TIAA Real Estate want to invest in Asia. Where? What? How? Market & Financial Analysis and recommandations.

1. Real Estate Finance Investment Opportunities in Asia for TIAA Real Estate Account 1 Real Estate Finance MS SMIB /FEA– February 2011 Study by: Bruno RAKOTOZAFY, Nicolas de FERAUDY, Gaël COUNILLON Florence OPIGEZ and Bastien DELESCOT

3. Two mains activities: insurances for public sector and retirement fund (the Real Estate Account is part of it)

4. Long-term investments preferred: non speculative group

5. Real Estate Account: 75 to 85% investment in Real Estate

6. Well diversified un the US (region/property type) but not present worldwide

7. Looking for some investment opportunities abroad in order to diversify and spread risks.Introduction S:ONSEILABASSON Anne-Laurehampagneollinger. Présentationollinger - Présentation - 281209.ppt 2

9. Highly competitive nowadays (more than 200 real estate related companies)

10. Continuous growth since 2002 in Real Estate Development (2009 to 2010: +33%)

11. Development mainly finance by self-raising funds (37%)

12. Continuous increase in prices alsoMarkets Overview (1/x) S:ONSEILABASSON Anne-Laurehampagneollinger. Présentationollinger - Présentation - 281209.ppt 3

14. Consequences more important than expected

15. High rise in prices, fear of bubble burst

16. New policies in 2010 (i.e. prohibition of acquisition of a second RE asset in Beijing for one family)

17. Regulation-sensitive market.

18. Back to normal expected in Beijing. Increase in prices in 2nd tier citiesMarkets Overview (2/x) S:ONSEILABASSON Anne-Laurehampagneollinger. Présentationollinger - Présentation - 281209.ppt 4

20. Governmental stimuli in order to boost this sector (interest rates and tax deductions)

21. Low records in 2008/2009 in new constructions

22. Renting prices, land prices and occupancy rates seriously decreased

23. Some opportunities (volatile class A buildings, undervaluation of J-REITS)Markets Overview (1/x) S:ONSEILABASSON Anne-Laurehampagneollinger. Présentationollinger - Présentation - 281209.ppt

25. Very diversified portfolio (office, mall, hospitality and residential properties).

26. Strategy of investment in economically strong and growing Tier I and Tier II cities.

27. High risk mitigation management. Allow to provide long term benefits.

28. ICICI Real estate returns: TO BE COMPLETED

29. In the future:Create a 50/50 joint venture with ICICI Real estate Fund to invest in Pune(Tier II city). Booming supported by IT industry. Opportunities of investment in offices and residential properties. Invest in an Indian Real Estate Fund to understand the market S:ONSEILABASSON Anne-Laurehampagneollinger. Présentationollinger - Présentation - 281209.ppt 6