1Q 2016 INVESTMENT OPPORTUNITIES

Section. I

Stylish lofts minutes away from Tverskaya and Moscow-City, Rassvet by KP Properties

60-70 sq.m apartments at Moscow City, IQ-quarter by HALSм2

Moscow: time to move in - best projects

with hand-over in 2016

Table 1. Opportunities overview

Investment opportunity

Status

Unit size (recommended), sq.m.

B-Club's price, $/sq.m.

Budget

3-year upside

(Billion Estate's estimate)

Rental yield on initial

investment (estimate)

Upside structure

Hand-over

Developer

Risks

Risk of non-delivery

(estimate)

Rassvet, Moscow IQ-Quarter, Moscow Sady Pekina, Moscow

Loft Home-style Apartment Business-style Apartment Patriki's style

70-100 60-110 65-85

Staring $4,000 Staring $4,700 Staring $5,500

From $250,000 From $320,000 From $350,000

Up to 30% Up to 40% Up to 35%

5% 7% 6,5%

Underpriced project.

Area's development.

Airport shuttle.

Demand on units below 100 sq.m –

the only product in the City.

City's coming overall completion

The only new development

at Mayakovskaya.

Hotel's service

3Q 2016 4Q 2016 4Q 2016

KR Properties HALS-Development HALS-Development

Loft's peculiaritiesVicinity to the third ring.

New supply in the City.Number of residents (incl. rentals).

Poor hotel service.

1% 1% 1%

Property description

Rassvet Loft Studio

Apartments are lofts with high ceilings

(up to 5.5 meters). Units on the ground

floors have separate entrances; besides,

they have their own land lots assigned to

them. Lofts located on the upper floors are

two-level units. Mansard type apartments

are equipped with fireplaces.

MKAD

Rassvet

Loft Studio

МUlitsa 1905 Goda metro station

800 м 6 км

Historical center of MoscowMunicipal Polyclinic No.220

800 м

Residential development “Rassvet Loft

Studio” is located in the center of

Moscow, on Stolyarny lane. There are

mansards on the upper levels of each

building. Both buildings are lined by

bricks of several different tints; facades

are decorated by panoramic windows.

The development is equipped with up-to-

date engineering communications and

solutions. There is underground parking

for 100 parking places under construction

on the territory of the development. There

is special area for surface parking.

Number of apartments: 75

Total build-up area: Rassvet Loft Studio

a lot of entertainments and cultural institutions, including museum of biology, Catholic cathedral, zoo, planetarium; several schools, kindergartens, hospitals; supermarkets “Perekrestok”, “Azbuka Vkusa”, “Sedmoy Kontinent”, etc.

Infrastructure:

Property description

IQ-Quarter Residential Complex

shopping, relaxation and entertainment

within walking distance. There are

carefully planned design solutions of the

apartments, including three-sided

apartments with unique panoramic views

to the capital and Moskva River.

MKAD

4 км

Historical center of Moscow

Multifunctional complex “IQ-Quarter” is

a part of international business center

“Moscow City”. IQ apartments in

Moscow City is luxury environment with

high-end modern infrastructure and

availability of all you need for working,

Design projects are from fashionable

architects and designers providing

possibility to combine apartments

horizontally. Well-furnished development

common area.

Number of apartments: 104

Total build-up area: 228,000 sq.mIQ-Quarter Residential Complex

IQ-Quarter

Residential

Complex

Moscow International Business Center “Moscow City”

Third Ring Road

2 км

AFIMALL City shopping and entertainment center

1,8 км

multilevel parking; transport terminal; 3 fitness centers; over 400 stores, including network supermarkets; over 50 cafes and restaurants as well as canteens for the tenants of office towers; 6 beauty salons; cinema, bowling, billiards; business center; 15 banks; 8 medical centers; 5 schools.

Infrastructure:

Property description

Sady Pekina Residential Complex

natural light, up-to-date infrastructure,

closed courtyard and unsurpassed

comfort. There will be penthouses on the

upper floors; roofs will turn into open

terraces with gardens, lawns, pergolas and

swings, pilates and yoga areas.

MKAD

Kremlin

Sady Pekina luxury residential complex

on Mayakovsky street is two 13-story

buildings, 330 premium class uniquely

designed apartments, two-level under-

ground parking for 427 cars, high-quality

materials, convenient layouts, a lot of

Gardens will decorate not only the roofs

but also the courtyards and halls. This is

the main specific feature of the project

reflected in its name. Pekin Hotel

infrastructure is available for the

development's residents.

Number of apartments: 330 apartments & 30 penthouses

Total build-up area: 70,831 sq.mSady Pekina Residential Complex

Sady Pekina

Residential

Complex

Mayakovskaya metro station

3 км

М

Azbukha Vkusa grocery store

1,2 км

300 м

7 theaters; over 50 cafes, coffee houses and restaurants; over 50 banks; about 40 beauty and SPA salons; 5 kindergartens and schools; 4 higher educational institutions; 3 fitness centers; 5 supermarkets; over 10 various medical institutions.

Infrastructure:

B-club - #bottom-searchers & #billion-makers clubis a private real estate investor club.

The Club's strategy is to search and acquire highly liquid assets

with outstanding value upside worldwide.

Sincerely yours,

Vladimir TribratManaging Partner, PhD B-CLUB

B-club