The document discusses opportunities in the Swiss real estate market. It notes that while GDP growth has been modest, the housing market has remained strong with rising home prices and low vacancy rates. Foreign demand for Swiss real estate also remains high due to the favorable tax structure and political stability. The document recommends investing selectively in urban areas like Zurich and Geneva, focusing on multi-family housing, retail, and redeveloping older office and retail properties to attract higher-paying tenants.

1. SWISS REAL ESTATEOPPORTUNITY?

2. Potential Euro Zone defaults,stagnant growth expectations, an appreciating currency,a fragile economic recovery?

3. SWISS ECONOMY & HOUSING MARKETRECESSION Swiss GDP declined 1.9% in 2009, 2.7% GDP growth in 2010, expected to grow by 1.5% in 2011. WHAT CREDIT CRISIS? Availability of credit has not been severely effected by the global credit crises, and since 2008, the number of mortgage loans have been increasing between 3.3% and 5.4% per QTR. CURRENCY APPRECIATION Swiss Franc has appreciated over 30% vs. USD past 3 years. REAL ESTATE PRICES Home prices have enjoyed up to 4.8% growth YOY, in particular owner occupied condos and single family homes. VACANCY RATES In most major urban areas, multi-family vacancy rates are extremely low and less than 1%. POPULATION Increased by 1.1% in 2010, and is expected to grow 0.8% this year. FAVORABLE TAX STRUCTURE Switzerland attracts high net worth buyers as second home owners are not required to declare their income.

4. make real estate investorsanxious and fearful— unable to take risksorsee opportunities.

5. Switzerland isa recreational playground.

6. a second home destination for wealthy individuals.

7. a global business community. CONFIDENTIAL

8. home to the world’sinternational organizations.

9. SWISS RESIDENTIAL REAL ESTATEHOMEOWNERSHIP Lowest homeownership rate in Europe, at 31% compared to 60% in western Europe. PRO-TENANT LAWS Pro-tenant laws in place to protect tenants against eviction and requires landlords to justify any rent increases. AVERAGE PRICES Range from $1,025 to $1,285 PSF in Geneva and Zurich, and prices in skiing areas are even more expensive and reach $1,700 PSF. FOREIGN DEMAND Mostly from Germany, England, wealthy foreign buyers enjoy the favorable tax structure. OWNERSHIP RESTRICTIONS Restrictions to purchase Swiss real estate by non-Swiss nationals, not for E.U. nationals, and does not apply to commercial real estate. CLOSING, TRANSACTION COSTS Contracts must be drawn up, attested and closings handled by public notaries. Transaction costs vary by canton, or state, generally 2% to 4% of purchase price, plus notary fees from 0.5% to 1.7%. Sellers typically pay a 3% RE commission.

10. ZURICH Metro population: 1.34 millionCity population: 382,906Pop growth past 10 years: 5.9%Main language: Swiss GermanUnemployment rate: 4.7%Total residential apts: 207,581% Owner occupied homes: 7.1%% Vacant apartments: 0.05%GENEVAMetro population: 1.24 millionCity population: 189,313Pop growth past 10 years: 4.3%Main language: FrenchUnemployment rate: 8.0%Total residential apts: 104,756% Owner occupied homes: 5.9%% Vacant apartments: 0.21%

11. BASELMetro population: 830,000City population: 189,556Pop growth past 10 yrs: -4.5%Main language: Swiss GermanUnemployment rate: 4.3%Total residential apts: 105,064% Owner occupied homes: 10.5%% Vacant apartments: 0.90%BERN - capital cityMetro population: 660,000City population: 130,289Pop growth past 10 yrs: -1.4%Main language: Swiss GermanUnemployment rate: 3.9%Total residential apts: 74,388% Owner occupied homes: 10.9%% Vacant apartments: 0.60%

12. SWISS COMMERCIAL REAL ESTATEURBAN CENTERS Zurich has the largest stock of commercial real estate, as well as other cities of Geneva, Berne, Basel and Lausanne. MULTI-FAMILY Due to low rate of home ownership, strong demand for multi-family, particularly in urban business centers with average QTR rent increases of 3% in 2010. RETAIL Highly volatile due to economy, with top locations in Zurich reaching $690 PSF. OFFICE Vacancy rates are expected to slightly increase, however, the overall supply rate is less than 3%. Class A space in the city of Zurich averages $84 PSF. TRENDS Major focus on green buildings and sustainability, as well as proximity to infrastructure and transportation. REAL ESTATE FUNDS 2010 was very successful with share prices increasing 18.7% for RE Funds. Funds are considered to have a high degree of safety, and if investor owns the property directly, then distributions are tax-exempt.

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16. TRENDS IN THE MARKET.SUSTAINABILITY There are opportunities to develop residential and commercial properties with a focus on the concept of sustainability and quality of life in urban centers. MULTI-FAMILY Due to the extremely low vacancy rates in most major cities, there is consistent demand for multi-family residential housing with consistent rent yields in 4.5 to 8% range.ECONOMIC UNCERTAINTY As vacancy rates and rents are decreasing is less desirable locations, more value-add opportunities will emerge in these areas. PROXIMITY Increasing demand for properties with good access to infrastructure, transportation, as well as work places.

17. THEREFORE, BE SELECTIVE, INVEST.URBAN CENTERS Develop condo or single family properties in Zurich / Geneva, with a focus on sustainability and quality of life.URBAN INFILL Purchase older buildings or “brownfill” sites and redevelop to either retail, office and apartment, or combination of these, to a higher and better use.OFFICE AND RETAIL Acquire Class B office or retail in excellent locations and redevelop to attract Class A tenants. HOSPITALITY Seek out independent or “family owned” hotels in both city and resort locations that offer significant upside through renovation, management, franchising, condo-hotel conversion, or all of the above.

18. Ross MilroyREE 6395CONFIDENTIAL