Lead Manager

SECTION 3
BUSINESS OVERVIEW
• New investments that are not identified in the BBRE pipeline are assumed to be mezzanine loans earning
fixed returns over the Forecast Period together with establishment and arrangement fees with respect to
these loans. No income from profit shares has been assumed from any new transactions added to the
portfolio in 2005 with such profits unlikely to emerge until a subsequent period
The Japanese business has already met its budget for record revenues in 2004, with a number of transactions
closed, including the realisation of principal investments, the completion of various acquisitions, syndications of
equity in respect of a ski resort and hotel complex and a number of advisory transactions.The transaction
pipeline for the Japanese business continues to be robust and revenues in the remainder of the Forecast Period are
assumed to be generated from a spread of different activities, consistent with the performance so far in 2004.
Furthermore, the Group is currently reviewing the potential launch of a diversified Japanese property investment
product during the last quarter of this year, that may bring forward some of the revenue forecast for 2005 into
2004.
The European business’ transaction pipeline has grown significantly since its pan-European expansion initiative
was launched at the end of 2003. Since January 2004, the Group has committed, via joint ventures, to additional
projects with a total completed value of approximately ¤530 million.This strong growth is forecast to continue
in 2005, with revenues forecasts to be generated principally from the realisation of existing investments and other
transactions that are currently in the Group’s pipeline.
52