EFTA01454615.pdf

RRP72 - Southern Financial Energy Efficiency Retrofit Project Funding Through an ESA, the Partnership will fund the cost of retrofit projects and capture the "energy savings" returns of an energy efficiency retrofit without owning the host building' The Partnership and a building owner enter into a contract where the building owner agrees to pay its historical utility bills to the Partnership for the term of the contract, in exchange for energy services relating to the equipment installed. The Partnership funds the cost of money-saving. energy efficient equipment installed in the owner's building. Typically. the owner of the building owns the equipment installed. During the term of the contract, the Partnership provides energy services to the building. J The Partnership earns the difference between the historical utility bills and the new, `, lowered utility bills adjusted for any gain sharing arrangements and certain other adjustments. Over the life of the project, these payments are expected to generate attractive, risk-adjusted current returns with no reliance on capital .. appreciation.2 ' In the context of a particular project or transaction, the Partnership may modify or simplify the typical ESA structure and terms described above or may elect to structure such project or transaction through a non-ESA or modified ESA structure. By way of example, in the context of a smaller project, the Partnership may elect to bill a building owner directly (i.e.. rather than receiving payment from the differential between the building's historic payments and post-retrofit payments). The Partnership may also (i) undertake renewable energy and cogeneration projects in buildings and other properties in which the vehicle has an existing project and engage in other energy efficiency projects or transactions, either through an ESA (or modified ESA) structure or otherwise. 2 There can be no assurance that the Partnership will achieve a particular rate of return or any return at all. Deutsche Asset RREEF Retrofit Partners. L.P. For U.S. Person Clients of the U.S./Americas Key Client Partners Desk Only W.7;i!r" June 2014 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0112846 CONFIDENTIAL SDNY_GM_00259030 EFTA01454615