EFTA01077937

EFTA01077937 Contents 1. Great Ocean Group Overview 2. Airport City Development Model and Opportunities in China EFTA01077938 Great Ocean Group: Business Overview Founded in 1996, Great Ocean Group is a private holding company focused on three key business lines Landmark Mixed-use Projects Airport Cities GREAT OCEAN GROUP ,f 4 I NI is I r Luxury Sector Investments EFTA01077939 immunimmummumilitamirtit Great Ocean's Investments Performance Investments Performance and Company Highlights Forward- looking Effective •Founded in 1996; initial investment in residential development strategic Resource •1998: Invested in construction of Taihong Plaza, one of vision Management China's first companies to engage in urban complex Great development. Ocean •2002: Acquired major share in Ping An Insurance, sold Advantage in 2006/2007 •2004: established the Beijing Airport City project Sustained Efficient (ACLP) brought the ACLP into official operation in 2010. ability to Implementati In 2011, a majority stake of ACL was acquired by Global innovate on Capacity Logistics Properties Limited ("GLP") in 2011, valuing the entire equity interest of ACL at RMB4.67 billion •20O7: Strategic stake in BBMG Corporation, partially sold in 2012 •2010: Started the Genesis Project, to develop a high quality integrated urban complex EFTA01077940 Beijing Airport City Airport City Logistics Park (ACLP) • ACLP is strategically located north of the second runway of the Beijing Capital International Airport (BCIA), with a total site area of 3.3MN sqm. — The integration of the Air Cargo Terminals, the Express Center, the Import Custom Supervision Area and Export Cargo Consolidation Area, the Bonded Logistic Center, and the Office Complex provides a seamless logistical connectivity, significantly improving efficiency in the customs clearance process. - In addition to the ACLP, the Great Ocean Group led the planning and development of the Beijing Tianzhu Free Trade Zone, becoming the first airport-based free trade zone in China, extending the functionality of ACLP's air cargo bonded logistics services. Etth R,rg Rd 5th Ring Rd 3rd Ring Rd 2nd Ring Rd Dong Zhrnen Chang An Street Airport highway line2 Cep • Wald Trace Cale, SK Plaza • µe I I Stun Prig Eya.yas '735 Beijing Capital International Airport • The BelIng-Tarin Expresa • The ACLP officially went into operation on December 2010, providing a truly integrated and seamless aviation logistics platform. • A majority stake of ACL was acquired by Global Logistics Properties Limited ("GLP") in 2011, valuing the entire equity interest of ACL at RMB4.67 billion. 5 EFTA01077941 Great Ocean Group Initiated ACL project The First Airport City Project in the PRC • • Great Ocean Group reached a "5-common Agreement" with the Capital Airport Group and the Shunyi District Government to establish Airport City Development Co., Ltd. (ACL). ACL had RMBi.8 billion in initial capital, with total project investment set at RMBio billion, and Phase 1 investment over RMB 4 billion. ACL is the first of its kind in China initialing Public-Private Partnership between airport authority and local government, in airport facility and business development Great Ocean Group Joint Planning 6 unyi is ric Government I I Joint Investment api rpo Group (CAG) Joint Construction Joint Operation Gain Sharing Airport City Development Co., Ltd. (ACL) Development, Construction, Operations, and Management of the ACLP EFTA01077942 ACLP's 6 Functional Zones A "One-stop Logistics Platform" 1. Air Cargo Terminals: ist phase area- over 6o,000 m2 2. Express Center: 1st phase area- 53,735 m2 3. Customs Supervision Area: 1st phase area- 62,000 m2 4. Bonded Logistic Center: 1st phase area- 60,682 m2 5. Warehouse Zone 1st phase- 30,000 m2 6. Office Complex Total Area- 121,500 m2 Oki Crwell. Cam etteVaKe Ame •• cow %wawa • Great Ocean Group entered into a joint venture with the Capital Airport Group and the Shunyi District Government to establish the Airport City Development Co., Ltd. (ACL), responsible for the development, construction, and operation of ACLP • ACLP has been critical in establishing BCIA as a hub airport for Northeast Asia • ACLP is strategically located north of the second runway of the Beijing Capital International Airport (BCIA), with a total site area of 5062 mu (includes: Air Cargo Terminals, Express Center, Import Customs-, Supervision Area and Export Cargo Consolidation Area, Bonded Logistic Center, Office Complex) EFTA01077943 Comprehensive Advantages Airport City Development ElIF Obtain Support from Government, Airport Authorities, and Relevant Departments Promoting the Airport City concept Key Success Factors Planning and Desi AIDevelopment and Construction Alliances across industry value chain Efficient Coordination II L Comprehensive Planning Leadership Ability Effective Implementation J Shrewd Financial Management I M/1 Leasing/ Operation Deep understanding of L.._ aviation industry fostered by extensive experience Cooperation partners/ client resources in the aviation industry EFTA01077944 Efficient Execution and Development Capabilities Total investment of ACLP will be over RMB 14billion, of which over RMB 4 billion was spent in phase 1 development, including acquisition of 5000mu (800acres) of land and development of 400,000 m2 GFA Original Property After Development Office Complex Largo Terminals 9 EFTA01077945 Effective Go-to-Market and Operational Capabilities Ecosystem of Tenants: Over 180 companies now operate in the ACLP. ACLP has the experience and capabilities to recruit high-quality tenants into its facilities. RIR CHINK BGS DB SCHENKER DM Milan i Leektifs kekiaik)l ro• KerryEAS Logistics I"zZ 1-r• t 0 111_ I I., Esib MAI 039kitn. Express AriS Kyuan 4M. Sinopharm Chemical Reagent Beijing Co. , Ltd 4,m tt ip St a' EFTA01077946 Achieving Results: ACLP Project • The ACLP went into operation at the end of 2010. Approximately 53.14% equity interest of ACL was acquired by Global Logistics Properties Limited ("GLP") in 2011 at RMB2.48billion, valuing the entire equity interest of ACL at RMB • Following 2 years of operations, the project entered into the mature stage with total occupancy rates reaching 90%. The second stage of development has now been initiated and the construction of a new 130,00o m2 warehouse zone is underway. • Tenants report greater efficiency at customs clearance, signaling the positive gains of the ACLP LI Functional Area A Total Area (m2) Rental (RMB/m2/day) 2012 Rental II (000 RMB) Air Cargo Terminal 62,854 3.3 70,000 Express Center 46,971 3.3 34,000 Bonded Logistic Center 62,557 1.5 32,000 Import Custom Supervision Area and Export Cargo Consolidation Area 62,100 2.9 55,000 Warehouse (Half Year) 40,000 1.3 10.000 Office Complex 40,000 3.0 30,000 Total 314,482 / 231,000 EFTA01077947 Contents 1. Great Ocean Group Overview 2. Airport City Development Model and Opportunities EFTA01077948 Airport Cities: Bringing Cities into the 21st Century A new model of urban development that raises city competitiveness Urban functions such as convention, exhibition centers, entertainment spaces, residential areas Aviation-related servicing and manufacturing industries Air cargo and logistics as supporting industries ndustries servicing core functions of Tonal hub airports Early Definition • Airport cities rely on the attractiveness of major hub airports to provide regional development and urban functionality at a certain stage of economic development. • Airport cities are an engine of local economic growth: they drive the integration and upgrading of nearby industrial chains, improve the efficiency and functionality of airport facilities, and maximize the value of surrounding property. Airports will shape business location and urban development in the 21st century as much as highways did in the loth century, railroads in the 19th and seaports in the 18th - Dr. John Kasarda (world leading expert in Airport Cities) Source: Roland Berger Strategy Consultants EFTA01077949 Global Airport City Development Several international hubs have been at the forefront of development. The beginnings of these Airport Cities catalyzed a wave of economic opportunities, creating jobs, generating taxes, and eventually building an ecosystem that raised the prestige and competitiveness of the city. Amsterdani— / • . • Overall, airport city development has only taken off in the last 20 years, with major international hubs taking the lead • The multi-functional upgrades and diversification of these international airports have become a focal point of local economic development • Airport cities have a diverse array of functions, including: commercial and office complexes, conference centers, warehouses, bonded zones, service and operation centers, hotels, golf courses, and other large scale commercial and entertainment facilities. EFTA01077950 Forecasts: Aviation Industry China will Become the World's Largest Aviation Market • Boeing estimates that in the next 20 years, the global air traffic will increase by average of 5%. China will maintain its leading growth position in the world, with a projected 6.9% increase in domestic air traffic volume. • Within the next lo years, China will become the largest aviation market in the world. Stable economic growth, further deregulation of the aviation industry are key factors for the rapid development of China's cargo 15 Forecast Indicators: Annual traffic growth (%) Middle East - Asia Pacific With n China Within Asia Pacific incl. China 7.2°A, 6.9% 7% 6 Within Asia Pacific excl. China 6.5% Wlthii Latin America 6.5% Europe -Asia Pacific IN=L 5.7% North America - Latin America 5.1% Transpacific .8% Within/to CIS .8% Mica - arope 4.8% Europe - Latin America North Atlantic 3.8% Within Europe 3.5% Within North America 2.2% World average, 5/0 Source: Boeing, Cargo Market Outlook 2012 EFTA01077951 Domestic Airport Development Government shows a serious commitment to investing in airports Planning and outlay of China's civil airports (Excluding Hong Kong, Macau, and Taipei) Targets Description Units New airports added in 12th 5-year plan 82 Existing airports planned to be upgraded 101 • According to the report "China Civil Aviation Development 12th Five-year Plan" issued in April 2011 by the Civil Aviation Administration of China, China made plans to construct approximately 8o additional airports and upgrade about loo existing ones, bringing the total number of airports to 230 or more nationwide by 2015. • Mainland China currently has 183 airports EFTA01077952 Promising Markets for Airport Cities Top Airports in China to target for Airport City Development An airport's passenger and cargo throughput is an important indicator to assess the potential for airport city development. 15 Largest Airports by 15 Largest Airports by Cargo Passenger Volume in 2012 Volume in 2012 (10,000 tons) (io,000 pax) 350 300 250 200 150 100 SO 0 ism • • 4 40 0, (3.) 6, b.) 6.) e be. e .ss .i$s e < e • a ca, e • .cz• ,§‘ 1' <So 4,4, se , (5, 5ca Source: (2012KktfLikAk*R4V2f) EFTA01077953 Great Ocan Group 29F, SK Tower, No.6 Jianguomenwai Avenue Chaoyang pistrict, Beijing 100022 China. 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