JOINT VENTURES AN IMPORTANT PART OF OUR BUSINESS STRATEGY EXISTING - PowerPoint PPT Presentation

JOINT VENTURES AN IMPORTANT PART OF OUR BUSINESS STRATEGY

EXISTING JOINT VENTURE PARTNERS Current projects, no. of apartments LIB LIBU In U Inves vest STUDENT HILL Tellus Towers The Lab Turbinhallen Elverket i Nacka The Loft 1,200 266 205 393 120 Järla Station West Side Solna Bromma Square Tentafabriken 312 252 350 72 Metronomen 188 Building rights Financial

JOINT VENTURE RATIONALE Financing Profits Ownership Risk

Partners Group Real Estate Overview SSM Capital Markets Day – 15 November 2017 Dr. Marc Wicki Co-Head Structuring Services | Lars Kreutzmann Private Real Estate Europe For use with institutions only – not for use in the United States

PARTNERS GROUP REAL ESTATE OVERVIEW 5 Table of contents 1 Partners Group 2 Investment approach

PARTNERS GROUP 3 Global private markets investment management Private markets focus Strong resources Independent Stable & transparent EUR 57.8 billion 1 AuM in private equity, private Over 1,000 employees 2 Combined, employees are the largest Long-term incentive structures representing approximately 50 nationalities Listed on the SIX Swiss debt, private real estate, private infrastructure shareholder across 19 offices Exchange 3 Recognized as a global real estate platform with deep local market knowledge Past performance is not indicative of future results. PERE award rankings are based on an annual survey of industry participants and are independent from Partners Group. The number of participants in each category is unknown. The resulting awards are totally independent; there is no sponsorship and no panel judges. For more information about the awards and results, please see www.perenews.com. 1 AuM figure as of 30 June 2017, unaudited, inclusive of all Partners Group affiliates. 2 2 Team figures as of 30 September 2017. 3 Refers to Partners Group Holding AG.

4 PARTNERS GROUP Key corporate milestones Development of team size and AuM Team size AuM (EUR, bn) H1 2017 1999 2001 2006 1998 2003 2008 Over 1,000 First direct First Firm listed on First secondary First direct debt Signatory to the employees 2 equity infrastructure SIX Swiss investment investment UNPRI in 19 offices investment investment Exchange on 5 continents First real estate investment 1200 70 First mezzanine Manila 60 1000 investment Denver 3 Mumbai Houston 50 800 Paris Milan São Paulo AuM (EUR, bn) 40 Team size Dubai 600 Seoul Sydney Munich 30 Luxembourg Shanghai 1 400 Tokyo 20 Singapore London Guernsey 200 10 New York Zug 0 0 4 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H12017 1 Beijing relocated to Shanghai in January 2014. 2 2 Team figures as of 30 September 2017. 3 3 The firm has transferred its San Francisco-based business activities to its Denver office and closed its San Francisco office in Q3 2017. 4 4 Unaudited, inclusive of all Partners Group affiliates, AuM figure as of 30 June 2017.

PARTNERS GROUP 5 More than 1,000 institutional investors worldwide Public pension funds and SWFs Insurance companies Private pension funds Banks and distribution partners Clients listed include direct clients of Partners Group (USA) Inc., Partners Group AG or their affiliates, and investors in funds managed or advised by such parties. Clients listed were selected to demonstrate the breadth and types of clients served by Partners Group. Inclusion in the list does not indicate approval or disapproval by any of the clients of Partners Group or the services rendered by Partners Group to the relevant client. As of 30 June 2017.

PARTNERS GROUP REAL ESTATE OVERVIEW 9 Table of contents 1 Partners Group 2 Investment approach

INVESTMENT APPROACH 10 Global relative value approach to real estate investing We select regions and property types based on … We assess the regions and property types … … macro fundamentals in any point in time Example: Leasing cycles H1 2017 based on US Economic and population growth • Mezzanine financing (contraction) Develop core (expansion) San Francisco Liquidity in the market and institutional buyers • New York Boston Seattle Chicago Houston Consistent infrastructure expenditure Denver • Austin Houston Los Angeles Atlanta Dallas San Francisco Los Angeles Seattle Los Angeles Washington DC … long-term transformative forces … long-term transformative forces Dallas New York Boston Dallas Chicago Chicago Atlanta Los Angeles Washington DC Transformational growth (e-commerce) • Buy below replac. cost (recession) Buy, fix, sell (recovery) Structural growth (demographic shifts, urbanization) Office Retail Industrial Residential • Global economy and consumer (logistical needs) … throughout the economic cycle • Example: Office markets between 2012-2015 based on US … and strong real estate metrics Washington Houston Madrid Paris Singapore Seoul DC Positive top-down demand versus supply trends 2012 Recovery Recession Expansion Contraction Recession • 2013 Contraction Recession Solid projected operational performance Recession • Expansion Contraction 2014 Recovery Recovery Positive real estate risk premium Recovery • 2015 Contraction Expansion Recession Top-down regional and property type assessment to establish where we focus and what we underwrite F ill i l Th i h i il i ill b d

INVESTMENT APPROACH 11 Leveraging the Partners Group platform Global relative value Proprietary deal flow Am erica s Europe Asia- Pacific Advisors/Banks PG direct & AM team North- Mid- South- Latin Hong South Core Midwest West Canada UK Fra nce Germ any Nordics Southern Easte rn Japan Australia Singapore Korea China I ndia east Atlantic east Am erica Kong East Asia Value- adde d & North- Mid- South- Latin Hong South Midwest West Canada UK Fra nce Germ any Nordics Southern Easte rn Japan Australia Singapore Korea China I ndia 22% opportunistic east Atlantic east Am erica Kong East Asia Pre ferred Pre ferred Pre ferre d Capital structure Senior debt Mezzanine Equity Senior debt Mezzanine Equity Senior debt Mezzanine Equity Equity Equity Equity Secondaries I nflection assets Mature assets I nflection assets Mature assets I nflection assets Mature assets Prim aries Core Value- adde d Opportunistic Core Value- adde d Opportunistic Core Value- adde d Opportunistic Sourcing of Partners Group Real Estate PG primary team 56% 15% investments 7% PG secondary team Ability to execute Deep sector knowledge Fund administration Deal generation >60 professionals >250 professionals >60 real estate professionals Risk management Structuring & legal >10 professionals 50 professionals Partners Group office Operators - invested Operators - tier 1 & 2 relationships Direct equity exposure Other property investments Past performance is not indicative of future results. Images are for illustrative purposes only. Source: Partners Group (February 2017)