Europolis III

complete

EBRD together with the Sponsor to invest up to EUR 300 million in equity to create a regional portfolio of 15 to 20 property assets (‘Sub-Projects’) under the name of E3. E3 will seek long-term capital gains by investing in commercial real estate in Russia, Ukraine, Serbia, Montenegro, Bosnia-Herzegovina, Macedonia and Bulgaria. The investments will be for the purpose of developing, renovating, reconstructing, acquiring, owning/managing commercial real estate. The proposed project will promote the primary and secondary property markets across the Region by: Promotion of less developed primary property markets to improve supply of quality commercial space in these markets. Support the development of a more liquid secondary property market on a regional scale and primary markets in Ukraine and Russia and South-eastern Europe. A mature secondary market should eventually lead to the acceptance of local property as an asset class and the entrance of non-specialist investors seeking to diversify portfolios and encourage primary investors to move further east to the early and intermediate countries. Investkredit Bank AG, an Austrian commercial bank specialised in medium and long-term financing to corporate customers and public institutions. Investkredit Bank AG is 100% owned by Österreichische Volksbanken-AG (“OEVAG”), the central institution of Austrian credit cooperatives. Commitment of EUR 52.5 million in equity and quasi-equity instruments to participate with up to 35% in the First Closing of E3. Option to invest up additional EUR 52.5m at Second Closing of E3. Up to EUR 300 million in equity and quasi-equity investments, Capital for E3 investment programme will be raised in two stages: First Closing: EUR 150 million in 2006 Second Closing: EUR 150 million in 2007/8. The project was screened C/1. Europolis has been successfully implementing the formal environmental due diligence procedures based on EBRD’s Environmental Procedures for Property Funds and agreed with the Bank under the Europolis 1 and 2 transactions. This has involved Under E3, the Investment Programme Manager will continue to implement the environmental due diligence procedures in order to ensure that the E3 property developments and investment are undertaken with full respect of environmental issues including compliance, at minimum, with national environmental, health and safety standards and requirements, national public consultation requirements where the sub-project is located and implementation of good international practice applied by Western property developers as well as submission of an annual environmental report to the Bank. None. Europolis Real Estate Asset Management GmbH (“Europolis”) Kolingasse 12, 1090 Vienna, Austria Tel: +43 (1) 319 72 00 Fax: +43 (1) 319 72 00 - 10 Website: www.europolis.at