May 2, 2014

Mr. Sherwin O
Cosmopoint Intl Institute of the Technology
5/F CTTM Square Building., Corner Timog & Tomas Morato Streets
Quezon City, Philippines

Sir,

Pursuant to your instructions, we have made an investigation and appraisal of certain real
estate property that was exhibited to us and now we wish to submit our report as follows:

It is our understanding that the appraisal is required for the purpose of expressing an
opinion of the Cost of Reproduction New and the Fair Market Value of the property,
appraised as of April 29, 2014.

Cost of Reproduction New is defined as the amount necessary to reproduce and/or

replace the property in accordance with current market price for materials, labor,
manufactured equipment, contractors overhead, profit and fees, and all other attendant
costs associated with its acquisition and installation in place but without provision for
overtime or bonuses for labor and premium for materials.

The term Fair Market Value as used herein is defined as the amount in terms of money at
which the property would exchange in the current real estate market between a willing buyer
and a willing seller, neither being under compulsion to buy or to sell, both having reasonable
knowledge of all relevant facts and with equity to both.

Our report consists of;

- This letter summarizing the results of our investigation

- Limiting Conditions
- Narrative Report
- Photocopy of Transfer Certificate of Title (TCT)
- Photographs

We have personally inspected the properties, investigated local market conditions, and have
given consideration to the;

- Extent, character and utility of the properties; and

- Highest and Best Use of the properties.
Based upon the above investigation and an analysis of all relevant factors, and as supported
by the accompanying narrative report, it is our opinion that the Fair Market Value of the
property appraised as of April 28, 2014 is reasonably represented in the amount of THIRTY
MILLION TWO HUNDRED THIRTEEN THOUSAND PESOS (P 30,213,000.00) subject to
the attached limiting conditions.

We have made no investigation of and assume no responsibility for titles to or liabilities

against the appraised properties.

WE HEREBY CERTIFY that we have neither present nor prospective interest on the
property appraised or on the value reported.

Yours faithfully,

Original Signed
Samuel C. Quiniano
Real Estate Appraiser
PRC Reg. No. 0051
 LIMITING CONDITIONS

All existing liens and encumbrances, if any, have been disregarded and the property is
appraised as though free and clears under responsible ownership. The rights appraised are
presumed to be good and marketable. No responsibility is assumed for matters legal in
nature.

The undersigned, by reasons of this appraisal is not required to give testimony or

attendance in court nor to any government agency with reference to the subject property
unless arrangements have been previously made thereof.

No instrument survey was made to pinpoint the exact location and boundaries of the
property. It is then assumed that the property as indicated on plans or as shown by the
owner / representative(s) is the property in the title furnished us.

No structural survey or engineering tests was made and no responsibility is assumed for the
soundness of the structure or the condition of the services. Accordingly, we do not opine on
nor are we responsible for the structural integrity of the property and any physical defects
which were not readily apparent to the appraiser during their inspection.

Plots and other illustrative data used in the report are presented as aids in visualizing the
property and its environs. Although preparation of material was based on the best available
data, it should not be considered as a survey nor scaled for size.

No soil analysis or geological studies were made in conjunction with this request nor was an
investigation made of any water, oil, gas, coal, or other sub-surface mineral and use rights
or conditions.

We have assumed in our valuation that the property as currently used is not in contravention
of any planning or similar governmental regulations. Similarly, we have not taken into
account any environmental damage conditions that may exist, and we accept no liability for
its effects on the opinions or values set forth in this appraisal report, should an
environmental impact study reveal detrimental factors.

Erasures on appraisal data and values invalidate this valuation report.

 NARRATIVE REPORT

GENERAL

Subject of appraisal is a commercial lot improved with 3 storey with penthouse on the roof deck
located on southern side of Kamuning Road (Lot R-5), technically known as Lot 6, Blk K-20, of
Diliman Estate, within the District of Diliman, Quezon City. The appraisal is made for the purpose
of expressing an opinion of the Cost of Reproduction New and the Market Value of the
property as of January 4, 2014.

Cost of Reproduction New is defined as the amount necessary to reproduce and/or

replace the property in accordance with current market price for materials, labor,
manufactured equipment, contractors overhead, profit and fees, and all other attendant
costs associated with its acquisition and installation in place but without provision for
overtime or bonuses for labor and premium for materials.

The term Market Value as used herein is defined as the amount in terms of money at
which the property would exchange in the current real estate market, between a willing
buyer and a willing seller, neither being under compulsion to buy or to sell, both having
reasonable knowledge of all relevant facts, and with equity to both.

In this definition, it is assumed that any transaction shall be based on cash or its equivalent
consideration. The price which the property would fetch if offered for sale in the open market
would undoubtedly be affected should the sale be on terms, whether favorable or
unfavorable.

It is further assumed that title to the property is good, marketable and free from any liens
and encumbrances, and that fee simple ownership is transferable.

The rights appraised in this report are the property rights in fee simple, free and clear. Fee
Simple is defined as absolute ownership, without limitations to any particular class of heirs
or restrictions, but subject to the limitations of eminent domain, escheat, police power and
taxation.

PARTICULARS OF THE PROPERTY

As shown and pinpointed by the client, Subject of appraisal under TCT No. T-100816 is a
commercial lot improved with 3 storey with penthouse on the roof deck located on southern
side of Kamuning Road (Lot R-5), technically known as Lot 6, Blk K-20, of Diliman Estate,
within the District of Diliman, Quezon City. Site is about 250.0 meters southwest of EDSA.
The terrain of the land is generally flat with some part where rolling terrain. Its elevation is
above road grade level with the fronting road. Land development within the area is for
commercial purposes characterised by above average to expensive cost of structures.
LAND DATA

TCT No. Book No. Page No. Lot/Blk/Plan No. Area Registered Owner Date Reg.
T-100816 505 16 Lot 6, Blk. K-20 450.00 A Brown Company Inc. 16-Dec-93
Psd-7365-A

PLOT PLAN

Plot plan of the property as plotted according to the technical descriptions appearing in the
title which furnished by the borrower, viz:

Note : Typo error was noted on distance of point 1 to 2, instead the distance is 20 meters it
should be 25 meters.

HIGHEST AND BEST USE

Based upon an analysis of prevailing land usage in the neighbourhood of both properties,
we are of the opinion that a residential land development would represent the highest and
best use of the land.
Highest and Best Use is defined as the most profitable likely use to which the property can
be put. The opinion of such use may be based on the highest and most profitable
continuous use to which the property is adapted and needed, or that use of land which may
reasonably be expected to produce the greatest net return to land over a given period of
time. Alternatively, it is that use, from among reasonably probable and legal alternative
uses, found to be physically possible, appropriately supported, financially feasible, and
which results in highest land value.

VALUATION LAND

A) LAND

The value of the land was arrived at by the Market Data Approach. In this approach, the
value of the land is based on sales and listings of comparable property registered within the
vicinity. The technique of this approach requires the establishing of comparable property by
reducing reasonable comparative sales and listings to a common denominator. This is done
by adjusting the differences between the subject property and those actual sales and listings
regarded as comparable. The property used as basis of comparison is situated within the
immediate vicinity of the subject property. Our comparison was premised on the factors of
location, size and shape of the lot, and time element.

In valuing the land, records of recent sales and offerings of similar land are analyzed and
comparison made for such factors as size, characteristics of the lot, location, quality, and
prospective use, viz:
B) BUILDING COST

Cost Per Square Meter, Per Square Foot Method, this cost per square meter or cost per
square foot is a product of the Quantity Survey and Unit-In Place Methods which establish a
cost per square meter for the subject building and multiples that cost by square meter of the
subject building to arrive at the reproductive cost.

Straight Line Age Method, this estimating depreciation method is based upon on its
assumed that depreciation will be proportional to the estimated life of the structure.

IMPROVEMENT
GENERAL BUILDING FEATURES

Building 1
Type : Commercial Building Foundations: Reinforced Concrete
No. of Storey : 3 storey Framings : Reinforced Concrete
No. of B/Rooms : Roofing : Slabs / CGI Sheets
No. of T & Bs : Ceiling : Plyw ood
Other Feature/s : Mezzanine, & Penthouse Flooring : Ceramic Tiles
Cost Grade : Semi-Expensive Walls : PCHB/Plyw ood
Gross Floor Area : 1,725.00 Partitions : PCHB/Plyw ood
Net Rentable Area : 1,725.00 Window s : Sliding Glass on Al. Casing with Grills

Occupant/Tenants : Borrow er Doors : Panel, Flush Type

Age/Years : Actual: 20 Yrs. Effective: ### Yrs. Stairs : Hard Wood/Concrete
Observed Condition: Well-Maint. Fairly-Maint. x Poorly-Maint.

Com m ercial Building

Ground Flr. 285.00 sq.mtrs. X P 26,000 /sq.mtr P 7,410,000.00
Mezzanine 222.00 sq.mtrs. X P 15,000 /sq.mtr P 3,330,000.00
Garage/Parking 144.00 sq.mtrs. X P 13,000 /sq.mtr P 1,872,000.00
Second Flr. 429.00 sq.mtrs. X P 25,000 /sq.mtr P 10,725,000.00
Third Flr. 429.00 sq.mtrs. X P 25,000 /sq.mtr P 10,725,000.00
Penthouse 216.00 sq.mtrs. X P 25,000 /sq.mtr P 5,400,000.00
1,725.00 39,462,000.00
Less: Curables
1.Physical Curables (deferred maintenance)
1,725.00 sq.mtrs. X P 1,000 /sq.mtr. (1,725,000.00)
2.Functional Curables
1,725.00 sq.mtrs. X P /sq.mtr. -
P 37,737,000.00
Less: Depreciation (St.Line Method)
100 / 40 x 20 = 50.00% (18,868,500.00)
Depreciated Cost P 18,868,500.00
Less: Market Resistance for Special Purpose
Property -15.00% P (2,830,275.00)
Market Value P 16,038,225.00
SUMMARY OF VALUATION

Net Area(sq.m.) FMV (per sq.m.) Total

Land 450.00 31,500.00 14,175,000.00
Improvement 16,038,225.00
Total 30,213,225.00
Say 30,213,000.00

VICINITY PLAN

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PHOTOGRAPHS

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