Block 65 - Belim Business and commercial complex

Block 65 - Belim Business and commercial complex

About Atlas Group Atlas Group has over 30 members operating in the area of banking, financial services, insurance, real estate, production, tourism, media, education, culture and sport. Our companies have offices in Montenegro, Serbia, Cyprus and Russia Atlas Group is organised as a modern management unit with a main objective to increase the value of all member companies by improving performance, investing in new projects and creating of synergy between the member companies. Atlas Group operates in line with global trends promoting sustainable development and utilization of renewable energy sources. Philanthropic activities conducted through the Atlas Group Foundation, which is a member of the Clinton Global Initiative. Atlas Bank was awarded the status of the best Bank in Montenegro, and Atlas Group as best financial group for 2009. by world economy magazine "World finance. In order to promote its mission Atlas Group has hosted many famous personalities from the spheres of politics, business, show business and arts.

About Serbia Located in the centre of the Balkan Peninsula, in Southeast Europe. Extreme natural beauty and cultural historical heritage (prehistoric achaeological sites, mediaeval churches and monasteries, some of which are included on the UNESCO World Heritage list). Area: 88.361 km 2 ; population: more than 7.500.000; climate: moderate continental; Capital city Belgrade with around 1.730.000 inhabitants. Borders with Montenegro, Croatia, BIH, Albania, Hungary, Romania, Bulgaria and Macedonia. Traffic connection: airports Belgrade, Niš, Priština; Serbia is landlocked but as a Danube country it is connected to distant seas and oceans. Serbia is a crossroads of Europe and a geopolitically important territory. The international roads and railway lines, which run through the country s river valleys, form the shortest link between Western Europe and the Middle East. Currency: Dinar (RSD) Serbia is a modern, democratic European country, on the path to membership of the European Union Stimulative investment climate (income tax 10%, VAT 20%, tax on real estate transaction 2,5%). Income of direct foreign investments in Serbia for 2012 expected to reach about 1,2 billion EUR. Average GDP in past 3 years is app. 34,7 billion EUR (for 2012. increase was 0,5%: Inflation rate 4% ± 1,5%.

About Belgrade Belgrade is the capital city of Serbia and has a population of around 1.7 million. It is one of the oldest cities in Europe and has since ancient times been an important crossing of the ways where the roads of eastern and western Europe meet. The city lies on two international waterways, at the confluence of the Sava and Danube rivers, which surround it on three sides. Because of this position, Belgrade is fittingly referred to as the Gateway to the Balkans and the Door to Central Europe. The inner, urban area of Belgrade covers an area of 36 km 2 and the total territory of the city is around 322 km 2. The wider city area is 419 km 2. Belgrade is an important regional traffic hub: the crossroads of European routes E70 and E75 and the crossroads of Pan-European Corridors 7 and 10 are located here, the city is connected to key railway routes, is home to Nikola Tesla International Airport and two international waterways flow through it. Belgrade is the capital of Serbian culture, education and science. It is home to the highest concentration of nationally important science and art institutions. Belgrade Fortress is the oldest cultural and historical landmark in Belgrade. Also of interest to tourists are Skadarlija, the central bohemian quarter; the Residence of Princess Ljubica (Konak Kneginje Ljubice); Captain Miša s Building (Kapetan Mišino Zdanje); the Old Palace and New Palace (Stari Dvor and Novi Dvor); the Serbian National Assembly building and the Cathedral of Saint Sava (Hram Svetog Save).

RESIDENTIAL REAL ESTATE AND APARTMENTS A number of constructed residential units in Serbia and Belgrade declined in 2009 and 2010, after a constant increase in the period 2002-2008. Although the data imply less intense activities in previous years, the current plans of investors indicate the market recovery and positive trends in the supply. Serbian Government is pursuing to support the construction industry to alleviate the effects of economic crisis. As a part of anti-crisis measures, the Government has decided to decrease the percentage of citizens participation in financing the subzidized housing loans to 5%, instead of previous 10%. A new Law on the Protection of Financial Services Consumers, which came into force on december 2011, regulates the change of interest rates during the repayment of loan. Banks will not be able to change interest rates according to their unilateral will, as the Law defines precisely the method of determining the interest rate. The age limit is also increased. Married couples over 45 years of age are able to take loans as well. This will enable citizens to get housing loans more easily and will give significant support to the construction industry. Short market review Real estate / Serbia Rents in Belgrade area remain steady, becoming more tenant driven and the rental prices are most often between EUR 5 14 per sq m per month, depending on the location, size and year of construction. Table1: Selected residential projects in development in Belgrade during 2012 Project Location GBA (sq m) Stepa Stepanovic Vozdovac 441.000 Dr Lola Ribar New Belgrade 37.000 West 65 New Belgrade 50.000 Golf8 Banovo brdo 31.000 Gardenia Zvezdara 32.000 Padina Vozdovac 7.500 In Belgrade area there is a slight increase of the asking prices for mid-end apartments from EUR 1.400-2.000 per sq m, while the askng prices for high-end apartments remain steady and range from EUR 1.200 2.500 per sq m. In other cities throughout Serbia sale prices range from EUR 500 1.000 er sq m.

Short market review Real estate / Serbia OFFICE MARKET OUTLOOK SUPPLY Office market is still mostly concentrated in Belgrade city area, which is further divided into three areas: Central Business District, Broad Center adn Suburban area. Total stock of office premises in Belgrade in HI 2012 ammount about 800.000 sq m of GBA Class A office 530.000 sq m and Class B offices 270.000 sq m. In comparison to other cities in region, like Sophia, Budapest, Bucharest and Zagreb, Belgrade recorded the slowest growth of total office stock. In HI 2012, a total of 115.000 sq m of office space is currently under construction. Several notable projects in 2012 are: EPS and EDB HQ, Danube Business Center, Intesa bank HQ, Raiffeisen bank HQ and West 65. DEMAND Same as last year, most of all lease activities are concentrated on territory New Belgrade, thanks to the better supply of modern office buildings and more parking spaces, and due to lack of new office spaces and parking spaces in downtown. New Belgrade takes up to 60% of the total demand. RENTS When compared to the end of 2011, rents of A class and B class office space stayed approximately at the same level. In the central business district the average rents are in range EUR 11 15 per sq m per month and in wider centre area rents are in range EUR 7 10 per sq m. RETAIL MARKET OUTLOOK Year 2012 brought rise in total stock of modern shopping centres, outlet centres and retail parks throughout Serbia. In March 2012, investor Plaza Centers opened their first shopping mall in Serbia, and that is Kragujevac Plaza in Kragujevac. Sity of Indjija finaly got their long awaited outlet park known as Fashion Park Outlet Center. Aviv Park in Pancevo opened its new phase in May 2012. Merkur International decided to lease the whole new gallery level to interested tenants, in their project in Karaburma, now known as Karaburma Shopping Centar, and new stores are opened in autumn 2012. Israeli investor BIG CEE finished first phase of construction of BIG CEE Shopping Center in Novi Sad and opened it in October 2012, while the opening of the other phase is planne for March 2013. As for Belgrade area Usce Shopping Center and Delta City shopping mall still stay at the most prominent shopping malls with the highest foot fall figures, along with Immocentar outlet center. Total stock of Belgrade shopping centres remain at the same level and ammounts about 200.000 sq m of GLA. RENTS Rents for prime locations in Belgrade are approximately at the same level, when compared to end of 2011 and range between EUR 30 90 per sq m per month. The same situation is with rents of secondary location and these range from EUR 20 50 per sq m per month. In retail parks rents vary from EUR 7 30 per sq m per month depending of the size and position of the shop.

Click on image for google map Location Belim property is situated in Block 65, within the central part of the New Belgrade Municipality. The highway E-75 (leading towards Zagreb, Novi Sad and Nis) is in close proximity,and provides direct access to the Belgrade airport within a 10 minute drive. It is worth noting that the property is well connected to all parts of the city through Mihaila Pupina Boulevard, as well as through the Third Boulevard and Jurija Gagarina Street. According to the Master Plan of Belgrade, the subject properties are located in a city zone which is mainly intended for development of business,commercial and residential buildings. In this area, most high-scale commercial developments are situated along the main traffic arteries of Omladinskih Brigada and 2a 2a Streets, creating the attractive and presentable look of the area. On the other hand, light industries and warehouses are generally found northwesterly along Tosin bunar Street and some inner roads. In the future, access to the property will be further facilitated by the first construction phase of the light-metro line - 14.5 kilometers in length - which will connect Ustanicka Street in eastern Belgrade with Tvornicka Street in Zemun. The new system will include extensive underground portions as well as additional river crossings. Location extends on 8.735 m 2 where is possible to construct 30.000 m 2 of business and commercial content.

Block 65 - Belim Location is part of micro business zone that is becoming important part of new Belgrade central zone, given the fast development of wider area, in spatial and functional sense. In functional sense complex is designed in a way to enable unobstructed functioning of business with various frequencies and technological needs. Superstructure is divided in functional sub units: business and shopping (mega market) with auxiliary premises while substructure is intended for parking and technical premises. Floor heights are designed in a way to meet the needs of various sub units and enable their connection if needed. Business part is of open type that can be rearranged if needed.

Project Given its position and function location has huge investment potential. Market trends provide constant demand for commercial and office area near location. Function of content on urban lot: office and commercial activities. Obtained urban parameters Values Land property 8.743 m² Footprint of potential improvement 4.150 m² Total built-up area 30.915,5 m² Total aboveground built -up area 20.546,31 m² Total underground built -up area 9.718,64 m² Allowed number of floors Up to 2Ug+Gr+9 Parking under ground levels Added values New Belgrade become main business district in Serbia Many companies choose New Belgrade for their headquarters or regional centers such as Acer, Comtrade, Siemens, Imtel Computers, Microsoft, Ikea., Mercedes Benz, Daimler Chrysler.. Over 1,2 million square meters is under construction in New Belgrade. Estimated value of construction in next two and half years will be over 1,5 billion Euros.

Concept design

Serbia 15 Nusiceva Str; 11000 Belgrade T: +381 11 333 6301; F: +381 11 333 6300 info@atlas-g.com www.atlas-g.com