GROUP OVERVIEW 1 Property portfolio as of December 31, 2017 1.5.2 Retail assets Gross leaseable Portfolio Region/City Composition area Buffalo Grill Throughout France 102 restaurants 58,026 43 store premises of which: Vivarte Throughout France - 33 store premises operated by La Halle 43,366 - 10 store premises operated by La Halle aux Chaussures King Jouet Throughout France 20 stores 17,414 Défi Mode Throughout France 25 stores 24,488 Sephora Metz 1 store premises operated by Sephora 717 28 store premises of which: Diversified assets Throughout France - 4 store premises operated by Action 38,809 - 3 Leader Price supermarkets - 2 stores operated by Delbard Other assets Throughout France 27 store premises 24,757 TOTAL RETAIL ASSETS THROUGHOUT FRANCE 247 ASSETS 207,577 1.5.3 Overview of valuation reports prepared by Klépierre’s independent external appraisers General context of the valuation The Market Value defined below generally matches the Fair Value defined in IFRS Standards, and particularly in IFRS 13. Context and instructions Basis of valuation In accordance with Klépierre’s (“the Company”) instructions as detailed in the signed valuation contracts between Klépierre and Our valuations correspond to the market value and are reported to the the valuers, we have valued the assets held by the Company, taking Company as both net values (market value after deduction of transfer account of their ownership (freehold, ground lease, etc.). This duties and costs) and gross values (market value before deduction of Summary Report has been prepared for inclusion in the Company’s transfer duties and costs). registration document. The valuations were undertaken by our valuation teams in each of Valuation considerations and assumptions the various countries and have been reviewed by the Pan European valuation teams. In order to estimate the market value for each asset, Information we have not only taken into consideration domestic retail investment transactions but have also considered transactions on a European The Company’s management were asked to confirm that the level. We confirm that our valuations have been prepared in a similar information provided relating to the assets and tenants is complete way to other valuations undertaken in Europe, in order to maintain and accurate in all material respects. Consequently, we have assumed a consistent approach and to take into consideration all the market that all relevant information known by Company employees that could transactions and information available. impact value has been made available to us and that this information is up to date in all material respects. This includes running costs, works The valuations are based on the discounted cash flow method and undertaken, financial elements, including doubtful debt, turnover rents, the capitalization method, which are regularly used for these types lettings signed or in the process of being signed and rental incentives, of assets. in addition to the list of let and vacant units. Our valuations were performed as of December 31, 2017. Floor areas Reference documents and general principles We have not measured the assets and have therefore based our We confirm that our valuations were performed in accordance with the valuations on the floor areas that were provided to us. appropriate sections of the 9th Edition of the RICS Valuation Standards (the “Red Book”). This is an internationally accepted valuation basis. Environmental analysis and ground conditions Our valuations are compliant with the IFRS accounting standards and We have not been asked to undertake a study of ground conditions IVSC guidance. The valuations have also been prepared on the basis nor an environmental analysis. We have not investigated past events in of the AMF recommendations on the presentation of valuations of order to determine if the ground or buildings have been contaminated. real estate assets owned by listed companies, published on February Unless provided with information to the contrary, we have worked on 8, 2010. Furthermore, they take into account the recommendations the assumption that the assets are not and should not be affected of the Barthès de Ruyter report on valuation of real estate owned by by ground pollution and that the state of the land will not affect their listed companies, published in February 2000. current or future usage. We confirm that we have prepared our valuations as external and independent valuers as defined by the Red Book standards published by RICS. We confirm that the appraisal has been performed in accordance with the principles of IFRS 13: we have appraised the highest and best use of each asset. 22 KLÉPIERRE 2017 REGISTRATION DOCUMENT