2013, PRESENTATION, Mongolian Properties and Real Estate Report 2013, Lee Cashell

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*Sources: Mongolian Properties, Hindustan Times

Real Estate in Emerging Markets: Historical Rental Yields

Mongolian Properties Monthly Revenues

Cyclical nature of revenue sees increased property sales during the summer months

Supply Constraints + Expanding Demand = Rising Prices

A Broad View: The City of Ulaanbaatar

Ulaanbaatar is Expanding Outward

Accommodation in Ulaanbaatar

Residential Market

Residential Market

Ulaanbaatar Averages

The Olympic Residence

13% Rental Yield Prime Location in the CBD US$3,500 psm

Residential Price Projections (US$ Per Square Meter)

66% Increase 2012-2014

250% increase in consumer spending over the last 5 years

Real incomes growing at 10% per annum

27% increase in registered businesses year-on-year between 2009-2010

Recently upgraded from a low to a middle income country

Retail Market

Demand for Luxury Goods ‘Aspirational Consumerism’

Source: World Bank

Consumer Spending Growth Drives Demand

0

1

2

3

4

5

6

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Demand for Luxury Goods ‘Aspirational Consumerism’

Zaisan Valley

2009 2010

Nukht Valley

2013 Future?

The Village at Nukht

14% Rental Yield

Strategic position in

Nukht Valley

$2,500 psm

Macro-Trends: Past and Future

Sources: World Bank WDI, IMF WEO, Mongolian NSO, Mongolian FIFTA

Mortgage Market: Past and Future

Sources: World Bank WDI, IMF WEO, Mongolian NSO, Mongolian FIFTA

Retail Price Projections (Per Square Meter)

50% Increase 2012-2014

Commercial Market

Limited Grade A Office Space in CBD More and More International Firms Opening Offices in Ulaanbaatar

Pollution and Infrastructure Drives Demand for Alternative Office Space

New, Rapidly Growing Companies

New, Rapidly Growing Companies

Conclusion: Sustained Growth in the Medium Term

For more information please visit www.invest-mongolia.com

www.invest-mongolia.com

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