The Market

Sustainable Growth of the Dutch and German commercial real estate market has bottomed out to a state of minor growth. The main reason for this trend is that Small and Medium Enterprises (SME's) in the Netherlands and Germany are having great difficulties in finding suitable commercial real estate space to buy or rent. The combination of online (virtual) and offline (physical) business has changed the way companies interact and collaborate with each other and their costumers. Shorter time to market cycles and lower margins are forcing companies to specialize in a specific field and outsource all non-specific business process and services. The uniqueness of RIIC's concept is that they cater for a growing demand for sector specific complimentary business services combined with suitable commercial real estate - also on a short lease basis. The current competition is only offering bare square meters instead of square meters in combination with value added services and close proximity of peer companies. RIIC's current portfolio of tenants includes governmental and A-rated companies on long term lease contracts in the same buildings as the companies requesting for solutions provided under an (outsourced) business centre concept.

The market opportunities within the Euro denominated market are however huge, as the market trend for professional (re-)development of the real estate markets in former Eastern European countries is very promising. RIIC's management considers Hungary as one of the first Eastern European countries already showing its growth and stable economy.

Using the stable markets in The Netherlands and Germany for the cash flow generating projects in combination with the real estate development projects in the former Eastern European countries is one of the back bones of RIIC's competitive advantage.

RIIC has hired the International Property Consultants King Sturge (www.kingsturge.com) to perform a market study on the trends within Europe in general and The Netherlands, Germany and Hungary specifically. This report dated May 2, 2008 can be made available upon request.