BUILDING AN INTERNATIONAL BUSSINESSGrowing Your Business Globally

Opportunities with FIABCI World CouncilsRussian National Real Estate Congress

May 17, 2012 Moscow, Russia

Kirkor AjderhanyanPresident World Council of Brokers FIABCI

President International Relations Committee FNAIM

General Coordinator Global Real Estate Think Tank

Broker/Owner Agence 107 Promenade107, Promenade des Anglais 06000 Nice

Francekirkor@107promenade.com

www.107promenade.com

Business is Changing—You must have Vision and Perspective

Implement a business plan

Define target audience and marketing strategies

Vision must reflect global trends and market realities

Niche market expertise – makes you strong globally

Be a “geo-strategist”: Pursue new markets with a global strategy based on understanding of world events

Internet and social media play key role in networking

The chess (strategy) rules stay the same; only players change

2

Referrals: The way forward

Increase revenue from referrals

As business becomes more global → revenue from referrals will increase as % of total revenue

Grow referral business by building brand loyalty Offer “one-stop” shopping client services

Financing Legal Document services Etc.

Develop strong interpersonal relationships3

Interpersonal relationships

Real estate remains a people business—local or global

Personal relationship opens doors—surround yourself with the best people to get to the best doors

Participate in industry events around the world Learn about other markets Meet brokers in those markets Build a global network to support referral business

Be a broker of relationships!4

MANAGERS Michael von Hauff,

President

BROKERSKirkor Ajderhanyan,

President

DEVELOPERS / INVESTORSJoão Crestana,

President

EXPERTSTerry Dunkin,

President

WORLD COUNCILS

OFFICE BUILDINGS

CONDOS

RESIDENTIAL

OFFICE

INDUSTRIAL

RETAIL

LEISURE

LAND

FARM

BUILDERS

FUNDS

FINANCIAL INSTITUTIONS

ARCHITECTS

VALUERS

LAWYERS

ENGINEERS

SURVEYORS

CONSULTANTS

TITLE COMPANIES

EDUCATORS

Professional Division

PROMOTERS

RENTAL BUILDINGS

RETAIL

INDUSTRIAL

ASSETS

FIABCI World Councils

FIABCI WORLD COUNCIL OF BROKERS5

2010-2011 FIABCI World Councils: Created under FIABCI World President Enrico Campagnoli

2011-2012 FIABCI World Councils: Election of Management Team; Launching of Action Plan under FIABCI World President Alexander Romanenko

2012-2013 FIABCI World Councils: Active involvement in the global real estate industry under FIABCI World President Judy Shenefield

World Council of Brokers Vision

To be the premier, most effective, global business network for brokers

To be multidisciplinary, multi-sectorial and multilingual

To focus our activities around FIABCI’s core competencies

To achieve the goals set for all the World Councils

FIABCI WORLD COUNCIL OF BROKERS6

Philosophy to Achieve the Vision

Build a new “Golden Bridge” between the continents for the good of the industry.

We will achieve this through the exchange of industry knowhow.

The human element and shared universal high values and standards will be “construction guide.”

FIABCI WORLD COUNCIL OF BROKERS7

Commercial OFFICE BUILDINGS

INDUSTRIAL

RETAIL

LEISURE

LAND

ResidentialPRIMARY HOUSING

SECONDARY

HOUSING

WORLD COUNCIL OF BROKERS

WCB Divisions

FIABCI WORLD COUNCIL OF BROKERS8

DIVISIONS

SPECIALTIES SERVICES

Education Training & Technology

PLATFORM

MESSAGING

FIREC

New Services

PROXIO

SOCIAL MEDIA

SYNDICATION

New Markets

SPONSORSHIP

S

GLOBE

TROTTER

INVESTMENT

INFO.

MarketingBRANDING

EVENTS

NETWORK

Global Developmen

t & PromotionCREATION OF

WCB STRATEGIC PLANNING GROUP

FIABCI WORLD COUNCIL OF BROKERS 9

Foundation of Success: Volunteers!

Join our team and be part of our success!

If you have an idea—step up and make it happen.

French Market Opportunities

Home prices increased, on average, 85% between 2000 and 2007 before falling back during the crisis Largest increases were in Paris and southern France Figures not adjusted for inflation (est. 15%)

Between 2007 and 2011 home prices fell 3.2%

Strong sales and price growth in 2011

2011 was a record year for home sales activity Total sales exceeding 850,000 (highest level since 2006)

Home prices rose an average of 6.1% due to: Historically low interest rates Bounce back from three previous lackluster years

Source: FNAIM

Housing Outlook for 2012

Challenges for French residents to buy a home

Expected further market correction

Tax changes

Rising interest rates; larger deposit needed for good rates

In spite of this…France is a “crisis resistant market” – especially Paris, Nice / French Riviera

Excellent Investor Opportunities

Underlying demand remains

Substantial housing shortage; high desire for home ownership

Low household debt

Capital gains tax changes will mean fewer properties on the market, putting pressure on prices

Foreign Investment in France

Paris Snapshot Foreign investors looking for €1 to €5

million price property; attracted by prices that are 20-30% lower than Central London

Paris has overtaken London to become the #1 city in Europe for property investment (CBRE, 3/30/12)

Investment jumped from €3.6 billion in the first half of 2011 to €7.9 billion in the second half

Office sector drove investment surge

British, Italian and German buyers most active in luxury market; increased interest from Russian, Middle East and Asian buyers (Knight Frank)

Foreign Investment in France

Nice / French Rivera Snapshot

High demand from large national and international buyers

Prices stable since 2008; buyers understand true value of property

Prices remain reasonable; pricing is unique for each (no average sq. meter price)

Very high re-sale potential

Attractive lifestyle

Sales volume increased 33% from 2010 to 2011 in Nice seafront

Top buyers include French, Russians, Scandinavians, British and other from Northern Europe and also Middle East/Persian Gulf

Doing Business in France

Highly transparent market

Consumers are well protected

More demand than inventory

Referrals on the sale of properties average 40% – 50% of the commission paid

Average commissions run between 5% and 8% depending on a number of variables

Fees are negotiable

Professional network of agents through FNAIM

Targeting Russian Investors

Russians buyers are looking for reliable, safe place to put their money >>> Real Estate!

Moscow is expensive; more affordable to invest outside Russia

Russians interested in high quality real estate in London, Paris, Cote d’Azur, Toscana and New York

20% buy in foreign resort areas for holiday trips with families; 20% looking for a retirement home; 25% for investment

Source: Analytical Center IRN.RU

Targeting Russian Investors

Typical Russian investor abroad is a businessman – owner of one or several enterprises

Owns an apartment in Moscow and dacha in the suburbs

Looking to buy abroad for personal use

Preferred destinations: If speculative – developing markets If long-term investment – developed markets Most Russians buy in markets they have travelled

to, including Cyprus, Bulgaria, Montenegro, Spain and France

Looking for warm, beachfront locations High-priced preferred locations are London,

Switzerland and French Riviera

Source: Moscow Times, Real Estate Quarterly – September 2011

BUILDING AN INTERNATIONAL BUSSINESSGrowing Your Business Globally

Opportunities with FIABCI World CouncilsRussian National Real Estate Congress

May 17, 2012 Moscow, RussiaMerci Beaucoup !

Kirkor AjderhanyanPresident World Council of Brokers FIABCI

President International Relations Committee FNAIM

General Coordinator Global Real Estate Think Tank

Broker/Owner Agence 107 Promenade107, Promenade des Anglais 06000 Nice

Francekirkor@107promenade.com

www.107promenade.com