraine DTZ Ukraine Retail in the Regions

DTZ Ukraine 2013 DTZ Ukraine Retail in the Regions Established London, 1784 Established Kyiv, 1994

Kyiv Population 2 844 000 inhabitants Major existing multi-tenant retail centres in Kyiv Major pipeline multi-tenant retail centres in Kyiv Project Delivery Size (sq m) 1. Dream Town 2009 / 2011 (in phases) 90 860 2. Ocean Plaza* 2012 72 200 3. Sky Mall* 2007 / 2010 (in phases) 66 000 4. Gulliver 2013 45 500 5. Marmelade 2013 40 000 6. Karavan Megastore 2004 / 2005/ 2008 (in phases) 37 700 7. Bilshovyk 2007 / 2008 36 200 8. Promenada Centre 2004 / 2007 30 000 9. RayON 2012 23 000 10. Domosfera* 2009 21 600 11. Magellan 2004 21 000 12. Ukrayina Department Store 2003 (reconstruction) 20 800 13. Globus 2002 / 2003 (in phases) 18 600 14. Manufaktura outlet village 2013 18 200 * extension planned Project Delivery Size (sq m) 15. Respublika 2014 139 000 16. Lavina Mall 2015 115 000 17. Retroville 2015 82 700 18. KyivMall 2015-2016 75 400 19. Kvadrat Vyrlytsa 2015-2016 75 000 20. Manhattan Mall 2015-2016 69 200 21. Blockbuster Mall 2014-2015 66 370 22. Petrivka Mall 2015-2016 61 800 23. Hartz 2015-2016 57 000 24. River Mall 2015 49 070 25. Retail and leisure centre on Zdolbunivska Str. 2015 / 2016 (in phases) 48 000 26. Lukyanivka Mall 2015-2016 45 000 27. Happy Mall 2014-2015 42 500 28. Prospekt 2014 40 390 29. Art Mall 2013 36 750 30. Atmosphere 2014 30 000 31. TSUM 2015 (reconstruction) 22 500

Supply & Demand Total modern retail stock in the city amounted to around 1,280,000 sq m (GLA) in late October 2013, or 449 sq m (GLA) per 1,000 inhabitants. In January-October 2013, approximately 134,500 sq m (GLA) of modern retail space was delivered in Kyiv. Major schemes delivered during the period included Gulliver in the central area of the city, Silver Breeze in the densely populated neighbourhood on the eastern bank of the Dnipro River and the secondary quality retail and leisure centre Marmelade. October 2013 saw opening of Manufactura outlet village in the Greater Kyiv area, which is located on the land plot adjacent to the operating retail and leisure centre MegaMarket Khodosivka. During the remainder of the year, the retail and leisure centres Art Mall and Atmosphera are scheduled for delivery in the southern periphery of Kyiv. However, DTZ projects that opening of these schemes will be delayed through to 2014. As of late October 2013, DTZ estimates that around 1,100,000 sq m (GLA) of new modern retail space is in active stage of planning or construction in Kyiv. If these properties were commissioned in accordance with the announced plans, by end of 2016 current retail stock in the Ukrainian capital may double. Majority of pipeline retail stock scheduled for opening in Kyiv by 2016 are regional and super-regional shopping malls. The formats of retail parks are yet to appear in Ukraine. Rents During the period from October 2011 to October 2013 inclusive, average monthly rents in quality retail schemes in Kyiv remained generally stable at USD 70-90 per sq m for premises of 100-250 sq m, reaching highs of USD 160-200 per sq m per month in the most sought-after prime properties. High street retail rents in Kyiv also remained generally stable during the period. As of late October 2013, average high street rents in the Ukrainian capital were registered at $110-230 per sq m per month, with asking monthly rents randomly reaching the highs of $250-300 per sq m. Taking into account present dynamics of retailers on the Ukrainian market combined with significant pipeline supply of quality retail stock, DTZ anticipates that base rental rates during the remainder 2013-2015 will remain stable in relation to the best properties let at sustainable rents. At the same time, rental rates in poorly conceived retail schemes in Kyiv and across Ukraine will be subject to downward pressure. This is due to the lack of critical mass of actual new market entries combined with significant retail stock in pipeline, as well as economic uncertainty both globally and in Ukraine. The longer term sustainability of current rental rates will depend on the actual commissioning and quality of new sizeable pipeline retail schemes scheduled for completion in 2013-2016 and beyond, as well as general macroeconomic conditions in Ukraine and globally.

Kyiv Retroville Shopping and Entertainment centre Location and description Developer Architect Retroville Shopping and Entertainment centre will be located in Podilskyi district, on interception of two stratigically important arterial streets, Pravdy and Poryka avenues. STOLITSA GROUP UAB GEDIMINO JUREVICIAUS STUDIJA Delivery 2015 GBA GLA 104 496 sq m 82 761 sq m Levels 2 Parking Anchors 3 600 spaces Food hypermarket, ice rink, fitness club, electronics, entertainment zone, cinema

High Street Retail Khreshchatyk Street Location and description Owner Intended use GLA Retail premises, located in the heart of Kyiv, on 34 Khreschatyk Street. 2 façade entrances, 7 large show windows on the first level and 10 blocks with 2 show windows each on the second level. Legal entity Footwear and clothes stores, or restaurant 1446,4 sq m, which can be divided in two stores with separate entrances with areas of 700 sq m each. Levels 3

Kyiv Happy Mall Shopping and Entertainment centre Location and description Happy Mall Shopping and Entertainment centre will be located in Golosiivskyi district on Trutenko Street, providing access to several city districts. The shopping mall is planned for commissioning in 2014, becoming a major family shopping destination for daily visits from the densely populated neighbourhoods in Golosiivskyi and Solomianskyi administrative districts of Kyiv. DTZ involvement Developer Architect DTZ was appointed by Liko Holding to provide concept optimisation, tenant mix development and architectural concept optimisation services, as well as to become an exclusive leasing agent of this project. Liko Holding Chapman Taylor Delivery 2014 GBA GLA 92 000 sq m 42 000 sq m Levels 3 Parking Anchors 2 000 spaces Food supermarket, furniture, electronics, sport stores, entertainment zone, cinema

Globus Shopping and Entertainment centre Location and description Home to over 140 stores of the world s leading fashion and lifestyle brands, GLOBUS is located at the historical central square of Kyiv Maydan Nezalezhnosti (in English Independence Square). It started life, as a retail destination in the early 2001-2003, when the city decided to do a capital reconstruction of the square and Globus was built. Located both under and over Independence Square, with immediate metro access, Globus Shopping and Entertainment centre is perfectly situated to attract visitors 12 hours per day, 7 days per week. DTZ involvement Landlord Architect DTZ has been involved in the project as a leasing agent on behalf of the landlord. London & Regional Local architect Delivery 2002-2003 GBA GLA 39 500 sq m 18 600 sq m Levels 5 Anchors Billa, Brocard, New Look, Adidas, Walker, Oodji

Odesa Population 1 010 900 inhabitants Major multi-tenant retail schemes Odessa: existing and in pipeline until 2016 Project Delivery Status Size (sq m) Developer Major brands / anchors 1. Riviera Shopping City 2009 Operating 65 000 2. Odessa City 2015 Planned 59 000 Amstor 3. Zebra 2014-2015 4. City Centre I 2012 / 2014 Operating 5. City Centre II 2014 Argo Real Estate Opportunities Fund Under construction 38 000 BUD HOUSE GROUP 33 000 (phase 1) / 20 000 (phase 2) local developer Auchan, OBI, Comfy, 9-screen cinema with IMAX, Leopark kid s play, Jysk, Inditex Group brands, LPP brands, others Food supermarket, DIY, electronic appliances store, furniture store, cinema, kid s play Food supermarket, retail gallery, fitness centre Sport Life, cinema Silpo, Foxtrot, Comfy, Brocard, Igroland, Piazza Italia, Detskiy Mir, Oodji, Intertop, Adidas, Planeta Kino, M&S, others Under construction 20 120 local developer Tavria-V, Planeta Kino, Gloria Jeans, Oodji, others 6. Srednefontanskiy 2007 Operating 19 530 Local developer Furshet, Comfy, Antoshka, Monton, Adidas, Bomond, Cinema Citi, Igroland, others

Supply & Demand With a total population over 1 million inhabitants, Odessa is one of the largest cities of Ukraine located in its southern part. The city is an important trade sea port on the Black Sea and a popular tourist destination. Total modern retail stock in Odessa was estimated at around 420,300 sq m in October 2013, or 411 sq m (GLA) of modern retail stock per 1,000 inhabitants. The modern retail stock in Odessa has been dominated by multi-tenant retail centres and shopping malls, which presently account for approximately 65% of total stock in the sector. Big box retail developments account for the remaining 35% of total retail stock in the city. There are no retail parks or fashion outlets in Odessa, but several retail parks are scheduled for delivery in the city by 2017. The 65,000 sq m (GLA) retail and leisure centre Riviera Shopping City is the largest and most notable retail scheme in Odessa, which was developed by the LSE-listed company Argo Real Estate Opportunities Fund during 2009. The scheme is anchored by Auchan and OBI, while its gallery benefits from the presence of majority of quality retail brands operating in the city. Furthermore, despite after-effects of economic crisis, the opening of Riviera Shopping City triggered many new market entries in Odessa, including (but not limited to) real,- and later Auchan, OBI, IMAX, Inditex Group, Marks&Spencer, New Yorker, LPP (House, Cropp Town, Reserved). As of October 2013, there was over 270,000 sq m (GLA) retail space planned for delivery until late 2017. Out of this pipeline stock in the sector, DTZ projects that during the period from November 2013 through to late 2015 new supply in the retail property sector in Odessa will amount to around 87,000 sq m (GLA) formed by City Centre II, Zebra, Atrium and Equator in northern Kotovskyi neighbourhood, as well as extension to City Centre I. Other major schemes planned for delivery by end of 2017 in Odessa include the retail and leisure centre Odessa City on Generala Petrova Street developed by Amstor, Europort Retail Park by the Israeli company Europort, Odessa Mall by Arricano Development, as well as Retail Park Odessa Nord in the northern residential neighbourhood of the city. High street retailing is well-developed in Odessa due to the urban structure of the city and its high popularity among the tourists. Odessa, together with Donetsk, is considered to be the second after Kyiv most attractive destination to enter for majority of retailers in all pricing categories. Demand remains very strong for quality retail space both in high street locations and multi-tenant retail centres across the city. Rents In Odessa high street retail rents are higher than average rents in multi-tenant retail centres, mostly due to the urban structure of the city with many tourist attractions in its central part, developed nature of street retailing, shopping habits of local inhabitants and high tourist flows, as well as lack of quality retail schemes in the non-central areas of the city. Prime high street retail rents in Odessa amount to $70-100 per sq m per month, with the highest rents typically achieved for quality retail premises with the frontage to Derybasivska, Rishelyevska and Yekaterynynska Streets. In the prime multi-tenant retail centres in Odessa, net monthly retail rents vary in the range of $50-90 per sq m for standard units of area 100-250 sq m.

Odesa Riviera Shopping City Shopping and Entertainment centre Location and description DTZ involvement Developer After four years of successful operations, Riviera Shopping City is not only considered the largest shopping and entertainment centre in the southern region of Ukraine, combining more than 250 popular Ukrainian and international brands, but also an integral part of social and cultural life in the region, seeking opportunities to support the development of modern culture and growth of the new generation. DTZ was involved from initial concept development, as exclusive leasing agents and, now as exclusive centre managers. Argo Real Estate Opportunities Fund Delivery 2009 GBA GLA 80 000 sq m 63 000 sq m Levels 2 Parking Brands Anchors 2 200 spaces Zara, Bershka, Stradivarius, Pull & Bear, Mango, Reserved, Marks & Spencer, Benetton, Intertop, Brocard, Monton, House, Adidas, Reebok,Geox, New Yorker, OYSHO, Yamamay, U.S. Polo Ass., Lee/Wrangler etc Auchan, OBI, Comfy, Leopark, Jysk, cinema

Odessa City Shopping and Entertainment centre Location and description DTZ involvement Developer The project is located on Generala Petrova Street in Malinovsky district of Odessa, close to one of the largest residential districts of Primorsky and Kievsky. DTZ was commissioned by the developer to provide development consultancy and exclusive leasing services for the development Amstor LLC Delivery 2015 GBA GLA 72 000 sq m 59 000 sq m Levels 2 Parking Anchors 1 500 spaces Amstor supermarket, DIY, electronics, cinema, children entertainment center, furniture store

Lviv Population 755 600 inhabitants Major multi-tenant retail schemes in Lviv: existing and in pipeline until 2016 Name Delivery Status Size (sq m) Developer Major brands /anchors 1. King Cross Leopolis 2008 / 2010 (in phases) 2. Leopolis 2014-2015 3. Forum Lviv 2015 Operating 52 700 Under Construction Under Construction King Cross Group 47 500 Phoenix Capital 36 000 Multi Development Auchan, Praktiker, Foxtrot, Inditex Group brands, LPP brands, Antoshka, Mothercare, Planeta Kino with IMAX, Leopark (kid s play), others Food hypermarket, electronic appliances store, cinema (7 screens), bowling, kid s play, others Amstor, Comfy, LPP brands, Inditex Group brands, MTI brands, Melon Fashion Group brands, Sportmaster, Mango, Planeta Kino, Igroland, others

Supply & Demand Lviv is an important economic, cultural, academic and transportation centre of Ukraine with total official population of around 760 thousand inhabitants. It is the largest city in Western Ukraine and, its historic and architectural heritage makes it a popular tourist destination. Lviv also hosted the matches of EURO 2012 Football Championship together with Kyiv, Donetsk and Kharkiv, as well as four Polish cities. Total modern retail stock in Lviv was estimated at over 205,500 sq m in October 2013, or 272 sq m (GLA) of modern retail stock per 1,000 inhabitants. The modern retail stock in Lviv has been dominated by multi-tenant retail centres and shopping malls, which account for almost 74% of total stock in the sector. Big box retail developments, comprised of the DIY-stores Epicentre and Nova Liniya, and two outlets Metro Cash&Carry, account for the remaining 26% of total retail stock in the city. There are no retail parks or fashion outlets in Lviv. Forum Lviv Shopping and Entertainment centre In addition, several small-format retail centres operate in city centre and other areas of Lviv. DTZ estimates that present lettable area of these properties amounts to approximately 33,600 sq m (GLA). As of October 2013, there was over 137,000 sq m (GLA) modern retail space planned for delivery in Lviv during the period from November 2013 through until late 2017, an increase on current stock by around 53%. However, delivery of several sizeable pipeline schemes may be postponed to later periods. High street retailing is well-developed in Lviv due to the urban structure of the city and high tourist flows in its central part. DTZ believes that the highest potential for retailers in Lviv exists in low, lower middle and middle price segments. Occupiers demand remains considerable for quality retail space both in high street locations and quality retail centres in the city. Rents In Lviv high street retail rents were historically higher than average rents in multi-tenant retail centres, mostly due to the urban structure of the city with many tourist attractions in its central part, developed nature of street retailing, shopping habits of local inhabitants and high tourist flows, as well as lack of quality retail schemes in the non-central areas of the city. Location and description DTZ involvement Developer Architect Forum Lviv Shopping and Entertainment centre can be considered a significant success case for a whole complex of services by several DTZ departments. The 69 000 sq m shopping and entertainment centre, located in central Lviv, is scheduled to open in early 2015. 115 Leading Ukrainian and international brands will lease retail space in this complex. Following the brokering of a JV agreement on behalf of local developer Galereya Centre and Multi Development, an international developer with wide experience in development of shopping centres throughout Europe, DTZ are appointed as a co-exclusive leasing agent for this centrally located scheme. In early 2013 DTZ brokered the entry of a third partner into the J.V. BudHouse Group. Multi Development Ukraine T + T Design However, after commencement of the leasing campaign in the retail and leisure centre Forum Lviv, which is presently under construction in the central area of Lviv, the correlation between prime high street rents and shopping mall rents in the city significantly converged. Delivery Q1 2015 Project Status Under construction GBA 69 000 sq m As of October 2013, prime high street retail rents in Lviv amounted to $60-90 per sq m per month, with the highest rents typically achieved for quality retail premises located along Tarasa Shevchenka and Svobody Avenues, and on Rynok Square. In the best multi-tenant retail centres in Lviv, such as Forum Lviv, net monthly retail rents vary in the range of $50-85 per sq m for standard units of 100-250 sq m. GLA Levels Parking Anchors 36 000 sq m 4 (including 1 underground parking level) 620 spaces Amstor supermarket, Comfy, Inditex brands, LPP brands, Teddy Group brands, Igroland, Planeta Kino cinema

Kharkiv Population 1 442 600 inhabitants Major multi-tenant retail schemes in Kharkiv: existing and in pipeline until 2016 Project Delivery Status 1. Forum Kharkiv 2015 / 2017 (in phases) Size (sq m) Developer Planned 87 000 Multi Development 2. Cosmo Mall 2016 Planned 73 000 EASTGATE DEVELOPMENT 3. Magellan 2011/2012/2014 (in phases) Operating (phase 3 under construction) 62 000 Kray Property 4. Levada Mall 2015-2016 Planned 60 000 EASTGATE DEVELOPMENT 5. Karavan 2006/2007/2008 (in phases) Operating 57 050 6. Dafi 2008 Operating 56 070 Dafi 7. Nikolskyi 2015 8. French Boulevard 2006 / 2013 (in phases) Under construction 42 000 Karavan Group / CDA Real Estate BUD HOUSE GROUP Operating 38 000 Aksioma 9. Forum Artem 2015 Planned 33 500 Multi Development Major brands /anchors Retail park, as well as shopping centre based on electronic appliances store, sports supermarket, retail gallery, leisure area and eateries Food hypermarket, electronic appliances store, sports supermarket, retail gallery, leisure area, eateries Hypermarket Krayina, Argo brands, LPP brands, Adidas / Reebok, Megasport, leisure area (planned) Food hypermarket, electronic appliances store, sports supermarket, retail gallery, leisure area, eateries Hypermarket Karavan, furniture store Karavan- Mebli, MD Group brands, MTI brands, Brocard, Budynok Igrashok, Mothercare, M&S, SMYK, LPP brands, Igroland, ice-rink, others Hypermakret Fozzy, OBI, Comfy, Inditex brands, Argo brands, MTI brands, L Etoile, Kronverk Cinema, Ice Hall, kid s play, others Food supermarket, electronic appliances store, sports supermarket, retail gallery, fitness centre, cinema, kid s play, eateries Silpo, Comfy, Megasport, Milavitsa, Planeta Kino, ice-rink, kid s play, others Food hypermarket, DIY-store, other big box retailers

Supply & Demand Kharkiv is the second largest city in Ukraine with over 1.4 million total population plus thousands more commuting to the city due to many higher educational establishments located here. In terms of economic base, Kharkiv used to rely heavily on industrial sector, particularly machine building, and is presently in transition. The city hosted matches of EURO 2012 Football Championship. Total modern retail stock in Kharkiv was estimated at around 407,150 sq m in October 2013, or over 282 sq m (GLA) of modern retail stock per 1,000 inhabitants, which reflects one of the lowest retail saturation levels compared to other major cities of Ukraine. The modern retail stock in Kharkiv has been dominated by multi-tenant retail centres and shopping malls, which account for approximately 70% of total stock in the sector. Big box retail developments account for the remaining 30% of total retail stock in the city. There are no true retail parks or fashion outlets in the city. Rents In Kharkiv high street retail rents currently tend to exceed average rents in multi-tenant retail centres, mostly due to the developed nature of street retailing in Sumska Street within the boundaries of the administrative centre, and lack of quality retail stock within shopping malls and retail centres in the city. Prime high street monthly rents in Kharkiv presently vary in the range of $50-80 per sq m, with the highest rents achieved for properties located on Rozy Luxembourg and Konstytutsiyi Squares, and those having frontage to Sumska Street. In the prime multi-tenant retail centres in the city, net monthly retail rents vary in the range of $45-70 per sq m for standard units of area 100-250 sq m. As of October 2013, there was over 292,100 sq m (GLA) retail space planned for delivery during the period through to 2017. This new supply will increase current retail stock by almost 72%, and will bring differing dynamics to the local market, remaining generally static since 2008 (despite the significant number of large-scale development projects in pipeline). Major schemes planned for delivery until 2017 in Kharkiv include the central retail and leisure centre Nikolskyi by Bud House Group, as well as Levada Mall and Cosmo Mall by the Kharkiv-based development company Eastgate Development. The international firm Multi Development also plans to deliver two sizeable retail schemes in the city, i.e. Forum Kharkiv and Forum Artem. Though not being a priority destination for expansion, Kharkiv is considered a first-tier city to enter for majority of retailers in Ukraine. Occupier demand remains significant for quality retail space both in high street locations and quality multi-tenant retail developments in Kharkiv. DTZ believes that, due to the city s economic base, the highest potential for retailers in Kharkiv exists in low, lower middle and middle price segments. The retail market in Kharkiv is strongly influenced by the large-scale covered market Barabashovo, which extends to around 75 hectare and is a popular retail destination not only among local population, but also visitors from Kharkiv region and other regions of Ukraine.

Kharkiv Cosmo Mall Shopping and Entertainment centre Location and description Developer Architect Cosmo Mall Shopping and Leisure centre will be located in a densely populated and rapidly growing residential area in Kharkiv, having perfect transport and visual accessibility. EASTGATE DEVELOPMENT Chapman Taylor Delivery Q2 2016 Project Status General Planning Stage GBA 96 000 sq m (including Hypermarket) GLA 73 000 sq m (including Hypermarket) Levels 3 Parking 1 400 parking spaces Anchors Food hypermarket, cinema, electronics, sport goods, entertainment centre

Levada Mall Shopping and Entertainment centre Location and description Developer Architect Levada Mall is located near the central part of Kharkiv - the second largest city of Ukraine. EASTGATE DEVELOPMENT Mir LLC Delivery Q4 2015 Project Status GBA GLA General Planning Stage 85 000 sq m 60 000 sq m Levels 3 Parking Anchors 1 350 spaces Food hypermarket, cinema, bowling, skate ring, electronics, children entertainment center

Donetsk Population 963 400 inhabitants plus 390 700 inhabitants in the neighboring Makiivka Major multi-tenant retail schemes in Donetsk: existing and in pipeline until 2016 Project Delivery Status 1. Rose Park 2. Donetsk City 2008 / 2014 (in phases) 2006 / 2009 / 2011 (in phases) Under construction (phase 1 operates) Size (sq m) 48 000 Developer Immochan Ukraine Operating 43 600 Domus 3. NORD Mall 2016 Planned 30 000 local developer 4. Makiivka Retail Park 2006/2007 (in phases) Major brands /anchors Auchan, Eldorado, Sportmaster, LPP brands, Planeta Kino with IMAX (9 screens) Varus, Inditex brands, Marks&Spencer, Bonjour, L Etoile, Multiplex cinema (8 screens), kid s play, others Food supermarket, electronic appliances store, cinema (6 screens), kid s play, others Operating 27 300 Amstor Amstor, Praktiker, Comfy, BRW, Jysk 5. Décor Donbass 2008 Operating 23 500 Décor Service 6. Belyi Lebed 2004 (1965) (reconstruction) Operating 20 000 local developer Velyka Kyshenya, Polyana, Mothercare, Brocard, bowling, amusement arcade, others Boom, Foxtrot, Megasport, Mosaic, Monton, Plastilin, kid s play

Supply & Demand Donetsk with an official population around 1 million inhabitants is one of the major coal-mining and industrial centres of Ukraine, as well as the regional and administrative centre of the Donbas river basin, forming the heavy industrial heartland of the country. Cumulative modern retail stock in Donetsk and its satellite city Makiivka was estimated at around 365,800 sq m (GLA) in October 2013, or 379 sq m of modern retail stock per 1,000 inhabitants. This figure accounts for all major retail developments in the city of or over 5,000 sq m(gla), and includes approximately 157,300 sq m of big box developments. The modern retail stock in Donetsk has been dominated by multi-tenant retail centres and shopping malls, which account for around 57% of total stock, whilst big box retail developments for 36%. The remaining 7% of total modern retail stock is formed by a retail park in the city of Makiivka, which is anchored by the food supermarket Amstor and the DIY-store Praktiker. In addition, over a dozen small-format retail centres operate in the city centre and other areas of Donetsk. DTZ estimates that present lettable area of these properties amounts to approximately 40,000 sq m (GLA) As of October 2013, there was around 220,500 sq m (GLA) modern retail space planned for delivery in Donetsk until late 2017, an increase on current stock by over 52%. However, delivery of several sizeable schemes is likely to be postponed to later periods. High street retailing is developed in Donetsk, with the major existing shopping mall Donetsk-City located on the central Artema Street. Donetsk, as one of the most affluent cities in Ukraine, is regarded to share with Odessa the position of the second after Kyiv most attractive destination to enter for a majority of retailers, operating in all pricing categories. However, the deficit of quality retail properties in Donetsk remains one of major obstacles for retailers penetration of the market. Many quality retailers entered the local market together with the delivery of the retail and leisure centre Donetsk-City, and more will come with the planned opening of the shopping mall Rose Park in Makiivka in 2014. Rents NORD Mall Shopping and Entertainment Centre Location DTZ Involvement Developer Architect Planned delivery Project Status Located in the southern part of Donetsk, in one of its most densely populated districts, the scheme is easily accessible from the city centre and well-serviced by public transport, providing convenient access to all areas of the city. The scheme benefits from excellent visibility from Leninskiy Avenue with a 149-metre frontage along it. DTZ has been involved in the project as consultant and exclusive leasing agent. Public joint-stock company Nord Chapman Taylor Ukraine 2016 Planning stage Out of 6 major cities covered by this research, Donetsk is the only city with average rents in prime multi-tenant retail centres exceeding high street retail rents. This trend has been attributed to Donetsk-City, which falls in the prime central high street location and is commanding the highest retail rents in the city. Prime high street retail rents in Donetsk amount to $40-90 per sq m per month, with the highest rents typically achieved for quality retail premises located around Lenina Square and along Artema Street. In the multi-tenant retail centres in Donetsk, prime net monthly retail rents vary in the range of $60-100 per sq m for standard units of area 100-250 sq m. GBA GLA No. of retail and leisure floors Parking Anchors 67 700 sq m 30 000 sq m 3 500 car parking places Food supermarket, electronic appliances store, sports supermarket, home interior and furniture store, entertainment area (cinema, kid s play, bowling / billiards), eateries

Dnipropetrovsk Population 992 900 inhabitants Major multi-tenant retail schemes in Dnipropetrovsk: existing and in pipeline until 2016 Name Delivery Status 1. Karavan 2. Most City Centre 2008 / 2009 (in 3 phases) Operating (phase 3 to become fully operational in Q1 2014) Size (sq m) 76 200 Developer Karavan Group / CDA Real Estate 2006 Operating 25 300 Alef Estate 3. Apollo 2009 Operating 20 000 UMK 4. Passage 2011 Operating 13 000 Akselrod Estate Major brands /anchors Hypermarket Karavan, furniture store Karavan- Mebli, Oldi, Eldorado, Brocard, Adidas, Intertop, Plato, Centro, Oodgi, O stin, ice-rink, Multiplex Varus, Comfy, Inditex brands, MTI brands, Argo brands, cinema Most-Kino, Igroland, eateries Varus, Comfy, Antoshka, Plato, Centro, Oodji, fitness centre GAP, MTI brands, MD Group brands, M&S, Centro, Plato, eateries

Supply & Demand Total modern retail stock in Dnipropetrovsk, the third largest city in Ukraine, was estimated at over 390,000 sq m in October 2013, or 393 sq m (GLA) of modern retail stock per 1,000 inhabitants. The modern retail stock in Dnipropetrovsk has been dominated by multi-tenant retail centres and shopping malls, which account for approximately 72% of total stock in the sector. Big box retail developments account for the remaining 28% of total retail stock in the city. There are no retail parks or fashion outlets in the city. There were no major retail schemes delivered in Dnipropetrovsk in 2013. Though none of the retail and leisure centres is scheduled for delivery in 2014, the company CDA Real Estate (part of DCH) plans to open for visitors the third phase of the retail and leisure centre Karavan, which was delivered in 2009. Rents In Dnipropetrovsk high street retail rents historically tended to exceed average rents in multi-tenant retail centres, mostly due to the developed nature of street retailing along Karl Marx Avenue within the boundaries of the administrative centre, shopping habits of local inhabitants and lack of quality retail schemes in the non-central areas of the city. However, delivery of the retail centre Passage in 2011 altered this correlation, as prime high street and shopping mall rents in the city converged. Prime high street monthly rents in Dnipropetrovsk presently vary in the range of $60-90 per sq m, with the highest rents achieved for properties along Karl Marx Avenue and Lenin Square. Similar prime net monthly retail rents have registered in the retail centres in the city for standard units of area 100-250 sq m. As of October 2013, there was around 234,300 sq m (GLA) retail space planned for delivery in 2015-2017. This new supply will increase current retail stock by over 60%, and may bring some differing dynamics to the local market, which has been remaining generally unchanged since 2011. Dnipropetrovsk is considered a first-tier city to enter for a majority of retailers, which are either present or considering expansion to Ukraine. Demand remains strong for quality retail space both in high street locations and multi-tenant retail centres of the city. In DTZ s opinion, the high attractiveness of Dnipropetrovsk is related to a combination of such factors as large population, relatively stable and diversified economic base, availability of critical mass of the retail schemes of decent quality in the city and developed high street retailing. DTZ believes that the highest potential for retailers in Dnipropetrovsk exists in low, lower middle and premium price segments.

Ivano-Frankivsk Population 243 700 inhabitants Major multi-tenant retail schemes in Ivano-Frankivsk: existing and in pipeline until 2016 Name Delivery Status 1. Veles 2012 2. Stanislav 2015 Operating (expansion planned) Under construction (45% completed) Size (sq m) Developer 16 000 local developer 15 500 local developer 3. Arsen 2006 Operating 12 000 Intermarket 4. Velmart 2010 / 2017 Operating (phase 2 planned) 5. Panorama Plaza 2004 Operating 7 100 local developer Major brands /anchors Kolibris food supermarket, SHOK electronic appliances store, Tyhres, Watsons, CentrObuv, other local brands Food supermarket, electronic appliances store, sports supermarket, cinema (5 screens), others Arsen, Eldorado, Фокстрот, Intertop, Adidas, BRW,Top Secret, Kira Plastinina, Junker, Wojas, Luciano Carvari, Colin s, others 7 800* VK Development Velmart, Adidas discount, others Silpo, Brocard, furniture shops arcade, bowling, billiards, night club, others * Once extended, gross leasable area of shopping mall Equator is planned to amount to around 32,600 sq m (including phase 1).

Supply & Demand Ivano-Frankivsk with an official population around 250,000 inhabitants is the regional and administrative centre of Ivano-Frankivsk oblast in Western Ukraine. The city is located close to the Carpathian mountains, in proximity to numerous resorts, including Bukovel, the major ski resort in the country. According to DTZ, the retail property market in Ivano-Frankivsk is highly fragmented and immature compared to major cities of Ukraine. Markets and small-format retail centres, occupied by local retailers, remain popular shopping destinations among the city inhabitants. Cumulative modern retail stock in Ivano-Frankivsk was estimated at around 81,400 sq m (GLA) in October 2013, or 333 sq m of modern retail stock per 1,000 inhabitants. This figure accounts for all major retail developments in the city of or over 5,000 sq m (GLA), and includes approximately 26,500 sq m of big box developments. In Ivano-Frankivsk there are no modern quality shopping malls with attractive tenant-mix and of gross leasable area over 10,000 sq m. The modern retail stock in Ivano-Frankivsk has been dominated by multitenant retail centres and shopping malls, which account for around 67% of total stock, whilst big box retail development, comprised of the DIY-store Epicentre and Metro Cash&Carry, for the remaining 33%. In addition, many small-format retail centres operate in city centre and other areas of Ivano-Frankivsk. DTZ estimates that cumulative area of these properties, predominantly of very low quality, presently amounts to approximately 41,600 sq m (GLA). As of October 2013, around 31,000 sq m (GLA) modern retail space was planned for delivery in Ivano-Frankivsk until late 2017, an increase on current stock by around 38%. There were only two retail schemes in pipeline, i.e. the centrally located retail and leisure centre Stanislav, and Equator planned to be developed in the remote part of the city via extension of the existing Velmart. The likelihood of delivery of the latter scheme by 2017 remains very low. DTZ noticed that quality chain retailers and leisure operators in Ukraine are generally interested to occupy space both in high street locations in Ivano-Frankivsk, as well as in quality and well-conceived multi-tenanted retail developments to appear in the city. Stanislav Shopping and Entertainment centre Location DTZ s involvement Developer The scheme benefits from the unique core city centre location in Ivano-Frankivsk. It is situated on Andriy Melnyk Street in immediate proximity to the central pedestrian zone and Nezalezhnosti Street, which is major central street in the city and important commuting route. The property is surrounded by prime multi-family residential buildings and located in front of the Memorial Park. DTZ has been involved in the project as consultant on its concept revision and optimisation, as well as exclusive leasing agent. OJSC Energetychni Tekhnologii We believe that, due to low market saturation, poor quality of existing retail stock and weak current competition on the retail market in Ivano-Frankivsk, the city has considerable potential for retailers and developers, particularly in low, middle minus and middle price segments. Rents In Ivano-Frankivsk high street retail rents are higher than average rents in multi-tenant retail centres, due to the absence of quality modern retail schemes in the city, as well as urban structure of the city, shopping habits of local inhabitants and considerable tourist flows in the city centre. Prime high street retail rents in Ivano-Frankivsk amount to $20-50 per sq m per month. In the small-format multi-tenant retail centres, which are located in the downtown, asking base monthly rents vary in the range of $15-25 per sq m. In the few, mostly poor quality first-generation, multi-tenant retail centres in Ivano-Frankivsk, prime net monthly retail rents vary in the range of $15-30 per sq m for standard units of area 100-250 sq m. Planned delivery Project status GBA GLA No. of retail and leisure floors Parking Anchors 2015 45% completed 20 100 sq m 15 500 sq m 2-4 150 car parking places Food supermarket, electronic appliances store, sports supermarket, entertainment area (cinema, kid s play, billiards), restaurants and food court

Lease terms and conditions in the quality multi-tenant retail centres in Ukraine Lease duration 3-5 years for standard retail units of 50-250 sq m; 7-10 years for semi-anchors (500-1,000 sq m) and 10-15 years for anchor tenants plus a priority right to renew the lease. Rent payment Indexation Rent Service charge Marketing charge Fit-out of retail units Guarantee Usually pegged to the US dollar or Euro, but paid in the Ukrainian hryvnya. Annually, by change in CPI in the United States published by the US Department of Labour, by change of Euro CPI published by Eurostat or by change in CPI in Ukraine published by the State Statistics Committee. Fixed, an additional turnover rent has now become a common practice applied in the new highquality retail developments (e.g. Riviera Shopping City, Sky Mall, Forum Lviv, King Cross Leopolis, Happy Mall, and others). USD 2-8 per sq m per month in addition to utility costs, depending on quality of a retail development. USD 2-5 per sq m per month, depending on quality of a retail development. Shell & core. Cost contribution for partial fit-out or turn-key condition in sometimes provided to anchor tenants. The form of cash deposit or bank guarantee in the amount from 2 to 6 months of lease period has been common. Parent company guarantee is rarely applied. Definitions Retail stock - Individual developments or stand-alone retail units with a gross lettable area exceeding 5,000 sq m. Small retail format - retail scheme delivered to the market after 1990 or extensively upgraded, with a Gross Leasable Area (GLA) of less than 5,000 sqm, with 5 or more retail units. Hypermarket - Store selling food or food plus non-food items having a gross lettable area (GLA) of at least 5,000 sq m. Stand-alone hypermarkets may include some kiosk or in-line units in front of the check-out areas. Fashion (factory) outlet - Shop or group of shops, usually in an out-of-centre location, specialised in selling end-of-line and, occasionally, damaged goods at permanently discounted prices. Retail park - An out of town retail development with multiple retailers operating typically from individual units in large area format. High street - The most important shopping streets in town and city centres having the highest concentration of retailers. Prime retail rent - The attainable average prime rent that could be expected for a retail unit of size in the range of 100-200 sq m located along the high street (i.e. prime high street rent) or in the prime retail scheme (i.e. prime shopping centre rent). The rent is given as a base rent, i.e. no service charge and tax is included. Frontage zoning is not adopted in Ukraine.

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Nick Cotton FRICS Managing Director DTZ Ukraine DTZ Tel.: +38 044 220 30 60 Fax: +38 044 220 30 61 nick.cotton@dtz.kiev.ua Nataliya Mykolaychuk Director Retail Agency and Consultancy DTZ Tel.: +38 044 220 30 60 Mobile: +38 095 283 2830 Fax: +38 044 220 30 61 nataliya.mykolaychuk@dtz.kiev.ua Marta Kostiuk MScRealEst Director, Research and Development Consultancy DTZ Tel.: +38 044 220 30 60 Mobile: +38 050 371 27 05 Fax: +38 044 220 30 61 marta.kostiuk@dtz.kiev.ua 33V Horkoho Street, 3 rd floor, Maxim BC, 03150 Kyiv, Ukraine Phone +38 044 220 30 60 Fax +38 044 220 30 61 Email info@dtz.kiev.ua www.dtz.com Information contained in this brochure should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice. Whilst facts have been rigorously checked, DTZ can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to DTZ.