Haldane McCall Equity Real Estate Investment Trust

Haldane McCall Equity Real Estate Investment Trust

DISCLAIMER This Investment Teaser ( Teaser ) has been prepared by The Lead Issuing House, Goldbanc Management Associates Ltd and Co-Issuing Houses, BGL Capital Ltd, Capital Bancorp Plc, Greenwich Trust Ltd, LeadCapital Plc and Planet Capital Ltd ( Issuing Houses ) in respect of the proposed Haldane McCall Equity Real Estate Investment Trust ( HMK REIT ). The information contained in this Teaser is selective and is subject to further update, expansion, revision and amendment. It does not purport to contain all the information that recipients may require. No obligation is accepted to provide recipients with access to any additional information or to correct any inaccuracies which may become apparent. Recipients should conduct their own investigation and analyze the information contained in this Teaser and are also advised to seek their own professional advice on the legal, financial, taxation and other consequences of investing in the HMK REIT. The Issuing Houses and any of their associated/subsidiary companies or employees are under no obligation to accept any liabilities that may arise from the use of any part of this Teaser. The views expressed in this teaser have not been influenced by any third party or induced by any incentive from any quarters.

HMK REIT ASSET COMPOSITION RESIDENTIAL 1, IKOYI RESIDENTIAL 2, GRA IKEJA RESIDENTIAL 3, GRA IKEJA COMMERCIAL 1, GRA IKEJA COMMERVIAL 2, GRA IKEJA COMMERCIAL 3, OPEBI ALLEN IKEJA

STRUCTURE OF THE REIT STRUCTURE OF THE REIT STRUCTURE DIAGRAM Unit Holders Management Services Trustee Fees Management Fees HMK REIT Acts on behalf of Unit Holders Trustees Custodian services Cash Custodian Real Estate Assets Bank

ENHANCEMENT OF THE REIT A cross-section of the enhancements include: Insurance of REIT Assets: The assets of the REIT highlighted in the Prospectus shall be insured against losses. The insurance classes with regard to the assets include fire policy, public liability insurance and Business Interruption risk due to damage by flood, fire and windstorm which would lead to loss of income for the period during which the property is undergoing repairs. Guarantee of the REIT income: In the event that there is a shortfall in occupancy below 60%, the guarantor will pay 16.40% of the rental income to the REIT investors. REIT INCOME REIT income shall be multi-faceted and shall be competitive as obtainable for residential and commercial properties in Nigeria. The identified REIT assets all command optimal tenancy level with good tenancy (corporate) profile. Additionally the REIT will also invest in other Real estate assets and money market instruments that offer competitive returns to ensure liquidity. Combinations of these ascertain unrivalled returns to investors in the HMK Equity REIT. INVESTMENT HIGHLIGHT A Market Maker will be appointed by the NSE to facilitate the liquidity of the REIT. The Market Maker will ensure continuous trading of the REIT on the floor of The NSE by ensuring steady supply or purchase to investors. This provides comfort to investors of the liquidity of the units.

HMK REIT INVESTMENT OVERVIEW INVESTMENT HIGHLIGHT A grade investment properties. Properties strategically located in the heart of Ikeja GRA and Ikoyi, Lagos. 100% Committed Occupancy with high quality tenants. REITS Value Real Estate Properties Other Assets: (Including liquid assets) HMK KEY STATISTICS N13, 390m N9, 450m N3, 550m Forecast Year FY Sept 2015: Net Property Income N915m Net income Yield (Yr 1) 8.51% Distribution Yield (Yr 1) 7.65% 5 years Average Growth in Yield 10.56% Projected Earnings yield on HMK REITS (%) 11.62 10.38 9.25 8.51 13.02 Projected HMK REIT Net Asset Growth (N'm) 13,369 13,524 13,700 13,111 13,232 SEPT 2015 SEPT 2016 SEPT 2017 SEPT 2018 SEPT 2019 Yield on HMK REITS (%) SEPT 2015 SEPT 2016 SEPT 2017 SEPT 2018 SEPT 2019

HMK REIT INVESTMENT OVERVIEW PROFIT FORECAST: Year ending 31st September 2015 2016 2017 2018 2019 Opening Net Asset Value N m 13,000 N m 13,111 N m 13,232 N m 13,369 N m 13,524 Total Income 1,479 1,586 1,756 1,936 2,147 Total Expenses 372 374 381 382 387 Net Asset Value at year end 13,111 13,232 13,369 13,524 13,700 Earning Yield (%) 8.51 9.25 10.38 11.62 13.02 Distribution Yield (%) 7.65 8.32 9.35 10.47 11.71

INVESTMENT RATIONALE IN HMK REIT Attractive Return on Investment With the boom in the Nigerian real estate sector which presently commands premium rent in select areas like those of the HMK REIT. Stable and regular distribution of at least 90% of the net income accruing from diversified portfolio of real estate and real estate related assets across residential and commercial properties and money market instruments OCCUPANCY GUARANTEE Investment Opportunity in the Nigerian Real Estate Industry This projects presents a viable means of participation in the gains present in the Nigerian real estate industry which has over the years proven to be a very lucrative means of investment for both long and short term objectives of investors. ATTRACTIVE RETURN ON INVESTMENT INVESTMENT OPPORTUNITY IN THE NIGERIAN REAL ESTATE INDUSTRY EXPERIENCED AND CREDIBLE ASSET MANAGERS TRUSTEE COMPANY LIQUIDITY WITH MARKET MAKERS PORTFOLIO DIVERSIFICATION Experienced and Credible Asset Managers and Trustee Company The REIT will be managed by professionals with great care, top skill, prudence and diligence. Rent from the Commercial properties which allows the Fund Manager concentrate on the management of the REIT. Occupancy Guarantee Existing long term leases with tenants. Diverse corporate tenant profile with staggered rental renewal periods which prevents mass vacancy at any one period. Liquidity with Market Maker A Primary Market Maker will be appointed by The Nigerian Stock Exchange to ensure liquidity of the units by facilitating continuous trading of the REIT on The NSE Portfolio Diversification Investing in the REIT allows for diversification of your investment portfolio thereby reducing risks.

ASSET VALUATION AND TRANSFER ASSET VALUATION AND TRANSFER VALUES TO THE REIT VALUES TO THE REIT RESIDENTIAL PROPERTY No of Units Age (Years) Net Lettable Area (sq.m) Open Market Value N(million) A Transfer Value to the REIT N (million) Projected Occupancy (%) Rate Year Valuation Arizona Court, (GRA) Ikeja 12 2 5,949.26 1,420 800 100 2013 Arkansas Court, (GRA) Ikeja 14 2 5,946.54 1,500 800 100 2013 IKOYI 12 10 3,598.83 2,200 1,800 100 2014 of COMMERCIALL PROPERTY No of Rooms Age (years) Net Lettable Area Valuation in N (million) A Transfer Value to the REIT N(million) Projected Occupancy Rate (%) Year of Valuation Commercial 1 Opebi Allen, Ikeja 112 3 2,610.83 5,200 4,200 60 2013 Commercial 2 (GRA) Ikeja 35 1 2,200 1,385 1,000 100 2014 Commercial 3 2floor office and a bungalow 1.8 3,750 1,000 850 100 2014 INVESTMENT OUTLET ASSET TYPE % Real Estate and Real Estate Related Assets 90 Money Market Instruments 10

OVERVIEW OF THE OFFER INDICATIVE TERM SHEET THE OFFER METHOD OF OFFER OFFER PRICE 2,600,000,000 units at N5.15 at par in the HMK REIT Offer for subscription N5.15 per unit MINIMUM SUBSCRIPTION 10,000 units and multiples of 2,000 thereafter OFFER SIZE PAYMENT TERMS UTILIZATION OF OFFER PROCEEDS N13,390,000,000 (Thirteen Billion Three Hundred and Ninety Million Naira Only) In full on application The proceeds of the REIT will be applied as consideration for the purchase of the initial assets of the REIT from the Sponsor and the third party agents while the balance will be utilized in investment in other real estate, real estate related assets and money market instruments. OPENING DATE xx, 2014 CLOSING DATE xx, 2014 STATUS DISTRIBUTION RATING The units qualify as securities in which Pension Fund Assets can be invested under the Pension Reform Act, 2004 and securities in which Trustees may invest under the Trustees Investments Act, Cap T22, Laws of the Federation of Nigeria, 2004. A minimum of 90% of the income earned in any financial year will be distributed to unit holders every financial year The N13.3b Haldane McCall Real Estate Investment Trust is assigned a BBB rating

OVERVIEW OF THE OFFER PARTIES TO THE OFFER FUND MANAGER: FINANCIAL ADVISER / LEAD ISSUING HOUSE: FSDH Asset Management Ltd Goldbanc Management Associates Limited CO-ISSUING HOUSES: TRUSTEE TO THE TRUST: CUSTODIAN: SOLICITORS TO THE TRUSTEE: SOLICITOR TO THE OFFER: REPORTING ACCOUNTANTS: STOCKBROKERS: BGL Capital Ltd Capital Bancorp Plc Greenwich Trust Ltd LeadCapital Plc Planet Capital Ltd SKYE Trustees Ltd UBA Plc (Global Investors Services Division) Austen Peters & Co Detail Commercial Solicitors Akintola Williams Deloitte Afrinvest Securities Ltd Capital Assets Ltd GTI Securities Ltd ICMG Securities Ltd Resort Securities Ltd

WHY INVEST IN HMK REIT WHY INVEST IN REITS? While gradual reduction in interest rates in Nigeria is foreseeable and will inevitably lower bond yields, REITs remain a consistently growing security REITs offer steady and consistent returns because the underlying assets are real estate assets which appreciate over time. Inflation and interest rates do not normally impact negatively on REIT assets instead hedges inflations. REITs offer mandatory dividend distribution of at least 90% of annual net income REITs offer opportunity for Investment portfolio diversification which reduces risk Double taxation is avoided in REITs as REITs are pass-through vehicles REIT s are listed on The Nigerian Stock Exchange (NSE) and trade like stocks. WHY INVEST IN HMK REITS? Access to first class properties in prime areas at discounted prices. Rent from the Commercial properties which allows the Fund Manager concentrate on the management of the REIT. Diverse corporate tenant profile with staggered rental renewal periods which prevents mass vacancy at any one period. Existing long term leases with tenants. A Primary Market Maker will be appointed by The Nigerian Stock Exchange to ensure liquidity of the units by facilitating continuous trading of the REIT on The NSE Investing in the REIT allows for diversification of your investment portfolio thereby reducing risks Bank guarantee of part of the projected rental income The REIT will be managed by professionals with great care, top skill, prudence and diligence. Access to the experience of professionals of diverse skills and indepth knowledge in real estate investment and operations that make up the Investment Committee. Deposit of pre-executed agreements (Deed of Assignments, Deed of declaration of Trust) with the Custodian by the Sponsor prior to the offer. The REIT is transparently structured and backed by reputable organizations including FSDH Asset Management Company, Skye Trustees, UBA Plc (Global Investor Services Division), Leadway Assurance etc Stable and regular distribution of at least 90% of the net income accruing from diversified portfolio of real estate and real estate related assets across residential and commercial properties and money market instruments.

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