The entire contents of this presentation are CONFIDENTIAL and are intended for the sole and limited use of the Qualified Purchaser to whom it is distributed.

Real Estate Consulting Resources and Services Water and Power Employees’ Retirement Plan

PROPRIETARY & CONFIDENTIAL

May 10, 2017

Contents Townsend Presenting Team Biographies

Townsend Firm Overview

Townsend Real Asset Advisory Services

Investment Solutions for WPERP

Appendix A –Townsend View of the World

Appendix B – WPERP Consulting Team and Senior Professional Biographies

2

Jack Koch, Principal

Jack Koch is a Principal of The Townsend Group and Head of Townsend’s Global Advisory Services. Additionally, Mr. Koch is the lead Principal and primary relationship manager for a number of the firm’s Advisory Consulting clients, which include U.S. and international public pension plans, taxable investors, and foundations. Mr. Koch has extensive portfolio level experience in the creation and implementation of investment policies, strategies and guidelines. His experience also includes and provision and advice on program structuring across a broad range of risk/return objectives, manager selection and due diligence, performance analytics and monitoring.

Prior to joining The Townsend Group, Mr. Koch worked for National City Bank within the Structured Finance Group. His responsibilities included the analysis and ultimate buy recommendations on financing opportunities in the syndicated loan market. Additionally, he managed a multi-industrial portfolio of highly leveraged, non-investment grade loans. Mr. Koch has also spent a considerable amount of time living and working in Latin America while employed with a leading global retailer.

Mr. Koch is an Advisory Board member and contributor to several real estate associations, a member of PREA, and a frequent speaker and moderator at industry and client conferences.

Mr. Koch received a MBA from The Weatherhead School at Case Western Reserve University and BA from Lafayette College.

Industry Experience: 13 years Townsend Tenure: 10 years

Jennifer Young Stevens, Principal

Jennifer Stevens joined The Townsend Group in 2004 and is currently a Principal based in the San Francisco office. Ms. Stevens is also the lead Principal and primary relationship manager for a number of the firm’s Advisory clients, which include U.S. public pension plans, Australian superannuation plans and family offices. Ms. Stevens provides clients with information related to Strategic Planning, Investment Planning, Manager/Fund Due Diligence, Benchmarking, and Portfolio Analysis. Programs include investments in a wide range of structures including separate accounts, commingled funds and co-investments. On behalf of The Townsend Group, Ms. Stevens is an Advisory Board member for the Global Real Estate Sustainability Benchmark (GRESB) and serves as Townsend’s signatory representative for the United Nations Principals of Responsible Investment (UN PRI). Ms. Stevens also represents Townsend’s investor interests on multiple Advisory Committees and is a frequent speaker/panelist at industry events. Ms. Stevens is a member of the Pension Real Estate Association (PREA) Membership Committee, the California State Association of County Employees’ Retirement Systems (SACRS) and Urban Land Institute (ULI). Ms. Stevens was awarded the Institutional Investor/Money Management Intelligence designation for Rising Stars of Public Funds in 2013 and the inaugural GRESB Investor Leadership Award in 2016. Ms. Stevens received a Bachelor of Business Administration from Ohio University. Ms. Stevens was appointed to the Board of Directors of Ohio University’s College of Business Society of Alumni & Friends in 2014 and currently serves as its elected President.

Industry Experience: 12 years Townsend Tenure: 12 years

WPERP – Presenting Team

3

Robert Miranda, Vice President

Mr. Miranda is a Vice President at The Townsend Group, specializing in real asset strategic and investment planning for institutional clients. He has over 13 years of combined experience in advisory, corporate finance and institutional investments. He has worked on a number of complex real estate assignments/transactions across both domestic and international markets, totaling over $3.8 billion in aggregate value. Prior to joining The Townsend Group, Mr. Miranda led the real estate, lodging and leisure practice at Moss Adams Capital, a boutique investment bank, where he advised clients on strategic planning, capital formation and M&A. His prior experience includes investment and development management for Unico Properties and global real estate advisory for Jones Lang LaSalle. Mr. Miranda began his career in commercial banking at Bank of America. Mr. Miranda holds a BS from Marshall Business School at the University of Southern California and an International MBA from IE Business School in Madrid, Spain where he was a Foundation Scholar. He also completed the Wharton Global Consulting Practicum at the University of Pennsylvania. Mr. Miranda is fluent in English and Spanish.

Industry Experience: 16 years Townsend Tenure: <1 year

WPERP – Presenting Team

4

Leading Global Solution Provider Cleveland | San Francisco | London | Hong Kong

$173.1B of AA | $15.0B of AUM | 100+ Employees

3,500 Advised Investments| 400+ Partner Meetings Annually

Competitive Sourcing All brokered channels, PLUS

500+ established partners

Investor Friendly Customized structure

Access of wholesale fees/terms

A Strategic Partner Partners motivated to provide prime deals

without fear of conflict or competition

Highly Selective Invested in 3%1 of

deals sourced since 2011

Broadly Diversified By deal, investment structure, region

Consistent Outperformance Average top quartile performance

over multiple market cycles2

Townsend Investment Proposition

5

1Based on all special situation investments reviewed. 2Determined by comparing the weighted average top quartile net IRRs of all non-core funds of the applicable vintages (2007, 2008-10-11, 2012, 2015) with the IRR of Townsend’s corresponding mandates. As of September 30, 2016, Townsend had assets under management of approximately $15.0 billion. As of September 30, 2016, Townsend provided advisory services to clients who had real estate/real asset allocations exceeding $173.1 billion. Please refer to back pages for additional disclosures and definitions. Employee numbers as of 4Q16. All other information prepared as of September 2016. Please refer to the disclosures at the end of this presentation. There can be no assurance that any account will achieve results comparable to those presented. Past performance is not indicative of future results. Investing involves risk, including possible loss of principal.

GLOBAL REAL ESTATE PLATFORM WITH $15.0B IN AUM AND $173.1B IN ADVISED ASSETS

Founded in 1983

Offices in Cleveland, San Francisco, London, and Hong Kong

Approximately 70 Investment Professionals, 100 Employees

Execution advice has resulted in outperformance and capital appreciation for our clients and their beneficiaries

Global Investment Platform

6

1Net IRR is the net return earned by an investor over a particular time frame, including the performance of both realized and unrealized investments, at fair value. 2The Since Inception Net Return for active Separate Accounts (Global Diversified) reflects the net IRR for each Townsend mandate in local currency weighted by the net asset value in USD as of quarter end. Townsend Separate Account mandates have varying 1) vintages, 2) return/risk parameters and objectives, 3) portfolio currencies, 4) investment styles and 5) investment structures. Converting all Townsend Separate Account mandates to USD at a particular quarter end could increase or decrease aggregate performance based on the time of conversion. 3Reflects committed capital as of 3Q16 in USD. TREA Strategy (Global Non-Core) returns, AUM and Core-Plus Strategy (U.S. Core) returns are as of 3Q16, Separate Account returns, AUM are as of 2Q16. The value of unrealized investments is subject to change. The number of unique clients would be less than the number of mandates as a single client could participate in multiple strategies. As of September 30, 2016, Townsend had assets under management of approximately $15.0 billion; and provided advisory services to clients who had real estate/real asset allocations exceeding $173.1 billion. Please refer to back pages for additional disclosures and definitions. Employee numbers as of 1Q17.

Advisory Accounts

1986

$173B

NA

Separate Accounts (Global Diversified)

1996

13.4%2

$10B

TREA Strategy (Global Non-Core)

2007

13.8%1

$3.4B3

Core-Plus Strategy (U.S. Core)

2010

15.0%1

$273.8MM3

INCEPTION

S.I. NET RETURN

AUM | AA

INVESTMENT MANAGEMENT

54 37 9 1 MANDATE COUNT

Townsend Advisory Services

DEDICATED CONSULTANT WITH $173.1B IN ADVISED ASSETS

7 The clients included above were not selected based on performance-based criteria and were selected based on diversification of client types across Townsend service lines (advisory and discretionary). It is not known whether the listed clients approve of Townsend or the services provided.

Representative Clients

Pensioenfonds UWV

New York State Common Retirement Fund

Teacher Retirement System of Texas

American Electric Power

Large US Corporate Plan*

University of California

University of Wisconsin

Australian Superannuation Plan*

* Contract requires confidentiality Public Pension 86%

Private Pension 6%

Sovereign Wealth Fund 5%

Superannuation Fund 2%

HNW <1%

Foundation/Endowment <1%

ADVISED ASSETS AS OF 3Q16

TOWNSEND SOLUTIONS

CUSTOM SOLUTIONS PACKAGED SOLUTIONS

Industry Analysis Strategic Planning

Investment Objectives & Policy Investment Pacing Model

Investment Research & Due Diligence Investment Selection

Portfolio Construction & Management Legal and Tax Review* Portfolio Monitoring

Risk Management Performance Measurement & Reporting

Client Meetings / Presentations Special Projects

Access to Offering Pipeline

Access to Underwriting Access to Sector / Region Specialists

INVESTMENT STRUCTURES

Primary Funds Specialized Funds

Secondary Interests Co-Investments

Joint Ventures/Clubs

ASSET CLASS

Real Estate Infrastructure

Timber Agriculture

Customized Investment Solutions

CORE SET OF INVESTMENT SKILLS USED TO CREATE CUSTOM REAL ASSET SOLUTIONS

8 *Townsend coordinates tax review with an outside tax consultant.

GLOBAL STRATEGIES

Real Assets Core

Non-Core Special Situations

Regional Mandates

MANAGEMENT COMMITTEE INVESTMENT COMMITTEE GLOBAL MACRO STRATEGY COMMITTEE

Terry Ahern Anthony Frammartino Joe Olszak

Terry Ahern John Schaefer Martin Rosenberg Chris Lennon

Jay Long (IC Chair) Anthony Frammartino Prashant Tewari

Terry Ahern Jay Long John Schaefer Asieh Mansour1

Prashant Tewari

ADVISORY SOLUTIONS INVESTMENT STRATEGY & UNDERWRITING PORTFOLIO MANAGEMENT

Jack Koch John Schaefer Anthony Frammartino

Steve Burns Micolyn Magee Rob Kochis Dick Brown Chris Cunningham Ishika Bansal Mike Stark Brandon Steinhagen Doug Gurr Albert Adom

Martin Rosenberg Jennifer Young Dan Stenger Seth Marcus Jason Puchmeyer Jeff Leighton Robert Miranda Ryan Skubic Felix Fels Christian Nye

INVESTMENT STRATEGY

Prashant Tewari

CO-INVEST/JVs

Rob Davies John Kropke Zachary Segal Scott Miller Rob Caravella Laurie Woolmer Brent Lieberman Norm Glazer

FUNDS/CLUBS

Scott Booth Joseph Tang Duncan Graham Ryan Komppa Mate Zuzic Zane Hemming

REAL ASSETS

Mike Golubic Lilia Stoyanova Kevin Rivchun

Chris Lennon Tony Pietro Jeff Barone Joe Davenport Brian Woods Mike Petras Jeff Deal Jake Heacox Dan O’Connell

Morgan Angus Min Lim Kelson Cheng Nick Rush Lu Liu Daniel Choi Hyun Tae Yim

MARKETING & BUSINESS DEVELOPMENT BUSINESS OPERATIONS REPORTING & ADMINISTRATION

Adam Calman Nicholas Wong John Boynton

Nicole Smeader Kate Bizga

+2 Professionals

Joe Olszak, Chief Operating Officer Bryan Ahern, Chief Information Officer

Ron Weihrauch, General Counsel Holly Cavalier, Chief Compliance Officer

Brian White, Chief Financial Officer +20 Professionals

Sarah Cachat +7 Professionals

Townsend Global Investment Platform

COMPREHENSIVE GLOBAL REAL ASSET COVERAGE WITH DEEP REGIONAL AND SECTOR EXPERTISE

9 1Exclusive Senior Advisor to The Townsend Group Updated 04/25/17

Townsend Regional and Sector Specialists

A GLOBAL FOOTPRINT OF INVESTMENT SKILLS WITH REGIONAL AND SECTOR EXPERTISE

10 Updated 04/10/16

North America

Jay Long John Schaefer Scott Booth Chris Lennon Tony Pietro

Jeff Barone Ryan Komppa Brian Woods Mate Zuzic Zane Hemming

Latin America

Mike Golubic Chris Cunningham

Public Markets

Chris Lennon Prashant Tewari

Special Situations Investing

Rob Davies John Kropke Zach Segal Scott Miller

Rob Caravella Laurie Woolmer Brent Lieberman Norm Glazer

Infrastructure, Agriculture & Timber

Mike Golubic Jay Long Dick Brown Prashant Tewari Morgan Angus

Lilia Stoyanova Ishika Bansal Kevin Rivchun

Europe

Morgan Angus Lilia Stoyanova Duncan Graham

Nick Rush Lu Liu

Asia

Nick Wong Joseph Tang Min Lim

Kelson Cheng Daniel Choi Hyun Tae Yim

Cleveland | San Francisco | London | Hong Kong

Mike Golubic

Principal

Jay Long

Principal, IC Chair

Prashant Tewari

Principal

Dick Brown

Principal

Morgan Angus

Principal

Lilia Stoyanova

Senior Vice President

Ishika Bansal

Senior Vice President

Kevin Rivchun

Vice President

Townsend developed an early investment expertise in Infrastructure, Agriculture and Timber

Investor positions in real assets date back to the 1990’s and total approximately $14 billion

Townsend Real Assets Expertise

Real Assets Specialists

Title Townsend Experience

Industry Experience

Mike Golubic Principal 13 13

Jay Long IC Chair, Principal 23 23

Prashant Tewari Principal 3 19

Dick Brown Principal 18 43

Morgan Angus Principal 2 18

Lilia Stoyanova Senior Vice President 2 8

Ishika Bansal Senior Vice President 6 10

Kevin Rivchun Vice President 9 13

11

Terry Ahern

Co-Founder and CEO

Jay Long

Principal, IC Chair

Anthony Frammartino

Principal

Martin Rosenberg

Principal

John Schaefer

Principal

Prashant Tewari

Principal

Christopher Lennon

Principal

Townsend Investment Committee

Reviews all investment recommendations, strategic plans, investment plans, fund amendments, major initiatives, etc.,

Reviews investment’s merit on a stand-alone basis, as well as its fit within each client portfolio

Comprised of seven members who average 20 years of industry experience

Investment Committee

Member Title

Townsend Experience

Industry Experience

Terry Ahern CEO and Co-Founder 34 34

Jay Long IC Chair, Principal 23 23

Anthony Frammartino Principal 13 15

Martin Rosenberg Principal 11 14

John Schaefer Principal 6 21

Prashant Tewari Principal 3 19

Chris Lennon Principal 10 16

12

Terry Ahern

Co-Founder and CEO

Jay Long

Principal, IC Chair

Prashant Tewari

Principal

John Schaefer

Principal

Asieh Mansour Senior Advisor to

Townsend

Develops and adapts the Townsend real assets global view

Shapes strategic and tactical investment strategy on behalf of Townsend clients

Understand complex market opportunities and risks

Comprised of five members who average over 20 years of industry experience

Townsend Global Macro Strategy Committee

13

Global Macro Strategy Committee Member

Title Townsend Experience

Industry Experience

Terry Ahern CEO and Co-Founder 34 34

Jay Long IC Chair, Principal 23 23

Prashant Tewari Principal 3 19

John Schaefer Principal 6 21

Asieh Mansour Senior Advisor to Townsend 3 25

Informed Perspective

A GLOBAL INVESTMENT THESIS INFORMS RESEARCH, SELECTION AND PORTFOLIO CONSTRUCTION

14

MARKET DATA MARKET RESEARCH TOWNSEND TEAM

GLOBAL MACRO STRATEGY COMMITTEE

VIEW OF THE WORLD

IPD

Bloomberg

Reuters

Morningstar

Manager research

Green Street Advisors

PREA

LaSalle

AEW

Fund due diligence

Special situations

Consultants

Investment Committee

Sector specialists

Townsend Information Advantage

A ROBUST, PROPRIETARY DATA WAREHOUSE

15 Data as of 3Q16

INVESTMENT MANAGERS

INVESTMENT OFFERING

INVESTMENT PERFORMANCE

PUBLIC REIT MANAGERS

38 YEARS OF PERFORMANCE DATA

8 DEDICATED PROFESSIONALS

350+ MANAGER MEETINGS ANNUALLY

1,007 FUNDS OPEN FOR INVESTMENT

1,063+ REAL ASSET POOLED FUNDS OPEN FOR INVESTMENT GLOBALLY

$344 B IN GROSS ASSET VALUE

$472 B IN GLOBAL STRATEGY OFFERINGS

2,038+ REAL ASSET MANAGERS TRACKED

MASTER LIBRARY TERM SHEETS OFFERING MEMORANDUM INVESTMENT PERFORMANCE

QUALITATIVE MANAGER MEETING NOTES PORTFOLIO REVIEWS ADVISORY BOARDS

QUANTITATIVE RISK/RETURNS BY MANAGER, FUND, VINTAGE AND STRATEGY

769 MANAGERS ACTIVELY RAISING CAPITAL

363+ DIRECT INVESTMENT MANAGERS

Fran PellegrinoOffice Manager

Bryan AhernChief Information

Officer

Trevor OstrowskiSr. Network

Architect

Ron WeihrauchPrincipal,

General Counsel

Joey HepburnAssistant

Patti BarrosAssistant (SF)

Cheryl GioittaAssistant

Theresa GallagherReceptionist

Faith WiddowsonAssistant (London)

Arneece JonesPerformance

Manager

Nick MillerSr. Systems

Software Engineer

Nick Mone’Associate

Tina SchutzLegal

Administrator

Brian White, Principal

CFO

Matt RacketaFoF Controller

David RehmarFund Controller

Lauren RomickFund Accountant

Sarah CachatPrincipal

Vicki SackAdmin Asst.

Aimee May Compliance

Associate

Kristen BinderController

Amber KwallekAdmin Asst.

OPERATIONS

Joe Olszak, Principal, Chief Operating Officer

PERFORMANCE/ADMINISTRATION

SYSTEMS

Holly CavalierChief Compliance

Officer

Katherine Oghbuehi

Fund Accountant

James BannonFund Admin/Sales

FUND ACCOUNTING/

ADMINISTRATION

CORPORATE ACCOUNTING

Stephanie LundCo-Investment

Controller

Denise Marimberga

HR/Recruiting

Greg BrancazioFund Admin/AccountantBrett McGrigg

Office Assistant

Mike FrenchSoftware Engineer

Jake DavisSenior Accountant

Nicole SmeaderSr. Vice President

Amanda MillerAssociate

MARKETING SUPPORT

Sarah Cachat Principal

Client Administration

Joe Olszak Chief Operating Officer

Brian White Chief Financial Officer

Townsend Client Administration, Reporting & Systems

16

Townsend Client Administration, Reporting & Systems RESOURCES Administration, Reporting and Systems (overseen by Sarah Cachat and 7 team members)

‒ 3 Client Administration, 2 Performance Measurement, 2 Programmers/Developers

Accounting and Finance (overseen by Brian White and 10 dedicated accounting professionals)

‒ Audits of 30 fund-of-fund vehicles, as well as Townsend consolidated company in U.S., U.K. and H.K

‒ External reporting to 1,000+ investors (monthly, quarterly and annual)

‒ Cash monitoring, tax, custodial, compliance with SOC Type II

Office locations in Cleveland and London

AREAS OF FOCUS

Client Administration

Performance Measurement

Internal Controls

Townsend Performance Track Record

Data Collection (Client, Fund, Open End, REITs, Due Diligence)

Townsend Applications (TIPS, Data Collection Website, TIPSM, TOM)

COVERAGE

Client Level: 3,701 quarterly client level positions representing $154 billion (net asset value).

Fund Level: 589 active closed-end funds representing $294 billion and 74 active open-end funds representing $335 billion (gross

asset value).

1,735 Real Estate Managers Tracked; 308 Real Asset Managers Tracked

17

Data as of 3Q16

Strategic and Investment Planning

CONSTRUCT AND MANAGE A CUSTOM REAL ASSET INVESTMENT PROGRAM

18

PORTFOLIO CONSTRUCTION

PORTFOLIO MONITORING

ASSESS & ADAPT

STRATEGY STRATEGY DESIGN INVESTMENT

PLANNING

Understand investment objectives

Review risk tolerance and

parameters

Conduct program review

Define key strategy elements

Objectives

Risk parameters

Benchmarks

Roles & responsibilities

Create investment pacing model

Consider exposure to market risk

Consider tactical market views

Develop portfolio simulations

Source & select investments

Construct, manage, administer

Seek opportunity to create value

Monitor performance/positioning

Focus on investments & capital

structure

Cover all client investment positions

Assess strategy & investment plan

Adapt for opportunity & risks

Due Diligence and Underwriting

RIGOROUS, SYSTEMATIC ANALYSIS YIELDS BETTER CLIENT OUTCOMES

19

• Asset-by-asset review

• Peer group and vintage year

(realized vs. unrealized)

• Study of mistakes

• Style drift

• Growth in fund sizes

• Capital pacing

• Pre-specified investments

• Pipeline

• Depth, breadth, turnover

• History, culture, ownership

• Experience in execution

• Sourcing

• Asset management

• Reference checks

• Performance attribution

• Focus on creating franchise

value

• Parents/affiliates

• Prior litigation

• Compensation structure

• Material co-invest capital

• Pooled carried interest

• Clawback provisions

• Moderate catch-up

• Sufficient carry dispersion

• Vesting schedule

• Exclusivity

• Investment allocation

• Portfolio constraints

• Investment guidelines

• Investment process

• Reporting and transparency

• Key person triggers

• Auditors and accountants

• Legal representation

• Insurance and liability

• Regulatory compliance

• Macro/micro economics

• Geographic focus

• Demographics

• Geopolitical issues

• Foreign direct investment

• Currency

• Concentration

TRACK RECORD

PEOPLE & PLATFORM

ALIGNMENT OF INTERESTS

RISK CONTROLS

MARKET RISK

Townsend Due Diligence & Underwriting Process

DISCIPLINED SELECTION DRIVES VALUE IN FUND AND DIRECT INVESTING

20 Data from 2007-2016. Actual results and developments may differ materially from those expressed or implied herein. Past performance is not indicative of future results.

Robust Pipeline | Unique Deal Access and Sourcing

ORIGINATION

Sourcing & Initial Screening

UNDER CONSIDERATION

Investment Committee Review to Proceed

DETAILED DUE DILIGENCE

Comprehensive Research & Underwriting

APPROVED FOR INVESTMENT

Investment Committee Review & Approval for Investment

3,377

1,521

936

109

TOWNSEND GLOBAL INVESTMENT OUTLOOK

PRIMARY FUNDS

<5% INVESTMENT

RATE

Townsend Global Capital Scale and Influence

MORE THAN $135.6 BILLION OF CAPITAL INVESTED OR COMMITTED SINCE 2004

21 Data as of 3Q16. Actual results and developments may differ materially from those expressed or implied herein. Past performance is not indicative of future results.

$82.8 BILLION

$11.8 BILLION

$ 8.4 BILLION

$32.6 BILLION

565 FUNDS/INVESTMENTS

111 FUNDS/INVESTMENTS

78 FUNDS/INVESTMENTS

155 FUNDS/INVESTMENTS

NORTH AMERICA

EUROPE

ASIA

REST OF THE WORLD & GLOBAL

ACCESS TO UNIQUE GLOBAL OPPORTUNITIES

A robust pipeline across Americas, Europe and Asia

ENHANCED GOVERNANCE AND CONTROL

Negotiating key deal terms, advocating for investors

MITIGATING THE J-CURVE

Seek embedded value and high cash-on-cash returns

ATTRACTIVE FEE TERMS (see example)

Negotiations lead to improvement in gross-to-net spread

Operator focus helps to eliminate double promote

INVESTMENT TRACK RECORD

Creating investment value over time

Townsend Investment Advantage – Platform

A GLOBAL PLATFORM | INFORMATION AND ACCESS | EXTENSIVE DEAL SOURCING NETWORK | TIMELY EXECUTION

22 Not all funds will offer discounts as the one portrayed. The example shown is for illustrative purposes only. Actual results and developments may differ materially from those expressed, implied or projected herein. Please see back pages for additional important disclosures.

Townsend Client Fee Negotiations –Recent Examples

Exeter IV Pramerica VI

Fund Fee for $25 million investor 1.50% 1.75%

Townsend Negotiated Asset Management Fee

1.15% 1.10%

Total Fee Savings .35% .65%

Townsend Client Annual Fee Savings ($25 M Investor)

$87,500 $162,500

Townsend Client Cumulative Fee Savings ($25 M Investor; 8 Year Fund Life)

$700,000 $1,300,000

11.57

14.55 15.38

14.55

7.79

11.04 11.16 12.49

0

5

10

15

20

1-Year 3-Year 5-Year Incept 3Q10

An

nu

aliz

ed

% R

etu

rn

Townsend Real Estate Fund, L.P. as of 4Q16 (net of fees)

TREF NFI-ODCE

Core Portfolio Philosophy

TOWNSEND HAS GENERATED CONSISTENT OUTPERFORMANCE IN OUR CORE REAL ESTATE PORTFOLIOS VIA:

Active management and tiered fee savings (average of – 40 bps) in legacy funds, and

A satellite portfolio within Core that accesses alpha-opportunities within sector

INVESTORS CAN LEVERAGE OUR EXPERTISE ACROSS THEIR ENTIRE CORE PROGRAM OR JUST ACCESS OUR “ALPHA” STRATEGIES:

1. Buying at Discounts – leveraging Townsend’s position to create arbitrage opportunities (fund originations, secondaries) where

Townsend has an informational and positional advantage which enables better pricing

2. Best in Class Execution – Townsend partners with specialist operators and has a long track record of successfully selecting strategies

and choosing the most capable partner

3. Making Relative Value Decisions – We evaluate investments seeking the best risk-adjusted returns based on market conditions. This

analysis is done across property sectors and locations as well as throughout the capital stack and across structures. This flexibility and

Townsend’s track record of managing these allocation decisions affords more opportunities to potentially add alpha to Core investing

23

Source: The Townsend Group, Manager Reporting, NCREIF. Performance shown is net of manager fees. There can be no assurance that any account will achieve results comparable to those presented. Past performance is not indicative of future results. Please refer to the disclosures at the end of this presentation. Performance shown prior to the inception of TREF is that of a Townsend managed portfolio (incepted on July 1, 2010) which was converted into TREF on December 31, 2014, and has been adjusted for the Fund’s fees. The seed portfolio utilized the same Core strategy and team as TREF. Historical U.S. Core Portfolio performance shown is that of managed portfolios which utilize the same core strategy and team as TREF. TREF performance information is unaudited and subject to change, and even final performance information is in part based on estimates provided by Portfolio investments through the date of finalization of TREF Strategy monthly performance information. Estimated performance information is expected to change upon finalization of such month's performance returns.

8.92

12.09 12.44

9.27 7.79

11.04 11.16

7.66

0

5

10

15

20

1-Year 3-Year 5-Year Incept 4Q95

An

nu

aliz

ed

% R

etu

rn

Historical U.S. Core Portfolio as of 4Q16 (net of fees)

U.S. Core Core Real Estate Benchmark (NFI-ODCE)

Core Portfolio Execution

EMBEDDED VALUE THROUGH CORE FUND ORIGINATION

Townsend played an instrumental role in structuring funds with over $2 B in founder commitments

Immediate value accretion of 7.5% for new deals

Voting board seat

24 Data as of December 31, 2015. 1 Matches duration of the fund. Showing return for the given quarter that funding occurred. 2 Partial First Quarter * Initial commitment made by Townsend clients in seeding the respective Fund. The funds included above were not selected based on performance-based criteria and were selected based on similar Core mandates. It is not known whether the listed funds approve of Townsend.

Core Launch Examples IMMEDIATE VALUE UPON FUNDING –

NET QUARTERLY RETURN

LONG-TERM VALUE SINCE INCEPTION –

NET ANNUALIZED RETURN

INVESTMENT NAME INITIAL

FUNDING DATE TOWNSEND*

($MM) INVESTMENT

RETURN NFI-

ODCE1 DIFF INVESTMENT NFI-

ODCE1 DIFF

Jamestown Premier Property Fund 12/09/11 $492 14.8 2.6 12.2 13.9 11.2 2.7

USAA Eagle Real Estate Fund 07/01/13 $518 7.8 3.4 4.5 16.0 11.3 4.7

MetLife Core Property Fund 12/31/13 $605 6.3 2.3 4.0 14.0 11.2 2.8

Berkshire Multifamily Income Realty Fund2 10/22/15 $288 12.4 3.1 9.2 20.7 7.8 12.9

Non-Core Portfolio Execution

FOCUS ON PRE-SPECIFIED PORTFOLIOS WITH SECTOR & REGIONAL SPECIALISTS

25 All information prepared as of December 31, 2016. The above example is for illustrative purposes only. It does not constitute a past specific recommendation for the current investment. Townsend’s view regarding this example may be changed or modified at any time without further notice to you. Past performance is not a guide to future results. Actual results and developments may differ materially from those expressed or implied herein.

Unico Partners I Standard Life European Real Estate Club III

Vintage 2013/2014 2016

Classification Value-Add / United States Value-Add / Europe

Unique Characteristics

Experienced Pacific Northwest office operator focused on high growth markets of Seattle, Portland and Denver. Significantly pre-specified portfolio acquired in 2013/2014 with embedded value; no J-Curve due to existing cash flow, small fund size ($250 M), strong alignment of interest, and favorable fee structure of 1% with no catch-up provision.

Experienced manager focusing on core-like assets in the most liquid and transparent European markets. Target assets are mispriced due to life cycle or leasing risk, and may be acquired at discounts relative to core stabilized assets. The portfolio targets an income distribution of 6% after the Investment Period, over average asset hold period of 3-4 years, providing downside risk mitigation, in comparison to longer duration and capex intensive value-add strategies.

Townsend Advisory Board Seat Yes Yes

Net IRR (12/31/2016) 21.0% N/A (new position)

Net Equity Multiple (12/31/2016) 1.4x N/A (new position)

Global Industry Position

UNIQUE REAL ESTATE SPECIALIST AND GLOBAL SOLUTION PROVIDER

Astute investor and advisor with 30+ years of relationship building

Unique industry position at intersection of real estate investment universe

Global footprint with access to local market knowledge

Informed and well respected position within the institutional investment community

PROVEN EXECUTION AS ADVISOR AND INVESTMENT MANAGER

Concrete customized global strategy development

Dedicated fund and investment acquisition/ diligence personnel

Realized outperformance and capital appreciation

LEADING SOURCING

Prime offerings, from top managers / partners through established sourcing networks

Viewed as friendly, non-competitive capital partner

Ability to access local, prime operating partners and managers

Flexibility to pivot globally to attractive opportunities without overhead risk

INFORMATION ADVANTAGE

30+ years of quantitative and qualitative performance data

3,500+ active client positions; 2,000+ real asset managers tracked

Information, sourcing, and thought-leadership advantage

WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ADVISORY TEAM

Dedicated San Francisco based team led by Jennifer Stevens

Knowledge and experience working with managers in the Real Estate Portfolio

Experience transitioning consulting assignments

Ability to curate a unique portfolio tailored specifically to Water and Power ERP

26

Data regarding client positions and managers tracked as of March 2016

The entire contents of this presentation are CONFIDENTIAL and are intended for the sole and limited use of the Qualified Purchaser to whom it is distributed.

The Townsend Group The View of the World – Executive Summary

PROPRIETARY & CONFIDENTIAL

Second Half 2016

Economic Uncertainty Remains Elevated

Economic uncertainty continues as global growth projections

trend downwards

Key factors that have further exacerbated an already uncertain

global macro environment are Brexit and downgraded return

expectations in Japan

Monetary policy uncertainty also continues to be elevated

given that many economies are facing negative yields (an

unprecedented environment in modern times)

Further easing from ECB, Bank of Japan, and now Bank of

England, at a time when the U.S. is starting to tighten, could

lead to unexpected outcomes

Emergence of fiscal policy After several years of government

austerity, fiscal policies around the world are becoming more

supportive of growth, an underappreciated turn of events

Political uncertainty is also elevated in light of the new Prime

Minister in the U.K., U.S. elections later this year, and elections

in France and Germany next year

New supply headwinds: U.S. real estate market fundamentals

remain relatively healthy, but, as we cautioned previously, the

property cycle is entering a new phase in which deliveries are

catching up and, in some cases, outpacing demand

A key implication of the above uncertainty has been insatiable

investor appetite for low-risk investments, which is driving

asset values up

Real estate and real assets offer stable income streams that

provide stability to returns in an uncertain time (while also

having the ability to leverage economic growth through capital

value appreciation)

28 Source: Bloomberg

Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

Economists Forecast Healthy but Low Growth…

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

2016 (F) 2017 (F) 2018 (F)

Projected GDP (As of September 15, 2016)

US UK Western Europe Japan

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16

10 YR Sovereign Yields

US UK Germany Japan

Real Estate: Resilient and Reliable in Uncertain Times

NPI return data indicates that the income return of real estate tends to be stable even during periods of distress like the GFC

While capital values do exhibit a higher volatility, experience over the GFC shows that they are very resilient and were quick to

bounce back up after the crisis

Overall, real estate provides the stability of bond returns with the capital growth of equities

The above characteristics make good quality real estate, with sensible leverage, a very suitable asset class during periods of

uncertainty

29 Source: NCREIF Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

-30%

-20%

-10%

0%

10%

20%

30%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

NCREIF NPI Annualized Returns

Income Appreciation Total Return

Approximately 2 Years

6.4% 6.4%

10.0%

4.9%

7.0%

0%

5%

10%

15%

20%

ODCE Value-Added Opportunistic Bonds Equities

Trailing 10-YR Historic Returns

9.4% 10.3%

16.4%

5.6%

8.0%

0%

5%

10%

15%

20%

ODCE Value-Added Opportunistic Bonds Equities

Trailing 20-YR Historic Returns

Real Estate: Compelling Historical Investment Case vs. Other Asset Classes

30 Source: Bloomberg, NCREIF, The Townsend Group (as of 3/31/2016). Bonds represents Barclays Aggregate Bond Index, Equities represents S&P 500 .*Annualized Volatility of Quarterly Returns. Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

Correlation to Equities (Gross)

Historic Returns (Gross)

11%

Volatility*

9% 15% 3% 17% 7% 9% 14% 4% 17%

0.22 0.23

0.43

-0.26

-0.5

-0.4

-0.3

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

ODCE Value- Added Opportunistic Bonds

Trailing 10 YR Correlation to Equities

0.18 0.22

0.30

-0.35 -0.5

-0.4

-0.3

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

ODCE Value- Added Opportunistic Bonds

Trailing 20 YR Correlation to Equities

Macro Factors U.S. Europe China Japan

GDP (‘17) 2.2% 1.4% (U.K. 0.7%, DE 1.3%, FR 1.2%) 6.3% 0.8%

Unemployment (‘17) 4.6% 8.6% (U.K. 5.5%, DE 6.3%, FR 9.8%) 4.2% 3.1%

Key Real Estate Themes

Fundamentals diverge significantly across sectors and submarkets

Core offers good income and protection against a potential slowdown

Non-Core selectively mispriced

Yields typically higher than in the U.S., but lower growth

Repositioning opportunities attractive

Low debt cost offers good leverage, without adding much risk

Slowing growth raising over supply risks, but continued strong urbanization

Focus on Tier I and II cities

Leverage preferred equity/mezz structure to lower risk

Low growth despite easing

Existing stock old, provides attractive repositioning opportunities

Low debt cost offers good leverage, without adding much risk

Office

Select markets offer good rent growth, while energy and even tech-based markets may be close to peaking

Repositioning offers better returns

Repositioning offers attractive returns in peripheral CBD markets

Good potential for income return and modest growth

High supply and slowing economy could lead to pockets of oversupply

Prefer asset repositioning opportunities at attractive basis

Modestly rising rent growth outlook

Old stock in good locations in Tokyo/ Osaka offers attractive upgrading opportunities

Industrial

E-commerce and imports driving demand at record high level

Supply rising in hotbeds, requiring focus on quality assets in neglected markets

Strong demand from logistic players and e-commerce

Stable fundamentals offer attractive cash returns boosted by low-cost debt

Strong demand for industrial properties conforming to modern standards

Limited deal flow due to delay in land availability

Strong demand for modern logistics assets driven by 3PLs

Supply building in town peripheries that is likely to limit rent growth

Retail

Tech reshaping retail landscape but Class A highly desirable by retailers

Urban densification retail and select Class B desirable

Good re-tenanting, repositioning, and extension potential

Limited supply and threat of e-commerce mostly impacting lower quality assets

Shift to consumer economy leading to strong demand for productive sites

Oversupply in central locations, but Non-Core locations still undersupplied

Select repositioning opportunities attractive given poor existing asset quality

Residential

Rent affordability stretched

Supply building but strong demand

Refurbishing Class B attractive

Most large cities under supplied with dwellings, but still limited opportunities

Select condo conversion and repositioning plays attractive

Urbanization trend driving strong demand albeit very volatile

Prefer preferred equity/mezz structures to contain risk

Attractive residential development opportunities in high-growth cities like Tokyo and Osaka

Secular demand growth for aged care

Global Economic Outlook and Real Estate Investment Opportunities

31 Source: The Townsend Group, Consensus Estimates- Bloomberg (September 15, 2016) Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

Overweight Neutral Underweight

United States – View of the World

Office: Overall Attractive but Market and Submarket Level Dispersion Exists

The recovering economy and historical

pent-up demand to upgrade are leading

to a healthy demand for leasing in CBD

and other live and work neighborhoods

However, there are significant market

and submarket level differences e.g.,

Manhattan office market is expecting

good growth, San Francisco rents look

stretched, and Houston rents could

decline

Select markets like Atlanta, Nashville,

Raleigh, etc., with a mixed historical

record, might be better positioned as

cap rates are relatively high; however,

there are several submarket level

differences that need to be considered

in these markets

Overall, supply remains muted but early

indications of elevated supply in the

future have started to emerge; as such,

investors should avoid pockets of

oversupply and/or investing in buildings

that may be unable to compete with the

new supply in the future

33 Sources: Green Street Advisors, The Townsend Group Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

Office Valuations and Rent Growth Outlook in Key U.S. Cities

New York (Downtown)

New York (Midtown)

Chicago

Atlanta

Miami

Nashville

Houston

Dallas

Austin

LA (Downtown)

LA (Westside)

Seattle

Portland

San Francisco

Raleigh-Durham

District of Columbia

Denver

Boston (CBD)

Oakland-East Bay

3.5%

4.5%

5.5%

6.5%

7.5%

8.5%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

High Cap Rate

High Rent Growth Rate

Low Rent Growth Rate

Low Cap Rate

Preferred

Avoid

Residential: Forecasts Revised Downward

Period of economic uncertainty is currently

dissuading households from making capital

commitments to houses

However, stretched affordability has started to

limit apartment rent growth

Rising supply is also having an impact; however,

recent pullback in banks’ appetite for apartment

construction lending is having some moderating

effect on supply

Even after expected Fed rate hike, mortgage rates

will continue to be low, which is leading to modest

preference for home ownership

Continued secular shift in preference to urban

locations and apartments

Seniors also have displayed a strong preference

for change in lifestyle to living in apartments and

other senior housing facilities

Senior housing is also exhibiting high supply, which

is likely to hurt poor-quality assets

Given the low cap rates in the sector and slowing

rent growth, we prefer to focus on renovating

Class B assets to higher quality, or preferred

equity in high-quality developments

34 Sources: Green Street Advisors, The Townsend Group Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

E

20

17

E

20

18

E

20

19

E

20

20

E

Same Property NOI Growth

Apartments Major Sector Avg

1.3%

0.9%

1.6% 1.7%

1.8% 1.7%

1.5%

1.2%

0.0%

0.5%

1.0%

1.5%

2.0%

'95-09 '10-14 '15 '16 '17 '18 '19 '20

Completions as a % of Existing Stock

Forecast

Forecast

0%

2%

4%

6%

8%

10%

12%

14%

-40

-20

0

20

40

60

80

100

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Neighborhood, Community, and Strip Centers: Supply and Demand

Net Absorption Net Completions Vacancy

Absorption/Completions (MSF) Availability Rate

Forecast

Retail: Significant Shift in Buying Behavior and Retailer Landscape

Retail landscape is changing dramatically as pure play internet and brick and mortar retail shops are transformed, and omnichannel retailing emerges

Private equity groups now control major retailers such as BJ’s Wholesale, Neiman Marcus, Petco, and Toys “R” Us, signaling major transformation

Tenants such as Sears, J.C. Penney, HHGregg, and Toys “R” Us are all struggling to remain profitable and survive, a trend that can have a major impact on the landscape

The rising stars of the new landscape include: 365 by Whole Foods, Eddie V’s, Blaze Pizza, Lilly Pulitzer, Bonobos, Chelsea Collective, and Warby Parker

Going forward, securing the right mix of tenants located in select metros will be the key to successfully adapting to the new retail market

While supply is muted, it is likely to pick up in the future; therefore, it is critical to focus on densely populated regions

35 Sources: The Townsend Group, CBRE Econometrics Advisors (1Q16) Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

BUY ONLINE PICK UP IN STORE TRANSPORT HOME

BUY ONLINE SHIP FROM STORE DELIVER HOME

BUY IN STORE RETURN ONLINE PICK UP/DELIVER

HOME

VISIT STORE PURCHASE VIA

TABLET DELIVER HOME

Omnichannel Retailing

0%

2%

4%

6%

8%

10%

12%

14%

16%

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

2008 2012 2016 2020 (SFX

10

00

)

Industrial: Supply and Demand

Completion Net Absorption Vacancy

Industrial: Supply Rising But Select Attractive Investment Pockets Exist

Improving trade situation is impacted by a

stronger dollar (benefiting imports), which, along

with rapid growth in time-sensitive e-commerce

logistics, is providing a strong tailwind of leasing

demand

However, the specs (larger than historical norm)

and desirable locations (closer to dense locations),

continue to evolve, rendering some existing stock

obsolete

The supply in the pipeline is for modern spec

warehouses, which are in short supply, and are

threatening Class B assets and those in poor

locations

Vacancy rates remain low, and as such, rents are

expected to continue to rise; Green Street

Advisors forecasts NOI will rise by 2-4% p.a. over

the next three years

Investors holding poor-quality industrial assets

should look to trade out of those and into higher-

quality assets (albeit at a higher price) as the poor-

quality assets run the risk of obsolescence

36 Sources: CBRE Econometrics Advisors (1Q16), Green Street Advisors Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

4.8%

4.1% 4.2%

5.9%

3.1%

1.5%

6.3%

0.6%

1.7%

0%

1%

2%

3%

4%

5%

6%

7%

Cap Rate 16'-20' NOI Growth 16'-20' Supply Growth

Submarket NOI and Supply Growth

Inland Empire Chicago Houston

Forecast

Forecast

Hybrid Strategies: Real Estate Debt Offers Attractive Returns

In a low interest rate environment, real estate debt offers attractive alternatives with reasonable risk given that U.S. real estate is

experiencing an upward cycle of rent growth

Debt for transitional assets offers attractive returns given that CMBS issuance is scaling back amid very high levels of expiries and

banks are unwilling or unable to increase real estate exposure; however, poor asset selection could result in downside in the

event of an unexpected slowdown

Senior debt for development also offers attractive returns as banks are not that active, but caution is needed to avoid good assets

in poor locations with elevated leasing risk

Preferred equity with kickers is a good way to enhance returns without full equity risk, but such options are typically only possible

on transitional assets or assets that require major renovations

Opportunistic debt strategies could have a wide range of outcomes; execution options could be very limited

37 Source: The Townsend Group (based on various manager interactions)

Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

2.5%

6%

8% 9% 9%

7% 3.5%

8%

11%

14% 15%

20%

0%

5%

10%

15%

20%

Core Senior Debt Core Preferred Equity Transitional Subordinate Debt and Development Senior

Debt

Preferred Equity + Kickers

Development Subordinate Debt

Opportunistic Debt Strategies

Typical Expected Return

Return Range

Preferred Strategy

Europe – View of the World

Brexit: Near-Term Risks, Long-Term Opportunities

Expect prolonged uncertainty: Parliament’s vote to

legalize Brexit is still pending (what if Parliament

doesn’t support?), and the exact U.K. exit path is being

negotiated with the EU

Evolving political environment: A new Prime Minister

and government in the U.K. and the impending 2017

elections in France and Germany could redefine Brexit-

related politics

Bank of England’s swift response: First rate cut (25

bps) since 2007, an aggressive quantitative easing

program, and a new Term Funding Scheme to provide

cheap funding to banks/lenders

Macroeconomic implications: Near-term growth

revised down, some capital and hiring plans put on

hold, consumer confidence and spending likely to be

hurt

Short-term real estate impact: Foreign capital interest

likely to be reduced, local investors may take profits

and rebalance to more liquid asset classes leading to

near-term capital value declines

Medium-term real estate impact: Going forward, the

U.K. is likely to come up with a trade deal that

facilitates the flow of goods and people with the EU,

therefore we will be ready to take advantage of any

distressed opportunities

Continental European market implications:

functioning normally and may experience incremental

benefits as a result of some functions being relocated

39 Source: Bloomberg Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

Negative Yields Reflect Post-Brexit Risk Aversion of the Market

-0.2%

-0.1%

0.0%

0.1%

0.2%

0.0%

0.5%

1.0%

1.5%

1-Jun-16 8-Jun-16 15-Jun-16 22-Jun-16 29-Jun-16

10-YR Sovereign Yields

UK 10-Yr Yield German 10-Yr Yield

UK Yield German Yield

0.0

0.5

1.0

1.5

2.0

2.5

UK Germany

Forecasted GDP Growth Before and After Brexit

2017 Before 2017 After

(%)

Brexit

London Office: Expect Near-Term Weakness

The demand outlook for central London office space has been revised downward as a result of Brexit

Vacancy is expected to increase in the near-term, as firms delay leasing decisions or even relocate entirely, until a trade deal has been reached with the EU

Additionally, excess supply within the development pipeline will compound issues and create a temporary overhang in the short-term

Expect new supply to peak in 2017/2018 as developments in the early phases will likely get mothballed

While there seems to be no rush on the part of institutional investors to sell property, there might be a gradual buildup of selling pressure in the months to come

Consequently, cap rate expansion is possible in the order of 25-75bps given the current yields in the 3.5-5% range

Other major U.K. office markets like Manchester might also suffer, given that the cap rates in those markets came down and meaningful supply is in the pipeline

We prefer to wait for better valuations to emerge, or prefer a more senior position in the capital stack like preferred equity

40 Source: CBRE Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

-

2

4

6

8

10

12

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

MSF Central London Development Pipeline (July 2016)

Completed U/C Let/Under Offer U/C Available

Proposed Let/Under Offer Proposed Available

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

2

4

6

8

10

12

14

16

18

20

Availability (%) MSF Central London 12-Month Rolling

Take-up vs. Availability

Take-up Availability

Germany: Leverage Offers High Cash-on-Cash Yields

Germany and many parts of Continental Europe are

likely to experience lower economic growth (vs. the

U.S.), which is likely to keep rent growth muted over

the medium-term even though the short-term outlook

is better

However, Germany and many other Continental

European markets enjoy a significant cost of capital

advantage given the low cost of debt

Even with low net initial yields of 4-4.5% and 1.5% cost

of debt, a 65% LTV investment will yield a high single

digit cash-on-cash yield, which for such a risk is a

compelling return

Additionally, after the decline in the sovereign yield, the

spread has materially widened, making a further yield

compression scenario likely

For Core opportunities, unlevered return expectations

are in the 5-6.5% p.a. range, which provides a healthy

levered return

Core Plus and Value-Added opportunities that generate

good income early on in the investment cycle, but have

repositioning and re-tenanting opportunities, provide

net returns in the 10-15% p.a. range

41 Sources: CBRE, Bloomberg, The Townsend Group Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16

Annual Performance of Top 5 Office Markets

Rental Growth Yield Shift

4.50%

1.70%

0%

1%

2%

3%

4%

5%

Initial Yield Debt Cost

Non-Prime Initial Yields and Debt Cost

France: Attractive Opportunities Amid Low Growth

Historically wider spread between government bonds and real estate yields to support valuation and investor interest

While the expected economic growth and resulting market rent growth continue to be low, two types of opportunities are

attractive in this market. First, the benefit of the low cost of debt results in high cash-on-cash yields; and second, repositioning

opportunities given existing stock is generally old and needs renovation

Paris office market rents are forecasted to bottom out, and the city is also likely to be a modest beneficiary of Brexit

Modest improvement in economic growth is also likely to benefit the industrial and logistic sectors, which are also likely to see e-

commerce driven tailwinds

42 Sources: Deutsche Asset Management, Bloomberg Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016f

Average Prime Yields in France by Sector

Office Logistics High Street Shopping Centre 10 YR Govt Yield

Forecast

Developed Asia – View of the World

2%

3%

4%

5%

6%

7%

8%

9%

10%

80

85

90

95

100

105

110

115

120

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

F

20

17

F

20

18

F

Ren

t In

dex

(2

01

5=1

00

)

Tokyo: Class A Office Rent and Vacancy

Rent Vacancy

0%

2%

4%

6%

8%

10%

12%

0

20000

40000

60000

80000

100000

120000

140000

160000

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Greater Tokyo Industrial LMT Market: Supply/Demand

New Supply Net Absorption

Vacancy Rate (Overall) Vacancy Rate (More than one year old)

(Tsubo)

Forecast

Japan: Low Cost Of Debt Driving High Cash-Yielding Opportunities

Japan is expected to experience a very low growth rate

of 0.5-0.6% p.a. over the next few years; and the long-

term demographic trends are also unfavorable, leading

to a gradual decline in the working population

However, and somewhat as a result of the above, the

cost of debt is very low (around 50bps) for good quality

income producing assets with reasonable leverage

Consequently, the real estate sector offers high single

digit cash-on-cash yield

Additionally, the old stock is in need of repositioning,

which provides enhanced Value-Add returns

Despite low growth, office vacancies have been

declining, driven by stock obsolescence. These

vacancies are forecasted to rise as low cost debt infused

new supply begins to hit the market; at risk will be older

buildings that do not meet tenants’ evolving needs

Similarly, the industrial sector, which has witnessed

strong e-commerce and improving trade-driven take-

up, is also witnessing elevated levels of supply—again

most at risk are old spec buildings that don’t meet the

requirements of the third-party logistic companies

driving the demand for rental properties

While Japan offers several good investment

opportunities, those investors chasing higher yields in

low-quality product might be at risk from new supply

44 Source: CBRE, Colliers Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

Forecast

-6%

-3%

0%

3%

6%

9%

12%

15%

-100000

-50000

0

50000

100000

150000

200000

250000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Vac

ancy

Net

Ad

dit

ion

s &

Ab

sorp

tio

n (

Sqm

)

Sydney CBD: Supply and Demand

Annual Net Additions Annual Net Absorption Vacancy

Forecast

Australia: Macro Growth Driven Attractive Investment Opportunities

Australia’s population growth rate of 1.8% p.a. is one of

the strongest amongst developed countries leading to

3% p.a. GDP growth, which, while lower than historical

levels, is still very strong

Property cap rates have declined relative to history, but

most of that decline is in response to a lower interest

rate environment – cap rates, even at current levels,

are above those in other Core markets such as New

York, London, and Tokyo

Leasing demand for office space continues to be strong,

resulting in declining vacancy rates; while supply is

building, it is unlikely to have a major impact before

2020

Demand for industrial space is fueled by the growing

economy and e-commerce; yields of good assets in

secondary locations or smaller assets in dense locations

are in the high 7% to low 8% range, which is a healthy

premium over the less than 5% cost of debt

Demand for retail leasing is also healthy as the retail

sales growth rate is around 4-5% p.a.; however, prime

locations are owned by superannuation funds, REITs,

and other very long-term institutional investors driving

investors to secondary assets with re-positioning

potential

Australian banks, under regulatory pressure to reduce

exposure to the real estate sector, are pulling lending

back, leading to attractive mezz financing opportunities

45 Source: CBRE Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

-15%

-10%

-5%

0%

5%

10%

15%

20%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

CBD Retail Prime Rents and National Sales Growth

CBD Prime Rents Clothing, Footwear& Pearsonal Accessories Trade

Singapore: Macro Growth-Driven Attractive Investment Opportunities

Singapore’s growth rate is likely to pick up from its

current 1.5% p.a. level to closer to 2.7% p.a. over the

next 2-3 years

While Singapore has seen modest growth in the

number of visitors, retail sales growth has been

lackluster reflecting visitor preferences to spend on

experiences vs. retail goods and services

In the office sector, massive deliveries over 2013-2014

in the Asian Square and other areas have lead to 15-

20% decline in rents; as the pace of new deliveries

slows down considerably, it is expected that rents will

bottom out

However, cap rates continue to be in the high 3% to

low 4% range, similar to levels in Tokyo, but the

Singaporean cost of debt is much higher than in Japan,

leading to lower investment cash yields

Retail and industrial properties are also witnessing low

to no rent growth due to unfavorable current macro

conditions, while both sectors have low cap rates

Some emerging sectors like self-storage offer better

growth and return prospects

For now, we continue to monitor opportunities

especially as growth starts to pick up

46 Source: CBRE Townsend’s views are as of the date of this publication and may be changed or modified at any time and without notice. Past performance is not indicative of future results.

100

120

140

160

180

200

220

Q4

09

Q2

10

Q4

10

Q2

11

Q4

11

Q2

12

Q4

12

Q2

13

Q4

13

Q2

14

Q4

14

Q2

15

Q4

15

Q2

16

Q4

20

05

= 1

00

Office Rental Index

Singapore (Grade A) Asia Pacific

70

80

90

100

110

120

130

140

150

160

Q2

07

Q4

07

Q2

08

Q4

08

Q2

09

Q4

09

Q2

10

Q4

10

Q2

11

Q4

11

Q2

12

Q4

12

Q2

13

Q4

13

Q2

14

Q4

14

Q2

15

Q4

15

Q2

16

Q4

20

05

= 1

00

Retail Rental Index

Asia Pacific Prime Orchard Road Prime Suburban

Disclosures

For Institutional and Professional investor use only. Not for retail use or distribution.

The views expressed in this commentary are of Townsend Holdings LLC d/b/a The Townsend Group (together with its affiliates, “Townsend”). The views expressed reflect the current views of Townsend as of the date hereof and Townsend does not undertake to advise you of any changes in the views expressed herein.

This commentary does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. Such offer may only be made by means of an Offering Memorandum, which would contain, among other things, a description of the applicable risks.

Townsend employees may have positions in and effect transactions in securities of companies mentioned or indirectly referenced in this commentary, including a long or short position or holding in the securities, options on securities, or other related investments of those companies.

Investment concepts mentioned in this commentary may be unsuitable for investors depending on their specific investment objectives and financial position. Where a referenced investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment.

Tax considerations, margin requirements, commissions and other transaction costs may significantly affect the economic consequences of any transaction concepts referenced in this commentary and should be reviewed carefully with one’s investment and tax advisors. Certain assumptions may have been made in this commentary as a basis for any indicated returns. No representation is made that any indicated returns will be achieved. Differing facts from the assumptions may have a material impact on any indicated returns. Past performance is not necessarily indicative of future performance. The price or value of investments to which this commentary relates, directly or indirectly, may rise or fall. This commentary does not constitute an offer to sell any security or the solicitation of an offer to purchase any security. Investing involves risk including possible loss of principal

NOTE REGARDING PROJECTIONS AND FORWARD-LOOKING STATEMENTS: The information provided in this report contains estimates, return data and valuations that are based upon assumptions and projections. Such estimates and assumptions involve judgments with respect to, among other things, future economic and competitive conditions; real estate market conditions; occupancy and rental rates; and the like, which may not be realized and are inherently subject to significant uncertainties and changes, all of which are difficult to predict and many of which are beyond the control of the General Partner and Townsend Holdings LLC d/b/a The Townsend Group (“Townsend”) and the investment managers of any indirect fund investments. Accordingly, no assurance can be given that such projections will be realized, and actual conditions, operations and results may vary materially from those set forth herein. The Limited Partner is cautioned that the predictions and other forward-looking statements reflected in this report involve risks and uncertainty, including without limitation, risks incident to investment in real estate and to investment in “non-core” real estate funds. In light of the foregoing factors, actual returns and results are likely to differ substantially from the forward-looking statements contained in this report, and the Limited Partner is cautioned not to place undue reliance on such forward-looking statements and projections. The words “estimate,” “anticipate,” “expect,” “predict,” “believe” and like expressions are intended to identify forward-looking statements. Investors should make their own investment decisions without relying on this document. Only investors with sufficient knowledge and experience in financial matters to evaluate the merits and risks should consider an investment in any issuer or market discussed herein and other persons should not take any action on the basis of this document.

To recipients in the United Kingdom: This Commentary has been issued by Townsend Holdings LLC and distributed by Townsend Group Europe Limited, subsidiary which is authorized and regulated by the Financial Conduct Authority (FCA) registration number 500908. Persons dealing with Townsend Group Europe Limited outside the United Kingdom may not be covered by the rules and regulations made for the protection of investors in the United Kingdom. The investment concepts referenced in this commentary may be unsuitable for investors depending on their specific investment objectives and financial position.

This commentary is disseminated in Asia by Townsend Group Europe Limited, a subsidiary of Townsend Holdings LLC d/b/a The Townsend Group.

47

Disclosures and Definitions

The NFI-ODCE Index is a capitalization-weighted, gross of fees, time-weighted return index with an inception date of 1/1/1978. Published reports may also contain equal-weighted and net of fees information. Open-end funds are generally defined as infinite-life vehicles consisting of multiple investors who have the ability to enter or exit the fund on a periodic basis, subject to contribution and/or redemption requests, thereby providing a degree of potential investment liquidity. The term Diversified Core Equity style typically reflects lower risk investment strategies utilizing low leverage and generally represented by equity ownership positions in stable US operating properties (as defined herein). The NFI-ODCE is a quasi-managed index based on the periodic review by the Index Policy Committee ("IPC") of the index's criteria thresholds.

The S&P 500 Index is an unmanaged market capitalization weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.

The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).

Index figures do not reflect deduction of fees, expenses, or taxes. One cannot invest directly in an index.

Value-Added: Funds that generally include a mix of core investments and others that will have less reliable income streams. The portfolio as a whole is likely to have moderate lease exposure and moderate leverage. As a result, such portfolios should achieve a significant portion of the return from appreciation and are expected to exhibit moderate volatility.

Opportunistic: Funds of preponderantly non-Core investments that are expected to derive most of their returns from appreciation and/or which may exhibit significant volatility in returns. This may be due to a variety of characteristics such as exposure to development, significant leasing risk, high leverage, or a combination of risk factors.

48

Appendix B: Townsend Biographies

Townsend WPERP Team Biographies

50

Jennifer Young Stevens, Principal

Jennifer Stevens joined The Townsend Group in 2004 and is currently a Principal based in the San Francisco office. Ms. Stevens is also the lead Principal and primary relationship manager for a number of the firm’s Advisory clients, which include U.S. public pension plans, Australian superannuation plans and family offices. Ms. Stevens provides clients with information related to Strategic Planning, Investment Planning, Manager/Fund Due Diligence, Benchmarking, and Portfolio Analysis. Programs include investments in a wide range of structures including separate accounts, commingled funds and co-investments. On behalf of The Townsend Group, Ms. Stevens is an Advisory Board member for the Global Real Estate Sustainability Benchmark (GRESB) and serves as Townsend’s signatory representative for the United Nations Principals of Responsible Investment (UN PRI). Ms. Stevens also represents Townsend’s investor interests on multiple Advisory Committees and is a frequent speaker/panelist at industry events. Ms. Stevens is a member of the Pension Real Estate Association (PREA) Membership Committee, the California State Association of County Employees’ Retirement Systems (SACRS) and Urban Land Institute (ULI). Ms. Stevens was awarded the Institutional Investor/Money Management Intelligence designation for Rising Stars of Public Funds in 2013 and the inaugural GRESB Investor Leadership Award in 2016. Ms. Stevens received a Bachelor of Business Administration from Ohio University. Ms. Stevens was appointed to the Board of Directors of Ohio University’s College of Business Society of Alumni & Friends in 2014 and currently serves as its elected President.

Industry Experience: 12 years Townsend Tenure: 12 years

Robert A. Miranda, Vice President

Mr. Miranda is a Vice President at The Townsend Group, specializing in real asset strategic and investment planning for institutional clients. He has over 13 years of combined experience in advisory, corporate finance and institutional investments. He has worked on a number of complex real estate assignments/transactions across both domestic and international markets, totaling over $3.8 billion in aggregate value. Prior to joining The Townsend Group, Mr. Miranda led the real estate, lodging and leisure practice at Moss Adams Capital, a boutique investment bank, where he advised clients on strategic planning, capital formation and M&A. His prior experience includes investment and development management for Unico Properties and global real estate advisory for Jones Lang LaSalle. Mr. Miranda began his career in commercial banking at Bank of America. Mr. Miranda holds a BS from Marshall Business School at the University of Southern California and an International MBA from IE Business School in Madrid, Spain where he was a Foundation Scholar. He also completed the Wharton Global Consulting Practicum at the University of Pennsylvania. Mr. Miranda is fluent in English and Spanish.

Industry Experience: 16 years Townsend Tenure: <1 year

Townsend WPERP Team Biographies

51

Felix Fels, Analyst

Felix Fels joined Townsend as an Investment Analyst in the Advisory Group. His main responsibilities include portfolio analytics and performance reporting for all of Townsend's West Coast clients. Prior to joining Townsend in 2015, Mr. Fels interned for IDS Real Estate Group in Los Angeles and Deutsche Asset Management in Frankfurt, Germany. Mr. Fels graduated magna cum laude with a BA in Economics from Occidental College, where he managed part of the college's endowment for two years.

Industry Experience: 1 year Townsend Tenure: 1 year

Townsend Investment Committee Biographies

52

Terry Ahern, Chief Executive Officer, Co-Founder

Terry Ahern co-founded The Townsend Group in 1983. He is the Chief Executive Officer of the firm and a member of the Management and Investment Committees of the firm. Prior to founding Townsend, Mr. Ahern was the Vice President of a real estate investment bank after beginning his career in law private practice. Mr. Ahern is a well-respected authority on real estate markets. He has been a frequent speaker at industry conferences and has authored numerous articles in academic journals and industry publications. He has served as an expert witness on behalf of institutional investors and has provided assistance and testimony to the Department of Labor (DOL), the Department of Housing and Urban Development (HUD), and the Securities and Exchange Commission (SEC). Mr. Ahern was a member of the Young Presidents Organization (YPO), the Pension Real Estate Association (PREA) and the National Council of Real Estate Investment Fiduciaries (NCREIF). He is a former member of the Board of Directors of the Pension Real Estate Association (PREA), the Board of Editors of Institutional Real Estate Securities and of the Board of Editors of The Institutional Real Estate Letter. He is Chairman of the Board of DDR Corp., (NYSE:DDR), a self-administered and self-managed real estate investment trust. Since 2002, Terry has been a member of Blue Coats, Inc., a non-profit organization devoted to the well-being of families of Cuyahoga County, Ohio safety forces personnel who have lost their lives in the line of duty. Mr. Ahern received a JD, Cum Laude, and BA, Magna Cum Laude, from Cleveland State University.

Industry Experience: 34 years Townsend Tenure: 34 years

Jay Long, Principal, IC Chair

Jay Long joined The Townsend Group in 1994. He is a Principal in the firm and Chair of the Investment Committee. During his tenure at Townsend, Jay led the development of the Special Situations team, which focuses on co-investments and secondary transactions. He has significant due diligence expertise leading the Asian and European due diligence teams and contributes to the discretionary portfolio management and advisory consulting practices. Mr. Long is a member of the Pension Real Estate Association (PREA), the National Council of Real Estate Investment Fiduciaries (NCREIF), the CFA Institute and the Cleveland Society of Security Analysts. Mr. Long received an MBA from The Ohio State University and a BSBA from Miami University. He is a holder of the right to use the Chartered Financial Analyst® (CFA) designation.

Industry Experience: 23 years Townsend Tenure: 23 years

Townsend Investment Committee Biographies

53

Anthony Frammartino, Principal

Anthony Frammartino is a Principal and member of the Management and Investment Committees of the firm. Mr. Frammartino is responsible for investment management for the firm globally. Prior to joining The Townsend Group in 2004, Mr. Frammartino was an investment banker with Key Bank’s Real Estate Capital group where he focused on capital markets, corporate finance, and mergers and acquisitions. As an expert in private real estate and developing custom real asset solutions, Mr. Frammartino is a frequent contributor and speaker on private equity real estate for industry and media groups. Mr. Frammartino received an MBA in Finance from Case Western Reserve University and a BS in Accounting from The University of Akron.

Industry Experience: 15 years Townsend Tenure: 13 years

Martin Rosenberg, Principal

Martin Rosenberg is a Principal of the Townsend Group and member of the firm’s Investment Committee. Mr. Rosenberg works with clients on strategic and investment planning, portfolio structuring and performance reviews. Prior to joining The Townsend Group in 2005, Mr. Rosenberg was an attorney within the private equity group at Jones Day where he focused on private fund formations, as well as leveraged buyout and venture capital transactions. Mr. Rosenberg received a JD from the New York University School of Law and BA from The Ohio State University. He has earned the right to use the Chartered Alternative Investment Analyst (CAIA) Designation.

Industry Experience: 14 years Townsend Tenure: 11 years

Townsend Investment Committee Biographies

54

John Schaefer, Principal

John Schaefer is a Principal of The Townsend Group and member of the Investment Committee. Mr. Schaefer is responsible for investment research, due diligence and underwriting, globally, with a focus on non-core investment strategies. He has also served as the lead portfolio manager on several of the Townsend multi-manager, commingled funds responsible for portfolio construction, portfolio management, and due diligence of funds, co-investments, direct properties and secondary interests. Prior to joining The Townsend Group in 2010, Mr. Schaefer was a founding member of the real estate group at UBS Wealth Management where, as a member of the investment committee was responsible for the creation of a $10 billion global portfolio of direct properties, commingled funds and REITs. Prior to joining UBS, Mr. Schaefer worked in Deutsche Bank’s real estate private equity group where he was responsible for structuring, underwriting, negotiating, and closing real estate investments. Mr. Schaefer began his career as a research analyst with Lend Lease Rosen. Mr. Schaefer received an MBA with honors from Columbia Business School and BS with honors from the University of California, Berkeley.

Industry Experience: 21 years Townsend Tenure: 6 years

Prashant Tewari, Principal

Prashant Tewari is a Principal of The Townsend Group and a member of the Investment Committee and the Global Macro Committee. Mr. Tewari leads global investment strategy for the firm, bringing over seventeen years of global real estate investment, capital raising, and banking experience to the firm. Prior to joining The Townsend Group in 2014, Mr. Tewari was a Co-Portfolio Manager/Senior Research Analyst with Alliance Bernstein, responsible for a $2.5 billion global fund investing in REITs and other real estate securities. Mr. Tewari has previously held roles with McKinsey & Co. and Standard Chartered Bank within the Asia real estate group. He has lived and worked in the U.S., Europe, and Asia. Mr. Tewari received an MBA with honors from the Booth School of Management at the University of Chicago, a post-graduate diploma from the Indian Institute of Management where he was awarded the Director’s medal for academic excellence, and a BS from the Indian Institute of Technology.

Industry Experience: 19 years Townsend Tenure: 3 years

Christopher Lennon, Principal

Christopher Lennon is a Principal of The Townsend Group, a member of the Investment Committee and the lead portfolio manager for seven real estate investment programs ranging in size from $100 million to $500 million. In addition, Mr. Lennon has underwriting responsibility for the Core Open Ended Fund Universe with a specialization in the newly formed entities. Mr. Lennon has acted as the lead underwriter for over $3 billion in client investments in new open ended vehicles. Prior to joining The Townsend Group in 2007, Mr. Lennon was a Vice President at Morgan Stanley Capital International, where he designed, constructed and managed a series of hedge fund indices with over $2.5 billion of invested funds. During his six year tenure, he actively promoted index adoption among large asset owners and structured product issuers. He also participated in consultations led by European regulators designed to produce guidelines relating to the use of hedge fund indices within UCITS eligible investments. Mr. Lennon has published articles related to portfolio construction and fund selection in Institutional Real Estate North America, Investment Pensions Europe, and Institutional Real Estate Europe. He has been a speaker or panelist at the Institute for Fiduciary Education, NCREIF Annual Conference, Urban Land Institute Real Estate Summit and the CFA Pension and Endowment Conference. Mr. Lennon received a B.S. in Finance from the Wharton School of the University of Pennsylvania with Magna Cum Laude distinction and his BS in Mechanical Engineering from The School of Engineering and Applied Science of the University of Pennsylvania also with Magna Cum Laude distinction. He obtained his CFA designation in 2001.

Industry Experience: 16 years Townsend Tenure: 10 years

Townsend Investment Committee Biographies

55

Townsend Principal Biographies

56

Joe Olszak, Chief Operating Officer

Joe Olszak is the Chief Operating Officer of The Townsend Group and a member of the firm’s Management Committee. Mr. Olszak is responsible for the firm’s legal, financial, human resource, technology and operational teams. In this role, Mr. Olszak ensures that all of Townsend’s resources are best aligned to support its investment and client servicing teams’ goal of delivering world class investment solutions to our clients. Prior to joining The Townsend Group in 2008, Mr. Olszak was the Chief Administrative Officer for Allegiant Asset Management, a $30 billion institutional investment manager. His responsibilities included oversight of Finance, Fund Administration, Technology, and Legal as well as Product Development and firm Strategic Planning. Prior to Allegiant Mr. Olszak held several positions with investment managers and a private equity firm structuring equity investments and multiple acquisitions. Mr. Olszak received an MBA from The Katz School at the University of Pittsburgh and BS from Drexel University.

Industry Experience: 25 years Townsend Tenure: 8 years

Ron Weihrauch, General Counsel

Prior to joining Townsend, Mr. Weihrauch was responsible for legal and regulatory matters with Allegiant Asset Management, an institutional investment manager and served as Chief Legal Officer of Allegiant Funds, a $10 billion dollar mutual fund complex. Prior to Allegiant, Mr. Weihrauch was a Senior Attorney with Ohio National Financial Services where he focused on mutual fund and investment adviser regulation. Mr. Weihrauch received his J.D. from Case Western Reserve University School of Law and B.A. from Bowling Green State University. He is a member of the state bar of Ohio.

Industry Experience: 12 years Townsend Tenure: 8 years

Scott Booth, Principal

Scott Booth is a Principal of The Townsend Group responsible for North America non-core real estate fund due diligence and maintaining the firm’s expertise in commercial real estate debt. Mr. Booth has twelve years of real estate experience and 29 years total of institutional investment experience in multiple asset classes including real estate and fixed income. Prior to joining The Townsend Group in 2005, Mr. Booth was Senior Vice President at KeyBank Capital Markets on the Swaps and Derivatives desk, and prior to that held senior trading positions within the Fixed Income division. Mr. Booth’s career began in New York as a bond trader for ten years at predecessor firms to JPMorgan, UBS, and Mizuho Financial. Mr. Booth is a graduate of Miami University with majors in Finance and Economics; received his MBA from Columbia Business School; and holds the CFA and the CAIA designations.

Industry Experience: 30 years Townsend Tenure: 12 years

Rob Davies, Principal

Mr. Davies is a Principal and leads Townsend’s Special Situations Group which targets investments in co-investments, joint ventures, recapitalizations, and fund secondaries on a global basis. In addition, Mr. Davies is a Portfolio Manager for several discretionary investment funds. Prior to joining The Townsend Group in 2011, Mr. Davies was a Vice President at ING Clarion Partners, where he focused on real estate investments in the Western U.S. Prior to joining ING Clarion, he worked for Discovery Land Company, an owner and developer of high end private golf clubs and residential communities, where he focused on acquisition, development and finance activities. He also spent three years as an investment banker for ING Barings Furman Selz. He was a Director of SonomaWest Holdings from 2006 until the company was taken private in 2011. Mr. Davies received an AB degree in Economics from Duke University and an MBA from the Stanford Graduate School of Business

Industry Experience: 17 years Townsend Tenure: 6 years

Townsend Principal Biographies

57

John Kropke, Principal

John Kropke is a Principal of The Townsend Group and a Portfolio Manager within the Special Situations Group. Mr. Kropke focuses on global investment activities including co-investments, joint ventures, and secondary acquisitions. Prior to joining The Townsend Group in 2011, Mr. Kropke was a Portfolio Manager with Gramercy Realty Corporation, a real estate investment trust, where he was responsible for a portfolio of commercial assets located in the Southeastern US. Prior to Gramercy, John was Vice President of Acquisitions at Mack-Cali Realty Corporation, an owner, operator, and developer of office properties in the US. At Mack-Cali, John was responsible for the firm’s acquisition and disposition activities. John also worked within Metropolitan Life Insurance Company’s Real Estate Investment Group, where he was responsible for asset management and equity transactions in the Northeastern US. Mr. Kropke received a Masters of Business Administration from Rutgers University and a Bachelors of Arts from the Miami University.

Industry Experience: 20 years Townsend Tenure: 5 years

Zach Segal, Principal

Zachary Segal is a Principal of The Townsend Group and has asset management and acquisition responsibilities for co-investment and special situation fund investments. Previously, Zachary was a Senior Vice President at Polinger Development Co., where he focused on acquisition opportunities in the Washington, D.C. metropolitan area. Zachary contributed to real estate investment banking assignments as an Associate at Goldman, Sachs & Co. and real estate private equity transactions as an Associate at Charles River Realty Investors, LLC. In addition to his private sector experience, Zachary served in various capacities at the U.S. Department of the Treasury’s Office of Financial Stability, which oversees the Troubled Asset Relief Program (TARP). As Director of Strategic Initiatives and Credit Market Programs, Zachary participated in investment activities across the TARP portfolio. Zach graduated cum laude from Dartmouth College and holds an MBA from the Tuck School of Business at Dartmouth.

Industry Experience: 15 years Townsend Tenure: 4 years

Townsend Principal Biographies

58

Mike Golubic, Principal

Michael Golubic joined The Townsend Group in 2003 and is a Principal of the firm. He is a primary senior relationship manager and portfolio manager to discretionary clients of the firm. His current responsibilities also include evaluating investment managers and selecting pooled funds. Mr. Golubic maintains primary responsibility for the firm’s efforts in the evaluation of global real asset strategies with a focus on infrastructure and Latin American real estate funds. During his tenure at Townsend, Mr. Golubic has also participated in the underwriting of open-end commingled real estate funds. Mr. Golubic is a member of The National Council of Real Estate Investment Fiduciaries (NCREIF) and The Pension Real Estate Association (PREA). In addition, Mr. Golubic frequently speaks at industry conferences including past participation at the Milken Institute Global Conference, PEI Infrastructure Investor Summit and IREI Investing in Infrastructure Conference. Mr. Golubic received a BS in Finance and Management Information Systems from Miami University.

Industry Experience: 13 years Townsend Tenure: 13 years

Sarah Cachat, Principal

Sarah Cachat is a Principal of the Townsend Group and currently oversees client administration for the firm’s discretionary segregated account practice representing over 30 clients and in excess of $6.5 billion in real estate AUM. She participates in the development of Townsend’s internal performance systems, data collection and analysis services, contributes to the firm’s best practice standards, compliance, and oversees client and fund reporting. In addition, Ms. Cachat provides consulting services to the firm’s institutional clients. As the Principal assigned to these accounts, Ms. Cachat provides clients with market insight, performance analytics, and portfolio construction. Programs include a range of investment structures including separate accounts, commingled funds, and co-investments. Ms. Cachat participates in strategic and investment planning, portfolio analysis, benchmarking, investment due diligence, and performance measurement and client relations. Ms. Cachat currently serves on the NCREIF PREA Reporting Standards Council and is a member of the Reporting Standards Compliance and Global Workgroups. Prior to joining the Townsend Group in 2004, Ms. Cachat began her career working for Barnes Wendling CPAs in 2002. Ms. Cachat obtained an MBA with a focus in accounting from the Cleveland State University. She received a BSBA in accounting and decision sciences from Miami University.

Industry Experience: 16 years Townsend Tenure: 13 years

Townsend Principal Biographies

59

Arneece Jones, Performance Manager

Ms. Jones joined The Townsend Group in 2005 and is responsible for coordinating the collection of client level data/reporting, new client setup, and creation of custom indices. Ms. Jones also assists in Townsend’s internal performance systems, portfolio analysis, and database maintenance. Prior to joining Townsend, Ms. Jones began her career working for Citizens Bank (f.k.a. Charter One Bank) in their Consumer Lending Accounting Department. Ms. Jones obtained her Bachelor of Science in Finance from Kent State University.

Industry Experience: 11 years Townsend Tenure: 11 years

Brian White, Chief Financial Officer

Brian White is the Chief Financial Officer of the Townsend Group. Brian joined The Townsend Group in July 2007 as the Controller. Prior to joining Townsend, Brian was the Controller at WR Hambrecht + Co., a boutique investment banking firm based in San Francisco. From 1997-2005, Brian was an audit manager at Grant Thornton LLP, focusing on the financial services and software industries. Brian earned a BS in Business from Miami University in 1995. He is a Certified Public Accountant and a member of the AICPA and Ohio Society of CPAs.

Industry Experience: 13 years Townsend Tenure: 9 years

Townsend Administrative Leadership

60

Disclosures

Disclosures

This presentation (the “Presentation”) is being furnished on a confidential basis to a limited number of sophisticated individuals meeting the definition of a Qualified Purchaser under the Investment Advisors Act of 1940 for informational and discussion purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any security.

This document has been prepared solely for informational purposes and is not to be construed as investment advice or an offer or solicitation for the purchase or sale of any financial instrument. While reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of preparation, The Townsend Group makes no representation that it is accurate or complete. Some information contained herein has been obtained from third-party sources that are believed to be reliable. The Townsend Group makes no representations as to the accuracy or the completeness of such information and has no obligation to revise or update any statement herein for any reason. Any opinions are subject to change without notice and may differ or be contrary to opinions expressed by other divisions of The Townsend Group as a result of using different assumptions and criteria. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

Statements contained in this Presentation that are not historical facts and are based on current expectations, estimates, projections, opinions and beliefs of the general partner of the Fund and upon materials provided by underlying investment funds, which are not independently verified by the general partner. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this Presentation contains “forward-looking statements.” Actual events or results or the actual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements.

Material market or economic conditions may have had an effect on the results portrayed.

Neither Townsend nor any of its affiliates have made any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of any of the information contained herein (including but not limited to information obtained from third parties unrelated to them), and they expressly disclaim any responsibility or liability therefore. Neither Townsend nor any of its affiliates have any responsibility to update any of the information provided in this summary document. The products mentioned in this document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates, or other factors. Prospective investors in the Fund should inform themselves as to the legal requirements and tax consequences of an investment in the Fund within the countries of their citizenship, residence, domicile and place of business.

There can be no assurance that any account will achieve results comparable to those presented. Past performance is not indicative of future results.

62

Disclosures/Definitions

GENERAL DISCLOSURES

There can be no assurance that any account will achieve results comparable to those presented. Past performance is not indicative of future results. Investing involves risk, including possible loss of principal.

Returns reflect the equal-weighted returns calculated during the periods indicated. Note: If including Core, this is value-weighted. In addition, the valuations reflect various assumptions, including assumptions of actual unrealized value existing in such investments at the time of valuation. As a result of portfolio customization/blending and other factors, actual investments made for your account may differ substantially from the investments of portfolios comprising any indices or composites presented.

Due to the customized nature of Townsend’s client portfolios, the performance stated may be considered “hypothetical” as it does not reflect the experience of individual client portfolios, but rather aggregate client positions in the stated investment strategy.

ASSETS UNDER MANAGEMENT

As of September 30, 2016, Townsend had assets under management of approximately $15 billion. When calculating assets under management, Townsend aggregates net asset values and unfunded commitments on a quarterly basis. Townsend relies on third parties to provide asset valuations, which typically takes in excess of 90 days after the quarter end. Therefore, assets under management have been calculated using September 30, 2016 figures where available but may also include June 30, 2016 figures. Assets under management are calculated quarterly. Regulatory AUM is calculated annually and available in our ADV or upon request.

ADVISED ASSETS

As of September 30, 2016, Townsend provided advisory services to clients who had real estate/real asset allocations exceeding $173.1 billion. Advised assets includes real estate and real asset allocation as reported by our clients for whom Townsend provides multiple advisory services—including strategic and underwriting advice for the entire portfolio. Advised assets are based on totals reported by each client to Townsend or derived from publicly available information. Advised assets are calculated quarterly. Select clients report less frequently than quarterly in which case we roll forward prior quarter totals. The recent change in Advised Assets is due to a change in the reporting of certain special projects.

TREA STRATEGIES (NON-CORE) employ a global non-core multi strategy approach with 50% or more of the investments invested in non primary fund investments such as co-investments, joint ventures, secondaries and clubs. Strategies are diversified by geography, sector, property type, manager and vintage year.

CORE-PLUS STRATEGIES (U.S. CORE) employ a global core/core plus multi strategy approach investing in primary funds, joint ventures, co-investments, secondaries, direct investments, debt strategies and REITs. Strategies are diversified by geography, sector, property type, manager and vintage year.

SEPARATE ACCOUNTS includes all Townsend active discretionary accounts which invest in a variety of investment styles and structures.

63

Disclosures/Definitions

TREA STRATEGIES

Townsend’s TREA Strategies (Non-Core) employ a global non-core multi strategy approach with 50% or more of the investments invested in non primary fund investments such as co-investments, joint ventures, secondaries and clubs. Strategies are diversified by geography, sector, property type, manager and vintage year.

Global Opportunistic Strategy:

Townsend’s 2007 vintage TREA Program was comprised of one closed end single limited partner vehicle (Cayuga Lake Fund, L.P.).

Global Value-Add Strategy:

Townsend’s 2007 vintage TREA Program was comprised of one closed end single limited partner vehicle (Seneca Lake Fund L.P.).

Townsend’s 2008-10-11 vintage TREA Program was comprised of one closed end single limited partner vehicle (Lake Tahoe, L.P.) and two commingled funds (Penn Square Global Real Estate Fund II, L.P. and Townsend Select Opportunities Fund, L.P.).

Townsend’s 2012 vintage TREA Program was comprised of one closed end single limited partner vehicle (Lake Tahoe, II, L.P.) and one commingled fund (Townsend Real Estate Alpha Fund, L.P.).

Townsend’s 2015 vintage TREA Program was comprised of one closed end single limited partner vehicle (Lake Tahoe, III, L.P.) and one commingled fund (Townsend Real Estate Alpha Fund II, L.P.).

Note: Investment level net IRR’s and equity multiples are reported. Net IRR is the net return earned by an investor over a particular time frame, including the performance of both realized and unrealized investments, at fair value. The Net IRR is based upon daily investor level cash flows, current quarter net asset value as hypothetical liquidation mark, and is after the deduction of fees. Investment performance data is reported to Townsend on a quarterly basis by the underlying investment manager. The value of unrealized investments is subject to change.

Net Investment Multiple: Based upon daily investor level cash flows. Calculated as ([Since Inception Distributions + Since Inception Withdrawals + Net Asset Value])/Paid in Capital).

The Townsend Group’s Investment Committee (IC) collaboratively makes all strategic investment decisions affecting Townsend’s client portfolios.

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