Castellana Properties Socimi S A : Consolidated Audited Financial Statements - April 2019 to March 2020

Madrid, 23 June 2020

CASTELLANA PROPERTIES SOCIMI, S.A. (the"Company"or "Castellana"), in accordance withArticle 17 of (EU) Regulation No. 596/2014 on market abuse, Article 228 of the consolidated text of the Spanish Securities Market Act, approved by Royal Legislative Decree 4 of 23 October 2015, and all its related provisions, and Alternative Spanish Stock Exchange (Mercado Alternativo

Bursátil, "MAB") Circular 6/2018, hereby gives notice of the following:

OTHER RELEVANT INFORMATION

• 1) Audit report and Consolidated Annual Accounts for the year ended 31 March 2020.

• 2) Audit report and Stand-alone Annual Accounts for the year ended 31 March 2020

• 3) Updated report on the Organization Structure and Internal Control System of the company.

We remain at your complete disposal for any further clarification you may require.

Mr. Alfonso Brunet

Chief Executive Officer

Castellana Properties SOCIMI, S.A.

Castellana Properties Socimi, S.A. and subsidiaries

Independent auditor's report on the consolidated annual accounts for the year-ended March 31, 2020

This version of our report is a free translation of the original, which was prepared in Spanish. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Independent auditor's report consolidated annual accounts

To the shareholders of Castellana Properties Socimi, S.A.:

Opinion

We have audited the consolidated annual accounts of Castellana Properties SOCIMI, S.A. (the Parent company) and its subsidiaries (the Group), which comprise the balance sheet as at March 31, 2020, and the income statement, statement of other comprehensive income, statement of changes in equity, cash flow statement and related notes, all consolidated, for the year then ended.

In our opinion, the accompanying consolidated annual accounts present fairly, in all material respects, the equity and financial position of the Group as at March 31, 2020, as well as its financial performance and cash flows, all consolidated, for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and other provisions of the financial reporting framework applicable in Spain.

Basis for opinion

We conducted our audit in accordance with legislation governing the audit practice in Spain. Our responsibilities under those standards are further described in theAuditor's responsibilities for the audit of the consolidated annual accountssection of our report.

We are independent of the Group in accordance with the ethical requirements, including those relating to independence, that are relevant to our audit of the consolidated annual accounts in Spain, in accordance with legislation governing the audit practice.In this regard, we have not rendered services other than those relating to the audit of the accounts, and situations or circumstances have not arisen that, in accordance with the provisions of the aforementioned legislation, have affected our necessary independence such that it has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Most relevant aspects of the the audit

The most relevant aspects of the audit are those that, in our professional judgment, were considered to be the most significant risks of material misstatement in our audit of the consolidated annual accounts of the current period. These risks were addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these risks.

PricewaterhouseCoopers Auditores, S.L., Torre PwC, Pº de la Castellana 259 B, 28046 Madrid, España

Tel.: [phone], Fax: [phone],www.pwc.es

1

R. M. Madrid, hoja 87.250-1, folio 75, tomo 9.267, libro 8.054, sección 3ª

Inscrita en el R.O.A.C. con el número S0242 - CIF: B-79 031290

Most relevant aspects of the audit

How our audit addressed the most relevantaspects of the audit

Valuation of Investment Property

Investment properties make up 94% of the Group's assets. As described in Note 3.3, the Group applies the fair value model in accordance with IAS 40 and has recognised a negative change in fair value of investment property amounting to €23,355 thousand in the consolidated income statement for 2020, as described in Note 6. Total Investment property recognised in non-current assets on the consolidated balance sheet totals €1,003,490 thousand at 31 March 2020.

The Group recognises the market value of investment property based independent expert valuations. Valuations are performed in accordance with the Appraisal and Valuation Standards published by the Royal Institute of Chartered Surveyors (RICS) of Great Britain and in accordance with the International Valuation Standards (IVS) published by the International Standards Valuation Committee, whose methodology is described in notes 2.3 and 6 to the accompanying consolidated annual accounts.

In calculating the values, the Group considers specific factors such as the lease contracts signed. Similarly, they apply certain assumptions with respect to variables such as discount rates, estimated market rent in order to arrive at a final valuation.

The third party valuers engaged by management have included a material valuation uncertainty clause in their report. This clause highlights that less certainty, and consequently a higher degree of caution, should be attached to the valuation as a result of the COVID-19 pandemic. This represents a significant estimation uncertainty in relation to the valuation of investment properties.

The significance of the estimates and judgements involved in these valuations,For the acquisition of Investment Properties, we verified the key supporting documentation, such as contracts or sale-purchase deeds or other documents affecting the price.

Additionally, we have obtained the valuation of investment properties carried out by independent experts on which we performed the following procedures, among others:

• ‒ Verification of the expert's competence, capacity and independence by obtaining confirmation and corroborating its professional standing in the market.

• ‒ Verifying that the valuations were performed according to accepted methodology.

• ‒ Discussion of the principal key assumptions of the valuation through sundry meetings with the expert valuer and management.

• ‒ Performing selective tests to verify the accuracy of the most relevant data provided by Management to the valuer and used by it in the valuations.

• ‒ Evaluation of consistency of the main assumptions used factoring in existing market conditions.

We considered the adequacy of the disclosures made in note 6 in the consolidated annual accounts. This note explain that there is significant estimation uncertainty in relation to the valuation of investment properties. We discussed with management and obtained sufficient appropriate audit evidence to demonstrate that management's assessment of the suitability of the inclusion of the valuation in the statement of financial position and disclosures made in the consolidated annual accounts was appropriate.

coupled with the fact that a minor difference in percentage terms in the valuation of a property could result in a material figure, means that the valuation of investment properties is considered a most relevant aspect of the audit.

Additionally, we assessed the sufficiency of the information disclosed in the consolidated annual accounts.

As a result, we consider that Management's approach is reasonable and supported by the available evidence.

Otra información: Consolidated management report

Other information comprises only the consolidated management report for the 2020 financial year, the formulation of which is the responsibility of the Parent company´s directors and does not form an integral part of the consolidated annual accounts.

Our audit opinion on the consolidated annual accounts does not cover the consolidated management report. Our responsibility regarding the consolidated management report, in accordance with legislation governing the audit practice, is to evaluate and report on the consistency between the consolidated management report and the consolidated annual accounts as a result of our knowledge of the Group obtained during the audit of the aforementioned financial statements, and does not include information different to that obtained as evidence during our audit. Likewise, our responsibility is to evaluate and report on whether the content and presentation of the consolidated management report is in accordance with applicable regulations. If, based on the work we have performed, we conclude that material misstatements exist, we are required to report that fact.

On the basis of the work performed, as described in the previous paragraph, the information contained in the consolidated management report is consistent with that contained in the consolidated annual accounts for the 2020 financial year, and its content and presentation are in accordance with the applicable regulations.

Responsibility of the directors and the audit and risk committee for the consolidated annual accounts

The Parent company´s directors are responsible for the preparation of the accompanying consolidated annual accounts, such that they fairly present the consolidated equity, financial position and financial performance of the Group, in accordance with International Financial Reporting Standards as adopted by the European Union and other provisions of the financial reporting framework applicable to the Group in Spain, and for such internal control as the directors determine is necessary to enable the preparation of consolidated annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated annual accounts, the Parent company´s directors are responsible for assessing the Group´s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the aforementioned directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

The Parent Company's audit and risk committee is responsible for supervising the process of preparing and presenting the consolidated annual accounts.