BUCHAREST
BRÂNCUSI
AIRPORT CITY
THE
PROJECT
The Airport is a greenfield private initiative but has the full
support of the Romanian Government through the Ministry of
Transport and general support for the infrastructure leading
to the site.It will be developed in the south of Bucharest on 800
hectares.
The Airport has been planned with several phases of
expansion in mind, which will provide resilience for the
future.

• Phase 1: 10-12 mil passengers;
• Phase 2: 20-25 mil passengers;
• Phase 3: 35-40 mil passengers .
  It is part of a larger concept for the development of a ‘Smart
  City’ incorporating all aspects of the current trend for
  Industry and technology Hubs to be developed around
  Airports.
  2019 ROMANIA PAX DISTRIBUTION
  Source Romanian CAA
  63%
  13%
  7%
  6%
  3% 2%
  2%2%1%
  Bucuresti OTOPENI CLUJ NAPOCA TIMISOARA IASI SIBIU
  CRAIOVA BACAU SUCEAVA ORADEA
  BUCHAREST TRAFFIC FORECAST
  (PAX)
  0
  5000000
  10000000
  15000000
  20000000
  25000000
  30000000
  2017
  2018
  2019
  2020
  2021
  2022
  2023
  2024
  2025
  2026
  2027
  2028
  2029
  2030
  2031
  2032
  2033
  2034
  2035
  2036
  2037
  2038
  2039
  OPT SDG
  Source PA Consulting – Nyras
  CORPORATE
  STATUS
  At present a new Special Purpose
  Development Company, South Development
  Group SA (SDG SA), has been formed with
  the initial shareholdings allocated to the
  promotors for the development of the
  project. All pre-development expenses to
  date were financed by the promotors.
  GOVERNMENT
  APPROVAL AND
  PARTICIPATION
  STATUS
  The Government has confirmed it is fully
  supporting this initiative (a
  Memorandum has been issued on the
  30th of July 2019) and have taken steps to
  provide funding for infrastructure
  improvements for the road and rail
  network to the South of Bucharest as the
  request of the Developers. In addition the
  Government will take a 5-10% equity
  stake in the development through the
  Ministry of Transport’s subsidiary
  Airport Company (CNAB).
  CIVIL
  AVIATION
  STATUS
  The project is established on the Civil
  Aviation Aeronautical map of Romania
  and the airspace corridors and cones
  are mapped. The registration process by
  the Romanian CAA and ICAO for the
  location is completed.
  Meteorological and obstacle studies are
  also completed.
  DESIGN
  STATUS
  A concept design has been
  completed and following this several
  meetings have taken place with
  stakeholders such as the main
  Airlines (Wizzair, Blueair, Ryanair,
  Turkish and Emirates Airlines as
  well as Deutsche Post/DHL,
  TNT/FedEx and other airport users.
  Their input and critiques have been
  considered and the design was
  developed accordingly to allow
  expansion resilience as well as
  future proofing using current and
  foreseen new technology.
  DESIGN
  STATUS
  We are partnering with the most experienced designers to
  create a new modern Airport for Bucharest. The target is to
  have the most technologically advanced Airport that will
  lead to best possible efficiency:
  ◦SDG – Client Management Team;
  ◦Scott Brownrigg – Airport Principal Architect;
  ◦Changi Airport si Surbana Jurong from Singapore – Airside
  Planned and Systems Integrator;
  ◦Royal Haskoning DHV – Project Managers;
  ◦Tractebel- MEP and Civils,
  ◦Thornton Tomasetti- Structural Engineers;
  ◦PA Nyras – Aviation Consultants;
  ◦Too Architects – General Masterplan for the Entire Project;
  ◦Airport Management – under discussion.
  STRATEGIC
  PARTNERS
  Operational and Investment
  Surbana Jurong – Singapore
  Changi Airport – Singapore
  Mitsubishi Corporation – Japan
  SIA Engineering – Singapore
  AIRBUS
  China State Construction Overseas Development Corp
  GMR Group – India
  Siemens A.G. – Germany
  Investment
  EIX – UK
  EBRD
  Individual Private Investors
  CARGO
  OPPORTUNITY
  Bucharest can become the major
  European South East Cargo Hub
  The principal users of the Cargo
  Hub would be the following:
  ◦ FedEx/TNT;
  ◦ DHL;
  ◦ CargoLUX;
  ◦ Other freight specialist
  airlines and forwarders;
  ◦ E-commerce forwarders
  such as:
  ◦ Amazon
  ◦ Alibaba
  CONNECTIVITY
  BY ROAD
  A new outer ring road for
  Bucharest has been
  commenced, connecting the
  highway to the West A1 with
  the one to Constanta in the
  East A2. Also the DN6 and
  DN5 will be upgraded from
  the site to the intersection
  with this outer ring. This will
  facilitate road access across
  Romania.
  CONNECTIVITY
  BY RAIL
  Upgrade the railway connection
  between Gara de Nord and Jilava
  Station.
  Extension of the metro line between
  Berceni and Jilava to provide
  intermodal transfer
  A Terminal station will be
  incorporated into the main Airport
  terminal but will also serve the
  surrounding Commercial and
  Industrial facilities.
  Travel time to the City by dedicated
  service will be approximately 15 – 20
  min.
  CONNECTIVITY
  BY RAIL
  Upgrade the railway connection
  between Gara de Nord and Jilava
  Station.
  Extension of the metro line between
  Berceni and Jilava to provide
  intermodal transfer
  A Terminal station will be
  incorporated into the main Airport
  terminal but will also serve the
  surrounding Commercial and
  Industrial facilities.
  Travel time to the City by dedicated
  service will be approximately 15 – 20
  min.
  THANK YOU

BUCHAREST
ROMANIA
EUROPEAN
LOGISTICS
PARK
PROJECT SYNOPSIS
2012-03-15
CONTENTS:
MACRO: INTRODUCTION 3
ROMANIA AT A GLANCE 4
TERRITORIAL MAP 5
WHY ROMANIA?
THE GROWTH OF CONSTANTA 6
ROAD AND RAIL LINKS 7
STRATEGIC INFRASTRUCTURE PROJECTS 8
MICRO: THE SITE 10
SITE IMAGES 13
LOCAL STRATEGIC ROUTES 14
SITE INFRASTRUCTURE 15
THE PROJECT: PROPOSED USES
WHY LOGISTICS-LED DEVELOPMENT? 16
CONTROLLED ENVIRONMENT STORAGE 18
LIGHT INDUSTRIAL 19
GAS AND FAST FOOD 20
BIG BOX RETAIL 21
MOTEL AND OFFICE 22
APPROACH
SITE ACCESS – GYRATORY 24
SUSTAINABILITY 25
CORPORATE AND FINANCIAL:
STATUS AND FUNDING MECHANISMS 26
(1) EU GRANT 27
(2) 67H SCHEME 30
BUSINESS PLAN 32
MANAGEMENT 34
EXEC SUMMARY: SYNOPSIS 40
BUCHAREST ROMANIA EUROPEAN LOGISTICS PARK
INTRODUCTION
European Logistics Park International
SRL, is a Romanian corporation (“ELP”)
established to develop a mixed use trade
park in Bucharest, Romania.
The associated corporate structure is
outlined diagramatically at page 33.
ELP has acquired approximately 23
hectares of land located on highway E70
in Romania, about 8 kilometres south
of the Bucharest Municipal district (the
“Site”).
ELP intends to purchase a minimum of 9
additional hectares of land contiguous to
the Site and generating an overall project
of between 32 and 67 Hectares.
ELP intends to develop the Site as a
mixed-use logistics/light industrial park
and retail centre. Profi ts will be generated
from the sale and lease of plots and
constructed facilities within the Site.
An independent feasibility study
commissioned from King Sturge outlines
a full range of market construction costs,
rental values, All Risk Yields (ARY), market
demand and trends and associated capital
values for their recommended use class
mix.
Under communist rule from 1946 to
1981, Romania is now experiencing
3
a rennaissance and represents an excellent
business opportunity following its accession into
the European Union in 2007.
It is subject to signifi cant inward investment and
has been identifi ed by a vast array of economic
and industry experts, as the strategic trading
location in Central Eastern Europe.
In addition, the EU has allocated €32 billion
in structure and cohesion funds to stimulate
continued economic growth via SME’s over the
fi rst 8 years after Accession. ELP have applied for
some of the funds and been awarded an €9.5M
non-refundable Grant for the fi rst phase .
ELP is managed by a motivated and experienced
development team, who have invested €10m of
Founders’ equity to date.
Excellent returns are projected, and there
remains strong market fundamentals for
distribution based activity.
4
ROMANIA AT A GLANCE:

• Romania has a population of 21.2M (2002
  census), 55% of which live in urban areas. It
  is divided into 41 counties grouped into 8
  Developing Regions.
• Land mass of 238,000km2, bordering Bulgaria
  to the south, Serbia and Hungary to the west,
  Moldova and Ukraine to north and east.
• Climate temperate, but with continental
  seasonal extremes, snow can disrupt
  construction Nov-Mar.
• Geographically diverse, with Carpathian
  mountains to the north giving way to river
  fl oodplains to the south exemplifi ed by the
  Danube Delta.
• Signifi cant wildlife including brown bears,
  wolves and lynx.
• Historically subject of territorial dispute
  between Ottoman and Russian empires, Romania
  has been an independent since 1878.
• Major port at Constanta on Black Sea, with
  exponential growth in trade volumes 2002-2006
  and predicted continued expansion.
• Capital Bucharest, population 1.95m, ‘Paris
  of the East’ during 1930’s, european tour
  destination, decadent cosmopolitan city in south
  east of land mass, circa 220km from black sea at
  Constanta.
• Communist rule 1945-1989, including
  Ceausescu’s notorious presidency from 1965
  until the revolution in 1989 from which point
  democratic rule established.
• Post revolution wholesale redistribution of land
  back to the populace but with poor cadastral
  mapping and identifi cation of ownerships.
• Very large wealth disparity between urban
  and rural populations, and below EU average
  living standards but increasing property and
  educational achievement.
• political stability and integrity has improved
  gradually since 2004.
• Accession into the EU in 2007 and has
  benefi tted from signifi cant inward migration of
  grant funding and external investment since that
  time.
• Year on year GDP growth averaged 6.3%
  over the 5 year period from 2003 to 2007 and
  outperforming many of the western european
  economies.
• The unemployment rate reduced gradually from
  7.4 to 4.4% across the same period.
• Lowest prime yield offi ce deal achieved in 2007
  at 5.6%, and largest single transaction at 120M
  EUR (America House in Bucharest).
• Economic fundamentals close to Maastrict
  criteria and committed adoption of Euro by 2014.
  -Net exporter of petrochemicals thanks to
  reserves of oil, gas and coal to the north and west
  of the country
  -Industrial sector dominated by car industry
  (renault/dachia) and associated automotive parts
  suppliers.
  -I.T. (Both outsourcing and hardware), fi nancial
  services, tourism and agriculture also key sectors.
  5
  TERRITORIAL MAP
  6
  WHY ROMANIA – GROWTH OF CONSTANTA; SHIFTING TRADE PATTERNS
  Source = dtz european logistics report 2008: the
  rise oif the balkans
  Constanta is a major international port and the
  largest within the Balkans region
  It handled approximately 50 million tonnes of
  cargo in 2006 and has the highest year on year
  growth rate of any port in western, central, or
  eastern europe over the period 2002-2006..
  Notwithstanding the global crisis, there is no sign
  of this trend abating.
  Our site is ideally located for onward
  transportation of goods via Giurgiu, the inland
  free zone just 40km south of ELP.
  7
  WHY ROMANIA – ROAD AND RAIL LINKS
  A highly strategic location due to its multimodal transport links:

1. To and from western europe to the west by
   road, rail or barge on the Danube.
2. From Greece, Turkey and Bulgaria by road from
   the south.
3. To Russia via Ukraine to the east and to central
   european countries Hungary, Poland, Czech
   Republic, Slovakia and Moldova.
4. Globally by sea from Constanta, including
   connection to western europe at Rotterdam and
   Hamburg as well as from China, (this route being
   much shorter to cee than the alternative ports in
   western europe).
   SOURCE = DTZ EUROPEAN LOGISTICS
   REPORT 2008: THE RISE OF THE BALKANS
   8
   WHY ROMANIA – STRATEGIC INFRASTRUCTURE PROJECTS
   Rail – located at intersection of some main
   european road and rail links:
5. Pan-European rail link route ix, with main stops
   at Helsinki (Finland) – Moscow (Russia) – Chisinau
   (Moldavia) – Bucharest (Romania) – Plodiv
   (Bulgaria).
6. Pan European railway route iv links Berlin –
   Prague – Budapest – Bucharest – Constanta.
   Plus major committed projects:
7. Pan European corridor no iv: Nadiac – Arad

• Timisoara – Deva – Sibiu – Pitesti – Bucaresti –
  Constanta.

1. Transylvania motorway: Bucaresti – Brasov –
   Targu Mures – Cluj Napoca – Oradea – Bors.
2. Danube inland priority axis.
   Bucharest is therefore a strategic multi-nodal
   location.
   9
   EUROPEAN LOGISTICS PARK – THE VISION
   A mixed use development of up to 450,000 sq m
   with a capital value in excess of €850M.
   10
   THE SITE
   32H HECTARE SITE.
   Current ownership 16H.
   25km from centre Bucharest.
   6km from new outer ringroad (under
   construction).
   On E70/DN5 – sole motorway linking Bulgaria,
   Turkey and Greece to Romania and central and
   western europe.
   40km from inland port of Giurgiu on Danube
   which links directly to Constanta to the east and
   western europe to the west.
   Major investment in Danube inland waterway by
   mainrom, israeli shipping group – Ikea now using
   barge link from Constanta to Giurgiu for all its
   containers.
   Multi-modal goods distribution, high growth
   location as predicted by research from King
   Sturge/JLL, DTZ, CBRE (full details available on
   request).
   E70/DN5
   Fig 1
   Proposed
   ring road
   Existing Ex
   ring road rin
   DN6
   see Fig 2
   The site
   Danube/Bulgarian border Da
   11
   Fig 2
   Section 88 residential
   project also sponsored
   by LaSalle Private Equity
   Group
   y
   Group
   Planned reinstatement
   of lakeland habitat
   Approximate location
   of planned new airport
   Adunatii Copaceni
   see Fig 3
   The site
   Line of new bypass
   completed during
   2009-10
   New airport announced 3km from site.
   Construction due to start 2012 and complete
   2014.
   New bypass around Adunatii Copaceni already
   under construction.
   A 75H residential/leisure parcel about 6km to the
   south east of the site has also been acquired for
   future development.
   Full details of this separate opportunity are
   available on request.
   THE SITE
   12
   THE SITE
   CURRENTLY ARABLE LAND.
   Flat and unpolluted with clean environmental
   record (full due dilligence from WSP available on
   request).
   Outline permitting in place (PUZ) for proposed
   mixed use development including logistics, light
   indiustrial, gas station, retail units and hotel to a
   maximum density of 60%.
   Detailed permitting (PAC) in place for the
   fi rst build phases and amounting to around
   43,000m2 of built form.
   Fig 3. ELP site
   A
   B
   C
   D
   13
   SITE IMAGES
   View A. Site panorama
   View B. A grid of unmade roads demarks the
   plot.
   View C. The E70 (DN5) dual
   carriageway was recently built
   with EU funding
   View D. High voltage power lines
   visible in the distance, some 200
   metres from the site.
   14
   LOCAL STRATEGIC ROUTES
   The proximity to the new planned airport just
   south of Adunati Copaceni makes this site the
   prime location for logistics in the whole of the
   region.
   Bucharest
   Possible site for
   new airport
   The site
   (ELP)
   25km to Bucharest centre
   42km to Giurgiu
   25k
   42km to Giurgiu
   Termination of 4
   lane highway
   Approximate line
   of new Bucharest
   ring-road
   roximate
   ew Bucha
   The proximity to DN5 (E70) a new, high quality
   dual carriageway from the inland port at Giurgiu,
   provides direct and uncongested access from the
   depot to the logistics park.
   15
   SITE INFRASTRUCTURE
   Calugareni approx 3km
   Adunatii Copaceni approx 1km Adunatii Cop
   E70/DN5 to Bucharest
   High voltage
   power lines
   High and medium voltage power lines run within
   200m of the site. An order has been placed for
   suffi cient power to service the fi rst build phases.
   Gas is available near Calugareni around 8km
   to the south. The fi rst phases will run on
   electricity and LPG. A new gas pipe is planned
   to run alongside DN5 and straight past the site.
   Wayleaves are being concluded by the regional
   energy company prior to implementation and
   mains gas is likely to be available for the later
   construction phases.
   Water is available by borehole, the water table in
   this area is approx 6-10m below surface level.
   Sewerage will be via treatment plant on site.
   Grey water recycling will be implemented to
   enhance sustainable credentials and a reservoir
   system will be installed to attenuate stormwater
   run-off into the river systems.
   All of the infrastructure related issues have been
   subjected to intensive professional scrutiny over
   the last two years, and servicing for ELP is already
   planned and costed in detail via approved
   suppliers.
   Concrete Plant Co
   16
   WHY LOGISTICS-LED DEVELOPMENT?
   THE IMPORTRANCE OF GIURGIU
   Freeport of Giurgiu acquired by Mainrom Line srl
   in 2007. JV between Romanian government and
   major international plc, which also has cargo/
   freight/shipping subsiduaries based out of israel.
   10,000 Containers shipped via the port in second
   half 2007, now closer to 40,000 interim target
   thanks to instruction from Ikea to handle all of
   their containers.
   Currently there are no logistics facilities at all
   along the E70 between the port and Bucharest.
   Bonded warehouse can be located on our site
   to assist with free transit of goods. Tax point
   advantages to customers make this highly
   desireable.
   No trucks allowed into Bucharest centre due
   to heavy congestion. Hence need for interim
   distribution hub allowing transfer from and into
   smaller trucks for onward transportation.
   Our site the superior logistics site, being the
   closest point to Bucharest via open, modern,
   four lane highway to the freezone.
3. The port is located on the border of Romania
   and Bulgaria, and as roads and infrastructure are
   developed, the port will serve all of Romania,
   Hungary, Poland, Slovakia, Bulgaria, Greece,
   Turkey, the Balkans and Central Eastern Europe.
4. Because of the rapidly increasing prices of
   ground transportation, congestion on transeuropean highways and green house gas
   emissions, the EU has designated the expansion
   and development of the danube river as a
   priority transportation route.
5. The Danube trends from Germany to Central
   Eastern Europe, the Black Sea and Russia. As
   such, Giurgiu will become one of the major ports
   and our site will become the major logistics
   site serving Bucharest and the port for all cargo
   transported north from the port.
6. Today it is faster and cheaper to ship
   containers unloaded at the major seaport of
   Constanta to Bucharest via the Danube to
   Giurgiu and via ground transportation (70 km)
   than directly via ground transportation from
   Constanta (220 km).
   IN ADDITION, THE ROAD LINKS TO TURKEY AND
   GREECE ALONE, MAKE THIS LOCATION VERY
   ATTRACTIVE AS AN IMPORT AND DISTRIBUTION
   CENTRE.
   In terms of competition,
7. Distribution centres to the north of the city
   have become sub-optimal given escalating land
   values and associated profi t available from churn
   into higher value uses.
8. Areas to the west and east, whilst viable road
   portals to their respective areas of Europe are
   subject to heavy congestion.
9. The western corridor on the A1 highway out
   of Bucharest is the current nexus for distribution,
   it will continue to be a major centre, but is
   currently suff ering from limited infrastructure
   (particularly power) – not a problem shared by
   ELP.elopment established in the bucharest area
   and projected to come on stream over the next
   5 years.
   17
   MASTERPLAN
   The currently envisaged medium term
   masterplan extends to about 67H.
   A step-by-step approach will be adopted,
   carefully integrating construction programme
   with take-up rates to ensure that exposures are
   managed at all stages.
   The following pages describe the proposed use
   class mix as well as the underlying assumptions
   behind the relative allocation of land.
   18
   CONTROLLED ENVIRONMENT STORAGE
   PHARMACEUTICALS
   A number of live enquiries from international
   manufacturers have circulated the market. Any
   such storage will require carefully stabilised
   internal conditions including dust fi ltration.
   There are no facilities specifi ed for such specialist
   storage, hence the opportunity at ELP.
   HAZARDOUS MATERIALS
   The same is true of hazardous materials (typically
   fertilizers to support the large Romanian
   agricultural industry and or low toxin industrial
   detergents). Storage of these substances requires
   special permits which have been investigated by
   our professional team and it is possible to satisfy
   such requirements at ELP.
   COOLED AND FROZEN STORAGE
   In addition to ambient warehousing, there is
   demonstrable potential to establish ELP as a
   specialist cooled and frozen storage distribution
   facility.
   Whilst there is available supply of ambient
   storage from current vacancy suffi cient to cover
   projected take-up for around 12months, none
   of this space is specifi ed for controlled internal
   environment (which is of course very client
   specifi c).
   Compared to the more mature logistics market
   in nearby Poland, and pro-rata to GDP, Romania
   would appear to be undersupplied by around
   400,000 sqm of warehouse space. The facilities
   that are available are of small scale and based at
   old platforms; they fail to comply with EU food
   standards regulations.
   19
   LIGHT INDUSTRIAL UNITS
   LIGHT INDUSTRY
   Romanian law required all factories and industrial
   complexes located within the city of bucharest to
   relocate out of the city by 2009, this deadline has
   been extended but the intent is still active.
   Most of these factories are operating out of
   older buildings which are ineffi cient. Land
   prices within the city reached levels of in excess
   of €1,500/m2 at the market peak and there is
   still a huge diff erential in values which acts as
   additional motivation for relocation.
   This means that the factory owners can sell their
   land within the city and realise very signifi cant
   profi ts, in excess of what funds would be
   necessary to rebuild factories outside of the city.
   Generally, the workers at these factories live
   in the south side of Bucharest. The centre and
   northern sections of the city have undergone
   rapid appreciation of prices and development of
   offi ces and upscale residential complexes.
   If the factories relocate to the south of the city,
   it will be easy for workers to travel to work as
   the new locations will be close to the workers’
   residences.
   Our site is the most economic and logical site for
   their relocation. (Less expensive development
   costs for the employers and convenient travel for
   the employees).
   20
   GAS STATION & FAST FOOD
   GAS STATION
   Given the high traffi c fl ow of both trucks and cars
   in and out of ELP, there is good logic for the early
   establishment of a gas station plus ancillary
   retail off erings.
   Negotiations are now onging with two oil
   companies regarding a turn-key land, design and
   build package leading to a 30 year Leasehold
   interest at a turnover rent. This will be a great
   anchor for ELP.
   The spatial planning also envisages a fast food
   outlet directly adjacent to the highway and
   ancillary to the gas station buildings. This is
   designed as a drive-through facility – a concept
   which is not yet well established in Romania, but
   is likely to be very popular on a busy arterial such
   as DN5/E70. Preliminary discussions are ongoing
   with two international brands in this regard.
   21
   BIG BOX RETAIL
   RETAIL/COMMERCIAL DEVELOPMENT
   In theory, there is a strong pipeline of retail
   development established in the Bucharest
   area. In fact, active permissions for ‘Shopping
   Malls’ represent a hangover from the real estate
   ‘bubble’ and far outstrip the likely demand or
   delivery over the next 5 years.
   However, analysis of proposed location reveals
   only limited competition for a more modest retail
   off ering in the sector south of the new ring road
   in the DN5/DN6 segment.
   Given the congested nature of the main arterials
   within the inner ring road surrounding Bucharest
   centre, we believe that a local centre for a food
   off ering, like Costcutter in the UK, could be
   supported.
   The Mega-Image supermarket that opened last
   year 7km north of ELP and servicing the new
   ‘Green City’ residential development is proof that
   this local and regional demand does exist even in
   the downturn.
   In addition, retail outlets for goods and materials
   relating to lifestyle improvement (like Home
   Depot and Walmart in the USA) are likely to be
   very well received at this location.
   MOTEL
   HOTEL
   There is demand for 3 star hotel accommodation
   in the area, servicing both truck drivers and a
   proportion of the local community.
   3km to the north of the site a new hotel is under
   construction now in anticipation of increased
   demand from the new airport just south west of
   Adunatii Copaceni.
   The 50 room hotel some 5km further south on
   DN5 already enjoys high occupancy rates.
   Additional demand will come from service
   companies associated with both ELP tenants and
   the new airport.
   All of these elements will promote ELP as a nodal
   location and the proposed 5 or 6 storey central
   ‘tower’ element of the motel will further assist as
   as a landmark for the park.
   22
   OFFICES
   23
   OFFICE
   As a later phase, offi ce development is
   considered to be viable at this location. Once ELP
   is established and has achieved a critical mass in
   terms of logistics and light industrial occupiers,
   there will be an increasing demand for offi ce
   space from associated support companies.
   It is logocal for them to ‘cluster’ adjacent to their
   client base.
   (The latter is especially relevant once the
   international freight airport is built. As currently
   reported, this is likely to be just 3km north-west
   of ELP. 80% of the associated permits are in place
   and press releases indicate that construction will
   commence when permitting is complete).
   24
   SITE ACCESS
   Permission is in place for the construction of a
   new roundabout as illustrated here.
   This is a very signifi cant benefi t, providing direct
   access and egress into the site from the dual
   carriageway for traffi c travelling either north or
   south.
   It also acts as a signpost to ELP, and will promote
   it as the nodal location to the south of Bucharest.
   25
   It is increasingly important that developments
   such as this are built to sustainable standard
   because:
10. Tenants will benefi t from reduced running
    costs which is a specifi c selling point.
11. The associated balanced carbon emission
    calculations also adds credibility to their
    corporate social responsibility statements.
12. BREAM certifi cation will endorse this
    qualitative diff erentiator.
13. Rainwater harvesting and additional insulation
    standards are likely to be minimum specifi cation
    enhancements.
14. The associated specialist environmental and
    M&E consultancy has been carried out and a
    range of sustainable enhancements are planned.
    Detailed ‘green’ installations are always
    specifi c to the operational requirements of a
    building occupier, but the masterplan design
    has been ‘future-proofed’ to allow for phased
    implementation.
    Feasibility reports are available on request.
    SUSTAINABLE APPROACH
    CURRENT STATUS AND FUNDING MECHANISMS
    26
    THIS DOCUMENT DESCRIBES TWO SEPARATE
    SCENARIOS FOR THE FUNDING AND
    PROCUREMENT OF ELP. OF COURSE, THEY ARE
    JUST STEPPING STONES TO THE CREATION OF
    A VERY SIZEABLE AND CONSOLIDATED ASSETBACKED SECURITY, GENERATING SIGNIFICANT
    RENT-ROLLS AND ASSOCIATED CAPITAL VALUE:
    (1) AN EU GRANT (p27-29)
    A 6.5 Hectare portion of the site has been split
    out and successful application has been made
    for an €9.5M non-refundable grant. The profi t
    on this element alone is projected at about
    €17M. Finance papers are due to be signed in Q2
    2012 following Tender of the approved scheme.
    Construction of the fi rst 43,000sq m of built form
    will commence immediatey thereafter.
    (2) ELP IS A SCALEABLE BUSINESS (p30-35).
    An additional 51hectares of contiguous land is
    available to the managment team, and this land
    already has outline permitting for the requisite
    uses and density. Discussion is ongoing with the
    adjacent owners in this regard, and early equity
    injection will focus on completing the land
    acquisition process.
    Logistics-led development of this kind is amply
    supported by the existing market demands
    within Romania’s 22M population, but when
    the new trade routes become fully established
    then most industry experts now predict an
    almost exponential growth in trade, refl ecting
    the growth in emerging economies and the
    associated shift in nodal distribution locations
    from their traditional base in the western Europe,
    to a more central and eastern European nexus.
    (1). EU GRANT
    27
    EU Grant status as follows:
    Documents were submitted on 7-12-10 and
    validated as eligible on 20-12-10.
    Approved via technical and fi nancial evaluation
    and selected for grant at July’11.
    Passed technical evaluation at Jan 2012 and now
    awaiting site visit before signing EU Finance
    Papers.
    Non-refundable grant is around €9.5M
    Cash-fl ow forecasts for this 6.5H EU project are
    summarised in the short-form fi gures (next
    pages 28-29).
    EU phase covers fi rst 2 blocks of warehouses,
    comprising 42,600sqm built form, rent roll after
    voids of about €2.1M
    In negotiation with short-listed banks over
    fi nancing terms to implement the EU phase.
    DUE TO SIGN EU FINANCE PAPERS Q2 2012
    AND START CONSTRUCTION WITH IMMEDIATE
    EFFECT AT Q2.
    First warehouses available prior to year end 2012.
    EU PROJECT – SHORT FORM CASH FLOWS costs
    28
    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
    DEVELOPMENT COSTS per m2 Block
    A Block B
    Land 65,000 18.5 1,202,500 1,202,500
    Foundations
    & structures 21,300 204 4,340,272 4,377,442 8,717,714
    Internal walls, stairs
    & fittings 22 472,500 472,500 945,000
    Mechanical
    & electric installations 134 2,850,732 1,900,488 4,751,220
    Roads, platforms
    & fences 26 551,258 367,505 918,763
    General landscaping 7 159,300 122,130 281,430
    Professional fees 5% 183,512 122,341 305,853
    Contingency 5% 169,696 112,109 281,805
    Developer Fee 5% 3,000 2,000 5,000
    TOTAL DEVELOPMENT COSTS 60% 410 8,730,271 7,476,516 16,206,787
    TOTAL COST INCLUDING LAND 9,932,771 7,476,516 17,409,287
    CAPITAL EXPENDITURE TO DATE
    Land 1,202,500 1,202,500
    Professional Fees 75% 137,634 137,634
    TOTAL EXPENDITURES TO DATE 1,340,134 0 1,340,134
    BALANCE TO FINANCE 8,592,637 7,476,516 16,069,152
    EU GRANT 50% 4,761,647 4,761,647 9,523,294
    FINANCING REQUIRED 3,830,990 2,714,869 6,545,859
    29
    FORECASTED CASH FLOW BLOCK A per m2 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
    Rental Income:
    Warehouse/Light Industrial 17,680 3.8 806,208 806,208 806,208 806,208 806,208 886,829 886,829 5,804,698
    Office 3,620 7.75 336,660 336,660 336,660 336,660 336,660 370,326 370,326 2,423,952
    Vacancy % 10% 50% 40% 30% 20% 10% 10% 10%
    Vacancy Loss Ͳ571,434 Ͳ457,147 Ͳ342,860 Ͳ228,574 Ͳ114,287 Ͳ125,715 Ͳ125,715 Ͳ1,965,733
    Total Rental Income 571,434 685,721 800,008 914,294 1,028,581 1,131,439 1,131,439 6,262,917
    Expenses:
    Rent Concessions 168,330 201,996 67,332 67,332 67,332 33,666 605,988
    Brokerage Fees 17% 97,144 19,429 19,429 19,429 19,429 96,172 0 271,031
    Marketing 2% 22,857 22,857 22,857 22,857 22,857 25,143 25,143 164,573
    Overhead 5% 28,572 34,286 40,000 45,715 51,429 56,572 56,572 313,146
    Total Expenses 316,903 278,568 149,618 155,333 161,047 211,553 81,715 1,354,738
    NET CASH FLOW 254,531 407,153 650,389 758,962 867,534 919,886 1,049,724 4,908,179
    Project Valuation 9% 2,828,124 4,523,918 7,226,546 8,432,906 9,639,267 10,220,955 11,663,603
    FORECASTED CASH FLOW BLOCK B per m2 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
    Rental Income:
    Warehouse/Light Industrial 17,680 4.25 901,680 901,680 901,680 901,680 901,680 4,508,400
    Office 3,620 8.5 369,240 369,240 369,240 369,240 369,240 1,846,200
    Vacancy % 10% 20% 10% 10% 10% 10%
    Vacancy Loss Ͳ254,184 Ͳ127,092 Ͳ127,092 Ͳ127,092 Ͳ127,092 Ͳ762,552
    Total Rental Income 1,016,736 1,143,828 1,143,828 1,143,828 1,143,828 5,592,048
    Expenses:
    Rent Concessions 295,392 36,924 332,316
    Brokerage Fees 17% 172,845 21,606 194,451
    Marketing 2% 25,418 25,418 25,418 25,418 25,418 127,092
    Overhead 5% 40,000 45,715 51,429 56,572 56,572 250,288
    Total Expenses 533,656 129,663 76,847 81,990 81,990 904,147
    NET CASH FLOW 483,080 1,014,165 1,066,981 1,061,838 1,061,838 4,687,901
    CONSOLIDATED CASH FLOW 0 254,531 407,153 1,133,469 1,773,127 1,934,515 1,981,724 2,111,562 9,596,080
    Project Valuation 9% 12,594,102 19,701,409 21,494,606 22,019,151 23,461,799
    EU PROJECT – SHORT FORM CASH FLOWS revenues
    30
    This scheme assumes the build out of the whole
    67 Hectares, with a mixed use scheme developed
    over a 12-14 year period.
    Including indexation of both costs and revenues
    the fi nancial appraisals (available on request)
    project total revenues of around €850M over the
    period on just over 450,000sqm of built form at
    an IRR of about 50%.
    This is obviously an ambitious projection, and
    the approach throughout the project will be one
    of cautious and risk averse development, with
    construction programme carefully callibrated to
    uptake and revenue streams at realistic gearing.
    However, given the strategic evolution of CEE in
    general, and Romania specifi cally, courtesy of
    both the newly built road networks and the rapid
    growth of the warm port at Constanta, we do
    view the long term prospects for this site and ELP
    as a business, to be very signifi cant.
    (2). 67 HECTARE SCHEME – A SCALABLE BUSINESS
    31
    Capital
    Capital Investment Founders-Tranche 1 5,000,000
    Capital Investment-Tranche 2 10,000,000
    Capital Investment-Tranche 3 20,000,000
    Placement Costs and Fees -1,500,000
    Net Capital € 33,500,000
    Land Acquisition
    Land Acquired – Phase 1 (m2) 160,000
    Land Acquisition 4,000,000
    Total Land Acquisition Cost – Phase 1 € 25.00 4,000,000
    Land Acquired – Phase 2 (m2) 510,000
    Land Acquisition € 18.00 9,000,000
    Total Land Acquisition Phase 2 9,000,000
    Total Land Acquisition 13,000,000
    Working Capital Available for Development 20,500,000
    Revenues
    Sales Revenues 630,000,000
    Leasing Revenues 220,000,000
    Total Sources of Funds 850,000,000
    Expenditures
    A&E \ Permitting Costs 500,000
    Construction Costs 280,000,000
    Sales & Leasing Expenses 32,000,000
    General & Administrative Expenses 8,000,000
    Financing Expenses 150,000,000
    Total Expenditures 470,500,000
    Income Tax (Romania – 16%) 60,000,000
    Cash Available for Distribution 340,000,000
    Dividends Distributable to ELM 5% 17,000,000
    Dividends Distributable to Nazofan 95% 330,000,000
    Founders Profit Share 25% 82,500,000
    Dividends Distributable to Investors 75% € 250,000,000
    Cash Distributions per 1M Euro Investment 700% € 7,000,000
    European Logistics Park SRL
    Forecast of Cash Flows (Euros)
    67 hectare summary
    SUMMARY FORECAST – ELP – 67 HECTARE SCHEME
    SPECIFIC ASSUMPTIONS:
15. Rental fl ows are capitalised at an exit yield of
    7.5% (ARY).
16. Total equity of around €35M.
17. Total revenue is around €850M.
18. An ROI of around 700% is projected across the
    period
19. Detailed analysis available on request
    32
    STRUCTURE
    Find at page 31 (opposite), the corporate
    structure that has been established for the
    procurement and management of European
    Logistics Park International SRL (ELP).
    For maximum tax and corporate effi ciency,
    BUSINESS PLAN
    funds are invested in Nazofan, a Cypriot Holding
    Company, which owns 95% of ELP. LaSalle, the
    project sponsor and founder equity provider,
    owns 25% of Nazofan, the remaining 75% resting
    with Investors. The project is managed by ELM
    (European Logistics Management SRL). A 5%
    fee is charged for management and it has a 5%
    shareholding in ELP.
    INVESTMENT STRATEGY
    Based on a two-phase land acquisition along
    with a complimentary development scheme.
    Tranche 1and part tranche 2 funds are already in
    place (equity currently totals about €10M) and
    have been used to complete the purchase of a
    23H site area and to progress design, detailed
    permitting and procurement of the €9.5M nonrefundable EU grant.
    Further funds have been allocated to support the
    EU Project match funding requirements.
    TAXATION
    Currently, Romania imposes an income tax of
    16% of the profi ts deriving from the sale of real
    estate and VAT of 19%.
    Assuming Nazofan maintains at least a 25% share
    interest in ELM dividends paid to Nazofan WILL
    be exempt from withholding taxes paid more
    than 2 years after Nazofan’s acquisition of ELM
    shares. Receipt of such dividends are exempt
    from Cyrpus taxes.
    EXIT STRATEGY
    A fl exible strategy is being adopted as two
    mechanisms are possible:
    An early exit is possible (3-5 years) whereby the
    implementation of the park (ELPi) is commenced,
    building-out and tenanting circa 25–35% of the
    overall scheme prior to seeking an exit via sale
    of all or part of the asset to a large international
    fund. Several funds have expressed interest as
    the location is likely to be established as the new
    ‘hot-spot’ for logistics in Romania.
    Alternatively, ELPi is a scalable development
    project which can extend to at least 67Hectares
    and an asset backed investment producing
    revenues projected at over €50M/ year on
    about 450,000 sq m of bult form on a 12-14 year
    horizon.
    This longer term business strategy may suit
    larger investors looking for commercial drivers
    that support their core business expansion in
    parallel with that of the Park itself.
    33
    CORPORATE STRUCTURE
    Nazofan Enterprises Limited
    Sponsor/Equity Manager
    25% founders’ shares
    Project Manager
    5% ownership
    Sponsor/Equity Manager
    LaSalle Private
    Equity Group
    Prefered shares 75%
    fully participating
    95% ownership
    Factory Sales &
    Leasing
    Logistics Sales
    & Leasing
    Logistics
    Operations
    Offi ces Sales
    & Leasing
    Commercial
    Sales & Leasing
    European Logistics Park International SRL
    European Logistics
    Management SRL
    Prefer de hsares 75%
    Investors
    MANAGEMENT
    ELP will be managed by European Logistics
    Management srl (“ELM”). ELM will receive a
    management fee of 5% of income and owns a
    5% shareholding in ELP.
    The principals of ELM are scheduled within the
    following pages along with summaries of their
    relevant experience. In addition, a separate
    schedule is provided for the professional team.
    Fuller CV’s for the management are available on
    request.
    34
    35
    CHIEF EXECUTIVE OFFICER
    Jonathan Hampton
    SALES & LOGISTICS
    Raviv Knafo
    BANKS
    REGIONAL MANAGER
    Raphael Daddush
    CHIEF FINANCIAL OFFICER
    Gil Mamon
    ACCOUNTS/AUDIT LEGAL TEAM REAL ESTATE BROKERS PROFESSIONAL TEAM
    OCCUPIERS
    Factory Sales &
    Leasing
    Logistics
    Operations
    Logistics Sales
    & Leasing
    Offi ces Sales
    & Leasing
    Commercial
    Sales & Leasing
    GENERAL COUNSEL &
    DIRECTOR OF LEGAL AFFAIRS
    Gavriel Mairone
    CONSTRUCTION TEAM
    Facilities
    Management
    MANAGEMENT STRUCTURE
    36
    JONATHAN HAMPTON
    A Chartered Surveyor (MRICS – development and
    planning) with 25 years experience in the UK Real
    Estate industry.
    Co-founded the RPM company in 1987, a
    ’relocation project management’ company,
    providing a niche service in covering all aspects
    of commercial relocation.
    Developed (and part owned) a series of
    restaurants in and around Covent Garden,
    London, 1989-2007.
    Founder and MD of mps-architects 1991-2008,
    undertaking high quality projects for a diverse
    client base within commercial, leisure and
    residential sectors.
    Became an equity director of Brickcrest Limited
    in 2002, a UK real estate development company
    incorporated in 1987.
    Brickcrest has received Heritage Awards for its
    developments at Chelwood Beacon and Ditton
    Place.
    Group restructured in 2008, allowing Mr.
    Hampton to concentrate full time on Brickcrest
    and its associated investments:
    CHIEF EXECUTIVE OFFICER
    Opportunities explored in new marketplaces
    including Chile, Romania, Israel, China and
    Estonia to date.
    Please refer to websites for fuller information:
    www.brickcrest.com
    www.elp.eu.com
    www.hampton-consulting.com
    37
    GAVRIEL MAIRONE LEGAL COUNSEL
    Attorney admitted to practice law in USA and
    Israel since 1981
    Founding partner of law fi rm Mann & Mairone,
    Chicago, New York, Luxembourg, Geneva, Miami.
    MD of LaSalle International Group 1983-2000.
    Developed and managed $150m real estate
    development during this period.
    Owned and managed several Sheraton and
    Radisson hotels.
    Developed arts centres, loft complexes, shopping
    centres and gated communities across the
    United States
    Charitable work includes arts promotion (around
    the coyote, chicago) which promotes emerging
    and experimental artists and hosts the largest
    emerging artist festival in the world.
    Education: BA philosophy degree from Hebrew
    University, Jerusalem and Spertus college
    of Judaica, Chicago; a Juris Doctor degree
    suma cum laude from the Illinois Institute of
    Technology Chicago Kent College of Law, and a
    Masters of Laws Degree, Taxation, from New York
    University.
    38
    RAVIV KNAFO
    SALES & LOGISTICS
    Raviv Knafo is a founder a director of Skyway
    Logistics sàrl, a Luxembourg based logistics
    company.
    Skyway is the primary ground-transport and air
    logistics company for air freight between europe
    and Israel via Belgian and Luxembourg airports.
    Prior to founding Skyway, Mr. Knafo served as the
    sales and logistics director for Cal Airlines, based
    in Liege, Belgium for approximately 7 years.
    Prior to joining Cal, Mr. Knafo served as the chief
    of security for the cargo division of El Al airlines,
    in Belgium.
    OPERATIONS AND FINANCE
    GIL MAMAN CPA
    CHIEF FINANCIAL OFFICER
    A certifi ed public accountant with over 7 years in
    accountancy.
    Prior to joining the Mann & Mairone group Mr.
    Maman served as Chief Accountant of Avnei
    Mizrachi Ltd, an Israeli real estate development
    company.
    RAPHAEL DADUSH
    REGIONAL & CONSTRUCTION MANAGER
    Mr. Dadush has over 25 years experience in real
    estate development and construction and has
    operated in Romania for the last 8 years.
    He is highly experienced in organising and
    implementing complex multi-disciplinary real
    estate and marketing projects.
    In addition he has excellent social networking
    skills and customer relations, which makes him
    a highly competent regional manager and key
    management team member.
    39
    PROFESSIONAL ADVISORS
    LEGAL COUNSEL (ROMANIA)
    Rubin Meyer Doru & Trandafi r SCA (RMDT), a
    leading Romanian law fi rm affi liated with the
    US law fi rm Herzfeld & Rubin PC (40 Wall Street,
    New York). RMDT represents ELP and ELM on
    Romanian and European Union real estate land
    use, corporate and tax issues.
    LEGAL COUNSEL (CYPRUS)
    Kinanis & Co (P.O. Box 22303, 1520 Nicosia) is
    the largest law fi rm in Cyprus, and represents
    Nazofan Enterprises Ltd on all Cypriot and
    European Union coporate, tax and securities
    matters.
    CHARTERED SURVEYORS
    Established in 2000, King Sturge international
    property consultants represent a wide spectrum
    of public and private investors, developers,
    institutional funds and government bodies. It
    enjoys signifi cant market share in the industrial,
    logistics and retail sectors in the Bucharest
    property market and advises ELM on all property
    matters. King Sturge has provided a full
    feasibility report which is available upon request.
    EPSTEIN PROJECT MANAGEMENT
    Are one of the largest independent project
    management companies internationally. They
    have offi ces in USA, Israel and Romania. Epstein
    are coordinating the whole professional team
    and liaising with local and regional statutory
    ARCHITECTURE (ROMANIA)
    Global Architects & Consultants (GAC) have now
    been appointed as lead consultants. they and
    their professional team have vast experience of
    logistics-led development both in romania and
    internationally. based in bucharest they are well
    versed in local zoning and compliance issues.
    STRUCTURAL ENGINEERS
    MITV structures and their Romanian subsiduary
    Koppelmann srl have completed over 50
    warehouse and industrial projects over a 40 year
    span, including work for ikea, tnuva, scope and
    orshar and many others in romania.
    MECHANICAL AND ELECTRICAL ENGINEERS
    COMTiD are an experienced and proactive
    multidisciplinary team of engineers again based
    in central bucharest and with wide ranging large
    scale projects in the industrial, offi ce, residential
    and public domain.
    TRANSPORT CONSULTANTS
    Proff essor Victor Gutu is one of the most
    respected transport specialists in romania and
    has infl uenced traffi c legisilation and policy in
    the region for over 50 years
    ENVIRONMENTAL CONSULTANTS
    WSP group srl, 17 Str. radu voda, district 4,
    bucharest, have provided phase 1 environmental
    and technical studies to date.
    DELAP & WALLER ECOCO
    Dublin, are integrated sustainable design
    consultants and have completed a full feasibility
    study into the implementation of sustainable
    technologies at elp.
    ACCOUNTANTS (ROMANIA)
    Diana Gradinaru, CPA
    SC Hermes Expert Conta SRL
    Sector 6, Str. Ceahlau, Nr. 2, BL.
    Romania
    AUDITORS (UK AND ROMANIA)
    UHY Hacker Young
    Quadrant House,
    4 Thomas More Square
    London E1W 1YW
    PROFESSIONAL VALUERS
    SHM Smith Hodgkinson (Romania) srl
    35 Baratiei str, district 3, bucharest, carried
    out valuation services for the current land
    acquisitions and land split for the EU grant
    application.
    40
    SUMMARY
    European Logistics Park International (ELPi) is a
    mixed use trade park on the DN5/E70 highway
    approximately 8km south of Bucharest. 23H are
    in current ownership with an additional 51H
    available in a contiguous plot.
    Two scenarios for the build out have been
    modelled.:
20. A 6.5H plot with 43,000sqm of warehousing
    for which a non-refundable EU GRANT OF €9.5M
    has been approved and ready to go. This will
    generate a PROFIT OF ABOUT €17M ON A RENT
    ROLL OF €2.1M. It will also kick-start the larger
    scale development by establishing the location
    for logistics-led development.
21. A 67H development at a plot ratio 54%
    generating a GDV OF AROUND €850M over
    a 12-14 year period. Investment returns of
    around 50% IRR are projected with a return on
    investment of around 640% across the period.
    Profi ts are generated by:
    1.Escalation in land value
    2.Revenues from the letting and management of
    the logistics facilities
    3.Capitalisation of all rental fl ows at an assumed
    ARY of 7.5% at exit.
    This is a HIGHLY STRATEGIC LOCATION falling
    directly next to the new Bucharest International
    Freight Airport (as announced August 2008) and
    the Freeport of Giurgiu on the Danube River.
    The DANUBE connects with the rapidly growing
    port of CONSTANTA ON THE BLACK SEA,
    providing a strategic multi-modal logistics
    location. The newly built E70/DN5 road on which
    the site sits, is the ONLY ARTERIAL LINKING
    TURKEY AND GREECE to the rest of Europe.
    There are currently no modern logistics facilities
    on this route.
    A FULL FEASIBILITY REPORT has been prepared
    by King Sturge, (now Jones Lang LaSalle) which
    contains empiric evidence for demand at this
    location and endorses the proposed use mix and
    strategy. It analyses a 32Hectare build out on the
    site and generates an ROI of 680% at an IRR of
    54% .
    Although the NON-REFUNDABLE EU GRANT
    FUNDING OF €9.5M has now been APPROVED,
    this grant is not assumed within the fi nancial
    models for the larger scheme. As such, projected
    returns are much higher for this fi rst phase
    which benefi ts from this ‘gift’ from Europe.
    More importantly, in a diffi cult letting market,
    it provides the fl exibility to reduce pricing to
    guarantee occupancy and an income stream
    from the outset.
    In relation to later phases, a total of 67H is
    available in a contiguous plot with outline
    permitting. Given suffi cient funds this land
    41
    acquisition would be an early priority. The
    scheme built on this enlarged plot generates
    total revenues of around €850M, again at an IRR
    of around 50%.
    ELP is being constructed to international
    standards, by an experienced management
    team. The product is in keeping with the
    Corporate Social Responsibility of the equally
    International Covenants that it will attract.
    The key to this business is the EXPONENTIAL
    THROUGH-TRADE GROWTH POTENTIAL of
    the location for distriution and logistics in
    combination with the YIELD SHIFT that will occur
    when the strong tenant-covenants are repriced
    in the marketplace through time.
    LaSalle Private Equity Group
    12 Egypt Street,
    1097 Nicosia,
    Cyprus
    T: +44 (0)20 7242 4153