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MAK HOLDINGS INVESTOR CONFERENCE – PROPERTY MARKET OVERVIEW 5 th December 2017 MAK HOLDINGS INVESTOR CONFERENCE – PROPERTY MARKET OVERVIEW 5 th December 2017

Presentation Outline • Knight Frank at a Glance • Vital Statistics (Economy, Demographics) • Presentation Outline • Knight Frank at a Glance • Vital Statistics (Economy, Demographics) • Why Invest in Uganda? • Real Estate Market Overview • - Residential • - Commercial/Office • - Hospitality • Investment Opportunities with Mak Holdings Ltd • Infrastructural Improvements (Road and Transport Network in Kampala) • Conclusion • Q&A 2

Knight Frank At A Glance Knight Frank Global w Property Consultancy Firm established in Knight Frank At A Glance Knight Frank Global w Property Consultancy Firm established in London in 1896, and in Africa ( Nigeria first) in 1965. w Largest independent real estate agency in the world w Newmark Knight Frank - New York-based global partner w Operations in over 417 offices in 62 countries on 6 continents w 15, 000 employees globally. Knight Frank Africa w Operations in 23 offices in 10 countries, 700 employees. w Rwanda – latest addition to the Global Footprint. Knight Frank Uganda w Since 2000 with 155 employees w Service lines: - Property Valuations, Commercial (retail and office) property management, residential property management, Agency (acquisitions and disposals), Consultancy.

Global Foot Print w Australia, Bahrain, Belgium, Botswana, Cambodia, China (Hong Kong/Macau), Czech Republic, Global Foot Print w Australia, Bahrain, Belgium, Botswana, Cambodia, China (Hong Kong/Macau), Czech Republic, France, Germany, Hungary, India, Indonesia, Ireland, Kenya, Malawi, Malaysia, Monaco, New Zealand, Nigeria, Poland, Russia, Rwanda, Singapore, Spain, Tanzania, Thailand, Uganda, United Kingdom, Ukraine, Zambia, Zimbabwe Associate offices: w Bermuda, Brazil, Canada, Caribbean, Chile, Italy, Netherlands, Portugal, Romania, USA

ECONOMIC OVERVIEW • Uganda’s GDP at market prices (UGX Billions) 5 ECONOMIC OVERVIEW • Uganda’s GDP at market prices (UGX Billions) 5

MONEY MARKET & INFLATION INDICATORS 2017 6 MONEY MARKET & INFLATION INDICATORS 2017 6

DEMOGRAPHIC PROFILE - UGANDA • Population And Annual Growth Rates 1980 - 2014 Population DEMOGRAPHIC PROFILE - UGANDA • Population And Annual Growth Rates 1980 - 2014 Population growth: • 3. 3% p. a - 2002 -2014. Projected Popn: • 45. 8 m in 2020 • 53. 5 m in 2025 • 61. 9 m in 2030 No of Households: • 7, 305, 887 in 2014 & • 5, 043, 256 in 2002 (Average Hhd size of 4. 7 people) Source - UBOS 7

DEMOGRAPHIC PROFILE -KAMPALA • Population Pyramid of Kampala 8 DEMOGRAPHIC PROFILE -KAMPALA • Population Pyramid of Kampala 8

WHY INVEST IN UGANDA? Fully liberalized economy Free Inflow & Out flow of Capital WHY INVEST IN UGANDA? Fully liberalized economy Free Inflow & Out flow of Capital Stable Annual Economic Growth – 5% Stable inflation – low, single Digit Increased Government Expenditure on infrastructure - Over US $ 1 bn Population Growth Rate 3. 3% pa Relatively Secure country Tourism Opportunities -Ranked No. 1 destination in Africa for 2017 by Rough Guides Strong Natural Resource Base – Oil & Gas Market Access – SSA Strategic Positioning 9

PROPERTY SECTOR AT A GLANCE. Sector Yields Occupancy Rates Outlook Office $16 - $17 PROPERTY SECTOR AT A GLANCE. Sector Yields Occupancy Rates Outlook Office $16 - $17 net (psmp) 10% - 11% 85% Positive Retail $ 22 - $100 net (psmpm) 12% - 14% 90% Residential (2 & 3 bed Apartments) $ 2, 500 - $ 3, 500 8% - 10% per month n/a Vibrant Industrial $ 4. 50 - $6. 00 (psmpm) 80% Positive Hospitality • • Prime Passing Rents $ 150 – $200 60% Positive 13% - 15% Strong There is an emerging segment within the student accommodation space. For hospitality ADR’s presented above are for 4 and 5 star hotels. 10

RESIDENTIAL PROPERTY SECTOR OVERVIEW • Residential property sector continues to grow supported by improving RESIDENTIAL PROPERTY SECTOR OVERVIEW • Residential property sector continues to grow supported by improving infrastructure and growing suburbs. • The top end of the market has continued to attract both private and institutional investors given the attractive returns over the years. • Yields at the top end of the market are between 8% - 10% for USD based rentals. • For build to sale properties, developer’s profit ranges between 25% – 30% • The biggest opportunities within the residential segment is in the middle to upper low income bracket where demand outstrips supply. • Uganda has an annual housing deficit of 210, 000 units and 65, 000 of this is within urban areas. Majority of this demand is for affordable housing. 11

PRIME RESIDENTIAL RENTS – HOUSES Rents for houses in prime residential locations 12 PRIME RESIDENTIAL RENTS – HOUSES Rents for houses in prime residential locations 12

RESIDENTIAL PROPERTY MARKET PRICESCONTD Rents for serviced & furnished apartments in prime residential locations RESIDENTIAL PROPERTY MARKET PRICESCONTD Rents for serviced & furnished apartments in prime residential locations ($) 13

HOSTEL / STUDENT ACCOMODATION SECTOR. • Makerere University current student population – 40, 000 HOSTEL / STUDENT ACCOMODATION SECTOR. • Makerere University current student population – 40, 000 students, growing at 4% per annum. • Currently, a total of 5, 124 students have accommodation offered by the university, at a space ratio of 13. 76 sq. m per student totaling 70, 506 m 2 which is only 12% of the requirement. • Over 80% of student accommodation is built by private developers. • Total built up area currently required for accommodation is 558, 216 m 2. 14

The Case for Student Accommodation • There is a large and growing student population The Case for Student Accommodation • There is a large and growing student population • Universities can’t keep pace with demand for accommodation • Higher education is recession-proof • Net yields (13% – 14% which are often higher than traditional BTL (by to let) gross yields. • Purpose-built student accommodation in which students want to live • Parents act as rent guarantors • Professional property management • Students could become long-term tenants. 15

AVERAGE HOSTEL FEES PER SEMESTER Hostel Name Location Rent per semester (UGX) Double Room AVERAGE HOSTEL FEES PER SEMESTER Hostel Name Location Rent per semester (UGX) Double Room (selfcontained) Double Room (ordinary) Single Room (Selfcontained) Single Room (ordinary) Ark Katanga 900, 000 None 1, 600, 000 (Big) & 1, 300, 000 (Small) None Braeted Maimood Katanga 900, 000 750, 000 None Dream-world Kikoni 750, 000 (both Toilet and bathroom) & 640, 000 (Only bathroom) 580, 000 1, 600, 000 850, 000 - 1, 300, 000 dependent on size 1, 200, 000 930, 000 Akwata Empola Kikoni None 800, 000 Kikoni Kagugube Road None 950, 000 650, 000 900, 000 850, 000 600, 000 None 550, 000 None 1, 400, 000 900, 000 1, 400, 000 700, 000 None 550, 000 850, 000 None Miriam Kikumi-kikumi 620, 000 (50 rooms) & 660, 000 (19 rooms) 600, 000 850, 000 700, 000 Akamwesi Waterloo Nakawa Kikumi-kikumi 1, 500, 000 None 700, 000 640, 000 1, 200, 000 None 800, 000 900, 000 Kare Olympia Bridgeton Muhika Nana 16

OFFICE SECTOR OVERVIEW - Past 3 – 4 years office rentals have dropped and OFFICE SECTOR OVERVIEW - Past 3 – 4 years office rentals have dropped and levelled out against a back drop of low demand over supply in the Grade AB/B space, putting pressure on prime rents. - Noticeable improvement in office rents and take up of space by H 2 2016. - Noticeable increase in take-up of Grade A/AB office space, in modern, energy efficient buildings, with adequate parking space out of the congested CBD area. - Vacancy rates have been highest in newer buildings with tenants driving hard bargains. - Prime office rentals still holding their values. - New office space demand continues to be driven by factors like ample parking, better facilities and less traffic congested areas. - Grade A office yields - 10% - 11% - Grade A rents - $16. 00 - $17. 00 per sq. m p. m - Grade B office rentals - $12. 50 - $15. 00 per sq. m p. m. 17

HOSPITALITY PROPERTY SECTOR • Figures from the 7 th Annual Tourism Sector Performance Report HOSPITALITY PROPERTY SECTOR • Figures from the 7 th Annual Tourism Sector Performance Report indicate that tourism continues to be a pillar of Uganda’s economy, contributing nearly Shs 7. 3 b to Gross Domestic Product (GDP) in the financial year 2015/2016. This translates into 9% of the country’s GDP. This was an increase from Shs 6. 3 b in 2014/15 financial year. • Uganda was named as the fourth best tourism destination in the World and number one in Africa for 2017 by the Rough Guides, a leading travel publisher. Uganda is expected to attract more tourists in 2017 with its astonishing wildlife. • There is no formal hotel grading system in the Uganda Hotel sector. Most of the hotels graded as 5 star hotels are in actual sense closer to 3 – 5 star (midscale). • The sector has continued to show good growth with occupancy rates averaging between 65%- 70% and Average daily Rates (ADR’s) at $150. 18

HOTEL DEVELOPMENT PIPELINE FOR UGANDA IN 2017 • No of new planned Hotels: 12 HOTEL DEVELOPMENT PIPELINE FOR UGANDA IN 2017 • No of new planned Hotels: 12 • Total No. of Rooms: 1, 751 • Pre-construction planning: 48% • Rooms on site (Construction): 52% • Average Daly Rates – $150 • Average Occupancy levels – 70% - 80% Source: W-Hospitality Group 19

CONFERENCES AND EVENTS PERFORMANCE. Location # of conferences Jan-Nov 2016 # of Conference Attendees CONFERENCES AND EVENTS PERFORMANCE. Location # of conferences Jan-Nov 2016 # of Conference Attendees # confirmed conferences Dec-July 2017 Kampala 907 16901 744 Entebbe 167 13677 8 Jinja 495 15702 279 Total 1, 569 46, 280 1, 031 20

TOURIST ARRIVALS BY PURPOSE 21 TOURIST ARRIVALS BY PURPOSE 21

LOCATION OF THE 3 SUBJECT SITES IN KAMPALA. 22 LOCATION OF THE 3 SUBJECT SITES IN KAMPALA. 22

Kampala Major Arterial Routes Makerere Kololo Makindye 23 Kampala Major Arterial Routes Makerere Kololo Makindye 23

MAKINDYE – RESIDENTIAL DEVELOPMENT OPPORTUNITY 14. 00 Acres Plot in Makindye – 400 Housing MAKINDYE – RESIDENTIAL DEVELOPMENT OPPORTUNITY 14. 00 Acres Plot in Makindye – 400 Housing units. es cr A 14 24

MAKERERE UNIVERSITY CAMPUS SITE – STUDENT ACCOM. & CONVENTION CENTRE 25 MAKERERE UNIVERSITY CAMPUS SITE – STUDENT ACCOM. & CONVENTION CENTRE 25

KOLOLO - COMMERCIAL PROPERTY DEVELOPMENT OPPORTUNITY. 4. 15 Acres: 5 Star hotel with 150 KOLOLO - COMMERCIAL PROPERTY DEVELOPMENT OPPORTUNITY. 4. 15 Acres: 5 Star hotel with 150 keys 3. 00 Acres: 100 Luxury 3 - bedroom apartments @ with GBA of 240 m 2 selling @ $375, 000 6. 14 Acres: Business office park with a GBA of 100, 000 m 2. Approx 13 Acres 26

KOLOLO - PRIME COMMERCIAL SITE Ap ar tm en ts ( 3 Ac re KOLOLO - PRIME COMMERCIAL SITE Ap ar tm en ts ( 3 Ac re s) Mixed Used Development in Kololo on 13. 00 Acres of land comprising a Business Park, Hotel and Luxury Apartments. Business Park 1 (4 acres) Business Park 2 (3. 5 Acres) Hotel (2. 5 acres) 27

INFRASTURUCTURE PROJECTS BOUND TO TRANSFORM KAMPALA The Kampala-Entebbe Express Highway 28 INFRASTURUCTURE PROJECTS BOUND TO TRANSFORM KAMPALA The Kampala-Entebbe Express Highway 28

Nakasero VVIP Express Route § Links the Kampala Northern Bypass with Nakasero § Connects Nakasero VVIP Express Route § Links the Kampala Northern Bypass with Nakasero § Connects to the Major hotels and Conference Centres § Links with the Kampala Flyover Construction 29

Kampala Flyover Project 30 Kampala Flyover Project 30

MASS RAPID TRANSPORT SYSTEM 31 MASS RAPID TRANSPORT SYSTEM 31

CONCLUSION • Real estate is cyclical business and as such it follows economic cycles CONCLUSION • Real estate is cyclical business and as such it follows economic cycles and is a long term investment that requires a long term attitude. • According to the IMF, economic growth is expected to accelerate to 5% in the next financial year (2017/18) buoyed by improving weather conditions and a recovery in private sector credit. Additionally, Infrastructure and oil sector investment are envisaged to lead recovery of growth to 6% over the medium-term. • Real estate as an asset class creates an opportunity for relatively high risk adjusted returns for investor who can obtain cost efficient, high quality information. • Above all, the World Bank has lifted suspension of funding to the Road sector in Uganda. As a result, we envisage an increase in public infrastructure spending which is expected to support economic growth in the second half of 2017. 32

THANK YOU FOR YOUR ATTENTION Questions & Answers 33 THANK YOU FOR YOUR ATTENTION Questions & Answers 33