PRESS RELEASES

Belaya Dacha Outlet Village, the Largest Outlet Centre in Russia, to Open in July 2012

September 23, 2010

Hines and Belaya Dacha introduced their new project, the “Outlet Village Belaya Dacha”, that will open in the town of Kotelniki, Moscow region, in July 2012. This project is being jointly developed by Hines and Belaya Dacha Group.

Investors in the project are the Hines International Real Estate Fund and Belaya Dacha. The total volume of investment into the project is $160 mln, with $100 mln spent on Phase 1, including the cost of the land.

The Outlet Village will contain is 38,000 square metres, and will accommodate more than 200 retailers, including famous brands such as Burberry, Escada, Furla, Patrizia Pepe, Salvatore Ferragamo, Zadig & Voltaire, Adidas, Lacoste, Mango, Levi's, Nike, Timberland and others. Besides stores, the facility will also accommodate restaurants, cafes and a childcare centre.

The architectural concept for the Outlet Village was developed by Hydea, the most experienced outlet mall architect in Europe. The Project Architect is Andrey Perekhodtsev, a Russian architect working for Hydea in Florence, Italy. The engineering company is Mott MacDonald and the general contractor is STEP Construction. The project will create over 900 jobs.

Lee Timmins, senior vice president of Hines Russia said: “Outlet centres are a highly popular and profitable concept in Europe and the US but do not yet exist in Russia. We have investigated the readiness of the Russian market for the outlet centre concept, and have discussed the project and timing with representatives of major brands and potential tenants. The result of this investigation has been confirmation that the Russian market has enormous potential for outlet retail schemes and very considerable demand for this format of retail center. Having a project jointly sponsored by an international company with a history of success in this market and an experienced Russian partner, we have great confidence in the success of this new project.”

Andrew Muzzlewhite, Hines project manager for Outlet Village Belaya Dacha said: “With more than 200 leading international and Russian brands under one roof, the project will be among the largest Outlet Centres in Europe. Belaya Dacha Outlet Village will be home to leading luxury and high-end street brands with discounts from 30 to 70 percent, including fashion, footwear and sportswear. Outlets offer quality merchandise, typically consisting of end-of-season stock, with some brands like Hugo Boss, Mango and Ralph Lauren manufacturing stock specifically for the outlet.”

Vladimir Tsyganov, general director of Belaya Dacha Group said: “Our joint efforts with Hines will turn the town of Kotelniki into a regional retail destination center on the South-East of Moscow. We are getting support from the Kotelniki administration, and regional and federal road authorities are currently building a new road connection to MKAD that will make site accessibility easy and comfortable for future customers.”

Hines brought into the project team specialists that have expertise in retail and outlet formats with well-known outlet operators such as McArthurGlen, the world leader in outlet centre construction. The Outlet Village Belaya Dacha will be built according to state-of-the-art European outlet standards.

The project is being designed and built to achieve BREEAM certification for sustainable development.

Outlet Village will include approximately 4,000 parking spaces. In addition, there will be buses to metro and railway stations, plus the destination will be added to the public bus network routes. Direct access from the M5 highway is under construction and will ultimately form part of the new all-direction junction being built by the government. There is also a direct link to the MKAD, which is under construction.

Outlet Village Belaya Dacha will be the first operating project of this kind in Russia and will attract interest from all districts of Moscow and adjacent towns.