Real Estate Base Strategy
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FFF Asset Management Limited
FFF Fund I SCSp SICAV-RAIF
FFF Fund I SCSp SICAV-RAIF
Real Estate Base Strategy
Real Estate Base Strategy
January 2021
May 2021
Real Estate Base Strategy
Europe
Real Estate Base Strategy
Europe Protecting capital, maximizing opportunity
Protecting capital. Maximizing opportunity
Investment Presentation
Fund overview Investment approach Investment process Risk Management Terms and structure
SIGNET FFF Overview
Established in 1993 Regulated by FCA and CySec Offices in London, Luxembourg, Switzerland,
USA, Cyprus and Moscow
• SIGNET FFF’s success is • Focus on absolute return • SIGNET FFF manages and • SIGNET FFF has a clear
driven by its innovative, strategies with management advises on assets in excess of sectoral preference and focuses
entrepreneurial and compensation tied to the $1bn through investment funds on Information Technology,
meritocratic culture investment return and managed accounts Healthcare, Consumer
Discretionary / Entertainment
and Sport
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 2
Real Estate Base Strategy
Investors include real estate in investment portfolios for various purposes
• Decreasing volatility
• Diversification
• Receiving current income
Real estate is viewed by many investors as a “defensive asset”, therefore the main groups of investors
are consistently increasing their portfolios in real estate
Assets under Management, USD Trillion*
Investors 2004 2007 2012 2020
Pension Funds 21.3 29.4 33.9 56.5
Insurance Companies 17.7 21.2 24.1 35.1
Sovereign Wealth Funds 1.4 3.3 5.2 8.9
HNWI 37.9 50.1 52.4 76.9
Others 42.1 55.8 59.5 100.4
Notes: * Morningstar Direct, NCREIF. 20-year period ending December 31, 2018
PWC analysis. Past data based on Credit Suisse Global Wealth Data Book, SWF Institute, The City UK, OECD and Insurance Europe
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 3
Real Estate Base Strategy
Strategy Objectives
• Investments in commercial real estate in Europe, balanced in terms of profitability and risk ratio
• Achievement of the specified parameters of profitability and the level of average annual distributions
Strategy Development Principles
• Diversification in geography, targeting specific urban areas rather than countries
• Diversification by market segment, taking into account the possibility of transforming objects for a different
type of use when the market situation changes
• Diversification in investment instruments and method of investment
• Selection of markets taking into account investment potential, transaction volumes, stability, liquidity,
availability of open market statistics and the availability of real investment opportunities
• Selection of investment objects taking into account the quality of buildings, location, reliability of cash flow,
the ability to organize management and achieve maximum profitability while maintaining the Value Add risk
profile of the Fund
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 4
Real Estate Base Strategy
REBS (Real Estate Base Strategy) - Highlights
Base Strategy
(Core +, Value Add assets)1
• Residential
Segment • Offices
• Hotels
• Other segments up to 30% of net assets
• Investment focus - 10 large cities in Europe2:
Geography • Berlin, Munich, Hamburg, London, Vienna, Brussels,
Amsterdam, Luxembourg, Lisbon and Milan
• Total equity for investments: € 135 million (equivalent) -
Investment
current Fund size including investments and commitment
Volume
• Equity per transaction: € 10-110 million
• IRR: > 7,5%
Return • Distributions: 4 - 5% - average annual distributions over
the life of the fund
Notes. (1) It is possible to have Core and Opportunistic assets in the amount of no more than 25% of net assets. (2) Investment focus determines the priority cities for investment, but does not limit the geography of
investments in the presence of profitable investment opportunities in other locations. The list of cities in the focus group may be changed annually - no more than 30% of the list
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 5
Real Estate Base Strategy
Key Terms1
Current fund size €135 million (equivalent)
Target fund size €550 million (equivalent)
Minimum investment amount €125 000 (equivalent)
Term of the Fund 10 years with an option of two extensions of up to 1 year each
10 cities in Europe (Berlin, Munich,
Geography Hamburg, London, Vienna, Luxembourg,
Brussels, Amsterdam, Lisbon and Milan)
Strategy Core+, Value Add
Acquisition of assets with potential for value growth in stable
Investment approach
and liquid markets
Investment period 5 years since the last investor subscription closing
Investors Professional and “well informed” investors2
1st closing — 4Q 2018
2nd closing— 4Q 2019
Subscription closing
3rd closing — 4Q 2020
Additional subscriptions are possible by decision of the AIFM
IRR 7.5%+3
Target return Average annual distribution of 4-5% of the invested funds
(NAV), payments are possible throughout the year4
Fund Manager FFF Asset Management Ltd (Cyprus), AIFM license
Remuneration
1% p. a. of the remaining commitment,
Management fee
2% p. a. of NAV
20% of profit on invested
Success fee
investor funds, hurdle rate 6%
Income distribution5
Distribution of cash flows Between investors in proportion to their shares
1st Flow 100% of the invested funds of investors
100% of the remaining funds are distributed Notes. (1) This information should be read in conjunction with the full text of the
2nd Flow
to investors until they reach 6% IRR (Hurdle Rate) information memorandum. (2) As defined in the information memorandum of the Fund. (3)
100% of the funds are distributed to the Manager until he The target indicators of return are indicated, however, the real indicators of return may be
3rd Flow reaches 20% of all allocated funds of the second and third either higher or lower than the planned ones, including possible risks of partial or complete
flows(Catch-up) loss of the investment amount (for more details, see the fund's memorandum). IRR
includes all operating expenses but before deducting management fees and incentive
The balance of funds is distributed in the proportion of 80%
4th Flow payments. (4) Actual annual payments may be either higher or lower than indicated. (5)
(Investors) / 20% (Manager) Distribution of income is provided for the Fund as a whole
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 6
Real Estate Base Strategy
Real Estate Base Strategy Fund Real Estate Base Strategy Fund
Key Indicators Net Asset Value Performance*
• The first investment - Q2 2018
• Investor subscriptions (investments) as of 30.09.2020 - 37.43
million euros
• The Net asset value as of 30.09.2020 - 54.06 million euros
• NAV growth for the entire period due to operating income -
7.72 million euros
• NAV growth for the entire period due to capitalization
increase - 8.91 million euros
• IRR estimate of the Real Estate Base Strategy Fund as of
30.09.2020 - 17.9%
Left axis - Net asset value, € million
• Distributions to investors of the Real Estate Base Strategy Right axis - Unit cost, €
Fund as of 30.09.2020 - 38 million euros
Note: * Temporary technical increase in the unit value as of 31.12.19 related to the accounting standards for deferred transaction obligations when transforming financial
statements into IFRS as of 31.12.19
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 7
Real Estate Base Strategy
Benefits of Cooperation for an Investor
• Availability of all the necessary infrastructure for making investments and supporting the investment
process
• Having a team with comprehensive expertise in real estate: investment, legal, financial, tax, operational,
risk management and interaction with market regulators
• Savings on operating costs, especially during the investment period
• The flow of transactions in Western Europe
• Having a network of partners in various jurisdictions
• Co-investment opportunities with the Fund
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 8
Real Estate Base Strategy: Property Portfolio (1/4)
Yris Office Building, Cloche D'or, Luxembourg (disposed of in Q1 2020)
Area 10,490 m2
Occupancy 100%
Tenants Luxembourg Tax Authority, ERI-Bancaire
Rental contracts (WAULT)1 >7 years
Rental income, gross € 4 300 000
Aquisition Q2 2018
Aqiusition asset value € 69,25 mm
Disposition Q1 2020
Disposition asset value € 98,7 mm
Project IRR 64,7%
Description
Class A office building, certified according to BREEAM standards, managed by FFF AM
during the period of the Fund's ownership. Built in 2004. The building and engineering
systems were renovated in 2015, 2016 and 2018. Leasable area of offices and archives
10,490 m2. 356 parking lots. Local partners in property management - Belair House,
Inowai.
Location
The building is located in one of the main business districts of Luxembourg with high
development potential (complex multifunctional development of an area of about 1.5 million
m2 is planned until 2030). The development of transport infrastructure will be carried out
through the launch of a new tram line and the modernization of the railway station, which
will provide 20 minutes of transport accessibility to Luxembourg airport. The building is
located within 15 minutes walking distance from the central business district.
Tenants
The property is fully leased to two tenants - Luxembourg Tax Authority and ERI-Bancaire (a
Swiss company - one of the largest developers of ERP systems for banks). The weighted
average period until the expiration of lease agreements is more than 7 years.
Note: (1) Weighted average remaining lease term
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 9
Real Estate Base Strategy: Property Portfolio (2/4)
Plaine 11 Office Building, Brussels, Belgium
Market value, gross (12.02.2020) € 25 300 000
Rental income, gross €1 550 000
IRR, gross1 10%+
Area 9,852 m2
Occupancy 95,2%
Tenants AIG, Sony, Open University of Brussels
Rental contracts (WAULT)2 >5 years
Description
Class B office building has BREEAM “Very Good” certificate. Built in 2000. Renovation of
the building and engineering systems was carried out in the period from 2016 to 2018.
Leasable office and archives area 9.852 m2. 171 parking lots. Local property management
partners - Fidentia, BNP Paribas Real Estate.
Location
The building is located in one of the main decentralized business districts opposite the
Open University of Brussels. The building has excellent transport accessibility (5 minutes
walk to a train, metro, tram stop), the main highways are located nearby.
Tenants
The occupancy of the building is 95.2%. The main tenants are AIG, Sony, Open University
of Brussels. All tenants have a high reliability rating. The weighted average period until the
end of the lease agreements exceeds 5 years.
Notes: (1) Project-level projections are shown before deducting fund-level operating costs and management fees. (2) Weighted average
remaining lease term.
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 10Real Estate Base Strategy: Property Portfolio (3/4)
NH Hotel Concordia, Milan, Italy
Market value, value (23.07.2020) € 17 800 000
Rental income, gross €1 360 000
IRR, gross1 10%+
Area 11,672 m2
Occupancy 100%
Tenants NH Hotel Group Italy
Rental contracts (WAULT)2 1,2 years
Description
The hotel was built in 2007 and has been managed by NH Hotel Group Italy since its
opening. The building consists of 13 overground floors and 2 underground levels. The total
number of rooms is 155. The building infrastructure includes a restaurant, a bar, 6 meeting
rooms, a fitness room and an underground parking for guests.
Location
The hotel is conveniently located in the Milan suburb of Sesto San Giovanni, 200 meters
from Sesto Marelli Metro Station. City center, Milano City Fair, Milan Rho Fair are easily
accessible via the M1 metro line. The Sesto San Giovanni area has historically been an
industrial area, but for a long time there has been a shift in activity towards office real
estate and services. Here are the headquarters of many well-known companies: Coca
Cola, General Electric, Heineken, Shell Italia, Xerox, ABB, etc.
Tenants
The building is 100% leased to NH Hotel Group Italy. The contract is valid until 2022 with
the possibility of extension for 7 years.
NH Hotel Group is one of the world's leading international city hotel operators. The group
manages over 400 hotels with nearly 60,000 rooms in 29 countries in Europe, America,
Asia and Africa. NH Hotel Group Italy is one of the national leaders in the chain hotel
segment in Italy, operating 51 hotels with over 7,800 rooms in 27 cities.
Notes: (1) Project-level projections are shown before deducting fund-level operating costs and management fees. (2) Weighted average
remaining lease term
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 11Real Estate Base Strategy: Property Portfolio (4/4)
Espace Office Building, Strassen, Luxembourg
Market Value, gross (31.12.2020) € 69 142 092
Rental income, gross €3 800 000
IRR, gross1 10%+
Area 12,376 m2
Occupancy 95%
Tenants DZ Privatbank, Syncordis, Randstad Interim
Rental contracts (WAULT)2 2,4 years
Description
Class A office building. Built in 2007 as the headquarters of DZ Bank. Leasable office and
archives area 12,376 m2, spread over 4 floors. Underground parking - 395 lots. Ground
parking - 128 lots. Local partners for the property management - Belair House.
Location
The building is located in the Strassen area - one of the main business districts of
Luxembourg within a 10-minute transport accessibility to the center of Luxembourg and in
the immediate vicinity of the ring road. The Strassen area is in demand among state / social
tenants. The Luxembourgish regulator CSSF and the Central Hospital are within a 10
minute walk from the Espace building.
Tenants
The occupancy of the building is 95%. The main tenants are DZ Privatbank, Syncordis and
Randstad Interim. All tenants have a high reliability rating. The average term to expiration of
leases exceeds 2.4 years.
Notes: (1) Project-level projections are shown before deducting fund-level operating costs and management fees. (2) Weighted average
remaining lease term
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 12Real Estate Base Strategy: Loans
Cite O’ - Differdange, Luxembourg Project. Development Loan
Loan amount € 11 000 000
Term 24 months
Interest rate 12%
Project Construction of 8 houses and 11 townhouses
Description
Construction of 8 private houses and 11 townhouses with land plots. The average house
area is about 250m2. The houses have terraces and garages for 2 parking lots. The
energy class of the houses is AAA. The property is located in the Differdange area - one of
the most actively developing residential areas in Luxembourg.
A senior secured loan was issued to the project developer.
193 route de Thionville - Howald Luxembourg Project. Residential Development
Loan
Loan amount € 8 200 000
Term 24 months
Interest rate 12%
Project Construction of a house for 11 apartments with parking
Description
Acquisition of an existing residential building with the subsequent demolition and
construction of a modern residential building with a larger area - 1400m2. It is planned to
construct a building for 11 apartments with an average area of about 110 m2, storage
rooms and parking. The property is located in Howald, one of the most sought after
residential areas in Luxembourg.
A senior secured loan was issued to the project developer.
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 13Real Estate Base Strategy. Team
Andrey Rozov Sergey Volchenkov
Managing Director Investment Director,
FFF Asset Management s.a.r.l.
Andrey has 20 years of international experience in managing Sergey has over 15 years of international experience
commercial real estate assets and properties, investments and in the following industries: corporate finance, fund
real estate funds. He has managed the activities of several and investment portfolio management, M&A
companies in Luxembourg as a member of the Board of transactions in direct investment and real estate.
Directors. Andrey has worked in such companies as UFG Sergey headed investment departments in various
Wealth Management, Jones Lang LaSalle, IKEA, Hines, real estate and private equity funds in the EU.
Sheraton hotels and has investment and management Responsible for the implementation of investment
experience in the office, hotel, retail, logistics and residential strategies with a total volume of over €500 million.
real estate segments. He performed asset management with a Sergey has served on the boards of directors of
total volume of more than €350 million and operational several companies in the real estate, medical
management of properties with a total area of more than 1 services and new technology sectors, and served as
million square meters. The teams under his management have COO of management companies of Luxembourg
carried out more than 700 investment and rental transactions. Real Estate Funds (AIFs). Sergey is a candidate of
Education: "Economics and Management in Construction". economic sciences, holder of the Grant of the Federal
Chancellor of Germany, the A. Humboldt Foundation
(Germany).
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 14Real Estate Base Strategy. Team
Ilya Guselnikov Stanislav Panchenko Tatiana Kharchevnikova Dmitry Ugolkov
Director General Counsel Financial Controller Portfolio Manager
Experience: Skadden, Arps, Slate, Experience: Zurich, Generali
Meagher & Flom, Dentons
Alexey Kondrashov Yuline Martirosyan Arkady Korbukh Alexey Panteleev
Asset Management Asset Manager Construction project Tax Adviser
Director manager Experience: Ernst & Young
Experience: Evli Property Investment
Fund, Arista Fund
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 15Regulatory Notice and Legal Disclaimer
The content of this material is a marketing communication, and does not constitute any form of independent investment advice and/or
recommendation and/or research. The material is for general information purposes only (whether or not it states any opinions). Nothing in this
material is (or should be considered to be) legal, financial, investment and/or other form of advice and/or recommendation on which reliance should
be placed. No opinion given in the material constitutes a recommendation by FFF Asset Management Limited (the “Company”) or the author that
any particular investment, security, transaction or investment strategy is suitable for any specific person. Although the information set out in this
marketing communication is obtained from sources believed to be reliable, the Company makes no guarantee as to its accuracy or completeness. All
information is indicative and subject to change without notice and may be out of date at any given time. Neither the Company or the author of this
material shall be responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information
contained herein. This material may include charts displaying financial instruments' past performance as well as estimates and forecasts. Any
information relating to past performance of an investment does not necessarily guarantee future performance. Please seek independent advice.
Also, please note that Seward Capital LLC in the US and Signet Capital LLC in the Russian Federation act as advisors and are currently not part of the
Signet FFF Group of Companies.
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Commission. Please see important Disclaimers and Risk Factors noted at the end of this document. www.signet-fff.com 16Signet Capital Management Ltd. FFF Asset Management s.a.r.l. Signet FFF Capital AG FFF Asset Management Ltd Seward Capital LLC Signet Capital LLC +44 203 915 5536 +352 26 202 480 +41 43 305 06 50 +357 25 053 900 +1 704 285 6504 +7 495 797 80 65 info@signetmanagement.com svolchenkov@fff-am.lu ebolotskaya@fff-partners.com info@fff-am.com go@signet.capital www.signetmanagement.com www.fff-am.com www.sewardcapital.com www.signet.capial 11 – 12 Pall Mall 8 Rue du Fort Rheinsheim, 33 Bleicherweg 1, Agias Fylaxeos St. 307 West Tremont Ave 123100 Moscow London SW1Y 5LU Luxembourg L-2419 Zurich 8002 Limassol 3025 Charlotte, NC 28203 Krasnopresnenskaya emb. 12 United Kingdom Luxembourg Switzerland Cyprus USA Russian Federation
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