Ukraine March, Year-End Review

Transcription

1 Ukraine March, Year-End Review

2 Office Summary 2016 The total office supply* in Kyiv in 2016 amounted to m². The new supply was insignificant m², market s lowest since was characterized by an increase in the number of lease transactions in Grade А and В business centres. Due to a steady increase in the demand for high quality office spaces vacancy levels dropped by 3,1% compared to the previous year. The number of relocations increased. In 2016 the total office take-up in Kyiv amounted to m², which is 50% higher than in 2015 ( m²). The total vacancy level** dropped from 17,5% at the beginning of the year to 14,4% by the end of Signifying stabilization, the prime headline rent and average base rent in Grade A and B business centres remained unchanged since 2015, at $28/m²/month and $15/m²/month respectively Supply Office buildings commissioned in 2016: Office centre at 3/5, Desiatinny Lane (GLA ~ m²); MERX BC (3rd phase) 15, Leiptsigska St. (GLA ~ m²); IRVA BC (3rd phase) at 10/14, Radischeva St. (GLA ~ m²) Lagoda BC (3rd phase) at 21, Poliova St. (GLA ~ m²) Protasov BC (3rd phase) at 2/1, Grinchenko St. (GLA ~ m²). The total office supply in Kyiv in 2016 amounted to m²*. Provided that all announced business centers are commissioned on time, within the next two years the new office supply will amount to approximately m². Total Office Stock, Kyiv, ths. m² The demand for office space in 2016 mainly came from IT, pharmaceutical and manufacturing companies. * Includes all classified office buildings with GLA exceeding 5,000 m² that are ready for lease. State institutions are not included. ** The vacancy estimate does not include business centres that are officially commissioned (according to the documents), but are not suitable for occupation due to ongoing construction works. 2 Year-End Review 2016 Ukraine Colliers International

3 Demand Take-up, ths. m² Following the relative stabilization of the military conflict in the East of Ukraine, and the absence of significant fluctuations in UAH exchange rate, there is a gradual recovery in demand due to an increase in the number of companies willing to relocate. The total office take-up in Kyiv amounted to m²*, which is 50% higher than in 2015 ( m²). The renewals to relocations ratio in the total transaction volume is approximately 50/50. A number of companies have relocated to higher quality offices, while remaining within the same rent budget, or, in some cases, achieving more favourable commercial terms. The renewal deals mainly benefited tenants. As to lease terms, the majority of relocation deals were signed for a 5-year period. A number of 7-10-year leases were signed. This type of lease, however, is an exception rather than a common market practice. Demand Structure The demand for office space in 2016 mainly came from IT (41%), pharmaceutical (21%) and manufacturing companies (15%). IT sector retained the largest share in the demand structure. According to a lease agreement survey, 30%* of all lease contracts were in relation to office spaces of 2000 m² and more. Following last year s trend, the demand for high quality office spaces mainly came from multinational companies. They accounted for 76% of the total take-up volume compared to 77% in Overall, the demand for high quality office spaces remained unchanged. Provided that the economy is stable, we may expect an increase in demand coming from Ukrainian companies. Prime Rents & Vacancy Vacancy and rental rates The total vacancy level dropped from 17,5% at the beginning of the year to 14,4% by the end of In Grade A office buildings vacancy dropped from 26,8% to 19,8%. Due to the lack of new office buildings, the choice of high quality office spaces will become more limited. *Selective data used 3 Year-End Review 2016 Ukraine Colliers International

4 Only three large business centres (Grades A and B) are scheduled to be commissioned in , namely: Vacancy, % Sigma BC at 6, Havela (Lepse) Boulevard (GLA ~ m²); Astarta BC (phases 1, 2 and 3) at 58, Yaroslavska St. (GLA ~ m²); K/Most BC at 5, Zoologichna St. (GLA m²). Signifying stabilization, the prime headline rent and average base rent in Grade A and B business centres remained unchanged since 2015 at $28/m²/month and $15/m²/month respectively. Average base rent: Grade А - $16-28 Grade B - $10-15 Grade C - $5-9 Prognosis 2017 Average base rent by grade: Considering economic instability and lack of debt financing, the supply of new office space in Kyiv remains limited. Provided that all announced business centres are commissioned on time, within the next two years new office supply will amount to approximately m². Using market opportunities, multinational companies will continue to relocate to higher quality offices on similar or more favorable terms. It is likely that the declining vacancy trend for Grade A and B office centres will continue into 2017 and Rental rates will remain at the present level until economic situation improves. 4 Year-End Review 2016 Ukraine Colliers International

5 Major Completed and Pipelined Business Centers, Kyiv, GLA over m² # Property Address Year of completion Gross leasable area (GLA), m² 1 Citygate BC 1 Magnytogorska St Astarta BC 58 Yaroslavska St Unit BC 8 the Khokhlov family St Sigma BC 6 V. Havela (Lepse), Blvd BC at Holosiivskyi Ave. 132 Holosiivskyi Ave BC at Dorohozhytska St. 8 Dorohozhytska St IRVA BC (phase 3) 10/14, Radischeva St IQ BC 13/15 Bolsunovska (Strutinskogo) St Forum Victoria Park BC (phase 2) 7 Okhtyrskyi Lane Domino BC 51 Nyzhnii Val St Volna BC 36 Konovaltsa (Shchorsa) St Podol Prestige BC Nyzhnii Val St Silver Breeze BC 1v Pavla Tychyny Ave SP Hall BC 28а Bandery (Moskovskyi) Ave MERX-2 BC (phase 2) 15 Leiptsyzka St Europe BC 101/103 Stolychne Highway Crystal BC Kharkivske Highway Forum Victoria Park BC (phase 1) 7 Okhtyrskyi Lane Year-End Review 2016 Ukraine Colliers International

6 # Property Address Year of completion Gross leasable area (GLA), m² 19 Premium Center BC (phase 1) 6 Lepse Blvd Rialto BC 18 Novokostiantynivska St Shchekavytskyi BC Frunze St BC at 19 Druzhby Narodiv Blvd. 19 Druzhby Narodiv Blvd HPBC II (phase 2) 12 Amosova St Forum Kinetic BC 12 Lyvarska St. (Kurenivskyi Lane) Eleven BC (phase 1) 11 Solomianska St Flora Park BC 8 Tankova St Cosmopolite BC 6 V. Hetmana St Tsaksky BC 13 Staronavodnytska St Protasov BC 2/1 M. Hrynchenka St HPBC II (phase 1) 12 Amosova St Irva BC (phase 2) 10/14 Radyshcheva St Prague BC 6 V. Sosiury St Vremena Goda BC 16 Kudriashova St Illinskyi BC (3 phases) 8 Illinska St 2005, 2007, Palladium Plaza BC 172 Antonovycha St BC at Fizkultury St. 28 Fizkultury St Vector BC 10h Starokyivska St Granit BC 8b Raisy Okipnoi St Mikom Palace BC 27 Dehtiarivska St OB at 5 Zoolohichna St. 5 Zoolohichna St BC at 6 M. Dontsia St. 6 M. Dontsia St Karavan BC 12 Luhova St BC at 4 Verkhnii Val St. 4 Verkhnii Val St Faringeit BC 30v Fizkultury St Komod BC 1 Lunacharskoho St Grand Step BC 24d Polieva St BC at 68 Verkhnii Val St. 68 Verkhnii Val St BC at Dmytriivska St Dmytriivska St Tri Zhelaniya BC (3 phases) 14а Bazhana Ave HPBC 4 M. Hrynchenka St OB at 26 Lesi Ukrainky Blvd. 26 Lesi Ukrainky Blvd BC at 54/19 Avtozavodska St. 54/19 Avtozavodska St Itera BC 42/44 Pochainynska St FIM Center BC 17 Liniina St Forum Park Plaza BC 7-9 Moskovskyi Ave Irva BC (phase 1) 10/14 Radyshcheva St BC at 1 Dniprovskyi descent 1 Dniprovskyi descent BC at 23 Haharina Ave. 23 Haharina Ave Inkom BC 31/33 Smolenska St Stand BC 14 Vasylkivska St OB at 18/7 Kutuzova St. 18/7 Kutuzova St Cubic Center BC (phase 1) 3 Sholudenko St Forum Business City BC 13 M. Pymonenka St Podil Plaza BC 19 H. Skovorody St Kontraktovyi BC 2a Kostiantynivska St Artem BC 4 Hlybochytska St Year-End Review 2016 Ukraine Colliers International

7 Major Completed and Pipelined Business Centers, Central Business District (CBD), Kyiv GLA over m² # Property Address Year of completion Gross leasable area (GLA), m² 1 Dynasty BC 46 Antonovycha St Senator BC 2 Moskovska St. / 32-34/2 Riznytska St BC at Velyka Vasylkivska St. 98 Velyka Vasylkivska St Gulliver BC 1 Sportyvna Sq Tower BC 57 Lva Tolstoho St Toronto BC 100 Velyka Vasylkivska St BC at 70 Saksahanskoho St. 70 Saksahanskoho St Capital Hall BC 31 Zhylianska St Leonardo BC (phase 2) 19/21 Bohdana Khmelnytskoho St Prime BC 48/50 Zhylianska St Maxim BC 33v Antonovycha St Renome BC 5 Dymytrova St Parus BC 2 Mechnykova St Eurasia BC 75 Zhylianska St Renaissance BC 24 Vorovskoho St OB at 5 Velyka Vasylkivska St. 5 Velyka Vasylkivska St Europe Plaza BC (1-2 phases) Tarasa Shevchenka Blvd. / Saksahanskoho St Leonardo BC (phase 1) 17/52 Bohdana Khmelnytskoho St Botanic Towers BC 119/121 Saksahanskoho St Panorama BC 20 Velyka Zhytomyrska St Olimpiiskyi BC 72 Velyka Vasylkivska St NTBC (1 phase) 43 Zhylianska St Horizon Tower BC 42/44 Shovkovychna St OB at Pushkinska St. 42/4 Pushkinska St IOHC BC 9/2 Velyka Vasylkivska St BC business centre, ОB office building 7 Year-End Review 2016 Ukraine Colliers International

8 Retail Summary 2016 At the end of 2016, the total supply of quality retail premises in Kyiv amounted to 1,236 million m². The demand for retail space coming from active tenants is growing. The turnovers of successful retailers are gradually increasing not only in UAH, but also in foreign currency and goods, which in its turn leads to an increase in demand for retail space and gradual decline in vacancy. By the end of 2016, the prime headline rent was on average $65/m²/month for m² lots in Kyiv s main shopping centers. Rental rates for top retail space on Khreschatik Street, capital s main shopping venue, were approximately $80/m²/month. Following the opening of Lavina Mall (Kyiv s largest shopping centre, GLA: ~ m²) in December of 2016, the vacancy rate reached 10%. Supply In 2016, the new supply of retail premises in Kyiv amounted to m² - the highest number in the recent years. The following shopping centres were commissioned in 2016 : TSUM (GLA: ~ m²); SEC Lavina Mall (GLA: ~ m²); SC New Way (GLA: ~ m²); Second phase of SC "Gorodok" (GLA: ~ m²). Therefore, by the end of 2016, the total supply of high quality retail space in Kyiv reached m². The opening of several shopping centers, previously scheduled for 2016, was postponed, namely: SEC Respublika (GLA: ~ m²); SEC RETROVILLE (GLA: ~ m²); SEC Blockbuster Mall (GLA: ~ m²). Total Shopping Centre Stock in Kyiv, ths. m² By the end of the year, the supply of commercial premises in the capital was 419 m² per 1,000 people (in comparison, in Warsaw and Prague it is 663 m² and 754 m² respectively). According to developers, the new supply is expected to grow in Currently, approximately m² are being developed, which amounts to more than half of all existing supply. 8 Year-End Review 2016 Ukraine Colliers International

9 Demand Consumer Demand Despite political and economic instability throughout 2016, the dynamics of purchasing activity was positive. Saturation by Retail Space (SC/SEC) in selected CEE Capitals In 2016 the turnover rate of retail goods was positive. According to the State Statistics Committee of Ukraine, in 2016 the turnover of retail goods in Ukraine grew by 4% compared to the same period in The retail turnover in Kyiv during the given period increased by 4,8% and amounted to 184,1 billion UAH. Tenant Demand Following the 2015 trend, in 2016 the demand for retail space among existing tenants continued to grow. Tenants adopted a selective approach to projects and lease agreements. Special attention was paid to the quality of the concepts and projects, and their competitive advantages. Consumer Sentiment Index*, 2016 The growth in turnover of successful retailers was observed not only in UAH but also in foreign currency and goods. It was accompanied by a relative stabilization of the UAH exchange rate, which lead to an increase in demand for retail space and gradual decline in vacancy. For example, the vacancy rate on Khreschatik St., Kyiv s main shopping venue, dropped from 15% at the beginning of the year to 7% by the end of Some of the main launches of 2016 were: Uterque, Maje, Sandro, Roeckl, O bag, Silvian Heach, Kiehl's, Tezenis, Аtos Lombardini, Steiff, Falke, Hiltl, Miracle Me, Ravin jeans, Isabel Garcia, KIWE, and Conversе. Vacancy and rental rates Source: GfK Ukraine * Value below 100 indicates that negative consumer sentiment dominates in Ukraine Prime Headline Rent At the end of 2016, the prime headline rate for m² lots in Kyiv s most popular shopping centers was on average $65/m²/month, a 14% growth compared to the beginning of the year. The prime headline rate for Khreschatik St. Kyiv s main shopping venue averaged at $80/m²/month. Following the 2015 trend, numerous landlords made concessions for their best tenants and fixed the rent in UAH or tied it to their turnovers. By the end of 2016, the vacancy rate for Kyiv s retail property market briefly reached 10%, mainly due to the opening of Lavina Mall (GLA: ~ m²) in December Year-End Review 2016 Ukraine Colliers International

10 In 2009 and 2014, the crisis years, the vacancy rate in shopping centers in Kyiv did not reach level. If, however, Lavina Mall is excluded from the calculation, the vacancy rate amounts to 4.5%. Vacancy, % Prognosis 2017 According to the developers, the new supply is expected to grow in Approximately m² of retail space are currently being developed, which is more than half of all existing supply. It is therefore expected that some of the announced launches will be postponed. Neither demand, nor rental rates are expected to decline if the market situation remains stable. Several shopping centres scheduled to open in are exclusive projects of Colliers International (Ukraine), namely: SEC River Mall (GLA: ~ m²), which is currently under active construction, RETROVILLE Mall (GLA: ~83,000 m²), which is currently at the concept optimization stage. The opening dates of SEC Respublika (GLA: ~ m²), SEC Blockbuster Mall (GLA: ~ m²) and the third phase of Sky Mall shopping centre (GLA: ~ m²) will be confirmed in mid The 10% surge in the vacancy rate is likely to be shortlived and is unlikely to significantly affect the market. We expect that by the end of 2017 the vacancy rate for retail space will drop significantly to 5-6%, considering that most of the projects scheduled to launch in 2017 will probably be postponed. Provided that political and economical recovery continues into 2017, and UAH exchange rate remains stable, the number of active market players is expected to grow. In 2016, the majority of shop openings took place with the help of local franchise partners. In 2017, a number of international brands (including Turkish) are expected to enter the market. These companies spent several years studying the Ukrainian market and are currently involved in substantive negotiations. In future, developers are expected to be more careful about the size of the new projects. Instead, special attention will be paid to their quality and competitive advantages. 10 Year-End Review 2016 Ukraine Colliers International

11 Major Completed and Pipelined Retail Projects, Kyiv # Project Name Address GBA, m² GLA, m² Year of completion Major Completed Shopping Centres 1 Poliarnyi 2 Mayorova St. 12,400 8, , Karavan 12 Luhova St. 57,600 45, , 2006, Dream Town (3 1 phase 1, 3 2 phase 2) 1b Obolonskyi Ave. 167,000 90, Metropolis 12 Malynovskoho St. 30,000 15, Central Department Store 2 B. Khmelnytskoho St. 41,000 23, , (TSUM) Gorodok (phase 1-2) 23 Moskovskyi Ave. - 22, , Makros 16b Moskovskyi Ave. 12,000 8, Plazma 12 Moskovskyi Ave. 30,000 8, Blockbuster 34v Moskovskyi Ave. 33,000 26, Promenada Center 18 Ovrutska St. 20,000 15, Kvadrat on Lukianivka 1 Melnykova St. 9,000 6, Room 6 Velyka Kiltseva St. 40,000 21, Promenada Park 4 Velyka Kiltseva St. 60,000 43, Kvadrat on Borshchahivka 29 Hnata Yury St. 15,000 11, Bolshevik 6 Hetmana St. 90,000 40, Arkadia on Borshchahivska 154 Borshchahivska St. 27,000 15, Europort 15а Lukashevycha St. 13,000 6, Year-End Review 2016 Ukraine Colliers International

12 # Project Name Address GBA, m² GLA, m² Year of completion 18 Ukraina 3 Peremohy Ave. 38,000 24, Globus (phase 1) Maidan Nezalezhnosti 16,500 9, Globus (phase 2-3) Maidan Nezalezhnosti 16,000 9, Mandarin Plaza 4 Baseina St. 18,100 7, Metrograd Velyka Vasylkivska St. 18,000 10, Ocean Plaza 176 Antonovycha St. (Horkoho St.) 154,000 72, Araks 110 Velyka Kiltseva 30,000 27, Magelan 13b Hlushkova Ave. 28,000 22, Domosphera 101 Stolychne Highway 30,500 22, RayON 4 Lavrukhina St. 66,000 24, Global UA 2а Balzaka St. 9,000 7, Sky Mall 2 Henerala Vatutina Ave. 97,000 67, Kvadrat on Perova 36 Perova Blvd. 40,700 19, Komod 4 Lunacharskoho St. 14,000 10, Dytiachyi Svit 3 Malyshko St. 20,000 11, Darnytsia 1 Myru Ave. 12,000 6, Arkadia on Dniprovska Naberezhna 33 Dniprovska Naberezhna 33,000 18, InSilver 3 Sribnokilska St. 12,800 10, Aladdin 3а Hryshka St. 16,000 10, Piramida 4а Mishuhi St. 16,000 12, Marmelad (phase 1) 154 Borshchahivska St. 10, Gulliver 1 Sportyvna Sq. 63,000 45, Manufactura Khodosivka village, Novoobukhivkse Highway 25,000 15, Art Mall 37 Zabolotnoho St. 50,000 35, Silver Breeze Dniprovska Naberezhna / Tychyny St. 22,000 16, Atmosfera 103 Stolychne Highway 38,000 30, Prospekt Chervonotkatska St./ Chervonohvardiiska St. 75,000 41, Aprel 19a Lesia Kurbasa Ave. 6,900 5, Doma Center 40 Budivelnykiv St. 10,000 8, Epicentr 20D Poliarna St. 105,000 70, Novus 7G Zdolbunivska St. 19,830 13, New Way A. Verbytskoho St. 22,000 17, Lavina Mall 6 Berkovetska St. 140, , Major Shopping Centres due to Complete in * 1 SEC on Dehtiarivska St. Dehtiarivska St. / Kopernyka St. 64,000 45, Auchan Petrivka 15A, Stepana Bandery Ave. 12,000 11, Auchan Kideal Zbolbunivska St./ Dragomanova St. 22,000 20, Respublika 1 Velyka Kiltseva St. 298, , River Mall Dniprovska Naberezhna 140,000 59, Ocean Mall Lybidska Square 150,000 70, Sky Mall (3rd phase) 2 Henerala Vatutina Ave. 51,450 37, Retroville Pravdy Ave. 116,000 83, Blockbuster Mall Moskovskyi Ave. 242, , Smart Plaza (Obolon) 21, Tymoshenka St. 13,000 9, Smart Plaza (KPI) Peremohy Ave. 25,000 15, Total * There is a probability that some shopping centres will be phased and completion of several shopping centres will be postponed to a later date. **In case of resolving the issue of property rights 12 Year-End Review 2016 Ukraine Colliers International

13 Warehouses Summary 2016 Some of the main trends for the warehouse market in Kyiv region in 2016 were: a mild growth in demand among tenants, a slight increase in the number of large purchase deals, as well as a moderate reduction in vacancy rates and their stabilization. In 2016, a number of purchase deals were closed: Dragon Capital acquired West Gate Logistic (GLA m²) and East Gate Logistic warehouses (GLA m²), owned by GLD INVEST (Austria). Rozetka LLC purchased Terminal Brovary warehouse complex (GLA m²). All three facilities were built with loan financing. These sales allowed the owners to fulfill their debt obligations. A number of facilities are scheduled for commissioning in San Factory (phase 3) and Terminal Nova Poshta (phase 1) will be commissioned in Q2 and Q3. The 2nd phase of the Amtel complex and phase 3 of Unilogic Park will be commissioned according to the built-to-suit scheme, which means that contracts with prospective tenants must be concluded first. Total Industrial Stock, Kyiv and Kyiv Region, ths. m² In 2016, the third phase of Biocon s warehouse complex was commissioned (GLA m²). The building is to be used by Biocon for their own purposes. At the end of 2016, the rental rates in Grade A warehouse facilities were approximately $3-4,5/m²/month (excluding VAT), and $2-3/m²/month in Grade B. Supply At the end of the year, the total supply of all-purpose warehouses in Kyiv and Kyiv region reached approximately 1.68 million m². In 2016, the new supply amounted to m². At the same time, there was no construction activity in the open rent market. In 2016, a single warehouse was commissioned: the 3rd phase of Biocon s warehouse complex (GLA m²). 13 Year-End Review 2016 Ukraine Colliers International

14 Demand In 2016, the uptake of warehouse space has grown by 27%, compared to 2015, and amounted to m². Vacancy, % Logistics companies dominated the warehouse market generating demand for warehouse space. The average lease transaction size reached 7-10 thousand sq. m. Usually, new leases were the result of expansions or relocations caused by the need to review the size of warehouse space and adopt operational expenses to the market. The take-up of warehouse space in 2016 increased by 27%, compared with 2015, and amounted to m². The biggest warehouse deals of 2016 were: Rozetka s lease of Terminal Brovary warehouse ( m²); Zammler s lease of RLTS Victor warehouse ( m²); FIEGE s lease of Terminal Brovary warehouse (7 000 m²) Nova Poshta s lease of a warehouse complex in Brovary ( m²); Lease of a warehouse complex in Zhitomir direction (9 000 m²); Starco s lease of West Gate Logistic warehouse (4 500 m²). Average Rental Rates Vacancy and Rental Rates Due to the lack of new warehouse facilities available in the open market and a high take up rate, by the end of 2016, the vacancy rate dropped to 6.6%. In 2016 rental rates remained unchanged compared to Rental rates for Grade A warehouses were on average $3- $4,5/m²/month, excluding VAT, and $2-$3/m²/month, excluding VAT, for Grade B. Overall, landlords agreed to concessions and discounts for their main tenants. In Grade A warehouses, landlords started including operating expenses in the base rent. In the majority of lease agreements, rent was fixed in UAH for a period 1 year or longer. 14 Year-End Review 2016 Ukraine Colliers International

15 Prognosis 2017 A further decrease in vacancy rates is expected due to the lack of new construction. As a result of low vacancy combined with UAH exchange rate fluctuations, a slight increase in rental rates is to be expected. In 2017, two facilities will be commissioned (neither of which will be available on the open rent market). Amtel (phase 2) and Unilogic Park (phase 3) with the total area of m² will be commissioned only if the contracts with prospective tenants are concluded (built-to-suit scheme). A gradual recovery of demand is expected from manufacturers, retailers and logistics companies. Due to the lack of active construction of new warehouse facilities, gradual reduction of the premises available on the open market, and fluctuations of the national currency, an increase in rental rates is expected. Several facilities are scheduled for commissioning in Q2-Q3 2017, namely: San Factory warehouse (phase 3) and Nova Poshta Terminal warehouse (phase 1). The 2nd phase of the Amtel complex and 3rd phase of Unilogic Park will be commissioned after the contracts with prospective tenants are concluded according to the built-tosuit scheme. 15 Year-End Review 2016 Ukraine Colliers International

16 Major Existing and Pipelined Industrial Projects in Kyiv and Kyiv Region # Property Name Highway Area, m² Year of Completion Major Completed Projects, for Open Market 1 San Factory (phase 2) Kyiv 7, Refrigerated Logistics Center (RLC) М-01 63, Etalon (phase 2) M-05/М-06 6, Customs Terminal (phase 2) M-05/M-06 10, Ice Box Kyiv 5, San Factory (phase 1) Kyiv 10, Shchaslyve M-03 30, Krasylivka Industrial Park М-01 15, Petrivtsy Р-27 9, Transwest M-06 9, Vorzel Terminal М-07 12, Unilogic Park (phase 2) М-01 22, Arktika М-05/М-06 17, Terminal-1 М-0 31, Impeco М-07 8, Warehouse complex М-03 2, Amtel М-05/М-06 42, Santa Frost М-05/М-06 6, , Terminal Brovary М-01 49, Yuta-Service М-06 12, UKR DC М-05/М-06 19, Warehouse complex Kyiv 6, ABC Logistic Group М-04/М-05 11, Olvita/URC М-03 8, MMK М-01 24, Top-Trans М-01 17, Warehouse complex Kyiv 5, BF Sklad (phases 1-2) М-03 72, , Metal-Holding Kyiv 5, Plazma Logistic М-03 21, Amos М-01 11, Avgust Plus М-07 7, Year-End Review 2016 Ukraine Colliers International

17 # Property Name Highway Area, m² Year of Completion 33 ICT М-05/М-06 20, West Gate Logistic М-06 96, MLP-Chaika М , Customs Terminal М-05/М-06 7, Kopyliv Logistics Park М-06 27, Komodor М-06 59, Mirazh (phases 1-4) М-07 28, , Prommash (phases 1-2) М-01 13, , Brokbusiness М-07 3, Andakta М-07 5, East Gate Logistic M-03 40, Logistic Park East 1 М-01 18, WWM Center М-05/М-06 10, Omega-1 М-01 16, KMP М-05 9, Etalon (phase 1) М-05/М-06 9, Fim Center (Chaika) М-06 26, Obukhiv-II М-04 9, L-town M-04 8, Unilogic Park (phase 1) М-01 10, Major Completed Projects, Owner Occupied 1 Biocon (phase 3) M Slavutych Kyiv Epicenter М FM Logistic (phase 3) P-03 14, Imperial Tobacco Kyiv 7, FM Logistic (phases 1-2) P-03 14, Raben (phase 3) M-01 20, Techenergotrade М Interfarm M-07 8, Logistics complex in Petrivske M-05/M-06 9, BF Sklad (phase 3) М-03 30, Warehouse complex М-05 5, Technopolis М-01 21, Falbi М-05/М-06 12, Ice Terminal М-01 18, Raben (cross-dock) М-01 5, Reynaers Ukraine М-01 10, Biocon (phases 1-2) М-01/М-03 30, , Kviza М-03 10, Skandinavia Kyiv n/a Forum Warehouse Kyiv Warehouse complex М-04 11, Raben (phases 1-2) М-01 30, , 2008 Major projects due to Complete in 2017 Owner Occupied 24 Terminal Nova Poshta (phase 1) M-05/M San Factory (phase 3) Kyiv Year-End Review 2016 Ukraine Colliers International

18 524 offices in 68 countries on 6 continents $2,6 billion in annual revenue 170 million square meters under management of professionals Contacts: Managing Director: Alexander Nosachenko alexander.nosachenko@colliers.com Office Agency: Maxym Tkalenko Director maxym.tkalenko@colliers.com Yevgenia Rozumna Director yevgenia.rozumna@colliers.com Pavlo Makukha Director pavlo.makukha@colliers.com Alexander Semenov Director alexander.semenov@colliers.com Retail Agency: Natalia Kravets Director natalia.kravets@colliers.com Igor Zabolotskyi Director igor.zabolotskyi@colliers.com Valuation and Advisory Services: About Colliers International Colliers International is a global leader in commercial real estate services, with more than professionals operating out of 524 offices in 68 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate occupiers, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. Colliers International has been recognized and ranked by the International Association of Outsourcing Professionals Global Outsourcing 100 for 10 consecutive years, more than any other real estate services firm. Colliers International started its operations in Ukraine in colliers.com Natalia Chystiakova Director natalia.chystiakova@colliers.com Colliers International Ukraine Business center Gulliver 1-А Sportyvna Sq. Kyiv Ukraine Copyright 2016 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. 18 Year-End Review 2016 Ukraine Colliers International