Active Asset Management

Active Asset Management

Company Profile 1. Portfolio 2. Structure and Services 3, Asset dedicated services 4. FREM refurbishment case history 5. i. Preliminary phase ii. Development phase iii. Asset Management 6. FREM development case history 7.

Portfolio Aura, Roma 19.228 sqm GLA Our Shopping Centers Gran Roma, Roma 32.300 sqm GLA Gran Sasso, Teramo 30.334 sqm GLA

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants Gran Roma 2008 35.356 Emisfero 68 1 2.200 307.018 Euronics, H&M, Carpisa Scarpe&Scarpe, Calliope Happio Antegnate Monopolis

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Gran Roma Happio Antegnate Monopolis Opening year 2002 GLA 30.224 Hypermarket Emisfero Number of shops 43 Number of floors 1 Number of parking slots 1.450 Cathment area (up to 30') 192.732 Anchor tenants Cisalfa, Scarpe&Scarpe, OVS Unieuro

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants Gran Roma 2007 30.334 Conad 78 1 1.800 190.000 Conad, Mediaworld, Bricofer, Globo, Terranova, Zara, Cisalfa Happio Antegnate Monopolis

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants AURA Gran Roma 2003 24.315 Esselunga 43 3 1.800 708.089 Unieuro, MedStore, UCI Cinema, Virgin Happio Antegnate Monopolis

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants AURA Gran Roma 1993 44.514 Emisfero 92 2 2.050 722.041 Conbipel, OVS, MediaWorld, H&M, Piazza Italia, Cisalfa, Zara Happio Antegnate Monopolis

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants Gran Roma 2008 32.341 Carrefour 35 1 2.100 425.000 Conbipel, Decathlon, Globo Euronics, Happy Casa, OVS Happio Antegnate Monopolis

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA First floor Third floor Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants Gran Roma Happio Second floor Fourth floor 2018 19.828 Pam 60 4 600 1.230.000 H&M, Euronics, Terranova, Calliope, Scarpamondo Antegnate Monopolis

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Gran Roma Happio Antegnate Monopolis First floor Second floor Opening year 2019 GLA 31.337 Hypermarket Number of shops 100 Number of floors 2 Number of parking slots 1.800 Cathment area (up to 30') 2.500.000 Anchor tenants Cisalfa, Maison du Monde, Zara, Bershka, Pull&Bear, H&M, Zuiki

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Gran Roma Happio Antegnate Monopolis Mezzanine floor Underground floor Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants +2 floor +1 floor 2015 11.617 36 4 400 1.730.000 H&M, Kasanova, Piazza Italia, KFC, Decathlon

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Gran Roma Happio Antegnate Monopolis Opening year 2009 GLA 39.186 Hypermarket Auchan Number of shops 87 Number of floors 2 Number of parking slots 1.843 Cathment area (up to 30') 689.724 Anchor tenants Zara, H&M, Trony, Bata, Poltronesofa

Portfolio Gran Fiume Belforte Gran Sasso Meridiana Palladio Terminal Nord AURA Opening year GLA Hypermarket Number of shops Number of floors Number of parking slots Cathment area (up to 30') Anchor tenants Gran Roma 2019 43.500 Conad 63 1 2.034 290.000 H&M, Leroy Merlin, Globo, Centro Convenienza, Zuiki, Happy Casa Happio Antegnate Monopolis

Portfolio Managing direction FREM Organization Layout Finance Development dept Asset management Technical dept. Digital dept. FREM value-add strategy

Portfolio ACCOUNTING Hotels management and development Facility management Project management TRANSACTION Shopping centers, outlet and retail parks management Strategic Advisory ASSET SERVICES Valuation and strategy One to one relationship TECHNICAL Reporting and data analysis Third party and professional supervision Technical supervision on property management LEASING & ADVISORY DEVELOPMENT

Portfolio Key Sucessful Factors Footfall TURNOVER Adopting marketing initiatives so as to maximize turnover for tenants. Implementing the best merchandise mixsoastocomplementtheoffer for our customers. Aimingtoretainthebesttenants and attract new retail trends representative. FOOTFALL FREM Tasks E\mq (rental income) Turnover Constantly investing on the asset to improve its attractivness for consumers. In addition to the ineherent shopping possibilities, we create marketing plans to engage and entertain visitors. DigitalMedia/Marketing approach to raise awarness, create engagement and interaction with the customer base. E\Mq ( Rental income ) Value-Add Re-Development NOI driven approach. Strategy to reach sustainable OCR for all tenants by understanding their potentialandidentifying creative solutions to grant them stability. Value-Add Re-Development Changing the shape/size of the mall and the building to welcome new anchor tenants to increase the critical business mass.

Portfolio Palladio Granfiume Belforte Gransasso FREM refurbishment case history Refurbishment 2016 TheMallwasoriginallybuiltinthe90 sandexpandedintheearly2000 s, to be finally refurbished over the course of 2016 under FREM s Management. Complete refurbishment of the main square with new escalators to create a wide new square, new shops and overall mall merchandise mix rebalanced obtained through the reduction of the hypermarket to allow the transfer of Cisalfa and Mediaworld therein, so as to welcome the Inditex group with all its brands in the areas previously occupied by them.

Portfolio Palladio Granfiume Belforte Gransasso FREM refurbishment case history Current Status Future Status Refurbishment plan for 2019 Bulding a Multiplex Cinema on the first floor, with the tear down and re-construction of a large part of the building and redrafting the existing food court. In order to complete the refurbishment, interventions will also impact H&M and Palestre Italiane in a wider commercial operation, envisioning their reposistioning in the mall. Relamping and restyling of the corridor cealings, overall care of every commercial detail to finalize the transformation of the asset into a core level investment.

Portfolio Palladio Granfiume Belforte Gransasso FREM refurbishment case history Previous Status Current Status Refurbishment 2018 An almost 2-year long intervention to stabilize the asset and improve its merchandise mix saw H&M moving into a reduction of the hypermarket, creating also the necessary space for the opening of an AW-LAB store adjacent to the new H&M location. Ongoing operations to finalize the introduction of Conbipel and of Doppio Malto into the previous H&M unit.

Portfolio Palladio Granfiume Belforte Gransasso FREM refurbishment case history Previous Status Current Status Refurbishment 2018 After a couple of years to stabilize the mix at best, ZEBRA a PUA opened a medium size shop into a reduction of the hypermarket. The foodcourt was further implemented through the introduction of Burger King into a reduction of the GUSTAVO unit. Development 2018 2019 Ongoingnegotiations for the further implementation of the foodcourt plaza to introduce another national operator

Portfolio Palladio Granfiume Belforte Gransasso FREM refurbishment case history Previous Status Current Status Refurbishment 2018 After years of interventions to stabilized the merchandise mix through turbulent times, ZARA was eventually introduced into the mall, GLOBO was relocated into a smaller unit to make room for the spanish brand, and OVS had to leave the mall to make room for a more performing tenant.

Portfolio i. Preliminary Phase Current Situation Analysis Procurement Supervision 1 Master Plan Verification Business and Leasing Plan Project Approval 2 Feasibility Study 3 Cost Benefit Analysis 4 5 SWOT Analysis Project design assistance Capex Plan Verification Assistance in financing process

Portfolio ii. Development Phase Yard Supervision (men on site) Planning and Control of Schedule Project approval Pre Letting Activity Planning and Control of Costs Pilotage Supervision iii. Asset Management Phase Supervision on One the procurement to one for the property relationship management Supervision on the property management budgeting Monthly/quarterly Reporting Asset Management Asset Sale Property company research Digital Marketing Approach Asset Launch

Portfolio FREM development case history Gran Shopping Mongolfiera, Molfetta, Bari (BA) Start of construction: 2006 End of construction: 2008 Year of sale: 2013 Not managed by FREM anymore Gran Sasso Gran Shopping, Teramo (TE) Start of construction: 2006 End of construction: 2007 Year of sale: 2013 Asset still managed by FREM

Portfolio * (*) The data which generate these values both in 2016 both in 2018 are weighted on all the 9 assets under management today by FREM