1. Income Generating Fund 2PROPERTY REPORTLast updated 20.11.2012

2. Propfund 2 acquired properties and performance dataWith the equity the fund has raised to date it has acquired and reserved atotal of 35 apartments worth 2,374,500. The apartments are located in German Bank Financing 80% LTV Total amount of bank fi-2 separate projects in Berlin and Freiberg. With over 95% occupancy rate, nancing based on the purchasethe properties are generating a combined rental yield of 8.2%. The fund price. Average interest rate ofhas secured over 80% loan-to-value financing from German banks with3.4% fixed for 10years.low fixed interest rates for 10 years. All projects have been purchased belowthe current market value and the fund managers expect a steady increasein the rental income and the value of the portfolio in the next few years. Rental Income 194,768 Total Annual rental incomeBerlin, Schnefeld Freiberg, Germany per year from all properties in the portfolio Rental Yield 8.2% Average rental yield from all properties in the portfolioPrice: 1,698,000Price: 676,500Rental income: 125,900Rental income:68,868 Portfolios purchased forYield: 7.41% Yield: 10.18 % 2,374,500 Includes 2Sqm: 1,611.06Sqm: 1,084 portfolios of 35 units andNo. of units:24No. of units: 1124 car spacesCar spaces:24Building Year:1900Building Year: 1997Refurbished: 2012Mortgage (MBS): 79,5% LTV Mortgage(Sparcasse): 81% LTVPropfund Equity: 522,744Propfund Equity: 192,406Current portfolio value 2,531,984 Measuring isannual costs & cash surplus projection based on a purchase factor which is 13 timesannual rental income 194,768 annual rental incomeProperty management 4.5% 8,765Mortgage interest repayment 3.4%65,365Fund Management 4% 7,791Cash surplus per annum 61,062 Annual rentalFund Administration 4.1% 7,986 income leftover afterTotal Annual running costs: 89,907all expensesSinking Fund 0.32% 6,474Mortgage repayment 2% 38,000Purchase CostsAnnual Profit after mortgage repayment60,387 PURCHASE PRICE 2,374,500Payout based on this investment8.44%Notary Fee 1.7%27,931Stamp Duty 4.4% 103,678propfund investment levels and projected returnsDue Diligence6000Equity Invested 30,00050,000 100,000250,000 Bank Fee 0.44% 10,500Investment Period10 years 10 years10 years10 years Broker Fee 3.9%92,541Total Annual Payments (70%) 21,00035,000 70,000 175,000 Total Purchase 2,615,150(Assumes 7% per annum)(2,100pa)(3,500pa)(7,000pa) (17,500pa)Profit from the property sales (100%) 30,00050,000 100,000250,000Bank Financing & equity requiredTotal profit over 10 years (170%) 51,60085,000 170,000425,000 German Bank(Excluding initial equity) 1,900,000Financing 80% ltvTotal returns over 11 years (270%)81,000135,000270,000675,000(Including initial equity)Propfund Equity715,150 3. ProPfund germany has shortlisted similarProjects for acquisition in novemBer 2012.The Propfund 2 acquisition team has shortlisted four residential apartmentblocks consisting of 106 apartments with underground car parking in popularresidential areas in Berlin.Berlin, neuklln Price: 1,280,000 Rental income: 93,535 Yield: 7.31% No. of units:19 Mortgage:71% LTV Equity required: 526,228Berlin, trePtoW-kPenick Price: 800,000 Rental income: 61,920 Yield: 7.74% No. of units:8 Mortgage:76% LTV Equity required: 289,080Berlin, temPelhof Price: 1,450,000 Rental income: 140,480 Yield: 9.69% No. of units:42 Mortgage:75% LTV Equity required: 519,260Berlin, sPandau Price: 1,600,000 Rental income: 120,000 Yield: 7,5% No. of units:37 Mortgage:75% LTV Equity required: 572,120 4. Propfund Germany 2 GmbH & Co. KGFriedrichstrae 82,10117 Berlin-MitteT: +49 (30) 499 05 09 50E: info@propfund.comwww.propfund.com