1. Corporate Presentation
Sofia
April 2010

2. CONTENTS
Overview 3 Key Team Members 14
SORTIS Group 4 Investment Portfolio 15
Shareholders 5 Appendix Bulgaria Overview 16
Services 6 About Bulgaria 17
Real Estate Investment 7 Bulgaria – Economic Outlook 18
Real Estate Portfolio Management 8 Property Market Overview 19
Property Fund Management 9 Property Market Trends 20
Mezzanine Real Estate Financing 10 Bulgaria Office Market 21
Distressed Investment Opportunities 11 Bulgaria Retail Market 22
Investment Process 12 Bulgaria Industrial Market 23
Board of Directors 13 Contacts 24
Corporate Presentation 2

3. OVERVIEW
SORTIS Real Estate is a Bulgaria-based real estate investment company
focused on providing advisory and asset management services to
client-investors for their real estate related activities in Bulgaria.
AREAS OF EXPERTISE
Real estate Real estate Property Mezzanine real
Investment portfolio fund
management estate financing
advisory management
 Strong management team experienced in real estate and private equity
investment in Bulgaria and internationally
 Applying best international corporate governance practices
Corporate Presentation 3

4. SORTIS GROUP
SORTIS Real Estate is part of the SORTIS Group that includes:
Investment Banking Real Estate Investment Loan and Leasing
Boutique Management Company Advisory Company
Financial advisory services Sources and structures Advisory services to
to companies and fund individual and collective companies and individuals:
managers: investment schemes:
 Mortgage loans
 Private equity and  RE investment advisory  Investment loans
venture capital  RE portfolio  Consumer loans
 Corporate finance management  Leasing
 Mergers and acquisitions  Property fund
management Partnership agreements
 EU grants funding
with the leading
 Fundraising for fund  Mezzanine RE financing
banks, non-banking and
managers (GPs) Active in all major real leasing financial institutions
estate sectors in Bulgaria
Corporate Presentation 4

5. SHAREHOLDERS
 SORTIS Invest - investment banking boutique owned
by Mr. Martin Paev with areas of expertise private
equity, venture capital, fundraising, corporate
finance, mergers & acquisitions.
 BMF Bulgaria – an investment holding company owned by Mr.
Thomas Higgins, an investment banker with 16+ years of asset
management and private equity experience in Bulgaria.
Recent major investment - TFS, the Bulgarian investment advisor for the
Balkan Accession Fund, a EUR 110 m private equity & mezzanine finance
investment fund for the Balkans.
 Mr. Joel Baquiche – an experienced investor in private equity and
international real estate with numerous investments in start-ups and
SMEs, listed and unlisted companies.
Corporate Presentation 5

6. SERVICES
 SORTIS Real Estate structures individual and collective investment schemes that
enable its client-investors to benefit from the real estate opportunities the
Company has secured in Bulgaria.
 Our close relationship with leading brokerage companies results in sourcing
attractive investment opportunities despite the challenging business
environment.
 We aim to generate attractive risk-adjusted returns to our investor partners over
the pre-agreed investment horizon.
 We create robust investment structures in conjunction with assessing, managing
and, where possible, mitigating risk.
 We are active in all major Real Estate Sectors:
Hotels Industrial
Office
Residential Retail
Corporate Presentation 6

7. REAL ESTATE INVESTMENT ADVISORY
 We provide investors with professional advice in identifying and
implementing the most suitable strategy for real estate investments in
Bulgaria.
 Investment proposals are based on extensive market analysis, financial
modeling and risk assessment.
 As investors‟ representative, SORTIS Real Estate negotiates value-adding
solutions on behalf of investors throughout the investment process.
Property Institutional Individual
funds investors investors
Real Estate Project
Corporate Presentation 7

8. REAL ESTATE PORTFOLIO MANAGEMENT
 Real estate portfolio management Determine Client’s risk-return objectives
services to both institutional and
individual clients. Define suitable investment policy
 Implementation of development Review Market conditions & long-term trends
projects where we do not act in
partnership with a reputed Source investment opportunities
developer.
Structure Potential Transaction
 Careful analysis of market trends
and deal characteristics results in Deal Closing
investment/disposal proposals or
recommendations. Add Value / Develop Project
 Ongoing review of market Monitor Investment
conditions is essential for proper
timing of entry and exit from a EXIT
property investment.
Corporate Presentation 8

9. PROPERTY FUND MANAGEMENT
 Our team has substantial experience in structuring and managing regulated
and unregulated investment vehicles, both in Bulgaria and internationally.
 Mr. Martin Paev, CFA, Chief Executive Officer of SORTIS Real Estate :
 structured and managed TBI-BAC REIT (now Prime Property REIT), the first Real Estate Investment Trust in
Bulgaria. During his directorship, the REIT provided a return to its investors of 73%, realized over a period of
18 months (Oct 2003-Mar 2005)
 worked on structuring Bulgarian Land Development, a GBP 40 mln property investment fund, listed on
the AIM Market of the London Stock Exchange.
 Mr. Thomas Higgins, Board Member and Investor :
 ex-Managing Director and Chief Investment Officer of the Bulgarian-American Enterprise Fund
 ex-Executive Director in charge of SME and hotel lending at Bulgarian-American Credit Bank
 co-founder and Managing Partner of Balkan Accession Fund, a EUR 110 mln private equity and
mezzanine investment fund
 Mr. Joel Baquiche, Board Member and Investor :
active real estate investor in Europe and the USA
investor in numerous private equity and venture capital deals
committee member of London Business Angels Network and London Seed Capital Fund.
Corporate Presentation 9

10. MEZZANINE REAL ESTATE FINANCING
 We structure mezzanine financing deals to support experienced developers
 Up to 80% of the equity required for a development project may be mezzanine
 Attractive risk-adjusted returns to investors
 Enable developers to implement large projects with limited own equity
 Overall project management remains with the developer
 Facilitates bank financing for the project
 Mezzanine may be provided for projects in all real estate market sectors
Without Mezzanine With Mezzanine
60 % Senior Debt
60 %
Senior Debt
30 % Mezzanine
40 % Equity
10 % Equity
Corporate Presentation 10

11. DISTRESSED INVESTMENT OPPORTUNITIES
 Short to medium-term deterioration on the property market in Bulgaria, after
several years of a robust growth and a peak in 2007-2008
 Construction and real estate badly hit by the global credit crunch.
 Announced mega projects totalling EUR 2 – 2.5 bln EUR were put on
hold, according to the Bulgarian Construction Chamber
 Many players on the property market, incl. investors, landlords, tenants, property
service providers, suffer from some form of distress currently
 Positive effects - winding up low-quality projects & sifting out good projects
 Major challenges - financial and operational restructurings, debt
refinancing, debt for equity, joint ventures
 Our network of partners throughout Bulgaria
helps us source quality real estate projects with
distressed vendors
 Investors could take advantage of the
emerging distressed investment opportunities
Corporate Presentation 11

12. INVESTMENT PROCESS
We combine systematic top-down approach with opportunity
Project
Identification driven project identification
Local market understanding enhanced by global perspective to
Deal
add value to the real estate project
Structure
Determine clear and viable exit strategy prior to investment
Due
Diligence decision; Professional advice used in a cost efficient manner
Structure deals with focus on managing and mitigating project
Deal
Closing risks
Hands-on approach to project development to ensure
Project
Development quality, timeliness and flexibility
Careful ongoing market analysis to determine the right timing
Exit for exit
Corporate Presentation 12

13. BOARD OF DIRECTORS
Mr. Martin Paev, CFA (born 1975, Bulgarian) – Chief Executive Officer
12+ years of investment banking, M&A and asset management experience - ING Barings in Frankfurt
(Germany), ETEBA in Bulgaria, Balkan Advisory Company (an investment banking boutique in SEE region) in Bulgaria.
Structured and managed the first REIT in Bulgaria (TBI-BAC) until joining in 2005 ADDRESS Investment& Development as
Executive Director. Worked on structuring of the Bulgarian Land Development, GBP 40 mln property fund. Established
in 2006 SORTIS Invest – an investment banking boutique.
Educated in Bulgaria, Netherlands & Germany; M.Sc. degree in Banking & Finance, B.Sc. Degree in Business
Administration. CFA® Charterholder - served two mandates as Board member of the Bulgarian CFA Society.
Mr. Thomas Higgins (born 1966, US citizen) – Board Member, Investor
Managing Director of the Bulgarian-American Enterprise Fund (BAEF) – 1997-2005.
Co-founded in 2005 Balkan Accession Fund (BAF), Managing Partner of BAF, EUR 110 mln investment fund assisting
expansion of successful Bulgarian and Romanian companies. Worked previously also with Coopers & Lybrand and
Equitable Real Estate in New York.
Board Member of the Confederation of Employers & Industrialists and the American Chamber of Commerce in
Bulgaria, Member of the University Council of AUBG and Board Member of the Bulgarian Business Foundation for
Education.
MBA graduate from the Kellogg School of Management, Northwestern University; B.Sc. degree in Finance &
Management Information Systems, the University at Albany – summa cum laude.
Mr. Joel Baquiche (born 1951, British) – Board Member, Investor
Experienced in private equity and international real estate; developing real estate in France and overseeing family
property interests in USA. Active investor in real estate in the UK since 1987 and in Bulgaria and Romania since 2005.
Representing European companies in the transport, trading and construction sectors in Egypt (1974-1980).
In 1982 co-established Checkout Computer Systems, an EPOS manufacturer for the hospitality industry. Made
numerous investments in start-ups and SMEs, listed and unlisted companies.
Read Economics and Business Finance at Manchester University.
Committee member of London Business Angels Network and London Seed Capital Fund.
Corporate Presentation 13

14. KEY TEAM MEMBERS
Mr. Liron Or (born 1971, Israeli) – Associate Partner
10+ years management experience in leading real estate companies in Israel and Bulgaria (Engel East
Europe, Amot Investments, Mivnei Ta‟asiya (IBC) - the largest profit-yielding real-estate company in Israel).
Proven experience in residential projects development and management as CEO of Engel East Europe in
Bulgaria (one of the leading residential developers in EE region) – since 2006 managed 4 projects with total
of 850+ units currently in different stages of construction.
Expertise in management of profit-yielding assets - Amot Investments Limited (2004-2006); As Central Region
Manager of IBC (2000-2004) managed ca. 450,000 sq.m. of land for industry, trade and Hi-Tech, in charge of
the architectural & engineering, construction-supervision aspects, financial and legal issues.
Expertise in tax law – worked for the Economic Company for Saving (1995-1999) and established a nation-
wide system for assessment of the municipality taxes and duties.
3 years experience as a Lecturer at the Interdisciplinary Center Herzliya: Schools of Law and Business - Real-
Estate Taxation course
MBA graduate from the Derby University – Israel branch; Speaks Hebrew, English and Bulgarian
Ms. Teodora Eftimova, (born 1979, Bulgarian) – Investment Officer
Experienced in the fields of financial planning, investment analysis and business valuation of real estate
investment projects. Involved in the development of gated community projects with sizes of 15,000 sq m-45,000
sq m GBA in the outskirts of Sofia.
Experienced in various procedures related to the construction and real estate business, such as land
acquisition & zoning, investment project financing, taxes & accounting issues related to the investment
process.
Holds a MSc degree in Accounting & Financial Control from the UNWE (Sofia, Bulgaria).
Corporate Presentation 14

15. INVESTMENT PORTFOLIO
AIRPORT BUSINESS PARK PROJECT – SOFIA, BULGARIA
 Plot size: 5,464 sq.m.
 Project: Business hotel and Class A office
building - GBA ca. 19,100 sq.m.
 Project Duration: 36 months
 Project Status: construction permit (Jan „10)
 Location: Close to the new Terminal 2 of
Sofia International Airport
The area: Sofia Airport is a fast-developing office
district and a well-established industrial and
logistics area.
Transport: Frontage on current road to Terminal 2
and on the new highway connecting it to
Downtown Sofia; existing bus stop at the site.
Corporate Presentation 15

16. APPENDIX
BULGARIA OVERVIEW
Corporate Presentation 16

17. ABOUT BULGARIA - INTRODUCTION
GENERAL
 Population: 7.7 mln
 Area: 111,910 sq km
 Capital: Sofia
 Coastline: 354 km
 Strategic location on the international map
 Short flight time to major European capitals
POLITICS
 NATO member since April 2004
 EU member since January 2007
 Expected to join the Euro zone by mid - 2013
 Stable political situation
 Decreasing long-term political risk
 A funding member of OSCE since 1995
Corporate Presentation 17

18. BULGARIA – ECONOMIC OUTLOOK
 GDP growth : ca. 6% p.a. (2006-2008). Decline of 6% estimated for 2009
 Lowest EU GDP per capita => greatest potential for growth
 EU Convergence Programs prerequisite for long term growth
 Currency board: BGN pegged to the EURO (EUR 1 = BGN 1.95583) since 1997
 Investment grade credit rating (Moody‟s: Baa3; Fitch: BBB-; S&P: BBB)
 Developed financial sector – ca. 90% foreign owned
 Unemployment - 10.14% (April 2010)
 Inflation (CPI) - 0.6% for 2009
 Favorable taxation:
 Corporate and personal income tax - flat rate of 10% , the lowest in the EU
 VAT – 20%
 Dividend tax – 5% (qualified EU-based investors may be exempt)
Corporate Presentation 18

19. PROPERTY MARKET OVERVIEW
 The Bulgarian property market is still an emerging real estate market.
 Rapid growth and strong investment activity over the past 6 years.
 Limited investment activity - landlords are not willing to accept opportunistic yields
 Attractive investment yields (up to 12%), but saturation is observed in some property
segments.
 IRR of 25+% achievable, but projects should be carefully selected.
 Investment activity is expected to start picking up slowly
Location Accurate
implementation
Functional Key factors Strong
for successful
design
Title
project
marketing
Investment Project
timing financing
Corporate Presentation 19

20. PROPERTY MARKET TRENDS
 Well-performing market until the end of 2008 and sharp drop in rents and prices thereafter
 Prime rents and sales prices declined after several years of high growth.
 Few distressed deals until recently
 Good long-term potential for growth compared to other European countries
 Stabilization expected in 2010
Potential Exists in the following market sub-segments
• Industrial zones
Industrial market • Modern logistics centers
• In-town warehousing
• Growth in demand expected
• Shopping malls (selectively)
• Hypermarkets
Retail market • Strip malls in the largest Bulgarian cities
• Power Centers
• Demand for more retail space throughout the country
• Class A in Sofia central locations and on main boulevards
Office market • Buying completed office buildings without tenants
• Lack of quality office space in secondary cities
• Oversupply in Sofia and prime cities
Corporate Presentation 20

21. BULGARIAN OFFICE MARKET
 Sofia is the main office space market, Varna, Plovdiv and Burgas follow
 Office developments in Sofia along the main boulevards, Ring Road, Sofia Airport areas
 Total office stock in Sofia – ca. 1,000,000 sq.m.
 990,000 sq.m. under construction, 700,000 sq.m. in design stage
 Undersupply of investment-grade product. Yields increased to 10+ % (Q3 2009).
 Lease terms – 3-5 years, max. 10 years
 Space for sub-lease or “Grey space” has grown during the crisis
 Vacancy rates reached 13 % in Sofia (2009) and growing, lowest in CBD – 2.5%
 Attractive incentive packages to attract tenants – rent-free periods, lower rents
 Prime rents expected to remain resilient despite incentives offered
Prime office rental rates & Yields (EUR/sq.m./month)
20 16
18 14
16
12
14
12 10
EUR 10 8%
8 6
6
4
4
2 2
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 Q3,2009
Prime Office Rental rates
Source: Forton International
Corporate Presentation 21

22. BULGARIAN RETAIL MARKET
 Undersupply of investment-grade products
 Increasing yields for prime retail space – 10+ % (Q3 2009)
 Construction of shopping malls in large cities - Plovdiv, Ruse, Burgas, Varna, etc.
 New players continue expansion on the market (e.g. Carrefour, Lidl, Mercator)
 New retail formats developed in the major cities – outlet centers, retail parks
 Expansion of the big-box/retail warehouse segment, penetration in new regions
 International brands shift from high streets towards shopping centers
 Penetration level of supermarkets and hypermarkets is still low
 Untapped potential for development of Power Centers
Sofia High Street Rents & Yields (EUR/sq.m./month)
140 16%
120 14%
100 12%
10%
80
EUR 8%
60
6%
40 4%
20 2%
0 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 Q3,2009
Sofia High Street Rents Sofia High Street Yields
Source: Forton International
Corporate Presentation 22

23. BULGARIAN INDUSTRIAL MARKET
 The most underdeveloped segment of the Bulgarian property market
 Several well developed industrial zones exist
 Existing stock – predominantly built-to-suit and owner-occupied premises
 New industrial zones currently being designed or developed
 Government initiatives for industrial zones formation
 Tax incentives for investments in regions with high unemployment
 Growing demand and attractive yields (currently 12+%)
 Potential for further investments in the sector
Prime Industrial/Logistics Rents & Yields (EUR/sq.m./month)
7.00 18
6.00 16
14
5.00
12
4.00 10
EUR 8
%
3.00
6
2.00
4
1.00 2
0.00 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 Q3,2009
Prime Industrial/Logistics Rents Prime Industrial/Logistics Yields
Source: Forton International
Corporate Presentation 23

24. CONTACTS
SORTIS REAL ESTATE
Mr. Martin Paev, CFA Mr. Joel Baquiche Mr. Thomas Higgins
CEO Board Member, Investor Board Member, Investor
SORTIS Real Estate SORTIS Real Estate SORTIS Real Estate
Tel: +359 2 946-39-15 Tel/Fax: +44 (207) 368-65-66 Tel: +359 2 946-39-15
Fax: +359 2 946-39-16 Mobile: +44 (7930) 39-82-80 Fax: +359 2 946-39-16
Mobile: +359 88 50-50-200 e-mail: baquiche@btinternet.com e-mail: higgins@sortis.bg
e-mail: paev@sortis.bg baquiche@sortis.bg
www.sortis.bg
Corporate Presentation 24