EconomyInvestment PotentialReal Estate

Novosibirsk

2010 г

Строительство 4,50%

Прочие услуги 30%

Сельское хозяйство 7,50%

Торговля 17%

Связь 10%

Транспорт 7%

Промышлен-ность 24%

Industry24%

Transport7%

Telecommunications10%

Trade17%

Agriculture7.5%

Construction4.5%

Other30%

Novosibirsk - is a megalopolis, third in Russia by size. The geographical center of Russia.Population: 1.397 million (est. January 1, 2009)Area: 506.67 sq. km

1. Economy 2. Logistics3. Scientific potential4. International status5. City development in 20096. Commercial property

structure7. City investment potential to

2030 .

The economy of Novosibirsk Oblast is highly diversified. The economy is distinguished for maintaining a proper balance between industrial and farming sectors, and a high potential of scientific innovations. Situated in a region with an economy not based on resource supplies, the city does not depend on the international demand for raw materials. The added value produced in Novosibirsk and Novosibirsk Oblast largely results from the use of intellectual resources or advanced processing.

The city economy is sustainable in periods of instability.

1.

The city is the fourth in Russia as to the amount of retail turnover and the fifth as to the monthly income level of its population .

The amount of Gross Regional Product of Novosibirsk Oblasthas grown in 2008 by 9% relative to that of 2007, reaching RUB 434 bln (compare to a 6% growth of the gross domestic product of the Russian Federation).

In periods of economic growth, the pace of city economy development is higher than the average for the country.

1.

2000

2008

2000

2008

0%

50%

100%

150%

200%

250%

ВРП Новосибирской области ВРП России

to 2.3 times

to 1.8 times

2007

2008

2007

2008

94%

96%

98%

100%

102%

104%

106%

108%

110%

ВРП Новосибирской области ВРП России

+ 9%

+ 6%

For the period of 2000 to 2008, the gross regional product of Novosibirsk Oblast has grown 2.3 times (compare to 1.8 times for the gross domestic product of Russia)

Novosibirsk Oblast is one of top eight regions of Russia most effectively coping with the crisis (according to the rating of the Ministry of Economic Development of the Russian Federation)

GRP of Novosibirsk GDP of Russia

GRP of Novosibirsk GDP of Russia

Novosibirsk is a major transportation hub in Siberia

1. Economy

2. Logistics3. Scientific potential4. International status5. City development in 20096. Commercial property

structure7. City investment potential to

2030

The geographic situation of the city is the basis for its attractiveness for investment.

2.

Novosibirsk Oblast is a place of intersection for traffic arteries of Western Siberia including the Trans-Siberian Railroad, three federal highways, a port on the river Ob, one of the largest in Siberia, and an international air hub, Tolmachevo.

Novosibirsk provides connection between Siberia, Far East, China, India, Central Asia (Kazakhstan, Tadzhikistan, Uzbekistan) and European regions of Russia and, then, Europe.

NOVOSIBIRSK

St-Petersburg

MOSKOW

R U S S I A

C H I N A

KAZAKHSTAN

SiberianFederalDistrict

EUROPE

MONGOLIACentral Asia

Far East

Krasnoyarsk

Irkutsk

Norilsk

Novosibirsk is a major research and development center in Siberia

1. Economy

2. Logistics

3. Scientific potential 4. International status5. City development in 20096. Commercial property

structure7. City investment potential to

2030

The scientific potential of the city is the main resource for its development.

3.

The following scientific centers are situated in Novosibirsk and its suburb:

The city has 47 higher education institutions: 10 academies, 14 universities and 23 institutes.

Akademgorodok KoltsovoScience Town

Academy ofAgriculture Science

A scientific complex of 22 research institutes of the Russian Academy of Science, Siberian Branch playing an important role in the development of Russian and international science. Established in 1957, Akademgorodok is the Russian counterpart of Silicone Valley.

Founded in 1974, Koltsovo, a virology and biotechnology center, was granted the status of Science Town in 2003.

This is a complex ofagriculture researchinstitutes.

Technology Park

This is a complex comprising industrial facilities, laboratories, offices and residential buildings for researchers. Based on the resources of Akademgorodok, its construction was launched in 2007 for a purpose of creating an environment encouraging for innovation. Presently, the Technology Park is the most important project among those aimed at providing support for science-intensive industries. The Technology Park is intended to provide development in four principal areas: biomedicine and biotechnology, information technologies, power electronics, and instrument making. In 2009, there were more than 300 innovation companies in Akademgorodok featuring RUB 11 bln of annual revenue and RUB 1.8 bln of export contracts.

Representation of international brands

1. Economy 2. Logistics3. Scientific potential4. International status

5. City development in 20096. Commercial property

structure7. City investment potential to

2030

Owing to the high purchasing power and activity of its population, the city is an attractive place of business for international corporations.

4.

Factories PepsiCO, Heineken, Mars

Retail shops IKEA, Ashan, Metro, LeroyMerlin, Mosmart

Sales authorized dealers of of motor Audi, Mersedes-Benz, BMW, Lexus, Porsche, Volksvagen, vehicles GM ( Chevrolet, Opel, Hammer), Peugeot, GM DAT (Daewoo), Mazda, KIA Motors, Honda, HINO.

Banking banks operating in the city including 80 operating on the all- Russian scale. There are some fully foreign-owned banks such as: Raiffeisen, BSGV, Barklais and Nordea in the region as well.

Shops Clothing and footwear brand stores Max Mara, Mexx, Markc&Spenser, Sisley, Zara, Adidas, Puma, Ecco, Salamander, Carnaby, Carlo Pazolini, Chester and other.

Hotel business Hilton.

Novosibirsk is a member, the only one in Russia, of the World Technopolis Association.

Representations of foreign countries

General consulate of Germany since 1994 .

Byelorussian Embassy since 2000

General consulate of Bulgaria since 2003

Consulate of Kyrgyzstan since 2004

Consulate of Uzbekistan since 2007

1. Экономика2. Logistics3. Scientific potential4. International status5. City development in 20096. Commercial property

structure7. City investment potential to

2030

5. Industry, transport and science development in 2009

Permanently active in raising investments, the city authorities provide a friendly environment for business operations.

Plants - Launching the Licolor brick-making plant. Property acreage: 7 ha. Investments: US$ 67 mln. Estimated payback period: 5 years. Plant capacity: 63 million bricks a year. - Launching a fiber-optic cable production plant in Berdsk, satellite town of Novosibirsk. - Commencing with construction of plant for advanced treatment of grain. Property acreage: 17 ha. Investments: US$ 225 mln.. - Completing preparation of a site for construction of a lithium-ion battery production plant. Investments: US$ 248 mln. Roads Commissioned: - a new motorway Koltsovo-Akademgorodok. Investments: US$ 6.7 mln. - a traffic intersection at Inya Railroad Junction. Investments: US$ 30 mln. - Kirova Street overpass. Investments: ca US$ 37 mln.

The construction of the first module for the Technology Park of Novosibirsk has been accomplished. The module is to be completely equipped within the first quarter of 2010. Projects for construction of the second and third modules intended for nanotechnology production (precise metal processing, special galvanic processes, thermal processing) and accommodation of a business incubator for small innovation businesses have been prepared. The Technology Park area is 48 ha with immovable property of 330,000 sq m total space located therein. Investments: US$ 566 mln including US$ 140 mln in 2009 composed of US$ 123.3 mln from the Oblast, city and federal budget resources and US$ 16.7 mln of private investments .

Technology Park

The demand for commercial and residential immovable property still remains unsatisfied.

5.

Housing Commercial property

Commissioned >> 1,200,000 sq m

Offices - Commissioning the Cobra, a class "A" office center S= 18,000 sq m. - Opening a class "B" business center+ Lanta Center S= 23,000 sq m. Investments: US$ 34 mln.

Warehouses - Commissioning a class "A" logistics center, S= 121,000 sq m. Investments: US$ 135 mln.

- Tolmachevo Logistics Park. Credit resources to an amount of US$ 137 mln for financing of the first stage of construction are provided by VneshEconomBank (Bank for Development and Foreign Economic Affairs) S= 285,700 sq m.

Trade - Opening the second Metro Cash & Carry trade center, centers Investments: ca US$ 30 mln.

- Opening the Golden Park trade center (30,000 sq m), Investments: US$ 40 mln.

- Opening the second Auchan trade center, Investments: US$ 30 mln.

Exhibition - Commencing with construction of an exhibition center, centers the largest one this side from the Urals. S= 60,000 sq m.

Investments: more than US$ 100 mln.

Social facilities

Commissioned: 40 buildings of 182,200 sq m total space.

Construction, logistics and retail trade development in 2009

А+В 22%

С 38%

D 40%

1. Economy2. Logistics3. Scientific potential4. International status5. City development in 20096. Commercial property

structure

7. City investment potential to 2030

6. Commercial property composition in 2009:

WarehousesNovosibirsk is a major logistics center in Siberia. More than 1.6 mln sq m of warehousing facilities are situated in Novosibirsk including about 420 thousand sq m of those rated as class "A".

Trade centers About 60 retail trade centers of approximately 900 thousand sq m total space are operating in Novosibirsk Oblast (up to 95% of them in Novosibirsk). The total amount of trading space in Novosibirsk Oblast is 2.5 mln sq m including more than 2 mln sq m in Novosibirsk. .

Office spaceIn 2009, the amount of office space was about 2 mln sq m (up to 25% of that amount being commissioned in the last 4 years).

According to RosBusinessConsulting,a leading Russian consulting agency,in 2008 Novosibirsk was the thirdin the list of Russian cities mostattractive for business.

235265

340287 285

700

438

528

334

0

100

200

300

400

500

600

700

Склады Офисы Торговыеплощади

Новосибирск

Санкт-Петербург

Москва

Number of high-quality space in square meters per 1000 population:(Source: GVA Sawyer )

Warehouses Office Trading space

Novosibirsk

Sankt-Petersburg

Moskow

The steady demand for leased space is caused by the shortage in space that meets quality standards.

8%

92%

87,40%

12,60%

We expect to buy for our investors real estate items with an annual rate of return not less than 15-20%.

6. Potential of the Commercial Real Estate Market

Offices In July 2009, the percentage of available space in office centers of Novosibirsk (estimated for 47 items of property rated "В", "С" and "D") was 8%. Taking "A" class business centers into account, the percentage of vacant space was 12.6%. (Source: RID Analytics)

Demand and supply are in balance. Owing to the high occupancy factor, investors may be sure that they receive

secure and long-term proceeds.

The current adjustment of prices offers good opportunities for investors having enough funds of their own.

Average sell prices in the fourth quarter of 2009 - Office space: US$ 2067 per sq. m- Warehouse space: US$ 607 per sq. m-Shopping space: US$ 3363 per sq. m

The retail market of Novosibirsk shows a significant potential and remains attractive because of different rates of returnas compared to developed countries

In the fourth quarter of 2009, average rates of rent were as follows:- Office space: US$ 215 per sq. m a year- Warehouse space: US$ 71 per sq. m a year- Shopping space: US$ 428 per sq. m a year

А+B+C+D

B+C+D

1. Economy 2. Logistics3. Scientific potential4. International status5. City development in 20096. Commercial property

structure7. City investment potential to 2030

The diversified economy, situation at a traffic intersection, R&D base and intellectual resources are main components for investment appeal of Novosibirsk.

7.

According to estimates made by the Mayor Office of Novosibirsk,2010 will show a growth of the retail trade turnover by 11.4%, average wages by 10.7%, number of motor vehicles per 1000 population by 2%, and gross regional product by 1%.

City development plans to 2030 include:

Population growth by 22%, up to 1.7 million

Housing stock growth 2 times, up to 51 million sq. m

City limits expansion by 28%, up to 649.23 sq. km

Transport infrastructure development. Subway lines growth by 91.4 km.Construction of the Southern Bypass Highway, Academic Highway, and several bridges over the rivers Ob and Inya.Construction of a logistics park, the largest in Siberia.

Development of knowledge-intensive industries. The implementation of the Technology Park Project in Akademgorodok will result in creation of 13,000 employment vacancies and accommodation for more than 200 resident innovation companies. The annual income of the companies will exceed US$ 650 bln.

Address: 909 office, 2, Kommunisticheskaya street, Novosibirsk, Russia, 630007Tel/Fax: +7(383) 3-281-282 www.verbacapital.ru

License number: 21-000-1-00604 of October 21, 2008 to carry on management of investment funds, unit investment funds and non-governmental pension funds.