Retail

Note: All figures as at 30 June 2015. This document is solely for the use of professionals and is not for general public distribution. TH Real Estate is the brand name used by TIAA Henderson Real Estate and TIAA-CREF to represent their global real estate asset management operations.

Who we are

$86.6bn

TH Real Estate is an established investment management company, specialising in real estate equity and debt investment worldwide. With a dedicated global presence including offices across Asia, Europe and the US, we manage $86.6bn of real estate assets across c.50 funds and mandates. By combining a global perspective with our dedicated local expertise in real estate, we work hard to deliver innovative investment solutions for our clients.

global AUM

$31.3bn

global retail AUM

+280

retail assets across the globe

Retail With $31.3bn invested, we are the largest global fund manager in the retail sector*, managing over 285 retail assets around the world. Our flagship products include those focused on prime shopping centres, retail warehouse parks, neighbourhood centres and outlet malls. We also manage a number of significant retail mandates on behalf of international sovereign and major pension fund clients, and are involved in some of the best known retail schemes worldwide, including Bullring in Birmingham, Westfield Stratford in London, Florentia Village Jingjin in Beijing, Mount Ommaney Shopping Centre in Brisbane and JK Iguatemi Mall in Brazil.

approach to retail is multi-layered: Our research team continuously monitors the changes in consumer behaviour, our asset managers build close working relationships with our tenants, and our investment teams focus on understanding and delivering our clients’ objectives. TIAA-CREF owns assets across all sub-sectors of retail in the US. Flagship holdings include Grand Canal Shops in Las Vegas, Florida Mall in Orlando, International Plaza in Tampa, and Montgomery Mall in Bethesda, Maryland.

We bring a unique offering to the retail sector: a fusion of a skilled retail manager with the gravity of a large investor. Our

As our approach cannot be achieved remotely, we have strong retail teams on the ground in Australia, Austria, China,

France, Germany, Italy, Singapore, Spain, Sweden, the UK and the US. The team benefits from our integrated investment platform, including finance, research, sustainability, development, debt and currency management, performance analytics, client services, fund and transaction structuring. We also enjoy working with partners where our combined expertise can create unique and exciting opportunities for our clients. Retail partnerships include those with the likes of McArthurGlen, Hammerson and RDM Asia. * Source: IP Real Estate Top 100 Investment Management Survey, November 2014

To engineer the best value from an asset, it is important to understand the geography, where the building is located, the consumers, the occupiers, the retailers and the market. Our retail team has the experience and skills to ensure this approach is applied across our entire portfolio.

Myles White Director of Retail, TH Real Estate

Bullring, Birmingham, UK

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Our strategies As one of the largest real estate managers in the world, TH Real Estate has the capital resources and knowledge to provide creative and effective real estate investment solutions for clients.

We provide both pooled and bespoke solutions for investing as well as asset management. Our experience extends across sourcing investment product, structuring bespoke segregated mandates and investment clubs, together with the manufacture of market leading pooled funds. In all cases we work closely with our clients to ensure that we meet their needs and exceed their expectations.

Michael Neal Director, Fund Management, TH Real Estate

Asset Manager The aim of asset management is to increase the value of the properties we manage to deliver good investment performance for our clients. We apply our own experience, as well as that of our local advisors, to form asset business plans with realistic goals that can be achieved within a given time frame. We add value via letting, re-letting, promotion, refurbishment and redevelopment. We ensure there is a strong digital strategy across all assets to support the increasing role which e-commerce plays within the retail business model. Fostering relationships with key tenants is one of the most beneficial practices. Continual monitoring of key information such as sales, footfall and circulation patterns in conjunction to catchment demographics and customer feedback, allows us to tailor tenant mix, marketing and PR to ensure that we achieve the full potential of each asset. We have recently secured several asset management mandates: • To manage two large retail assets on behalf of one of the largest Swedish pension funds in Sweden. The portfolio (valued at c.$98.7m), comprises the shopping centres Vågen and Krämaren in Örebro. • To manage the 459,000 sq ft (42,600 sq m) Espacio Coruña shopping centre in Spain. As asset manager, we will define the strategy for the property in order to reposition it within the complex market of A Coruña. This will involve deployment of a new business plan, comprising an investment programme, tenant mix and marketing strategy. • To manage the Il Ponte shopping centre in Pontecorvo, Italy. The centre, owned by Banca Italease and Mediocredito Italiano, opened in 2007. It has a total GLA of 140,000 sq ft (c.13,000 sq m) and a catchment area of 132,000 people within a 20 minutes range. We are working closely with our partners on the scheme, JLL and Svicom, on the management and leasing strategy to strategically relaunch the shopping centre, enhancing its value for all stakeholders.

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Investment advisor

We have extensive experience working with and running mandates for some of the largest sovereign wealth and global investment funds in the world. This experience extends across investment sourcing, fund structuring and asset management. Silk Road Holdings Joint Venture, China In May 2012, we became investment advisor to a Singapore joint venture - Silk Road Holdings – with US$200m equity to invest in and develop designer outlet malls in China. We are acting as the investment advisor for the joint venture alongside RDM Asia - the real estate development company of the Fingen Group in Asia - who is the operating and development partner. The current Silk Road Holdings’ portfolio includes the iconic Florentia Village Jingjin Designer Outlet Centre, which has set the benchmark for luxury outlet shopping in China, and Florentia Village Shanghai , a 166-unit centre which opened in January 2015. Brands include Gucci, Armani, Ferragamo, Celine, Fendi, Coach, Hugo Boss, Etro, Gap, Michael Kors, DVF, Missoni and Moncler, amongst others. The portfolio also includes the development of Florentia Village Guangzhou, with an opening of Phase 1, comprising 123 stores, scheduled for H2 2015. Leasing is progressing well. Two further sites were acquired in 2015, located in Chengdu and Wuhan. Planning and design is underway with construction anticipated to begin on both sites in late 2015. thecentre:mk, Milton Keynes, UK In 2013 we were chosen to act as investment advisor for AustralianSuper’s emerging UK retail property strategy. Soon after, we advised the c.$52.5bn superannuation fund on the purchase of its first direct investment for its international property portfolio. In the form of a 50% interest (c.$450m) through a partnership with The BT Pension Scheme (BTPS), AustralianSuper purchased thecentre:mk, a major regional shopping centre in Milton Keynes, north west of London, UK. Sitting in the growth corridor between Oxford and Cambridge, and spanning 1.3m sq ft (c.121,000 sq m) of prime retail, thecentre:mk ranks as a top 10 UK shopping centre in terms of retail space provision. It is anchored by John Lewis, House of Fraser and Marks & Spencer, alongside 220 retail stores. thecentre:mk attracts over 27 million customer visits every year and is the focal point for Milton Keynes’ city centre, with strong community support and excellent growth potential.

Westfield Stratford, London, UK Westfield Stratford City is one of the UK’s prime shopping and entertainment destinations. Located at the gateway of London’s Olympic Park, it houses 1.9m sq ft (c.180,000 sq m) of retail, catering, leisure and entertainment space. We acted as the investment management advisor to a joint venture between Canada Pension Plan Investment Board and Algemene Pensioen Groep when they purchased a 50% interest in Westfield Stratford City from Westfield Group. The deal, which took place in November 2010, was valued at $1.4bn. We continue to act as investment advisor to both parties at the centre.

Following an extensive search for an investment manager to advise on our retail focused strategy, we are confident that we have made the right choice. We have already enjoyed a collaborative relationship with the team where the experience of their UK retail market is proving invaluable.

Jack McGougan Head of Property, AustralianSuper

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Our strategies (continued) Specialist strategies

We can leverage our existing product range, specialist expertise and strategic partnerships to grant access to a variety of specialist strategies. We can provide immediate access to a number of existing funds or develop new vehicles to suit investor demand. The breadth of our expertise allows us to offer both indirect and alternative routes to market.

Our long involvement in the retail sector has given us an appreciation of the industry’s ebbs and flows and its continuous adaptation to retailers’ and shoppers’ needs, wants and preferences. John Ragland Senior Director, Head of Retail Asset Management, TIAA-CREF

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Strategy

Core German retail

AUM

$425m target capital raise

Location

Germany

Sub-sector

Offers access to retail warehouses, shopping centres and high street in established, competitive locations

Strategy

European retail

AUM

$750m

Location

Europe

Sub-sector

Offers access to retail warehouses, shopping centres and city centre retail investments that can be actively managed to add value and achieve rental growth

Strategy

German retail income

AUM

$278m

Location

Germany

Sub-sector

Offers access to core investments focused on retail warehouse parks, hypermarkets and neighbourhood centres

Strategy

Outlet malls

AUM

$2.7bn

Location

Europe and UK

Sub-sector

Offers access to a niche sector of the real estate market: designer outlets

Strategy

UK retail warehousing

AUM

$1.7bn

Location

UK

Sub-sector

Offers access to an established geographically diverse portfolio of prime retail warehouse assets

Strategy

UK shopping centres

AUM

$1.2bn

Location

UK

Sub-sector

Offers access to prime, dominant shopping centres in major UK cities

Strategy

US super-regional malls

AUM

$1.5bn target capital raise

Location

US

Sub-sector

Offers access to prime, dominant super-regional malls in major US cities

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Why invest in retail? Investment in good quality retail assets, in mature economies, can provide investors with some of the best risk-adjusted returns globally, with access to excellent covenants. In growth economies, the sector will continue to benefit from structural evolution and a long-term lowering of its risk profile. The last downturn aside, the retail market has proved less volatile than offices and acts as a good diversifier, complementing highly cyclical office markets. Office markets tend to be closely correlated with each other and so investors gain little from geographical diversification. Retail markets remain much more national in nature and influenced by local market factors, rather than global economic conditions. A geographically diversified retail portfolio will, therefore, likely offer reduced volatility of returns.

Top 10 country rankings 2014 - Percentage of retailers present by country

Rank: #1 United Kingdom 57.5%

Rank: #2 United Arab Emirates 54.5%

Rank: #3 China 52.4%

Rank: #4 United States 51.2%

Rank: #5 Germany 49.1%

Rank: #6 France 58.2%

Rank: #7 Spain 48.2%

Rank: #8 Russia 67.7%

Rank: #9 Hong Kong 44.6%

Rank: #10 Singapore 43.1%

Source: CBRE Research, 2014

Why now?

What about the longer term?

Getting it right?

What about the internet?

While investment in retail property is not as time sensitive as for offices, the sector is attracting interest from a widening range of international investors, favouring retail for its long-term, defensive qualities and asset management potential, placing continued pressure on pricing for the best assets. This is supported by improvements in both consumer and retailer sentiment, and a recovery – albeit modest – in the occupational market. Investors still have the opportunity to capture the full rental recovery cycle in many markets.

Longer term, globalisation of retailing will support the case for investment in the sector with the international occupier base becoming more homogeneous and covenants improving worldwide. In particular, globalisation will open up new retail investment markets. Some of the fastest growing retail markets – notably emerging Asia and South America - have yet to be exploited by international retailers or investors.

There are some retail investment themes that apply irrespective of geography. Dominant, prime assets tend to have low leasing risk, low market risk, low vacancies and better tenant covenants across all markets. Larger investments provide greater scope for asset management, and mature assets also offer the potential for redevelopments and repositioning.

Technology is having a dramatic impact on shopper behaviour and is rapidly reshaping the retail hierarchy. In developed retail economies, this means that we need fewer traditional stores and some trading locations could cease to be viable – certainly from an investment perspective, exacerbating the polarisation that already exists across global retail markets.

9,000

6,000

3,000

China

Spain

Portugal

Italy

Singapore

Germany

France

Sweden

Australia

Austria

United Kingdom

Japan

0

Canada

Retail

Research shows that, historically, larger lot sizes, or at least those that dominate their catchment area, have outperformed in terms of rental growth. Larger schemes have also produced lower volatility of overall returns. With consumers, retailers and investors increasingly favouring larger assets, we believe that larger lot sizes will continue to outperform and prove more defensive, especially in light of the shift to multi-channel retailing. Larger retail portfolios would be expected to enjoy lower volatility of returns through diversification, in addition to superior performance through the ability to pick stock from a bigger pool of opportunity.

12,000

United States

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Smart investors should look to complement low-risk investments in established retail economies with investments in emerging markets, where structural evolution will see a long-term growth in demand or lowering of equilibrium yields. They should, of course, be mindful of the heightened risk in such markets. Understanding the regulatory conditions, planning legislation, environmental concerns, local cultures and availability of capital, will be key to identifying the most promising emerging retail markets for investment. Early movers in those markets where these conditions are favourable should be rewarded accordingly.

We believe that the ongoing diversion of sales to the internet will see a greater proportion of retail sales being channelled through fewer locations. This is a trend you would expect to see as a retail market matures, even without the presence of the internet, but e-commerce will just serve to accelerate this trend. As retailers rationalise their store portfolios, a large amount of spend will be captured by the internet, but there is also the opportunity for those locations with critical mass to increase the penetration of their wider catchment areas, ultimately generating greater sales densities and, crucially for landlords, improving rent affordability.

15,000

Hong Kong

With occupiers and consumers increasingly focussing their attention on the top tier retail locations, investors need to be equally selective and the pool of assets with long-term potential is arguably shrinking. Opportunities to access the best retail assets in mature economies are rare, and so investors need to be ready to act promptly when opportunities arise.

Many of the megatrends that will have a big impact on demand for global real estate, i.e. the rising middle-class, urbanisation, youth explosion and the shift of economic power from the west to the east, will have a major impact on consumer behaviour and shopping patterns, creating strong and persistent demand for retailing in many geographies.

Expansionist retailers will pay keenly to secure space in gateway cities and highprofile shopping centres - those that are able to generate high levels of pedestrian traffic – making the shopping experience more compelling, driving sales densities and ultimately rents. Conversely, locations that lack critical mass or a distinctive offer will suffer from weak demand and risk to income stream. Their demise will allow dominant retail venues to improve their market share.

2014 retail sales per capita (f)

Key Retail sales per capita ($ purchasing power parity (PPP)) Source: Oxford Economics, 2015

The growth in multi-channel retailing is generating new retail formats that investors need to incorporate into their assets, and those that embrace the digital future should thrive. Investors should continue to target prime, dominant assets for superior long-term outperformance, but need to be prepared to work their assets in response to a rapidly changing occupier market.

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Our retail portfolio

Europe +180 assets Americas +100 assets

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Asia-Pacific 5 assets

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A selection of our assets: Shopping centres

Erlangen Arcaden • Located in Erlangen, Germany

Whitefriars Shopping Centre • Located in Canterbury, UK • 592,000 sq ft (55,000 sq m)

• 347,000 sq ft (32,200 sq m) • 105 units • Acquired in 2006

• 75 units

• Key tenants include Saturn, DM Drogerie, H&M, New Yorker, Esprit, Adidas Neo, G-Star and Thalia

• Acquired in 2007

• 660 car parking spaces

• Key tenants include Fenwick, Marks & Spencer and Primark

• Owned by TIAA-CREF German Shopping Centre JV

• 530 car parking spaces • Owned by our UK Shopping Centre Fund and Canadian Pension Plan Investment Board

Montgomery Mall, Bethesda, US • Located in Bethesda, MD, US • 1.4m sq ft (121,000 sq m) • 226 units • Acquired in 2011 • Key tenants include Nordstrom, Macy’s and Sears • 5,800 car parking spaces • Operated by Westfield • Owned by TIAA-CREF Super-Regional Mall Venture and Westfield

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A selection of our assets: Retail warehouse parks

The Fort Shopping Park • Located in Manchester, UK

Serravalle Retail Park • Located in Serravalle Scrivia, Italy • 298,000 sq ft (27,655 sq m)

• 325,000 sq ft (30,200 sq m) • 36 units • Acquired in 2009

• Acquired in 2007

• Key tenants include B&Q, Boots, H&M, Next, Nike, M&S Simply Food and TK Maxx

• 19 units

• 1,325 car parking spaces

• 850 car parking spaces

• Owned by UK Retail Warehouse Fund

• Key tenants include Decathlon, Unieuro, SELF, Pittarello Swarovski, and Mondo Convenienza • Owned by our European Retail Property Fund (Herald)

Norder Tor • Located in Norden, Germany • 136,000 sq ft (12,621 sq m) • 24 units • Acquired in 2013 • Key tenants include Kaufland and ALDI • 408 car parking spaces • Owned by German Retail Income Fund

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A selection of our assets: Outlet malls

Florentia Village Jingjin • Located in Wuqing, China

McArthurGlen Designer Outlet Serravalle • Located in Serravalle Scrivia, Italy • 419,000 sq ft (38,960 sq m) • 185 units • Acquired in 2004 • Key tenants include Prada, Burberry, Michael Kors, Moncler and Armani

• 775,000 sq ft ( 71,978 sq m) • 211 units • Acquired in 2013 • Key tenants include Prada, Coach, Gucci, Burberry, Bottega Veneta and Salvatore Ferragamo • 3,313 car parking spaces • RDM Asia partnership • Owned by Silk Road Holdings

• 3,500 car parking spaces • McArthurGlen partnership • Owned by our European Outlet Mall Fund

Factory Krakow, Krakow • Located in Krakow, Poland • 440,000 sq ft (40,580 sq m) • 104 units • Acquired in 2015 • Key tenants include Nike, Tommy Hilfiger, Levi’s, Mango, Alma, SMYK and Adidas • 1,378 car parking spaces • NEINVER partnership • Owned by TIAA-CREF

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A selection of our assets: High street

Monheimer Tor • Located in Monheim, Germany

Mariahilfer Straße 37-39 • Located in Vienna, Austria • 65,000 sq ft (6,017 sq m) • Acquired in 2014 • Tenant is Humanic • Owned by our Österreich Fonds Nr. 2

• 103,000 sq ft (9,596 sq m) • 13 units • Acquired in 2012 • Key tenants include EDEKA and Woolworths • 200 car parking spaces • Owned by our German Retail Income Fund

36-48 Argyle Street • Located in Glasgow, UK • 87,000 sq ft (8,047 sq m) • Acquired in 2014 • Tenant is TK Maxx • Managed on behalf of Warburg-HIH Invest Real Estate GmbH

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Development pipeline Retail assets require periodic upgrades and refurbishments and these are often combined with extensions. We benefit from having an in-house development team with significant experience, ranging from major redevelopments in Edinburgh to tenant engineering projects in Spain.

Edinburgh St James, Edinburgh, UK A world-class example of city-enhancing place making, Edinburgh St James is one of the UK’s largest and most significant regeneration projects, which we are proud to be the developers of. With an estimated value of over $1.4bn, the development, which is one of the assets within our UK Shopping Centre Fund, will create 1 million sq ft (c.93,000 sq m) of high-quality retail space, a luxury hotel and up to 250 new homes. A landmark development within a celebrated European city, Edinburgh St James provides a unique opportunity to create a place where shoppers, residents and visitors can indulge and relax. In April 2014, an innovative funding agreement between the City of Edinburgh Council, Scottish Government and TH Real Estate was agreed, providing c.$92m to improve local infrastructure and public space in the area. We plan to start construction in 2016, with completion due in 2020.

Serravalle Designer Outlet, Italy Our European Outlet Mall Fund and development teams are working closely with McArthurGlen to extend this outlet by 135,000 sq ft (12,500 sq m), adding 70 new stores. With plans to open in Autumn 2016, the c.$130m development will build on the centre’s position as the largest designer outlet in Europe, and is home to the most sought-after names in luxury, designer and lifestyle fashion.

Florentia Village Guangzhou, China On behalf of the Silk Road Holdings joint venture, we are developing Florentia Village Guangzhou. The project is making excellent construction progress, with on-track construction completion followed by an opening of Phase 1, comprising 123 stores, set for H2 2015. Leasing is progressing well. Two further sites have recently been acquired in 2015, located in Chengdu and Wuhan. Planning and design is underway with construction anticipated to begin on both sites in late 2015, securing the Florentia Village development pipeline until the end of 2016.

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Case studies Our ‘hands on‘ approach to asset management, development and investment activity is evident in our strong performance track record. Shopping Cité, Baden-Baden

Soaking up the sun

The Shopping Cité opened in 2006 and was acquired by the Herald Fund in 2007. This modern and distinctive retail asset brings a unique supply of retailers to the region. The shopping centre has 264,000 sq ft (24,500 sq m) of lettable space, with anchor tenants including Edeka, Media Markt and H&M. There has been a continual increase in the number of visitors and rental income, as well as an average rise in turnover of 5-7% per annum since its acquisition. We have successfully upgraded the tenant mix through a selective exchange over the years, leading to the asset being fullylet. The asset has a strong sustainability policy and hosts an annual Energy Day.

Following the successful installation of PV panels on two industrial assets, we have installed solar PV panels on two of our retail assets, helping to future-proof the assets against energy price rises and supply shortages. At our Whitefriars Shopping Centre in Canterbury, UK, we are now generating almost 100,000 kWh electricity each year, saving 54 tonnes of CO2, reducing the energy cost for the service charge and generating a stable income stream. We have also installed solar PV and solar thermal panels at our McArthurGlen Designer Outlet Castel Romano in Italy.

475 Fifth Avenue, New York, US

Parisis Park, Franconville, France

TIAA-CREF acquired 475 Fifth Avenue in 2011, and embarked on an ambitious plan to fully modernise and reposition the asset. The project included ground-level retail renovation, increasing the retail offering by 10,213 sq ft (950 sq m). The ground floor and concourse level was re-tenanted with a line-up of two global flagship stores from rapidly expanding international chains. As a result of the building renovation and infrastructure replacement, 475 Fifth Avenue achieved a LEED Silver certification demonstrating our commitment to developing and managing an energy efficient environments.

Our pan-European retail fund, Herald, sold Parisis Park for c.$55m in 2013. Parisis Park is part of La Patte d’Oie, one of the most established and best performing out-of-town retail zones in the Greater Paris area. The asset is strategically located, close to major retailers IKEA, E.Leclerc hypermarket and the Quai de Marques shopping outlet. It comprises two modern buildings with a total lettable area of 96,000 sq ft (8,892 sq m) and is leased to well-known retail chains C&A, Sports & Loisirs, Armand Thiery and Cultura. Since acquiring the asset in 2007, the Fund delivered rental growth in excess of 5% per annum over the hold period. During this time, asset management initiatives included obtaining planning approval, pre-leasing and developing a 10,760 sq ft (1,000 sq m) unit for Armand Thiery.

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McArthurGlen Designer Outlet Castel Romano, Italy In 2013, our Outlet Mall Fund opened its third phase at McArthurGlen Designer Outlet Castel Romano in Italy. The 80,730 sq ft (7,500 sq m) expansion created space for a further 43 stores, adding to an extensive list of luxury brands such as Michael Kors, Furla and a flagship Burberry store. The Fund acquired the asset in 2005. The latest phase comes after two previous extensions following the asset’s creation in 2003. It is now one of the largest designer outlets in Italy with 160 stores and 323,000 sq ft (30,000 sq m) of retail space. Managed and developed by McArthurGlen, the designer outlet can be reached within 20 minutes from the centre of Rome. It has become increasingly popular with brand-conscious shopping tourists due to tax-free sales, with Russian and Chinese consumers providing particularly high footfall and spending. As part of our Responsible Property Investment program, we have installed solar thermal and photo voltaic panels to reduce the demand on electricity from the grid, and improve the environmental performance of the centre.

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Ala Moana Center, Honolulu, Hawaii, US In April 2015, TIAA-CREF acquired a 12.5% stake in the Ala Moana Center in Honolulu, Hawaii. Having generated almost $1.3bn of total sales during 2014, the asset is one of the largest and most productive shopping malls in the world. The property is comprised of approximately 2.2 million sq ft (c.204,000 sq m) of retail and office space and is undergoing a major redevelopment. Upon completion, an additional 660,000 sq ft (c.61,000 sq m) of retail space will be anchored by Bloomingdale’s first store in Hawaii, and Nordstrom, which is currently relocating within the centre. Ala Moana Center also features Neiman Marcus, Macy’s and more than 280 first-class tenants including Apple, Cartier, Chanel, Ben Bridge, Bottega Veneta, Harry Winston, Hermes, Louis Vuitton, Miu Miu, Prada and Tiffany.

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Primark lettings Primark has recently committed to two of our shopping centres: Whitefriars Shopping Centre in Canterbury, UK and Miramar Shopping Centre in Malaga, Spain. In Canterbury, the retailer opened a 40,400 sq ft (c.3,750 sq m), three-level store in June 2014. It joins Marks & Spencer and Fenwick as the third anchor store at Whitefriars, a shopping centre acquired by our UK Shopping Centre Fund and the Canada Pension Plan Investment Board in 2007. Primark has also committed to a c.4,000 sq m space at the Miramar Shopping Centre in Malaga, Spain. Since purchasing the asset, our pan-European retail fund, Herald, and its Spanish partner, Grupo Myramar, have invested almost $17m into major improvements. The placement of such a well-known brand is a milestone in the centre’s repositioning strategy. Our international retail network allows us to leverage opportunities such as these, introducing tenants into a diverse range of assets across our portfolio.

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Contact us [email protected] threalestate.com @THRealEstate14 Follow us on Twitter:

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EUROPE WAS THE HIGHEST SPENDING REGION ON COMMUNICATION GOODS AND SERVICES IN 2010, BUT WHICH REGION WILL SURPASS IT IN 2030?

ASIA, WITH SPENDING ON COMMUNICATION GOODS AND SERVICES INCREASING BY 3.7 TIMES TO OVER $1.5TN BY 2030.

We have the answers. TH Real Estate delivers unique investment solutions today, by focusing on the structural trends that will shape real estate tomorrow. We are in touch with Tomorrow’s World. threalestate.com/tomorrows-world Source: Oxford Economics, 2014. All information as at 30 June 2015 and sourced from TH Real Estate unless otherwise stated. Past performance is no guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. Any investment will be made solely on the basis of the information contained in the Prospectus or offering documents (including all relevant covering documents), which will contain investment restrictions, risks and fees. This document is intended as a summary only and potential investors must read the Prospectus or other relevant offering document before investing. This document is not directed at or intended for any person (or entity) who is citizen or resident of (or located or established in) any jurisdiction where its use would be contrary to applicable law or regulation [or would subject the issuing companies or products to any registration or licencing requirements]. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Issued by Henderson Real Estate Asset Management Limited (reg. no. 2137726), (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3BN) which is authorised and regulated by the Financial Conduct Authority to provide investment products and services. Telephone calls may be recorded and monitored. COMP201500224. TIAA Henderson Real Estate Limited (TH Real Estate) is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or TIAA-CREF Alternatives Advisors, LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Teachers Personal Investors Services, Inc., member FINRA. The information presented herein is confidential and proprietary to TIAA-CREF Asset Management. This material is approved for one-on-one presentations by authorized individuals only and, accordingly, this material is not to be reproduced in whole or in part or used for any purpose except as authorized by TIAA-CREF Asset Management. This material is to be treated strictly as confidential and not disclosed directly or indirectly to any party other than the recipient. This material is not approved for public use or distribution. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. This material is intended exclusively for investors who are “qualified purchasers” as defined in the Investment Company Act of 1940. Real estate investments are subject to various risks, including fluctuations in property values, higher expenses or lower income than expected, and potential environmental problems and liability. Please consider all risks carefully prior to investing in any particular strategy. The portfolio’s concentration in the real estate sector makes it subject to greater risk and volatility than other portfolios that are more diversified and its value may be substantially affected by economic events in the real estate industry. For institutional investor use only. Not for use with or distribution to the public. C26206 Brochure designed by Saentys +44 (0)20 7407 8717 | www.saentys.com I [email protected]

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