1Q 2016 INVESTMENT

OPPORTUNITIES

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Introduction2015 was the year of our creation – the moment of birth.

B-Club – #bottom-searchers & #billion-makers club was established in a evolving environment full of risk and opportunities. We have made a long way analyzing, understanding and probing the real estate markets in Russia and Ukraine before we made a bid. Please see the highlights of this successful year below.

Buy the way: what does it mean for You – to search the bottom? How do You feel there? Are we far from millions and billions to arise from our investments?

In my view – we are on the right path. Bottom is very solid, which is a foundation of the mountain. It’s easy to stay there, in this comfort zone, and much harder to explore beyond. People around would whisper scary things and rumors (oil market, currencies, politics, market collapse, etc.). Only true adventurists could continue the journey forward. Let’s get fun and money out of our journey!

It is my belief that we are on the right path and getting stronger. Figures show that much. Regardless of geopolitical and economic turmoil, the investments became profitable both in local currency and the US dollars – in Kiev and Moscow.

Our Kiev’s portfolio is 5% higher in doll, since we entered the market with 2 and 1BD in Podol Grad in 2Q and 3Q 2015. The first handover is scheduled in 2Q2016.

Our Moscow’s apartments we bought in 4Q in Match Point cost 20% higher in RUB and at least 10% in US doll today.

I feel new opportunities are revealing themselves. We’ll keep one eye on the current stock and the other on new horizons, trying to save the eyesight in a healthy way.

Sincerely Yours,Vladimir Tribrat

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MOSCOWSince 2010 the residential market in Moscow has been growing in price. Prices grew on aver-age 10 % a year. It was hard to make a deci-sion for true bottom-searches whether to buy property in Moscow for the last 3 years.

50$/barrel, demand’s slowdown and a new crisis, we assume it’s time to step in the win-

balance, proper partner developers, proper size of stakes.

Not to forget that Moscow is still one of the top markets regarding the volumes of trans-actions and annual delivery of residential real estate.

(in 3-years term) of a number of “kickers”:

■ Market upside: overall improvement of mar-ket and economic situation in 2016–2018;

■ Stage of construction upside: cost of money for local developers (the 5-years high) —

properties;

■ Asset upside: proper choice of investment assets with the max upside and minimum developers’ risk;

■ Currency upside along with oil prices re-bound (by 2018).

Meanwhile political risks in the coming years -

ments. Ukraine, sanctions and 2018 president elections are the most acute issues.

Billion Estate’s team is encouraged to provide

the residential markets in Kiev and Moscow.

Podol Grad by UkrBud at Podol, Kiev and apart-ment complex Match Point at Park Pobedy, Kutuzovsky prospect, Moscow are our “stocks-in-trade” for the 4Q 2015. Welcome on board!

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Investment opportunity Podol Grad, Kiev Match Point, Moscow YE'S, Moscow

Status Flats, shell&core Turn-key apartments

Unit size (recommended), sq.m. 55–100 30–62,5 28-44

B-Club’s price, $/sq.m. Staring $1,100 Starting $2,500 Starting $2,500

Budget From $60,000 From $100,000 From $75,000

3-year upside (Billion Estate’s estimate), % Up to 90 % Up to 80 % Guaranteed 60% return in 3 years

Rental yield on initial investment (estimate), % Up to 7.5 % Up to 10 % 60% guaranteed buy-back option

Upside structureMarket

Undervalue pricing Stage of construction

Stage of construction Undervalue pricing

Final stage of construction

Hand-over 2016–2017 2019 2017–2018

Developer UkrBud (state-owned) VTB Bank (co-developer) Pioneer Group

Risks Slow delivery Market weakness

Slow construction General market risks

Risk of non-delivery (estimate), % 5 % 2 % 1 %

Table1. Opportunities overview

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Investment opportunity

Per year, %

Estimated mark on investments, %

Russia (Moscow) Ukraine, (Kiev)

100 27

12 14

Table 2. Return in $ on existing investment pool

12%

14%

27%

100%

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Property description

Match Point Residential Complex

Match Point is a new mixed-use complex with apartments and a vol-leyball court. The business-class building that features two sections of

within ten-minute drive from the center of Moscow. The complex will be built in accordance with the latest construction technologies while natu-

amenities for comfortable living right on the site.

5.4 km

1.9 km 2 km

PoklonnayaHill

MoscowCity

Vremena Goda

Vremena Goda

MoscowCity

Poklonnaya Hill

■ Number of apartments: 1 642

■ Total build-up area: more than 200 000 sq.m

■ Infrastructure:

■ Location: – 9 km to the shopping

mall Vremena Goda – 4 km to Poklonnaya Hill – 6 km to the business cen-

ter Moscow City

a volleyball court, a dozen of kindergartens, few schools, a hospital, a movie theater, shopping malls Gorbushka, Ocean Plaza, Vremena Goda

Property description

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Podol Grad Residential Complex

Podol Grad is a modern middle-rise residential estate made with bricks in Art Nouveau style with a touch of XIX century romanticism and constructivism. It features exquisite facades, spacious layout and well-developed internal infrastructure. The community will be arranged and landscaped in accordance with up-to-date standards and world trends. The residential complex stands out with its proximity to cultural sites of the capital and to road interchange.

■ Number of units: club houses with 25–40 apartments

■ Total build-up area: 30 000 sq.m

■ Infrastructure: shops, cafes, restaurants, boutiques, drug stores,

centers, animal clinics, supermarkets, etc.

■ Location: – 1.5 km to Hyatt Regency

Kiev Hotel – 1.2 km to Mychailivska

square – 3 km to Khreschatyk

Mychailivs-ka square

Khre-schatyk

Hyatt Regency

KievHotel

1.5 km

852 m

863 m

Property description

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YE'S apart-hotel

YE'S

■ Number of apartments: 504

■ Total build-up area:

0.5 million sq.m

■ Infrastructure:

■ Location:

– 3.6 km to the Crocus Expo

International exhibition centre

– 5.1 km to the Greenwood Business Park

– 0.9 km to the Mitino metro station

Mitinometrostation

Greenwood Business

Park

900 m

5.1 km

3.6 km

fitness center with a swimming pool (3,000 sq.m), SPA-complex, restaurants and cafes, lounge bar, concierge service, retail galleries and customer service, underground and guest parking, etc.

is a complex of stylish middle-scale apartments, which are an alternative investment product on Moscow market intended for investors and tenants by its price-to-quality ratio. Advantages of the object: 4* comfort, unique infrastructure, profitability is managed by YE`S property management company. Investor benefits: 2 returns programs, ensured lease of the apartments, easy management and holding of the assets.

Crocus Expo

B-Club membership privileges

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All on a turnkey basis — purchase and sale

Complete legal support of real property business

Tax advice for non-resident investors

Special prices for our investors

The possibility of arranging a meeting with developers/

top management

for the transaction

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B-Club

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

The Club's strategy is to search and acquire highly liquid assets with outstanding value upside worldwide.

Sincerely yours,

Vladimir TribratManaging Partner, PhDB-CLUB