INDIAREIT DOMESTIC F d IV | I Fund Investor Presentation t P t ti

STRICTLY PRIVATE AND CONFIDENTIAL

Contents

Executive S E ti Summary Indian Real Estate The Manager and its Track Record Team Structure Investment Strategy and Process Key Terms and Opportunities K T dO t iti

Executive Summary

Executive Summary
Opportunities in Indian real estate
One of the few economies to witness positive growth, driven by strong domestic demand Revival in real estate, driven by intrinsic demand and job stability , y j y Partner with clear strategy, in-depth knowledge, experience and risk minimization skills to benefit from High return opportunities

INDIAREIT is best placed to reap the benefits of the emerging real estate sector
Proven track record with multiple funds under management High target returns; focused and consistent investment strategy with resilience through market cycles Comprehensive investment experience; Strong investment and asset management team with hands on experience Consistent and proven investment philosophy across markets

supplemented with key differentiators

Only fund with realized exits across funds Recent valuations estimate 2.10x pre-tax money multiple on portfolio Track record of deployment; 47m sq. ft. of saleable area currently under development

Indian Real Estate

Continued Growth amid Global Slowdown

One of the few economies to grow, when all major economies slowed down
GDP Growth 6.7% in FY09 and expected to grow by 7.2% in FY10 and 7.5% in FY11

Driven by domestic consumption

Industrial Production grew 10 1% in FY10 (Apr Feb10) 10.1% (Apr-Feb10)

Price stability
Witnessed in the residential segment across geographies, mainly in large cities

Strengthening capital markets & fund flows

Appetite for fresh equity improving, with capital markets rising over 100% since Mar 09 low US$23.4bn net foreign investment flows in FY10 Low interest rates & liquidity have a direct correlation with real estate demand and pricing

Pro-active & stable government

Infrastructure spending to improve overall economic growth
INR 129bn for urban infrastructure & housing to positively impact real estate growth INR 403bn for other infrastructure development

Focus on banking and finance to ease liquidity, mortgage rates down to 8.5-9.75% from peak of 13-15% k f 13 15%

Real Estate - Still Veritable Asset Class

Intrinsic demand for housing exists with the right price structure
Recent projects launched at affordable price points in Mumbai, Delhi & Bangalore recorded high pre-sales Resurgence in prices in Mumbai and Delhi Strong volumes across Bangalore, Chennai and Pune

Rationalisation in real estate industry

Shift focus from land banking to project execution Concentrated efforts toward de-leveraging Consumer centric pricing and development Consolidation and expansion restricted to home markets Revival in commercial demand

Renewed monetary thrust to sector

Banks increasing exposure to real estate Interest rates down to 8.5-9.75% from peak of 13-15% Private equity transactions were healthy with US$247mn transactions in 2009

Resurgent equity market

Over US$3bn raised in capital markets via QIP & Stake sale in past 1 year

The Path to Profit

Need to be inside market with discipline, experience & know how

Longevity and width of partner relationships key

8 existing partners with 47m sq ft of saleable area under development spread across 5 cities

Ability to comprehend need gap & affordability

Most projects for Rs.2,800-3,200 per sq ft across Bangalore & Pune Ultra high end luxury housing Signature Island for INR 30,000 per sq ft at prestigious Bandra Kurla Complex, Mumbai Low cost integrated housing Neptune Swarajya for INR 1 500 per sq ft at Ambivali Neptune Swarajya 1,500 Ambivali, Near Kalyan, Mumbai

Practical approach to work

Offtake linked construction / phasing for commercial projects Residential cashflows to feed commercial development for projects outside Mumbai No leverage at fund level; Minimal leverage on project level

Investment in projects with pre-defined exit

Residential with strong pre-sales potential No capital market dependence

The Path to Profit (Contd)

Highly unusual market characteristics

Still opaque market; knowledge is paramount given asymmetric information

Only fund to be headed by a developer, with over 2 decades of successful delivery

Reg lated at national and local le els with clearl laid do n policies Regulated levels, ith clearly down
Approach of local partnering with skin in the game

Real estate in evolution stage

V l add investing and effective monitoring mechanisms Value dd i ti d ff ti it i h i Risk Management

Premium placed on partner / transaction selection / management / execution Effective monitoring through third party consultants
Project Management Consultants, Civil Contractors, Auditors and In-house Asset Management Expertise

Risk minimization key to delivering returns

Project level exposure, no capital market dependence Execution control through effective shareholding rights Large city focus fund with residential bias

INDIAREIT Advantage
Market Undoings U d i
Leverage
Loan driven land acquisition / construction, minimal equity investment to increase return on equity Leverage impacts development of ongoing and new projects in a volatile market Taken for granted demand at any price level, leading to reduced sales at higher price points Entry point in land based on comparable land transaction instead of end user affordability Large format, highly priced and presence across segment Investment in retail and hospitality, without considering underlying dynamics (Long gestation period, leverage and uncertain exit) Excessive commitment in Tier 2/Tier 3 cities with limited demand and offtake Investment based on misplaced assumption that lower land cost result in higher profit Minority interest with minimal execution level control

INDIAREIT Strategy
No leverage at fund level; Minimal leverage at project level Coupling proposition - residential cash flows to be used for commercial development Pre-sale linked construction Right pricing after determining demand at various price points, leading to strong pre-sales in the project Target mid segment housing with a price range of INR 2,800-3,200 at launch (except Mumbai), catering to large untapped demand and keeping entry points low Right pricing and size to fit the affordability; Residential bias No stand alone Hospitality/Retail

Pricing Entry Points Product Mix Retail/ Hospitality Tier 2 / Tier 3 cities Execution Control Exit

Focus on Tier I cities with established demand and strong pre-sales pre sales New acquisition with opportunistic focus alone Significant equity partnership, local city presence, two tier title verification and joint bank account signatories / takeover rights for effective monitoring No dependence on capital markets for exit
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Exit dependent on capital markets

The Manager and its Track Record

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INDIAREIT - Foundation
Promoted by Piramal Enterprises Ltd, over US$2.0 bn diversified conglomerate with global presence and business interests spanning following industries
Real Estate: Over a decade experience and has delivered key land marks such as Peninsula Corporate Park (first high end office space in India) and Crossroads (first retail mall in India), prior to these being hived off as a part of family reorganization in 2003 Healthcare and Flaconnage: Piramal Healthcare (I) Ltd. - 2nd largest healthcare business group in India; Piramal Glass Ltd - 3rd largest flaconnage company in the world

3i Investments, a world-leader in private equity, listed in London, with an AUM of 11.7bn acting as Cornerstone Investor for Offshore Fund
3i has partnered with INDIAREIT to pursue real estate investment opportunities 3i committed US$40 to the 1st Offshore Fund itt d US$40m t th 1 t Off h F d

Headed by Entrepreneur CEO (Ramesh Jogani) bringing a developers perspective fund perspecti e in f nd management

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INDIAREIT - Track Record

Backed by strong fundamentals

Fund with US$450m corpus and more than 47m sq. ft. of area under development Proven track record of deployment; Healthy valuations despite market slowdown
2006 Corpus (INR mn) Investment (INR mn) Area under development (mn sq ft) Valuations (Money Multiple) 12,990 3,194 3.4 NA1 2007 18,365 8,574 29.3 3.12x 3 12x2 2008 18,365 13,210 40.0 3.53x 3 53x3 2009 18,365 13,210 47.2 2.41x 2 41x4 2010 18,570 14,462 47.6 2.10x
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1. Projects not valued 2. Pre tax multiple for INDIAREIT projects valued by Trammel Crow Meghraj in April 2007 3. Pre tax multiple for INDIAREIT projects valued by Knight Frank India Pvt Ltd in March 2008 4. Pre tax multiple for INDIAREIT projects valued by DTZ International Property Advisors Pvt Ltd in March 2009 5. Pre tax multiple for INDIAREIT projects valued by Jones Lange LaSalle Meghraj in Jan 2010 Taxes as applicable at SPV level from 0% 33 99% have not been considered and hence will have a downward 0%-33.99% bearing on the valuation

Relationship Reinvented
Trusted by over 5,000 investors globally Distributed by most leading private banks in India Partnered with 8 leading local developer

Fund Structuring
High target return; focused investment strategy Pro-active in introducing new features such as liquidity pool, third party mortgage facility, ,p y lower fee slabs, portfolio level distribution and drawdown holidays First to declare independent valuation; regular reporting to investors via newsletters, whitepapers etc.
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INDIAREIT - Track Record (Contd)

First to complete round trip of Investment

First Indian Fund to complete exits in investee projects

Maiden investment in residential project (Signature Island) exited in Sept 08 with 2.22x net money multiple Partial exit of second investment (Bangalore Retreat) translating into 2.25x net money multiple Partial exit from residential project investment ( p j (Ariisto Sapphire) in Apr10 with 2.00x net pp ) p money multiple

Nearly 35% of first domestic fund returned within 3 year of closing, from one complete and one partial exit out of 12 projects 5% of third domestic fund returned within two and half year of closing, from just closing 1 partial exit
INDIAREIT Experience

Work commenced on majority projects

Visible activity on all major sites; On track execution and delivery

No partners litigations
Repeated transactions with all development partners and right of first refusal

No land issues
All title diligence through two tier rigorous process

No credit default
Low leverage policy; Pre-sales driven construction

Visible cash flows

Established sales from various projects across cities

Work linked to offtake

Ensure minimal cash flow stress
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All Round Investment Experience

Developer p Project j Location

Residential
Ultra High End
Sunteck Signature Island Beverly y Park Atlantis The Retreat Swarajaya Getaways & Realities Blueridge BKC, Mumbai Hebbal, , Bangalore Old Madras Rd, Bangalore Devanhalli, Bangalore Ambivali, Mumbai RAK Region, Mumbai Hinjewadi, Pune

Visible Exit by 2011

Status

Exited with 2.22x money multiple

Skyline

58% pre-sales, 75% construction complete pre sales

Apartments
Skyline

85% pre-sales, 95% construction complete 49% sold, construction in stages, to be completed by Sept 10 80% pre-sales, Slab work underway for Phase I Model villas available for display for Parhur and Nagaon projects .Healthy pre sales in both projects 67% pre-sales, Slab work nearing completion for residential Phase I

Villas Low Cost Housing Second Home Destination Integrated Township

SSPDL

Neptune

Samira

Paranjape

Commercial
Commercial IT SEZ Retail
Neptune Evolution Kurla, Mumbai N All sanctions in place, excavation underway, Financial closure ac e ed a c a c osu e achieved 90% construction complete, slab work in progress Slab work nearing completion for Phase I, ready for fit out by June 10 80% construction complete, completion by June10

Neptune

IT Park

Thane Hinjewadi, Pune Bhandup, Mumbai

Paranjape

Blueridge The Th Magnet Mall

Neptune

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Team Structure

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Management Team

The Management Team represents over 60 man years of real estate development and investment experience

Name Ramesh J R h Jogani i Jasmeet Chhabra Sachin Deodhar Bhushan Sawant Sven Schmedes Avinash Hinduja Pawan Sawhney Khodadad Pavri Piyush Gupta Santosh Soni Vikas Khadloya

Designation CEO & MD Director Investments CFO Director- Investor Relations In-House Consultant VP Asset Management VP Investments AVP Investments AVP Investments AVP Investments AVP Investments

Total Experience (yrs) 22 8 14 17 12 14 12 7 7 7 5

Real Estate Experience (yrs) 22 5 4 1 12 14 2 6 2 7 2

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Management Team (contd)

Team structured to provide in house expertise as virtual developer

Multicity team presence

In Bangalore, with 2 investment managers and 2 asset manager In Hyderabad, with 1 investment manager and 1 asset manager Rest of team in Mumbai

Key expertise across spectrum of functions

Investments Ramesh Jogani, CEO & MD Jasmeet Chhabra, Director - Investments
Supported by 6 P f S t db Professionals i l

Finance, Legal & Risk Management

Sachin Deodhar, CFO

Supported by 3 Professionals

Asset Management

Avinash Hinduja, VP Asset Management Sven Schmedes, In-House Consultant

Supported by 2 Professionals

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Investment Strategy and Process

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Focus Location - Metro / Tier I Cities

Approach
Mumbai - Re-emerging markets Mumbai Financial and Political capital of the country, constitute largest p of real estate in country g pie y Hyderabad Main business and administration centre, with developed infrastructure and large Pune employment opportunities Firmed up prices, inherent demand seen Bangalore across various recent launched projects Closely followed by Bangalore, Pune, Delhi and Chennai Improved infrastructure and better connectivity Large employment and income levels S Service sector driven industry
Chennai 0% 2% 10% 20% 30% 40% 50%

INDIAREIT Fund Total Portfolio

53% Neptune, Ariisto & Samira 20% 17% 8% Amsri & SSPDL Paranjape Skyline, SSPDL SSPDL, Skyline

Large city focused fund 17 projects L it f df d j t spread across Mumbai, Pune, Chennai, Bangalore & Hyderabad. One of the largest pool of assets in Mumbai

Rationale
Tier I cities are the key beneficiaries of improving macro factors i.e. Improving GDP, Stable Government, Resurgent Equity Markets, Improving q y p Liquidity and rapid urbanization

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Focus Segment - Residential

Approach
Residential focus with 70% portfolio allocation ~ 3,000 per sq ft price level in Bangalore, Hyderabad, Hyderabad Chennai & Pune Self liquidating No leverage Negative working capital for better cashflow management
Project

INDIAREIT Residential Projects

Location Avg Selling Price 1,650 2,850 2,972 2,667 2,157 3,063 2,329 2,481 2 481 2,399 2,614 4,391 13,000 Total Units 1,500 1,492 172 28 62 92 16 110 49 65 232 82 Presales 80% 67% 58% 85% 79% 85% 93% 62% 70% 20% 73% 40% Trend

Ambivali (Phase I) Blueridge (Phase I) Beverly Park Fountainhead

Mumbai Pune Bangalore Bangalore Bangalore Bangalore Bangalore Bangalore Bangalore Bangalore Mumbai Mumbai

Rationale
Indian real estate demand split between residential & commercial in the range of 70:30 High residential demand observed even in a slow economic environment at right price points (INR 2,800 - 3,200 per sq ft) Recent residential units launched across Delhi Delhi, Mumbai and Bangalore recorded high presales The National Housing Board estimates current y shortfall of 25.6m houses in the country

Ambrosia Atlantis Magnolia Champagne Hills Blue Berry Hills Skyline Waterfront Living Point (Phase II) Ariisto Sapphire

~ 3,000 per sq ft price except Mumbai ensuring strong pre-sales

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Finance Strategy - Unlevered

Approach
Minimal debt Strong Pre-sales and hence minimal debt City focus projects ~ 3,000 per sq ft price level Commercial primarily from cash flow of residential Paranjape Blueridge Pune N t Neptune Magnet Mall Bhandup M t M ll Bh d Mumbai only exception, competitive entry price for Neptune Evolution (Kurla) High land cost (INR 8,000 - 10,000 per sq. ft) ensuring sufficient cushion for leverage on construction cost (INR 3,000 per sq ft)

Leverage of Investee Projects

7% Debt

93% Equity

Rationale
No leverage at f fund level and minimal leverage at Investee projects level High cost of debt in India Servicing debt at periodic intervals is difficult, due to erratic cash flows of real estate Highly volatile asset class

LowfinanceriskwithZeroleverageat fundlevel.Investeeprojectshave fund level Investee projects have minimalleverage

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Investment Prerequisites
Partnering Approach
Development partner to co-invest in projects No cashout to developer Developer has hurt money skin in the game ensuring timely completion Land cost to meet end user affordability (~ 3,000 per sq. ft end product sale price) Except Mumbai & Delhi Execution capital only in Mumbai & Delhi Land cost as a cushion for investment No land banking Project with 3-5 years cycle only Strong relationship translating to continues projects pipeline, enhancing deployment potential

Downward Protection
Ensure that developer contributes capital to project ensure cost, quality and time bound delivery skin in the game Strict veto rights at SPV level (veto control across SPVs) Third party execution at Funds discretion Joint bank account signatory rights across development partners No sales price escalation or fringe income taken into account entire project modeled on conservative and static basis Take over rights if project not delivered Right to appoint Project Management Consultant (PMC) Local city presence through combination of Investment / Asset level team

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Key Terms and Opportunities

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Key Fund Terms - Fund IV

Term Fund Size Primary Investment Vehicle Target Investor Minimum Commitment Draw Down Tenure Fund Tenure Hurdle Return Profit Share post hurdle Investor Exit Description INR 500 Crores with Green-shoe option of up to INR 250 Crores Equity, Preference Shares & Debentures of unlisted company Institutions, Corporates and HNI INR 50 Lacs 36 Months (Initial draw down of 20%) Total fund term would be 7 years with an option to extend by a further 1+1 y y p y year 10% per annum 80:20 with catch up (82.5:17.5 for commitment more than 10 crores and 85.0:15.0 for commitment more than 20 Crores) pp p party Mapped to disinvestment in investee companies / Third p y sale 2.0% pa (for commitment less than INR 10 Crores), 1.75% pa (for commitment more than INR 10 Crores), 1.50% pa (for commitment more than INR 20 Crores) 2% of Capital Committed Yearly valuation by leading third party property consultant 30% of subscribed capital per investors; Eligible after payment of 50% commitment Option to forgo p y p g payment of any one drawdown without any p y y penalty with y automatic readjustment of commitment

INDIAREIT Domestic Fund - IV

Management Fee One Time Set up Fee Fair Market Valuation of Investment Mortgage Facility Drawdown Holiday

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Opportunities Ahead - Fund IV

Pipeline Term Sheet Joint development for 16 acre residential land parcel in North Bangalore 42 acre mixed use development at Out Ring Road (Marathalli in Bangalore) g Under Negotiation Joint development for 3.5 acre residential development in Greater Mumbai (Central corridor) 6 acre residential development in South Mumbai Opportunities NTC Mill auction in Central/ South Mumbai Redevelopment /Slum Rehabilitation projects in Mumbai

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For more information, please contact ,p Investor Relations INDIAREIT Fund Advisors Private Limited Piramal Tower, Ground Floor, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai 400 013 Ph: 91 22 61513440 Fax: +91-22-61513444 Ph +91-22-61513440 F 91 22 61513444 Email: investors@indiareit.com Website: www.indiareit.com

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Disclaimer

This document is being furnished to you by INDIAREIT Fund Advisors Pvt Ltd on behalf of INDIAREIT Domestic Fund IV strictly on a confidential basis. This document is for informational purposes only and does not constitute an offer for participating in the proposed Fund. This information profile has been provided to its recipient upon the express understanding that the information contained herein or made available in connection with any further investigation is strictly confidential and is intended for the herein, investigation, exclusive use of its recipient. It shall not be photocopied, reproduced or distributed to others at any time without prior written consent. This document is neither a prospectus nor an invitation to subscribe to units. Prospective Contributors and/or investors should carefully review the underlying Constituent documents of the Fund before making a decision to invest. In general, investment in the shares of the Fund will involve significant risks. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. service The use of any information set out in this document is entirely at the recipients own risk. Contributors are advised to seek recipient s risk independent professional advice to understand all attendant risks attached to investments in the Fund. Also, Contributors should have the financial ability and willingness to accept the risks and lack of liquidity, which are characteristics of the investments described herein. In making an investment decision, investors must rely on their own examination of the documents and the terms of the Offering to be set out in detail in a separate document, including the merits and risks involved.

While reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, INDIAREIT Fund Advisors makes no representation as to its accuracy or completeness. The information herein is subject to change without notice. Neither INDIAREIT Fund Advisors nor any of its officers or employees accept any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.

The facts and figures used in this presentation reflect the latest available information and have been sourced from various reports in leading newspapers, Reserve Bank of India, DTZ Research, INDIAREIT research and other sources that are in public domain

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