Intercontinental Real Estate Corporation

Item 5: FEES AND COMPENSATION

Compensation Method; Fee Schedule; Negotiability

Fees – Funds

Intercontinental receives an asset management fee with respect to each investor’s investment in the

Funds. As of the date of this brochure, the asset management fees generally range from an annual rate
of 0.50% to 1.50% and vary depending on the Fund. Fees are calculated and paid quarterly in arrears.
The governing documents of each Fund state the specific fee schedule for such Fund (including with
respect to any future Fund). Fees within a given Fund are typically not negotiable by the investors.

For certain Funds, Intercontinental may receive an annual performance fee. Performance fees are
calculated and paid upon achievement of performance hurdles set forth in the Fund’s governing
document(s). These hurdles generally take into consideration the financing, refinancing, liquidation or
other disposition of the assets in the Fund.

Fees – Separate Accounts

Fees for activities undertaken on behalf of any separate account clients are typically negotiable.

Fees - QPAM / Consulting Services

Fees for any QPAM or consulting services are typically flat rate fees which are negotiable and
commensurate with the services agreed upon within Intercontinental’s agreement for such services.
Intercontinental could also receive reimbursement for expenses incurred in connection with the
provision of QPAM and consulting services. Fees associated with these services are typically invoiced,
paid in arrears, and determined at inception of the services.

Method of Payment

The method for payment of Intercontinental’s fees is fixed by the terms of each Fund’s governing
documents. Intercontinental’s management fees generally are paid quarterly in arrears. Intercontinental
typically deducts fees from distributions to Fund investors who have invested in its open-end Funds.
Depending on the terms of the Fund, investors may select to have their fees separately invoiced. Fees
for the closed-ends Funds generally are obligations of the Funds and not payable by individual
investors. Performance based fees are payable in accordance with the terms of the governing
documents for those Funds that provide for such a fee. Intercontinental typically bills any separate
account and QPAM clients in arrears for fees incurred.

Other Types of Fees or Expenses

Except as noted in this brochure or in a Fund’s governing documents, investors in the Funds are not
obligated to pay other fees in connection with the advisory services Intercontinental provides to the
Funds although the Funds may pay additional fees to Intercontinental or its affiliates for services that
would otherwise be provided by third parties. The Funds also pay or reimburse Intercontinental for
various expenses incurred in connection with the management and operation of the Fund, which are
described in each Fund’s governing documents and include, among other things, all fees, costs and
expenses incurred in evaluating, developing, negotiating, structuring, acquiring, holding, appraising,
financing, refinancing, disposing of or otherwise dealing with assets pursued for the Funds (whether or
not the Fund actually invests in such asset), including, among other things, “dead deal” costs, travel,
legal, due diligence, reporting, valuation, fund administration, tax and accounting and other expenses.
Such reimbursement is subject to the limitations specified in the offering materials and governing
documents for such Funds, and investors should carefully review those documents before investing.

An investment management agreement between Intercontinental and any separate account or QPAM
client would specify any other fees required to be paid by the client. Any obligation to reimburse

Intercontinental for expenses, however, would be negotiated and outlined in the agreement entered into
between Intercontinental and client.

Pre-Paid Fees

Intercontinental’s fees are generally earned when services are provided and are generally paid in arrears
as described in other parts of this brochure and in the governing documents of the Funds.

Item 7: TYPES OF CLIENTS

As noted above, Intercontinental’s primary clients are the Funds. Intercontinental may also serve as a
real estate investment manager for pension plans regulated by ERISA, government pension plans not
subject to ERISA and other institutional clients, such as trusts, endowments, and foundations. Investors
in the Funds can include all of the foregoing, as well as other entities or individuals that satisfy the
Fund’s minimum investment criteria specified in the Fund’s offering materials.

The minimum initial investment in the Funds sponsored by Intercontinental is typically $2 million (but
ultimately based on the Fund’s offering materials and governing documents), although Intercontinental,
in its sole discretion, may accept (and has accepted) investments of lesser amounts. Intercontinental has
not established a minimum account size for separate account relationships.