EFTA01421958.pdf

Highly Confidential & Trade Secret. Not to be Forwarded. Not for Distribution. For Qualified Investors Only GTIS Qualified Opportunity Fund LLC Fund Profile I 2019 GTIS Partners LP Fund Profile Sponsor Strategy Target Fund Size Structure Geographic Focus Target Gross IRR(1) Target Net IRR(2) Target Gross Multiple(1) Target Net Multiple(2) Fees Preferred Return Catch-up Incentive Term Minimum Investment GTIS Partners ("GTIS") Qualified Opportunity Zones $500 million Private REIT NY, SF, LA, DC, Boston, Seattle, Phoenix, Denver, Miami, Dallas, Orlando 13-14% 9-11% (before tax benefit) 3.0x 2.5x (before tax benefit) 1.6% on Committed capital during Investment Period 1.6% on NAV thereafter 8% to Investors 60% GTIS / 40% Investor 20% Fund-wide waterfall 12 years $100,000 Investor Qualification U.S. Taxable Accredited Investor Closings Due Diligence Key QOZF Professional Tom Shapiro President and CIO • Previously Senior MD at Tishman Speyer, member of Investment and Management Committees • At Tishman for 17 years, managed JV between Tishman and Goldman Sachs, commercial leasing EFTA01421958 and capital markets ■ 30 years of real estate experience Contact Information Peter Ciganik Managing Director, Strategy and Investor Relations (212) 220-5224 pciganik@gtispartners.com 787 Seventh Avenue, 50th Floor New York, NY 10019 www.gtispartners.com Monthly Full upfront commitment Albourne Partners Rocaton Inv Advisors Mercer Opportunity Zone Overview ■ GTIS Qualified Opportunity Fund LLC ("Fund") will target investments in select Qualified Opportunity Zones (QOZs), underserved areas designated by the 2017 Tax and Jobs Act ■ QOZ investments can qualify for substantial tax benefits at federal as well as state level: 1) Tax deferral of capital gains until 2026 from almost any investment- stocks, real estate, art, business sale, K1 partnership gains 2) Tax reduction on the rollover gain by 10% if investment in QOZ is held for at least 5 years, or 15% if held for 7 years by end of 2026 3) Tax elimination for gain on the new QOZ fund investment if held for >10 years ■ Zone locations are quite wide ranging, not just distressed areas (>10,000 ZIP codes, 76% large urban MSAs) and have clear potential as well as need for investment ■ Expected to become the largest economic development and tax incentive program in the last few decades as concentration of capital transforms communities over time ■ QOZ regulations lead to development oriented strategy, as they require 1) Original use of a ground up development in a QOZ, or 2) Substantial improvement by investing more than the original basis (ex land) GTIS Firm Overview ■ Real estate fund manager founded in 2005 with $4.7 billion of AuMfocused on the U.S. and Brazil(3) with 94 employees located across seven offices ■ While experienced across all asset classes, GTIS strategy in the US is focused on residential and mixed use development in areas similar to Opportunity Zones ■ Over $1.4 billion of equity capital committed to 81 residential projects in 30 markets comprising $7.1 billion in total project cost(4) EFTA01421959 ■ Over $180 million of equity committed to 7 projects that are now located in Opportunity Zones, including 1.8 million square feet of commercial space and 4,000 planned residential units ■ Principals have development and operating background, but the firm invests as a capital allocator, leading to a hybrid Allocator/Operator model well suited for the QOZ strategy — enables diversification across markets with local partners but also direct development oversight ■ Established fund management platform with extensive tax and structuring experience, and an investor base including some of the world's largest pensions and endowments GTIS Qualified Opportunity Zone Strategy ■ Diversified — invest in residential and commercial development in up-and- coming areas of major gateways (e.g. NY, SF) and select next-tier markets (e.g. PHX, ATL, DAL) ■ Focused on growth markets — urban as well as suburban development (e.g. Multifamily and Single family rental) with a focus on sunbelt markets that have stronger demographics, job growth, and business friendly climate ■ Balanced portfolio — 10-15 'bite sized' assets (target $20-$50M commitment) vs. oneoff mega deals that carry idiosyncratic risks ■ Commingled fund — REIT structure enables commingled pool with the flexibility to exit through IPO or individual property sales, and manager incentive tied to overall fund performance (fund-wide promote vs. deal-by-deal) ■ Extensive sourcing network — prior investments with over 30 local development partners, and investment presence in 15 out of the 16 target markets ■ Proprietary research — dedicated research team and tools developed to evaluate markets and submarkets to select QOZs with the most potential ■ Identified pipeline — $250M+ pipeline diversified across property types and markets, as a direct continuation of GTIS investment strategy carried out over the past 10 years NOT FOR DISTRIBUTION THROUGH BRANCH RETAIL CHANNELS SUCH AS THE FIDELITY WEALTH ADVISOR SOLUTIONS PROGRAM OR TD AMERITRADE ADVISOR DIRECT REFERRAL PROGRAM. GTIS RESERVES THE RIGHT NOT TO ACCEPT CAPITAL COMMITMENTS SOURCED THROUGH THESE OR SIMILAR BRANCH RETAIL CHANNEL REFERRALS. For Institutional Wealth Partners Clients or U.S. Institutional Investors. Not for Retail Distribution EFTA01421960 Strictly Confidential. Not for Distribution. Qualified Investors Only GTIS Qualified Opportunity Zone Fund "QOZF" Fund Profile I 2019 GTIS Partners LP Examples of Prior Investments in Opportunity Zones Boulder Mixed-Use Total Deal Size: $109M GTIS Commitment: $26.5M Closing Date: Projected Gross IRR: 18%(5) Projected Multiple: 2.0x(5) Vegas Corporate Park Total Deal Size: $150M GTIS Commitment: $14.3M Closing Date: Realized Gross IRR: 73.2% Realized Multiple: 2.03x Phoenix Residential Total Deal Size: $48.3M GTIS Commitment: $43.6M Closing Date: Oct 2012 Projected Gross IRR: 14.5%(5) Projected Multiple: 2.23x(5) March 2006 June 2015 Project Overview ■ Mixed-use project comprised of 242 multi-family units and 135,500 NSF of Class A office in Boulder, CO ■ Project broke ground in September 2018 and construction is projected to be completed over a 31 month period ■ Experienced development partner with prior GTIS commitments ■ GMP and developer budget guarantee in place ■ Office portion pre-sold to Google with a substantial upfront deposit Project Overview ■ Acquisition of nine office and warehouse properties and development parcels in a corporate park adjacent to Las Vegas McCarran Intl. Airport ■ Acquired significantly below replacement cost ■ Leased nearly 140,000sf of space within four months of closing, mostly to investment-grade credit tenants ■ Sold leased properties at 44% above purchase price Project Overview ■ GTIS acquired the Cadence master plan in partnership with Harvard Investments in 2012, and is currently developing the infrastructure needed to support a community of over 2,500 residential units ■ Designed for 2,080 single family lots, 350+ multifamily units, and 51 EFTA01421961 acres of commercial space ■ All ten parcels in Phase 1 sold to national and regional homebuilders with plans to build and sell single-family homes ■ Potential to separate remaining single-family rental and commercial parcels in the master plan into an Opportunity Zone investment (1) Target Gross IRR refers to portfolio returns after leverage and JV partner promotes but before fund-level expenses and fees (incl incentive fees). Individual asset targets may differ materially from the ranges shown. (2) Target Net IRR takes into account fund-level expenses and fees (including any incentive fee), but does not include the impact of tax benefits related to investing in QOZs. (3) Gross Assets under Management differs from Regulatory Assets Under Management, as reported in regulatory filings, and represents the gross appraised value of assets managed by GTIS and its joint venture partners as of 01 2019. Figures may include minority joint venture partners' ownership interests where applicable. Figures also include any Limited Partner unfunded commitments to GTIS separate accounts, funds and co- investment vehicles. Figures exclude both property-level debt as well as working capital at the joint venture or aggregating vehicle entities. (4) GTIS Global Investment Portfolio is composed of approx. $1.83B of equity committed to investments in the US and approx. $1.56B to investments in Brazil (at an FX rate of 3.29 BRL/USD). (5) Projected gross returns are based on GTIS's latest monthly cash flow projections for the asset, generally using the IRR function in Excel with monthly compounding. Projected multiple is calculated as the sum of the projected peak equity requirement and projected profit divided by the projected peak equity requirement. The projections do not include the impact of any taxes paid on behalf of the limited partners. Legal Disclaimers This presentation is for information purposes only and is not intended as investment advice. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities, which will only be made pursuant to definitive written offering documents. This presentation has been prepared on a confidential basis. Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of GTIS is prohibited. This presentation contains forward-looking statements that are not historical facts. These forward-looking statements include statements, express or implied, regarding the current expectations, estimates, projections, opinions and beliefs of GTIS. Such statements are forward-looking in nature and involve a number of known and unknown risks, uncertainties and other factors, and accordingly, actual results may differ materially and no assurance can be given that GTIS will execute such projected investments or will achieve the returns from its investments that it is targeting. Past performance is not necessarily indicative of future results. There can be no guarantee or assurances that similar investment opportunities will be executed on or available in the future or that GTIS will realize similar returns on these investments. Recipient should make its own investigations and evaluations of the information contained herein. Recipient should consult its own attorney, business adviser and tax advisers as to legal, EFTA01421962 business, tax and related matters concerning the information contained herein. Nothing contained herein should be deemed to be prediction or projection of future performance. Any projected returns depicted herein represent "forward looking" information, and such projected returns are based on numerous assumptions about future events or conditions and, at the investment level, are based on assumptions made at the time of original underwriting or later re-underwriting update. Actual events or conditions are unlikely to be consistent and may differ materially from those assumed. No assurance can be given as to GTIS's ability to achieve projected returns. Recipient is cautioned not to place undue reliance on any forward-looking statements or examples included herein, and GTIS assumes no obligation to update any forward-looking statements as a result of new information, subsequent events or any other circumstances. Such statements speak only as of the date that they were originally made. While such information is believed to be reliable for the purpose used herein, GTIS does not assume any responsibility for the accuracy or completeness of such information and such information has not been independently verified by GTIS. EFTA01421963 Supplemental Disclosure for Deutsche Bank Wealth Management Institutional Wealth Partners (IWP) THIS MATERIAL IS INTENDED FOR INSTITUTIONAL CUSTOMERS ONLY AS DEFINED BY FINRA 4512 (c). The trading and investment ideas discussed herein are general and do not take into account an institutional client's particular circumstances (including tax situation), investment guidelines, investment goals, restrictions or needs. Deutsche Bank ("DB") is not acting as a legal, financial, tax or accounting adviser or in any other fiduciary capacity with respect to any proposed transaction(s) mentioned herein. This document does not constitute the provision of investment advice and is not intended to do so, but is only intended to be general information. This material is for our clients' informational purposes and is a general solicitation of derivatives business for the purposes of, and to the extent it is subject to, §§ 1.71 and 23.605 of the U.S. Commodity Exchange Act. This is not an offer, advice, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. 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