INTEGRATES METROVACESA 21 JUNE 2016 Larger, Broader, Stronger
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TABLE OF CONTENTS Transaction highlights Metrovacesa overview Transaction rationale Structure and terms Collateral value: creation of a leading Spanish rented residential player Timetable and conclusions Appendix
BORRADOR SUJETO A CAMBIOS TRANSACTION HIGHLIGHTS 3
Transaction highlights Integration of Metrovacesa: Compelling strategic rationale Unparalleled footprint Consolidation of the #1 office portfolio in Spain, increasing exposure to Madrid and Barcelona CBD Dramatic scale-up in shopping centers, becoming the #2 player in Spain with presence in the regions with the highest GDP per capita Leadership and European scale Undisputed Spanish leader across all asset categories providing the best opportunity to benefit from the Spanish property market recovery Creation of one of the largest diversified commercial REITs in Continental Europe Tangible embedded upside Company poised for compelling short-to-medium term value and FFO growth: Occupancy improvement Rent reversion Repositioning capex Additional revenue and cost synergies Management commitment to tighten overheads cap and adjust stock plan Enhanced options for non-core assets Collaterally, the transaction creates a leading Spanish rented residential platform, while deconsolidating it from Enhances the attractiveness and liquidity of the hotel division which becomes the #1 net lease hotel operator in Spain NOL carry forwards of MVC to mitigate impact of non-core divestments 4
Transaction highlights Structure, terms and timing Transaction structure and key terms Spin-off of MVC into 3 business lines: (a) commercial property (GAV 3,190 m / NAV 1,673 m / GRI 152 m) (b) rented residential (GAV 692 m / NAV 442 m / GRI 22 m); and (c) land bank Acquisition of MVC s commercial property in exchange for 146.7 m shares Resulting ownership: shareholders 68.76%; MVC shareholders 31.24% (1) Simultaneous merger of MVC s rented residential platform into s platform Resulting ownership: MVC shareholders 65.8% (2) ; 34.2% (deconsolidation) Land bank retained by MVC shareholders Enlargement of BoD to reflect new shareholding structure: 15 members 3 Santander, 1 BBVA, 2 executives and 9 independents from and Testa Governance and Management Non-executive chairman: Mr. Rodrigo Echenique Executive vice-chairman and CEO: Mr. Ismael Clemente management team to remain unchanged New proposal to reduce participation levels of the MSP in Total Shareholder Return (3) JV Residential Company: internally managed by the Testa Residencial management team under the supervision of, through a Service Level Agreement Approvals and timing Transaction subject to approval of and MVC shareholders (September 2016) Transaction subject to antitrust approval Expected closing: Q4 2016 (1) Santander 21.95%; BBVA 6.41%; Popular 2.86%; Minorities 0.02% (2) Santander 46.21%; BBVA 13.49%; Popular 6.01%; Minorities 0.05% (3) Subject to AGM approval 5
Transaction highlights Appealing transaction from a financial perspective NAV accretive Stock for stock transaction: new shares issued at 11.40 per share 15.8% premium to NAV (1) ; 22.6% to unaffected share price (2) and 16.9% to L3M VWAP (3) Overall 5.7% accretive in NAV p.s. (1) : combined company pro-forma NAV of 10.41 p.s. s residential portfolio contributed at a 30.1% premium to NAV Highly attractive acquisition capital values Very attractive acquisition capital values vs. comparable market transactions (4) Office: 3,192/sqm (5) vs. 4,900-7,500/sqm in CBD and 2,500-4,400/sqm in non-cbd Shopping centers: 2,735/sqm (5) vs. 2,400-4,600/sqm Hotels: 115k/room (5) vs. 132k-186k/room FFO accretive since year 1 Transaction FFO accretive from day 1 Assumes MVC s post-transaction overhead expenses fulfill s current overhead policy Reconfirmed commitment to distribution policy of 80% of FFO New overheads cap policy Existing policy in place until end of 2017 (integration phase) New commitment from Management Greater of 5.75% of GRI or 0.575% of NAV for 2018 and 2019 Greater of 5.50% of GRI or 0.550% of NAV from 2020 onwards Sound capital structure preserved Enhancement of s credit profile Decrease in LTV from 50.6% to 49.0% post transaction, based on March 2016 reported GAV (6) Maintenance of healthy financing ratios within s policy and S&P guidelines Transaction does not trigger an early termination event in or MVC s bank debt / bonds (1) Based on 31 December 2015 reported NAV of 9.85 per share (2) Based on 20 June 2016 close price 9.30 per share (3) L3M Volume Weighted Average Price of 9.75 per share (4) Selected market transactions comparable to MVC s assets in each asset class, mostly completed within the last 18 months (5) Not adjusted for NAV increase from implied new shares issuance premium (6) Based on March 2016 GAV for and December 2015 GAV for MVC 6
METROVACESA OVERVIEW 7
Metrovacesa overview Superb portfolio fit with Key figures (1) Irreplicable high quality portfolio 1,277,373 sqm GLA 81.4% OCCUPANCY 2.4 years WAULT 152 m GRI (2) 124 m NRI (2) 4.8% GROSS YIELD 3,190 m GAV 1,539 m NET DEBT (3) 1,673 m NAV Office and shopping centers: ~90% of MVC (4) BREAKDOWN BY GAV 8% 3% BREAKDOWN BY GRI 10% 2% 31% 58% 38% 50% Office Shopping centers Hotels Other (5) (1) As of 31 December 2015. Excludes rented residential assets to be contributed to JV Residential Company (2) Annualized gross rents / net rents calculated as passing gross rent / net rent as of pro-forma 31 December 2015, multiplied by 12 (3) Pro-forma after refinancing completed in May 2016 and excluding 250 m to be contributed to JV Residential Company (4) Based on GAV (5) Other composed of miscellaneous including logistic assets, retail premises, senior residences, parkings and others. Land excluded from the transaction 8
Metrovacesa overview very well positioned to benefit from the recovery cycle Diversified across s core divisions Significant upside in rental levels 3,192 2,735 115k (1) n.m. 5.9% 6.8% 6.1% n.m. 1,835 1,004 4.1% 5.8% 5.8% n.m. 76 58 Office GAV (3) ( m) Shopping centers 256 Hotels GAV (3) ( /sqm) 95 Other (2) 11.0 Office GRI (4) ( m) 13.1 / 14.6 (5) Shopping centers Passing rent (4) ( /sqm/m) 15 5.5 Hotels ERV yield Gross yield 3 Other (2) Suboptimal occupancy levels and short WAULT 78% 76% / 84% (5) 2.9 1.8 3.8 100% 3.3 62% 81.4% Average occupancy (3)(6) 2.4 Average WAULT (3) Office Shopping centers Hotels Other (2) (1) Refers to /room (2) Other composed of miscellaneous including logistic assets, retail premises, senior residences, parkings and others. Land excluded from the transaction (3) As of 31 December 2015 (4) Annualized gross rents calculated as pro-forma passing gross rent as of 31 December 2015, multiplied by 12. Passing rent as of 31 December 2015 (5) Excluding a shopping center currently under repositioning (6) Not adjusted for assets under repositioning. If adjusted, average occupancy would be 82.1% 9
Metrovacesa overview Office portfolio: Prime portfolio of high quality properties in Madrid and Barcelona MVC office KPIs (1) # Assets 37 GLA 574,781 sqm GAV 1,835 m Capital value psm 3,192 / sqm GRI 76 m Gross yield 4.1% ERV yield 5.9% Physical occupancy 78% WAULT 1.8 years Located in s core markets BREAKDOWN BY MARKET (BY GAV) 11% Large portfolio of prime assets Remarkable footprint in prime CBD, including trophy assets complemented by presence in high growth areas in the North of Madrid 89% Madrid Barcelona Broad offer spectrum High quality tenants BREAKDOWN BY LOCATION (BY GAV) 18% 34% 48% CBD NBA Periphery (1) As of 31 December 2015 10
Metrovacesa overview Shopping centers: Unique portfolio in strategic locations with upside potential MVC shopping centers KPIs (1) Dominant malls in prime urban locations # Assets 14 GLA 367,090 sqm GAV 1,004 m Capital value psm 2,735 / sqm GRI 58 m Gross yield 5.8% ERV yield 6.8% Physical occupancy 76% / 84% (2) WAULT 2.9 years 2015 Footfall 49 m Footprint in high GDP / capita regions Top-tier tenants (1) As of 31 December 2015 (2) Excluding a shopping center currently under repositioning 11
TRANSACTION RATIONALE 12
Transaction rationale Transaction rationale: A perfect fit 1 Consolidation as the unrivaled #1 office portfolio in Spain, reinforcing leadership in Madrid and Barcelona CBD markets 2 Dramatic scale-up of footprint in shopping centers, becoming #2 player in Spain 3 Tangible embedded upside in Metrovacesa s portfolio and increased exposure to market tailwinds 4 Enhanced options for non-core businesses 5 Becoming one of Continental Europe s largest diversified pure-play commercial REITs and the undisputed Spanish leader across all asset classes Irreplicable, balanced and diversified prime portfolio, uniquely positioned to benefit from the Spanish real estate market cycle 13
Transaction rationale 1 Office leadership reinforced by increased CBD presence and diversification Madrid and Barcelona CBD (1) GLA ('000 sqm) 202 41 161 pre-transaction 340 63 277 post-transaction Madrid CBD Barcelona CBD post-transaction office KPIs (2) # Assets 84 GLA 1,159,750 sqm GAV 4,104 m Capital value psm 3,539/sqm GRI 193 m Gross yield 4.7% Physical occupancy 84% WAULT 3.3 years Portfolio breakdown BY CITY (BY GAV) BY LOCATION (3) (BY GAV) BY PRODUCT (BY GLA) 4% 11% 13% 29% 42% 47% 83% 71% Madrid Barcelona Other CBD New business areas Periphery Multi-tenant Single-tenant Enlarged presence in Madrid and Barcelona CBD Enhanced flexibility and breadth of solutions for current and future tenants (1) Madrid CBD includes inside M-30. Barcelona CBD includes inside Ronda de Dalt and on the east, the beginning of 22@ (2) figures as of 31 March 2016 and MVC as of 31 December 2015 (3) Only includes assets located in Madrid and Barcelona 14
Transaction rationale 2 Dramatic scale-up in shopping centers, becoming #2 player in Spain Significant upgrade in scale GLA Evolution ('000 sqm) 6 20 Player 531 on par with the #1 player Ranking of Spanish shopping center players Owned GLA (sqm) 1 Unibail-Rodamco 570k sqm post-transaction shopping centers KPIs (1) # Assets 20 GLA GAV 531,165 sqm 1,677 m 164 2 531k sqm 3 Klepierre 359k sqm 4 CBRE GI ~ 325k sqm (2) Capital value psm 3,138 / sqm GRI 96 m Gross yield 5.8% Physical occupancy 81% / 87% (3) pre-transaction # assets post-transaction 5 Carmila 219k sqm Source: Company reports, CBRE GI estimated WAULT Footfall (2015) 2.9 years 98 m Revenue synergies as becomes the reference landlord for top retailers Enhanced retail offering to result in increased profitability MVC contributes a valuable internal retail asset management team 23 experienced employees with strong track record in development and management (1) figures as of 31 March 2016 and MVC as of 31 December 2015 (2) Estimated (3) Excluding a shopping center currently under repositioning 15
Transaction rationale 3 Tangible embedded upside in Metrovacesa s portfolio Offices Increased scale: flexibility and breadth of solutions Largest exposure to Madrid and Barcelona CBD markets Ample scope for active asset management initiatives Shopping centers Potential revenue synergies from increased negotiation power with retailers Internal management team with 23 professionals Synergies potential Commitment to tighten overheads policy (1) Further synergies from economies of scale through centralised procurement driving up gross-to-net ratio Financial savings through refinancing benefitting from stronger credit profile Significant upside in MVC s recurrent FFO ( million) 267 85 2 20 21 19 328 182 Pro-forma transaction FFO (2) Commitment to tighter overheads cap MVC reaches 's 95% occupany MVC reaches 's NRI/GRI ratio MVC at ERV rents Pro-forma FFO including upsides FFO MVC FFO Successful integration of Testa in record time Management has proved to have the experience and skills to execute a smooth integration Solid track record implementing asset management plans and crystallizing synergies (1) Subject to AGM approval (2) s FFO based on 2016 Bloomberg consensus of 0.55 p.s. ( 178 m) adjusted for the deconsolidation of residential activity (- 6 m) and for the impact of the JV Residential Company(+ 10 m) 16
Transaction rationale 3 and increased exposure to market tailwinds Commercial annualized LfL rent evolution 2016 YTD (passing Jun-16 vs. passing Dec-15) Occupancy (%) WAULT (yrs) Pre Post Pre Post Office 90% 84% 4.3 3.3 Shopping centers 93% 81%/87% (1) 2.8 2.9 LfL 000 % Renewed # leases Rent change Occupancy CPI Rent % LfL effect in total % LfL same space Office 12% 40 (1,162) (811) (172) (179) (0.16%) (0.91%) excl. expiry of pre-crisis leases 9% 38 2,100 1,480 (166) 786 0.75% 5.70% Shopping Centres 12% 53 (900) (1,414) (29) 544 1.46% 11.99% Logistics 18% 4 546 647 (29) (72) (0.37%) (2.02%) excl. expiry of pre-crisis leases 16% 3 741 647 (21) 115 0.67% 4.32% TOTAL 13% 97 (1,441) (1,578) (156) 294 0.18% 1.06% excl. expiry of pre-crisis leases 11% 94 2,016 713 (142) 1,445 0.91% 6.24% as evidenced by positive LfL rental growth (1) Excluding a shopping center currently under repositioning 17
4 Transaction rationale Enhanced options for non-core businesses Creation of a national leader in the attractive rented residential market while deconsolidating from Metrovacesa shopping centers Pro-forma Rented residential KPIs KPIs (1) Pro-forma Hotels KPIs (1) GAV 980 m # Units 4,706 units Physical occupancy 92% GRI 35 m Gross yield 3.5% NAV 619 m Increased attractiveness and liquidity of the hotel division, becoming #1 net lease hotel operator in Spain GAV 654 m # Rooms 4,495 rooms Physical occupancy 100% GRI 38 m Gross yield 5.8% WAULT 3.8 years Resulting shareholding 14% 46% 6% 34% 30% premium to NAV contribution and allowing deconsolidation from Santander BBVA Popular Hotels GAV evolution ( million) 10 24 654 398 pre-transaction post-transaction # assets Increased flexibility with NOL carry forwards to mitigate impact of non-core divestments (1) figures as of 31 March 2016 and MVC as of 31 December 2015 18
Transaction rationale 5 Continental Europe s largest diversified commercial REIT and undisputed Spanish leader Europe s largest diversified pure commercial REIT (1) By GAV (2) ( billion) 37.8 22.1 18.7 18.5 12.3 11.6 (3) 11.0 9.3 9.2 9.1 Player type: Shopping centers UK players Shopping centers UK diversified UK diversified Continental European players Shopping Centers Office pure play Commercial and residential Commercial diversified Shopping centers Office pure play Undisputed leader in the Spanish real estate market across all asset classes By GAV (2) ( billion) By GRI (2)(4) ( million) 9.3 (3) 6.9 2.1 1.5 1.0 0.9 483 (5) 231 62 105 46 40 Spanish Non-Spanish (1) Only including commercial real estate players (2) figures as of 31 March 2016 and MVC as of 31 December 2015 (3) Includes JV Residential Company contribution at proportional NAV. Includes non-material Paris assets from MVC (4) Annualized gross rents calculated as passing gross rent as of March 31 2016, multiplied by 12 (5) Includes income from minority stake in JV Residential Company 19
Transaction rationale Larger, Broader, Stronger Breakdown by asset class (1) 11% 31% pre-transaction 4% 6% 5% 6% 6.2 Bn (5) (2) 37% post-transaction 3% (3) 2% 5% 7% Office High street retail Shopping centers Hotels Logistics Rented residential Other 18% 21% 9.3 Bn (5) (4) 44% Balanced combination of: #1 irreplicable office portfolio with shorter WAULTS Dramatic scale-up in shopping centers to benefit from the Spanish consumer recovery Resilient high street retail to navigate the cycle Leading logistic platform Pro-forma EPRA gross yield per asset type (1)(6) Pro-forma Occupancy and WAULT (1) per asset type 4.7% 5.1% 5.8% 6.9% 5.8% 5.3% Average gross yield 84.0% 100.0% 20.5 81.0% 93.5% 100.0% 89.7% Average occup. 3.3 2.9 4.1 3.8 7.1 Average WAULT Office High street retail Shopping centers Logistics Hotels Office High street retail Shopping centers Logistics Hotels WAULT (years) Occupancy (%) (1) figures as of 31 March 2016 and MVC as of 31 December 2015 (2) Other includes land and projects under development (3.6%), minority stakes (2.2%) and other miscellaneous assets (3) Corresponds to s 34% minority stake in JV Residential Company NAV (4) Other includes land and projects under development (2.4%), minority stakes excluding residential (1.5%) and other miscellaneous assets (5) Total portfolio GAV (Including land and development GAV) (6) Gross yield is calculated dividing annualized gross monthly rents by GAV 20
Transaction rationale Pro-forma financial metrics Combined figures m (1) (Dec-15) ex. residential Metrovacesa (1) Impact from JV Residential Company Posttransaction GAV (2) 6,053 5,764 3,190 211 9,166 NAV (2) 3,181 3,005 1,673 211 4,890 GRI (3) 310 298 152-450 NRI (3) 292 283 124-407 GRI/NRI ratio 94% 95% 81% n.a. 90% FFO (4)(5) 178 172 85 10 (6) 267 (1) pre-transaction includes rented residential. MVC excluding rented residential (2) Including minority stakes (3) Annualized gross rents / net rents calculated as passing gross rent / net rent as of 31 March 2016, multiplied by 12 for and pro-forma passing gross rent /net rent as of 31 December 2015 for MVC (4) For based on 2016E broker consensus (5) Assumes (i) MVC s post-transaction overhead expenses fulfill s current overhead policy (6) and (ii) current MVC cost of financing (7) Includes revenues from residential Service Level Agreement and attributable FFO from JV Residential Company 21
STRUCTURE AND TERMS 22
Structure and terms Transaction summary (I) Transaction structure MVC to spin-off in 3 business units: commercial assets (including offices, shopping centers, hotels and other), rented residential and commercial land to acquire MVC s commercial assets in exchange for shares MVC s residential business to merge into s resulting in deconsolidation MVC s land excluded from transaction Transaction terms 100% stock transaction: issues 146.7 m shares at a price of 11.40 p.s. 15.8% premium to NAV (1) ; 22.6% to unaffected share price (2), 16.9% to L3M VWAP (3) Resulting ownership post-transaction shareholders: 68.76% MVC shareholders: 31.24% (Santander 21.95%; BBVA 6.41%; Popular 2.86%) 180-day initial lock-up for MVC shareholders (4) Orderly sale mechanism agreed by Santander, BBVA and Popular 90 days lock-up for future sell-downs for both participating and non-participating selling shareholders (5) and MVC will distribute to shareholders 66 m and 50 m, respectively, before transaction closing (1) Based on December 2015 reported NAV of 9.85 per share (2) Based on 20 June 2016 close price 9.30 per share (3) L3M Volume Weighted Average Price of 9.75 per share (4) Minorities from MVC representing 0.02% of combined entity not subject to lock-up (5) Orderly sale mechanism to apply to blocks over 1% of TSO. In addition, MVC shareholders are restricted from dribbling-out over 20% of the average daily volume 23
Structure and terms Transaction summary (II) Corporate governance and management team Board of Directors to increase from 10 to 15 members 9 independents from and Testa 3 representing Santander, including Mr. Rodrigo Echenique as non-executive chairman, 1 representing BBVA 2 executives Shareholders Board representation proportional to respective stake Management Team to remain unchanged: Ismael Clemente CEO New proposal to reduce appropriation levels of Total Shareholder Return in MSP (1) Above 8% hurdle: 6% instead of 10% in place Above 12% hurdle: 9% instead of 15% in place Transaction conditions & timetable Transaction subject to and MVC General Shareholders Meeting Reciprocal 75 MM break-up fee if transaction not approved by either AGM Transaction subject to antitrust Transaction closing expected by Q4 2016 (1) Subject to AGM approval and retroactive to 2016 24
Structure and terms Transaction structure summary: compliant with the SOCIMI regime 1 Pre-transaction status quo 2 Metrovacesa Full spin-off of MVC in three business lines MVC Excluded from transaction scope commercial real estate rented residential MVC commercial real estate MVC rented residential MVC commercial land 3 The transaction Contributed to: JV Residential Company MVC shareholders Shareholders 68.76% 31.24% MVC Shareholders 65.76% 34.24% JV Residential Company Service Level Agreement commercial real estate MVC commercial real estate rented residential MVC rented residential 25
Structure and terms Accretive to shareholders from day 1 +5.7% accretive in NAV and 3.4% in FFO p.s. Compelling entry capital values (Dec-15) posttransaction (1)(2) Entry capital values ( /sqm) portfolio ( /sqm) Market transactions ( /sqm) GAV ( m) 6,053 9,166 Office 3,192 3,880 CBD: 4,900-7,500 (6) Other: 2,500-4,400 (7) NAV ( m) 3,181 4,890 Shopping centers 2,735 4,041 2,400-4,600 (8) NAV ( p.s.) (3) 9.85 10.41 NAV accretion p.s. 5.7% Hotels (5) 115k 176k 132k-186k (9) Source:, PMA FFO ( p.s.) (3) 0.55 (4) 0.57 FFO accretion p.s. 3.4% + 228 million of incremental NAV resulting from issuing shares at a premium to NAV not accounted for in entry capital values calculations Reconfirmed commitment to dividend policy Reconfirmed commitment to dividend policy equal to 80% of FFO Reconfirmed guidance for 2016 dividend of 140 m Interim distribution of 66m ( 0.204 p.s.) to be distributed in September/October 2016 Complementary dividend of 74 m ( 0.158 p.s.) (10) to be distributed in April 2017 (1) and MVC as of 31 December 2015 (2) Includes proportional stake in JV Residential Company (3) Based on 323.0 m shares pre-transaction and 469.8 m shares post transaction (4) s FFO based on 2016 market consensus DPS of 0.44 and implied FFO of 0.55 p.s. (5) Refers to /room (6) Includes the following transactions: Genova 17, Paseo de la Castellana 89, Santa Engracia 120 (7) Includes the following transactions: Rios Rosas 26, General Lacy 23-25, Av. Manoteras 18, Av. America 115, Principe de Vergara 112, Portfolio Cristalia-Foster Wheeler (8) Includes the following transactions: Airesur, Moraleja Green, Espacio Leon, Zielo (9) Includes the following transactions: Tryp Atocha, Senator Gran Via (10) Assuming new TSO post-transaction of 469.8m shares 26
Structure and terms Reinforced investment grade credit with enhanced business profile, lower leverage and improved financial ratios Key metrics (as of Mar-16) Combined debt breakdown Policy pre-transaction (1) post-transaction Gross debt 3,271 m 4,730 m 3% 4% Net debt 3,138 m 4,565 m Undrawn revolving facilities 320 420 Avg interest rate 2.3% 2.2% LTV <50% 50.6% 49.0% 24% 36% ICR >2.5x 3.5x 3.5x Average maturity 7.0 years 6.2 years 33% Unsecured debt >50% 59% 69% Fixed rate debt >60% 87% 82% Rating BBB / stable Stronger credit profile Unsecured bank debt Mortgage loans - bank Unsecured bonds Mortgage loans - non-bank Leasings Combined debt maturity profile (1) 1,303 83 914 1,013 721 637 137 1,220 21 64 15 22 700 850 500 17 86 2016 2017 2018 2019 2020 2021 2022 2023 2024 Unsecured loans Unsecured bonds Secured loans & other (1) Pro-forma to bond issuance in April-16 27
COLLATERAL VALUE: CREATION OF A LEADING SPANISH RENTED RESIDENTIAL PLAYER 28
Collateral value: creation of a leading Spanish rented residential player JV Rented Residential Company: transaction structure Transaction structure MVC to contribute its rented residential business to s in exchange for shares MVC NAV: 441 m NAV: 177 m Resulting ownership: MVC shareholders (65.7%); (34.3%) Implied 18.4% (1) premium to latest reported GAV Implied 30.1% (1) to latest reported NAV - Allows to deconsolidate rented residential business 250 m of debt contribution from MVC and 111 m of debt already in place Internal management under s supervision through a Service Level Agreement JV Residential Company to adopt SOCIMI status within the next 2 years Service Level Agreement will supervise the management and performance of JV Residential Company under a long term service agreement Annual fee for of 7.7 m Timing & Conditions Simultaneous with the acquisition of MVC s commercial assets Subject to approval of Testa Residencial and MVC General Shareholders meeting (1) Resulting ownership equivalent of valuing s residential portfolio at 340 m GAV (vs. 288 m Dec-15 reported) and 229 m NAV (vs. 177 m Dec-15 reported) (2) Net fee NPV, adjusted for ownership in JV Residential Company 29
Collateral value: creation of a leading Spanish rented residential player Creation of a national leader in the attractive rented residential market Key metrics (as of Mar-16) Residential MVC Residential JV Residential Company GLA (sqm) 124,019 327,240 451,259 Units (#) 1,519 3,187 4,706 Physical occupancy (%) 98.3% 89.0% 91.5% GRI ( m) 12.1 22.5 34.6 Gross yield 4.2% 3.3% 3.5% Monthly GRI ( /sqm/m) 8.1 5.7 6.4 Geographical split BREAKDOWN BY MARKET (BY GRI) 4% 16% 5% 12% 63% Madrid San Sebastian Pamplona Mallorca Other Modern portfolio in prime urban locations NRI ( m) 9.3 13.2 22.5 ERV yield 4.2% 3.7% 3.8% GAV ( m) 288 692 980 GAV psm 2,324 2,114 2,172 Net debt ( m) 111 250 361 LTV 39% 36% 37% NAV ( m) 177 442 619 Company will be managed by personnel assigned from Testa Residencial and Gesfontesta under s supervision 30
TIMETABLE AND CONCLUSIONS 31
Timetable and conclusions Timetable Transaction announcement 21 June 2016 Independent Expert report available Late July 2016 and Metrovacesa General Shareholders Meeting September 2016 Antitrust approval Q3/Q4 2016 Closing of the transaction Q4 2016 32
Timetable and conclusions Larger, Broader, Stronger A perfect industrial fit Tangible embedded upside in Metrovacesa Optionality for s non-core assets Irreplicable, diversified and balanced resulting portfolio Appealing financial terms Sound capital structure preserved Enhanced scale and capital markets profile 33
APPENDIX 34
Appendix Office - Madrid 35
Appendix Office Madrid prime and CBD 36
Appendix Office Madrid (I) 1 Torre Castellana, 259 2 Castellana, 280 3 Castellana, 278 Location: CBD GLA: 21,390 sqm Location: CBD GLA: 16,961 sqm Location: CBD GLA: 14,468 sqm 4 Castellana, 93 (Cadagua) 5 Carlos Trías Bertrán, 7 (Sollube) 6 Castellana, 83-85 Location: CBD GLA: 11,651 sqm Location: CBD GLA: 31,609 sqm Location: CBD GLA: 15,254 sqm 7 Príncipe de Vergara, 187 8 Alfonso XI, 6 9 Pedro de Valdivia, 10 Location: CBD GLA: 10,732 sqm Location: CBD GLA: 10,917 sqm Location: CBD GLA: 6,721 sqm 10 Churruca 11 Alcalá, 45 12 Alcalá, 40 Location: CBD GLA: 17,358 sqm Location: CBD GLA: 18,655 sqm Location: CBD GLA: 9,315 sqm Metrovacesa 37
Appendix Office Madrid (II) 13 Princesa, 3 14 Princesa, 5 15 Ventura Rodríguez, 7 Location: CBD GLA: 17,810 sqm Location: CBD GLA: 17,810 sqm Location: CBD GLA: 10,070 sqm 16 Juan de Mariana, 17 17 Juan Esplandiú, 11-13 18 Eucalipto, 33 Location: CBD GLA: 3,046 sqm Location: CBD GLA: 28,008 sqm Location: CBD GLA: 7,185 sqm 19 Eucalipto, 25 20 Ulises, 16 21 Josefa Valcárcel, 48 Location: CBD GLA: 7,368 sqm GLA: 9,575 sqm GLA: 19,893 sqm 22 Arturo Soria, 343 23 Elipse 24 Fuente de la Mora, 9 GLA: : 6,615 sqm GLA: 7,567 sqm GLA: 4,482 sqm Metrovacesa 38
Appendix Office Madrid (III) 25 Santiago de Compostela 26 Costa Brava, 2-4 27 Isla Chamartin (WIP) Location: Periphery GLA: 13,130 sqm Location: Periphery GLA: 16,000 sqm GLA: 16,639 28 Arroyo de Valdebebas T7 29 Via Norte 30 Sanchinarro GLA: 10,856 sqm GLA: 37,224 sqm GLA: 17,191 sqm 31 Maria de Portugal T2, 1 32 Maria de Portugal T2, 2 33 Maria de Portugal T2, 3 [Picture] GLA: 5,749 sqm GLA: 5,749 sqm GLA: 5,641 sqm 34 Las Tablas 35 Padres Dominicos T4 36 El Encinar GLA: 27,073 sqm GLA: 6,176 sqm GLA: 3,623 sqm Metrovacesa 39
Appendix Office Madrid (IV) 37 Miniparc Alcobendas I 38 Miniparc Alcobendas II 39 Avenida de Bruselas 24 GLA: 9,429 sqm GLA: 2,872 sqm GLA: 9,164 sqm 40 Avenida de Bruselas 26 41 Av. de Bruselas, 33 42 Avenida de Europa GLA: 8,895 sqm GLA: 33,718 sqm Location: Periphery GLA: 25,210 sqm 43 Vegacinco 44 Alvento 45 Cristalia Location: Periphery GLA: 10,883 sqm GLA: 32,928 sqm GLA: 11,707 sqm 46 Trianón 47 Pta. de las Naciones 48 Ribera del Loira, 60 GLA: 18,441 sqm GLA: 39,298 sqm GLA: 54,960 sqm Metrovacesa 40
Appendix Office Madrid (V) 49 Partenón, 12-14 50 Partenón, 16-18 51 América GLA: 19,289 sqm GLA: 18,343 sqm Location: Periphery GLA: 3,890 sqm 52 Ática 1,2,3,4 53 Ática 6 54 Ática XIX Location: Periphery GLA: 7,080 sqm, 5,644 sqm, 5,746 sqm, 4,936 sqm Location: Periphery GLA: 3,790 sqm Location: Periphery GLA: 15,441 sqm 55 Cerro Gamos, 1 56 El Plantío 57 Al-Andalus Location: Periphery GLA: 35,498 sqm Location: Periphery GLA: 7,068 sqm Location: Periphery GLA: 5,972 sqm 58 Alvia 59 Euronova Location: Periphery GLA: 23,569 sqm Location: Periphery GLA: 32,663 sqm Metrovacesa 41
Appendix Office Barcelona 42
Appendix Office Barcelona prime and CBD 43
Appendix Office Barcelona (I) 1 Diagonal 605 2 Diagonal 514 3 Balmes City: Barcelona Location: CBD GLA: 14,795 sqm City: Barcelona Location: CBD GLA: 9,664 sqm City: Barcelona Location: CBD GLA: 6,188 sqm 4 Diagonal 458 5 Diagonal 199 6 Poblenou 22@ City: Barcelona Location: CBD GLA: 4,033 sqm City: Barcelona Location: CBD GLA: 5,934 sqm City: Barcelona GLA: 32,552 sqm 7 Vilanova 12-14 8 E-Forum 9 Citypark Cornella City: Barcelona Location: CBD GLA: 16,494 sqm City: Barcelona Location: CBD GLA: 5,190 sqm City: Barcelona Location: Periphery GLA: 12,781 sqm 10 WTC 6 11 WTC 8 12 Muntadas I City: Barcelona GLA: 14,461 sqm City: Barcelona GLA: 14,542 sqm City: Barcelona GLA: 24,380 sqm Metrovacesa 44
Appendix Office Barcelona (II) 13 Muntadas II 14 Sant Cugat I 15 Sant Cugat II City: Barcelona GLA: 3,783 sqm City: Barcelona GLA: 15,379 sqm City: Barcelona GLA: 10,102 sqm Metrovacesa 45
Appendix Shopping centers 46
Appendix Shopping centers (I) 1 Marineda 2 Arturo Soria 3 Fnac Callao City: A Coruña GLA: 99,925 sqm GLA: 6,959 sqm (1) GLA: 11,648 sqm 4 Centro Oeste 5 Tres Aguas 6 Nassica GLA: 33,000 sqm GLA: 65,890 sqm (2) GLA: 10,007 sqm 7 Opción 8 Artea 9 Las Arenas GLA: 37,165 sqm City: Bilbao GLA: 24,230 sqm City: Barcelona GLA: 32,512 sqm 10 Vilamarina 11 La Fira 12 Porto Pi City: Barcelona GLA: 31,874 sqm City: Reus GLA: 27,454 sqm City: Mallorca GLA: 58,779 sqm Metrovacesa (1) owns 50% (2) MVC owns 50% 47
Appendix Shopping centers (II) 13 El Saler 14 Factory Bonaire 15 La Vital City: Valencia GLA: 23,034 sqm City: Valencia GLA: 25,066 sqm City: Gandía GLA: 20,853 sqm 16 Thader 17 Larios 18 Monumental City: Murcia GLA: 48,646 sqm City: Malaga GLA: 45,076 sqm City: Lisboa GLA: 5,495 sqm 19 Centre del Mon 20 Grande Armee City: Perpignan GLA: 10,382 sqm City: Paris GLA: 8,359 sqm Metrovacesa 48
Appendix Logistics - Spain 49
Appendix Logistics - Madrid 50
Appendix Logistics Madrid (I) 1 Madrid Coslada 2 Madrid Coslada Complex 3 Madrid Meco I GLA: 28,490 sqm GLA: 36,234 sqm GLA: 35,285 sqm 4 Madrid Meco II 5 Guadalajara Azuqueca I 6 Guadalajara Azuqueca II GLA: 59,891 sqm City: Guadalajara GLA: 27,995 sqm City: Guadalajara GLA: 100,000 sqm 7 Guadalajara Alovera 8 Guadalajara Cabanillas I 9 Guadalajara Cabanillas II City: Guadalajara GLA: 38,763 sqm City: Guadalajara GLA: 70,134 sqm City: Guadalajara GLA: 151,809 sqm 10 Guadalajara Cabanillas III 11 Madrid-Getafe 12 Madrid-Getafe (Los Olivos) City: Guadalajara GLA: 49,795 sqm GLA: 16,242 sqm GLA: 11,488 sqm Metrovacesa 51
Appendix Logistics Madrid (II) 13 Madrid Getafe (Gavilanes) GLA: 39,576 sqm 14 Madrid Pinto GLA: 70,000 sqm Metrovacesa 52
Appendix Logistics - Barcelona 53
Appendix Logistics - Barcelona 1 Barcelona-ZAL Port 2 Barcelona Lliça del Vall 3 Barcelona Sant Esteve City: Barcelona GLA: 380,824 City: Barcelona GLA: 14,911 sqm City: Barcelona GLA: 16,812 sqm 4 Barcelona Granada Penedés City: Barcelona GLA: 16,758 sqm Metrovacesa 54
Appendix Logistics Rest of Spain Zaragoza Plaza Zaragoza Pedrola Valencia Almussafes City: Zaragoza GLA: 20,764 sqm City: Zaragoza GLA: 21,579 sqm City: Valencia GLA: 26,612 sqm Vitoria - Jundiz City: Vitoria GLA: 72,717 sqm Metrovacesa 55
Appendix High Street Retail 56
Appendix Hotels 57
Appendix Enhanced attractiveness and liquidity of s hotel division Key metrics Pretransaction Metrovacesa Hotels posttransaction # assets 12 12 24 # rooms 2,263 2,232 4,495 GAV ( m) 398 256 654 GAV per room ( /room) 198k 115k 154k GRI ( m) 23 15 38 Gross yield 5.9% 5.8% 5.8% ERV yield 5.9% 6.1% 6.0% Physical occupancy (%) 100% 100% 100% WAULT (years) 3.8 3.8 3.8 Presence in main gateway cities and coast Mix between urban hotels and leisure resorts Managed by leading hotel operators 58
Appendix Hotels (I) 1 Eurostars Torre Castellana 5* 2 NH Sanvy 4* 3 Torre de Madrid (1) Type: Urban GLA: 31,800 sqm # rooms: 474 Location: Urban GLA: 12,182 sqm # rooms: 146 Type: Urban GLA: 21,659 sqm # rooms: 256 4 Paseo del Arte 4* 5 Puerta Castilla 4* 6 Barceló Castellana Norte 4* Type: Urban GLA: 11,335 sqm # rooms: 101 Location: Urban GLA: 13,180 sqm # rooms: 262 Type: Urban GLA: 5,904 sqm # rooms: 144 7 Eurostars Gran Madrid 4* 8 Holiday Inn Tres Cantos 3* 9 Hotel Marineda 4* Location: Urban GLA: 3,581 sqm # rooms: 100 City:, Madrid Type: Urban GLA: 3,016 sqm # rooms: 61 City: A Coruña Type: Urban GLA: 5,898 sqm # rooms: 113 10 Eurostars Gran Marina 5* 11 Novotel Barcelona 4* 12 AC Forum Barcelona 4* City: Barcelona Type: Urban GLA: 20,030 sqm # rooms: 274 City: Barcelona Type: Urban GLA: 11,718 sqm # rooms: 264 City: Barcelona Type: Urban GLA: 21,414 sqm (2) # rooms: 184 Metrovacesa (1) Under construction (2) owns 50% 59
Appendix Hotels (II) 13 Tryp Aeropuerto 4* 14 Hotel Eurostars Executive 4* 15 Tryp Oceanic 4* City: Barcelona Location: Urban GLA: 10,125 sqm # rooms: 205 City: Barberá del Vallés Type: Urban GLA: 5,509 sqm # rooms: 118 City: Valencia Location: Vacational GLA: 9,308 sqm # rooms: 197 16 Holiday Inn Valencia 4* 17 Tryp Almussafes 3* 18 Playa Capricho 4* City: Valencia Type: Urban GLA: 3,574 sqm # rooms: 100 City: Valencia Type: Vacational GLA: 5,363 sqm # rooms: 133 City: Almeria Type: Vacational GLA: 19,366 sqm # rooms: 335 19 Costa Park 4* 20 Tryp Alameda 4* 21 Tryp Jerez 4* City: Málaga Type: Vacational GLA: 30,967 sqm # rooms: 388 22 Barceló Costa Ballena Golf 4* City: Malaga Location: Urban GLA: 6,000 sqm # rooms: 136 23 Barceló Corralejo Bay 4* City: Jerez Type: Urban GLA: 4,637 sqm # rooms: 98 24 Centre del Mon 3* / 4* City: Costa Ballena Location: Vacational GLA: 15,524 sqm (1) # rooms: 74 City: Las Palmas Type: Vacational GLA: 17,471 sqm # rooms: 231 City: Perpignan Type: Urban GLA: 4,562 sqm # rooms: 101 Metrovacesa (1) owns 32.5% 60