Lounais-Suomen RakennuspäiväKokemuksia & näkemyksiä Turun kiinteistösijoitusmarkkinoista ja vähän muutakin

10.2.2017

Kalle Myllymäki

Stockholm

Sweden

Helsinki

Finland

Helsinki

Finland

Helsinki

Finland

Espoo

Finland

Stockholm

Sweden

Turku

Finland

Helsinki

Finland

Copenhagen

Denmark

Esbjerg

Denmark

Copenhagen

Denmark

Stockholm

Sweden

Copenhagen

Denmark

Helsinki

Finland

Copenhagen

Denmark

STRICTLY CONFIDENTIAL

CapMan in Brief

2 www.capman.com

A forerunner in private equity

years of experience in Finland, the Nordics and

Russia25+investments200core investment areas5

120 LPs as customers

.

100 portfolio companies and real estate assets

STRICTLY CONFIDENTIAL

Overview of CapMan’s Investment and Service Operations

3

Leading Nordic real

estate investor with €1.5

bn in assets under

management

One of the leading mid-sized

buyout firms in Finland and

Sweden

CapMan Credit –

Private debt

investments in small

and mid-sized

Nordic companies

Leading growth

investor in Russia

Fund management

Growing services businessCapMan’s capital under

management

€2.8 bn

Team of 100 private equity

professionals

Growth Equity

Minority investments in Nordic

unlisted growth companies

www.capman.com

STRICTLY CONFIDENTIAL4

€1.2 Billion of Equity Raised Since 2005

2005 2006 2007 2008 … 2011 2012 2013 2014 2015 2016

DEVELOPMENT OF CAPMAN REAL ESTATE

Nordic Market Overview

January 2017

STRICTLY CONFIDENTIAL

The Nordics Overview

6

Norway

Population 5,200,000

Capital Oslo

Oslo population 1,200,000

GDP per capita, USD (Global rank)* 71,497 (3)

Annual GDP growth 1995-2015 2.2%

Unemployment** 4.9%

Denmark

Population 5,600,000

Capital Copenhagen

Copenhagen population 1,300,000

GDP per capita, USD (Global rank)* 53,243 (9)

Annual GDP growth 1995-2015 1.3%

Unemployment** 6.3%

Finland

Population 5,500,000

Capital Helsinki

Helsinki population 1,100,000

GDP per capita, USD (Global rank)* 43,492 (16)

Annual GDP growth 1995-2015 2.2%

Unemployment** 8.6%

Sweden

Population 10,000,000

Capital Stockholm

Stockholm population 2,200,000

GDP per capita, USD (Global rank)* 51,604 (11)

Annual GDP growth 1995-2015 2.5%

Unemployment** 6.9%

* IMF November 2016

** Eurostat September 2016

STRICTLY CONFIDENTIAL

Nordic Products

7

STRICTLY CONFIDENTIAL

GDP Growth (% p.a.), the Nordics vs Eurozone

8

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E

Sweden Finland Denmark Norway Eurozone

The Nordics have during the last decade showed a strong growth and outperformed the growth in Eurozone

Source: OECD

STRICTLY CONFIDENTIAL

Unemployment (%) the Nordics vs EU-average

9

Source: Eurostat

All Nordic countries have a strong labour market and have continuously showed a lower unemployment rate than the EU-

average

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Sweden Finland Denmark Norway EU-28

STRICTLY CONFIDENTIAL

Property Market Overview

10

Norway

Office stock Oslo CBD / Greater Oslo, sqm 800,000 / 8,400,000

Office vacancy Oslo CBD / Greater Oslo 6.0% / 7.5%

Prime office yields CBD / Suburban 4.00% / 5.00%

Investment volume 2016 (billion Euro) 7.3

Denmark

Office stock Cph CBD / Greater Cph, sqm 5,700,000 / 11,800,000

Office vacancy Cph CBD / Greater Cph 7.7% / 7.7%

Prime office yields CBD / Suburban 4.00% / 4.75%

Investment volume 2016 (billion Euro) 6.7

Finland

Office stock Helsinki CBD / Greater Helsinki, sqm 1,100,000 / 8,600,000

Office vacancy Helsinki CBD / Greater Helsinki 6.8% / 12.4%

Prime office yields CBD / Suburban 4.40% / 6.00%

Investment volume 2016 (billion Euro) 7.2

Sweden

Office stock Sthlm CBD / Greater Sthlm, sqm 1,800,000 / 11,600,000

Office vacancy Sthlm CBD / Greater Sthlm 3.8% / 8.1%

Prime office yields CBD / Suburban 3.75% / 5.00%

Investment volume 2016 (billion Euro) 22.2

Source: JLL Nordic City Report Autumn 2016,

Investment volume Pangea Property Partners

STRICTLY CONFIDENTIAL

Prime European Office Yields (%), H2 2016

11

Source: Cushman & Wakefield

13.25

10.509.75

8.008.008.007.257.007.007.007.006.806.75

5.505.255.004.904.804.754.404.254.154.003.903.753.703.603.503.253.203.15

0

2

4

6

8

10

12

14

STRICTLY CONFIDENTIAL

Nordic Property Market

12

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 2016

Prime Office Rents, EUR psm/yr

Sweden Denmark Finland Norway

Source: JLL, Catella and Cushman & Wakefield

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Prime Office Yields, %

Sweden Denmark Finland Norway

Turku Overview

February 2017

STRICTLY CONFIDENTIAL

Turku Property Market – Transaction Volume

14

Real Estate Transaction Volume

Source: KTI

STRICTLY CONFIDENTIAL

Turku Property Market – Transaction Volume in 2016

15

Sample transactions in 2016

• Nereis Business Garden

PEAB -> Local investor

• Former Kodin1 department store in Länsikeskus

n/a -> Local investor

• Retail centre Centrum

CapMan RE II Ky -> Nordea Life Insurance

• Pharmacity office asset in Kupittaa

Varma -> Turku Technology Properties

• High Tech Centre 3 in Kupittaa

Lunden Kiinteistöt Oy -> Turku Technology Properties

• Yliopistonkatu 14 in city centre

Sponda -> LähiTapiola

• Kivikukkaro retail asset

n/a -> Virtanen Yhtiöt and an undisclosed foreign

investor

• XXL retail box in Skanssi

Etera -> Aktia Henkivakuutus Oy, VR Eläkesäätiö ja

Rautuki-säätiö

Source: Catella, CapMan Real Estate

STRICTLY CONFIDENTIAL

Turku Property Market – Occupier Market

16 Source: Catella

STRICTLY CONFIDENTIAL

Turku Property Market – Occupier Market

17 Source: Catella

STRICTLY CONFIDENTIAL

Turku Property Market – Constrained Supply Pipeline

18

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Office Construction Activity in Turku

Started, sqm Completions, sqm

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Retail Construction Activity in Turku

Started, sqm Completions, sqm

Source: KTI