PSERS OPPORTUNISTIC REAL ESTATE PROGRAM ...

estate investment in these three countries has increased from $125 million in 2001 to
$700 million in 2005, albeit from a low base. With a combined 263 million people and
$883 billion in GDP, which represents roughly the size of the Spanish economy, these
three countries alone have a population greater than half of the total current EU
population but less than ten percent of total EU GDP. They also represent a major land
mass and have significant natural resources.
Liquid Markets. Europe has seen a significant increase in real estate liquidity over the
last few years, with overall transaction volume more than doubling from €79 billion in 2000
to €164 billion in 2005. The U.K. and Germany together account for over two thirds of
2005 volume (€111 billion), underpinning their position as the leading European real
estate markets. Transaction volume in CEE markets, including Russia, Turkey and the
Ukraine, has also increased dramatically; transaction volume has grown over fifteen times
from €460 million in 2000 to €7.1 billion in 2005. Despite the large increase of
transactions in CEE, however, these markets still only represent 4% of European overall
transaction volume. Newly integrated Eastern European countries will continue to mature
and provide markets where high demand will create value on exit from an investment. As
evidenced by the increased flows of capital into CEE, these markets appear to be now
attracting institutional investors.
MANAGEMENT OF THE FUND
William Mack, Founding Partner. Mr. Mack is a founder and Senior Partner of Apollo
Real Estate Advisors and is the President of the corporate general partners of the Apollo
Real Estate Investment Funds. With 42 years of experience in the U.S. real estate
industry, he is recognized as one of its leading figures. Mr. Mack is also a Senior Partner
of the Mack Organization, a national owner of industrial buildings and other income
producing real estate investments. Mr. Mack serves as Chairman of the Board of
Directors of Mack-Cali Realty Corporation and has been a Director of Mack-Cali since the
1997 merger of the Mack Organization's office portfolio into Mack-Cali, one of the largest
publicly traded real estate investment trusts in the United States. Mr. Mack also serves as
the Vice Chair of the University of Pennsylvania Board of Trustees, as Vice Chairman of
the University of Pennsylvania's Wharton School of Business, as Vice Chairman of the
North Shore Long Island Jewish Health System and as Chairman of the Board of the
Guggenheim Foundation. Mr. Mack attended the University of Pennsylvania's Wharton
School of Business and received a B.S. in Business Administration from the New York
University School of Business.
Lee Neibart, Senior Partner. Mr. Neibart has been a Partner of Apollo Real Estate
Advisors since 1993. From 1989 to 1993, Mr. Neibart was with the Robert Martin
Company, most recently as Executive Vice President and Chief Operating Officer. Robert
Martin was a real estate development and management firm with a portfolio of
approximately seven million square feet of commercial real estate. Mr. Neibart is a
Director on various boards relating to Apollo's investment portfolio. Mr. Neibart also
serves on the Advisory Boards of both The Enterprise Foundation and The Real Estate
Institute of New York University. He is also a past President of the New York Chapter of
the National Association of Industrial and Office Parks. Mr. Neibart graduated with a BA
from the University of Wisconsin and an MBA from New York University.
William Benjamin, Managing Partner. Mr. Benjamin has been associated with Apollo
since 1995 and established the London office in 2000. He has been the primary director
of Apollo's European activities since their commencement in 1995, and Apollo's Indian
activities since their commencement in 2005. From 1986 to 1995, Mr. Benjamin was with
PSERS Private Investments
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