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Real Estate Services Central and Southeast Europe

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EY Real Estate Advisory Services ............................01EY worldwide ...........................................................02EY in Central and Southeast Europe (CSE) ................04Strategic advisory ...................................................06Capital markets, real estate M&A and fundraising .....07 Valuation services ...................................................08Hotel & hospitality services .....................................09 Tax, audit and legal services ....................................10 Contacts .................................................................11

Real Estate Services Central and Southeast Europe | 01

EY Real Estate Advisory Services is an international real estate

consultancy organization. The scope of our services is tailored to the

needs of each client, whether from the private or public sector. Drawing

on the experience of an international group of professionals gives

us a broader perspective on the issues that real estate companies,

investors, banks, developers and corporates face. Our Real Estate

Advisory Services cover all real estate segments, including retail, offices,

industrial, logistics, hotels, health care and development projects across

Central and Southeast Europe (CSE). The EY Real Estate Advisory

Services teams have a strong track record and experience in:

• Valuations and advisory • Tenant representation

• Feasibility studies • Asset management

• Commercial due diligence • Cost consultancy

• Capital markets – acquisitions and disposals

• Operator selection (hospitality and health care property)

• Transaction advisory • Government or municipality property

• Equity and debt advisory • Legal advisory

EY Real Estate Advisory Services combines an unrivaled knowledge in core business industries and real estate experience. In addition to real estate, EY advises the following industries:

• Financial services • Retail and consumer products

• Power and utilities • Automotive and industry services

• Government and public sector • Private equity

EY combines its knowledge of corporate and fund strategies along with dedicated real estate experience to provide a fully encompassing value-added real estate service.

This makes it possible for us to correlate the wider corporate or fund strategy to the real estate level and map out a pinpoint analysis strategy.

Our innovative approach facilitates a credibility and accuracy of your business decisions, risk assessments, valuations and financial statements.

We can support and assist you in the following

areas:

Strategic advisory services

Capital markets and fundraising

Valuations

Tax

Audit

EY consultants are established real estate professionals and many are members of the Royal Institution of Chartered Surveyors.

EY Real Estate Advisory Services

02 | Real Estate Services Central and Southeast Europe

worldwideEY


worldwide

The know-how to succeed

More than

700 offices in 150 countries

More than

230,000

professionals

More than

15,000real estateprofessionals

Every day, EY professionals face the most complex business problems. Our goal is simple, regardless of the project at hand, and that is to provide innovativeand practical services that can help our clients reach their goals. Managers around the world value our commitment to deliver Exceptional Client Service.

Each year, EY occupies leading positions in employer rankings. We recognize the fact that we need to give our best in order to attract motivated people with the best knowledge and experience.

Each year, EY occupies leading positions in employer rankings.


EYin Central and Southeast Europe


22 countries in the CSE region

The know-how to succeed

Extensive experience of providing real estate advisory projects in the

CSE region

Professional qualifications RICSACCACFA

EY is a leader in assurance, tax, transaction and advisory services across Central Southeast Europe. The insights and quality services we provide help build trust and confidence in the capital markets and in economies the world over. Our team’s real estate coverage spreads across the Czech Republic, Poland, Slovakia, Hungary, Romania, Serbia, Slovenia, Turkey, Montenegro and Cyprus. Our outstanding real estate leaders team delivers on promises given to all of our clients. In this way, we play a critical role in building a better working world for our people, for our clients and for our communities.

The individual team members across the CSE region offer a unique combined approach and knowledge in every service line across the variety of real estate subclasses, such as hospitality, health care, office, retail and industrial. The EY CSE region Real Estate Group offers tailor-made financial and commercial approaches which support creating competitive advantage for our clients.


Strategic advisory

Location consultancy and tenant relocation services

• Advising on acquisition, disposition and renegotiation of leases

• Improving the real estate aspects of business operations

• Help achieving lower costs and taking fully informed decisions

• Advise on construction and technical matters

• Securing a strong negotiation position and protecting your interests

• Space planning and fit-outs design according to latest trends

• Securing legal and tax consultancy

Optimization and restructuring

• Assistance with restructuring of real estate portfolios

• Asset-level optimization and repositioning advisory

• Development of target-oriented real estate strategies for public and private sector portfolio owners as well as real estate funds

• Optimization of real estate portfolios

• Market entry strategies

• Analysis, selection and appraisal of high-profile individual properties, portfolios or project developments

• Business, financial and investment plans

• Conceptualization of real estate investment products (e.g., special funds, fund of funds)

• Real estate portfolio management models and processes

• Improvement of real estate management processes (internal optimization and outsourcing)

• Cost inefficiencies rent and service charge reviews

• Exit strategies

Development process implementation Nonperforming loans (sell-side and buy-side)

• Advising on processes for development of real estate assets

• Advising on site acquisitions, highest best use analyses, business plans and development strategies

• Planning, integrating results of other consultant groups, fund raising, risk identification and advising on the optimization of operational structure

• Planning, advising on and support of the transaction process

• Structuring of data rooms, capturing and analysis of all relevant information pertaining to loan commitments and collaterals

• Execution of desktop and drive-by value indications or full appraisal of a portfolio or a sample

The continued intensification of competition and permanent shifts in market conditions require companies and private and public sector institutions to be more efficient in their actions. A clearly defined corporate strategy and accordingly aligned organizational and procedural structures form the basic components of professional, target-oriented corporate and public real estate management.

EY provides a wide range of advisory services for real estate professionals, but also advises non-real estate companies in order to help them optimize their business from the real estate perspective. We support you through targeted analyses of your corporate organization and support aligning your real estate strategy with your corporate strategy.

EY provides advice to real estate professionals, but also advises all other companies on real estate matters.


Location consultancy and tenant relocation services

• Advising on acquisition, disposition and renegotiation of leases

• Improving the real estate aspects of business operations

• Help achieving lower costs and taking fully informed decisions

• Advise on construction and technical matters

• Securing a strong negotiation position and protecting your interests

• Space planning and fit-outs design according to latest trends

• Securing legal and tax consultancy

Optimization and restructuring

• Assistance with restructuring of real estate portfolios

• Asset-level optimization and repositioning advisory

• Development of target-oriented real estate strategies for public and private sector portfolio owners as well as real estate funds

• Optimization of real estate portfolios

• Market entry strategies

• Analysis, selection and appraisal of high-profile individual properties, portfolios or project developments

• Business, financial and investment plans

• Conceptualization of real estate investment products (e.g., special funds, fund of funds)

• Real estate portfolio management models and processes

• Improvement of real estate management processes (internal optimization and outsourcing)

• Cost inefficiencies rent and service charge reviews

• Exit strategies

Development process implementation Nonperforming loans (sell-side and buy-side)

• Advising on processes for development of real estate assets

• Advising on site acquisitions, highest best use analyses, business plans and development strategies

• Planning, integrating results of other consultant groups, fund raising, risk identification and advising on the optimization of operational structure

• Planning, advising on and support of the transaction process

• Structuring of data rooms, capturing and analysis of all relevant information pertaining to loan commitments and collaterals

• Execution of desktop and drive-by value indications or full appraisal of a portfolio or a sample

Capital markets, real estate M&A, and fundraisingM&A Advisory ServicesReal estate has established itself in the capital markets as an asset class in its own right – one which is characterized by a high degree of complexity.

We can assist you with the transaction life cycle`s three stages: • Acquisitions

• Hold while increasing the value

• Disposals

Acquisitions We can identify attractive acquisition opportunities for

Commercial due diligenceAs part of any transaction process, we provide commercial due diligence in the form of a red flag report and purchase report.

Commercial due diligence services are carried out by RICS real estate professionals with an established track records in real estate and a wealth of experience in transaction due diligence.

FundraisingWe can assist with capital raising whether it be equity or bank debt. We provide the following services:

prospective investors. In addition, we provide commercial due diligence and can assist in the negotiation process and deal closing.

Hold while increasing the value Within the scope of our strategic advisory services, we help you determine how to create value on a real estate asset or portfolio level and assist in the execution of a value improvement plan.

Disposals The EY office coverage and client base means we are well placed

to act to dispose and to secure prospective investor interest from across the globe.

On the corporate advisory level, we assist in identifying the optimal real estate for disposal, by performing a first step diagnostic assessment, followed by the determination of actions needed for an exit preparation.

• Identifying capital requirements and assisting with obtaining financing or equity and joint venture partners

• Support in the strategic approach towards investors in order to obtain financing or to close an equity gap in real estate project developments

EY services

• Identification of opportunities on the market

• Commercial due diligence

• Buy-side and sell-side advisory

• Joint ventures advisory

• Transaction structure (e.g., share deal vs. asset deal, individual vs. portfolio sale)

• Negotiations of transaction terms

• Coordination of financial and asset due diligence

• Process management and assessment

• Identification of transaction risks

12

345 Valuation

process

Coordination with client

Site inspection

Analysis of information and

documents provided

Valuation

Reporting


Due to the international capital markets, companies are increasingly confronted with the requirement for improved corporate transparency and constant monitoring of real estate values. Regular valuations of a company’s real estate holdings can identify any irregular shifts in property value and negative implications on financial statements and company performance.

A fair and professional valuation of your property or real estate portfolio has become increasingly complex and valuation standards have become increasingly stringent.

As members of The Royal Institution of Chartered Surveyors we can provide valuations according to standards across all sectors of real estate.

EY services

• Corporates – for decision-making purposes and risk management

• Funds – for regular reporting to investors

• Investors – as part of an acquisition or disposal

• Banks – for loan security purposes

Other services

• Financial reporting and secured lending purpose appraisal

• Preparation of broad real estate-related appraisal models within the framework of portfolio transactions and company acquisitions

• Valuation of portfolios and properties in accordance with international and domestic accounting standards

• Purchase price allocation

• Support for decision-making

Valuation servicesWe can provide broad-based advice and efficient execution of valuations, both domestically and overseas. We provide valuations to the following clients:

On a corporate level, we can further assist with the analysis, identification, structuring and appraisal of operationally essential and non-essential assets.

Market research and evidenceWe are actively involved in the real estate market, which facilitates the ability to track trends and provide market statistics as well as research services.

Through our tenant representation and capital markets exposure, we underpin key market fundamentals such as rents, vacancies, service charges and yield levels.


Hospitality and Leisure servicesUnprecedented times bring unprecedented challenges – and opportunities in the Hospitality and Leisure real estate sector. Having in depth knowledge and experience of the CSE region and individual markets can make all the difference. We offer tailor made financial and commercial services within the hospitality industry across the region.

We bring an unparalleled amount of experience to one of the most complex and challenging real estate submarkets in the following services:

Transactions and M&A EY professionals have significant hotel selling and buying experience in the CSE region. This experience includes complex single-asset and large portfolio hospitality transactions. Our unique approach is based on a deep understanding of macroeconomic trends and global hospitality capital markets activity.

Commercial and financial due diligence By bringing red flags to the attention of both buyer and seller, we can often identify commercial and financial adjustments that might have been overlooked by the investor or lender. Our extensive hotel and hospitality experience

helps our clients to make informed commercial and financial decisions.

Valuation and feasibility advisory Hotel, hospitality and leisure valuation requires professional knowledge and experience. We provide RICS standard valuations for major financial institutions, investors, developers and lenders throughout the CSE region.

Strategic and operational advisory We bring an organized and in-depth knowledge when identifying strategic and operational approaches. Our teams can offer financial and commercial performance assessment, corporate structure reviews, market and trend examinations and operational audit of the asset.

Debt, equity and structured finance EY professionals can assist and offer knowledge with debt and equity raising, note sales, acquisition financing, development financing, recapitalization and refinancing of single assets or portfolios. We have a well established relationship with lenders, investors and alternative capital providers.

Operator selection Our teams have significant personal experience of hospitality operation selection. We understand the

importance of negotiating a sound and well balanced management or lease agreement that ultimately affects the investment and asset value. We can identify all commercial aspects that are an important pillar of such an agreement.

Distressed situations and workout advisory We can advise and provide our expertise to equity sponsors, lenders and investment managers when dealing with distressed situations and workout positions. Our teams are aware of the sensitivity and complexity of the hospitality and hotel industry when undertaking distressed and workout instructions.


Tax servicesUsing our experience, we can help our clients to increase the profitability of their investments by improving their tax effects and reducing the related risks.

Audit servicesWe provide services addressing complex matters related to the areas of accounting, financial reporting (valuation and accounting standards applicable to financial instruments) and management option plans.

Legal servicesReal estate projects are increasingly cross-border, highly structured and involve sophisticated financing arrangements. Our Legal Services teams advise on all legal aspects of a property life cycle, from acquisition and development through to letting and sales.

EY services

• Planning and assisting in implementing tax-optimal ownership and financing structures for investment in Central Europe real estate (both domestic and international)

• Tax due diligence reviews

• Tax structuring of transactions involving acquisition and sale of real estate or shares in real estate companies

• Restructuring assistance, including mergers, de mergers, contributions and transformations

• Tax assistance relating to financing and refinancing

• Real estate tax assistance, including optimization reviews

• Assistance in disputes with tax authorities and during court proceedings

EY services

• Assistance with implementation of International Financial Reporting Standards (IFRS) and conversion of your financial statements to these standards

• Assistance with implementation of new and adjusted standards and interpretations

• Identification of necessary changes in IT systems as a result of changed accounting standards

• Structuring of hedge transactions and assistance in negotiations with financial institutions

• Valuation of financial instruments and incentive programs

• Design of financial risk measurement methods and rules of evaluating effectiveness considering risks; assistance with implementation

EY services

• Our teams include professionals in multi-jurisdictional investment programs: including buying and selling investment properties; establishing investment vehicles, such as real estate Funds, joint ventures, partnerships and limited partnerships; and cross-border investment advice and structuring

• We have experience in development and planning law, policy and practice, public law and local government across both the public and private sectors

• We provide assistance in obtaining planning permission up to drafting construction, funding and leasing documentation

• We help our clients to navigate around commercial risks and support them in finding innovative alternatives regarding the environmental impact on a building’s

• We advise in all segments that clients may encounter during the life-cycle of a real estate fund, from formation, regulatory and corporate advice, up to exit strategies


ContactsRobert BrydoneCzech/Slovak Republic and Central Cluster

Email: [email protected]

Guntars KrolsLatvia


Anna KicinskaPoland and Head of CSE


Maja SahbazSerbia


Csaba CzeglediHungary


Alp SenTurkey


Roxana TodiroaeGreece


Dragos RaduRomania


Jakub StanislavCzech/Slovak Republic and Central Cluster


David EšnerCzech/Slovak Republic and Central Cluster


EY services

• Planning and assisting in implementing tax-optimal ownership and financing structures for investment in Central Europe real estate (both domestic and international)

• Tax due diligence reviews

• Tax structuring of transactions involving acquisition and sale of real estate or shares in real estate companies

• Restructuring assistance, including mergers, de mergers, contributions and transformations

• Tax assistance relating to financing and refinancing

• Real estate tax assistance, including optimization reviews

• Assistance in disputes with tax authorities and during court proceedings

EY services

• Assistance with implementation of International Financial Reporting Standards (IFRS) and conversion of your financial statements to these standards

• Assistance with implementation of new and adjusted standards and interpretations

• Identification of necessary changes in IT systems as a result of changed accounting standards

• Structuring of hedge transactions and assistance in negotiations with financial institutions

• Valuation of financial instruments and incentive programs

• Design of financial risk measurement methods and rules of evaluating effectiveness considering risks; assistance with implementation

EY services

• Our teams include professionals in multi-jurisdictional investment programs: including buying and selling investment properties; establishing investment vehicles, such as real estate Funds, joint ventures, partnerships and limited partnerships; and cross-border investment advice and structuring

• We have experience in development and planning law, policy and practice, public law and local government across both the public and private sectors

• We provide assistance in obtaining planning permission up to drafting construction, funding and leasing documentation

• We help our clients to navigate around commercial risks and support them in finding innovative alternatives regarding the environmental impact on a building’s

• We advise in all segments that clients may encounter during the life-cycle of a real estate fund, from formation, regulatory and corporate advice, up to exit strategies

EY | Assurance | Tax | Transactions | Advisory

About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

© 2017 EYGM Limited. All Rights Reserved.

EYG no. 00278-162GBL ED none

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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