Investor-Oriented Structure

The Project has been structured specifically to align investor protection with operational execution.

Key structural strengths include:

• no development debt
• conservative refinance assumptions
• investor-first waterfall
• asset-backed downside protection
• phased expansion capability
• flexible refinance timing

Refinance-Led Capital Recovery

Unlike traditional development projects reliant on exit, the Project prioritises:

operational stabilisation and refinance-based capital recovery.

At stabilisation:

• debt introduced only after income stabilisation
• target LTV ~60%
• estimated refinance proceeds €4.6M–€4.8M
• substantial investor capital returned

This significantly reduces residual equity exposure while retaining ownership of a stabilised income-producing asset.

Market Positioning

The Project targets a structurally undersupplied regional market characterised by:

• fragmented storage supply
• low institutional penetration
• strong SME density
• increasing residential mobility
• limited modern facilities

This positioning allows:

• attractive yield-on-cost economics
• reduced institutional competition
• operational pricing flexibility
• scalable regional expansion potential

ARVOR BOX has been intentionally structured as:

a refinance-led regional real-asset platform.

The Project is not dependent on:

• speculative appreciation
• rapid resale
• aggressive leverage
• institutional debt during development

Instead, value creation is driven through:

• disciplined execution
• operational lease-up
• NOI stabilisation
• long-term income generation

The platform strategy allows:

• repeatable development
• operational consistency
• scalable portfolio construction
• enhanced long-term exit optionality

French Market Undersupply

The French self-storage market remains materially underpenetrated relative to the UK and US markets.

Outside major metropolitan areas, supply remains fragmented and often operationally outdated.

Within Brittany and the wider Rennes catchment:

• modern self-storage provision remains limited
• institutional operators remain concentrated in major urban centres
• secondary markets remain underserved

Structural Demand Drivers

Demand growth is supported by:

Residential Drivers

• downsizing
• relocation
• urban density pressure
• temporary storage demand

SME & Trade Drivers

• flexible storage needs
• equipment and inventory storage
• avoidance of long commercial leases
• contractor and trades demand

E-Commerce & Logistics Drivers

• small-scale fulfilment activity
• inventory management
• regional logistics support

These structural trends support long-term demand growth beyond cyclical real estate conditions.

Capital Structure

The Project is funded on a fully equity-funded basis at entry.

Key Principles

• no development debt
• no covenant exposure during construction
• no lender pressure during lease-up
• full execution flexibility

Debt is introduced only after stabilisation and proven operational performance.

Equity Participation

The Operator’s equity participation ensures direct alignment with:

• delivery
• operational performance
• stabilisation
• long-term asset value creation

Investor-First Distribution Waterfall

Distributions are structured as follows:

1. Return of investor capital
2. Preferred return (~8%)
3. Profit participation pro rata

This ensures:

• priority investor protection
• alignment of incentives
• performance-based operator participation

The structure has been designed specifically around downside protection.

No Development Debt

The absence of development leverage removes:

• refinancing risk during construction
• covenant pressure
• lender execution dependency
• forced asset sale exposure

Conservative Underwriting

The model assumes:

• gradual lease-up
• conservative occupancy ramp
• realistic local pricing
• fully loaded French cost structure

Flexible Refinance Timing

Refinance is optional, not mandatory.

If market conditions are temporarily unfavourable:

• the asset can continue operating
• refinance can be delayed
• recurring income remains intact

Income-Producing Hold Viability

Even under downside scenarios, the asset remains:

• operationally viable
• income generating
• asset-backed

This significantly reduces downside exposure relative to speculative development models.

Core Asset

The Project involves the refurbishment and conversion of an existing warehouse into a modern self-storage facility.

Internal Facility

The internal units form the primary underwriting basis for the investment.

External Expansion Capability

The site additionally includes approximately 4,000 m² of external container storage area.

This component is targeted toward:

• tradespeople
• SMEs
• contractors
• equipment storage users

Container deployment is phased according to demand and is not required to support the base underwriting assumptions.

Operational Infrastructure

The facility is designed around modern operational efficiency and security.

Security Features

• full perimeter fencing
• controlled access gates
• CCTV system
• perimeter lighting
• intrusion systems

Operational Systems

• access control
• flexible pricing capability
• scalable management systems
• operational monitoring

The operating structure supports:

• lean staffing
• high operating margins
• scalable operational performance

Rennes Economic Catchment

Rennes is one of western France’s strongest regional economic centres.

The wider catchment benefits from:

• population growth
• strong SME density
• regional economic activity
• logistics connectivity
• residential mobility

Secondary Market Strategy

The Project deliberately targets a secondary catchment rather than a saturated prime urban core.

This strategy provides:

• lower acquisition basis
• stronger yield-on-cost economics
• reduced institutional competition
• pricing flexibility
• improved long-term operational margins

Demand Diversification

The Project benefits from diversified demand sources:

Residential Demand

• moving and relocation
• downsizing
• temporary storage
• urban space limitations

Commercial Demand

• tradespeople
• contractors
• SMEs
• e-commerce operators
• equipment and inventory storage

This diversification reduces reliance on any single customer segment.

PROJECT TIMELINE & DELIVERY ROADMAP

Indicative Delivery Timeline

Current Transaction Position

The Project was previously secured under an exclusivity arrangement which concluded on 28 May 2025.

The exclusivity period enabled substantial advancement of:

• Project planning
• Development strategy
• Capital structuring
• Operational platform design
• Investor engagement

The Project remains available for engagement with aligned strategic investors and operator-partners capable of supporting acquisition, development and long-term platform growth.

Execution Sequence

The Project follows a deliberately simplified execution structure designed to reduce:

• delivery complexity
• financing dependency
• operational fragmentation
• timeline exposure

The execution model follows:

Acquisition → Refurbishment → Operational Launch → Lease-Up → Stabilisation → Refinance

This sequence has been intentionally structured around:

• controlled capital deployment
• operational accountability
• accelerated income generation
• refinance-led capital recovery

INVESTOR RIGHTS & PROTECTION SUMMARY

Investor Protection Philosophy

The governance structure has been intentionally designed to ensure that:

• investor capital remains asset-backed
• major strategic decisions remain protected
• operational execution remains efficient
• future platform growth does not dilute SPV ownership

The structure therefore balances:

• operational agility
• investor oversight
• scalable platform expansion
• long-term alignment

WHY ARVOR BOX CAN EXECUTE

Operator-Led Execution Model

ARVOR BOX is structured as an execution-focused operating platform rather than a passive development vehicle.

The Project is led directly by Lars Pedersen through:

• active project mobilisation
• direct operational oversight
• lease-up responsibility
• pricing and occupancy management
• contractor coordination
• systems implementation
• operational performance management

Execution-Focused Structure

The operating structure has been intentionally designed to:

• centralise operational accountability
• preserve execution speed
• minimise decision fragmentation
• maintain direct operator involvement throughout stabilisation

Unlike sponsor structures dependent upon external operators or fragmented management, ARVOR BOX maintains direct operational control throughout:

• development
• launch
• lease-up
• stabilisation

Practical Commercial Positioning

The Project is positioned around:

• disciplined execution
• conservative underwriting
• operational scalability
• income-driven value creation

The focus is intentionally commercial rather than speculative.

The objective is not rapid resale or aggressive leverage, but the creation of:

a scalable, income-producing real asset platform capable of long-term regional expansion.

Long-Term Alignment

The Operator’s long-term economic participation is dependent primarily upon:

• successful execution
• occupancy growth
• NOI stabilisation
• refinance achievement
• future platform performance

This creates direct alignment between:

• investor outcomes
• operational execution
• long-term value creation

Market Characteristics

The local market remains characterised by:

• fragmented supply
• limited purpose-built modern facilities
• operationally outdated competitors
• absence of dominant institutional operators

This creates a favourable environment for:

• rapid market positioning
• operational differentiation
• long-term occupancy growth

Pricing Validation

Regional benchmarking indicates:

The underwriting therefore remains:

• market aligned
• operationally achievable
• conservatively positioned

Competitive Advantage

The Project differentiates itself through:

• modern facility quality
• operational scalability
• flexible unit mix
• external storage capability
• security standards
• SME-focused accessibility

1. Catchment Evidence

The Rennes catchment provides a strong demographic and economic base for a modern self-storage facility. Rennes city recorded 227,830 inhabitants in 2022, while Rennes Métropole recorded 473,973 inhabitants, with Rennes Métropole growing at an average annual rate of 1.1% between 2016 and 2022.

This supports the project’s residential demand thesis through moving, downsizing, household overflow, renovation, student mobility and temporary storage needs.

2. SME & Business Demand

Rennes Métropole also demonstrates a substantial business base. Public SIRENE/INSEE-linked data identifies enterprise and establishment records across Rennes Métropole, while local economic datasets show a broad commercial base across services, construction, trade, logistics and related activity.

This supports demand from:

• SMEs
• tradespeople
• contractors
• e-commerce users
• equipment storage users
• archive storage users
• regional service businesses

This is strategically important because ARVOR BOX is not dependent purely on residential storage demand.

3. Existing Competitor Evidence

The Rennes market is not empty, but it remains fragmented. Current identified market participants and storage alternatives include:

• Stocker Seul Rennes, located at 12 quai Robinot de Saint-Cyr, Rennes.
• Locakase Rennes, offering secured storage boxes from 1m² to 50m² with flexible duration.
• Annexx, which states it is opening a new storage facility in Rennes.
• Selfstock facilities serving the wider Ille-et-Vilaine / Brittany region, including locations outside Rennes.
• Storabble identifies 12 storage solutions near Rennes, including self-storage, storage rooms, garages and other storage formats.

This confirms market existence while also showing fragmentation rather than dominance by a single institutional operator.

4. Pricing Evidence

Current local and regional pricing evidence supports the ARVOR BOX underwriting assumption of approximately €21/m²/month.

Selfstock shows storage pricing in the wider Rennes / Brittany region starting from approximately €69/month for boxes of 3–14m² in nearby markets.

French self-storage pricing benchmarks indicate smaller units can range from approximately €15–€25/m²/month, with larger units priced lower per m², supporting the use of a blended average assumption.

The ARVOR BOX pricing assumption of ~€21/m²/month therefore sits within a credible market-supported range.

5. Drive-Time Catchment Logic

Because the exact site location is not being disclosed at first-stage memorandum level, the drive-time analysis should be presented directionally rather than with a pin-pointed address.

The investment logic assumes a practical catchment based on:

• 10–15 minute local access for residential and SME users
• 20–30 minute regional access for trade, contractor and business users
• wider Brittany accessibility for external container and commercial storage demand

This is appropriate for a self-storage asset positioned around both residential and commercial users.

6. Market Validation Summary

The evidence supports the core ARVOR BOX thesis:

Rennes has a large and growing population base, a substantial SME and business ecosystem, existing self-storage demand, fragmented competitor provision, and pricing evidence broadly aligned with the project’s underwriting assumptions.

The market is therefore not speculative. It is an existing but still underdeveloped regional self-storage market with room for a professionally positioned, operator-led facility.

Self-storage remains one of the strongest-performing alternative real estate sectors globally due to:

• recurring monthly income
• fragmented customer bases
• inflation-adjustable pricing
• defensive demand characteristics
• low operational overhead
• operational scalability

The sector additionally benefits from:

• short-term customer agreements
• flexible pricing capability
• relatively resilient occupancy trends

These characteristics create a stable income-oriented operating profile.

Several structural trends support current market timing.

Rising French Market Adoption

Self-storage adoption in France continues to expand as consumer and SME behaviour evolves.

Secondary Market Supply Gaps

Institutional development remains concentrated primarily within major urban centres.

Secondary catchments therefore continue to offer:

• stronger yield spreads
• reduced competition
• lower entry cost

SME Flexibility Demand

Businesses increasingly require:

• flexible storage
• short-term commitments
• operationally efficient space

This directly supports the Project’s positioning.

Alternative Real Asset Demand

Investors continue increasing allocation toward:

• operational real estate
• defensive income assets
• scalable alternative sectors

Self-storage continues benefiting from this trend.

Refurbishment-Led Execution

The Project follows a refurbishment-led development strategy designed to minimise:

• planning complexity
• construction risk
• timeline exposure
• capital intensity

This allows:

• faster operational launch
• lower development risk
• controlled capital deployment

Development Scope

Works include:

• warehouse conversion
• unit fit-out
• access systems
• insulation upgrades
• external preparation works
• security systems
• operational infrastructure

Delivery Model

Developer

The developer acts solely as:

• asset seller
• construction contractor

The developer:

• receives fixed margin compensation
• holds no equity
• has no operational role post-completion

Operator

The Operator is responsible for:

• on-site oversight
• coordination of fit-out
• operational mobilisation
• lease-up execution
• pricing strategy
• ongoing operational performance

This creates:

• accountability
• operational continuity
• aligned execution incentives

Total Project Cost

Financial Discipline

The Project structure prioritises:

• transparent capital deployment
• strict cost control
• operational oversight
• disciplined execution

The absence of development debt materially simplifies project execution.

Lease-Up Profile

The lease-up assumptions reflect:

• controlled market penetration
• pricing optimisation over time
• realistic demand absorption

Revenue Profile

The underwriting is based primarily on the internal storage component.

Container storage provides supplementary upside.

Operating Costs

The operating model incorporates:

• staffing
• employer social charges
• utilities
• insurance
• administration
• maintenance
• security systems

Operating Cost Ratio:

~35–40%

NOI Profile

Projected stabilised NOI:

~€480K–€520K annually

This supports:

• stable recurring income
• refinance capability
• long-term asset value growth

Valuation Framework

The assumptions remain conservative relative to stabilised operational performance.

Occupancy Assumptions

The financial model assumes a gradual and operationally disciplined lease-up profile:

These assumptions are not based upon aggressive market capture expectations but rather on a combination of market evidence, operational strategy, pricing flexibility and diversified demand drivers.

Why The Occupancy Assumptions Are Considered Achievable

The ARVOR BOX lease-up strategy has been structured around proven self-storage operating principles rather than speculative growth assumptions.

The Project benefits from four key drivers:

• Existing market demand
• Undersupplied regional positioning
• Diversified customer acquisition
• Active revenue management

Together these factors support the projected occupancy trajectory.

Market Demand Validation

The Rennes catchment represents one of the strongest regional economic centres in western France, serving both residential and commercial demand.

Demand is expected to originate from:

Residential Customers

• Moving and relocation
• Downsizing
• Property renovation
• Student and temporary accommodation transitions
• Household overflow storage

Commercial Customers

• Tradespeople
• Contractors
• SMEs
• E-commerce businesses
• Inventory storage users
• Equipment and archive storage customers

The Project therefore benefits from multiple independent demand sources rather than reliance on a single customer segment.

Competitive Positioning

Although self-storage facilities exist within the wider Rennes market, supply remains fragmented and varies significantly in age, quality, accessibility and operational sophistication.

ARVOR BOX is designed to differentiate itself through:

• Modern facility presentation
• Flexible unit mix
• Strong security standards
• External storage capability
• Professional revenue management
• SME-focused accessibility

The inclusion of approximately 4,000 m² of external storage provides an additional customer segment not always served by traditional self-storage facilities.

This broadens the addressable market and supports occupancy growth.

Marketing Strategy

The lease-up model assumes active operational management from launch rather than passive customer acquisition.

Customer acquisition channels are expected to include:

Digital Marketing

• Google Search
• Google Maps
• Local SEO
• Paid Search Campaigns
• Online Directory Placement

Local Commercial Outreach

• Tradespeople
• Construction businesses
• Local SMEs
• Logistics operators
• Estate agents
• Relocation services

Partnership Marketing

• Removal companies
• Property professionals
• Housing service providers
• Business networks

This diversified marketing strategy reduces dependence on any single lead source and supports consistent occupancy growth.

Pricing Strategy

The underwriting assumes an average achieved rental rate of approximately €21/m²/month.

The pricing model incorporates active revenue management rather than fixed pricing.

Early Lease-Up Phase

During initial occupancy growth:

• Promotional incentives may be utilised selectively
• Introductory pricing may be offered on specific unit types
• Marketing campaigns may support rapid market penetration

Stabilisation Phase

As occupancy increases:

• Pricing is progressively optimised
• Promotional dependency reduces
• Revenue per occupied square metre increases

This approach mirrors established self-storage operating practices and supports both occupancy growth and long-term NOI optimisation.

Operational Focus

The ARVOR BOX model is based on the principle that self-storage is fundamentally an operational business rather than a passive real estate investment.

Occupancy performance is expected to be driven through:

• Active customer acquisition
• Dynamic pricing management
• Customer retention initiatives
• Operational responsiveness
• Direct operator oversight

The Operator remains directly responsible for lease-up execution, occupancy growth and revenue optimisation throughout the stabilisation period.

Conclusion

The occupancy assumptions of approximately 45% in Year 1, 70% in Year 2 and 85–90% by Year 3 are considered achievable due to:

• Existing market demand within the Rennes catchment
• Diversified residential and SME customer bases
• Competitive facility positioning
• Active marketing strategy
• Flexible revenue management
• Direct operator-led execution

The assumptions are intentionally structured as realistic operational targets rather than aggressive growth projections and remain consistent with the Project's conservative underwriting philosophy.

Purpose

The financial model assumes a stabilised Net Operating Income (NOI) of approximately €500,000 per annum.

This section provides a simplified operating bridge illustrating how the projected NOI is derived and demonstrates that the underwriting remains grounded in realistic occupancy, pricing and operating cost assumptions.

Stabilised Operating Assumptions

Internal Net Lettable Area:
3,297 m²

Target Stabilised Occupancy:
85–90%

Average Achieved Occupancy Assumption:
87.5%

Average Rental Rate:
~€21/m²/month

External Storage Area:
~4,000 m²

Revenue projections are intentionally conservative and reflect achievable market pricing within the Rennes catchment.

Revenue Bridge

Internal Self-Storage Revenue

3,297 m² × 87.5% occupancy × €21/m²/month × 12 months

= Approximately €727,000 per annum

External Container Storage Revenue

The external storage component provides additional income potential from:

• Tradespeople
• Contractors
• SMEs
• Equipment storage users

Stabilised external storage revenue assumption:

≈ €100,000–€130,000 per annum

Total Stabilised Revenue

For underwriting purposes, ARVOR BOX assumes a stabilised revenue range of approximately €800,000–€860,000 per annum.

Operating Cost Structure

The operating model reflects a professionally managed facility incorporating:

• Staffing and employer social charges
• Utilities
• Insurance
• Administration
• Maintenance
• Security systems
• Software and operating systems
• Marketing and customer acquisition
• Professional services

Operating Cost Ratio

The model assumes a stabilised operating cost ratio of approximately 35–40% of gross revenue.

This range reflects:

• French employment costs
• Local operating requirements
• Conservative cost provisioning
• Long-term operational sustainability

Operating Cost Bridge

Target Stabilised NOI

The Project therefore targets a stabilised NOI of approximately:

€500,000 per annum

This figure sits comfortably within the projected operating range and remains consistent with:

• Conservative occupancy assumptions
• Market-supported pricing
• Fully loaded operating costs
• Professional facility management

Sensitivity Analysis

The NOI target is not dependent upon perfect execution.

Illustrative Scenarios

This demonstrates that the Project remains operationally viable across a range of realistic occupancy outcomes.

Conclusion

The projected stabilised NOI of approximately €500,000 is supported by:

• 3,297 m² of internal self-storage accommodation
• Diversified internal and external revenue streams
• Conservative occupancy assumptions
• Market-supported pricing
• Fully loaded operating costs

The NOI target is therefore considered achievable without reliance upon aggressive pricing assumptions, excessive leverage or unrealistic occupancy expectations.

Core Return Mechanism

The Project is fundamentally structured around:

Development → Stabilisation → NOI Growth → Refinance → Capital Return

This allows:

• early capital recovery
• reduced residual risk exposure
• retention of income-producing asset ownership

Refinance Assumptions

Debt is introduced only after:

• income stabilisation
• proven operational performance
• financeable NOI profile

Post-Refinance Position

Following refinance:

• Approximately €4.6M–€4.8M of refinance proceeds potentially generated
• Approximately 74–77% of total project capital potentially returned
• Recurring operating income retained
• Residual equity materially de-risked
• Continued participation in future asset appreciation and income growth

Based upon the Project's estimated stabilised value of €7.7M–€8.0M and a conservative refinance assumption of approximately 60% loan-to-value, the refinance strategy has the potential to return a substantial proportion of invested capital while retaining ownership of the stabilised income-producing asset.

This creates a balanced long-term ownership structure combining capital recovery, recurring income and continued exposure to future value creation.

Lower Occupancy Scenario

Under lower stabilised occupancy (~60–65%):

• the asset remains operationally viable
• recurring income continues
• refinance timing may extend
• investor capital remains asset-backed

Delayed Lease-Up

If stabilisation extends beyond 36 months:

• no covenant pressure exists
• refinance timing remains flexible
• hold strategy remains viable

Yield Expansion Scenario

If market yields soften:

• refinance may be delayed
• operational viability remains intact
• income generation continues

Structural Protection

Downside protection is achieved through:

• full equity funding
• conservative underwriting
• flexible refinance timing
• phased expansion capability
• operationally viable hold-case structure

Sponsor & Project Lead

The Project is led by Lars Pedersen, an operator-led sponsor focused on:

• operational execution
• systems implementation
• performance optimisation
• commercial management
• scalable operational structures

Execution Background

The Operator’s experience includes:

• operational restructuring
• revenue optimisation
• organisational transformation
• multi-stakeholder coordination
• operational systems implementation

The focus throughout has been:

practical execution and measurable performance improvement.

Relevance to Self-Storage

The self-storage sector is fundamentally operationally driven.

Performance depends primarily on:

• occupancy management
• pricing discipline
• customer retention
• operational efficiency
• margin optimisation

The Operator’s background aligns directly with these requirements.

Operator Alignment

The Operator:

• remains directly involved through stabilisation
• holds minority equity participation
• is operationally accountable for delivery
• participates primarily through long-term performance

This ensures strong alignment with investor outcomes.

Purpose

The ARVOR BOX business model is built around direct operational execution rather than passive asset ownership.

To ensure successful delivery, launch, lease-up and stabilisation of the Rennes facility, the Project includes a dedicated allocation for both:

• Operational Platform Establishment
• Operator Mobilisation & Management Capacity

Together these costs provide the operational infrastructure and full-time execution capability required to transform the Project from a completed development into a stabilised income-producing self-storage business.

Allocation Overview

Operational Platform Establishment (€45,000)

This allocation funds the infrastructure required to establish and operate the ARVOR BOX platform.

Key components include:

• Company formation and corporate registrations
• Legal documentation and governance setup
• Accounting and compliance infrastructure
• Self-storage management software
• CRM systems
• Customer communication systems
• Website and digital infrastructure
• Operational reporting systems
• Access-control integration
• Initial launch marketing infrastructure

The objective is to establish a scalable operating platform capable of supporting both the Rennes facility and future regional expansion.

Operator Mobilisation & Management Capacity (€75,000)

The Project requires dedicated full-time operator involvement from acquisition through stabilisation.

This allocation supports:

• Relocation to the Rennes market
• Operational deployment during development
• Project mobilisation
• Contractor coordination
• Operational launch preparation
• Lease-up execution
• Occupancy management
• Revenue optimisation
• Investor reporting
• Business development activity
• Initial management capacity prior to stabilised cashflow

The allocation is designed to ensure that operational execution is fully resourced throughout the critical development and lease-up period.

Strategic Rationale

Self-storage is fundamentally an operating business.

Long-term value creation depends upon:

• Occupancy growth
• Revenue management
• Customer acquisition
• Operational efficiency
• NOI optimisation

The Project therefore requires both operational infrastructure and dedicated management capacity from the outset.

Investor Alignment

The allocation is not structured as a development fee or sponsor extraction mechanism.

Instead, it represents a disciplined investment into the resources required to:

• Launch the facility
• Execute lease-up
• Achieve stabilised occupancy
• Deliver targeted NOI
• Support refinance objectives

The Operator's long-term economic participation remains directly linked to project performance, stabilisation and long-term value creation.

Conclusion

The combined €120,000 allocation provides the operational foundation required to deliver the Project's investment strategy:

Develop → Launch → Lease-Up → Stabilise → Refinance → Hold

and ensures that both the platform infrastructure and operator execution capability are fully funded during the critical early stages of the Project.

Overview

The Project has been intentionally structured using a multi-entity operating framework designed to balance:

• investor capital protection
• operational accountability
• scalable long-term expansion
• asset-level ring-fencing
• platform continuity

The structure separates:

• platform ownership
• operational management
• asset ownership

This separation is deliberate and reflects a structure commonly used within scalable real-asset operating platforms.

The objective is to ensure that:

• investors receive direct asset-level ownership and protection
• operational execution remains centralised and accountable
• future platform expansion does not dilute existing investor asset ownership
• each asset remains independently financeable and ring-fenced

The structure consists of:

1. Platform SAS (Parent Structure)
2. Operating SAS (Management Company)
3. Asset-Level SPV SAS (Ring-Fenced Property Vehicle)

Platform SAS Structure

Ownership & Strategic Purpose

The Platform SAS is wholly owned and controlled by Lars Pedersen.

The Platform SAS is not part of the investor equity participation relating to the Rennes asset SPV.

This distinction is intentional.

The Platform SAS exists to preserve:

• long-term operational continuity
• strategic management infrastructure
• future expansion capability
• platform-level systems and operational processes
• portfolio aggregation capability

The Platform SAS therefore functions as the long-term strategic parent entity for ARVOR BOX.

Importantly, investors are not funding speculative platform overhead or abstract holding-company economics.

Investor capital is deployed directly into the ring-fenced asset-level SPV holding the Rennes facility.

The Operator’s long-term upside through the Platform SAS is therefore dependent primarily upon:

• successful project execution
• operational stabilisation
• refinance achievement
• long-term portfolio growth

This structure aligns the Operator’s economic participation directly with long-term performance rather than short-term fee extraction.

Strategic Rationale for Platform Separation

The separation between platform ownership and asset ownership creates several strategic advantages for investors.

Operational Continuity

Operational systems, management capability, and expansion infrastructure remain stable regardless of future financing activity.

Protection Against Cross-Asset Dilution

Future assets developed within the broader ARVOR BOX platform do not dilute investor ownership within the Rennes SPV.

Simplified Future Expansion

Additional facilities can be integrated efficiently without restructuring existing investor ownership.

Institutional Scalability

The structure supports:

• future refinancing
• portfolio aggregation
• institutional compatibility
• scalable operational management

This creates a cleaner long-term platform structure than repeatedly creating disconnected standalone projects.

Operating SAS Structure

Ownership Structure

The Operating SAS is wholly owned by the Platform SAS.

This creates a clear hierarchy:

Lars Pedersen ↓ Platform SAS (100% Owned) ↓ Operating SAS (100% Owned by Platform SAS) ↓ Operational Management of Asset-Level SPVs

Operational Purpose

The Operating SAS functions as the dedicated operating and management entity responsible for:

• operational execution
• staffing
• lease-up management
• pricing optimisation
• customer acquisition
• operational systems
• centralised administration
• supplier coordination

The Operating SAS does not directly own the real estate assets.

Instead, it operates the facilities under management agreements with each individual asset-level SPV.

Strategic Advantages of Operating Separation

The separation between operations and asset ownership creates important investor protections.

Liability Separation

Operational liabilities remain separated from direct property ownership.

Transparent Asset Ownership

Investors maintain direct visibility into asset-level economics and financing.

Scalability

Operations remain centralised as future facilities are added.

Execution Accountability

Operational responsibility remains clearly identifiable and centralised.

Asset-Level SPV SAS

Ownership Structure

Each storage facility is held within its own dedicated French SAS SPV.

For the Rennes Project:

• investors hold approximately 80–85% ownership within the Rennes asset SPV
• Lars Pedersen retains minority equity participation through the broader ARVOR BOX structure

The Rennes SPV is legally and financially ring-fenced from the wider platform structure.

This structure ensures that investor participation remains directly tied to:

• the underlying asset
• asset-level cashflow
• asset-level valuation growth
• refinance proceeds
• long-term operational performance

Investor Protection Through Ring-Fencing

The SPV structure provides several critical investor protections.

Asset Isolation

Liabilities remain isolated at asset level.

Financing Clarity

Debt and refinance arrangements remain specific to the Rennes asset only.

Protection Against Platform Risk

Future expansion activity does not expose investors to unrelated platform liabilities.

No Cross-Collateralisation

Future assets are intended to remain independently structured.

Asset-Specific Governance

Investors maintain visibility and governance rights specific to the Rennes SPV.

Governance Balance

The structure is designed to balance:

• operational agility
• investor oversight
• execution efficiency
• strategic scalability

Operator Authority

The Operator controls:

• operational execution
• staffing
• leasing
• pricing strategy
• supplier management
• day-to-day operational decisions

This preserves execution speed and operational accountability.

Investor Reserved Matters

Investor approval applies to:

• refinance execution
• asset sale
• new debt introduction
• annual budgets
• material capital expenditure
• ownership changes
• structural amendments
• major deviations from approved business plan

These reserved matters are designed to provide:

• investor oversight
• governance clarity
• capital protection
• strategic transparency

without impairing operational execution.

Economic Alignment

The structure intentionally aligns economic participation with long-term performance.

Investor Position

Investors receive:

• majority ownership within the asset SPV
• direct asset-backed exposure
• priority capital return
• preferred return participation
• refinance participation
• stabilised income exposure

Operator Position

The Operator retains:

• minority asset-level participation
• operational responsibility
• long-term platform ownership
• future platform upside linked to successful execution

This alignment ensures that the Operator’s long-term economic outcome depends primarily upon:

• successful delivery
• operational performance
• stabilisation
• long-term value creation

rather than short-term transactional economics.

Legal Framework

The structure operates under:

• French corporate law
• SAS governance framework
• shareholder agreements
• operating agreements
• management agreements between entities

The governance framework has been intentionally designed to prioritise:

• investor transparency
• enforceability
• operational accountability
• scalability
• institutional compatibility

The Rennes asset represents the foundation of a broader Brittany-focused storage platform.

Long-Term Objective

The strategy targets:

• development of 4–5 regional facilities
• operational integration
• portfolio aggregation
• institutional-scale optionality

Capital Recycling Model

The platform follows a repeatable growth structure:

1. Develop Asset
2. Stabilise NOI
3. Refinance
4. Return Capital
5. Reinvest Into Future Sites

This improves:

• capital efficiency
• scalability
• long-term growth potential

Strategic Advantage

The platform strategy provides:

• operational consistency
• economies of scale
• increased portfolio value
• stronger institutional positioning

The Project maintains multiple exit pathways.

Primary Strategy

Refinance and hold.

Secondary Strategy

Single-asset disposal following stabilisation.

Long-Term Strategy

Portfolio aggregation and institutional sale.

This flexibility reduces dependence on:

• market timing
• forced sale conditions
• single-exit assumptions

The Project has been intentionally structured to minimise:

• financing risk
• development complexity
• covenant exposure
• operational fragmentation
• execution misalignment

Key Mitigations

Development Risk

Mitigated through:

• refurbishment-led structure
• defined scope of works
• operational oversight
• fixed contractor role

Financial Risk

Mitigated through:

• no development debt
• flexible refinance timing
• conservative assumptions

Lease-Up Risk

Mitigated through:

• phased growth assumptions
• diversified demand base
• flexible pricing strategy

Operational Risk

Mitigated through:

• operator-led execution
• direct accountability
• scalable operating systems

ARVOR BOX offers investors:

• exposure to a resilient alternative real estate sector
• refinance-led capital recovery
• recurring operational income
• downside-protected structure
• scalable regional expansion potential

The opportunity is particularly suited to:

• entrepreneurial property investors
• family offices
• strategic real-asset investors
• storage operators
• long-term capital partners

The Project combines:

• conservative execution
• operationally driven value creation
• refinance-led capital recycling
• scalable platform expansion
• long-term real asset optionality

ARVOR BOX is positioned not as a speculative development, but as:

a disciplined, refinance-led, income-producing real asset platform targeting structurally undersupplied regional markets.

The structure has been intentionally designed to prioritise:

• investor capital protection
• operational accountability
• execution discipline
• scalable long-term value creation