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Presentation on the Greek Real Estate Investment Market New York Monday 30th October 2000 Agenda • • • • Greece in a European Economy Greece in European Property Market Greek Real Estate Market Overview Why invest in Greece? Greece in a European Economy GDP Growth C zech R epublic R ussia Italy Germany Swit'land T urkey A ustria D enmark F rance UK N o rway Sweden B elgium P o rtugal Greece N 'lands Spain H ungary F inland P o land Ireland -5 0 5 10 15 20 25 30 Total Growth (%) over 1997-1999 Source: Consensus Forecasts European inflation % 25 20 15 10 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Greece Italy Portugal Spain France UK Source : OECD (1990-9), Consensus Forecasts (2000-1) European interest rates % 25 20 15 10 5 0 1990 1991 1992 1993 Greece 1994 Italy 1995 1996 Portugal 1997 Spain 1998 France 1999 2000 2001 UK Source : OECD Greek GDP growth and inflation GDP 5 growth (%) Inflation25(%) 4 20 3 2 15 1 10 0 5 -1 -2 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 GDP Inflation Sources: OECD, Consensus Forecasts Greece in European Property Market European Cross-Border Direct Investment in Real Estate - by Origin Billions Euro 20 18 16 14 12 10 8 6 4 2 0 € € € € € € € € € € € Ireland Other UK Scandinavia Far East Netherlands MiddleEast Germany 1997 1998 1999 2000 Source DTZ Research N.America Prime office rents Euro/sq.m/annum 1000 900 800 700 600 500 400 300 200 100 0 Mid-2000 Brussels Istanbul Lisbon Vienna Amsterdam Milan Madrid Dublin Athens Stockholm Paris London (City) Source: DTZ Research European prime office yields (current) 10 9 8 7 6 % 5 4 3 2 1 0 Mid-2000 Dublin Madrid Paris Stockholm Frankfurt Milan London (city) Vienna Amsterdam Brussels Lisbon Athens Source: DTZ Research European office yield trends 14 12 Paris 10 Athens Milan 8 Rome % 6 Barcelona 4 Madrid Lisbon 2 London 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 mid2000 Source: DTZ Research European shopping centre density 1999 Sweden N'lands France UK Eire Austria EU AVERAGE Spain Switzerland Portugal Germany Italy Belgium Greece 0 50 100 150 200 250 300 350 Gross Lettable Area (sq.m) per 1,000 inhabitants Source : Various Greece Real Estate Market Overview A Changing Market • Entry to Euro-Zone – Jan 2001 • Lowering of interest rates • Infrastructure Projects – New Airport – Greater Athens Ring Road and other road projects – Expansion of Metro System • 2004 Olympic Games and associated projects • Legal Framework and securitisation through mutual funds Characteristics • Traditionally owner-occupied • High State ownership – although increasing disposals through privatisations • Immature Investment Market • Historical lack of transparency and information • Currently increasing interest from domestic and international investors. The Attica market Development opportunities • • • • • • Central Athens undersupplied with quality product Urban regeneration in Central Athens and Pireaus. Demand for large spaces cannot be satisfied Development activity continues in prime locations. New Airport - Mesoghia Valley Olympic Games in 2004 and associated infrastructure projects • Interest from major foreign players: Chelverton, Lend Lease, Sonae, TrizecHahn, Rodamco, Hindes • East Coast of Attica – expansion of ports Source: DTZ Research Why Invest in Greece? International Real Estate Cycle Source: Deutsche Bank Real Estate Private Equity Why invest in Greece ? • • • • • • • • • • • • Entry into the Euro in Jan 2001 High rate of economic growth Reducing interest rate Widening yield gap between bonds and real estate returns Major EU Investment Program Olympic Games 2004 Substantial Infrastructure Improvements Positive rental growth prospects Legal framework becoming more ‘investor friendly’ Indirect property investment vehicles emerging in mutualisation Sale and leaseback opportunities Emerging market performance within the EU Source: DTZ Research