NIAM AB

Fees and Compensation

The Funds pay Niam fees for providing them with investment advisory services. Niam generally
charges the Funds an annual investment management fee, payable quarterly in advance, up to
1.5% of aggregate limited partner capital commitments, which, over time, is typically reduced to
up to 1.5% of invested capital. The specific fees charged to each Fund are more fully described
in each Fund’s governing documents. For example, some Funds may also charge one-time
management fees associated with the investments made by the Fund. Niam generally determines
the amount and payment terms for a Fund’s fees when each Fund is formed. Any fees paid to
Niam are exclusive of profits distributions paid to certain affiliates of Niam and fees paid by a
Fund to the custodian, broker, administrator and other service providers of the Fund.

In the event of a termination of the investment management agreement relating to a Fund, Niam
will have the right to all fees accrued up to the date of termination. Any paid but unaccrued fees
will be promptly refunded to the Fund.

Notwithstanding the foregoing, Niam may negotiate or set a management fee different from the
foregoing with respect to any Fund it manages or any investor in such Fund.

Additional information related to the foregoing is set forth below under “Performance-Based
Fees and Side-By-Side Management” and “Brokerage Practices”.

Performance-Based Fees and Side-By-Side Management

Niam does not have any performance-based fee arrangements with the Funds. However, related
persons of Niam generally receive a profits distribution equal to 20% of the net profits earned
from each investor in a Fund that exceed the preferred return set forth in each Fund’s governing
documents. While the Funds have long-term investment strategies, and offer investors preferred
returns, potential investors should note that a performance-based fee arrangement may
nonetheless create a potential conflict of interest and provide an incentive for Niam to make
investments that are riskier or more speculative than would be the case in the absence of such an
arrangement.

Notwithstanding the foregoing, Niam or its affiliates may negotiate or set performance-based
fees or other terms different from the foregoing with respect to any Fund Niam manages or any
investor in such Fund.

Niam may provide investment advisory services to more than one Fund at a time. These Funds
generally will have different return targets. While Niam believes that it is highly unlikely, it is
possible that a particular investment may be suitable for more than one Fund. To mitigate this

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potential conflict of interest, Niam has adopted a conflict resolution policy to help ensure that
investment opportunities are allocated fairly among the Funds over time.

Types of Clients

Niam’s only current clients are the Funds. Investors in the Funds are generally accredited
investors and qualified purchasers, which may include sovereign wealth funds, endowments,
foundations, high net worth individuals, pension and profit sharing plans, and other institutional
investors. The minimum investment commitment required of an investor in a Fund is generally
€10,000,000, although Niam retains the discretion to waive or reduce any minimum investment
requirement.

Methods of Analysis, Investment Strategies and Risk of Loss

Method of Analysis and Investment Strategies

The Funds generally invest in commercial and residential properties with the objective of
providing investors with income and capital growth. Niam Nordic Fund IV, L.P. and Niam
Nordic Fund V, L.P. generally will only invest in properties located in Norway, Sweden,
Finland, Denmark, Estonia, Latvia and Lithuania (the “Nordic and Baltic Regions”). Niam
Nordic Core-Plus generally will only invest in properties located in Sweden, Finland, Norway
and Denmark (the “Nordic Region”).

The Funds primarily invest through wholly-owned entities in real estate and real estate-related
opportunities, however, the Funds may also invest in real estate both directly and indirectly
through the acquisition of controlling interests in companies or joint ventures owning real estate.
Niam utilizes its team of real estate professionals located in regional offices combined with its
wide reaching network to evaluate and select investments based on a strategy supported by an
extensive analysis of the macroeconomics and its impact on the real estate market. Niam’s team
draws upon their long-standing local relationships and experience of investing in certain area to
analyze and interpret the property market on an ongoing basis. The foundation of expertise is
combined with a formal analysis of macroeconomic conditions and their projected impact on the
local property markets in order to shape an investment strategy.

Risk of Loss

While Niam actively manages its portfolios in an effort to achieve returns and reduce risk of loss,
all investment portfolios are subject to risks. Accordingly, there can be no assurance that client

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investment portfolios will be able to fully meet their investment objectives and goals, or that
investments will not lose money.

Below is a description of several of the principal risks that investments made in the Funds face.

    •   Risks of Investing in Real Estate Assets. Where Niam invests client assets in real estate
        assets, such investments are subject to all the risks inherent in investing in real estate
        assets. These risks include, without limitation: illiquidity of real estate investments;
        general and local economic and social conditions; neighborhood values and the adverse
        use of adjacent or neighboring real estate; the supply of, and demand for, properties of
        the type in which a client invests; changes in tax, zoning, building, environmental and
        other applicable laws; real property tax rates; changes in interest rates; governmental
        actions; fluctuation of real estate values; the unavailability or limited availability of credit
        that may render the sale of real estate assets difficult or unattractive; calamities; and acts
        of bad faith. Such risks also may cause fluctuations in operating expenses, which could
        adversely affect the value of client investments in real estate assets. Where client
        investments include debt instruments, such investments are also subject to the risk of
        counterparty default.
    •   Limited Diversification of Investments. The Funds will target investments in countries in
        the Nordic and Baltic Regions or the Nordic Region. The Funds potentially may not have
        a portfolio of investments diversified across the countries in the Nordic and Baltic
        Regions, and investors have no assurance as to the degree of diversification of
        investments according to asset type. Consequently, the performance of the Funds is more
        susceptible to a single country’s regional economic, political, social or other event
        adversely affecting some or all of the Fund’s investments than if the investments were
        more diversified. In addition, the performance of the Funds are more susceptible to
        regional economic, political, social or other event adversely affecting the Nordic or Baltic
        Regions than if the countries and regions in which Funds investment were more
        diversified.
    •   Non-Specified Investments. Niam invests client assets in real estate assets and other
        investments that will generally not be identified to clients prior to such investment.
        Clients must rely on the judgment and ability of Niam with respect to the investment of
        client assets, and will not have an opportunity to evaluate for themselves the relevant
        economic, financial and other information regarding such investments. No assurance can
        be given that Niam will be successful in obtaining real estate assets suitable for
        investment.

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    •   Indemnification of Investment Manager. To the maximum extent permitted by law, the
        Fund will indemnify and hold harmless the Manager, Niam and their respective affiliates,
        directors, officers, employees, agents and shareholders against any claims, liabilities,
        costs and expenses, including reasonable legal fees, incurred by them by reason of their
        activities on behalf of the Fund or the partners thereof in the absence of gross negligence,
        bad faith, fraud, willful default or material breach of the Fund’s governing documents by
        such persons.
    •   Reliance on the Investment Manager and Key Personnel. The successful investment and
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