EFTA01454619.pdf

RRP72 - Southern Financial The Pool of Target Buildings The Team believes there are a significant number of buildings in commercial office, educational and other building types that could offer attractive potential retrofit projects of the type being targeted by the Partnership Commercial Office Building Target Market' 2 Additional Targets Commercial Office (25%) Education buildings 'Community inliastiuclure Universities 5,000 Public schools 98,800 marline and non- 34% commercial Private schools 33,300 2.290 equipment Trillion Total education buildings 136.500 BTUS . New private buildings 16% 34,000 Government buildings Other target buildings 25% buildings FioteisiMotelS. >64,000 8,000 Existing privato buildings Hospitals' >5,700 buildings Large multi-ram lys >12,000 Commercial Office Building 'tweet Spot": Total other target buildings >81,000 20,000 buildings are greater than 200k sq. ft. and are located in zones with significant temperature variability While all commercial office buildings above 100k sq. ft. are potentially attractive retrofit candidates, there are 20,000 buildings that are particularly attractive being more than 200k sq. ft. and located in geographic areas with significant temperature variability "Unlocking energy efficiency in the U.S. economy'. McKinsey & Co . July 2009 : 2 httplinces ed.govilastfactsidisplay.asp7id21372: 2http:Maww,tds goviocofcgitcgs086 ahttpiThemitaha.orglresearchircistat-studretvlast-facts.shtml CoStar data, 2012 Data includes tusIdirgs located in certain specified markets. with a construction date of 1900-2000, and greater than 200,000 sq ft. Many of these opportunities may be unavailable to the Partnership for a variety of reasons, including competition for opportunities. suitability of the project and otter reasons The Partnership's ability to source attractive retrofit project opportunities in commercial buildings is likely to be impacted by whether a building has a favorable lease structure within its tenant base ri e.. the leases permit the budding owner to retain project gains) and (Ili if it does rot. whether the Partnership can structure the ESA for such building to address any 'split incentive" issues associated with the budding leases. Deutsche Asset RREEF Retrofit Partners. L.P. For U.S. Person Clients of the U.S./Americas Key Client Partners Desk Only £ W.mith Mana;rt- June 2014 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0112855 CONFIDENTIAL SDNY_GM_00259039 EFTA01454619