Odense 1

Residential waterfront development in the Odense Harbour, third largest city in Denmark with c.200,000 inhabitants. The building site is approximately 42,100 sqm and is to be developed as 484 residential units in 16 buildings. Joint-venture with Danish developers Allan Wind and Claes Stougaard (“W&S”).

BBGP is investing in one of the most attractive residential locations in Odense with the prospect to build high quality units. In recent years, the market for housing in large Danish towns and cities has been fuelled by several factors such as an increasing urbanisation trend, flexible mortgage financing, high income levels, low unemployment and historically low interest rates. At Funen, which records one of the highest personal income levels outside greate Copenhagen, Odense serves as the regional capital and is the preferred place to work and shop.

Visit Odense web site: www.promenadebyen.dk

Odense 2

Follow-on residential development in the Odense Harbour on a site adjoining BBGP’s first Odense 1 project (see Odense 1). This second site comprises 11,000 sqm of developable area. Joint-venture with Danish developers Allan Wind and Claes Stougaard (“W&S”).

BBGP is investing in one of the most attractive residential locations in Odense with the prospect to build high quality units. In recent years, the market for housing in large Danish towns and cities has been fuelled by several factors such as an increasing urbanisation trend, flexible mortgage financing, high income levels, low unemployment and historically low interest rates. At Funen, which records one of the highest personal income levels outside greate Copenhagen, Odense serves as the regional capital and is the preferred place to work and shop.

Visit Odense web site: www.ohu.dk

Serifali

Residential development of 201 units in three apartment blocks in the well located and “up and coming” Serifali district of Istanbul. The units are aimed at mid-market professional buyers and will have a size of up to 140 sqm consisting of one, two or three bedrooms, a living room, kitchen and bathroom. Joint-venture with Urban Exposure, Askar Capital and a Turkish contractor and co-developer, Bolelli Group.

BBGP identified Serifali as a high-end investment in a prime location i.e. in the middle of a dense residential area which has been experiencing considerable development activity with a strong and a good opportunity to highly recognised local partner.

Malocice

Residential development of 31 hectares parcel of land located 16 kilometres north of Warsaw bordering Nature Reserve of Kampinos Park. Joint-venture with Austrian developer UBM.

BBGP identified the site as a prime location between Warsaw and the military airport of Moldin (which is due for conversion into a civilian airport in the next two years) and the ideal opportunity to capitalise on the strong dynamics driving the Warsaw residential sector.

Buffalo

Land development project in the suburbs of Bucharest (Romania). The target land is located in Buftea, 20km north of Bucharest.

Bucharest and its suburbs suffer from a lack of land available for residential development. Demand for land is fuelled by an increasing purchasing power, urban growth and a “post-communist catch-up” backlog for country side space. At the same time supply is slowed down by historic land reform obstacles and the fact that Romanian banks will not leverage locals in land banking transactions. This combination is expected to keep the current demand / supply gap wide and continue to drive prices of suburban land up.

Golfland

Land development project in the suburbs of Bucharest (Romania). The target land is located in Petrãchioaia, 30km north of Bucharest. Joint-venture with EuroResidence, a leading Romanian real estate investment company.

Bucharest and its suburbs suffer from a lack of land available for residential development. Demand for land is fuelled by an increasing purchasing power, urban growth and a “post-communist catch-up” backlog for country side space. At the same time supply is slowed down by historic land reform obstacles and the fact that Romanian banks will not leverage locals in land banking transactions. This combination is expected to keep the current demand / supply gap wide and continue to drive prices of suburban land up.

Index Estate

Real estate investment in Hornsberg (Greater Stockholm Area, Sweden). The investment includes existing income producing office buildings and a residential development. Joint-venture with Swedish development company Index Estate Property Partners (“IEPP”).

Kungsholmen, the island on which the project is located, is experiencing one of the greatest changes in the inner city of Stockholm. Over the next 6-8 years, there will be large investments with planned expansion with 5,000 tenant-owned apartments and 150,0000 sqm of commercial premises. The Index Estate site has a very attractive waterfront location and enjoys good connections to main roads.

Three Villas

Re-development of three villas in the French Riviera region (South of France).

BBGP identified the property in a prime location where the percentage of residential pre-sales are about 95-100% and where there is strong and continuous demand from wealthy people from around the world.

ResCo

Residential developments in Lithuania. Joint-venture with Lithuanian company Žabolis & Partners, and two entrepreneurs (Arturas Rakauskas and Petri Karjalainen).

The Baltic’s residential markets are driven by very strong positive fundamentals factors such as i) the poor quality of existing housing stock; ii) a high real wage growth which is currently c.10% pa; iii) social trends ie a younger population with a larger proportion of single individuals living alone; iv) increasing urbanisation; and finally v) an increasing mortgage loan liquidity and relatively low household gearing compared with the rest of the European Union.

Spacemaker

UK-based self-storage provider. The portfolio consists of 10 self-storage portfolio centres located predominantly in South-east England.

The level of penetration of self-storage centres in the UK lags other developed countries: The UK has 0.4 square feet (“sq ft”) of self storage per capital, which compares to 7.0sq ft in the US and 1.2 sq ft in Australia. Spacemaker plans to benefit from this low-level of penetration as it expands its portfolio of centres significantly in the medium term.

Visit the Spacemaker web site: www.spacemaker.co.uk

Flexspace

UK-based managed workspace business, including 14 properties. FlexSpace provides small units on short-term leases and flexible terms to mainly small and medium enterprises (“SME”). Joint-venture with Safeland and Electra Partners.

Babcock & Brown believes that the managed workspaces sector is a niche property class, which offers attractive economics for owners who possess the asset management skills and are selective in their property acquisitions. Safeland, who will be responsible for the acquisition program and management of the portfolio, has a successful track record in the sector through its previous involvement in a similar managed workspace business, Bizspace.

Visit Flexspace web site: www.flexspace.co.uk