EFTA01455445.pdf

Suntex marinas Area of expertise: Private markets Theme: Private Investments Investment profile of marinas KCP believes marinas provide a compelling investment opportunity for several reasons: Marinas provide yields at the top end of the - REIT status: The industry has significant scale, growth potential, strong free cash flow, and generates an range for all REIT asset classes' attractive yield: the asset class now qualifies for REIT status 9.00% 8.50% — High current and forecasted revenue: In 2013, U.S. Marinas generated $4.2bn in revenue, 68% of which 800% 8.00% 8.00% was generated by boat owners of the Baby Boomer generation (ages 45+). Baby boomers have, and are predicted to continue having significant amounts of wealth and leisure time 7.00% 640% 640% 6.30% 6.20% 560% — Stability: Quality marinas in prime locations are stable through economic cycles, resistant to down turns 6.00% while closely mirroring inflationary trends. The customer base is loyal with low turnover, resulting in low E it 5.00% default rates I 4.00% — Barriers to entry: The number of marinas hardly fluctuates due to limited availability of appropriate land, regulations and environmental protection laws, and high initial capital investments 1 3.00% — Consolidation opportunity: The marina industry is very fragmented. In the US there are approximately 2.00% 2.500-3,000 institutional quality marinas, with at least 90% of owners being singular -mom and pop" 1.00% businesses poised for acquisition and operational improvement 0.00% I , — Risks: Economic downturn that results in fall in value of marina values, drought Magna uxfp-1, or. (Ant Suntex Ventures. an overview - Suntex Ventures, LLC, is a real estate company investing exclusively in niche Suntex current, past and potential acquisitions mixed-use marinas and their related operating platforms Wad Steles — Suntex currently ranks among the top 5 marina owners and operators in the U.S. The group has acquired 29 marinas and 4 marina loans, valued at $300mm in total. It currently owns and operates 20 marinas, and manages another 2 — lay& as era — Suntex has a near 20 year history of success with strong historical distributions tonsereeen Musa made from marina cash flow: realized historical IRRs have been in excess of a...a pa.. 30% • . . . — The executive team has worked together for over 20 years eta ...Cr ono... anwates.v.e. beileale.• lama — Suntex is already internationally established, and will maintain exclusivity in 'um eseeana aliglimatiney4s.•.• ..e.- . many markets with high demand tawler•Ca. San •••••••••••••••••• •Oariu•Sem — Potential exit strategies are through an IPO or through sale to an existing REIT ••••••••lati•la 4esenti•• OA aipti•Syse.ismas management company *a rtlit•Wel• can 111,11.41 Cabiella 0 ago 0 •. Key Suntex managed marinas Suntex potential acquisitions Suntex Current holdings , Suntex / Sun resorts international sold / disposed (1) As of February 19, 2014. Source: Green Street Advisors Deutsche Asset & Wealth Managenun For Internal Use Only 18 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 114207 CONFIDENTIAL SDNY_GM_00260391 EFTA01455445