Valuation Report 'Matrix Portfolio, Valuation of 13 properties''

Valuation Report ‘Matrix Portfolio,

Valuation of 13 properties’’

prepared for Brack Capital Properties N.V.

May 2013

(Copy)

Matrix Portfolio, Valuation of 13 properties – May 2013

Valuation for accounting purposes only

Copy 1

Contents

1 Brief & Scope of Instruction ................................................................................................................................. 3 1.1 Instruction ................................................................................................................................................................ 3 1.2 Valuer Status ........................................................................................................................................................... 3 1.3 Purpose of Valuation................................................................................................................................................ 4 1.4 Sources of Information ............................................................................................................................................. 4 1.5 Date of Valuation ..................................................................................................................................................... 4 1.6 Inspections ............................................................................................................................................................... 4 1.7 Basis of Valuation .................................................................................................................................................... 4 2 Market Considerations .......................................................................................................................................... 5 2.1 German Economy .................................................................................................................................................... 5 2.2 Retail Investment Market ....................................................................................................................................... 11 2.3 German Retail Warehouses and Retail Parks ....................................................................................................... 14 3 Valuation ............................................................................................................................................................... 22 3.1 Valuation Methodology .......................................................................................................................................... 22 3.2 Valuation Assumptions .......................................................................................................................................... 22 3.3 Valuation Results ................................................................................................................................................... 26 3.4 Sensitivity Matrix .................................................................................................................................................... 27 4 Confidentiality & Publication .............................................................................................................................. 30 Appendix I – Property Reports ...................................................................................................................................... 31 Appendix II – Overview ................................................................................................................................................... 32 Appendix III – General Principles for Valuation ........................................................................................................... 33

(Copy)



Copy 2

Contents cont’d

Figure 1: Retail Transaction Volume Germany ................................................................................................................. 12 Figure 2: Transaction Volume Germany divided by Retail Asset Class ............................................................................ 13 Figure 3: Development of Prime Yields ............................................................................................................................. 13 Figure 4: Prime Yield Development in % ........................................................................................................................... 16 Figure 5: Prime Yield Development in % ........................................................................................................................... 20 Table 1: Transaction Evidence .......................................................................................................................................... 17 Table 2: Transaction Evidence .......................................................................................................................................... 21 Table 3: Inflation forecast Germany .................................................................................................................................. 26

(Copy)



Copy 3

1 Brief & Scope of Instruction

1.1 Instruction

We refer to your instruction, dated 25 April 2013, instructing us to carry out a valuation of the Matrix Portfolio consisting of 13 properties. The portfolio comprises retail parks and self-service department stores. The instruction was ordered by Fred Ganea, Head of Financial Department of Brack Capital Properties N.V.

1.2 Valuer Status

We confirm that the valuation has been carried out by us as external valuers, qualified for the purposes of providing valuations in accordance with the Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors (RICS). We also confirm that we have no conflict of interest relating to the property and that we have valued portfolios of a similar scope as well as larger scope in the course of other mandates.

The project team consists of the following members:

Andrew Groom

Since August 2001 Mr. Groom is head of the Valuation Advisory department in Germany with additional responsibility for valuation business in Austria and Switzerland.

As International Director, Mr Groom leads the overall direction of the Bank, Portfolio, Transaction, Residential and Retail Valuation business lines as well as mortgage lending valuations for German mortgage banks (Team of 50+ consultants).

He is also responsible for providing client management within the scope of major German and international mandates, comprehensive advisory services for real estate portfolios in terms of acquisition and disposal strategies and advising leading banks with regard to risk classification in property financing.

Prior to that he gained management experience leading international advisory departments for CEI Investment London and Drivers Jonas London as well as Berlin. Here he was not only responsible for the valuation department, but also for the investment sector.

Andrew Groom holds a Bachelor of Science with Honours in Estate Management and is also a member of The Royal Institution of Chartered Surveyors (MRICS) and a member of the RICS Valuation Faculty Board, Germany.

He has over 21 years development, valuation and international investment experience as well as over 18 years management experience leading international advisory departments.

Frank Rambow

Since 2007 Frank Rambow is Teamleader of the Bank Valuation Advisory team of Jones Lang LaSalle’s Valuation Department. Here he heads a team of 6 professionals. He currently holds the position of a National Director.

Frank Rambow has lead several buy-side advices and real estate appraisals for single assets as well as portfolios for various clients. All the valuations are conducted according to the IFRS standards.

He is a graduated economist and has over 15 years’ experience in real estate sector, thereof nine years at JLL. Frank Rambow is a member of The Royal Institution of Chartered Surveyors (MRICS).

Georg Charlier

In September 2008, Georg Charlier joined Jones Lang LaSalle Germany, focusing mainly on the valuation of retail and office portfolios/properties. He holds the position of Principal Consultant. Prior to that he was part of the Munich based team of a German Real Estate Investor.

(Copy)



Copy 4

Georg Charlier holds a Diploma of Real Estate Engineering and Management and a certification of the society of investment professionals in Germany. He possesses more than 6 years of consulting experience on the German real estate market.

1.3 Purpose of Valuation

We understand that the valuation is required for financial statement reporting and that the valuation reports will be included in the financial statement of Brack Capital Properties N.V.

1.4 Sources of Information

In preparing this valuation report, we have predominantly relied upon information provided by Brack Capital Properties N.V. We received the documents listed below, which form the basis for our valuation:

Tenancy Schedule as at April 2013

Schedule of non-recoverable costs on an individual property basis

Overview of short-term tenants income, on an individual property basis

List of indexation clauses

Presentation regarding the development potential for the subject property in Neckarsulm

In the event that this information proves to be incorrect or additional information is made available to us, the accuracy of the valuation could be affected. In such case, we reserve the right to amend our opinion of value accordingly.

1.5 Date of Valuation

As specified in your instruction, we have set the valuation date to be 31 March 2013.

1.6 Inspections

For the current valuation, we did not conduct inspections. However, the properties were inspected by us in the scope of the valuation in February 2011.

1.7 Basis of Valuation

The valuation is carried out on the basis of Market Value as defined in the '8th Edition of the Royal Institution of Chartered Surveyors' (RICS) Appraisal and Valuation Manual. This is incorporated into the Jones Lang LaSalle “General Principles Adopted in the Preparation of Valuations and Reports”, which is attached in the Appendix 2. Market Value is defined as:

“The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

(Copy)



Copy 5

2 Market Considerations

2.1 German Economy

GROSS DOMESTIC PRODUCT In the fourth quarter of 2012, the price-adjusted GDP declined by 0.6%. In comparison to a stronger previous quarter, growth in the German economy slowed-down.

In the first three quarters, Germany achieved a considerable increase of 0.5%, 0.3% and 0.2% which led to growth of 0.7% in 2012. The calendar-adjusted increase was 0.9%.

In the previous quarter only domestic consumption achieved growth.

State (+0.4%) and private expenses (+0.1%) increased slightly – in price, seasonal and calendar-adjusted terms, while investment decreased in general. Equipment investment has continued to decrease and is currently -2.0%. In addition, the export sector slowed down in the fourth quarter with the export of goods and services dropping by 2.0%. Imports fell by 0.6%.

As forecasted by the German Institute for Economic Research (DIW), the German economy is expected to generate a slight surplus in the first quarter of 2013, which will accelerate further economic development.

According to the DIW, there is considerable uplift in the sentiment amongst businesses and increased demand from the Eurozone. Furthermore, economic development is supported by growing domestic demand, due to a stable German job market and a recent increase in wages.

Development of gross domestic product (Q1/2010 –Q4/2012) – Seasonally and calendar adjusted

Source: Federal Statistical Office, April 2013

BUSINESS CLIMATE In February 2013, the Ifo Business Climate Index noted its strongest upward movement since July and rose to an index level of 107.4. At the end of March, it was 106.7.

As a result, businesses view the current situation as well as future development more optimistically than they did in previous months.

The business climate in the manufacturing industry has improved because of more optimistic assessments regarding the current business situation. In addition, export demand is expected to be above average on a long-term basis.

Business confidence in the wholesale sector has improved in comparison to the previous month. This characterises the current climate a well as future expectations.

(Copy)



Copy 6

Despite an improved climate in the retail sector, future expectations are characterised by scepticism.

The business climate in the construction industry rose again. The situation has improved slightly and the outlook for the coming months has reached its highest point since German reunification.

The Ifo Business Climate Index for the service sector rose significantly in February.

Despite a current decrease, figures for the next six months are expected to rise from 9.0 points to 19.0.

Ifo – Business Climate Index January - March 2013

Source: Ifo-Institute, April 2013

PRICE DEVELOPMENT According to the Federal Statistical Office (Destatis), the consumer price index for Germany in March 2013 was 1.4% higher than in March 2012 and compared to the previous month increased by 0.5%.

Compared to 2012, the main driver of the price increase in February 2013 was the rise in energy and food costs. Energy prices rose by 3.6% and food prices by 3.1% compared to February 2012.

Had it not been for this, the consumer price index would have only reached 1.1% in February 2013.

Domestic energy prices were mainly influenced by electricity costs, due to the increase in the EEG reallocation charge at the beginning of 2013.

Increased food prices were driven by fruits (+7.2%) and meat (+5.4%). Furthermore, prices increased for bread and cereal products (+2.7%) as well as fish (+2.6%) and candy (+2.3%). Cooking fat and oil on the other hand became cheaper (-2.4%).

(Copy)



Copy 7

Development of inflation rate / consumer price index “original values” (January 2011-March 2013)

Source: Federal Statistical Office, April 2013

LABOUR AND TRAINING MARKETS Unemployment, Unemployment Rate

According to the Federal Employment Agency, the nationwide unemployment rate was 7.3% in March 2013, which was a slight decrease compared to the previous month.

With about 3.1 million people in Germany actively seeking employment, the unemployment situation is similar to that of February and March 2012.

Due to the winter season, the number of unemployed people rose by 18,000 compared to January. This is significantly less than the previous year, when the number rose by 46,000.

All sectors were able to record employment growth in a year-on-year comparison. The highest growth was registered in the business services sector (+168,000), the manufacturing industry (+75,000) and the healthcare and social services sector (+58,000).

Temporary employment services registered 70,000 less employees compared to the previous year.

The long-term unemployment rate (longer than 12 months) increased slightly in comparison to the previous year.

The 1% rise represents 9,000 people gaining employment, bringing the overall number of long-term unemployed people to 1,063,000. While the number of unemployed people has risen overall, the share of people that were unemployed for more than 12 months remained stable, with around 33.7% this year and 33.9% in the previous year.

(Copy)



Copy 8

Development of unemployment (January 2011-March 2013)

Source: Federal Employment Agency, April 2013 PURCHASING POWER Purchasing power is the market-recognised benchmark for determining potential consumption. It delivers key information regarding the regions with the strongest purchasing power; purchasing power can indicate the total of all net revenues per region, while taking state transfer benefits like jobseeker allowance, child and retirement benefits into account.

Furthermore, purchasing power is localised and thereby a relevant indicator for the potential consumption of the population living in a specific community.

Retail Industry: Germany sees significant increase

The GfK purchasing power in Germany for 2013 is estimated to be approx. € 1,610 billion in total.

This is up by 2.9% from the previous year’s figure. The average citizen thereby has a purchasing power of € 20,621 this year, plus a nominal € 554 more to spend on consumer products, rent or cost of living.

Currently, the German Central Bank estimates an inflation rate of 1.5%, which will lead to not only a nominal increase in purchasing power but also a rise in real terms by 1.4%. Positive development in consumer spending is therefore expected.

However, not all demographic groups will benefit; retirement benefits are likely to fall below inflation in 2013 and cause a loss in purchasing power.

Nevertheless, most industries are expected to develop positive income growth.

German Federal State Comparison: Baden-Württemberg overtakes Hessen

This year Hamburg is at the top with 110.4 index points followed by Bavaria with 109.2. Baden-Württemberg comes in third (Index: 107.2), overtaking Hessen (107.1 points).

Six of the 16 federal states have an above average purchasing power per capita. Rhineland-Palatinate represents the national average.

(Copy)



Copy 9

The federal states in eastern Germany remain below the national average. Saxony-Anhalt is last with €16,970 per capita.

Urban and Rural District Comparison:

The top ten urban and rural districts remain the same, with the exception of the first two districts exchanging position.

Starnberg (Index: 147.9) took over the top position from Hochtaunuskreis (Index: 146.3).

The two districts have swapped the top two positions before, with Starnberg ahead of Hochtaunuskreis in 2008. Munich and Erlangen are the only urban districts in the top ten ranking, which indicates that the wealthiest people still live in exurban areas.

Hamburg as a city-state is the second most populous urban district and, as mentioned before, is at the top of the federal states ranking. However, Hamburg ranks 54th in the overall urban and rural district comparison. In a comparison of urban districts Hamburg ranks 18th.

Compared to previous years, there are changes at the bottom of the ranking as well.

The main reason for this is the restructuring of urban and rural districts in Mecklenburg-West Pomerania. Some of the weaker districts were combined and restructured.

The rural district Görlitz in Saxony is last this year, whereas, in previous years, north-eastern districts had the lowest figures.

Next to Görlitz, the Elbe-Elster district in Brandburg (Index:77.3) and the Kyffhäuser district in Thuringia (Index: 77.4) showed the weakest results.

Gap between rich and poor

People in Görlitz have an average €15,687 per capita to spend (Index 77.4), which is almost half of the average sum that a resident in Starnberg has on hand.

The gap between rich and poor spreads from almost 50% above average in Starnberg to 24% below the national average in Görlitz.

Strong districts are often located near weak ones. For example, the difference in euros per capita between the urban districts of Düsseldorf and Duisburg (30 km apart) is € 7,100, a 29% difference.

(Copy)



Copy 10

Purchasing Power in Germany 2013

Source: GfK Regional Statistics

(Copy)



Copy 11

DEMOGRAPHIC CHANGE Population development in the coming years can be described with three key terms: fewer, older, and more multicultural. In addition to this, the population structure will change significantly.

The effect of this demographic change on the economy and competitiveness as well as on the future of the social welfare system (old age, unemployment and health insurances) continues to cause debates.

It is evident that Germany’s population has been dropping since 2003. This decrease will continue and intensify.

At the end of October 2012, approximately 82 million people were living in Germany, which is 0.2% more than at the end of 2011. The figure was approx. 81.5 million at the end of 2010.

In 2060, the population will drop to between 65 million (annual immigration rate of 100,000 – lower end of “average” population) and 70 million (annual immigration rate of 200,000 – upper end of “average” population). Even with the upper-end estimates for the total population – which assumes a rise in the birth rate, a significant increase in life expectancy and an annual balance of migration of 200,000 people – only about 77 million people would be living in Germany in 2060, significantly less than today.

A Germany-wide census took place recently (census 2011), which was designed to provide up-to-date information about the numbers, demographics, socio-economic data and housing of the population. The publication of the detailed assessment is planned for May 2013.

Forecast of population development in Germany (2009 – 2060) “medium” variant

Source: Federal Statistical Office

2.2 Retail Investment Market

Retail Investment Market: Review of 2012

Stability of the German economy as well an upward trend during 2012 kept Germany in the focus of real estate investors throughout Europe. Following a recovery in 2010, the economy as well as employment rates and income rose significantly, but this increase slowed down during 2011. This caused a ripple effect in the retail sector. In 2012, retail investments totalled approximately € 7.9 billion compared to € 10.7 billion in 2011. Hence, it accounted for 45% (2011) and 31% (2012) respectively. Whereas the total investments in retail properties in 2011

60,000

65,000

70,000

75,000

80,000

85,000

2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060

in thousands

lower limit medium higher limit

(Copy)



Copy 12

clearly exceeded the 2010 figure and reached the level of 2007, 2012 marked the first drop after three years of consecutive growth.

Figure 1: Retail Transaction Volume Germany

Source: Jones Lang LaSalle, January 2013

In the retail investment market, the shares of some of the asset classes shifted slightly between 2011 and 2012. In the last year the shares of shopping centres and high street properties/department stores were nearly equal at 38% (2011: 32%) and 39% (2011: 45%); both shifted slightly. Retail parks now have the third largest share with 15% (2011: 8%) and are followed by retail warehousing solus units, which accounted for 5% (2011: 12%). Investments in supermarkets/discounters represented 3% in 2011 and stood at 2% in 2012. Transactions involving other retail properties and a portfolio of kiosks took up a 1% share in 2012, respectively.

In 2011 some large transactions drove up the amount of investments in shopping centres, high street properties and department stores. In 2012, however, large transactions included the sale of KaDeWe and 17 Karstadt properties from Highstreet (Whitehall, RREEF and others) to Signa Holding; the sale of Europa Galerie in Saarbrücken from Credit Suisse to Union Investment (CS Eureal) for approximately € 170 million; the sale of a 45% share of the Europa Passage in Hamburg for € 184 million; shares of five shopping centres from Perella Weinberg to Unibail-Rodamco for approximately € 500 million; and 78% of the Milaneo shopping centre in Stuttgart for approx. € 400 million. Furthermore, the Rathaus-Center in Monheim has been sold at a so far unpublished price by Vald and ZIAG to Phoenix; Sahle-Gruppe bought Karstadt on Zeil in Frankfurt (€ 115m) and 11 Toom DIYs have been bought by a joint venture of Morgan Stanley and Redos Real Estate for approximately € 100 million; a joint venture of Matrix and Investors from Munich bought the Saturn store in Hamburg for an estimated € 80-90 million.

(Copy)



Copy 13

Figure 2: Transaction Volume Germany divided by Retail Asset Class


Yields in the Retail Market decrease

As mentioned above, shares of retail assets in the real estate investment market went down from 45% in 2011 to 31% in 2012. Furthermore, in most retail property classes, the gap between sellers and buyers has decreased, but a clear lack of product remains. However, supermarkets and discounters are the exception; the demand is higher than the supply. Particularly with respect to core properties, a gap between sellers and buyers can be observed. A yield compression could be observed from 2009 until H1 2011, then came to a halt and continued in H2 2012 with respect to retail parks, shopping centres and retail high street unit shops/department stores. However, the yield compression as well as the stabilisation applies to core properties rather than secondary assets. Prime yields for shopping centres, for instance, were close to 5% throughout 2012, but went down in Q4 and now equal those for prime offices. Net initial yields for prime retail parks went down to approximately 6% at the end of 2011, remained stable until the Q3 2012 and then decreased.

Figure 3: Development of Prime Yields


(Copy)



Copy 14

Retail Investment Market: Outlook

Especially as a result of the fact that Germany’s economy has been very stable in the past years and showed signs of growth in the recent past, we see retail to remain amongst the largest asset classes in 2013. Particularly those investors who seek a core investment with upward potential find the best fit in retail. Unlike before, their focus is not only on core properties. Alternative options like, for instance, value-add assets, assets with shorter rental lease contracts or vacancies are increasingly considered. However, building condition as well as location quality remain among the most important requirements. This development is partly due to a certain pressure to invest and partly because of a limited supply of core properties. Furthermore, in 2013 an increasing transaction volume of distressed properties and non-performing loans respectively can be expected. With respect to retail properties, we expect a progressively stable trend with the highest investment share anticipated for shopping centres and high street properties. Furthermore, we predict that the German real estate market will remain the focus of foreign investors. In 2012, Asset/Fund Managers as well as public quoted property companies/REITS were the most active participants of the retail investment market. We expect this to continue, but see developers and insurances to become more active again in 2013.

2.3 German Retail Warehouses and Retail Parks

The following section presents a more detailed overview of retail warehouses with a specific focus on “Do-It-Yourself” (DIY) stores, furniture stores, electronic goods stores, hypermarkets and cash & carry markets as well as retail parks and retail agglomerations. The subject matter will concentrate on the classification of these types of retail establishments, providing information on the special characteristics, the most well-known tenants, the deciding regional factors and information regarding the present situation in the German real estate market in view of the current rental level and the investment market.

Retail Warehouses

Definition

Retail warehouses are large-scale forms of retailers. They offer a broad and often very deep range of different products for different requirements and for specific target groups. Retail warehouses usually operate using a self-service format with a self-explanatory product selection, which is clearly presented to the customer. The need for good presentation and the broad and deep product range contribute to large sales areas. On the other hand, fewer sales staff is needed due to the self-service character. In combination with a good area performance and efficient stock keeping, the costs for retail warehouses are easily managed. Additionally, the majority of retail warehouses are chain stores with a basic concept. The construction of such concepts entails economic advantages, with products that can be and mostly are offered at lower to medium price levels.

Among retail warehouses, different types and branches can be distinguished. Retail warehouses can differ in service orientation and price level. There are more service-oriented warehouses (higher prices, more services) and more discount-oriented warehouses (lower price, less services). Plus, even though retail warehouses are usually large-scale, they can be distinguished based on their size and location.

Small retail warehouses have an area of approx. 200 to 1,200 m² and are located within a suburban location with good traffic connections. Tenants are usually hardware stores, office supply stores or drugstores. Medium retail warehouses comprise stores with an area of up to 3,500 m² and are located both in suburban areas and in the outskirts of towns and cities. Typical tenants include sporting goods stores, toy stores, electronic goods stores, large shoe stores, large hardware stores and auto supply stores. Large retail warehouses have an area of more than 3,500 m² up to 18,000 m² and are usually located in peripheral locations. However, these stores are increasingly being developed in more integrated locations. Typical tenants are large fashion retailers, toy stores, electronic goods stores and DIY stores. The biggest retail warehouses reach a size of up to 30,000 m². Due to their size, these stores are normally found exclusively in peripheral locations or on Greenfield sites. This size is

(Copy)



Copy 15

usually only occupied by furniture stores. The branches and tenants for retail warehouses are diverse and depend on the strategy and orientation of the subject property.

Locational Factors

Since the time they originated in the mid-1980s, retail warehouses are typically situated in peripheral locations in cities (e.g. commercial areas). This distinguishes a retail warehouse from conventional specialist stores, which traditionally prefer city centre locations. The motivation to move to Greenfield sites results mainly from the lower rental rates compared to the city centre, the fact that expansion is easier in the periphery (especially for large-scale retail warehouses), as well as the possibility to use simple building methods to affordably construct on a large scale (with regard to sales area and parking spaces). Together with more efficient organisation, this allowed products to be offered at lower prices than in traditional retail formats. Retail warehouses and their concepts are thus posing an ever greater threat of competition for the city centres. This means that continuous adjustment and development of concepts is necessary to remain competitive for both city centres and retail areas in the periphery.

Location factors can be differentiated by the macro-location and micro-location. The most important factor on a macro-level is the population and all factors directly and indirectly associated therewith. The first is the population of the locality and the number of people living in the catchment area of the respective property. In this context, future population development is another important factor given the long-term use of such real estate. Another factor concerning the population is the purchasing power. The more specialized retail warehouses are, the more purchasing power matters. This is because the costs associated with food, for example, do not depend on purchasing power as much as the costs associated with electronics or DIY-store goods. Factors like tourism potential and commuter balance play a less significant role. Given the increasing difference concerning the mentioned macro-location factors in Germany, these factors are continually gaining importance in the valuation of real estate.

On a micro-location level an important factor is the traffic infrastructure. As retail warehouses mostly rely on customers travelling by car, sufficient parking spaces as well as a good traffic infrastructure are very important. Thus, retail warehouses are often found along major arterial roads in commercial or industrial zones. Public transportation plays a less significant role but is important as well. Another important factor is the development in the vicinity. Further retailers in the vicinity can produce benefits from synergy effects or if retailers have a similar product range they can form competition. A residential population in the vicinity can also be beneficial, as people living in the surrounding area of a retail warehouse can significantly increase the customer frequency.

Rental Market

There is no homogeneous rental level for retail warehouses throughout Germany. Nevertheless, the spread between the rental levels is not as big as in high street locations. The maximum rents are determined by a percentage of the turnover expectancy as is common in the retail sector. The turnover again is most dependent on the above-mentioned macro- and micro-location factors of the retail warehouses plus the characteristics of the property like quality and concept of the store, architecture and visibility from the adjacent streets.

The economic difference throughout Germany has led to differences in rental levels throughout the country. Rents in Bavaria, Baden Wuerttemberg and the metropolitan regions around Hamburg, Frankfurt or Berlin, lie above the average rent in Germany due to the high population density, the positive population forecast and the strong economy. Rental levels in eastern German towns are generally slightly lower than their western counterparts, as these areas have a lower purchasing power, higher unemployment rates, most often a negative population development and therefore generate on average lower revenues.

Depending on the size of the retail unit and the branch of the tenant, rents for retail warehouses in Germany usually range from € 5.00 and € 14.00/m²/month. However, there are exceptions in both directions. The highest rents are not paid in peripheral locations but in locations in or near the city centre of larger cities with more than 100,000 inhabitants. Usually these prime rents are paid by well-known and attractive tenants, which occupy

(Copy)



Copy 16

buildings in very good conditions. The rents for retail warehouses in general in Germany have been relatively stable in the past 10 years. However, the future rental development of retail warehouse will be mainly determined by the growing regional differences. The rental levels will remain stable in sustainable locations and in absolute top locations there is the probability of small increases. But, locations in economically weak regions with negative population development were and are going through difficult development. Therefore, less sales area is needed there due to the migrating population. This leads to an oversupply of rental areas, which again leads to falling rental levels.

Investment Market Specifics

In 2006, retail warehouses and hypermarkets gained importance in the international retail markets and developed from a niche product into an autonomous asset group. However, during the financial crisis in 2008 and the beginning of 2009, as in all other market segments, yields for retail properties rose. As expected, this change affected secondary and tertiary locations more strongly than core properties. Within the retail asset branch, the retail warehouse sector showed the strongest imbalance between product offer and demand during this time. From the beginning of 2011, yields began to fall again due to the increasing demand and the economic upturn after the crises. Especially core properties and properties in sustainable locations with stable characteristics became the focus of investors. Since the second half of 2011, the prime yield for retail warehouses has stabilized at around 6.50%. This is still 90 bps higher that the all-time low of 5.60%. Purchase price multipliers for sustainably lettable retail warehouses in good locations range from 10.5-fold to 14.0-fold the net annual rent.

The following figure shows the prime yield development for retail warehouses since the first quarter of 2007:

Figure 4: Prime Yield Development in %

Source: Jones Lang LaSalle analysis

Prime yields for retail parks and retail warehouses relate to properties with the following characteristics:

Modern concept

Good-looking interior and exterior with an overall attractive appearance

Long lease contracts with the anchor tenants (preferably > 10 years)

A good mix of tenants and branches as well as well-known retail chains

Sufficient parking spaces

0

1

2

3

4

5

6

7

8

Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12

(Copy)



Copy 17

Well-positioned in the local market

Prime retail parks may also be situated in peripheral locations but with excellent connections to major traffic arteries

Based on research of all commercial property classes, the prime yield development is expected to remain at approximately this level, though if investors’ preference remains as high as it is, a further decline of prime yields seems possible. Additionally, all estimates have to be seen in light of the current economic crises in the European Union. Furthermore, investors still distinguish between assets situated in western and eastern Germany. Thus, yields for prime properties in eastern Germany are usually traded with a premium of approx. 50 bps. Exceptions can be noted in the large metropolitan areas around Berlin, Dresden and Leipzig.

Another major factor concerning the future yield development is similar to the rental levels the current growing regional difference within Germany. Metropolises and mid-sized cities in good macro locations considered to be winners, while stores in secondary and tertiary locations with poor macroeconomic data are the losers. At present, investors are placing greater focus on location factors than was the case two years ago, which is expected considering the current developments in Germany with regard to population, among other factors. Thus, very weak demand exists for locations with low purchasing power and a negative population growth forecast.

Transaction Evidence

The price decreases which were observed in 2008 and partly 2009 are over. The transactions in 2010 and 2011 indicated an increase in investor’s interest in retail properties in Germany. In 2012 the market seems to stabilize. The total transaction volume for commercial properties in Germany for the first two quarters of 2012 stands at approx. € 9.4 billion. For the first two quarters of 2011 this value stood at € 11.2 billion. Retail properties account for a share of the transaction volume in 2012 of approx. 30%. However, for retail warehouses the transaction volume in 2012 stands at € 83 million which is far below the volume for the whole of 2011 (approx. € 1.3 billion). But, the second half of the year is usually the stronger. Thus, a relatively high increase in the volume for retail warehouses can be expected.

Please find some transactions from 2010 until 2012 in the table below.

Table 1: Transaction Evidence

(Copy)



Copy 18

Source: Jones Lang LaSalle research

Retail Parks

Definition

Retail parks are planned retail warehouse agglomerations. A retail park generally consists of at least three large-scale retailers with a combined retail area of at least 3,000 m². Similar to large retail warehouses, they usually are situated in locations reachable by car, close to traffic arteries or federal highways. In contrast to unplanned retail warehouse agglomerations, retail parks are built in order to effectively benefit from synergy effects and cultivate a collective corporate identity as well as a visual and spatial appearance. They usually have a shared, central car park and advertise their tenants through traffic cones at the access points. Although distinguished by their plain and functional architecture, retail parks have many similarities to shopping centres. One similarity is the central planning and management of the retail park. Instead of letting random tenants into the property, it is the retail park manager’s task to optimise the tenant mix in order to maximise synergy effects. The manager is further responsible for organising the retail park’s external appearance through shared marketing measures and also functions as a contact for clients, tenants and the landlord.

Retail Agglomerations

In comparison to retail parks, agglomerations of retail warehouses have also often been developed in order to take advantage of synergy effects with other retailers. However, these developments are not strategically planned. Agglomerations are created with the successive settlement of retail warehouses. This usually develops over an extended period of time without central planning, management or operation. Similar to retail parks, the joint usage of infrastructural components and joint marketing are synergy effects arising from such an agglomeration, resulting in an extension of the catchment area and an increase of the competitiveness relative to other retail agglomerations. Two common forms can be distinguished: retail warehouse strips and clusters. While

Date LocationFederal

stateType NIY Multiplier Area Comment

Q2 2012 Jever Lower Saxony Furniture Store 6.40% 13.8-fold 13,000 m² WALT: 9.26 years

Q2 2012 KrefeldNorth Rhine-

WestphaliaDIY store 6.40% 13.7-fold 4,320 m² WALT: 13.6 years

Q2 2011 -North Rhine-

WestphaliaDIY store 6.40% 15.7-fold 11,500 m² WALT: 15 years

Q2 2011 AachenNorth Rhine-

WestphaliaDIY store - 13.3-fold - Obi; WALT: 15 years

Q1 2011 Michendorf Berlin Cash&Carry - 12.92-fold 15,500 m² WALT: ca. 9 years

Q4 2010 CologneNorth Rhine-

WestphaliaEletronic store - 9.5-fold - WALT:< 5 years

Q2 2010 -Baden-

WuerttembergHypermarket - 14,00-fold 5,300 m² WALT 18 yrs.

Q2 2010 -Baden-

WuerttembergHypermarket - 13,25-fold 4,000 m² WALT 18 yrs.

Q2 2010 WuppertalNorth Rhine-

WestphaliaHypermarket 8.00% - 8,500 m² Real, until 2026


WestphaliaDIY - 13,3-fold 10,850 m² Obi, WALT 14 yrs.

Q1 2010 Taunus area Hesse DIY-Store 7.15% 12.4-fold 11,000 m²15 years WALT with tenant

OBI; construction year: 1998

Q1 2010 Ruhr areaNorth Rhine-

WestphaliaDIY-Store 6.90% 12.85-fold 9,735 m²

15 years WALT with tenant

OBI; construction year: 2006

(Copy)



Copy 19

retail warehouse strips develop through the successive construction of retail warehouses on a linear axis along a single road, clusters develop through the construction of further retail warehouses around a centrally situated store. Often such developments evolve chaotically and seldom benefit from shared parking lots.

The concept of “one-stop shopping”, which is offered by retail parks and retail agglomerations, will play an increasingly important role in the future when shopping for provisions, because time is becoming more and more important to individuals. As a result, individual or sparsely clustered discounters and supermarkets will become increasingly unappealing.

Rental Market and Tenant Mix

The tenant mix of a retail agglomeration or retail park is very important for the overall quality and success of the property. The rental rate for such properties – as is common in the retail sector – is tied to the turnover expectancy (normally as a percentage). A good tenant mix and combination of brands and offers is able to satisfy several consumer requirements and guarantees a good customer flow. In order to increase the overall quality of a retail park or retail agglomeration, tenants selling daily convenience goods and tenants with a periodic or leisure component should be combined within the property. The combination of goods and services supports the consumers’ time management and therefore, appeals to the customer and offers an advantage compared to a stand-alone supermarket, for example.

The opportunity to link purchases with different store characters (periodic and irregular, impulse and target purchases, etc.) varies depending on the main range of goods. In particular, branches with a very high leisure character are easily linked to each other, for example fashion and shoes, leatherwear, toys and jewellery. Purely supply-orientated tenants (for example supermarkets, discounters, bakeries and drugstores) have similar linkage potential. Target-oriented purchases like furniture purchases or DIY-purchases have a lower potential for linkage as they are very sporadic and usually require higher investment. Therefore, the information and the time requirement are higher and these purchases are normally not combined with other purchases.

If in the case of a retail park, the management succeeds in establishing good anchor tenants, which increases the customer frequency, then the turnover expectancy of secondary tenants tends to be higher. As a consequence, their overall rental level can be higher as well. Therefore, some anchor tenants are able to negotiate lower rents, because their existence in a property increases the rental level of the others, thereby compensating for the higher rents. Thus, the rental level of a large anchor store within retail parks, like a supermarket or hypermarket, tends to be lower than if it was a stand-alone store. In contrast, smaller retail warehouses within retail parks, which benefit from large anchor tenants, tend to pay higher rents than if they were stand-alone stores. Overall, retail parks have the potential to generate higher rents than stand-alone retail warehouses due to the higher customer frequency.

The discrepancy between the average and prime rents is usually between € 5.00 and € 6.00/m²/month. Depending on the size of the retail unit and the branch of the tenants, rents in retail parks in western German locations generally range between € 5.00 and € 15.00/m²/month. However, there are exceptions in both directions. The current prime rent for retail warehouses ranges from € 10.50 to € 18.50/m²/month. The prime rent of € 18.50/m²/month is usually not paid in peripheral locations but in locations in or near the city centre of larger metropolitan areas (> 100,000 inhabitants) by well-known and attractive tenants occupying buildings in very good condition. The prime rent for retail warehouses in Germany has been virtually stable in the past 10 years. In the first quarter of 2002, the prime rent ranged from € 9.79 from 18.60/m²/month.

The overall potential for rental growth of retail warehouses in Germany is best summed up as mediocre. Depending on the tenant branch, rental rates for discounters, department stores and DIY stores remain stable due to the high competition in the market, but the rents for fashion stores have uplift potential simply due to the fact that these stores are increasing their presence in retail parks and are prepared to pay high rents.

Investment Market Specifics

Retail parks are a very interesting investment for investors. This is due to the fact that there is still a great deal of demand for retail areas within the centres and very often the security of cash flow is supported by contract

(Copy)



Copy 20

lengths of up to 15 years. Tenants are willing to sign long contracts, because the restrictive town planning in Germany makes new developments difficult and thereby decreases the risk that new properties will be constructed nearby in the near future and will avert the customer flow. Furthermore, retail parks offer risk diversification due to the multi-tenant structure in comparison to single-tenant retail warehouses. Thus, retail parks on average offer a more secure cash flow. For that reason, the yields for retail parks are lower than for retail warehouses.

The following shows the prime yield development for retail parks from the first quarter of 2007 until the second quarter of 2012.

Figure 5: Prime Yield Development in %

Source: Jones Lang LaSalle analysis

Prime yields usually remain relatively stable because prime properties are less affected by developments than non-prime properties. The prime yields started to increase with the appearance of the financial crises in 2007 and peaked at the beginning of 2009 at 6.75%. From the fourth quarter of 2009, prime yields have fallen quite considerably by 0.85% to as low as 5.90% in the second quarter of 2011. Since then, the prime yield has remained stable. Top multipliers are currently reaching 14.25 to 15.00, at the most.

Given the present-day perspective, we expect yields for core products to remain stable, provided that the overall economic situation and the situation in the retail market (particularly for specialist retail properties) will not deteriorate. However, if investor’s preference for retail parks remains as high as it is, a further decline of prime yields seems possible. Additionally, all estimates have to be seen in light of the development of the current economic crisis in the European Union.

Furthermore, within the individual retail park segment, investors are currently increasingly searching for properties with refurbishment potential. The result is a clear focus on redeveloping single large-scale retail warehouses into retail parks in order to fully capitalise on the investor demand for these products. Large self-service department stores (> 10,000 m²) in need of modernisation show the greatest potential in this regard due to their area dimensions and typically favourable building law regulations.

Transaction Evidence

The transaction volume of retail parks stand at € 464 million for the first two quarters of 2012. This is more of half the investment volume of retail parks in 2011 which stood at € 823 million. This shows the currently strong

0

1

2

3

4

5

6

7

8

Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12

(Copy)



Copy 21

demand of investors for retail parks. This demand will probably increase in the future due to the above mentioned facts.

Please find some transactions from 2010, 2011 and 2012 in the table below.

Table 2: Transaction Evidence

Source: Jones Lang LaSalle research

Date LocationFederal

stateType NIY Multiplier Area Comment

Q3 2011 Freital Saxony Retail Park n.a. 11.2-fold 20,000 m² WALT:> 10 years

2012 n.a.Baden-

WuerttembergRetail Park 7.55% n.a. 27,955 m² -

Q2 2012 KarlsruheBaden-

WuerttembergRetail Park ca. 6.00% 14.5-fold 27,500 m² Saturn, real; WALT: ca. 9 years

Q3 2011 DortmundNorth Rhine-

WestphaliaRetail Park - 14.16-fold 31,131 m² Hornbach, REWE, Lidl, Tedox; WALT: 8 years

Q1 2011 Castrop-RauxelNorth Rhine-

WestphaliaRetail Park - 11.05-fold 9,715 m² Media Markt, Tedox, Dänisches Bettenlager

Q1 2011 Hesse Hesse Retail Park - Around 15-fold 4,500 m² WALT 20 yrs.

Q1 2010 Salzgitter Bad Lower Saxony Retail Park - 12,75-fold -WALT 10 yrs., new retail park, main tenants

Rossmann and Penny

Q2 2010 Gernsheim Hesse Retail Park - 12.00--fold 9,900 m² Edeka,, WALT over 10.0 years

Q1 2010 Berlin Berlin Retail Park - 13,51-fold 21,500 m²Main tenants Obi, Burger King, Kaisers, Dänisches

Bettenlager


WestphaliaRetail Park - Around 13.75-fold 8,400 m²

Main tenants Rewe, Dänisches Bettenlager, dm, etc.;

WALT between 10 and 15 years

Q1 2010 Landshut Bavaria Retail Park GIY 6.9% 14.53-fold 23,000 m²

Main tenants Kaufland, Aldi, Saturn, C&A,

Deichmann, Das Depot, Mister * Lady; purchase price

€ 53.5 Mio; construction year 2010

Q1 2010 Gießen Hesse Retail Park approx. 7.5% 11.75-fold 18,000 m² Main tenants real, Saturn, WALT: > 10 years

(Copy)



Copy 22

3 Valuation

3.1 Valuation Methodology

Our valuation provides an estimate of Market Value. The definition by the ‘Royal Institution of Chartered Surveyors’ outlined below applies to the underlying values quoted in the valuation.

The Market Value of the property has been assessed using the Discounted Cash Flow (DCF) calculation method. This takes into account the agreed rent for the signed leases, the market rent for currently vacant space and estimated rents for re-letting of the space after lease term expiry.

Cash flows for the relevant year are calculated as follows: the Rental Income at full occupancy (Base Rental Revenue) is reduced by the loss of rent due to rent–free periods (Base Rent Abatements) and vacancy (Absorption and Turnover Vacancy). Besides income from indexation clauses (CPI and Other Adjustment Revenues) and step rents (Base Rental Step Revenue), reimbursable expenses (Vacancy Costs) have been added to obtain the Total Potential Gross Revenue. While rents are calculated according their particular adjustment clause, costs have been adjusted according to the change in the Consumer Price Index (CPI) on a yearly basis.

After deduction of the non-recoverable costs (i.e. Management and Maintenance Costs) and reimbursable expenses (Vacancy Costs), the Net Operating Income (NOI) is determined. In case of vacancy, the reimbursable costs the landlord receives are lower than the amount he has to pay, so that only in this event do Vacancy Costs have an influence on the NOI.

Subtracting the non-operating costs (such as Leasing Commissions, Tenant Improvements and Capital Expenditures) from the NOI results in the Cash Flow before Tax and Debt Service.

After the DCF period of 10 years, we have considered a stabilised rental income in year 11. The capitalised value after year 10 takes this stabilised rental income and subtracts the stabilised expenses, resulting in the Stabilised Net Operating Income. This result is capitalised into perpetuity applying an equated (growth implicit) yield and produces the Terminal Value Indication. The resulting value is then discounted to the valuation date using the discount rate from term year 1-10.

Discounting the remaining Cash Flows for years 1 to 10 and the Terminal Value for year 11 to the valuation date (i.e. the Net Present Value) produces the Gross Capital Value. We have assessed monthly rents as this conforms to the timing of rental payments. Subsequently, the Cash Flows calculated across the valuation period are discounted to the valuation date monthly in advance using the market derived discount rate. The discount rate adopted considers the probability of default as well as the security of the forecast for the Cash Flow. Therefore, factors which influence the discount rate include existing terms and conditions of lease contracts, the individual location quality, the building structure and building stock, the strengths of tenant covenants, the prevailing over- or underrent and the resale value calculated. After deductions for Purchaser’s Costs, the Market Value is obtained.

3.2 Valuation Assumptions

Definition Market Value

The Market Value is defined in the ‘Royal Institution of Chartered Surveyors (RICS) Appraisal and Valuation Manual’. This is incorporated into the Jones Lang LaSalle “General Principles Adopted in the Preparation of Valuations and Reports” attached as Appendix 2.

The “Market Value” is an appraisal of the price for which a property transaction would take place on the appointed valuation date and may be defined as:

(Copy)



Copy 23


Rental Income

The current rental income for the portfolio amounts to € 14,044,730/year, which equals a rent of € 7.95/m²/month on occupied areas.

Estimated Market Rental Value

In the scope of the valuation, an achievable market rent was derived for each rental unit of the buildings within the portfolio.

The estimate of market rents is made on the basis of comprehensive research and our turnover analysis. As a result, the Estimated Rental Value for the portfolio amounts to € 14,983,605/year. This represents € 8.48/m²/month.

No TownContractual

Rental IncomeContract Rent

€ p.a. €/m²/month

1 Aschersleben 1,531,257 8.79

2 Augsburg 1,325,019 7.98

3 Bad Aibling 644,624 7.62

4 Biberach 1,265,410 9.79

5 Borken 1,089,001 9.53

6 Erlangen 1,216,050 7.56

7 Geislingen 654,010 5.80

8 Glauchau 1,301,918 8.50

9 Ludwigsburg 1,033,067 6.09

10 Ludwigsfelde 1,138,683 7.51

11 Neckarsulm 1,415,752 11.49

12 Vilshofen 815,611 6.64

13 Wittenberge 614,328 5.89

14,044,730 7.95

Property Rental Income

(Copy)



Copy 24

Costs

We have been provided with an updated cost schedule concerning ground tax and insurance costs. As for the other non-recoverable costs, we assume that these costs remain unchanged in the current valuation. The previous owner did not recover all costs, which could be recovered according to the lease contracts. We understand that the lawyers of BCRE see that in the future these costs will be reduced and a higher portion will be recovered. We assumed that if the tenants would be provided with an accurate cost schedule they will pay these (recoverable) costs.

Vacancy Costs

In periods of vacancy, all fixed ancillary costs are borne by the owner. This fact has been taken into account within the valuation and in the case of projected vacancy during re-letting or successive rental; furthermore, we have applied a non-recoverable surcharge for vacant space. The vacancy costs are assessed to amount to € 10.00/m²/year.

Renewal Probability

Following the lease contract periods, we have considered assumptions appropriate to the local market environment regarding use type, location, quality of rental areas and property condition. Rent-free periods were

No Town Market Rental Value Market Rent

€ p.a. €/m²/month

1 Aschersleben 1,591,511 9.13

2 Augsburg 1,499,573 9.03

3 Bad Aibling 696,866 8.23

4 Biberach 1,275,518 9.87

5 Borken 1,206,904 10.56

6 Erlangen 1,566,081 9.74

7 Geislingen 838,192 7.44

8 Glauchau 1,246,923 8.14

9 Ludwigsburg 1,332,535 7.85

10 Ludwigsfelde 1,042,279 6.88

11 Neckarsulm 1,278,184 10.37

12 Vilshofen 817,158 6.66

13 Wittenberge 591,881 5.68

14,983,605 8.48

Property Rental Income

(Copy)



Copy 25

not assumed for the re-letting/initial letting of any units. Void periods have been applied for re-lettings/initial lettings and leasing commissions were taken into account to secure new tenants. Depending on the respective area, we have incorporated tenant improvements after lease term expiry. We have predominantly assumed that the existing leases will be extended with a renewal probability of 75% (at market rental level) and leases will be agreed with new tenants with a corresponding probability of 25% (also at market level). Therefore, costs in the cash flow related to re-letting and the void period are weighted with the aforementioned likelihood of 25%.

Void Periods

The period of vacancy before re-letting depends on the location, building quality and demand. For the rental units, a specific vacancy period between 3 and 24 months was assumed. Given that marketing to identify new tenants can commence as soon as an existing tenant has submitted notice, the usual notice period for the tenant is taken into account (i.e. deducted) when determining the void period. However, the period of vacancy may not amount to less than three months due to renovation and refurbishment that may be required within the rental area.

Please refer to the individual property templates in Appendix 1 for further information.

Tenant Improvements

Tenant improvements are costs for fixtures and building works incurred when a new rental contract is signed. In the valuation, these costs were fixed for each individual rental area according to the exterior and interior appearance. For the rental units, we have taken tenant improvements of € 25/m² to € 100/m² into account in our valuation.

Please refer to the individual property templates in Appendix 1 for further information.

Agent’s Fees

Letting fees usually include agent’s fees borne by the owner and are incorporated into the estimated cash flow. For the Matrix Portfolio we assumed three monthly rental payments for commercial units.

Contractual Terms

Rental terms are estimated by drawing upon standard rental contracts, giving consideration to building use and the current real estate market. A contractual period of 10 years is assumed for large units and 5 years for smaller units. Contract extension options in the new lease contracts are disregarded. The rent for new lease contracts reflects the market rent for the building. The contractual rent used in the calculation of future cash flows is shown in the individual valuation templates in the Appendix 1 of this report.

Investment Yields

The yields applied reflect the individual location quality (macro- and micro-location) of the properties, building structure, letting situation, covenant strength and the relationship between contractual and market rent. In the current investment market, covenant strength and lease term play a major role in the purchase of such properties. The cap and discount rates used for each property to calculate Market Value are disclosed in the individual valuation reports.

(Copy)



Copy 26

Rental Growth Forecasts

For rents we assume a rental growth in line with the development of the inflation.

Table 3: Inflation forecast Germany

Source: Global Insight 2013

3.3 Valuation Results

Market Value

The valuation is carried out on the basis of Market Value as defined in the ‘Royal Institution of Chartered Surveyors' (RICS) Appraisal and Valuation Manual. This is incorporated into the Jones Lang LaSalle “General Principles for Valuations and Standard Terms of Business”, which is attached as Appendix 2.

The “Market Value” is an appraisal of the price for which a property transaction would take place on the appointed valuation date and may be defined as:


We are of the opinion that the Market Value of the subject portfolio is as at 31st March 2013:

€ 176,800,000 (net)

(ONE HUNDRED SEVENTY-SIX MILLION, EIGHT HUNDRED THOUSAND EUROS) reflecting € 1,201 /m² of lettable area

The above valuation figure represents a net figure, i.e. a deduction has been made for land transfer tax and legal costs and agent’s fees normally incurred by the purchaser. No allowance has been made for any expenses of realisation or for taxation, which might arise in the event of a disposal. The properties are considered as if free and clear of all mortgages or other charges, which may be secured thereon.

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%

Year after 2021

Inflation 1.6%

(Copy)



Copy 27

3.4 Sensitivity Matrix

Below we present a matrix per property showing the Market Value sensitivity to changes of the Discount Rate.

3.4.1 Aschersleben

3.4.2 Augsburg

3.4.3 Bad Aibling

3.4.4 Biberach

3.4.5 Borken

3.4.6 Erlangen

- 50 bp - 25 bp 7.35% + 25 bp + 50 bp

€ 20,700,000 € 20,400,000 € 20,000,000 € 19,700,000 € 19,400,000

Sensitivity Matrix as at 31st March 2013

Discount Rate Variation

- 50 bp - 25 bp 6.90% + 25 bp + 50 bp

€ 17,700,000 € 17,400,000 € 17,100,000 € 16,800,000 € 16,500,000



- 50 bp - 25 bp 6.90% + 25 bp + 50 bp

€ 8,800,000 € 8,600,000 € 8,500,000 € 8,300,000 € 8,200,000



- 50 bp - 25 bp 7.10% + 25 bp + 50 bp

€ 16,800,000 € 16,500,000 € 16,200,000 € 16,000,000 € 15,700,000



- 50 bp - 25 bp 6.90% + 25 bp + 50 bp

€ 15,600,000 € 15,300,000 € 15,000,000 € 14,800,000 € 14,500,000



- 50 bp - 25 bp 6.80% + 25 bp + 50 bp

€ 13,200,000 € 13,000,000 € 12,700,000 € 12,500,000 € 12,300,000



(Copy)



Copy 28

3.4.7 Geislingen

3.4.8 Glauchau

3.4.9 Ludwigsburg

3.4.10 Ludwigsfelde

3.4.11 Neckarsulm

3.4.12 Vilshofen

3.4.13 Wittenburg

- 50 bp - 25 bp 7.25% + 25 bp + 50 bp

€ 9,500,000 € 9,300,000 € 9,100,000 € 9,000,000 € 8,800,000



- 50 bp - 25 bp 7.25% + 25 bp + 50 bp

€ 16,900,000 € 16,600,000 € 16,300,000 € 16,100,000 € 15,800,000



- 50 bp - 25 bp 7.00% + 25 bp + 50 bp

€ 13,100,000 € 12,900,000 € 12,700,000 € 12,500,000 € 12,200,000



- 50 bp - 25 bp 6.65% + 25 bp + 50 bp

€ 14,700,000 € 14,400,000 € 14,200,000 € 13,900,000 € 13,700,000



- 50 bp - 25 bp 7.30% + 25 bp + 50 bp

€ 17,800,000 € 17,500,000 € 17,200,000 € 16,900,000 € 16,700,000



- 50 bp - 25 bp 6.75% + 25 bp + 50 bp

€ 10,400,000 € 10,300,000 € 10,100,000 € 9,900,000 € 9,700,000



- 50 bp - 25 bp 6.70% + 25 bp + 50 bp

€ 8,000,000 € 7,900,000 € 7,700,000 € 7,600,000 € 7,500,000



(Copy)



Copy 29

3.5 Market Value Disclaimer

Our valuations are carried out on the basis of market value as defined in the ‘Royal Institution of Chartered Surveyors' (RICS) Appraisal and Valuation Manual. The “Market Value” according to the RICS Appraisal and Valuation manual contains an appraisal of the price at which a property transaction would take place at the appointed valuation date and may be defined as: “The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

According to information given by Brack Capital Properties N.V., we understand that the Matrix portfolio was offered in a distressed loan situation. Thus, the subject transaction can be considered a forced sale, so that the underlying purchase price (of whom we are not aware of) is not necessarily comparable to the above-mentioned market value definition. Furthermore, our valuation is based on market parameters, in particular concerning service charges, which potentially deviate from the actual situation of the portfolio on the purchase date.

After discussions with Brack Capital Properties N.V. we now understand that the purchase price is lower than the estimated market value. However, we are not in the position to comment on this deviance as we are not aware of the exact conditions of the final purchase contract, nor of any side letters or supplementary agreements that potentially deviate from the valuation basis. We assume that the distressed vendor might have accepted Brack Capital Properties N.V.’s lower bid in order to quickly close a deal with a trusted, recognised purchaser with a proven track record. In this regard, our calculated market value could be above the agreed purchase price; nonetheless, we are comfortable with this level and consider it to reflect the market value (according to the above RICS definition) for the portfolio at the respective valuation date.

Prior to this valuation round, we have conducted a valuation in June 2012 for the financial statements of Brack Capital Properties N.V. Compared to the previous valuation in June 2012, the market value in March 2013 has increased by approx. 4.4%. This is mainly due to a reduction of capital expenditures scheduled in the upcoming year. This sum has dropped from approx. € 3 million in 2012 to zero in 2013. The biggest influence on this development came from the properties in Augsburg, Biberach, Erlangen and Neckarsulm where e.g. the refurbishment of the parking decks has much advanced since the last valuation.

Please find below the results (Market Values) of our prior valuations:

No. Property 2011 20121 Aschersleben 20,700,000 € 20,100,000 €2 Augsburg 12,100,000 € 15,500,000 €3 Bad Aibling 7,700,000 € 8,400,000 €4 Biberach 12,900,000 € 14,700,000 €5 Borken 14,700,000 € 14,500,000 €6 Erlangen 10,700,000 € 10,700,000 €7 Geislingen 9,200,000 € 8,700,000 €8 Glauchau 15,400,000 € 16,300,000 €9 Ludwigsburg 12,500,000 € 12,200,000 €

10 Ludwigsfelde 13,800,000 € 14,000,000 €11 Neckarsulm 17,300,000 € 16,500,000 €12 Vilshofen 10,000,000 € 10,000,000 €13 Wittenberge 7,800,000 € 7,800,000 €

Total 164,800,000 € 169,400,000 €

(Copy)



30

4 Confidentiality & Publication

In preparing this valuation report, we have relied upon information provided by you and your representatives relating to tenure, tenancies, building and site areas, and building description. If this information proves to be incorrect or additional information is made available to us, the accuracy of the valuation could be affected. In such case, we reserve the right to amend our opinion of value accordingly.

In accordance with our standard practice, we must state that the content of this report, including the valuation, has been prepared exclusively for Brack Capital Properties N.V. (BCP) for the purposes of assisting BCP to value its assets as at 31st March 2013 for its financial statement reporting and for no other purpose.

In addition, the results of the work executed by Jones Lang LaSalle shall remain confidential and are intended exclusively for BCP and only for the purposes specified in the contract. Any other use and, in particular, disclosure to third parties or other publications (disclosure to third parties) – including extracts – without the express prior written consent of Jones Lang shall be prohibited. We consent to the disclosure of the valuation report to a third party only within the scope of the publication of the financial statement reporting. However, BCP agrees to notify the respective third parties in writing and to underline that Jones Lang LaSalle generally assumes no liability towards third parties for the work and services provided and that third parties may make no claims whatsoever against Jones Lang LaSalle on the basis of the work and services provided. BCP also agrees to indemnify Jones Lang LaSalle against any third party claims and associated costs asserted by third parties against Jones Lang LaSalle as a result of unauthorized disclosure or publication of the results of the work and services provided.

Jones Lang LaSalle GmbH’s liability for any loss or damage caused by negligence on our part, irrespective of the legal reason, in relation to the valuation services provided is limited to a maximum of 10% of the respective and reported Market Value per property, and may not exceed a maximum liability cap of € 7.5 million (euros) for any case.

Finally, to the fullest extent permitted by law, we do not accept or assume responsibility or liability in respect of the whole or any part of the report or valuation for any other purpose than stated above nor to any other person or entity to whom the report or valuation is shown or disclosed or into whose hands it may come, whether published with our consent or otherwise, except where expressly agreed by our prior consent in writing.

ppa. Andrew M. Groom MRICS Frank Rambow MRICS ppa. Georg Charlier

International Director National Director Principal Consultant

Head of Valuation & Transaction Advisory Valuation & Transaction Advisory Valuation & Transaction Advisory

Appendix

(Copy)

Appendix I – Property Reports

Appendix I – Property Reports

(Copy)

Property address Property no. 1 Portfolio:

Valuation date:

Inspection date:

Prepared for:

total p.a.per m² / month



total p.a.

Opportunities Threats

Building age 2 16 to 25 years Macrolocation 2 Below average location and catchment areaLettable Area 4 Between 12,500 and 15,000 m² Microlocation 3 Average micro locationProperty condition 2 Below average building condition Commercial activity 4 Average commercial activity nearbyGeneral impression 2 Below average general impression Competition 3 Average competition level

Investment Quality

WALT 4 WALT seven to ten years Investment market 2 Under developed property marketOver- / underrent 3 Rack rented (-5% to 5%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months

This report is only to be read in conjunctionwith the valuation report provided.

Multiplier (based on MRV) 12.57

Page 1 of 12 abc

SWOT Analysis

Slight under-rent of Kaufland premises

31.03.2013

Brack Capital Properties N.V.

Key Figures

Hoymer Chaussee 108

n.a.

Property Rating (1 = very negative, 5 = very positive)

Building

Liquidity

Valuation Results

Location

Multiplier (initial)

6.89%

Discount Rate

6.89%

excluding capital

expenditures7.10%

6.61%Net Initial Yield

Capitalisation Rate Net Reversionary Yield

7.4 years

0

Good tenant mix

Sufficient parking areas on site

Synergies due to adjacent furniture store

Market rental value € 1,591,511

€ 8.09

1993

Weighted average lease term

06449 Aschersleben

Property Summary

Retail Park

Germany

31.01.2011

Property type

Current vacancy rate

Marktkauf Holding GmbH

14,522 m²Total parking units

8.5%

Main tenant

Total lettable area700 units

4.5%

€ 1,531,257

€ 1,408,935

€ 8.79Contractual gross rental income (month 1 x 12)

Over-/Underrent based on occupied areas

Strengths

Good accessibility by car

Low purchasing power and centrality index

Re-letting or prolongation of existing contracts may result in worse conditionsReletting of the former areas of dm and Quelle Significant negative population growth

Below-average purchasing power

0

€ 9.13 / m² / p.m.€ 20,000,000

7.35%

The site encompasses the subject retail park, a petrol station as well as some food stalls located in front of the main entrance. The property was constructed in 1993 and contains a self-service department store(Kaufland) and a DIY discount store (B1) as large-scale retail units as well as some mid-sized and small-sized retail units. The building has a rectangular shape and for the most part is a single storey structure, witha small second storey located over the main entrance area in the south serving as an administrative area. The property is constructed of concrete columns, precast concrete beams and concrete floor slabs. The flat roof has trapezoid metal panels as bearing structure and several skylights integrated. The facade is madefrom multilayer concrete panels. Main entrance, office windows and shop displays have coated aluminium frames and the entrance is equipped with automatic sliding doors.

0

6.61%

Market Rental Value

13.06

€ 1,591,511 p.a.

Located on the outskirts of AscherslebenWeaknesses

Matrix Portfolio

Difficulty to let former Quelle unit due to its location within the property

€ 1,377 per m²

Prolongation of lease contracts after expiry

0

The walls within the public areas are plastered and painted. The ceiling inside the mall is suspended with a grid system still allowing the technical installations above to be seen. The smaller shop units usually havea suspended ceiling while the large retail units of B1 and Kaufland do not have a suspended ceiling with all technical installations viewable. The floor is mainly covered with ceramic tiles, while the fit out of the smaller shop units depends on the tenant’s preferences. In terms of HVAC, the property does not offer air conditioning, only oil-fueled heating andventilation. The parking area is made of asphalt on driveways and paving stones in the parking areas.

equals toequals to

Market Value

Year of construction

Net operating income (month 1 x 12)

Total non-recoverable expenses (month 1 x 12) € 122,322

Year of refurbishment

Property Description

Limited investor focus on properties in eastern Germany

€ 0.70

00

(Copy)


Valuation date:

Inspection date:

Prepared for:

Population Federal State absolutePopulation District absolutePopulation City absoluteNumber of Households City absolutePopulation Density District per km²Population Density City per km²Population Forecast (2007 - 2025) District in %Population Growth (2002 - 2007) Federal State in %Population Growth (2002 - 2007) District in %Unemployment Rate (4/2013) Federal State in %Unemployment Rate (9/2012) District in %

Purchasing Power District in m €Purchasing Power City in m €Purchasing Power Index Federal State indexRetail Purchasing Power Index District indexRetail Centrality Index District index

Real Estate Tax Rate (Typ B) City in %Land Transfer Tax City in %


(Source: GfK, BBE, BBSR/Inkar 2012/2013)

153.97

There are also connections to the public transport network via the local bus system within the city andthe train, regional or national bus network for out-of-town travel. The train station of Aschersleben offersservice to Halle (Saale), Dessau and Magdeburg.The closest international airports are located in Magdeburg (approx. 49 km) and Leipzig-Halle (approx.80 km).The economy traditionally has been based on the printing industry, machine tool building and vehicleconstruction. Highly specialised machines and printing products have been produced in Ascherslebensince the 19th century. The production of non-woven cotton has been firmly established in Ascherslebensince the 1990s. Also medical equipment companies, which have established their operations in the cityin recent years, are economically important.

Micro Location

The city of Aschersleben is located in the federal state of Saxony-Anhalt. Aschersleben is situatedbetween the region of the Harz Mountains and the Magdeburger Boerde. Aschersleben is rich in manycultural and leisure activities, and has a healthy small- and medium-sized business structure. There aremany historic churches and other buildings, which are worth visiting. The cultural activities of the townare well known in the whole region and attract many visitors. The closest larger cities are Magdeburg,(approx. 50 km to the north), Halle (Saale) (approx. 67 km to the south-west) and Braunschweig(approx. 107 km to the north-west).The transport connections from Aschersleben to the German motorway system as well as to the majorroads are quite good. Aschersleben is located close to the motorway A14. The main federal roads,which run through Aschersleben are B6, B180 and B185.

0

Location


31.03.2013

06449 Aschersleben 31.01.2011

Salzlandkreis (Rural District)

Germany

Saxony-Anhalt

Macroeconomic Indicators

Federal StateDistrict

11.8%

3,320

Aschersleben Macro Location

5.0

Micro Location

400

The property is located at Hoymer Chaussee 108, approx. 3 km west from Aschersleben's historic citycentre on the outskirts of the city by an arterial road, connecting to the major federal road (B6). Theproperty shares its parking lot with a furniture discount store to the east. To the south, there is theaforementioned arterial road with plots on the other side of the road. Similarly, to the north of theproperty more plots can be found. The land to the west of the property is used for agricultural purposes.The property has its own bus stop on Hoymer Chaussee called "Aschersleben Kaufland", whichconnects the premises with the remainder of Aschersleben including its train station.The property offers good visibility and can be accessed directly from the arterial road by which it islocated. It benefits from the adjacent discount furniture store and the petrol station on its plot.

Local Tax Information

-7.6%

83.4287.32

-20.9%

465

11.6%

Structual Data

abc

(Source: GfK and BBE 2012/2013)

28,706

06449

184145

2,356,219206,784

Aschersleben

-5.4%

14,699

Postcode

Page 2 of 12

Matrix Portfolio

Germany

Hoymer Chaussee 108

City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment

Site coverage ratio (GRZ)

Plot ratio (GFZ)

Cubic index (BMZ)

Source: Land register extract, dated 2nd December 2010


Soil contamination

Section 3 (Loans)

Hoymer Chaussee 108 31.03.2013

31.01.2011

Germany

No Suspicion

According to information from the local planning authority's website, a legally binding development planexists, entitled "Hoymer Chaussee Nr. 1" with the following regulations: the subject site is located in aspecial retail zone (Sondergebiet Einkaufszentrum). It sets the following restrictions, among others: amaximum of 16,600 m² of retail space is permissible, of which non-food retail space is not permitted toexceed 4,300 m² and DIY may not exceed 3,600 m² (we assume that an additional agreement is inplace for B1 to operate a larger scheme).

Section 2 (Restrictions)

TPL Aschersleben S.á.r.l., Luxembourg

Land Register

8878 19/2174

Owner

n.a.

Site Information

Site area 36,735 m²thereof surplus land

NoGround lease

Site layout

Site Plan

Surplus land value (net) n.a.

Source: Cadastral plan on a 1 to 2,000 scale, dated 28.12.2010

Matrix Portfolio

06449 Aschersleben

SO (special zone)

n.a.

19

Sheet Plot Parcel

n.a.

Tenure

Site servicing

Ground lease expiry€ 0

0 m²

n.a.

Town Planning

Fully serviced

Building encumbrances Yes

Irregular

The site consists of two plots: 174 and 19/2. The site has an even topography and an irregular shape.The site is not listed in the register of contaminated land ("Altlastenkataster").There is an encumbrances registered on plot 19/2. However, since it containes an obligation in case aproperty is built on the plot we assume that this obligation has been fulfilled by the owner. Furthermore,there are a couple of easements registered on the plots. However, we do not regard these to have animpact on the market value. For the purposes of this valuation, we have assumed that the subjectproperty is free of any soil or building contamination.

Several limited personal easements and personal easements: right-of-way and parking for the respective owner of the parcels 171, 172 and 173 (plot 19); the right to freshwater, wastewater, energy and water for firefighting for the respective owner of the parcels; respective owner of the plot registered on sheet 8879 no. 1, 2, 3 prohibited to operate furniture stores, casinos, sex-shops, peep-shows, etc.; right to operate a self-service department store including essential adjacent areas, parking areas, etc. for Kaufland Dienstleistungs GmbH & Co. KG, Neckarsulm; the right to build, operate and maintain a transformer station with cable, equipment, service and information lines for Stadtwerke Aschersleben GmbH.


Land charges in the total amount of € 24,229,108 in favour of Bank of Scotland (Frankfurt branch), Frankfurt am Main; entered on 18.02.2007.

Local Court of Achersleben, land register of Aschersleben

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:

Inhabitants in tertiary catchment area


153.97

-20.9%

abc

Population forecast for the district (2007 - 2025)

06449 Aschersleben

Name06449 Aschersleben, Seegraben 5

Competitor Overview

Competitor Map

DistanceType Sales area

Source: Jones Lang LaSalle Research

PotentialAddress

Inhabitants per hypermarket in primary catchment area

Retail Purchasing Power Index (District)

Page 4 of 12

Number of households in the district

1.80 km3,500 m²Hypermarket

10,692

Medium

00

Low2.10 km

Inhabitants in secondary catchment area

Retail Centrality Index (District)

Inhabitants per hypermarket in secondary catchment area

16,902

14,699

E-center

50,705 Inhabitants per hypermarket in tertiary catchment area

06449 Aschersleben, Hecklinger Str. 43-450Rewe Hypermarket 1,500 m²

m² 0

22,679

87.32

32,076

00

0

Inhabitants in primary catchment area 7,560

0

Competiton Indicators

Hoymer Chaussee 108

31.01.2011

Germany Brack Capital Properties N.V.

31.03.2013

00

0

0

0

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


31.01.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This retail park is located close to the city centre of Aschersleben and comprises an E-Center (Edeka), medimax (consumer electronics), and a Zoo & Co (pet shop) as well as some smaller tenants such as a bakery. Furthermore, a discounter is located in the vicinity. This competitor is approx. 1.8 km away from the subject property.

Main competitors

06449 Aschersleben

Hoymer Chaussee 108

In terms of DIY competition, there are two other DIY stores in Aschersleben. These two are located next to each other at an arterial road in the north-eastern outskirts of the city. Among these two, Hellweg is clearly in the better position in terms of visibility, accessibility, as well as size. In terms of level of competition, the catchment area, for the most part shared by two competitors, is quite small. However, toom as well as Hellweg target customers not driven solely by price but rather by quality of goods and customer service. This is quite contrary to the discount strategy used by B1. Therefore, we assess the level of competition to be moderate.

The rents in functional retail agglomeration are linked to turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective industry. The productivity varies between approx. € 1,000/m² up to more than € 10,000/m².Taking into consideration the tenant mix in the subject property, the space productivity should be in the range of € 2,250 and € 6,000/m². Generally most tenants have a below average space productivity, i.e. turnover, compared to similar retail parks. For Kaufland, we have also been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range.

abc

Competition Comment

Concerning food competitors, the aforementioned E-Center as the only larger scale food retailing scheme and some smaller supermarkets. Nevertheless, Kaufland has by far the largest sales area, so that at least supermarkets can be considered to be only indirect competitors. Kaufland offers a very deep and broad product range with more than 50,000 products, while discounters and supermarkets offer a limited product range with only 7,000 to 11,000 (supermarkets) or 400-2,500 (discounters) articles. Therefore, these retailing forms address different customers or customer needs. While supermarkets and discounters cater to the daily needs of customers, Kaufland offers a larger variety for products that are bought on a non-daily basis.Based on this, the primary and secondary catchment area of the Kaufland is sufficient to operate successfully in this location.

The strongest competitor for Kaufland is the small retail park anchored by E-Center located at Seegraben 5 close to the city centre. The E-Center is somewhat smaller than the Kaufland, has a significantly lower share of non-food items and focuses on a good presentation of the goods sold. Thus, Edeka-branded stores are usually perceived as quality-focused rather than cut-price focused as Kaufland usually is. Additionally, the tenant mix in the retail park with consumer electronics and a pet shop differs from the subject property; thus, we do not see direct competition. Hence, we assess the competition level to be medium.

With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Hence, we believe that a higher market rent is achievable after the end of the lease contract. Please also refer to the rent/turnover analysis on page 8. We have not been provided with turnover figures of B1. The rent of B1 would result in a productivity of approx. € 1,800/m². However, toom (incl. B1) has an average productivity of only € 1,000/m². Additionally, the lease comparable for DIY in Aschersleben indicate that the market rent and turnover expectations of DIY tenants are lower than € 1,800/m². Thus, we reduced the market rent accordingly. Nevertheless, apart from B1, the lower turnover is already reflected in below average contractual rents and in the market rents used in the valuation. Thus, we assess the rents paid all in all to be sustainable on the current level.

The tenants within the property, apart from the food stands, suffer from below-average turnover, likely because of the low purchasing power in the region. Nevertheless, based on the turnover data made available to us, we believe that the total rental income is sustainable. The smaller tenants benefit from the fact that all customers of Kaufland pass by their premises with the exception of one shop unit. The vacancy rate within the property is low (8.5%) with only two units being unoccupied. The unoccupied unit is not part of the mall, but has a separate entrance close to the main entrance. Nonetheless, the entrance situation is quite problematic not catching the attention of customers. Therefore, we believe this unit to be difficult to let.The average rent paid is € 8.76/m²/month and the weighted average lease term is 8.3 years. The non-recoverable costs of the property are above average due to the fact that Kaufland agreed in its lease to not pay for costs such as ground tax, insurance fees or management costs.All in all, the property offers an attractive tenant mix with regards to the economic situation of the region with two strong anchor tenants.

The subject property is a retail park located in the outskirts of Aschersleben at an arterial road. It offers good visibility and accessibility by car. The property is anchored by a B1 DIY discount store and a Kaufland self-service department store. Additionally, smaller units are let to Deichmann, AWG, among others. Furthermore, a petrol station advertising low petrol prices is situated on site as well.The retail park predominantly focuses on price-conscious customers with a discount DIY store and Kaufland with plenty of non-food bargains and a wide range of own brand food products. Tenants such as AWG and Deichmann fit into this strategy; thus, the tenant mix within the subject property is assessed to be good. Moreover, a discount furniture store shares the parking area with the subject property, which is a combination fitting combination. Therefore, it is likely that the retail park is able to attract a number of customers who usually would not be in this catchment area. Due to this positioning of the property in the market, the level of competition is assessed to be only medium though there is a better located smaller retail park in Aschersleben's city centre.


This competitor is a Hellweg DIY store at the other end of town, next to toom DIY. The Hellweg DIY store is larger than B1 in the subject property and comprises a garden centre as opposed to the B1. Due to the different market positioning of Hellweg and B1, these two are not direct competitors. The Hellweg is approx. 3.2 km away from the subject property.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:

* M = Maintenance, GT = Ground Tax, I = Insurance Costs, PM = Property Management


/ month

7 Hang Bui

11.16

€ 30,296

Retail10 NKD Vertriebs GmbH

11 Reiseland GmbH & Co. KG

Let

Page 6 of 12

PM

28.02.2017

62

Retail

5 Metzgerei Carsten Kneusel

3 BRL Center GmbH

124

350.00

5.48

Retail 53.26

27.68

2 Allg. Warenvertriebs GmbH Retail

pays VAT

31.07.2028

28.02.2022

75%

75%

Start

75%

31.03.2013Hoymer Chaussee 108

Tenant

Matrix Portfolio

31.01.2011

Status m² / unitLet

TenantLeaseArea

Let

Let

30.09.2026Yes

01.03.2002

Yes

Rent / m² RenewalLeaseLetting

1 Kaufland Warenhandel Brandenburg GmbH & Co. KG Retail 5,533

/ month Probability

313

9 Blochwitz Other Units

Let

Retail

8 Thurländer Hähnchen Grill GmbH

14 Convenience Concept GmbH

6 Ihr Bäcker GmbH & Co. KG

01.10.2007

01.08.2008

Yes

GT I PM

75%

Retail

Yes

€ 700

PM

4 Metzgerei Carsten Kneusel

Retail 151

1,345

Let

Other Units

2

01.09.2007

680.00

€ 15,000

€ 4,179

Let

Let

06449 Aschersleben

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 125,320

73

Let

Let

1Let

€ 3,253 31.08.2014

€ 5,500

31.03.2014

01.01.2011

30.09.2014

01.10.2004 30.09.2016

€ 1,419 09.08.1993

31.12.2014

01.01.1996

75%

75%

31.12.2015

75%

01.12.2002

GT I PM

75%

75%

0%

GT I PM

Yes

Yes

GT I PM

PM

abc

PM

75%

75%

75%

75%

14,901 m²

0%

75%

75%

75%

75%

75%

31.03.2014

75%

31.08.2015

GT I 30.06.2019

GT I PM31.10.2014

PM28.02.2022

01.04.2006

16.04.2012

15.09.2010

04.08.1993

75%

31.03.2014

75%

75%Yes

10.38

75.34

1000.00

Yes

Yes

19.30

22.92

Yes

Yes

GT I PM

1 € 938

€ 1,0001

937.55

31.08.2014

€ 6,604

M GT I PM75%

Total

72Let

Let

€ 680

LetOther Units

13 Frisör Klier GmbH Retail

15 Marktkauf Holding GmbH

GT I PM12 Erdmann / Focke Retail 54 € 1,050 Yes

GT I PM32.42 28.02.2018

GT I PM41 € 1,346 Yes 01.09.200732.89 31.08.2014

€ 2,335

Retail 4,880 € 38,399 Yes 01.07.1999Let 7.87

16 Vacant Retail 478 € 0Vacant 0.00

17 Deichmann SE Retail 443 € 9,353 Yes 02.08.1993Let 21.10

18 Allg. Warenvertriebs GmbH Storage 129 € 0 Yes 01.03.2002Let 0.00

19 KSK Aschersleben-Straßfurt Other Units 1 € 273 Yes 01.09.1993Let 273.18

20 Schwarz Außenwerbung GmbH Other Units 1 € 433 Yes 01.01.2010Let 433.33

PM21 Marktkauf Holding GmbH Other Units 1 € 424 Yes 01.07.1999Let 424.00 30.06.2019

M GT I PM22 TOTAL Deutschland GmbH Petrol Station 1,200 € 1,570 Yes 01.04.2003Let 1.31 31.03.2018

M GT I PM23 Warenautomaten H. Bögershausen Other Units 1 € 10 01.06.2007Let 10.00 31.03.2014

M GT I PM24 Aaldering Other Units 1 € 333 01.01.2010Let 333.33 31.03.2014

0%25 Mall Income Other Units 1 € 224 00.01.1900Let 223.90 30.09.2026

26 Parking External parking 700 € 0 No 00.01.1900Let 0.00 00.01.1900

(Copy)


Valuation date:

Inspection date:

Prepared for:

* months ** years ***structural vacancy


.

Renewal

31.01.2011

LeaseRe-letting Initial

Valuation Assumptions

Tis6

ProbabilityArea Rent Agency

Fees*Void VPV* Abatem.*Void*

€ 250

abc

0 0 0 0%0 0 26 Parking External parking 700 € 0.00 € 0 € 0

0 0 0 0%0 0 25 Mall Income Other Units 1 € 0.00 € 0 € 0

0 0 5 75%0 0 24 Aaldering Other Units 1 € 0.00 € 0 € 0

€ 0 0 3 5 75%0 0

3 10 75%0 0

23 Warenautomaten H. Bögershausen Other Units 1 € 10.00 € 10

Petrol Station 1,200 € 1.31 € 1,570 € 0 0

0 3 5 75%0 0

3 5 75%0 0

21 Marktkauf Holding GmbH Other Units 1 € 424.00 € 424

75%3 3

20 Schwarz Außenwerbung GmbH Other Units 1 € 433.33 € 433 € 0 0

5

19 KSK Aschersleben-Straßfurt Other Units 1 € 273.18 € 273 0 3 5

€ 8.00 75%

0 3 5 75%15

0 3 15 15

€ 15.00 € 6,650 € 100

6 6

€ 100

15

75%

12 12 0 3 5 75%

0 3 10

75%

0 3 5 75%

0 3 5

0 9

0 3 59

50

75%

€ 0

75%

75%

5 75%6

0

6

9 9

€ 100

75%

3

0

5

3

5

6

0 6

12

75%

9

6 5

3 6

3

3

75%

0

3

5

75%

75%

3

0

75%

5

75%

3 10

5

75%

3

6€ 100 6

6 53

0 5

€ 0

€ 0

Total

22 TOTAL Deutschland GmbH

13 Frisör Klier GmbH

€ 0

€ 100

€ 100

€ 100

72

€ 0

€ 50

9 14 Convenience Concept GmbH Retail

16 Vacant

Retail15 Marktkauf Holding GmbH

Retail

Page 7 of 12

€ 126,15114,901 sqm

Term**

Matrix Portfolio

Re-letting

€ 1,000

€ 4,745

€ 20.00

€ 1,032129

313

41

4,880

€ 0

443

Other Units

€ 30.00

€ 2,160

6 Ihr Bäcker GmbH & Co. KG

€ 30.00

18 Allg. Warenvertriebs GmbH

7 Hang Bui

Retail

Retail

Retail

Retail

8 Thurländer Hähnchen Grill GmbH Other Units

5,533

3 BRL Center GmbH Retail

Other Units

2 Allg. Warenvertriebs GmbH

1 Kaufland Warenhandel Brandenburg GmbH & Co. KG

1

9 Blochwitz

12 Erdmann / Focke

Storage

17 Deichmann SE

10 NKD Vertriebs GmbH


Retail

Retail

1,345 € 10.00

Market

6

15 0

0

3

6 0

Rent /month€ 35,967

€ 65.00

€ 4,530

€ 8,060

1

€ 6.50

151

Rent

€ 125.00

€ 100

€ 31,720

9

€ 0

€ 1,224

€ 5,258

€ 1,000

€ 800

€ 11.00

€ 6.50

€ 1,238

€ 10.00

€ 22.50

€ 800.00

54

478

4 Metzgerei Carsten Kneusel Retail 124

5 Metzgerei Carsten Kneusel 2 Retail

73

62

€ 13,446

6

€ 100

€ 1000.00

€ 30.00

€ 3,133

6

12

€ 65.00

€ 1000.00

9

Market

€ 100

06449 Aschersleben

Retail

sqm/unitTenant Name

Retail € 50

€ 50

Hoymer Chaussee 108

Area Category

1

€ 1,227


15

6

6

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:

Space productivity Turnover to rent ratio Explanation

7,000

Usual market % - levels6,500

Market rent

6,000 Contractual Rent

5,500 Rents %

Contractual5,000

Market

4,500 4% of turnover

3% of turnover4,000

2% of turnover

3,500 Turnover potential(net)

Sales Area3,000

Total Areain € / m² p.a.

based on sales area

5AA277


0.00

1.31

9.13

0.000.000.00

1,660,347

8.00

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year0

0.00

13,294

18,8400

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

13,165

06449 Aschersleben

00

m²Use Category

Rent RentMarketRent

Market Over-/ Under-

5.5%1,513,0010.00

0

014,393

Market

01,589,723

€/month

DIY

Office

0

0

0

0126,083

8.46%

8.76

0

0€/m²/month

1,909External parking

Rent

700

ContractualRent

€/year

0.00%9

0.00%

0.00%0

1,228129

0.00%

Matrix Portfolio

Hoymer Chaussee 108 31.03.2013

1,200

00Commercial

0

Contractual

0

00

Potential

Area Vacant

700

€/m²/monthRent

0.00%700

Rent

00.00%


Use Category

Germany

31.01.2011

Capital indicator

€ 7,800,000

Assessment of Kaufland market rent

Comment

WALTPayment Index 79

18,397,517 €

The main tenant is a corporation belonging ultimately to Edeka Group, which purchased Marktkauf in2005. Marktkauf operates self-service department stores and used to operate DIY stores until 2007,when they sold off about 150 stores to Rewe (toom DIY) and closed the remaining ones. The EdekaGroup is the largest German supermarket corporation, currently holding a market share of 26% in foodretailing.According to Dun & Bradstreet (D&B) Rating as of 06.02.2011 Marktkauf Holding GmbH has a low credit risk. The risk of insolvency (D&B Score) within the next 12 months compared with other Germancompanies is assessed to be quite low, i.e. 77% of businesses on the German database have the sameor higher risk of failure.

Rent p.a.

4,880 m²

Self-service department stores usually can afford to pay a rent in the range of 2% to 4% of their net turnover (economically sustainable rent burden) and have a space productivity of about € 4,000 to € 6,000 per m²sales area. The two graphics above indicate, how the contract rent of the main tenant Kaufland as well as the assumed market rental level, can be assessed on the basis of usual market ranges. This analysis isbased on the turnover potential figures prepared by Trade Dimension.

2.5%

2.1%

7.87

6.50

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

9.5%5.1%

47,2863,941132,626

437.831,591,511

0.0%0.0%0

0.0%

0

1,570

0

0.0%0-100.0%

0

12.57

9.42

0

30%

0

Marktkauf Holding GmbH

6.2 years

~ 4,582 m²

0 00

Share of total income

Main tenant

€ 460,782

D&B Rating of Main Tenant

Tenant name

6.28

Storage1,570

0Petrol Station 1.31

0.00Internal parking 0.00

9.60479.48

0ResidentialCommercial

00

18,840 18,8401,032

0 0.0%00

00

12,384

m²

0

Property Analysis

0 0.0%0.00 0

121,71900.00

9.25

Warehouse

Warehouse

Area Let

14,522

Other Units

01,228

Residential129

0

0

0

8.53%

Contractual

m²Area Analysis Lettable Area

1,200

1,460,634

Retail

0.00

Total areaPetrol Station

09

Income Analysis

Internal parking

Office

DIYRetail

Storage

127,60551,783

1,531,257

0 0

51,783

0

4,315

0.00

0.000.00

Other UnitsTotal area

External parking

Total parking

€ / m²

7.87

6.286.50

9.42

12.57

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY

Warehouse Commercial Residential

Storage

4,015

(Copy)


Valuation date:

Inspection date:

Prepared for:

General Property Assumptions Discount Rate Comment

Capital expenditures*

Vacancy costs* on the basis of cost estimates provided by Brack Capital Real Estate, dated April 2013

Contract** Inflation(month 1 x 12)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%

Market Rental Growth

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%

Market(assuming full occupancy)


The main tenant, Marktkauf Holding, has a lease expiring in 2019 with the option to prolong its lease by five years two times. The rent is indexed and will be adapted by 60% of the CPI change whenever the changeexceeds 10 percent in relation to CPI basis. The tenant does not contribute to costs concerning maintenance work for the roof and structure of the property. Furthermore, the tenant does not pay for managementcosts. However, the share of ground tax and insurance fees are borne by the tenant. The second largest tenant, Kaufland, has a lease expiring in 2026 with the option to prolong its lease by five years three times.The rent is indexed and will be adapted by 50% of the CPI change whenever the change exceeds 10 percent in relation to CPI basis. Kaufland does not contribute to any costs in association with maintenance costsfor roof and the building structure, ground tax, insurance fees, and management costs. The remaining tenants usually do not pay for maintenance costs for roof and building structure and pay a fixed amount eachmonth for management costs (usually around € 100). However, insurance fees and ground tax are paid by these tenants. The rent is mostly indexed with 100% adjustment of the rent whenever the German CPIchanges by 10% or more. The WALT amounts to 7.4 years.

0 €

0 €

€ 5,459€ 16,157

€ 5,547

Breakdown of Non-Recoverable Costs

€ 0

7.8%

5.22%

% of Gross

€ 10.00 /m²/p.a.

€ 657.8%

0 €

€ 5,289 0 €0 €€ 5,206

0 €€ 5,117

8.8%€ 12,321

€ 15,118 7.7%8.1%€ 3,866

€ 14,670

€ 94

0 €

€ 0.00 /m²

Management costs

Other non-recoverable costs

€ 8.42 /m²

€ 23,853€ 5,028

€ 14,875

5.02%

Total non-recoverable expenses

Maintenance costs € 79,870

€ 129,587€ 127,607€ 128,784

€ 217

€ 1.58 /m²

% of Gross

0.00%

€ 22,969

€ 23,873

€ 5.50 /m² € 79,870Contract Rent

per year

Lease Contract Commentary

€ 5.50 /m²

per year

Ground taxInsurance costs

Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 7.35%

7.10%


Hoymer Chaussee 108

Assumptions

There have been some changes in the tenancy schedule. The following tenants have prolonged their lease contracts: KSK Aschersleben-Straßfurt (open ended), Hang Bui (open ended) and Blochwitz (openended). In these cases, we assume a remaining lease term of one year.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yield profile is aligned with the market/other transactions. We have taken intoaccount such facts as the remaining lease term with the well-known anchor tenant, the tenant mix thevacancy rate as well as the location within the federal state Saxony-Anhalt.

31.01.201106449 Aschersleben

Germany

31.03.2013

€ 0.33 /m²€ 0

0.32%€ 14,621€ 1.01 /m²

€ 0.00 /m²€ 4,862

per year

Year 8

€ 15,388€ 24,797

€ 89,661€ 88,244

€ 25,315

€ 82,570Year 3

€ 24,935

% of Total

Year 7

€ 4,879€ 23,056

€ 131,855

€ 135,047

€ 190

Total

€ 86,868 € 25,482



Other Non-

€ 07.74%

€ 0.33 /m² € 4,862

Insurance


0.92%

Market Rent

0.00%7.99%

1.50%€ 1.64 /m²€ 1.01 /m² € 14,621

€ 122,322

per year

€ 8.49 /m²

Total Non-recoverable Costs

€ 123,226

€ 4,947

Costs per yearrecoverable Costs CostsVacancy

Gross Revenue

€ 24,863 € 16,939 0 €€ 25,640€ 93,885 € 17,190

Year 10€ 141

0.95%1.50%

Market Value

€ 91,102

Year 4

Year 6

€ 5,717

€ 22,886

Year 11€ 92,514

€ 16,681Year 9

GroundManagementTax

Maintanance

€ 24,823

CostsCosts

€ 84,042

Year 1Year 2

€ 80,121€ 81,243

€ 16,417

€ 85,491 € 15,653€ 15,905

Year 5

€ 25,108

8.3%

0 €€ 5,373

€ 142,5738.7%8.4%

0.31%

0 €

€ 4,387€ 5,633

€ 15,066

€ 1,654€ 144,336

€ 147,7268.3%

0 €

7.9%

€ 140,092

Year after 2021

€ 133,609

abc

€ 1,341 € 137,8139.7%

Page 9 of 12

Inflation

after 2021

1.6%Management costs

1.6%Rental GrowthYear

Market

8.8%

8.1%7.7% 7.8% 7.8% 7.9%

9.7%

8.3% 8.4%8.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%Non-Recoverable Costs as a percentage of Total Gross Revenue

Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:

Contractual gross rental income (month 1 x 12) total p.a.per m²/month

Market rental value total p.a.

Over-/Underrent Purchaser's costs

Net Initial YieldNet Reversionary Yield

Gross Initial YieldGross Reversionary Yield


6.50%

Market Value (rounded)

€ 1,186,272-€ 6,436

-€ 85,199

-€ 3,248

-€ 144,336

Gross Capital Value (rounded)

€ 21,300,000€ 1,531,257

€ 1,377

Page 10 of 12

7.66%

€ 1,552,770

€ 8.79 Total

Total € 20,000,000

6.61%

For our risk evaluation, we primarily considered the covenant strength as well as the lease duration of the existing contracts. The main tenant, Marktkauf Holding GmbH, has good covenant strength and is asubsidiary of Edeka Group. However, the premises are occupied by a subsidiary of REWE (B1). It could not be clearified whether the premises are sublet with consent of the landlord or were taken over by REWE.For the purpose of this valuation, we assumed that the lease with Marktkauf is still in place and was sublet to REWE with consent of the landlord.We consider the covenant strength all in all to be adequate to ensure the income stream at least until the lease expiry in 2019. The same applies for the tenant Kaufland, which has very good covenant strength;thus, we consider the cash flow until lease expiry in 2026 to be secured. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance, condition and building age, third-partyusability, competition situation and location.

-€ 5,088

abc

Valuation Comment

€ 1,591,511 per m²

4.49%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent.We have been provided with information regarding necessary capital expenditures. All Capital expenditures for repairs in the first year as well as in the periods of year 2 to 5 and year 6 to 10 are considered to becovered by the maintenance costs of € 5.50/m² per annum.Regarding comparable rents we have had recourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to thesection "Investment Comparables". 0

6.89%

Year 10 € 1,657,523€ 1,673,886

€ 0

€ 1,710,373Year 9

-€ 133,609

TIs and

-€ 128,784


€ 1,653,147 -€ 1,400

-€ 13,939-€ 114,606

€ 1,524,488

€ 1,565,202 -€ 1,950 € 1,561,487

Income

-€ 1,194

-€ 46,618-€ 1,747 € 1,522,393

€ 1,515,570

Net

31.03.2013

7.35%Commissions Cash FlowCapital

€ 1,402,053€ 1,198,092€ 1,357,385

Year 6Year 7

-€ 26,343

€ 1,555,830

-€ 135,047Vacancy

Year 5

€ 1,688,644 € 1,662,301Year 8

Year 4

Year 2-€ 4,649

Gross

€ 1,692,942

Market Value

Rental recoverable Operating

Hoymer Chaussee 108

€ 1,533,794

€ 1,217,960

7.96%per m²

€ 1,525,715

-€ 140,092-€ 137,813€ 0 -€ 6,665

Gross Value of Surplus Land

€ 22,129,680

€ 1,467

€ 21,346,377-€ 142,573 -€ 2,109€ 1,709,339

Rent Overview

Gross Capital Value incl. Surplus Land

Market ValueValuation Results

€ 21,346,377

-€ 1,912Total Cashflow (incl. Terminal Value @ 7.10 %)

per m²/month

€ 1,566,766

€ 1,060,340

€ 0

-€ 2,350 € 0

Expenditures€ 0

-€ 127,607 € 1,525,540

Costs

€ 1,279,043

€ 1,513,187

Abatements

€ 1,329,583

-€ 13,920

-€ 147,726€ 1,503,884

-€ 45,423€ 0 € 1,377,989

€ 1,522,373

Year 3 € 1,657,796

€ 1,474,095€ 836,350-€ 3,578

-€ 131,855

€ 770,059

€ 1,590,184

Revenue€ 1,537,100

Turnover

Germany

€ 1,461,400

Revenue

€ 1,656,320 € 0

€ 0 € 1,687,685

Rent

€ 0

€ 1,664,397-€ 66,136-€ 127,297 € 0Year 1

€ 1,672,234

€ 1,680,803

Year 11 € 1,714,427

€ 1,698,811

€ 9.13

€ 0-€ 17,393

€ 1,711,349 -€ 53,826 € 0

€ 1,654,841-€ 5,257

-€ 155,088

€ 752,877

Yield Overview

€ 1,402,053

€ 1,525,254-€ 129,587

€ 1,701,161

06449 Aschersleben

Cash Flow

Non-Total

-€ 1,765-€ 1,866

€ 0

€ 10,888,164

-€ 36,487 € 0-€ 25,172

Present

€ 885,801

€ 1,131,994

-€ 7,843

Leasing

31.01.2011

Matrix Portfolio

Value @

6.6% 6.8%7.1% 7.1%

7.3% 7.3%

6.5%

7.1% 7.2% 7.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0

€ 1600000.0

€ 1800000.0

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Ru

nn

ing

yie

ld

Re

nta

l in

co

me

Total Gross Revenue versus Net Operating Income

(Copy)


Valuation date:

Inspection date:

Prepared for:


Hoymer Chaussee 108

31.01.2011

abcPage 11 of 12

View of discount furniture store next to the subject property

Sales area of Kaufland

Matrix Portfolio

View of the mall area

06449 Aschersleben

Photos

View of the petrol station on site

View of the delivery zone


31.03.2013

Indoor view of the main entrance and butcher and bakery shops

(Copy)


Valuation date:

Inspection date:

Prepared for:


Property TypeYear of

ConstructionArea

Gross Multiplier

HypermarketHypermarket

Hypermarket

Hypermarket

n.a.

n.a.

Hypermarketn.a.n.a.n.a. 22,926 m²

10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 4,435 m²Self-Service Department StoreDIY

3,141 m²

9,441 m²DIY11,566 m²

5,430 m²5,434 m²DIY

real NordhornRödermark

HalberstadtDIY

Praktiker

StaßfurtHellweg

OBI AG

toom

Magdeburg

Slightly worse purchasing power

Slightly better purchasing power

€ 32,526

€ 5.59 /m²€ 61,367

€ 5.99 /m²

Total Rent p.m.

€ 36,408 € 6.70 /m² Slightly better purchasing power€ 6.50 /m²

Other federal state ,better purchasing powerSlightly better purchasing power

€ 64,654

Especially as a result of the fact that Germany’s economy has been very stable in the past years andshowed signs of growth in the recent past, we see retail to remain amongst the largest asset classes in2013. Particularly those investors who seek a core investment with upward potential find the best fit inretail. Unlike before, their focus is not only on core properties. Alternative options like, for instance, value-add assets, assets with shorter rental lease contracts or vacancies are increasingly considered.However, building condition as well as location quality remain among the most important requirements.

Area

Significantly better purchasing power€ 6.65 /m²

€ 27,408 € 6.18 /m²€ 20,888

€ 5.99 /m²€ 32,526

CommentWorse purchasing power

Rent p. sqm€ 21,441 € 4.60 /m²

Same federal state; similar purchasing power

06449 Aschersleben

City

There is no homogeneous rental level for retail space in retail warehouses or retail parks throughoutGermany. However, the spread between the average and the absolute prime rent is not as big as inhigh street locations. The overall potential for rental growth in retail parks in Germany is bestsummed up as mediocre. Depending on the tenant branch, rental rates for discounters, departmentstores and DIY stores remain stable due to the high competition on the market, but the rents forfashion stores have uplift potential simply due to the fact that these stores are increasing theirpresence in retail parks and are prepared to pay high rents.

Leasing Comparables

4,661 m²

Leasing Market

Kaufland

Tenant Property TypeSelf-Service Department StoreKauflandSelf-Service Department Store

31.03.2013Hoymer Chaussee 108

Matrix Portfolio

13,000 m²Hypermarket

8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket

Investment Comparables

11,200 m²

MaulburgKaufland

The rents within the different branches vary. This is due to the diverging location assessment andturnover expectancy of the different tenants. If in the case of a retail park the management succeedsin establishing good anchor tenants, which guarantee a high visitor frequency, then the turnoverexpectancy of secondary tenants tends to be higher. Therefore, some anchor tenants are able tonegotiate lower rents because their existence in a property increases the rental level of the others.Depending on the size of the retail unit and the branch of the tenants, rents in retail parks in westernGerman locations generally range between € 5.00 and € 13.00 /m²/month.

5,430 m²

Furthermore, in most retail property classes, there is still a clear lack of product remaining. A yieldcompression could be observed from 2009 until H1 2011, came to a halt and continued in H2 2012 withrespect to retail parks, shopping centres and retail high street unit shops/department stores. However,the yield compression as well as the stabilisation applies to core properties rather than secondaryassets. Net initial yields for prime retail parks went down to approx. 6% at the end of 2011, remainedstable until the Q3 2012 and then decreased.

StaßfurtCrimmitschau

Depending on the size of the retail unit and the retail format of the store, rents for supermarkets aregenerally slightly higher than the rents for discounters. Rents for supermarkets in western Germanlocations generally range between € 7.00 and € 13.00 /m²/month. Rents for discounters in westernGermany generally range between € 6.00 and € 12.00 /m²/month, while discounters located ineastern Germany generally achieve slightly lower rental rates ranging between € 5.00 and € 11.00/m²/month. Drugstores, textile, shoe and electronics branches generally achieve rental rates rangingfrom € 7.50 to € 12.00 /m²/month for rental areas with a size between 500 and 750 m². DIY storesneed extensive space due to their broad product range with rental prices ranging between € 6.00and € 10.00 /m²/month.

The rental level of retail warehouses and retail parks is the result of their location in urban centres orrural areas, and the resulting quality of the location in terms of catchment area, competition,accessibility and visibility. While rental levels in Bavaria generally lie slightly above the averagewestern German rent levels due to the state’s strong economy, rental levels in eastern Germantowns are generally slightly lower than their western counterparts, as these areas have a lowerpurchasing power and generate on average lower revenues. In the retail warehouse and retail parksegment, the maximum rents are determined by a percentage of the turnover expectancy.

Investment Market

Investors continued to focus on the office property asset class in the first quarter of 2013. This assetclass had a share of around 40% of the transaction volume (corresponding to almost €2.9 billion), andwas therefore well ahead of property used for retail (24% share and €1.7 billion). The sale of a specialiststore portfolio consisting of 45 properties for €135 million represented the second-largest individualtransaction after Kö-Bogen. Mixed-use properties accounted for a 14% share, while distributionwarehouses and hotels each had an 8% share of the volume (around €570 million).


WALT 15.7 years, good location, main tenant Kaufland, partly leasehold

Date of Transaction

Leasing and Investment Market

In the retail investment market, the shares of some of the asset classes shifted slightly between 2011and 2012. In the last year the shares of shopping centres and high street properties/department storeswere nearly equal at 38% (2011: 32%) and 39% (2011: 45%); both shifted slightly. Retail parks nowhave the 3rd largest share with 15% (2011: 8%) and are followed by retail warehousing units, whichaccounted for 5% (2011: 12%). Investments in supermarkets/discounters represented 3% in 2011 andstood at 2% in 2012. Shares of retail assets went down from 45% in 2011 to 31% in 2012.

31.01.2011

In spite of the year-end rally in 2012, it was not actually possible to complete all transactions in the finaldays of December. As a result, the first quarter benefited from this backlog with a transaction volumethat was more than a third higher than the year-ago level. The transaction volume for commercially usedproperty reached around €7.1bn and was therefore 35% higher than the volume in the first quarter of2012. Of the €4.6bn that was invested in the Big 7, €1.3bn related to properties in portfolio purchases.

20122,269 m² 2012

Comment

Q2 20112012

Anchor tenant Kaufland & Toom, WALT below 5 years, portfolio transactionAnchor tenant Marktkauf, WALT 17.5 years, very strong location in southern Germany

2012Anchor tenant real, WALT 15 years, portfolio transaction

Page 12 of 12

Q3 201113.1-foldAnchor tenant Famila, WALT 9.2 years, strong location in northern GermanyAnchor tenant Marktkauf, WALT 5 years, located in southern Germany

abc

Q2 201213.8-fold

Q2 2011 Anchor tenant real, located in Bavaria, WALT 9 years13.7-fold

Anchor tenant Real, very underented, stron location in southern Germany, WALT 5 years

(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 2 16 to 25 years Macrolocation 4 Good location and catchment areaLettable Area 4 Between 12,500 and 15,000 m² Microlocation 4 Good micro locationProperty condition 3 Average building condition Commercial activity 4 Average commercial activity nearbyGeneral impression 3 Average general impression Competition 3 Average competition level

Investment Quality

WALT 3 WALT three to seven years Investment market 4 Well developed property marketOver- / underrent 4 Slightly underrented (-5% to -15%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

Medium to high level of competition

31.03.2013


Key Figures

Gögginger Straße 119

1995


Building

Liquidity

Valuation Results

Location


7.42%

Discount Rate

7.42%

excluding capital

expenditures6.75%



7.0 years

0

Good tenant mix


Good location within the city district


€ 7.01

1969


86199 Augsburg

Property Summary

Retail Park

Germany

31.01.2011

Property type


Kaufland Vertrieb GAMMA GmbH & Co. KG


0.0%

Main tenant


-11.6%

€ 1,325,019

€ 1,164,091



Strengths

Good accessibility by car & public transport

0

Re-letting or negotiations concerning the prolongation of existing contracts may result in worse Prolognation of the lease contracts after expiry Difficult relettability of the fitness studio on 2nd floor

0

0

€ 9.03 / m² / p.m.€ 17,100,000

6.90%

The site is L-shaped and comprises a three-storey split levelled main building (in addition to a lettable basement level), an adjacent three-storey car park, offering approx. 550 parking spaces, as well as a petrolstation and a car wash. The construction of the main building started in 1969 along with the petrol station and the car park. A major modification took place in 1995 and the building in its existing form was finallycompleted in 1997. The building structure is made of concrete columns, pre-cast concrete beams and concrete slab ceilings. It has a flat roof.There are two main entrances; one from Gögginger Straße and one from Peter-Dörfler-Straße with access from the parking lot. The fitness centre has an additional separate entrance used after 8 p.m from Peter-Dörfler-Straße.

0

6.47%

Market Rental Value

12.91

€ 1,499,573 p.a.

The retail unit let to Kaufland is strongly underrentedWeaknesses

Matrix Portfolio

Limited third party use of space let to Kaufland

€ 1,236 per m²

Synergies from other wholesalers in the vicinity

0

Kaufland comprises the basement and the ground floor. Other smaller retailers, such as a bakery, pharmacy, hairdresser, and discount clothier, occupy the remaining area along the mall on the ground floor. Twoescalators provide access to the basement, where produce can be found. This area could be divided into three parts with separate entrances. A fitness centre occupies the second floor. The third floor is amezzanine floor with plant rooms. The upper floors can be reached via escalators and lifts. The petrol station is located on Peter-Dörfler-Straße with two levels of parking overhead. Next to the petrol station is awaiting zone for trucks.

equals toequals to

Market Value






0

€ 0.97

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






132.15

Augsburg lies on the Lech and Wertach rivers and is situated near the motorway A8, connecting Munichand Stuttgart. The federal roads through Augsburg are the B2, B10, B17 and B300. The main trainstation offers regional connections as well as Intercity Express (ICE) connections to cities such as vonMunich, Berlin, Dortmund, Frankfurt am Main, Hamburg und Stuttgart. Direct express trains (EC) arealso offered to Vienna, Amsterdam, and Paris. Augsburg is a university town, as well as one of the mostsignificant industrial locations in southern Germany. It is home to the University of Augsburg and two“Hochschulen”, as well as major research institutes. The service sector has been growing in the pastyears and accounts for approx. 20% of employment. Many well-known companies are located in the city,e.g. MAN Diesel, Walter Bau, Osram, Fujitsu Siemens Computers, EADS and MT Aerospace.

Micro Location

Augsburg is one of the oldest German cities, along with Trier and Kempten. Today it is the third largestcity in the federal state of Bavaria, following Munich and Nuremberg. It lies in the south west part ofBavaria within the metropolitan area of Munich and is home to approx. 265,000 inhabitants. Due to itsaffordability, Augsburg has become a sought-after residence for commuters working in Munich, which isa little more than an hour away by car. The number of commuters and housing rent have beenincreasing.

A high school is also located at just a 5 minutes walk to the south on Gögginger Straße.

Location


31.03.2013

86199 Augsburg 31.01.2011

Augsburg (Urban District)

Germany

Bavaria



3.9%

5,469

Augsburg Macro Location

3.5

Micro Location

485

The property is located within the city district of Augsburg on the corner of Gögginger Straße, a majorarterial road, and Peter-Dörfler-Straße, approx. 4 km south of the city centre. Major roadways B17 andB300 intersect with Gögginger Straße, just south of the property. The retail building is easily accessiblefrom city by car in approx. 15 minutes. Sufficient parking at the property is provided by a multi-storey carpark. The retail park is also easily accessible via public transport, as bus and tram stops are locateddirectly in front of the building. The surrounding area is mostly residential and commercial area. Otherlarge retail warehouses are located in close vicinity, such as Promarkt (electronics), Media Markt(electronics), Lidl and Aldi (discount supermarkets), and a Netto Marken Discount (discount store). Ahagebaumarkt (DIY store) can be found just 5 minutes in the direction of the city centre.


1.5%

108.3499.80

4.4%

5,469

7.2%

Structual Data

abc


266,647

86199

18161,816

12,510,331266,647

Augsburg

1.1%

140,347

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)

Source: Extract from the land register dated 08.01.2008


Soil contamination

Section 3 (Loans)

Gögginger Straße 119 31.03.2013

31.01.2011

Germany

No Suspicion

According to information from the local planning authority, no legally binding development plan exists.Town planning issues are governed by § 34 of the German Federal Building Code. This paragraphstipulates that new developments and their designated uses are required to blend in with theirimmediate surroundings, so as to show consideration of nearby types of uses. According to the localplanning authority, the site could be characterized as (SO) special zone with mixed-use includingcommercial.


TPL Biberach S.á.r.l., Luxembourg

Land Register

10640 421/10415/28415/29 415/30 415/31

421

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan


Source: Cadastral plan dated 30.06.2008

Matrix Portfolio

86199 Augsburg

SO (special zone)

n.a.

0

Sheet Plot Parcel

n.a.

Tenure

Site servicing


0 m²

n.a.

Town Planning

Fully serviced


Irregular

The site consists of six plots: 421/10, 415/28, 415/29, 415/30, 415/31, 421. The site has an eventopography and an irregular shape. It is surrounded by a road to the west and to the north and a smallpaved road to the east. According to the environmental due diligence dated July 2007, the site is notregistered in the “Altlastenkataster” (contaminated land cadastre). The general risk of subsoilcontamination at the Kaufland site without petrol station and car wash is considered to be low tomoderate. This risk is moderate to high for the site with the petrol station and car wash. For thepurposes of this valuation, we have assumed that the subject property is free of any soil or buildingcontamination.

There are several limited personal easement: Right of fuel service station in favour of CONOCO Mineraloel GmbH, plot 421; Right of transformer station and pipeline in favour of Lech Elektrizitätwerke, plot 421; Right of way on sidewalk in favour of the municipality of Augsburg, plots 415/28, 415/29, 415/31; Right of noise barrier in favour of the municipality of Augsburg, plots 415/29, 415/31; Right of gas & water pipeline in favour of the municipality of Augsburg; plots 415/28, 415/29, 415/30, 415/31; Right to hold and operate a self-service department store in favour of Kaufland Dienstleistung GmbH & Co. KG, plots 421/10, 415/28, 415/29, 415/30, 415/31, 421. Easement (right of access) in favour of the owner of plot 421/24.


Land charges in the total amount of € 13,143,373 in favour of Bank of Scotland (Frankfurt branch), Frankfurt am Main; entered on 09.10.2007.

Local Court of Augsburg, land register of Göggingen

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



132.15

4.4%

abc


86199 Augsburg

Name86199 Augsburg, Bergiusstr. 1

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress

Hypermarket



Page 4 of 12


0.90 km5,494 m²Self-service dep. store

13,591

High

MediumLow

1,600 m²

Low2.20 km



86179 Augsburg, Haunstetter Str. 239-241Rewe


20,929

140,347

Marktkauf

Real

Rewe

334,866

2,200 m²2,000 m²

Inhabitants per hypermarket in tertiary catchment area

3.70 kmHypermarketHypermarket

3.80 km3.90 km

86153 Augsburg, Böheimstr. 6A86161 Augsburg, Wilhelm-Hauff-Str. 34 Hypermarket

86150 Augsburg, Viktoriastr. 2

86391 Stadtbergen, Hagenmähderstr. 47

E-centerRewe Gesell

86153 Augsburg, Willy-Brandt-Platz 1

Marktkauf

Rewe

86153 Augsburg, Jakoberwallstr. 9

Hypermarket 2,807 m²3,498 m² 2.90 km Low

3.40 kmHypermarket 2,300 m²

E-center

Rewe Seidler

51,903

Hüdaverdi Süpermarket

99.80

86167 Augsburg, Neuburger Str. 174-184

86161 Augsburg, Reichenberger Str. 59

176,688

Hypermarket4.00 kmHypermarket86391 Stadtbergen, Benzstr. 7

E-centerRewe

86156 Augsburg, Kriegshaberstr. 4 4.00 km

4.70 km

Hypermarket 3,475 m²

5.40 km10,000 m²

Self-service dep. store 4.30 km

3.60 km

1,650 m²3,200 m²

86154 Augsburg, Donauwörther Str. 11086169 Augsburg, Schillstr. 111

1,600 m²6,900 m²

Edeka HypermarketLow1,600 m²

Self-service dep. store Medium

Low

Inhabitants in primary catchment area

5.10 km

1,800 m²

Hypermarket

17,301

Low


Kaufland 86165 Augsburg, Meraner Str. 65.50 km


31.01.2011


31.03.2013

LowLow

Low

Low

Low

Low

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


31.01.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a Marktkauf (self-service department store), located less than 1km from the subject property. It is similar in size and condition and offers a similar product assortment. It is laid out in a retail park with a shared open parking lot. There is also a petrol station on the site. This is a direct competitor.

Main competitors

86199 Augsburg


Another Kaufland can be found north-east of the city centre in the district of Lechhausen. It is somewhat larger with retail spread out over two floors (ground floor and 1st floor).This Kaufland offers a similar shopping experience to the consumer, yet based on the distance from the subject property, we consider it to pose only a medium-level of competition, as it mostly draws customers living north-east of the city centre. There are a substantial number of competitors within the primary and secondary catchment areas; however, when considering the number of potential consumers, the market cannot be described as oversaturated. Furthermore, the population growth for the county (“Landkreis”) is forecasted to grow by 4.4% between years 2007 and 2025; and according to the “Wirtschaftsförderung” of Augsburg, there are currently no self-service department stores in planning. Accordingly, the overall competitive environment can be described as medium to high.

For the purpose of this valuation, we have used the average turnover rents for the years 2008 and 2009 until the end of the respective lease agreement. The rents in functional retail agglomerations are linked to turnover. The percentage that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective branch. Kaufland is a strong anchor, we believe that there will continue to be demand for such ancillary tenants. For Kaufland, we have also been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Hence, we believe that a higher market rent is achievable after the end of the lease contract. Please also refer to the rent/turnover analysis on page 8.

abc

Competition Comment

Catchment area is divided into 3 categories: primary (0-5 min drive time); secondary (5-10 min) and tertiary (10-15 min). Approximately 52,000 inhabitants live in the primary catchment area and three self-service department stores are present. This correlates to approx. 17,000 inhabitants, i.e. potential customers, per store. Within the broader secondary catchment area there are 175,000 inhabitants and a total of thirteen self-service department stores, equalling about 13,500 potential customers per store. We consider there to be 3 main competitors for the subject property: a Marktkauf, a real,- and another Kaufland.

The most direct competitor is a Marktkauf, located less than 1km away. Situated directly off the main arterial roads B17 and B300, it has very good accessibility and visibility. It is laid out in a retail park with a shared open parking lot, different to that of Kaufland. The neighbouring stores, as well as a petrol station and car wash, offer a wide variety of options to the consumer and are mostly well-known retailers. This is a strong competitor due to its close proximity and the similar tenant mix. A real,- is located about 4km from the subject off of the federal road B2 in a commercial area east of the city centre. There is an OBI (DIY store) and a Norma (discount supermarket) nearby. It is laid out over only floor, which is preferable, and the building itself is newer, but since it will draw mainly residents from the eastern part of Augsburg, we believe it poses only a medium-level of competition.

0

Kaufland splits its retail area between the ground floor and the basement, which is less preferable to a one-floor building, making it difficult to let if Kaufland were to leave. It would be difficult to envision another use; the best use would remain to be a self-service department store. Therefore, if Kaufland were to leave, a major competitor, such as real,- Marktkauf or Edeka would be a likely replacement. The fitness centre on the 2nd floor may be difficult to re-let in the future if McFit were to leave. Foreseeable future use of the upper floors could be a furniture store or electronics store. It is highly probable that the fitness centre will continue to let the space on the 2nd floor, due to the good micro-location close to a large residential area. Kaufland’s lease does not expire until 2022 and it has options to extend until 2037. On the basis of our projection of likely productivity per m² and turnover, we have calculated the market rent at € 7.60 /m²/month. The tenant currently pays a contractual rent of € 5.50/m²/month. Hence, we expect Kaufland to stay until 2037 (based on its below-market rental level), as long as it continues to generate adequate turnover.

The property is currently used as a self-service department store (Kaufland), making up 67% of lettable area, a fitness centre (McFit) also takes up close to 20% of the total lettable area, and the rest is divided between smaller retailers with the indoor mall area. A car park offers plentiful parking, and a petrol station and car wash are also located on the property. The micro-location is good for it is easily accessible by car and public transport. Despite a high level of competition, the property should compete strongly due its good location and the synergies effects created through other large retailers (Media Markt and Hagebau) in the immediate area. The catchment area should suffice, despite the significant number of competitors. Furthermore, the population growth for the district (“Landkreis”) is forecasted to grow by 4.4% between years 2007 and 2025 and there is no evidence of self-service department stores in planning according to the “Wirtschaftsförderung” of the city of Augsburg.


This competitor is a real,- (self-service department store). It is located approx. 4km from the subject off of the main road B2 in a commercial area east of the city centre. It is somewhat larger in size and comprised of only one floor with high ceilings. A bakery, flower shop, delicatessen and beverage store are on the site, as well as an open parking lot and a parking garage. This competitor poses a medium level of competition.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Bucan

23.43

€ 42,763

Retail10 Landbäckerei Ihle GmbH

11 Neckermann Urlaubswelten GmbH & Co. KG

Let

Page 6 of 12

GT I PM

31.05.2015

55

Retail

5 Friedberger Landbrot Brez´n Baur GmbH

3 Solak

461

78.56

5.50

Retail 8.84

38.15

2 Frisör Thonet GmbH Retail

pays VAT

31.03.2016

24.10.2020

75%

75%

Start

75%

31.03.2013Gögginger Straße 119

Tenant

Matrix Portfolio

31.01.2011


TenantLeaseArea

Let

Let

30.09.2022Yes

25.10.2005

Yes


1 Kaufland Vertrieb GAMMA GmbH & Co. KG Retail 7,775

/ month Probability

107

9 McFit GmbH Retail

Let

Retail

8 Vincent Murr Vertriebs GmbH

14 Askarzada

6 BRL Center GmbH

01.10.2007

01.04.2011

Yes

GT I PM

75%

Retail

Yes

€ 707

GT I PM

4 KiK Textilien und Non-Food GmbH

Retail 18

72

Let

Retail

9

01.08.2008

5.00

€ 1,677

€ 702

Let

Let Yes

86199 Augsburg

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 110,418

144

Let

Let

2,220Let

€ 4,850 30.04.2016

€ 4,057

30.06.2015

01.06.2010

12.05.2016

01.04.2003 31.03.2023

€ 1,327 01.10.2010

15.05.2016

31.12.2015

75%

01.08.2010

75%

75%

30.03.2016

75%

31.03.2006

GT I PM

75%

75%

75%

GT I PM

Yes

Yes

GT I PM

GT I PM

abc

GT I PM

75%

75%

100%

75%

75%

14,240 m²

75%

75%

75%

0%

75%

75%

31.12.2015

75%

30.09.2013

GT I PM31.07.2016

GT I PM

30.11.2013

02.08.2014

17.10.2002

07.10.2010

01.11.2006

02.01.2004

75%

16.10.2014

75%

75%Yes

45.33

28.27

33.99

Yes

Yes

27.43

24.13

Yes

Yes

GT I PM

80 € 3,372

€ 1,39441

42.15

31.07.2028

€ 4,075

GT I PM75%

Total

26Let

Let

€ 11,105

LetRetail

13 Glanzer Retail

15 Thi Dung

GT I PM12 Altin Retail 34 € 927 Yes

GT I PM36.33 24.10.2015

GT I PM127 € 905 Yes 01.12.20107.15 30.11.2013

€ 948

Retail 39 € 1,058 Yes 17.05.2006Let 26.86

16 Thi Dung Storage 28 € 108 Yes 01.10.2006Let 3.85

17 FOTOFIX Schnellphotoautomaten GmbH Other Units 1 € 44 Yes 01.06.2007Let 43.90

18 Deutsche Plakat-Werbung GmbH & Co. KG Other Units 11 € 486 Yes 03.08.2009Let 44.17

19 ConocoPhillips Germany GmbH Petrol Station 200 € 3,593 Yes 01.03.1978Let 17.96

20 ConocoPhillips Germany GmbH Petrol Station 200 € 6,739 Yes 01.03.1978Let 33.70

21 Kurzzeitmieter Other Units 1 € 5 Yes 16.01.2012Let 5.25 30.09.2022


M GT I PM23 AB Möbel und Immobilien GmbH Retail 2,604 € 9,270 n.a. 01.01.2012Let 3.56 31.12.2021

24 ConocoPhillips Germany GmbH Other Units 1 € 88 YesLet 88.00 31.03.2014

M GT I PM25 Hosokawa Alpnie Aktiengesellschaft Other Units 1 € 1,750 n.a. 16.01.2012Let 1750.00 30.06.2013

M GT I PM26 transact Elektronische Zahlungssysteme GmbH Other Units 1 € 51 n.a. 01.01.2007Let 51.13 31.12.2013

0%27 Internal Parking Internal parking 549 € 8,333 No 01.10.2007Let 15.18 30.09.2022

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

31.01.2011



Tis0



€ 540

abc

0 0 0 100%0 0 27 Internal Parking Internal parking 549 € 15.18 € 8,333 € 0

0 3 5 75%0 6 26 transact Elektronische Zahlungssysteme GmbH Other Units 1 € 51.13 € 51 € 100

0 3 5 75%0 6 25 Hosokawa Alpnie Aktiengesellschaft Other Units 1 € 1750.00 € 1,750 € 100

0 3 5 75%0 6 24 ConocoPhillips Germany GmbH Other Units 1 € 88.00 € 88 € 100

€ 100 0 3 5 75%12 12

0 0 0%0 0

23 AB Möbel und Immobilien GmbH Retail 2,604 € 4.75 € 12,370

Other Units 1 € 0.00 € 0 € 0 0

0 3 5 75%0 6

3 5 75%0 12

21 Kurzzeitmieter Other Units 1 € 0.00 € 0

75%0 12

20 ConocoPhillips Germany GmbH Petrol Station 200 € 33.70 € 6,739 € 100 0

5

19 ConocoPhillips Germany GmbH Petrol Station 200 € 17.96 € 3,593 0 3 5

€ 485.83 75%

0 3 5 75%0

0 3 0 6

€ 43.90 € 44 € 100

0 12

€ 100

6

75%

0 12 0 3 5 75%

0 3 5

75%

0 3 5 75%

0 3 5

0 12

0 3 512

50

75%

€ 100

75%

75%

5 75%0

0

12

0 12

€ 100

75%

3

0

5

3

5

0

0 0

12

75%

0

12 5

3 12

3

3

75%

0

3

5

75%

75%

3

0

75%

5

75%

3 10

5

75%

3

0€ 100 12

12 53

0 5

€ 100

€ 100

Total

22 Mall Income

13 Glanzer

€ 100

€ 100

€ 100

€ 100

26

€ 100

€ 100

12 14 Askarzada Retail

16 Thi Dung

Retail15 Thi Dung

Other Units

Page 7 of 12

€ 129,82314,240 sqm

Term**

Matrix Portfolio

Re-letting

€ 1,025

€ 3,588

€ 22.00

€ 5,34411

107

127

39

€ 100

1

Retail

€ 22.00

€ 653

6 BRL Center GmbH

€ 25.00

18 Deutsche Plakat-Werbung GmbH & Co. KG

7 Bucan

Retail

Retail

Retail

Retail

8 Vincent Murr Vertriebs GmbH Retail

7,775

3 Solak Retail

Retail

2 Frisör Thonet GmbH

1 Kaufland Vertrieb GAMMA GmbH & Co. KG

41

9 McFit GmbH

12 Altin

Other Units

17 FOTOFIX Schnellphotoautomaten GmbH

10 Landbäckerei Ihle GmbH

11 Neckermann Urlaubswelten GmbH & Co. KG

Retail

Storage

72 € 15.00

Market

12

12 0

0

3

12 0


€ 7.00

€ 460

€ 3,227

80

€ 7.60

18

Rent

€ 60.00

€ 100

€ 985

0

€ 100

€ 845

€ 0

€ 1,760

€ 9,990

€ 0.00

€ 25.00

€ 1,210

€ 40.00

€ 25.00

€ 4.50

34

28

4 KiK Textilien und Non-Food GmbH Retail 461

5 Friedberger Landbrot Brez´n Baur GmbH 9 Retail

144

55

€ 1,074

0

€ 100

€ 22.00

€ 25.00

€ 4,280

0

0

€ 25.00

€ 25.00

0

Market

€ 100

86199 Augsburg

Retail

sqm/unitTenant Name

Retail € 100

€ 50


Area Category

2,220

€ 2,783


0

0

12

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

O3332


15.18

25.83

8.43

0.000.000.00

1,225,019

0.00

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year0

0.00

13,840

123,9831,294

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

13,812

86199 Augsburg

00

m²Use Category

Rent RentMarketRent


-14.2%1,246,5640.00

0

013,812

Market

01,069,640

€/month

DIY

Office

0

0

0

0103,880

0.00%

7.52

0

0€/m²/month

966External parking

Rent

0

ContractualRent

€/year

0.00%17

0.00%

0.00%00

28

0.00%

Matrix Portfolio

Gögginger Straße 119 31.03.2013

400

00Commercial

0

Contractual

0

0549

Potential

Area Vacant

549

€/m²/monthRent

0.00%0

Rent

00.00%


Use Category

Germany

31.01.2011

Capital indicator

€ 12,500 (single) € 84,000 (total)


Comment

WALTPayment Index n.a.

21,884,417 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland. The risk ofinsolvency (D&B Score) is high, i.e. 32% of businesses on the German database have the same orhigher risk. According to section 19 of the main lease agreement entered into by the landlord andKaufland Dienstleistung GmbH & Co. KG (Rating = 2AA 1), an assignment of the main lease agreementby the tenant to another entity of the Kaufland group requires that the landlord's credit risk rating maynot deteriorate due to such assignment of the lease.

Rent p.a.

7,775 m²


2.3%

3.2%

5.50

7.60

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

3.7%-12.5%

29,0262,419116,631

142.291,399,573

0.0%0.0%100,000

0.0%

0

10,332

8,333

0.0%00.0%

0

9.38

7.04

0

39%

0

Kaufland Vertrieb GAMMA GmbH & Co. KG

9.5 years

~ 4,980 m²

8,333 100,0000


Main tenant

€ 513,155


Tenant name

4.69

Storage10,332



7.38147.56


00

123,983 123,9830

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

89,13700.00

6.45

Warehouse

Warehouse

Area Let

13,840

Other Units

00

Residential280

0

100,000

0.00%

Contractual


400

1,069,640

Retail

0.00


54917

Income Analysis

Internal parking

Office

DIYRetail

Storage

102,08530,103

1,225,019

0 0

30,103

1,294

2,509

3.85

0.000.00


External parking

Total parking

€ / m²

5.50

4.69

7.60

7.04

9.38

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

4,394

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is let to fifteen retail tenants, a fitness studio, a petrol station and car wash. There is no vacancy at the moment. The WALT amounts to 7.0 years. The main tenant is Kaufland with a share of approx.39% of the rental income. The property is currently strongly under-rented mainly due to the low rental level of Kaufland. The lease is valid until 2022 with options until 2037; therefore, we do not believe that therental level will be adjusted before 2037. Kaufland’s rent is indexed and is adapted by 50% of the CPI change, when the change exceeds 10% in relation to the CPI basis. Indexation started on 01.04.2009. Groundtax, maintenance costs for structural repairs, management and insurance costs are not borne by Kaufland. The rest can be apportioned to the tenant in accordance with the German Regulation on Operating Costs.The following tenants have extended their lease contracts: FOTOFIX until 11/2013, Kik until 03/2023 and Altin until 09/2013.

0 €

0 €

€ 4,737€ 67,096

€ 4,813


€ 0

12.9%

5.74%

% of Gross

€ 10.00 /m²/p.a.

€ 20912.8%

0 €

€ 4,589 0 €0 €€ 4,517

0 €€ 4,440

12.2%€ 404

€ 62,781 12.3%12.8%€ 5,654

€ 60,919

€ 196

0 €

€ 0.00 /m²

Management costs


€ 11.63 /m²

€ 19,885€ 4,362

€ 61,773

5.08%



€ 168,857€ 166,350€ 169,047

€ 786

€ 1.44 /m²

% of Gross

0.00%

€ 19,875

€ 22,494


per year


€ 5.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 6.90%

6.75%



Assumptions

Repair work on the parking garage has been finalized. This results in an increase of parking fees from €85,000 to €100,000 p.a.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the remaining lease term with the well-known anchor tenant, the tenant mix thevacancy rate as well as the location within the federal state Bavaria.

31.01.201186199 Augsburg

Germany

31.03.2013

€ 0.30 /m²€ 0

0.32%€ 60,716€ 4.39 /m²

€ 0.00 /m²€ 4,219

per year

Year 8

€ 63,900€ 20,304

€ 85,466€ 84,116

€ 20,028

€ 78,707Year 3

€ 20,074

% of Total

Year 7

€ 4,233€ 19,978

€ 171,039

€ 161,907

€ 0

Total

€ 82,804 € 19,965



Other Non-

€ 010.91%

€ 0.30 /m² € 4,219

Insurance


4.05%

Market Rent

0.00%12.15%

1.50%€ 1.63 /m²€ 4.39 /m² € 60,716

€ 160,928

per year

€ 11.82 /m²


€ 163,546

€ 4,292


Gross Revenue

€ 21,235 € 70,342 0 €€ 21,820€ 89,493 € 71,385

Year 10€ 1,351

4.58%1.50%

Market Value

€ 86,840

Year 4

Year 6

€ 4,960

€ 19,760

Year 11€ 88,186

€ 69,269Year 9

GroundManagementTax

Maintanance

€ 19,621

CostsCosts

€ 80,110

Year 1Year 2

€ 76,373€ 77,443

€ 68,173

€ 81,492 € 65,002€ 66,049

Year 5

€ 19,940

13.0%

0 €€ 4,662

€ 189,00913.6%14.2%

0.28%

0 €

€ 7,479€ 4,888

€ 4,369

€ 8,392€ 192,130

€ 180,00313.5%

0 €

13.0%

€ 189,254

Year after 2021

€ 173,616

abc

€ 2,459 € 180,90913.7%

Page 9 of 12

Inflation

after 2021



Market

12.2%12.8%

12.3%12.9% 12.8% 13.0%

13.7% 13.5%14.2%

13.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







5.00%


€ 892,444-€ 6,905

-€ 57,132

-€ 7,854

-€ 192,130


€ 18,000,000€ 1,325,019

€ 1,236

Page 10 of 12

7.75%

€ 1,164,143

€ 7.98 Total

Total € 17,100,000

6.47%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 01.01.2011, the main tenant Kaufland Vertrieb GAMMA GmbH & Co. KG has below averagecovenant strength and a high credit risk. According to section 19 of the main lease agreement entered into by the landlord and Kaufland Dienstleistung GmbH & Co. KG (D&B Rating = 2AA 1), an assignment of themain lease agreement by the tenant to another entity of the Kaufland group requires that the landlord's credit risk rating may not deteriorate due to such assignment of the lease. Section 1 of the first amendment tothe main lease agreement provides for the assignment of the main lease agreement to Kaufland Vertrieb GAMMA GmbH & Co. KG, which has a worse D&B Rating (O3). Accordingly, pursuant to section 2 of thefirst amendment to the main lease agreement, the former tenant remains jointly and severally liable for the landlord's payment claims. Hence, the former tenant is a guarantor for the lease payments of the currenttenant. Upon resale we took into account visibility, demographic factors, appearance, condition and building age, third party usability, competition and location.

-€ 11,396

abc

Valuation Comment

€ 1,499,573 per m²

-11.64%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. Regarding comparable rents, we haveevidence of similar areas situated in comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to the section "Investment Comparables". We have been providedwith updated information regarding necessary capital expenditures. As the repair work on the parking garage has been finalized, the relevantCapital expenditures are no longer taken into account. For the period until year 10 further costs have been included in the technical due diligence; however, these are covered by the sinking fund budget of €5.50/m² p.a. for on-going maintenance measures.For some tenants, we have been provided with the turnover figures and have applied there figures in our valuation. Based on provided information from Brack Capital, we have additionally considered parkingincome of approx. € 100,000 p.a.

7.42%

Year 10 € 1,415,694€ 1,329,355

€ 0

€ 1,402,948Year 9

-€ 173,616

TIs and

-€ 169,047


€ 1,353,633 -€ 1,971

-€ 65,516-€ 4,411

€ 1,157,384

€ 1,157,399 € 0 € 1,157,399

Income

€ 0

-€ 7,724-€ 1,738 € 1,183,574

€ 1,124,450

Net

31.03.2013


€ 1,163,158€ 992,814

€ 1,128,458

Year 6Year 7

-€ 21,679

€ 1,164,143

-€ 161,907Vacancy

Year 5

€ 1,359,972 € 1,338,293Year 8

Year 4

Year 2-€ 6,929

Gross

€ 1,335,182

Market Value



€ 1,140,101

€ 1,129,909

8.77%per m²

€ 1,317,336

-€ 189,254-€ 180,909€ 0 -€ 10,675


€ 18,891,447

€ 1,301

€ 17,983,801-€ 189,009 -€ 13,501€ 1,454,658

Rent Overview



€ 17,983,801


per m²/month

€ 1,265,649

€ 804,350

-€ 2,763

-€ 5,865 € 0

Expenditures-€ 4,061

-€ 166,350 € 1,187,283

Costs

€ 1,004,736

€ 1,223,564

Abatements

€ 1,091,779

-€ 25,553

-€ 180,003€ 1,081,193

-€ 3,013€ 0 € 1,137,333

€ 1,122,753

Year 3 € 1,360,562

€ 1,077,992€ 639,145-€ 9,278

-€ 171,039

€ 734,700

€ 1,325,682

Revenue€ 1,331,889

Turnover

Germany

€ 1,156,635

Revenue

€ 1,356,493 € 0

€ 0 € 1,335,182

Rent

€ 0

€ 1,342,913-€ 30,811-€ 11,024 € 0Year 1

€ 1,335,607

€ 1,345,879

Year 11 € 1,466,054

€ 1,331,015

€ 9.03

€ 0-€ 27,541

€ 1,484,660 -€ 68,966 € 0

€ 1,308,066€ 0

-€ 28,543

€ 572,450

Yield Overview

€ 1,169,982

€ 1,139,209-€ 168,857

€ 1,336,880

86199 Augsburg

Cash Flow

Non-Total

€ 0€ 0

€ 0

€ 9,693,669

-€ 73,593 € 0-€ 120,019

Present

€ 656,267

€ 864,768

-€ 8,070

Leasing

31.01.2011

Matrix Portfolio

Value @

6.5%

6.4%6.6%

6.3%6.5% 6.4% 6.3% 6.4% 6.3%

6.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0

€ 1600000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



31.01.2011

abcPage 11 of 12

View of the car park and petrol station

Main entrance to Kaufland

Matrix Portfolio

View of the mall

86199 Augsburg

Photos

Internal view of McFit fitness studio (2nd floor)

View of retail area


31.03.2013

Internal view of sales area of Kaufland

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Fitness Studio 1,600 m²Discount FashionDiscount Fashion

657 m²

140 m²Pharmacy500 m²

0 m²467 m²Shoe store

KiK StraubingHeilsbronn

Karlstadt0

Pharmacy

0Deichmann

KiK

0

Nürnberg

0

Similar purchasing power

€ 0

€ 8.18 /m²€ 3,885

€ 0.00 /m²

Total Rent p.m.

€ 4,553 € 9.75 /m² Similar purchasing power€ 27.75 /m²

Similar purchasing powerSimilar purchasing power

€ 4,090


Area

Other federal state; slightly lower purchasing power€ 7.46 /m²

€ 7,840 € 4.90 /m²€ 4,901

€ 7.75 /m²€ 65,705

CommentOther federal state

Rent p. sqm€ 42,353 € 7.73 /m²

Other federal state; similar purchasing power

86199 Augsburg

City


Leasing Comparables

5,479 m²

Leasing Market

Kaufland

Tenant Property TypeSelf-Service Department StoreMarktkaufSelf-Service Department Store

31.03.2013Gögginger Straße 119

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

BochumMcFit


8,478 m²


GeldernLübbenau



Investment Market




Date of Transaction



31.01.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 3 11 to 15 years Macrolocation 3 Average location and catchment areaLettable Area 1 Smaller than 7,500 m² Microlocation 3 Average micro locationProperty condition 3 Average building condition Commercial activity 3 Limited commercial activity nearbyGeneral impression 3 Average general impression Competition 3 Average competition level

Investment Quality

WALT 3 WALT three to seven years Investment market 3 Average property marketOver- / underrent 4 Slightly underrented (-5% to -15%) Investment volume 3 Reasonable lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

Low visibility from the main road

31.03.2013


Key Figures

Grassingerstraße 16

n.a.


Building

Liquidity

Valuation Results

Location


6.99%

Discount Rate

6.99%

excluding capital

expenditures6.75%



6.5 years

0

Long remaining lease term of the anchor tenant

Sufficient parking

0

Market rental value € 696,866

€ 6.75

2000


83043 Bad Aibling

Property Summary

Retail Park

Germany

31.01.2011

Property type


Handelshof SB Warenhaus GmbH & Co. KG


0.0%

Main tenant


-7.5%

€ 644,624

€ 570,848



Strengths

Good building condition

0

Re-letting or negotiations concerning the prolongation of existing contracts may result in worse Positive population growth forecast for the district (Rosenheim) Termination of short term lease contracts with subsequent void periods

0

0

€ 8.23 / m² / p.m.€ 8,500,000

6.90%

The site comprises a single storey U-shaped retail park, separated into 3 wings which are called the west, east and north wing. The north wing is a 2-storey building (main building) with no basement. An openparking lot with approx. 300 parking spaces is provided to the front of the main building and on the left- and right-hand side of the U-shaped building. Construction of the property began in 1999 and was completedin 2000. The buildings are rectangular in shape and constructed with concrete columns, pre-cast concrete beams and concrete slab ceilings. The building has a flat roof covered by folio.

0

6.41%

Market Rental Value

13.19

€ 696,866 p.a.

The retail unit let to Kaufland is strongly underrentedWeaknesses

Matrix Portfolio

0

€ 1,205 per m²


Low unemployment rate

Kaufland is the anchor tenant occupying retail space on the ground floor of the main building. Office space and some storage and personnel rooms are located on the 1st floor. The entrance to the north wing is inthe front of the building facing the parking lot. The other retail units, which include a drugstore, textile stores, shoe store, etc., have separate entries from the parking lot. The property includes space to the backsideof the northern building for delivery and removal.

equals toequals to

Market Value






0

€ 0.87

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






97.57

The economic focus of Bad Aibling is on the health care and wellness sector. There are several curehospitals and rehabilitation centres. Companies in the pharmaceutical sector, textiles, electronicindustry, and milk processing industry can be found in the city. The unemployment rate for the districtlies at 3.8%, well below the national average (7.9%).

Micro Location

Bad Aibling is a spa town in the south of the federal state Bavaria with approx. 18,000 inhabitants. It lieson the river Mangfall, in the administrative district of Rosenheim, approx. 50 km southeast of Munich. Ithas become a sought-after residence for commuters working in Munich.

Bad Aibling has good accessibility through federal motorways and major roads. It is located near themotorway A8 (Munich-Salzburg). The major road which runs through the city is the state road St 2078(Munich-Rosenheim). The city is considering building another bypass (bypass road north), to lead thetraffic flowing north, towards Großkarolinenfeld and Tuntenhausen around the city. The train stationoffers regional connections.

0

Location


31.03.2013

83043 Bad Aibling 31.01.2011

Rosenheim (Rural District)

Germany

Bavaria



3.9%

5,545

Bad Aibling Macro Location

3.5

Micro Location

330

The property is located in a small commercial area at the city’s western periphery, on Grassingerstraße.Accessibility is good as Grassingerstraße is just off the main arterial road Münchenerstraße. However,the property cannot be seen from the main road and therefore has poor visibility. A bus stop is located at about 2 minutes walking distance. The property is approx. 5 minutes by car and 10 minutes walkingdistance from the city centre. The surrounding area is mostly residential and undeveloped land. A policestation, car dealership, a sporting goods store, as well as an Aldi (discount supermarket) can be found inclose vicinity.


2.2%

108.34103.28

9.6%

398

3.0%

Structual Data

abc


18,405

83043

444174

12,510,331251,105

Bad Aibling

1.1%

8,536

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Grassingerstraße 16 31.03.2013

31.01.2011

Germany

No Suspicion

According to the local planning authority, a legally binding development plan exists, entitled"Bebauungsplan 51 Nördlich der Grassingerstraße", dated 3 August 1992, date of last amendment 23May 2003, with the following regulations: subject site is located in a special zone retail (SO). The plotratio (GFZ) is 0.6 and the site coverage ratio (GRZ) is not specified.



Land Register

7174 7630

1131 1072

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan


Source: Cadastral plan on a 1 to 1000 scale, dated 27.12.2010

Matrix Portfolio

83043 Bad Aibling

SO (special zone)

n.a.

0

Sheet Plot Parcel

n.a.

Tenure

Site servicing


0 m²

0.6

Town Planning

Fully serviced


Irregular

The site consists of plots 1131 and 1072. It has an even topography and an irregular shape. It issurrounded by a road to the east and a small paved delivery access road around the site to the south,west and north. According to the environmental due diligence dated July 2007, plots 1072 and 1131 arenot registered in the “Altlastenkataster” (contaminated land cadastre). For the purposes of this valuation,we have assumed that the subject property is free of any soil or building contamination.

Limited personal easement (right to operate a self-service department store) in favour of Kaufland Dienstleistung GmbH & Co. KG, Neckarsulm.


Land charges in the total amount of € 9,590,419 in favour of Bank of Scotland (Frankfurt branch), Frankfurt am Main; folio 7630 & 7174; entered on 08.10.2007.

Local Court of Rosenheim, land register of Bad Aibling

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



97.57

9.6%

abc


83043 Bad Aibling

Name83043 Bad Aibling, Ebersberger Str. 1

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress



Page 4 of 12



13,162

High

00

m²

Medium5.10 km



0


10,612

8,536

Prechtl Frischecenter

84,900

1,500 m²6,500 m²


9.20 kmSelf-service dep. store 9.90 km83026 Rosenheim, Kufsteiner Str. 124

83024 Rosenheim, Hofmillerstr. 1 Hypermarket

83059 Kolbermoor, An der Alten Spinnerei 4

83026 Rosenheim, Grubholzer Str. 2a

E-centerKaufland

83059 Kolbermoor, Carl-Jordan-Str. 18

E-center

Rewe

83026 Rosenheim, Äußere Münchener Str. 100

Hypermarket 2,000 m²2,750 m² 5.80 km Medium

7.50 kmSelf-service dep. store 5,200 m²

Rewe

15,691

Real

103.28

52,647

Hypermarket 2,800 m² 7.50 km

00

0


0



31.01.2011


31.03.2013

LowLow

Low

0

Low

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


31.01.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is an Edeka Frischemarkt. It is much smaller in size and offers a more limited product assortment than the anchor tenant of the subject property. It has, however, greater visibility as it lies on the main road and needs to be passed in order to reach the subject property, which is just around the corner. The building is newer. Furthermore, a Müller (drugstore) is located on the site. This competitor poses a medium level of competition.

Main competitors

83043 Bad Aibling


According to the local planning authority, because of a change in the traffic routes within the city centre of Bad Aibling, residents from the west have to bypass the city centre and drive through southern Bad Aibling to get to Kaufland. Accordingly, a new supermarket has been discussed. Given the relatively few competitors within the catchment area and the forecasted population growth for the county (“Landkreis”) of 9.6% between years 2007 and 2025, we rate the overall current competitive environment as medium.

For the purpose of this valuation, we have used the average turnover rents for the years 2008 and 2009 until the end of the respective lease agreement. The rents in functional retail agglomerations are linked to turnover. The percentage that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective branch. Kaufland is a very strong anchor, we believe that there will continue to be demand for ancillary tenants. For Kaufland, we have been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Hence, we believe that a higher market rent is achievable after the end of the lease contract. Please also refer to the rent/turnover analysis on page 8.”

abc

Competition Comment

Catchment area is divided into 3 categories: primary (0-5 min drive time); secondary (5-10 min) and tertiary (10-15 min). Approximately 15,700 inhabitants live in the primary catchment area. There are two self-service department stores/hypermarkets, including the subject property, present in this area, which is approx. 8,000 inhabitants per store. Within the broader secondary catchment area of approx. 53,000 inhabitants, there are 3 main competitors: an Edeka Frischemarkt, an Edeka E-Center, and a Rewe. The Edeka Frischemarkt is about 1,000 m² smaller and offers a more limited product assortment than Kaufland. It does have, however, greater visibility as it lies on the main road and needs to be passed in order to reach the subject property, just around the corner. The building is significantly newer.Furthermore, a Müller (drugstore) is located on the site, which is comparable to the dm-markt (drugstore) next to the subject property. Despite its smaller size, we consider it to be a strong competitor based on its close proximity and preferred location.A bit farther away, approx. 6 km, in the town of Kolbermoor, an Edeka E-Center and a Rewe can be found. They are surrounded by a mostly residential area and located off of the state road St 2078 between Bad Aibling and the city of Rosenheim. Both hypermarkets are set within retail parks with outdoor parking. They will mainly draw inhabitants of Kolbermoor and possibly those from the eastern part of Bad Aibling and those who commute to Rosenheim for work. Therefore, they pose a medium level of competition.

The lease of the anchor tenant (Kaufland) does not expire until 2022 and it has options to extend until 2037. On the basis of our projection of likely productivity per m² and turnovers, we have calculated the market rent at a level of € 6.50 /m²/month. The tenant currently pays a contractual rent of € 5.25 /m²/month. Therefore, we expect that Kaufland will stay until 2037 (based on its below-market rental level), as long as it continues to generate adequate turnover. Potential future uses for the property would be difficult to envision. The best use for the property is its current use as a self-service department store. The next self-service department store is located in the next town, approx. 6km away. If Kaufland were to leave, another self-service department store, such as a real,- or Marktkauf, would be likely to take its place.

The property is currently mainly used as a self-service department store (Kaufland), which makes up 52% of lettable area. AWG (discount fashion) makes up 20% of the total lettable area, a dm-markt (drugstore) makes up close to 15% and the rest is divided between smaller retailers within the retail park. An outside parking lot offers sufficient parking. The property is also easily accessible via public transport. Despite the relatively small primary catchment area, because there are few direct competitors and the population growth for the county (“Landkreis”) is forecasted to grow by 9.6% between years 2007 and 2025, we anticipate that there will be enough customers to sustain the property. At the time, there is no vacancy. Kaufland, being a consumer magnet, provides a healthy retail environment for the remaining tenants.


This competitor is an Edeka E-Center. It is similar in size and is located approx. 6km east of the subject property in the town of Kolbermoor. The E-Center has retail on the ground floor and a fitness studio on the 1st floor. It is located in a retail park surrounded by smaller retail shops, such as a shoe store, optician, jewellery shop, dry cleaner, and two discount fashion stores, among others. This competitor poses a medium level of competition.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Fressnapf Immobilien-Vermögensverwaltung GmbH

15.78

€ 10,558

Other Units10 Deutsche Plakat-Werbung GmbH & Co. KG

11 Fechtel

Let

Page 6 of 12

31.12.2014

78

5 dm-drogerie markt GmbH + Co. KG

3 Pham

224

10.85

10.57

Retail 5.10

11.43

2 Telko GmbH Retail

pays VAT

30.06.2016

30.03.2016

75%

75%

Start

75%

31.03.2013Grassingerstraße 16

Tenant

Matrix Portfolio

31.01.2011


TenantLeaseArea

Let

Let

30.06.2015Yes

15.03.2005

Yes


1 AWG Allgemeine Warenvertriebs-GmbH Retail 998

/ month Probability

6

9 Handelshof SB Warenhaus GmbH & Co. KG Retail

Let

Retail


6 Heinrich Deichmann Schuhe GmbH & Co. KG

24.02.2000

01.07.2011

Yes

GT I PM

75%

Retail

n.a.

€ 7,694

GT I PM

4 Reno Sportswear GmbH

Retail 84

77

Let

Retail

709

21.02.2000

5.25

€ 1,208

€ 955

Let

Let Yes

83043 Bad Aibling

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 53,719

498

Let

3,634Let

€ 265 02.08.2014

€ 5,158

10.02.2015

10.02.2000

30.11.2016

01.01.2012 31.12.2016

€ 575 01.12.2011

11.02.2000

75%

28.02.2015

75%

01.03.2000

0%

75%

n.a.

Yes

abc

75%

7,053 m²

0%

75%

30.09.2027

01.10.2007

00.01.1900

03.08.2009

01.10.2007

30.09.2027

75%

100%No

44.17

10.35

6.25

Yes

Yes

747.17

7.35

Yes

Yes

M GT I PM

404 € 4,168

€ 2,164346

10.30

20.02.2015

€ 1,141

75%

Total

300Let

Let

€ 19,086

LetRetail

13 External Parking External parking

0%12 Kurzzeitmieter Other Units 1 € 747

0%0.00 30.09.2022€ 0

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

31.01.2011



Tis0



€ 7,090

abc

0 0 0 100%

0 12

0 0 00

50

75%

€ 50

75%

75%

10 75%0

0

12

0 0

€ 100

0%

3

0

5

3

5

0

0 0

6

75%

0

12 5

3 12

3

0

75%

0

3

5

75%

75%

3

0

75%

5

75%

3 5

5

75%

3

0€ 100 12

12 53

0 5

Total

13 External Parking

€ 100

€ 100

€ 0

€ 0

300

€ 100

Page 7 of 12

€ 59,3977,053 sqm

Term**

Matrix Portfolio

Re-letting

€ 2,252

€ 4,981

€ 11.00

6

€ 100

Retail

€ 0

6 Heinrich Deichmann Schuhe GmbH & Co. KG

€ 0.00


Other Units

Retail

Other Units

Retail

8 KiK Textilien und Non-Food GmbH Retail

998

3 Pham Retail

Retail

2 Telko GmbH

1 AWG Allgemeine Warenvertriebs-GmbH

346

9 Handelshof SB Warenhaus GmbH & Co. KG

12 Kurzzeitmieter


11 Fechtel

External parking

77 € 11.00

Market

12

12 0

0

3

12 0


€ 11.00

€ 919

€ 2,460

404

€ 10.00

84

Rent

€ 10.00

€ 750

€ 4,045

€ 23,622

€ 861

€ 265.00

€ 750.00

€ 6.50

1

4 Reno Sportswear GmbH Retail 224

5 dm-drogerie markt GmbH + Co. KG 709 Retail

498

78

€ 842

0

€ 0

€ 10.00

€ 11.00

€ 1,590

0

0

€ 10.00

€ 6.50

12

Market

€ 100

83043 Bad Aibling

Retail

sqm/unitTenant Name

Retail € 100

€ 50


Area Category

3,634


0

0

12

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

5AA2284


0.00

0.00

8.23

0.000.000.00

644,624

0.00

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year0

0.00

7,053

00

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

7,053

83043 Bad Aibling

00

m²Use Category

Rent RentMarketRent


-7.6%684,6860.00

0

07,053

Market

0632,478

€/month

DIY

Office

0

0

0

057,057

0.00%

8.09

0

0€/m²/month

307External parking

Rent

300

ContractualRent

€/year

0.00%7

0.00%

0.00%00

0

0.00%

Matrix Portfolio

Grassingerstraße 16 31.03.2013

0

00Commercial

0

Contractual

0

00

Potential

Area Vacant

300

€/m²/monthRent

0.00%300

Rent

00.00%


Use Category

Germany

31.01.2011

Capital indicator

€ 560,000 (single) € 39,000,000 (total)


Comment


8,118,378 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland. According toDun & Bradstreet (D&B) rating as at 02.02.2011 Handelshof SB-Warenhaus GmbH & Co. KG has abelow-average credit risk. The risk of insolvency (D&B Score) within the next 12 months compared withother German companies is assessed to be low, i.e. 84% of businesses on the German database havethe same or higher risk of failure.

Rent p.a.

3,634 m²


2.8%

3.5%

5.25

6.50

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

-0.3%-7.5%

12,1801,01558,072

145.00696,866

0.0%0.0%0

0.0%

0

0

0

0.0%00.0%

0

7.45

5.58

0

36%

0


14.5 years

~ 2,500 m²

0 00


Main tenant

€ 229,028


Tenant name

3.72

Storage00

Petrol Station 0.00


7.62144.60


00

0 00

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

52,70600.00

7.47

Warehouse

Warehouse

Area Let

7,053

Other Units

00

Residential00

0

0

0.00%

Contractual


0

632,478

Retail

0.00


07

Income Analysis

Internal parking

Office

DIYRetail

Storage

53,71912,146

644,624

0 0

12,146

0

1,012

0.00

0.000.00


External parking

Total parking

€ / m²

5.25

3.72

6.50

5.58

7.45

2.00

3.00

4.00

5.00

6.00

7.00

8.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

3,247

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is let to ten retail tenants. There is no vacancy at the moment. The WALT amounts to 6.5 years. The main tenant is Kaufland with a share of approx. 36% of the rental income. The property is currentlyunder-rented mainly due to a very low rental level of the main tenant Kaufland. As the lease contract is valid until 2027 and the tenant has two five-year extention options until 2037, we do not believe that the rentallevel can be adjusted before 2037. The rent of Kaufland is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 % in relation to the CPI basis. Indexation started on 01.08.2008.Ground tax, maintenance costs for structural repairs, management and insurance costs are not borne by Kaufland. The rest can be apportioned to the tenant in accordance with the German Regulation onOperating Costs.

0 €

0 €

€ 2,257€ 25,756

€ 2,293


€ 0

12.2%

6.02%

% of Gross

€ 10.00 /m²/p.a.

€ 011.7%

0 €

€ 2,186 0 €0 €€ 2,152

0 €€ 2,115

11.5%€ 0

€ 24,100 13.3%12.5%€ 2,896

€ 23,385

€ 4,712

0 €

€ 0.00 /m²

Management costs


€ 10.46 /m²

€ 9,327€ 2,078

€ 23,713

5.57%



€ 78,304€ 80,010€ 77,446

€ 1,223

€ 1.37 /m²

% of Gross

0.00%

€ 9,669

€ 10,453


per year


€ 5.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 6.90%

6.75%



Assumptions

We are not aware of any other tenants planning to terminate their leases in the subject property, nor have we received any information regarding a prolongation of their leases.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the remaining lease term with the well-known anchor tenant, the tenant mix thevacancy rate as well as the location within the federal state Bavaria.

31.01.201183043 Bad Aibling

Germany

31.03.2013

€ 0.28 /m²€ 0

0.31%€ 23,307€ 3.30 /m²

€ 0.00 /m²€ 2,010

per year

Year 8

€ 24,529€ 9,011

€ 43,554€ 42,866

€ 10,101

€ 40,109Year 3

€ 9,187

% of Total

Year 7

€ 2,017€ 9,669

€ 78,733

€ 73,991

€ 0

Total

€ 42,197 € 10,101



Other Non-

€ 010.70%

€ 0.28 /m² € 2,010

Insurance


3.34%

Market Rent

0.00%11.44%

1.50%€ 1.48 /m²€ 3.30 /m² € 23,307

€ 73,776

per year

€ 10.57 /m²


€ 74,560

€ 2,045


Gross Revenue

€ 10,728 € 27,002 0 €€ 10,887€ 45,606 € 27,402

Year 10€ 0

3.62%1.50%

Market Value

€ 44,254

Year 4

Year 6

€ 2,363

€ 10,101

Year 11€ 44,940

€ 26,590Year 9

GroundManagementTax

Maintanance

€ 9,613

CostsCosts

€ 40,824

Year 1Year 2

€ 38,920€ 39,465

€ 26,169

€ 41,528 € 24,952€ 25,354

Year 5

€ 10,715

11.9%

0 €€ 2,221

€ 86,25812.0%11.8%

0.29%

0 €

€ 796€ 2,329

€ 0

€ 531€ 85,795

€ 80,94414.6%

0 €

11.9%

€ 84,383

Year after 2021

€ 79,838

abc

€ 8,266 € 89,43312.0%

Page 9 of 12

Inflation

after 2021



Market

11.5%

12.5%13.3%

12.2%11.7% 11.9% 12.0%

14.6%

11.8% 12.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







5.25%


€ 440,710-€ 1,393

€ 0

-€ 6,282

-€ 85,795


€ 8,900,000€ 644,624

€ 1,205

Page 10 of 12

7.58%

€ 587,405

€ 7.62 Total

Total € 8,500,000

6.41%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 02.02.2011, the main tenant Handelshof SB-Warenhaus GmbH & Co. KG has good covenantstrength, which ensures a secure cash flow for the remainder of the lease term until at least 2027. Upon resale we took into account such facts as visibility, demographic factors, appearance, condition and buildingage, third party usability, competition and location. For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in ourvaluation. Other costs have remained unchanged and have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective grossrent.

€ 0

abc

Valuation Comment

€ 696,866 per m²

-7.50%

Regarding comparable rents, we have evidence of similar areas situated in comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to the section "InvestmentComparables".We have been provided with updated information regarding necessary capital expenditures. All Capital expenditures for repairs in the first year as well as in the periods of year 2 to 5 and year 6 to 10are considered to be covered by the maintenance costs of € 5.50 /m² p.a. Upon resale we took into account such facts as visibility, demographic factors, appearance, condition and building age, third party usability,competition and location.

0

6.99%

Year 10 € 715,200€ 714,354

€ 0

€ 721,422Year 9

-€ 79,838

TIs and

-€ 77,446


€ 600,703 -€ 63,239

-€ 68,925€ 0

€ 523,016

€ 593,578 € 0 € 593,578

Income

-€ 1,316

€ 0-€ 14,716 € 442,738

€ 554,907

Net

31.03.2013


€ 570,634€ 494,725€ 553,554

Year 6Year 7

-€ 96,003

€ 594,683

-€ 73,991Vacancy

Year 5

€ 708,452 € 612,449Year 8

Year 4

Year 2-€ 54,494

Gross

€ 673,416

Market Value



€ 629,971

€ 592,472

8.20%per m²

€ 673,416

-€ 84,383-€ 89,433€ 0 -€ 16,037


€ 9,474,444

€ 1,262

€ 8,908,058-€ 86,258 € 0€ 725,783

Rent Overview



€ 8,908,058

€ 0Total Cashflow (incl. Terminal Value @ 6.75 %)

per m²/month

€ 639,525

€ 412,471

€ 0

€ 0 € 0

Expenditures€ 0

-€ 80,010 € 520,693

Costs

€ 373,857

€ 629,405

Abatements

€ 544,322

-€ 1,930

-€ 80,944€ 438,054

€ 0€ 0 € 592,472

€ 624,370

Year 3 € 655,197

€ 618,762€ 355,208-€ 4,587

-€ 78,733

€ 385,128

€ 621,768

Revenue€ 644,625

Turnover

Germany

€ 544,322

Revenue

€ 655,340 € 0

€ 0 € 673,416

Rent

€ 0

€ 644,625-€ 33,572

€ 0 € 0Year 1

€ 657,104

€ 673,416

Year 11 € 725,783

€ 673,416

€ 8.23

€ 0-€ 16,218

€ 725,758 -€ 10,558 € 0

€ 640,886€ 0

€ 0

€ 329,011

Yield Overview

€ 570,634

€ 562,582-€ 78,304

€ 673,416

83043 Bad Aibling

Cash Flow

Non-Total

€ 0-€ 5,962

€ 0

€ 4,861,572

-€ 7,068 € 0-€ 8,713

Present

€ 265,644

€ 436,178

-€ 1,014

Leasing

31.01.2011

Matrix Portfolio

Value @

6.4%

6.1%5.8%

6.3%

6.7% 6.7% 6.7%

5.9%

7.1% 7.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 100000.0

€ 200000.0

€ 300000.0

€ 400000.0

€ 500000.0

€ 600000.0

€ 700000.0

€ 800000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



31.01.2011

abcPage 11 of 12

View of parking lot and retail park

Internal view of entrance area of Kaufland

Matrix Portfolio


83043 Bad Aibling

Photos

View of vacant area

View of bakery in entrance area to Kaufland


31.03.2013


(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 8,000 m²DrugstoreDrugstore

831 m²

467 m²Shoe store531 m²

0 m²525 m²Discount Fashion

dm-drogerie markt Landsberg am LechTreuchtlingen

Bad Kissingen0

Deichmann

0KiK

Rossmann

0

Karlstadt

0


€ 0

€ 9.78 /m²€ 4,651

€ 0.00 /m²

Total Rent p.m.


Similar purchasing powerSimilar purchasing power

€ 5,193


Area


€ 62,000 € 7.75 /m²€ 6,440

€ 7.41 /m²€ 7,410

CommentSlightly lower purchasing power

Rent p. sqm€ 71,114 € 6.57 /m²

Other federal state

83043 Bad Aibling

City


Leasing Comparables

10,824 m²

Leasing Market

Real

Tenant Property TypeSelf-Service Department StoreRealSelf-Service Department Store

31.03.2013Grassingerstraße 16

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

FreitalKaufland


1,000 m²


ZschornewitzAmberg



Investment Market




Date of Transaction



31.01.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 2 16 to 25 years Macrolocation 3 Average location and catchment areaLettable Area 3 Between 10,000 and 12,500 m² Microlocation 3 Average micro locationProperty condition 3 Average building condition Commercial activity 3 Limited commercial activity nearbyGeneral impression 3 Average general impression Competition 3 Average competition level

Investment Quality

WALT 3 WALT three to seven years Investment market 3 Average property marketOver- / underrent 3 Rack rented (-5% to 5%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

Building almost 20 years old

31.03.2013


Key Figures

Obere Stegwiesen 10

n.a.


Building

Liquidity

Valuation Results

Location


6.89%

Discount Rate

7.02%

excluding capital

expenditures6.75%



6.6 years

0


Good tenant mix

Good connections to the major roads B 465 and L 267


€ 9.16

1994


88400 Biberach

Property Summary

Retail Park

Germany

28.01.2011

Property type




0.4%

Main tenant


0.2%

€ 1,265,410

€ 1,183,256



Strengths


0

Increasing maintenance required due to the building age Finding new strong and attractive tenants Drop out of tenants before expiry of the contracts

0

0

€ 9.87 / m² / p.m.€ 16,200,000

7.10%

The property is a one-storey retail building with parking facilities on the roof. The petrol station and some undeveloped areas are located on separate plots. The ground level of the retail building is occupied byseveral retail tenants.The main tenant is Handelshof. The main entrances are accessible from the parking areas and located on the south side of the building. Another entrance to the retail areas is on the roofbeside the parking facilities. Access to the parking areas on the roof is made possible via a ramp along the west facade. The property can be easily reached from Obere Stegwiesen. Structurally, the buildingconsists of a steel-beton construction. The main entrance is equipped with glazed elements and the entrance is provided by automatic sliding doors.

0

6.83%

Market Rental Value

12.57

€ 1,275,518 p.a.

Limited third party usability of the large-scale retail area without refurbishmentWeaknesses

Matrix Portfolio

0

€ 1,476 per m²

Extension of the lease contracts of the smaller tenants

Prolognation of the lease contract after expiry

equals toequals to

Market Value






0

€ 0.64

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






133.48

Biberach has a train station, which connects Biberach to the cities of Stuttgart and Munich via regionaltrains. The nearest airport offering connections to national and international destinations isFriedrichshafen, located approx. 67 km from the city centre of Biberach an der Riß. Furthermore, theStuttgart Airport is located approx. 136 km away and the Munich Airport is situated approx. 151 kmaway. Biberach an der Riß is a strong business location. The city has both known and globally-operated largecorporations, as well as many mid-size industrial and trading companies. Well-known companies inBiberach an der Riß are Liebherr, Boehringer Ingelheim, Handtmann, EnBW and KaVo. Furthermore,Biberach is also known for its university, Biberach University of Applied Sciences.

Micro Location

Biberach an der Riß is located in the south-east of the federal state Baden-Wurttemberg. The closestmajor cities are Memmingen (approx. 43 km south-east; 41,085 inhabitants) and Ulm (approx. 47 kmnorth-east; 122,000 inhabitants).The closest motorway is the A7, connecting to Flensburg (near the Danish border) in the north and toFüssen (close to the Austrian border) in the south, can be reached in a distance of approx. 33 km.Furthermore, the A8, connecting to Munich and farther on, Austria in the south-east and to Perl near theFrench border in the north-west, can be reached in a distance of approx. 47 km.

0

Location


31.03.2013

88400 Biberach 28.01.2011

Biberach (Rural District)

Germany

Baden-Wurttemberg



4.2%

4,164

Biberach Macro Location

5.0

Micro Location

300

The property is located in the north-east of the city and is less than 4 km from Biberach city centre. Theproperty itself is located on a side road near the B 465, L 251 and L 267; it is bordered by industrial andtrading companies.


1.1%

106.68109.26

2.9%

784

2.9%

Structual Data

abc


32,360

88400

448134

10,744,921189,523

Biberach

0.8%

15,040

Postcode

Page 2 of 12

Matrix Portfolio

Germany

Obere Stegwiesen 10

City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Obere Stegwiesen 10 31.03.2013

28.01.2011

Germany

No Suspicion

According to information from the local planning authority, a development plan exists, entitled "ObereStegwiese 332" and dated 11.11.1995, with the following regulations: the subject site is located inspecial zone ("Sondergebiet"). The plot ratio (Geschossflächenzahl, GFZ) is 2.4 and the site coverageratio (Grundflächenzahl, GRZ) is 0.8.



Land Register

12876 3003/2, 3002, 3002/1

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan

Surplus land value (net) € 56 /sqm


Matrix Portfolio

88400 Biberach

SO (special zone)

n.a.

SO 3849, SO 3849 (VN

2008/71), SO 3849 (VN 2008/71)

Sheet Plot Parcel

2.4

Tenure

Site servicing

Ground lease expiry€ 313,312

5,588 m²

0,8

Town Planning

Fully serviced


3003/2: trapezoidal, 3002: trinagular, 3002/1: square

The site consists of three separate pl. 3003/2, 3002 and 3002/1: all have an even topogr. It can beaccessed fr. the western side by foot or fr. the eastern side by car. According to the Environmental DueDiligence report, dated July 2007, the site is not registered in the register of contaminated sites.According to the land charges register of Biberach (page 2500 nr.1) one building encumbrance existsreg. t. limited sales areas (max. 9500m²) a. t. product ranges. Furthermore, areas for admin. a. parkingspaces must be built. For purposes of this valuation, we assume that the building encumbrances haveno effect on t. valuation. For t. purposes of this valuation, we have assumed that t. subject property isfree of any soil or building conta. For purpose of this valuation, we assumed t. land value pursuant to thecommittee of experts of Biberach.

2 easements. 1. for t. owner o. t. prop. parc. 49 Bahnhofstr. 2 a. parc. 55 Bahnhofstr. 1 with 49,50a (reg. t. rig. o. water pipe). 2. i. favr. o. t. owner o. t. parc. 775, Eisenbahn EB 1 a. parcel 2997, 2998, 2999, 3000, 3001, 3025, 3026, 3027, 3028 a. 3029 (reg. t. rig. o. wayleave). Limited personal easements. 1. (reg. o. t. clamping station, power line a. access) in favr. o. t. Energie-Versorgung Schwaben AG, 2. (reg. o. t. retain a. operate o. a hypermar.) i. favr. o. Kaufland Dienstl. GmbH Co. KG Neckarsulm. Rig. o. acquisition i. favr. o. alb-elektric OHG located i. Biberach. Restrictive covenant, 1.i. favour of t. particular owner for t. parcel 3003/2, 2. favour o. Kaufland Dienstl. GmbH Co. KG Neckarsulm (reg. t. durable omission reg. operate o. f. exa. discoun., supermar. o. eating house)


Land charges in the total amount of € 19,584,384 in favour of Bank of Scotland (branch Frankfurt)

Local Court of Biberach an der Riß, land register of Biberach an der Riß

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



133.48

2.9%

abc


88400 Biberach

Name88400 Biberach, Sandgrabenstr. 52

Competitor Overview

Competitor Map



PotentialAddress



Page 4 of 12



15,437

Medium

00

Medium1.50km




25,739

15,040

Marktkauf


88400 Biberach, Hubertus Liebrecht-Str. 44Obi DIY n.a.0

6,628

109.26

46,311

00

0


0


Obere Stegwiesen 10

28.01.2011


31.03.2013

00

0

0

0

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


28.01.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a retail park located in the north-east of Biberach. The main tenant is OBI. Other tenants for example are Lidl, a drinks cash-and-carry and Euronics. The retail park "Biber Center" is well located directly on the main road L 267. The property is a serious competitor.

Main competitors

88400 Biberach

Obere Stegwiesen 10

While the Kaufland is primarily reachable by car, the competitor can also be reached by foot from the adjacent residential area. The Marktkauf probably has similar construction date as the valued property and offers a similar assortment. The competitor does not offer as many parking facilities as the valued property. The valuation property offers a wide range of products due to the various tenants, while the competitor has just some minor tenants like a bakery and a hairdresser. Even though the properties may attract different customers and have slightly different primary catchment areas, the catchment areas strongly overlap and two hypermarket stores for a city of only 32,000 inhabitants can be problematic. Overall, it can be said that the competition level in Biberach is medium to high, especially due to the existence of a similar Marktkauf nearby.

The rents in functional retail agglomerations are linked to turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective branch. The productivity varies between approx. € 1,000/m² and up to more than € 10,000/m². Kaufland is represents a very strong anchor, we believe that there will always be demand for such ancillary tenants. We have not been provided with any turnover figures for Kaufland. For Kaufland, we have also been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Hence, we believe that a higher market rent is achievable after the end of the lease contract. Please also refer to the rent/turnover analysis on page 8.

abc

Competition Comment

The catchment area can be differentiated into primary (0 – 5 min driving distance), secondary (5 – 10 min) and tertiary (10 – 15 min) catchment areas. Approximately 6,630 inhabitants live in the primary catchment area. While the density of hypermarkets is relatively high in the primary catchment area, the competition eases in the secondary and tertiary catchment area. Even though there are several discounters and small-sized supermarkets located in Biberach, it can be said that these present only indirect competition to the property. Kaufland offers a very deep and broad product range with more than 50,000 products, while discounter and supermarkets offer a limited product range with only 7,000 to 11,000 (supermarkets) or 400-2,500 (discounters) articles. Therefore, these retailing forms address different customers or customer needs. While supermarkets and discounters cater to the daily needs of customers, Kaufland offers a larger variety of products that are bought on a non-daily basis. There are two direct competitors within 2 km.

The first competitor, a retail park called “Biber Center” is located in a distance of 1.5 km directly on the main road L 267. The location of this centre compared to our centre is better, as it is can be accessed directly from the L 267 and is therefore very visible. The Biber Center seems to be newer and has a good mix of tenants. The main tenant is an OBI market; other tenants include Lidl, a drinks cash-and-carry, Burger King and Euronics. The Biber Center has no supermarket, just a Lidl discounter, which offers another product range. In addition, the significant difference in size and product range also differentiates the properties, especially the DIY stores. The OBI market offers a wider range and is more upscale than the discount DIY at the subject property. Therefore, it can be said that the Biber Center represents only medium competition. Another direct competitor is Marktkauf, which is 1.9 km away. The Marktkauf is directly located on the main road L 267 and is very visible. However, it can not be directly accessed from the main road; instead, it is necessary to drive first through a residential area to reach the store.

0

0

The property in Biberach is located in the direct vicinity of several serious competitors. The property is currently used for retail use; regarding third-party use, retail is the best option, because of the structural conditions like the very good parking facilities, the allocation and the equipment of the areas of the value property. The strengths of the property include that is almost fully let, the well-known status of the main tenant, the length of the lease contract of the main tenant and the very good parking facilities. In contrast, some weaknesses include the limited third-party usability, the limited visibility and the secluded location as a whole. The leasing capacity is for this property medium because of the building age and the existing density of competitors.


This competitor is a medium-sized Marktkauf. The location of Marktkauf is very good. It is located between the main road, L 267, and a residential area. The Marktkauf is a serious competitor.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Cetin

10.20

€ 10,863

Other Units10 FOTOFIX Schnellphotoautomaten GmbH


Let

Page 6 of 12

M GT I PM

05.04.2015

3

Other Units

5 Yilmaz

3 Vacant

47

38.71

9.50

Retail 57.92

0.00

2 Marktkauf Autonom BM Vermietungs GmbH & Co. KG Retail

pays VAT

30.06.2019

75%

75%

Start

31.03.2013Obere Stegwiesen 10

Tenant

Matrix Portfolio

28.01.2011


TenantLeaseArea

Let

Vacant

03.11.2019Yes

01.07.1999


1 AWG Allgemeine Warenvertriebs GmbH Retail 1,144

/ month Probability

1

9 Handelshof SB Warenhaus GmbH & Co. KG Retail

Let

Other Units

8 Essanelle Hair Group AG

14 Mall Income

6 Bäckerei Mäschle OHG

03.11.1994

Yes

75%

Retail

Yes

€ 1,684

GT I

4 Walser + Schwaderer GmbH

Retail 42

4,150

Let

Retail

44

01.10.2004

5.50

€ 42,337

€ 0

Let

Let Yes

I

88400 Biberach

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 104,294

53

Let

Let

5,216Let

€ 70 30.11.2013

€ 7,117

30.06.2015

06.04.2005

02.08.2014

01.11.2004 31.10.2014

€ 133 03.08.2009

01.07.2007

75%

05.11.2016

75%

06.11.2006

M GT I PM

75%

GT I PM

Yes

Yes

M GT I PM

GT I PM

abc

100%

12,872 m²

0%

75%

31.08.2015

01.10.2007

01.09.2005

01.06.2007

01.08.2012

0%

30.09.2022

100%

0%

69.95

133.28

34.54

Yes

Yes

3.43

44.17

Yes

n.a.

GT I PM

31 € 1,914

€ 1,45142

61.42

30.09.2019

€ 2,722

GT I PM75%

Total

1Let

Let

€ 28,688

LetRetail

13 Schussenrieder Brauerei Other Units

M GT I 12 HPV Hanseatic Petrol Vertriebs GmbH Petrol Station 2,103 € 7,215 Yes

0%30.00 31.07.2017

0%1 € 71 00.01.190071.14 30.09.2022

€ 30

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

28.01.2011



Tis0



€ 1,088

abc

0%

0 0 0 0%

0 0 0

0 12

0 0 00

50

75%

€ 50

100%

100%

10 75%0

0

12

0 0

€ 0

0%

0

0

5

3

5

0

0 0

12

75%

0

15 5

3 15

3

0

75%

0

3

5

75%

75%

3

0

75%

10

75%

3 10

5

75%

3

0€ 100 15

15 53

0 5

Total

13 Schussenrieder Brauerei

€ 100

€ 100

€ 0

€ 0

1

€ 100

0 14 Mall Income Other Units

Page 7 of 12

€ 106,29312,872 sqm

Term**

Matrix Portfolio

Re-letting

€ 1,050

€ 6,942

€ 44.17

1

1

€ 100

Retail

€ 0.00

€ 30

6 Bäckerei Mäschle OHG

€ 30.00

7 Cetin

Other Units

Other Units

Petrol Station

Retail

8 Essanelle Hair Group AG Retail

1,144

3 Vacant Retail

Retail

2 Marktkauf Autonom BM Vermietungs GmbH & Co. KG

1 AWG Allgemeine Warenvertriebs GmbH

42


12 HPV Hanseatic Petrol Vertriebs GmbH

10 FOTOFIX Schnellphotoautomaten GmbH


Other Units

4,150 € 9.50

Market

12

12 0

0

3

15 0


€ 50.00

€ 1,057

€ 2,350

31

€ 9.50

42

Rent

€ 25.00

€ 0 0

€ 0

€ 1,559

€ 41,727

€ 133

€ 69.95

€ 0.00

€ 8.00

2,103

4 Walser + Schwaderer GmbH Retail 47

5 Yilmaz 44 Retail

53

3

€ 39,425

0

€ 0

€ 50.00

€ 25.00

€ 70

0

0

€ 130.00

€ 25.00

0

Market

€ 100

88400 Biberach

Retail

sqm/unitTenant Name

Retail € 50

€ 50

Obere Stegwiesen 10

Area Category

5,216

€ 0


0

0

15

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

5AA2284


0.00

0.00

9.87

0.000.000.00

1,270,407

0.00

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year0

0.00

10,727

86,5740

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

10,727

88400 Biberach

00

m²Use Category

Rent RentMarketRent


-8.4%1,272,7280.00

0

010,769

Market

01,166,308

€/month

DIY

Office

0

0

0

0106,061

0.39%

9.85

0

0€/m²/month


Rent

606

ContractualRent

€/year

0.00%7

0.00%

0.00%0

420

0.00%

Matrix Portfolio

Obere Stegwiesen 10 31.03.2013

2,103

00Commercial

0

Contractual

0

00

Potential

Area Vacant

606

€/m²/monthRent

0.00%606

Rent

00.00%


Use Category

Germany

28.01.2011

Capital indicator

€ 560,000 (single) € 39,000,000 (total)


Comment


20,089,294 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland. According toDun & Bradstreet (D&B) rating as at 02.02.2011 Handelshof SB-Warenhaus GmbH & Co. KG has abelow-average credit risk. The risk of insolvency (D&B Score) within the next 12 months compared withother German companies is assessed to be low, i.e. 84% of businesses on the German database havethe same or higher risk of failure.

Rent p.a.

4,150 m²


2.5%

2.4%

10.20

9.50

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

528.3%-0.4%

2,789232106,293

33.211,275,518

0.0%0.0%0

0.0%

0

0

0

0.0%00.0%

0

16.14

12.10

0

40%

0


6.2 years

~ 3,800 m²

0 00


Main tenant

€ 508,038


Tenant name

8.07

Storage7,215



9.83208.63


00

86,574 00

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

96,77600.00

9.02

Warehouse

Warehouse

Area Let

10,769

Other Units

042

Residential00

0

0

0.39%

Contractual


2,103

1,161,311

Retail

0.00


07

Income Analysis

Internal parking

Office

DIYRetail

Storage

105,45117,525

1,265,410

0 0

17,525

0

1,460

0.00

0.000.00


External parking

Total parking

€ / m²

10.20

8.07

9.50

12.10

16.14

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

15.00

16.00

17.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

5,287

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is let to nine retail tenants and a petrol station. At the moment one retail unit of 42 m² is vacant. The WALT of the property amounts to 6.6 years. The property is currently rack rented. This figureincludes the turnover rents of the tenants Bäckerei Mäschle, Cetin, HPV Hanseatic, Walser and Yilmaz, which we belive to be sustainable until the end of the respective lease contracts. The property is nearly let atmarket rental level. The lease contract of the main tenant expires in 2022. Kaufland’s rent is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relation to the CPIbasis. Indexation started on 01.04.2009. The majority of the tenants pay all costs (including ground tax, insurance costs and management costs) except for maintenance costs for structural repairs.

0 €

0 €

€ 4,339€ 11,989

€ 4,408


€ 0

7.0%

3.83%

% of Gross

€ 10.00 /m²/p.a.

€ 07.0%

0 €

€ 4,204 0 €0 €€ 4,137

0 €€ 4,067

6.5%€ 425

€ 11,218 6.9%6.6%€ 267

€ 10,885

€ 293

0 €

€ 0.00 /m²

Management costs


€ 7.63 /m²

€ 18,954€ 3,996

€ 11,038

3.80%



€ 84,671€ 83,992€ 83,493

€ 110

€ 1.76 /m²

% of Gross

0.00%

€ 18,981

€ 19,133


per year


€ 4.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 7.10%

6.75%


Obere Stegwiesen 10

Assumptions

The rest can be apportioned to the tenants in accordance with the German Regulation on Operating Costs. Furthermore, some rental increases due to indexations have taken place.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the short remaining lease term and the lasting condition of the subject property.

28.01.201188400 Biberach

Germany

31.03.2013

€ 0.36 /m²€ 0

0.31%€ 10,849€ 1.01 /m²

€ 0.00 /m²€ 3,864

per year

Year 8

€ 11,418€ 18,377

€ 54,411€ 53,551

€ 18,608

€ 50,108Year 3

€ 18,564

% of Total

Year 7

€ 3,877€ 18,976

€ 86,241

€ 82,785

€ 0

Total

€ 52,716 € 18,608



Other Non-

€ 06.45%

€ 0.36 /m² € 3,864

Insurance


0.85%

Market Rent

0.00%6.49%

1.50%€ 1.78 /m²€ 1.01 /m² € 10,849

€ 82,154

per year

€ 7.64 /m²


€ 82,305

€ 3,931


Gross Revenue

€ 18,531 € 12,569 0 €€ 19,200€ 56,975 € 12,755

Year 10€ 0

0.86%1.50%

Market Value

€ 55,286

Year 4

Year 6

€ 4,543

€ 15,452

Year 11€ 56,142

€ 12,377Year 9

GroundManagementTax

Maintanance

€ 18,075

CostsCosts

€ 51,001

Year 1Year 2

€ 48,622€ 49,303

€ 12,181

€ 51,881 € 11,615€ 11,802

Year 5

€ 18,871

7.3%

0 €€ 4,270

€ 93,4737.8%7.2%

0.30%

0 €

€ 5,017€ 4,477

€ 14,951

€ 0€ 96,736

€ 100,2137.2%

0 €

7.0%

€ 90,942

Year after 2021

€ 87,330

abc

€ 0 € 89,4959.7%

Page 9 of 12

Inflation

after 2021



Market

6.5% 6.6% 6.9% 7.0% 7.0% 7.0%

9.7%

7.2% 7.2%7.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







6.50%


€ 884,079€ 0

-€ 5,438

€ 0

-€ 96,736


€ 17,300,000€ 1,265,410

€ 1,476

Page 10 of 12

7.96%

€ 1,152,185

€ 9.79 Total

Total € 16,200,000

6.96%

In terms of risk, we considered the covenant strength of the tenants as well as the lease duration of the existing contracts.As at 02.02.2011 the main tenant Handelshof SB-Warenhaus GmbH & Co. KG has goodcovenant strength, which ensures a secure cash flow for the remainder of the lease term until at least 2022. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance,condition and building age, third-party usability, competition situation and location. For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. We have been provided with updatedinformation regarding necessary capital expenditures. As the repair work has been finalized, the relevant Capital expenditures are no longer taken into account.

€ 0

abc

Valuation Comment

€ 1,275,518 per m²

0.20%

The main tenant, Marktkauf Holding GmbH, has good covenant strength and is a subsidiary of Edeka Group. However, the premises are occupied by a subsidiary of REWE (B1). It could not be clearified whetherthe premises are sublet with consent of the landlord or were taken over by REWE. For the purpose of this valuation, we assumed that the lease with Marktkauf is still in place and was sublet to REWE with consentof the landlord. The restrictions of Division II, have no effect on the value of the property, except for the land value of parcel 3002/1. For this land value, we have assumed a lower value because of the restrictiveeasement. Furthermore, for the purpose of this valuation, we assumed the land value pursuant to the committee of experts in Biberach. Regarding comparable rents we have had recourse to evidence of similarareas situated in the comparable regions and locations.

Furthermore, we have analysed comparable transactions. Please refer to the section "Investment Comparables".

7.02%

Year 10 € 1,235,378€ 1,258,046

€ 0

€ 1,258,046Year 9

-€ 87,330

TIs and

-€ 83,493


€ 1,225,162 -€ 2,200

€ 0-€ 75,737

€ 1,148,087

€ 1,153,205 € 0 € 1,153,205

Income

-€ 1,251

-€ 5,059-€ 1,673 € 1,137,297

€ 1,120,361

Net

31.03.2013


€ 1,182,253€ 1,058,547€ 1,145,892

Year 6Year 7

€ 0

€ 1,154,267

-€ 82,785Vacancy

Year 5

€ 1,237,582 € 1,237,582Year 8

Year 4

Year 2-€ 8,887

Gross

€ 1,240,508

Market Value


Obere Stegwiesen 10

€ 1,167,104

€ 805,428

8.02%per m²

€ 1,030,163

-€ 90,942-€ 89,495€ 0 € 0


€ 17,578,533

€ 1,579

€ 16,979,306-€ 93,473 € 0€ 1,280,025

Rent Overview



€ 17,312,983


per m²/month

€ 1,186,552

€ 793,219

€ 0

€ 0 € 0

Expenditures€ 0

-€ 83,992 € 1,141,170

Costs

€ 961,476

€ 1,138,642

Abatements

€ 1,169,579

-€ 10,005

-€ 100,213€ 1,148,087

-€ 48,785€ 0 € 929,950

€ 1,167,104

Year 3 € 1,234,049

€ 1,098,535€ 653,461€ 0

-€ 86,241

€ 518,058

€ 1,263,569

Revenue€ 1,265,038

Turnover

Germany

€ 1,180,076

Revenue

€ 1,276,470 € 0

€ 0 € 1,240,508

Rent

€ 0

€ 1,277,843-€ 12,901-€ 12,805 € 0Year 1

€ 1,211,683

€ 1,233,692

Year 11 € 1,280,025

€ 1,240,535

€ 9.87

€ 0-€ 6,651

€ 1,284,079 -€ 48,701 € 0

€ 1,205,032€ 0

-€ 203,529

€ 574,464

Yield Overview

€ 1,182,253

€ 1,120,361-€ 84,671

€ 1,240,535

88400 Biberach

Cash Flow

Non-Total

€ 0-€ 831

€ 333,677

€ 8,852,948

€ 0 € 0-€ 30,102

Present

€ 688,426

€ 848,736

€ 0

Leasing

28.01.2011

Matrix Portfolio

Value @

6.8%

6.8%6.6% 6.5%

6.7% 6.7%

5.4%

6.6% 6.7% 6.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:


Obere Stegwiesen 10

28.01.2011

abcPage 11 of 12

Internal view of the Kaufland

Western front view of the property

Matrix Portfolio

Access to the parking areas on the roof

88400 Biberach

Photos

Internal view of the mall

View of the DIY market


31.03.2013

View of the petrol station

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

DIY 5,278 m²Self-Service Department StoreSelf-Service Department Store

4,165 m²

4,425 m²Self-Service Department Store8,000 m²

0 m²5,850 m²Self-Service Department Store

Kaufland MoosburgFreital

Schwäbisch Hall0

Kaufland

0Kaufland

Kaufland

0

Hameln

0

Worse purchasing power

€ 0

€ 7.75 /m²€ 29,692

€ 0.00 /m²

Total Rent p.m.


Other federal state; slightly lower purchasing powerBetter purchasing power

€ 62,000


Area

Worse purchasing power€ 10.10 /m²

€ 26,284 € 4.98 /m²€ 42,067

€ 4.72 /m²€ 28,320

CommentOther federal state, slightly lower purchasing power

Rent p. sqm€ 31,023 € 5.79 /m²

Other federal state

88400 Biberach

City


Leasing Comparables

5,358 m²

Leasing Market

OBI AG

Tenant Property TypeDIYOBI AGDIY

31.03.2013Obere Stegwiesen 10

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

HillesheimPraktiker


6,000 m²


Ottendorf-OttkrillaRudolstadt



Investment Market




Date of Transaction



28.01.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 3 11 to 15 years Macrolocation 3 Average location and catchment areaLettable Area 2 Between 7,500 and 10,000 m² Microlocation 4 Good micro locationProperty condition 4 Good building condition Commercial activity 4 Average commercial activity nearbyGeneral impression 4 Good general impression Competition 4 Low competition level

Investment Quality

WALT 3 WALT three to seven years Investment market 3 Average property marketOver- / underrent 4 Slightly underrented (-5% to -15%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

0

31.03.2013


Key Figures

Heidenerstraße 32

n.a.


Building

Liquidity

Valuation Results

Location


6.97%

Discount Rate

6.97%

excluding capital

expenditures6.50%



6.8 years

Strong anchor tenant Kaufland with long term lease contract

Very good accessibility - sufficient parking spaces

City centre location

Modern retail park with good tenant mix


€ 8.75

2003


46325 Borken

Property Summary

Retail Park

Germany

28.01.2011

Property type


ALPHA Warenhandel GmbH & Co. KG


0.0%

Main tenant


-9.8%

€ 1,089,001

€ 999,625



Strengths

All retail areas on ground floor level

0

Termination of short term lease contracts with subsequent void periodsPositive future population growth prospects for Borken 0

0

0

€ 10.56 / m² / p.m.€ 15,000,000

6.90%

The property (completion date 2003) consists of a single-storey L-shaped retail building; on its ground floor, it has several retail units as well as parking areas and substructures on the roof. Main access is providedfrom the south side of the building alongside a roofed passageway in front of the building. Approximately 400 parking spaces (470 spaces acc. to the building permit) are located on the inner courtyard to the southof the building as well as on the roof. Access to the parking facilities on the roof is provided via a ramp along the west facade. The delivery zone is located at the northern side of the building complex. The mainentrance provides access to the large Kaufland unit (approx. 5,500 m²), two medium sized units (Kramer Schuhe 675m² and C&A 350 m²) and a shopping mall with small shops (between 20 - 80 m²). Threeadditional shopping units can directly be accessed from outside the building. An escalator connects the ground floor with the parking deck on the roof.

Extension of lease contracts with short remaining term

6.25%

Market Rental Value

13.77

€ 1,206,904 p.a.

No further extension possibleWeaknesses

Matrix Portfolio

0

€ 1,575 per m²

Limited number of competitors in Borken

Low unemployment rate

The structure of the building consists of concrete columns in regular grids, pre-cast concrete beams and concrete floor slab. Staircases are of pre-cast concrete elements. The flat roof is constructed as a parkingarea with prefabricated slabs on layer insulation. The facades to the east and to the south are constructed as rear ventilated facades with a facing of exposed brickwork. The upper half of the porch is equipped witha cover of industrial glass. Partitions within the administration and staff areas are from plasterboard. Corridors are equipped with PVC flooring, painted walls and grid ceilings with external lights. The standard officeshows carpet flooring, painted walls and a suspended grid ceiling with external lights. The complex has a gas-powered heating system with ventilation systems, air heaters and standard heaters.

equals toequals to

Market Value






0

€ 0.78

0Underrent of Kaufland lease, however, difficult to realise potential as extension options are in place

(Copy)


Valuation date:

Inspection date:

Prepared for:






107.65

The closest passenger airport, Düsseldorf International, can be reached in a distance of approx. 80 kmsouth or Münster-Osnabrück International in 80 km north. The economy of Borken (within the ruralregion Münsterland) is primarily characterised by small- and medium-sized companies active in varioussectors, as well as handcraft sector. Historically, the textile industry was – and still is – an importantfactor in the region. Borken also somewhat benefits from the strategic location between the Netherlands,Münster and the Ruhrgebiet. Thus, the region is also attractive for logistics companies and relatedservice providers.

Micro Location

Borken is situated in the federal state of North Rhine-Westphalia in the region of Münsterland close tothe Dutch border and has a population (city) of approx. 41,000. It is located about 30 km north of thelarge agglomeration area 'Ruhrgebiet', which has approx. 10 million inhabitants (nearby cities includeDuisburg, Oberhausen, Essen Gelsenkirchen and Dortmund). The A3 and A31 federal motorways canbe accessed within a distance of 5 - 10 km from Borken. Immediate access is possible to the B67 andB70 federal roads.

The city’s train station is linked to the regional railway network. The nearest station connected to the ICEhigh-speed train network is located in, for example, Duisburg about 40 km away.

0

Location


31.03.2013

46325 Borken 28.01.2011

Borken (Rural District)

Germany

North Rhine-Westphalia



8.4%

7,091

Borken Macro Location

5.0

Micro Location

445

The property is located on the boundary of the city centre of Borken on a highly frequented through-road, Heidener Strasse, and can directly be accessed from a traffic circle. The surrounding area ischaracterised by a mixture of retail, office, industrial and residential buildings. To the east, the buildingadjoins Heidener Strasse; to the north, an access road for fire fighting vehicles can be found; and to thewest, the complex is bordered by a public walkway open for pedestrians and bicycles.


1.5%

101.2198.49

2.7%

823

4.5%

Structual Data

abc


40,968

46325

268260

17,872,763369,107

Borken

-0.4%

17,293

Postcode

Page 2 of 12

Matrix Portfolio

Germany

Heidenerstraße 32

City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Heidenerstraße 32 31.03.2013

28.01.2011

Germany

Suspicion of contamination

According to information from the local planning authority, a legally binding development plan exists,entitled "Am Kuhn - No. BO58,2" and dated 31.05.1976, with the following regulations: the subject site isdesignated as core area - "MK - Kerngebiet". The maximum height of the buildings is limited to two fullstoreys - 60m above sea level. The permissible site coverage ratio amounts to 1.0.


TPL Borken S.a.r.l., Luxemburg

Land Register

15495 472

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan



Matrix Portfolio

46325 Borken

MK (core zone)

n.a.

007

Sheet Plot Parcel

n.a.

Tenure

Site servicing


0 m²

1.0

Town Planning

Fully serviced

Building encumbrances No

Irregular

The site has an even topography and is accessible from the east, south and west (pedestrians only).According to the Environmental DD Report from Mace GmbH, dated July 2007, the risk of subsoil /ground water contamination is considered moderate to high. Land use risk for present use of the site,however, is low, if good operation practices can be observed. Furthermore, it is stated that theenvironmental setting risk is low to moderate with regards the surroundings of the site and high withregards to the aquifer and the brook. Overall, Mace estimates the environmental risk to e moderate tohigh. No cost estimates for potential decontamination measures were provided to us. For the purposesof this valuation, we have assumed that the subject property is free of any soil or building contamination.

Several limited personal easements (regarding wayleave and pipeline easements, use of parking areas, commercial limitation) in favour of the city of Borken

Several limited personal easements (regarding pipeline easements and operation of a electrical substation) in favour of the Stadtwerke Borken/Westf. GmbH, Borken

Limited personal easement to operate a hypermarket / self-service department store on the plot, including right of use for all technical installations and pipelines in favour of Kaufland Dienstleistungs GmbH & Co. KG, Neckarsulm.


Land charge in the total amount of € 16,103,535 in favour of Bank of Scotland, branch Frankfurt/Main, Germany

Local Court of Borken, land register of Borken

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



107.65

2.7%

abc


46325 Borken

Name46325 Borken, Nordring 70-74

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress



Page 4 of 12



12,739

Medium to low

00

Medium to low1.10 km




22,856

17,293

K+K Markt


46325 Borken, Otto-Hahn-Str. 8E-center Wilger0

46325 Borken, Boumannstr. 6E-center Wilger

0

Hypermarket 2,200 m²3,000 m² 1.20 km Medium to low

0.00 km m²

26,723

98.49

38,216

00

0


0


Heidenerstraße 32

28.01.2011


31.03.2013

00

0

0

0

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


28.01.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a K+K hypermarket with a sales area of 1,990 m² and some additional small ancillary shops, e.g. Ernsting's family (textile) or Ebbing (bakery). The building is situated approximately 800 m north-west of the Kaufland asset. Although the asset is highly visible and located on the main road, Nordring, this property appeared to be less frequented during the inspection.

Main competitors

46325 Borken

Heidenerstraße 32

The main competitors for the Kaufland store in Borken are the K+K Markt as well as two E-center Wilger hypermarkets, all within the primary catchment area. However, due to the smaller size, retail concept and partly weaker micro-location, the competition potential of these markets is fairly limited. No other large scale hypermarket is situated in a 15 minute driving distance. For the other retailers in the subject retail park such as textile and shoe shops, the retail area in the city centre of Borken (only in walking distance) can be regarded as the main competitor.

The rents in functional retail agglomerations are linked to turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective industry. The productivity varies between approx. € 1,000/m² up to more than € 10,000/m². For the shoe and clothing segment, the rent amounts to approx. 6.0 to 12.0% of the respective turnover – a substantial amount. For Kaufland, we have been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Hence, we believe that a higher market rent is achievable after the end of the lease contract. Please also refer to the rent/turnover analysis on page 8.

abc

Competition Comment

The catchment area can be differentiated into primary (0 - 5min driving time); secondary (5 - 10min) and tertiary (10 - 15min) catchment areas. Approximately 26,723 inhabitants live in the primary catchment area. This results in approx. 8,900 inhabitants per large-scale hypermarket in the primary catchment area. The total catchment area (15 minute driving distance) amounts to approx. 133,500 inhabitants (i.e. 44,500 per large scale hypermarket).

Even though there are several discounters and small-scale supermarkets located nearby (4 in primary catchment area), it can be said that these represent only indirect competition for the property. Kaufland offers a very deep and broad product range with more than 50,000 products, while supermarkets and discounters generally offer a limited product range with only 7,000 to 11,000 (supermarkets) or 400-2,500 (discounters) items. Therefore, these retailing forms address different customers or customer needs. While supermarkets and discounters cater to the daily needs of customers, Kaufland offers a larger variety of products that are bought on a non-daily basis.

0

The anchor tenant, Kaufland, has a lease contract until 2022 with three options each for five years, bringing the earliest possible termination date for the landlord to 2037. On the basis of our projection of likely productivity per m² and turnovers, we have calculated the market rent at a level of € 7.75/m²/month (please refer to page 8). The tenant currently pays a contractual rent of € 5.47/m²/ month. Therefore, the retail unit is currently heavily under-rented. Due to the margins realizable and under the assumption of good turnover figures, we believe that Kaufland will remain in the property until 2037.In the unlikely case that Kaufland should vacate the premises, the property could be relet to other self-service department stores, which are currently not present in the Borken real estate market, such as real or Marktkauf. Reletting the unit as a DIY store would be difficult, because of the relatively small size of the lettable area and the parking spaces not being on ground level.

The subject property is a modern self-service department store with a small mall and some additional medium sized tenant units. As Kaufland is a strong customer magnet, we believe that it is possible to re-let the small retail units on the ground floor without longer void periods. The tenant mix shows a reasonable structure. Furthermore, the property offers sufficient parking spaces in a city centre location. The rental area of Kaufland itself can be regarded as relatively unproblematic. First of all, the location is suitable for the tenant. It can be reached by foot from the surrounding residential area as well as by car or public transport. The density of self-service department stores in the primary catchment area is low and there are no other direct competitors within 5 to 15 minutes distance. We believe that Kaufland will be able to compete with these other hypermarkets, especially because it can operate on a very low contractual rent for a long time.


This competitor is an E-center Wilger hypermarket with a sales area of 3,000 m² and some additional small ancillary shops. The building is situated approximately 1.2 km to the north-west of the Kaufland asset. Upon inspection, this property was highly frequented. The property is slightly set back from the main road Nordring and accessible via Burloer/ Boumannstrasse, but has a modern, attractive appearance.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Sparkasse Westmünsterland

5.47

€ 6,471

Retail10 Nyguen - Nail Studio

11 Adler Mode GmbH

Let

Page 6 of 12

GT I PM

30.06.2013

1,602

Retail

5 Nguyen - Asian Food

3 Kramer Schuhe GmbH & Co. KG

30

29.63

80.42

Retail 24.86

13.83

2 ALPHA Warenhandel GmbH & Co. KG Retail

pays VAT

31.12.2018

30.09.2022

75%

75%

Start

75%

31.03.2013Heidenerstraße 32

Tenant

Matrix Portfolio

28.01.2011


TenantLeaseArea

Let

Let

07.10.2013Yes

01.10.2007

Yes


1 Büsch GmbH Retail 80

/ month Probability

36

9 Almaz Mode & Mehr Retail

Let

Retail

8 Takko Holding GmbH


6 Reisecenter alltours GmbH

08.10.2003

25.09.2003

Yes

GT I PM

75%

Retail

Yes

€ 1,867

4 PM Service GmbH

Retail 676

5,495

Let

Retail

63

01.11.2004

36.26

€ 30,068

€ 9,341

Let

Let Yes

GT I PM

46325 Borken

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 90,750

49

Let

Let

62Let

€ 690 30.10.2014

€ 653

30.09.2013

01.08.2010

30.11.2021

01.03.2004 31.08.2014

€ 13,735 01.12.2011

31.07.2013

02.08.2014

75%

01.10.2003

75%

75%

22.09.2023

75%

23.09.2003

GT I PM

75%

75%

100%

GT I PM

Yes

Yes

GT I PM

GT I PM

abc

GT I PM

100%

100%

100%

75%

9,524 m²

100%

75%

0%

75%

75%

30.11.2013

75%

15.08.2015

GT I PM31.10.2013

GT I PM

GT I PM31.12.2017

GT I PM31.12.2017

01.03.2013

28.10.2003

01.11.2011

01.02.2012

75%

28.02.2015

75%

75%Yes

19.17

13.22

27.99

Yes

Yes

12.92

8.57

Yes

Yes

GT I PM

621 € 7,803

€ 77128

12.57

21.10.2015

€ 744

GT I PM75%

Total

81Let

Let

€ 2,248

LetRetail

13 Friseur Klier GmbH Retail

15 Dogan

12 C&A Mode KG Retail 359 € 4,645 Yes

GT I PM33.63 31.01.2021

GT I PM36 € 1,070 Yes 08.10.200329.72 07.10.2015

€ 2,738

Retail 50 € 1,151 Yes 01.11.2005Let 23.01

16 Dogan Retail 46 € 1,006 Yes 27.02.2004Let 22.07

17 Ernsting´s family GmbH & Co. KG Retail 144 € 2,860 Yes 25.09.2003Let 19.84

18 Ernsting´s family GmbH & Co. KG Retail 35 € 400 Yes 15.09.2004Let 11.42


20 Deutsche Plakat-Werbung GmbH & Co. KG Other Units 2 € 88 Yes 03.08.2009Let 44.17

21 Kurzzeitmieter Other Units 1 € 1,104 Yes 01.11.2008Let 1103.74 30.09.2022


GT I PM23 Bott Retail 31 € 630 Yes 01.03.2011Let 20.13 28.02.2014

24 Le Thahn Ha Other Units 1 € 500 Yes 01.04.2011Let 500.00 31.03.2014

25 External Parking External parking 400 € 0 No 01.02.2010Let 0.00 30.09.2022

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

28.01.2011



Tis9



€ 1,575

abc

0 0 5 100%0 0 25 External Parking External parking 400 € 0.00 € 0 € 0

0 0 1 100%0 0 24 Le Thahn Ha Other Units 1 € 500.00 € 500 € 0

€ 50 0 3 5 75%12 9

0 0 0%0 0

23 Bott Retail 31 € 25.00 € 783

Other Units 1 € 0.00 € 0 € 0 0

0 0 1 100%0 0

0 1 100%0 0

21 Kurzzeitmieter Other Units 1 € 0.00 € 0

100%0 0

20 Deutsche Plakat-Werbung GmbH & Co. KG Other Units 2 € 44.17 € 88 € 0 0

5

19 FOTOFIX Schnellphotoautomaten GmbH Other Units 1 € 83.57 € 84 0 0 1

€ 13.00 75%

0 3 5 75%12

0 3 12 12

€ 13.00 € 1,874 € 50

9 9

€ 50

12

75%

9 9 0 3 5 75%

0 3 5

75%

0 3 5 75%

0 3 5

0 12

0 3 512

50

75%

€ 50

75%

75%

5 75%9

0

9

9 9

€ 50

75%

3

0

5

3

5

9

0 9

9

75%

12

9 5

3 9

3

3

75%

0

3

5

75%

75%

3

0

75%

10

75%

3 5

5

75%

3

9€ 50 9

9 53

0 5

€ 50

€ 0

Total

22 Mall Income

13 Friseur Klier GmbH

€ 50

€ 50

€ 50

€ 50

81

€ 50

€ 50

9 14 Convenience Concept GmbH Retail

16 Dogan

Retail15 Dogan

Retail

Page 7 of 12

€ 100,5759,524 sqm

Term**

Matrix Portfolio

Re-letting

€ 688

€ 642

€ 9.25

€ 45535

36

36

50

€ 50

144

Retail

€ 25.00

€ 2,035

6 Reisecenter alltours GmbH

€ 25.00

18 Ernsting´s family GmbH & Co. KG

7 Sparkasse Westmünsterland

Retail

Retail

Retail

Retail

8 Takko Holding GmbH Retail

80

3 Kramer Schuhe GmbH & Co. KG Retail

Retail

2 ALPHA Warenhandel GmbH & Co. KG

1 Büsch GmbH

28

9 Almaz Mode & Mehr

12 C&A Mode KG

Retail

17 Ernsting´s family GmbH & Co. KG

10 Nyguen - Nail Studio

11 Adler Mode GmbH

Retail

Retail

5,495 € 7.75

Market

9

12 0

0

3

9 0


€ 25.00

€ 8,782

€ 748

621

€ 80.00

676

Rent

€ 25.00

€ 50

€ 1,250

9

€ 0

€ 4,672

€ 1,140

€ 8,067

€ 1,550

€ 25.00

€ 25.00

€ 14,820

€ 25.00

€ 13.00

€ 25.00

359

46

4 PM Service GmbH Retail 30

5 Nguyen - Asian Food 63 Retail

49

1,602

€ 42,585

9

€ 50

€ 13.00

€ 13.00

€ 900

9

9

€ 13.00

€ 25.00

12

Market

€ 50

46325 Borken

Retail

sqm/unitTenant Name

Retail € 50

€ 50

Heidenerstraße 32

Area Category

62

€ 900


12

9

9

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

DD 2266


0.00

0.00

10.56

0.000.000.00

1,089,001

0.00

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year0

0.00

9,524

00

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

9,524

46325 Borken

00

m²Use Category

Rent RentMarketRent


-11.0%1,198,8410.00

0

09,524

Market

01,066,667

€/month

DIY

Office

0

0

0

099,903

0.00%

10.49

0

0€/m²/month

406External parking

Rent

400

ContractualRent

€/year

0.00%6

0.00%

0.00%00

0

0.00%

Matrix Portfolio

Heidenerstraße 32 31.03.2013

0

00Commercial

0

Contractual

0

00

Potential

Area Vacant

400

€/m²/monthRent

0.00%400

Rent

00.00%


Use Category

Germany

28.01.2011

Capital indicator

€ 6,200 (single) € 27,000 (total)


Comment


17,156,874 €

The main tenant is a corporation belonging to the ALPHA Warenhandel GmbH & Co. KG, which in turnbelongs to the Lidl & Schwarz Group, one of the biggest grocer groups in Europe. According to Dun &Bradstreet (D&B) rating as at 01.01.2011 ALPHA Warenhandel GmbH & Co. KG has a below-averagecredit risk. The risk of insolvency (D&B Score) within the next 12 months compared with other Germancompanies is assessed to be low, i.e. 66% of businesses on the German database have the same orhigher risk of failure. According to section 19 of the main lease agreement entered into by the landlordand Kaufland Dienstleistung GmbH & Co. KG (D&B Rating = 2AA 1), an assignment of the main leaseagreement by the tenant to another entity of the Kaufland group requires that the landlord's credit riskrating may not deteriorate due to such assignment of the lease.

Rent p.a.

5,495 m²


2.1%

3.0%

5.47

7.75

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

177.0%-9.8%

8,063672100,575

111.981,206,904

0.0%0.0%0

0.0%

0

0

0

0.0%00.0%

0

10.41

7.81

0

33%

0

ALPHA Warenhandel GmbH & Co. KG

9.5 years

~ 4,300 m²

0 00


Main tenant

€ 360,815


Tenant name

5.20

Storage00

Petrol Station 0.00


9.53310.19


00

0 00

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

88,88900.00

9.33

Warehouse

Warehouse

Area Let

9,524

Other Units

00

Residential00

0

0

0.00%

Contractual


0

1,066,667

Retail

0.00


06

Income Analysis

Internal parking

Office

DIYRetail

Storage

90,75022,334

1,089,001

0 0

22,334

0

1,861

0.00

0.000.00


External parking

Total parking

€ / m²

5.475.20

7.757.81

10.41

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

3,990

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is fully let to twenty retail tenants. The WALT of the property amounts to 6.8 years. The main tenant is Kaufland with a share of approx. 33% of the rental income. The property is currently under-rented,due to a very low rental level of the main tenant Kaufland. As the lease contract is valid until 2022 and the tenant has options until 2037, we do not believe that the rental level can be adjusted before 2037. The rentof Kaufland is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relation to the CPI basis. Indexation started on 01.04.2009. The majority of the tenants pay allcosts (including ground tax, insurance costs and management costs) except for maintenance costs for structural repairs. Ground tax, maintenance costs for structural repairs, management and insurance costs willnot be borne by Kaufland, C&A and some smaller other units. The rest can be apportioned to the tenants in accordance with the German Regulation on Operating Costs.

0 €

0 €

€ 4,647€ 18,255

€ 4,721


€ 0

8.3%

4.81%

% of Gross

€ 10.00 /m²/p.a.

€ 2,4688.6%

0 €

€ 4,502 0 €0 €€ 4,431

0 €€ 4,356

8.5%€ 694

€ 17,081 8.5%8.3%€ 274

€ 16,574

€ 1,252

0 €

€ 0.00 /m²

Management costs


€ 9.38 /m²

€ 16,510€ 4,279

€ 16,806

4.34%



€ 93,738€ 93,305€ 91,094

€ 0

€ 1.72 /m²

% of Gross

0.00%

€ 16,335

€ 18,104


per year


€ 5.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 6.90%

6.50%


Heidenerstraße 32

Assumptions

The following tenants have extended their lease contracts: Kramer Schuhe GmbH & Co. KG until 12/2018, Takko Holding GmbH until 9/2023, C & A Mode GmbH & Co. KG until 8/15, Dogan until 10/2013,Ernsting´s family GmbH & Co. KG until 12/2017. Furthermore, the rent of Nguyen - Asian Food has increased due to indexation.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the stable Cash Flow, the long lease contract with the tenant Kaufland, the goodlocation, full occupancy and the good condition of the subject property.

28.01.201146325 Borken

Germany

31.03.2013

€ 0.43 /m²€ 0

0.38%€ 16,519€ 1.73 /m²

€ 0.00 /m²€ 4,138

per year

Year 8

€ 17,385€ 16,528

€ 58,816€ 57,887

€ 16,709

€ 54,165Year 3

€ 16,788

% of Total

Year 7

€ 4,152€ 15,807

€ 95,391

€ 89,785

€ 485

Total

€ 56,984 € 15,919



Other Non-

€ 07.55%

€ 0.43 /m² € 4,138

Insurance


1.37%

Market Rent

0.00%8.21%

1.50%€ 1.90 /m²€ 1.73 /m² € 16,519

€ 89,376

per year

€ 9.57 /m²


€ 91,145

€ 4,210


Gross Revenue

€ 17,538 € 19,138 0 €€ 17,625€ 61,587 € 19,422

Year 10€ 2,620

1.52%1.50%

Market Value

€ 59,761

Year 4

Year 6

€ 4,866

€ 16,839

Year 11€ 60,687

€ 18,846Year 9

GroundManagementTax

Maintanance

€ 16,867

CostsCosts

€ 55,130

Year 1Year 2

€ 52,558€ 53,294

€ 18,548

€ 56,081 € 17,685€ 17,970

Year 5

€ 16,820

9.0%

0 €€ 4,573

€ 106,1209.2%9.4%

0.34%

0 €

€ 5,286€ 4,795

€ 356

€ 4,757€ 107,444

€ 97,9109.0%

0 €

9.2%

€ 104,905

Year after 2021

€ 97,843

abc

€ 1,538 € 100,3378.7%

Page 9 of 12

Inflation

after 2021



Market

8.5%8.3% 8.5% 8.3% 8.6%

9.2%8.7%

9.0%9.4% 9.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







6.50%


€ 818,507€ 0

-€ 2,477

€ 0

-€ 107,444


€ 16,000,000€ 1,089,001

€ 1,575

Page 10 of 12

7.26%

€ 1,018,526

€ 9.53 Total

Total € 15,000,000

6.25%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 01.01.2011, the main tenant, ALPHA Warenhandel GmbH & Co. KG, has good covenant strength,which ensures a secure cash flow for the remainder of the lease term until at least 2022. Furthermore, according to section 19 of the main lease agreement entered into by the landlord and Kaufland DienstleistungGmbH & Co. KG (D&B Rating = 2AA 1), an assignment of the main lease agreement by the tenant to another entity of the Kaufland group requires that the landlord's credit risk rating will not deteriorate due to suchan assignment of the lease. Section 1 of the first amendment to the main lease agreement provides for the assignment of the main lease agreement to ALPHA Warenhandel GmbH & Co. KG, which has a worseD&B Rating (DD 2). Pursuant to section 2 of the first amendment to the main lease agreement, the former tenant remains jointly and severally liable for the landlord's payment claims. Hence, the former tenant is aguarantor for the lease payments of the current tenant. In terms of a resale, we considered such facts as visibility, condition and building age, competition situation and location.

-€ 45,261

abc

Valuation Comment

€ 1,206,904 per m²

-9.77%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. Regarding comparable rents, we have hadrecourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to the section "Investment Comparables". Theturnover and space productivity analysis shows that the main tenant Kaufland has a very low rental level. We have assumed that it is relatively unlikely to adjust the contract rent to the higher market rent after 2022(as 3x 5-year extension options are in place), which on the other hand further improves the cash-flow security and stability. We have been provided with updated information regarding necessary capitalexpenditures. All Capital expenditures for repairs in the first year as well as in the periods of year 2 to 5 and year 6 to 10 are considered to be covered by the maintenance costs of € 5.50/m² p.a.0

6.97%

Year 10 € 1,169,190€ 1,121,334

€ 0

€ 1,176,723Year 9

-€ 97,843

TIs and

-€ 91,094


€ 1,101,879 -€ 13,077

-€ 12,950-€ 24,634

€ 1,018,854

€ 963,439 -€ 7,843 € 951,454

Income

€ 0

-€ 1,872-€ 6,082 € 989,415

€ 1,030,750

Net

31.03.2013


€ 948,854€ 912,123€ 921,024

Year 6Year 7

-€ 30,316

€ 1,018,526

-€ 89,785Vacancy

Year 5

€ 1,149,507 € 1,119,191Year 8

Year 4

Year 2-€ 22,655

Gross

€ 1,121,499

Market Value


Heidenerstraße 32

€ 1,016,429

€ 984,543

8.05%per m²

€ 1,122,596

-€ 104,905-€ 100,337€ 0 -€ 6,066


€ 17,062,922

€ 1,680

€ 15,997,631-€ 106,120 -€ 23,687€ 1,175,032

Rent Overview



€ 15,997,631


per m²/month

€ 1,068,912

€ 661,949

-€ 8,431

-€ 57,215 € 0


-€ 93,305 € 1,008,574

Costs

€ 840,080

€ 1,061,746

Abatements

€ 1,005,203

-€ 10,446

-€ 97,910€ 999,838

-€ 15,509€ 0 € 1,024,686

€ 949,545

Year 3 € 1,124,534

€ 1,019,588€ 541,455-€ 50,963

-€ 95,391

€ 639,170

€ 1,100,646

Revenue€ 1,053,787

Turnover

Germany

€ 1,009,552

Revenue

€ 1,108,915 € 0

€ 0 € 1,113,917

Rent

€ 0

€ 1,088,226-€ 8,269

-€ 34,439 € 0Year 1

€ 1,124,488

€ 1,138,220

Year 11 € 1,220,293

€ 1,061,282

€ 10.56

€ 0€ 0

€ 1,218,892 -€ 49,702 € 0

€ 1,124,488-€ 7,582

-€ 15,624

€ 542,708

Yield Overview

€ 964,002

€ 1,030,750-€ 93,738

€ 1,118,497

46325 Borken

Cash Flow

Non-Total

-€ 4,142€ 0

€ 0

€ 8,755,407

-€ 55,389 € 0-€ 31,712

Present

€ 608,412

€ 756,796

-€ 15,921

Leasing

28.01.2011

Matrix Portfolio

Value @

6.0% 6.3% 6.3%6.4% 6.4%

6.0%

6.4% 6.4% 6.4%

6.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:


Heidenerstraße 32

28.01.2011

abcPage 11 of 12

Internal shopping mall

View towards main Kaufland entrance

Matrix Portfolio

View from Heidener Strasse towards rear side of the complex

46325 Borken

Photos

External porch - facade to the south

Escalator from the park deck on top of the building to the ground floor level


31.03.2013

Delivery zone to the north side of the building

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 7,887 m²Self-Service Department StoreSelf-Service Department Store

6,388 m²

5,479 m²Self-Service Department Store8,170 m²

1,085 m²1,622 m²Fashion Store

Kaufland BochumRhede

HerneFashion Store

Marktkauf

RecklinghausenWehmeyer

real,-

Strauss Innovation

Lübbenau

Comparable location < 50 km distance

Comparable purchasing power - distance 24.0 km

€ 10,329

€ 7.09 /m²€ 42,353

€ 9.52 /m²

Total Rent p.m.

€ 13,382 € 8.25 /m² Comparable location < 50 km distance€ 7.73 /m²

Comparable purchasing power - distance 9.0 kmComparable location < 50 km distance

€ 57,925


Area

Comparable location < 50 km distance€ 8.80 /m²

€ 71,298 € 9.04 /m²€ 56,214

€ 7.75 /m²€ 67,805

CommentOther federal state; slightly lower purchasing power

Rent p. sqm€ 62,000 € 7.75 /m²

Comparable location < 50 km distance

46325 Borken

City


Leasing Comparables

8,000 m²

Leasing Market

Kaufland


31.03.2013Heidenerstraße 32

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

LübbenauKaufland


8,749 m²


GeldernFreital



Investment Market




Date of Transaction



28.01.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 4 6 to 10 years Macrolocation 4 Good location and catchment areaLettable Area 4 Between 12,500 and 15,000 m² Microlocation 4 Good micro locationProperty condition 3 Average building condition Commercial activity 4 Average commercial activity nearbyGeneral impression 2 Below average general impression Competition 3 Average competition level

Investment Quality

WALT 5 WALT longer than ten years Investment market 4 Well developed property marketOver- / underrent 5 Significantly underrented (more than -15%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

Leasehold on car park

31.03.2013


Key Figures

Westliche Stadtmauerstraße 27

2004


Building

Liquidity

Valuation Results

Location


8.86%

Discount Rate

8.86%

excluding capital

expenditures6.50%



10.6 years

0

Good branch and tenant mix


Established location, pedestrian zone of Erlangen in immediate vicinity


€ 5.24

1975


91054 Erlangen

Property Summary

Retail Park

Germany

01.02.2011

Property type


Kaufland Vertrieb SIGMA GmbH & Co. KG


4.0%

Main tenant


-19.2%

€ 1,216,050

€ 842,379



Strengths

Very good accessibility from Fuchsengarten to the parking area

Low visibility from "Altstadtmarkt-Passage" and Hauptstraße

Strong dependancy from the main tenant KauflandProlongation of the main lease contract, Kaufland exercises its options until 2037 Other tenants along pedestrain passage could also terminate their contracts

Long-term vacancies possible

Three vacant retail areas

€ 9.74 / m² / p.m.€ 12,700,000

6.80%

The property has 4 buildings: a car park, a self-service department store, some units along an uncovered pedestrian passage and a commercial building. The 4-storey car park, accessible via Fuchsengraben, wascompleted in 1993. The upper parking area is roofless, and accessible via a staircase and 2 elevators. It is built as an open steel construction with reinforced concrete floor slabs. The outer boundaries have steelrailings. The three-storey self-service department store was completed in 1975 and refurbished in 2004. The drinks cash-and-carry is on the ground floor. The store access is adjacent to the parking area orinternally via escalators. Kaufland’s sales area, the cash area as well as several smaller shops are on the first floor. The main entrance to Kaufland is from the pedestrian passage “Altstadtmarktpassage”. Thesecond floor is connected by escalators. The delivery zone is located south of the subject site. The delivery area for the drinks cash-and-carry and other goods are separate.

0

6.29%

Market Rental Value

10.44

€ 1,566,081 p.a.

Multi-storey self-service department storeWeaknesses

Matrix Portfolio

Confusing route marking through the parking area to the sales area

€ 948 per m²

Property is currently let below market rental level (under-rented)

Re-letting of the vacant units

However, access to both zones is via Fuchsengraben. The self-service department store is a frame construction. The façade mostly has plastered prefabricated concrete panels, with some sandwich panels. Thesingle-storey related units are built on the first floor level of the tenant “Kaufland”. The units were built at the same time as the self-service department store. Both buildings have a flat roof. The pedestrian passageentrance is from “Kaufland” as well as from Hauptstraße. The 3-storey commercial building is located on Hauptstraße and was completed in 1975. The pedestrian passage is on the ground floor level. The façade ofthe commercial building is listed. The building is made of brickwork and has a gable roof.

equals toequals to

Market Value






0

€ 2.32

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






123.52

Erlangen is well connected to the German railway network. The city is directly connected to the A73federal motorway and to the A3 federal motorway. The A9 federal motorway is located about 20 kmaway and can be reached in less than 20 minutes. It runs from Berlin to Munich. The city’s traffic networkis further supplemented by the B4 federal road. Erlangen Central Station is a stopping point for ICEtrains. The nearest airport is Nuremberg Airport approx. 15 km from Erlangen. It can be reached in lessthan 12 minutes.

Micro Location

Erlangen is located in the Middle Franconia region in the federal state of Bavaria, approx. 25 km north ofNuremberg. With the cities of Nuremberg and Fuerth, approx. 18 km south of Erlangen, it forms themetropolitan region Nuremberg. The city has approx. 105,000 inhabitants. The economic structure ispredominantly affected by Siemens AG. The city of Erlangen is the second largest Siemens AG locationworldwide. Different divisions of Siemens AG are operated from Erlangen. Furthermore, some facultiesof the Friedrich-Alexander-Universität Erlangen-Nürnberg are located in Erlangen. The university is thesecond largest in the state of Bavaria.

Location


31.03.2013

91054 Erlangen 01.02.2011

Erlangen (Urban District)

Germany

Bavaria



3.9%

2,744

Erlangen Macro Location

3.5

Micro Location

500

The self-service department store is located along Westliche Stadtmauerstraße, whereas the buildingparts at the Altstadtmarktpassage extend to the east along Hauptstraße. The high street of Erlangen islocated south of the property just 200 m away. The subject property is accessible via Fuchsengraben bycar and from Hauptstraße by foot. A bus stop is located directly in front of the three-storey commercialbuilding along Hauptstraße. Due to the city centre location of the property, the surrounding ischaracterised by a relatively high density of retail and residential use. The central station is locatedapproximately 250 m south of the property. The B4 federal road can be accessed in about 3.2 km. TheA74 federal motorway is located around 850 m away.


2.4%

108.34114.12

2.4%

2,744

4.5%

Structual Data

abc


106,326

91054

13821,382

12,510,331106,326

Erlangen

1.1%

53,081

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Westliche Stadtmauerstraße 27 31.03.2013

01.02.2011

Germany

No Suspicion

According to information from the local authority in Erlangen, a legally binding development plan exists,entitled no. 253 “Fuchsenwiese” and dated 31.03.1994. The non-food sales area is maximized to5,000m². The maximum number of full storeys is limited to two, with some areas permitted only to haveone storey.


TPL Erlangen S.à.r.l., Luxembourg

Land Register

1301216991

27710 (leasehold)28698

Sheet 13012972, 972/1,

1587/1, 1587/2

Sheet 1699114 (75/100 co-

ownership)

Sheet 277101583/7

Owner

30.06.2017, but 30 years options

Site Information


YesGround lease

Site layout

Site Plan



Matrix Portfolio

91054 Erlangen

MK (core zone)

n.a.

0

Sheet Plot Parcel

n.a.

Tenure

Site servicing


0 m²

n.a.

Town Planning

Fully serviced


Irregular

The site is built on different levels. The parking area and the drinks cash-and-carry are constructed atthe same level as Fuchsengraben, whereas the main entrance of the self-service-department store andthe pedestrian passage is constructed at the same level of Hauptstraße. The part of the site with the carpark is bordered by the railway line to the west. To the east, Fuchsengraben runs in an S-curve alongWestliche Stadtmauerstraße, where it is tangent to the street along the railway line. The S-curve is thewestern border of the part of the site with the pedestrian passage. This part of the site is bordered byHauptstraße to the east.For the purposes of this valuation, we have assumed that the subject property is free of any soil orbuilding contamination.

Sheet 13012 / 16691 / 27710Limited personal easement (right to operate a self-service department store) in favour of Kaufland Dienstleistungs GmbH & Co. KG

Sheet 27710Leasehold of € 350,000 per year in favour of the landlord of parcel 1583/7, registered until 30.06.2017, currently in Sheet 28698

Sheet 28698Reservation of right to prolongate the leasehold (first option for further 20 years, second option for further 10 years) in favour of the leaseholderFurther rights in 13012 / 16991 / 27710 / 28698


Sheet 13012 / 16991Land charges in the total amount of € 11,950,000 in favour of Bank of Scotland (branch Frankfurt), registered on 19.10.2007

Sheet 27710Land charges in the total amount of € 2,800,000 in favour of Bank of Scotland (branch Frankfurt), registered on 19.10.2007

Local Court of Erlangen, land register of Erlangen

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



123.52

2.4%

abc


91054 Erlangen

Name91052 Erlangen, Carl-Thiersch-Str. 4

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress



Page 4 of 12



19,962

Medium to low

0Low

1,650 m²

Low1.30 km



91083 Baiersdorf, Forchheimer Str. 49Rewe Zwingel


41,882

53,081

Kaufland

0

460,706

1,600 m²1,650 m²



4.30 km8.20 km

91058 Erlangen, Weidenweg 1-391088 Bubenreuth, Frankenstr. 75 Hypermarket

91052 Erlangen, Michael-Vogel-Str. 1a

91058 Erlangen, Cumianastr. 4

Rewe PlankE-center Bächmann

91052 Erlangen, Karl-Zucker-Str. 10

Rewe

E-center

91056 Erlangen, Neumühle 4



Edeka Neugebauer

101,202

Edeka

114.12

179,655

Hypermarket8.90 kmHypermarket91074 Herzogenaurach, Ohmstr. 12

Rewe WittmannHandelshof

91077 Neunkirchen, Zum Neuntagwerk 9 8.80 km


0

2.70 km

1,716 m²2,300 m²

m²

00

0


0



01.02.2011


31.03.2013

LowLow

Low

Low

Low

Low

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


01.02.2011

31.03.2013

Matrix Portfolio

Turnover analysis

A self-service department store, Kaufland, is located in a distance of approximately 1.9 km south-east of the subject property. It comprises 5,350m² of sales area. Parking facilities are available directly in front of the competitor as well as in an adjacent car park. The surrounding area is characterised by modern office use, medical services and residential use. The competitor is built on former military areas.

Main competitors

91054 Erlangen


The multi-storey sales area of the subject property is no disadvantage. Generally, development within the city centre has a higher density and is characterised by higher land use type. However, further smaller shopping facilities for everyday commodities are located within the city centre. Considering all mentioned factors, the competition level can be described as medium.

The rents in functional a retail agglomeration are linked to turnover. The percentage rate that a retail tenant can use for rental payments (turnover-to-rent ratio) depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective branch. The productivity varies between approx. € 1,000/m² and up to more than € 10,000/m². For Kaufland, we have also been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Considering the location factors and the competition level within Erlangen, we assumed that a higher turnover-to-rent ratio regarding a similar branch and turnover is realistic. Hence, a higher market rent is achievable after the end of the lease contract. Please also refer to the rent/turnover analysis on page 8.

abc

Competition Comment

The catchment area can be differentiated into primary (0 - 5min driving time); secondary (5 - 10min) and tertiary (10 - 15min) catchment areas. More than 100,000 inhabitants live in the primary catchment area. The competitor Kaufland is located in the secondary catchment area approx. 1.9 km away or less than 10 min driving distance. Thus, the vicinity to the city centre is attractive for the customers. The competing property is a one-storey structure. As both properties offer a full product range, the branch related assortment is generally problematic. In the current valuation, we assumed that the significantly larger sales area of the subject property is combined with a larger depth of product range. Furthermore, the subject location is in close proximity to Erlangen’s pedestrian zone.

As one-storey self-service department stores generally enjoy a higher degree of acceptance than multi-storey departments, we assumed that there is no immediate competition for the purchasing power of the customer. There is no direct competition between a city centre self-service department store and a location close to the city centre. Hence, we are of the opinion that both department stores can co-exist in the long term. The second competitor E-Center is located in the primary catchment area. However, with a sales area of approx. 2,500 m², the store offers a lower depth and breadth of product range. The assortment is not branch related. The second competitor is therefore also not a direct competitor of the subject property. An important advantage of the subject property over other competitors is that the close proximity of Erlangen’s pedestrian zone holds additional benefits. Thus, the parking area of the subject property is also used for shopping in the high street of Erlangen. Afterwards, the weekly shopping for every day commodities can be done.

0

The rental area of Kaufland can be regarded as relatively unproblematic. In the unlikely case that Kaufland vacates the premises, the property could be re-let to other self-service department stores as real, Marktkauf or E-Center. However, the third-party usability of the area is limited. The lettable area is not suitable for large-scale retail purposes such as a DIY store or furniture store. Both branches are not as strong as a self-service department store. The numbers of passersby also cannot be increased in the long term. According to the turnover analysis, the turnover rent is at the lower end of the range and a higher turnover-to-rent-ratio is achievable. Therefore, the retail unit is currently heavily under-rented. We assumed that the tenant Kaufland will exercise its three options, each for five years, by 2037. During this time, there will be steady demand for ancillary lettable spaces within the property. There is no direct competition within the vicinity.

The subject property is a self-service department store situated in a very good location within Erlangen. The depth and breadth of the product range is very good. However, the property is not easily accessible by foot due to the confusing route marked from the parking area to the tenant Kaufland. The property is also less visible from the street Fuchsengraben and Hauptstraße. Furthermore, we are of the opinion that the tenant and branch mix within the one-storey units along the pedestrian passage are critical. Currently, there are five vacant units. We assumed that access from the parking area is used more frequently by customers as opposed to the access road from Hauptstraße. As the pedestrian passage can be defined as a secondary location, the frequency of passersby is rather low. Furthermore, the tenant and branch mix is not comparable with that of the pedestrian zone. The profit of the tenants within the passage is very dependent on Kaufland.


A supermarket “E-Center” is located in close proximity to the railway tracks. It comprises 2,500 m² of sales area. The supermarket is located approx. 1.3 km south of the subject property. Parking facilities are available in front of the competitor as well as in the underground car park. Some smaller rather regional retailers are located near the Edeka.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Deutscher Hausfrauen-Bund e.V.

5.27

€ 950

30 Oberbank Erlangen

Retail10 Stadt Erlangen

11 Schmidl

Let

Page 6 of 12

GT I PM

30.09.2013

37

Internal Parking

Retail

5 Amorim-Kneisl

3 Tran Thi

116

10.34

13.01

Retail 26.72

8.75

2 Kaufland Vertrieb SIGMA GmbH & Co. KG Retail

pays VAT

31.07.2013

30.09.2022

75%

75%

Start

75%

31.03.2013Westliche Stadtmauerstraße 27

Tenant

Matrix Portfolio

01.02.2011


TenantLeaseArea

Let

Let

30.05.2017Yes

01.10.2007

Yes


1 Kraus Retail 73

/ month Probability

75%

161

9 Stadt- und Kreissparkasse Erlangen Retail

vacant

Retail

8 Hauswirtschaftliches Serviceteam GmbH

14 Orientteppich-Galerie

6 vacant

30.06.2007

01.06.2007

No

GT I PM

75%

Retail

Yes

€ 910


Retail 160

10,737

Let

Office

88

12.99

€ 56,598

€ 1,400

Let

Let Yes

GT I PM

91054 Erlangen

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 101,338

85

Let

Let

34Let

€ 805 30.09.2013

€ 0

05.12.2016

01.10.2010

31.03.2013

22.06.2007 21.06.2013

€ 452 01.04.2007

01.06.2009

30.09.2013

31.12.2013

02.08.2014

0%

30.09.2022

75%

06.12.2006

30.06.2013

31.12.2013

31.12.2013

31.12.2013

31.12.2013

31.12.2013

31.12.2013

75%

75%

31.12.2013

75%

75%

31.12.2013

75%

75%

01.08.2010

31.12.2013

75%

30.11.2017

75%

75%

01.01.2008

75%

75%

75%

75%

GT I PM

75%

75%

31.03.2014

75%

75%

Yes

GT I PM

GT I PM

abc

GT I

75%

75%

75%

75%

75%

75%

0%

13,398 m²

31.12.2013

75%

75%

75%

75%

75%

75%

GT I PM31.07.2013

75%

31.08.2014

GT I PM31.12.2015

GT I PM

GT I PM31.12.2013

GT I PM31.12.2013

06.02.2007

01.09.2004

15.09.2011

02.07.2007

75%

31.07.2013

75%

75%Yes

5.00

0.00

6.13

Yes

Yes

25.68

12.06

No

Yes

GT I PM

80 € 494

€ 1,718280

6.18

€ 3,100

GT I PM75%

Total

47Let

29 Vacant

Let

Internal Parking 1

31 Oberbank Erlangen

Let

€ 445

LetRetail

13 Endres Retail

€ 0

15 Apotheke Bernd Nürmberger

GT I PM12 Topuz Retail 41 € 1,042 Yes

GT I PM48.45 01.07.2017

GT I PM137 € 1,047 Yes 01.12.20107.65 30.11.2013

€ 2,277

Retail 87 € 3,067 Yes 01.01.2001Let 35.25

16 Rüffer Retail 112 € 1,368 Yes 01.10.2010Let 12.22

17 Linus Schade + Julian Wening Residential 102 € 746 Yes 01.08.2007Let 7.33

18 Müller Residential 139 € 734 Yes 01.10.2009Let 5.28

19 Tran Thi Storage 60 € 100 Yes 01.06.2007Let 1.67

20 Deutsche Plakat-Werbung GmbH & Co. KG Other Units 12 € 530 No 03.08.2009Let 44.17

21 Hauswirtschaftliches Serviceteam GmbH Internal Parking 1 € 29 Yes 01.07.2008Let 29.41 31.12.2013

22 Vacant Internal Parking 1 € 0vacant 0.00

23 Schmidl Internal Parking 1 € 29 Yes 01.07.2008Let 29.41 31.12.2013

24 Bätz Internal Parking 1 € 29 Yes 01.10.2010Let 29.41 31.12.2013

25 Metzgerei Ludwig Walk GmbH Internal Parking 1 € 29 Yes 01.08.2008Let 29.41 31.12.2013



28 Vacant Internal Parking 1 € 0vacant 0.00

vacant 0.00

1 € 29 Yes 01.06.2009Let 29.41

Internal Parking 1 € 29 YesLet 29.41

32 Oberbank Erlangen Internal Parking 1 € 29 Yes 01.06.2009Let 29.41

33 Fuchs Internal Parking 1 € 29 Yes 18.06.2009Let 29.41

34 Gottschling Internal Parking 1 € 29 Yes 11.11.2010Let 29.41 75%

35 Meyer Internal Parking 1 € 29 Yes 01.04.2010Let 29.41 75%

36 Denslinger Richardson Internal Parking 1 € 29 Yes 15.08.2009Let 29.41 75%

37 Haas-Eberhard Internal Parking 1 € 29 Yes 01.08.2010Let 29.41 75%

38 Haas-Eberhard Internal Parking 1 € 29 Yes 01.08.2010Let 29.41 75%

39 Haas-Eberhard Internal Parking 1 € 29 Yes29.41 75%30.06.2013

40 Rüffer Internal Parking 1 € 29 Yes 01.10.2010Let 29.41 75%

GT I 41 Gemeinnützige Wohnungsbaugesellschaft Other Units 1 € 0 Yes 01.01.2007Let 0.00 31.12.2013

GT I 42 Parking Garage Internal Parking 470 € 20,000 Yes 01.11.2008Let 42.55 31.07.2037

43 VACANT Retail 366 € 0Vacant 0.00

GT I 44 Stadt Erlangen Office 144 € 722 Yes 01.06.2011Let 5.03 31.05.2016

GT I 45 Stadt Erlangen Office 92 € 463 Yes 01.06.2011Let 5.03 31.05.2016

0%46 Orientteppich-Galerie Internal Parking 1 € 29 Yes 01.02.2011Let 29.41 31.12.2013

0%47 Orientteppich-Galerie Internal Parking 1 € 29 Yes 01.02.2011Let 29.41 31.12.2013

0%48 Mönius Internal Parking 1 € 29 Yes 15.02.2011Let 29.41 31.12.2013

0%49 Knauer Internal Parking 1 € 29 Yes 15.04.2011Let 29.41 75%

0%50 Thiem-Hofmann Internal Parking 1 € 0 Yes 10.03.2011Let 0.00 75%

0%51 Stadt Erlangen Internal Parking 1 € 35 YesLet 35.00 01.06.2011 31.05.2016

0%52 Stadt Erlangen Internal Parking 1 € 35 Yes 01.06.2011Let 35.00 31.05.2016



GT I PM55 Kolasinac GbR, Thiem-Hofmann Retail 90 € 500 Yes 01.10.2012let 5.56 31.12.2013

56 VACANT Retail 81 € 0Vacant 0.00

GT I PM57 Deminer Imbiss Retail 50 € 530 Yes 01.10.2012Let 10.60 75%


0%59 Kurzzeitmieter Other Units 1 € 579 Yes 00.01.1900Let 579.17 100%

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

01.02.2011



Tis0



€ 1,012

€ 0

€ 750

abc

0 0 5 100%€ 0 0 0 59 Kurzzeitmieter Other Units 1 € 0.00 € 0

0 58 Mall Income Other Units 1 € 0.00 0 0 0%€ 0 0 0

3 5 75%€ 100 0 15

Retail 81 € 11.50

0

15

57 Deminer Imbiss Retail 50

€ 93256 VACANT

75%€ 100 15 15

3 5 75%0 € 100 15

54 Stadt Erlangen Internal Parking 1 € 30.00

55 Kolasinac GbR, Thiem-Hofmann Retail 90 € 11.50

0 5

0 3

€ 0 0

5

75%€ 0 0 0

0 5 75%0 0

0 53 Stadt Erlangen Internal Parking 1 € 30.00 € 30

0 52 Stadt Erlangen Internal Parking 1 € 30.00 0 5 75%€ 0 0 0

0

€ 30

0 5 75%€ 0 0 0

75%€ 0

51 Stadt Erlangen Internal Parking 1 € 30.00 € 30

0 50 Thiem-Hofmann Internal Parking 1 € 30.00 0 0 0 5

Internal Parking 1 € 30.00 € 30 0

0

75%€ 0 0 0 0 549 Knauer

0

75%€ 0 0 0

0 5 75%

0

47 Orientteppich-Galerie Internal Parking 1 € 30.00 € 30

548 Mönius Internal Parking 1 € 30.00

75%

3

0 0

€ 0 0

€ 30.0046 Orientteppich-Galerie

€ 100 0 15

0

3

5

€ 0

75%

5

45 Stadt Erlangen Office 92 € 6.00 € 552

1

75%€ 0 0 0

5

0

5 75%

3

75%3 0

€ 42.55 5

€ 862 € 100 0

€ 100 15

3

43 VACANT Retail 366 € 9.00 € 3,294

0

42 Parking Garage Internal Parking

41 Gemeinnützige Wohnungsbaugesellschaft

470

44 Stadt Erlangen Office 144 € 6.00

0

40 Rüffer Internal Parking 1 € 30.00 0

Other Units

0 € 20,000

5 75%€ 0 0

0

75%€ 0 0 0 5

€ 30 5 75%€ 0 0

0

0 0

6

39 Haas-Eberhard Internal Parking 1 € 30.00 € 30

5 75%€ 0 0 6

0 5

0

0 6 75%€ 0

37 Haas-Eberhard Internal Parking 1 € 30.00 € 30

0 € 30

0

38 Haas-Eberhard Internal Parking

0 36 Denslinger Richardson Internal Parking 1 € 30.00

1 € 30.00

0 € 30 5 75%€ 0 0 6

5 75%€ 0 0

0 0 5 75%€ 30.00

0

€ 0 0 6

0

0 6

35 Meyer Internal Parking 1 € 30.00 € 30

34 Gottschling Internal Parking 1

33 Fuchs Internal Parking 1 € 30.00 € 30 € 0 0

0 0 5 75%0 6

0 5 75%

32 Oberbank Erlangen Internal Parking 1 € 30.00 € 30 € 0

0 0 5 75%0 6 31 Oberbank Erlangen Internal Parking 1 € 30.00 € 30 € 0

0 0 5 75%0 6 30 Oberbank Erlangen Internal Parking 1 € 30.00 € 30 € 0

0 0 5 75%6 6 29 Vacant Internal Parking 1 € 30.00 € 30 € 0

0 0 5 75%0 6 28 Vacant Internal Parking 1 € 30.00 € 30 € 0

0 0 5 75%0 6 27 Metzgerei Ludwig Walk GmbH Internal Parking 1 € 30.00 € 30 € 0



0 0 5 75%0 6 24 Bätz Internal Parking 1 € 30.00 € 30 € 0

€ 0 0 0 5 75%0 6

0 5 75%0 6

23 Schmidl Internal Parking 1 € 30.00 € 30

Internal Parking 1 € 30.00 € 30 € 0 0

0 0 5 75%0 6

0 5 75%0 15

21 Hauswirtschaftliches Serviceteam GmbH Internal Parking 1 € 30.00 € 30

75%0 15

20 Deutsche Plakat-Werbung GmbH & Co. KG Other Units 12 € 44.17 € 530 € 0 0

5

19 Tran Thi Storage 60 € 0.00 € 0 0 3 5

€ 6.50 75%

0 3 5 75%0

0 3 0 6

€ 6.50 € 661 € 25

0 15

€ 100

6

75%

0 15 0 3 5 75%

0 3 5

75%

0 3 5 75%

0 3 5

0 15

0 3 515

50

75%

€ 100

75%

75%

5 75%0

0

15

0 15

€ 100

75%

3

0

5

3

5

0

0 0

15

75%

0

15 5

3 15

3

3

75%

0

3

5

75%

75%

3

0

75%

10

75%

3 5

5

75%

3

0€ 100 15

15 53

0 5

€ 25

€ 0

Total

22 Vacant

13 Endres

€ 100

€ 100

€ 100

€ 100

47

€ 100

€ 100

15 14 Orientteppich-Galerie Retail

16 Rüffer

Retail15 Apotheke Bernd Nürmberger

Residential

Page 7 of 12

€ 130,50713,398 sqm

Term**

Matrix Portfolio

Re-letting

€ 1,680

€ 850

€ 12.00

€ 904

€ 1,035

€ 0

139

161

137

87

€ 100

102

Retail

€ 9.00

€ 705

6 vacant

€ 15.00

18 Müller

7 Deutscher Hausfrauen-Bund e.V.

Retail

Retail

Retail

€ 30

1 € 0.00

€ 30Internal Parking

€ 15.00

Retail

8 Hauswirtschaftliches Serviceteam GmbH Retail

73

3 Tran Thi Retail

Office

2 Kaufland Vertrieb SIGMA GmbH & Co. KG

1 Kraus

280

9 Stadt- und Kreissparkasse Erlangen

12 Topuz

Residential

17 Linus Schade + Julian Wening

10 Stadt Erlangen

11 Schmidl

Retail

Retail

10,737 € 7.90

Market

15

12 3

0

3

15 0

Rent /month€ 840

€ 11.50

€ 1,600

€ 1,334

80

€ 11.50

160

Rent

€ 11.50

6

6

15

0

15

€ 100

€ 30

€ 30

€ 30

€ 1,001

0

€ 0

€ 487

€ 1,287

€ 800

€ 411

€ 11.50

€ 11.50

€ 450

€ 10.00

€ 12.00

€ 12.00

41

112

4 Frisör Klier GmbH Retail 116

5 Amorim-Kneisl 88 Retail

85

37

€ 84,819

0

€ 100

€ 10.00

€ 10.00

€ 1,610

0

0

€ 10.00

€ 6.00

0

Market

€ 100

91054 Erlangen

Retail

sqm/unitTenant Name

Retail € 50

€ 100


Area Category

34

€ 1,233


0

0

15

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

On.a.n.a.


41.82

0.00

8.18

6.500.000.00

1,019,956

0.00

0.00%

Rented€/year

00

-6.2%

0.0%

0.00

€/month €/year2,903

0.00

12,866

01,200

0

34,833

241

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

12,050

91054 Erlangen

00

m²Use Category

Rent RentMarketRent


-25.0%1,253,3736.00

0

012,582

Market

34,833952,819

€/month

DIY

Office

0

516

0

3,094104,448

3.97%

8.30

0

37,128€/m²/month

514External parking

Rent

0

ContractualRent

€/year

0.60%15

0.00%

0.00%0

53260

0.00%

Matrix Portfolio

Westliche Stadtmauerstraße 27 31.03.2013

0

00Commercial

516

Contractual

3

0496

Potential

Area Vacant

496

€/m²/monthRent

0.58%0

Rent

30.00%


Use Category

Germany

01.02.2011

Capital indicator

n.a.


Comment


36,582,177 €

According to section 19 of the main lease agreement entered into by the landlord and KauflandDienstleistung GmbH & Co. KG (D&B Rating = 2AA 1), an assignment of the main lease agreement bythe tenant to another entity of the Kaufland group requires that the landlord's credit risk rating may notdeteriorate due to such assignment of the lease. Section 1 of the first amendment to the main leaseagreement provides for the assignment of the main lease agreement to Kaufland Vertrieb SIGMA GmbH& Co. KG. For this tenant, no financial information was available. Accordingly, pursuant to section 2 ofthe first amendment to the main lease agreement, the former tenant remains jointly and severally liablefor the landlord's payment claims. Hence, the former tenant is a guarantor for the lease payments of thecurrent tenant.

Rent p.a.

10,737 m²


1.9%

2.8%

5.27

7.90

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

109.8%-23.5%

6,360530109,637

35.331,315,641

0.0%0.1%250,440

0.0%

1,565

0

20,870

-5.4%18,7790.0%

0

11.36

8.52

0

56%

0

Kaufland Vertrieb SIGMA GmbH & Co. KG

9.5 years

~ 8,439 m²

20,758 250,5970


Main tenant

€ 679,175


Tenant name

5.68

Storage0



6.2674.14


1,4800

0 00

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

74,98500.00

6.22

Warehouse

Warehouse

Area Let

13,398

Other Units

0532

Residential60241

0

249,091

4.23%

Contractual


0

899,822

Retail

5.63


49915

Income Analysis

Internal parking

Office

DIYRetail

Storage

80,58013,345

966,959

17,758 17,758

13,345

1,200

1,112

1.67

0.006.15


External parking

Total parking

€ / m²

5.275.68

7.90

8.52

11.36

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

4,335

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is let to 16 retail tenants, three office tenants and two residential tenants . Furthermore, 30 parking spaces are let for permanent use. Currently, three retail units are vacant. The WALT amounts to 10.6years. The main tenant is Kaufland with a share of more than 55% of the rental income. The property is currently significantly under-rented due to the very low rental level of the main tenant, Kaufland. As the leasecontract is valid until 2022 and the tenant has options until 2037, we do not believe that the rental level can be adjusted before 2037. Kaufland’s rent is indexed and will be adapted by 50% of the CPI change,whenever the change exceeds 10 percent in relation to the CPI basis. Indexation started on 01.10.2009. The majority of the tenants pay all costs (including ground tax, insurance costs and management costs)except for maintenance costs for structural repairs. Ground tax, maintenance costs for structural repairs, management and insurance costs will not be borne by Kaufland. We are aware of Deminer Imbiss takingover a vacant retail unit. The following tenants have extended their lease contracts: Kraus until 05/2017, Deutscher Hausfrauen-Bund e.V. until 12/2016 , Hauswirtschaftliches Serviceteam GmbH until 11/2017,Linus Schade + Julian Wening until 12/2013, Müller until 12/2013 and Kolasinac GbR, Thiem-Hofmann until 12/2013.

224,552 €

238,906 €

€ 4,138€ 67,915

€ 4,205


€ 0

30.9%

7.16%

% of Gross

€ 10.00 /m²/p.a.

€ 2,15331.6%

206,736 €

€ 4,009 221,048 €217,546 €€ 3,946

210,113 €€ 3,879

32.8%€ 8,802

€ 63,548 29.9%30.4%€ 1,732

€ 61,663

€ 230

203,881 €

€ 15.17 /m²

Management costs


€ 27.89 /m²

€ 18,878€ 3,811

€ 62,527

5.56%



€ 394,881€ 387,166€ 382,228

€ 1,648

€ 1.36 /m²

% of Gross

12.98%

€ 18,241

€ 23,491


per year


€ 6.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 6.80%

6.50%



Assumptions

Tenant Stadt Erlangen used the options and its leases lost their rent-free status. Furthermore, the rent of Nguyen - Asian Food and that of Deutscher Hausfrauen-Bund have increased due to indexation. Theworking hours and tariff for parking have been raised. This results in an increase of parking fees from €123,544 to €240,000 p.a.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the stable Cash Flow, the long lease contract with the tenant Kaufland, the goodlocation, the low vacancy rate and the good condition of the subject property.

01.02.201191054 Erlangen

Germany

31.03.2013

€ 0.28 /m²€ 203,200

0.30%€ 61,457€ 4.59 /m²

€ 15.17 /m²€ 3,686

per year

Year 8

€ 64,680€ 19,412

€ 97,785€ 96,241

€ 19,021

€ 90,052Year 3

€ 19,477

% of Total

Year 7

€ 3,698€ 17,492

€ 400,512

€ 382,917

€ 965

Total

€ 94,739 € 18,791



Other Non-

€ 203,20024.20%

€ 0.28 /m² € 3,686

Insurance


3.92%

Market Rent

16.71%30.73%

1.50%€ 1.75 /m²€ 4.59 /m² € 61,457

€ 373,671

per year

€ 28.28 /m²


€ 378,922

€ 3,750


Gross Revenue

€ 19,847 € 71,201 235,416 €€ 20,015€ 102,393 € 72,256

Year 10€ 541

5.05%1.50%

Market Value

€ 99,357

Year 4

Year 6

€ 4,333

€ 18,720

Year 11€ 100,897

€ 70,114Year 9

GroundManagementTax

Maintanance

€ 19,159

CostsCosts

€ 91,657

Year 1Year 2

€ 87,381€ 88,605

€ 69,005

€ 93,238 € 65,796€ 66,855

Year 5

€ 19,815

32.9%

228,156 €€ 4,073

€ 438,44432.7%32.3%

0.24%

213,858 €

€ 1,545€ 4,270

€ 3,966

€ 1,228€ 433,176

€ 415,46732.2%

231,823 €

32.5%

€ 426,542

Year after 2021

€ 407,595

abc

€ 40 € 418,60133.3%

Page 9 of 12

Inflation

after 2021



Market

32.8%

30.4% 29.9%30.9% 31.6%

32.5% 33.3%32.2% 32.3% 32.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







5.00%


€ 694,596-€ 2,013

-€ 61,263

-€ 8,453

-€ 433,176


€ 13,400,000€ 1,216,050

€ 948

Page 10 of 12

9.58%

€ 854,302

€ 7.56 Total

Total € 12,700,000

6.29%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 4.2.2011, the tenant Kaufland Dienstleistung GmbH & Co. KG is the former tenant of the mainlease contract and has good covenant strength. According to the second amendment of the lease contract, the former tenant remains jointly and severally liable for the landlord's payment claims. However, thelease contract ensures a secure cash flow for the remainder of the lease term until at least 2022. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance, condition andbuilding age, third-party usability, competition situation and location. Regarding the leasehold, we have assumed that the leaseholder will exercise its options for in total another 30 years. This is due to the fact thatthe leasehold is on the car park site, which is in our opinion essential for the operation of the self-service department store. Otherwise, there are insufficient parking spaces available. The right to prolong theleasehold is registered in Sheet 28698 in the land register of Erlangen.

-€ 7,318

abc

Valuation Comment

€ 1,566,081 per m²

-19.15%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. We have been provided with updatedinformation regarding necessary capital expenditures. All Capital expenditures for repairs in the first year as well as in the periods of year 2 to 5 and year 6 to 10 are considered to be covered by the maintenancecosts of € 6.50/m² per annum. Regarding comparable rents we have had recourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparabletransactions. Please refer to the section "Investment Comparables".

0

8.86%

Year 10 € 1,323,112€ 1,321,008

€ 0

€ 1,333,605Year 9

-€ 407,595

TIs and

-€ 382,228


€ 1,294,137 € 0

-€ 1,135-€ 37,748

€ 879,858

€ 845,160 -€ 6,390 € 836,517

Income

-€ 2,602

-€ 18,235€ 0 € 906,971

€ 871,891

Net

31.03.2013


€ 757,640€ 722,626€ 736,128

Year 6Year 7

-€ 547

€ 867,567

-€ 382,917Vacancy

Year 5

€ 1,299,006 € 1,298,459Year 8

Year 4

Year 2-€ 3,150

Gross

€ 1,281,352

Market Value



€ 894,466

€ 781,316

12.33%per m²

€ 1,248,008

-€ 426,542-€ 418,601€ 0 -€ 411


€ 13,883,097

€ 1,000

€ 13,363,274-€ 438,444 -€ 3,719€ 1,334,340

Rent Overview



€ 13,363,274


per m²/month

€ 895,896

€ 584,742

-€ 7,552

-€ 28,041 € 0


-€ 387,166 € 906,971

Costs

€ 771,722

€ 889,936

Abatements

€ 796,803

-€ 2,207

-€ 415,467€ 878,312

-€ 13,477€ 0 € 832,541

€ 883,002

Year 3 € 1,297,287

€ 877,511€ 506,348-€ 9,273

-€ 400,512

€ 510,289

€ 1,258,529

Revenue€ 1,166,138

Turnover

Germany

€ 876,301

Revenue

€ 1,280,151 € 0

-€ 1,351 € 1,268,079

Rent

€ 0

€ 1,271,965-€ 21,622-€ 105,827 € 0Year 1

€ 1,291,033

€ 1,296,638

Year 11 € 1,341,658

€ 1,252,755

€ 9.74

-€ 1,126-€ 12,669

€ 1,339,621 -€ 15,040 -€ 1,469

€ 1,277,238-€ 11,922

-€ 48,630

€ 471,102

Yield Overview

€ 783,221

€ 882,357-€ 394,881

€ 1,280,796

91054 Erlangen

Cash Flow

Non-Total

-€ 2,253-€ 10,663

€ 0

€ 7,190,744

-€ 11,372 -€ 1,225-€ 10,218

Present

€ 537,805

€ 637,172

-€ 2,191

Leasing

01.02.2011

Matrix Portfolio

Value @

5.9%

6.6%6.8%

6.6% 6.5%6.3% 6.2%

6.6% 6.7% 6.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0

€ 1600000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



01.02.2011

abcPage 11 of 12

View of the entrance to the car park

View of the car park (leasehold)

Matrix Portfolio

View of the Kaufland and the adjacent parking level from the car park

91054 Erlangen

Photos

View of a vacant retail unit at the pedestrian passage

View of the commercial building from Hauptstraße


31.03.2013

View towards the pedestrian passage ("Altstadtmarktpassage")

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 8,478 m²Self-Service Department StoreHairdresser

8,450 m²

128 m²Pharmacy124 m²

0 m²80 m²Pharmacy

Real WürzburgLandshut

Halle0

Pharmacy

0Pharmacy

Hairdresser

0

Langgöns

0

0

€ 0

€ 13.48 /m²€ 1,453

€ 0.00 /m²

Total Rent p.m.

€ 720 € 9.00 /m² Other federal state€ 11.35 /m²

Slightly lower purchasing powerLocation is farther away from the city centre; lower purchasin

€ 1,672


Area


€ 65,705 € 7.75 /m²€ 61,685

€ 7.75 /m²€ 62,000

CommentSimilar purchasing power

Rent p. sqm€ 76,808 € 10.50 /m²

Other federal state; slightly lower purchasing power

91054 Erlangen

City


Leasing Comparables

7,315 m²

Leasing Market

Kaufland


31.03.2013Westliche Stadtmauerstraße 27

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

GeldernKaufland


8,000 m²


FreitalStraubing



Investment Market




Date of Transaction



01.02.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 3 11 to 15 years Macrolocation 3 Average location and catchment areaLettable Area 2 Between 7,500 and 10,000 m² Microlocation 4 Good micro locationProperty condition 4 Good building condition Commercial activity 3 Limited commercial activity nearbyGeneral impression 4 Good general impression Competition 2 High competition level

Investment Quality

WALT 4 WALT seven to ten years Investment market 3 Average property marketOver- / underrent 5 Significantly underrented (more than -15%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

Limited third party usability of the large-scale retail area without refurbishment

31.03.2013


Key Figures

Gartenstraße 30

n.a.


Building

Liquidity

Valuation Results

Location


7.70%

Discount Rate

7.70%

excluding capital

expenditures6.50%



7.6 years

0

Strong and well-known anchor tenant

Located near the city center adjacent to the pedestrian area



€ 5.02

2002


73312 Geislingen

Property Summary

Retail Park

Germany

03.02.2011

Property type


Kaufland Warenhandel Südwest GmbH & Co. KG


0.5%

Main tenant


-20.2%

€ 654,010

€ 565,281



Strengths


One vacant retail area

Difficult relettability of the fitness studioReletting of the main retail area on market level Increased vacancy of ancilliary areas due to low turnovers of these tenants

0

0

€ 7.44 / m² / p.m.€ 9,100,000

7.25%

The property has four storeys. The ground level is occupied by several retail tenants, the largest being Kaufland. The first floor is a parking level, while the second floor is partly used for parking and accommodatespart of the fitness studio. The third floor is used by the fitness studio as well as a playground. The property has an elongated shape, with the long side facing the B10 federal road ("Gartenstraße"). The property is a steel-reinforced concrete construction with precast elements. The facade is partly made of brick facing and partly of galvanised steel sheets. In the entrance areas, there are curtain walls with metalframes. The roof is flat with hard covering.

0

5.83%

Market Rental Value

13.91

€ 838,192 p.a.

High level of competition (another Kaufland nearby)Weaknesses

Matrix Portfolio

The retail unit let to Kaufland is strongly underrented

€ 969 per m²


Kaufland exercises its options until 2037

The property can be accessed on the ground floor from Gartenstraße as well as from the parking levels via several elevators.

equals toequals to

Market Value






0

€ 0.79

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






172.52

The nearest airport offering connections to national and international destinations is Stuttgart Airport,located in a distance of approx. 56 km from the city centre of Geislingen an der Steige.

Geislingen an der Steige is characterized by an industry that has evolved over time. The economy ismainly based on the processing of steel and metal as well as the automotive supply industry andtraditional beer brewing. Furthermore, Geislingen is also known for its university "Hochschule fürWirtschaft und Umwelt Nürtingen-Geislingen", offering business and real estate courses. Well-knowncompanies based in Geislingen include Württembergische Metallwarenfabrik (WMF), ULOFahrzeugleuchten (Odelo GmbH), Adlerbrauerei Karl Götz and Schlötter Galvanotechnik.

Micro Location

Geislingen an der Steige is located in the east of Baden-Wuerttemberg, approx. 25 km from the borderto the federal state Bavaria. The city is a minor secondary centre with approx. 27,000 inhabitants. Theclosest major cities are Ulm (approx. 25 km south-east; 122,000 inhabitants) and Stuttgart (approx. 50km west; 602,000 inhabitants).The closest motorways are the A8 (Perl - Bad Reichenhall), connecting to Salzburg (Austria) in thesouth-east, and the A7 (Flensburg - Füssen), leading to Denmark in the north and Austria in the south.The motorways can be reached within 18 km and 25 km, respectively.Geislingen has a train station, which connects Geislingen to the cities of Stuttgart and Ulm via regionaltrains. The closest train station offering connections to the high-speed ICE train network is Ulm in adistance of approx. 25 km.

0

Location


31.03.2013

73312 Geislingen 03.02.2011

Göppingen (Rural District)

Germany

Baden-Wurttemberg



4.2%

5,473

Geislingen Macro Location

5.0

Micro Location

395

The self-service department store is located in the southern part of Geislingen an der Steige, near thecity centre. The subject property is situated adjacent to the pedestrian zone of Geislingen along a highlyfrequented traffic axis (federal road B10 "Gartenstraße"). The property is bordered by Römerstraße tothe south, Bleichstraße to the west and Bismarckstraße to the north. The surrounding area ischaracterized by residential housing with some commercial usage.


-1.1%

106.6897.19

-2.9%

522

4.6%

Structual Data

abc


26,823

73312

354392

10,744,921252,002

Geislingen

0.8%

11,532

Postcode

Page 2 of 12

Matrix Portfolio

Germany

Gartenstraße 30

City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Gartenstraße 30 31.03.2013

03.02.2011

Germany


According to information from the local planning authority, a legally binding project and developmentplan exists, entitled "20/1/2 Marktgalerie" and dated 01.04.1999, with the following regulations: thesubject site is located in core zone (limitations regarding the use) - "Kerngebiet mit Einschränkung". Theplot ratio (Geschossflächenzahl, GFZ) is 2.0 and the site coverage ratio (Grundflächenzahl, GRZ) is 1.0.


TPL Geislingen S.á.r.l., Luxembourg

Land Register

10534 341

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan



Matrix Portfolio

73312 Geislingen

MK (core zone)

n.a.

NO 1051

Sheet Plot Parcel

2.0

Tenure

Site servicing


0 m²

1.0

Town Planning

Fully serviced


Irregular

According to the Environmental Due Diligence Report, dated July 2007, the site has been industriallyused since 1850 by "Maschinenfabrik Geislingen (MAG)", whose activities included chemical andmechanical metal working and foundries. From this use stems severe subsoil and ground watercontamination caused by petrol, oil, lubricants and further chemicals. The site has been graduallyremediated from 1989 until 1999 and the soil remediation is considered as finished according to theLandratsamt Göppingen. However, other sources suggest that there is still contaminated soil beneaththe property and it is likely that the site is listed in the contaminated land cadastre as remediated withresidual contamination. For the purposes of this valuation, we have assumed that the subject property isfree of any soil or building contamination.

Two land charges concerning the payment of a money amount payable to the respective owner of parcel no 489/11 and several limited personal easements, among other things regarding the construction, operation and maintenance of a transformer station, pipline easement, wayleave in favor of the city Geislingen an der Steige and Albwerk GmbH & Co. KG, Geislingen. Furthermore, there is a limited personal easement (the right to operate and maintain a hypermarket) in favor of Kaufland Dienstleistungs GmbH & Co. KG, Neckarsulm.



Local Court of Geislingen an der Steige, land register of Geislingen an der Steige

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



172.52

-2.9%

abc


73312 Geislingen

Name73312 Geislingen, Heidenheimer Str. 139

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress



Page 4 of 12



12,515

Medium

00

High2.40 km




18,010

11,532

E-aktiv Markt Gebauer's


73312 Geislingen, Neuwiesenstr. 25

73079 Süßen, Bühlstr. 23

E-aktiv Markt StaufersRewe

73072 Donzdorf, Wagnerstr. 3

E-aktiv Markt Gebauer's

Kaufland

73072 Donzdorf, Mozartstr. 35

Self-service dep. store 7,500 m²1,590 m² 8.30 km Low


18,626

97.19

37,545


00

0


0


Gartenstraße 30

03.02.2011


31.03.2013

LowLow

0

0

0

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


03.02.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a smaller-sized Edeka hypermarket. Furthermore, Dänisches Bettenlager and Fressnapf are also located on the site. It is built as a retail warehouse agglomeration instead of a retail park with a mall and offers a different product and service variety than the subject property and therefore caters to different needs. It represents medium competition.

Main competitors

73312 Geislingen

Gartenstraße 30

and IMO (carwash). Nearby retailers in the commercial zone are OBI, Aldi and Lidl. The tenant mix within the property is very similar to the tenant mix in the subject property and therefore the property presents high competition potential. Even though the properties may attract different customers and have slightly different primary catchment areas, the catchment areas strongly overlap; two Kaufland self-service department stores for a city of only 27,000 inhabitants can be problematic. Another potential competitor is the small retail park with 13,000 m², that is currently being build in the city centre on the former sports field. Part of the area is let to REWE and Lidl. However, it remains to be seen whether it will have an effect on the turnover of Kaufland, because they usually address different customers.

The rents in a functional retail agglomeration are linked to turnover. The percentage rate that a retail tenant can use for rental payments (turnover-to-rent ratio) depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective branch. The productivity varies between approx. € 1,000/m² and up to more than € 10,000/m².Kaufland is represents a very strong anchor, we believe that there will always be demand for such ancillary tenants. For Kaufland, we have also been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Considering the location factors and the competition level within Geislingen, we assume that a higher turnover-to-rent ratio regarding a similar branch and turnover is realistic. Hence, the market rent after the termination of the current rental contract has been chosen in a range of 2.2%. Please also refer to the rent/turnover analysis on page 8. Even though turnover rents have been negotiated with some of the tenants,

abc

Competition Comment

The catchment area can be differentiated into primary (0 - 5min driving time); secondary (5 - 10min) and tertiary (10 - 15min) catchment area. Approximately 18,626 inhabitants live in the primary catchment area. While the density of hypermarkets is relatively high in the primary catchment area, the competition eases in the secondary and tertiary catchment area.Even though there are several discounters and small-size supermarkets located nearby, it can be said that these present only indirect competition to the property. Kaufland offers a very deep and broad product range with more than 50,000 products, while supermarkets and discounters generally offer a limited product range with only 7,000 to 11,000 (supermarkets) or 400-2,500 (discounters) articles. Therefore, these retailing forms address different customers or customer needs. While supermarkets and discounters cater to the daily needs of customers, Kaufland offers more variety for products that are bought on a non-daily basis. The first competitor is a small retail warehouse agglomeration located on Heidenheimer Straße in a distance of approx. 1.7 km. The main tenant is a Edeka hypermarket. Other tenants on the site a Fressnapf and Dänisches Bettenlager. Furthermore, Edeka offers a small mall with additional businesses such as the bakery “K&U”, a newspaper agent and a cash machine. The location of the property within a commercial agglomeration is inferior to the location of the subject property near the city centre along a highly frequented street. While the competitor is solely reachable by car, the subject property can also be reached by foot from the adjacent residential area. Furthermore, the tenant mix is different. While both offer the typical service providers, the Edeka-Center also has Fressnapf and a Dänisches Bettenlager, both tenants that are prone to returning customers, whereas Kaufland is bound to receive more impulse buyers due to its location in the city centre. In addition, the large difference in size and product range also differentiates both properties. Therefore, it can be said that the Edeka market only represents medium competition. A second Kaufland was opened in January 2010 after the take-over of the former Schlekkerland (self-service department store) is in an industrial zone on the south-western outskirts of Geislingen. Other tenants in the property include a Kik, Tedi, Klier, Quickschuh, a tobacco shop

the necessary turnovers for the turnover rents to become effective have not been reached in the past few years. The tenants only pay the minimum rent. We therefore haven't included any additional turnover rents.

Even though the competition is quite strong and the density of self-service department store is very high for a town this size, we have not been informed of severe turnover decreases after the second Kaufland on Neuwiesenstraße was launched. We believe that the tenant will be able to compete with this property, especially because it can operate on a very low contractual rent for a long time. The anchor tenant Kaufland has a lease contract until 2022 with three options, each for five years, bringing the earliest possible termination date for the landlord to 2037. On the basis of our projection of likely productivity per m² and turnovers, we have calculated the market rent at € 8.25/m²/month. The tenant currently pays a contractual rent of € 5.47/m²/p.m. Therefore, the retail unit is currently strongly underrented. Due to the margins realizable and under the assumption of good turnover figures, we believe that Kaufland will remain in the property until 2037. In the unlikely case that Kaufland should vacate the premises, the property could be relet to other self-service department stores which are currently not present in Geislingen an der Steige such as real or Marktkauf.

The subject property is a modern self-service department store with a small mall accommodating additional businesses, such as a hair dresser, locksmith and newspaper kiosk. The property has sufficient parking spaces and is highly visible and easily accessible by foot and by car. The location of the property close to the city centre entails additional benefits.As Kaufland is a strong customer magnet, we believe that there will always be sufficient demand for the minor retail areas in the mall. The letting of the current fitness studio, however, is assessed to be more difficult. Even though the location of the property near the city centre and near a residential area is very good for the current use, the third-party usability of the areas is limited. One alternative use would be the letting of the space as office space. However, this would involve extensive refurbishment and restructuring measures. Furthermore, the location is not a traditional office location and the demand for such an area is limited. However, we believe that it is very probable that the fitness studio will remain within the property on an adequate market rental level. The rental area of Kaufland can be regarded as relatively unproblematic. First of all, the location is very good for such a tenant, as it can be reached both by foot and by car. Furthermore, the property is highly visible and easily accessible.


This competitor is a small retail park located on the south-western outskirts of Geislingen. The main tenant is a Kaufland. Other tenants include a Kik, Tedi and Quickschuh. This building is well-located in a small industrial zone. Nearby retailers include Obi, Aldi and Lidl. The property is a serious competitor.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Vacant

44.48

€ 6,000

Other Units10 ING-DiBa AG Niederlassung Hannover


vacant

Page 6 of 12

30.09.2022

6

External parking

5 Kaufland Warenhandel Südwest GmbH & Co. KG

3 In Shape-Sports Club GmbH

57

5.47

5.42

Retail 14.02

1.69

2 Bäckerei Staib GmbH & Co. KG Retail

pays VAT

02.09.2018

31.12.2013

0%

75%

Start

75%

31.03.2013Gartenstraße 30

Tenant

Matrix Portfolio

03.02.2011


TenantLeaseArea

Let

Let

31.08.2022Yes

03.04.2002

Yes


1 ROFU Kinderland Spielhandels GmbH Retail 1,107

/ month Probability

1

9 Frisör Klier GmbH Retail

Let

Other Units

8 Deichmann SE

14 Vacant

6 Mutlu

15.08.2012

03.09.2008

Yes

GT I PM

75%

Retail

Yes

€ 27,687

GT I PM

4 Metzgerei Chiacci/Reinhard

Retail 2,487

60

Let

Retail

5,065

10.04.2007

26.27

€ 2,669

€ 4,200

Let

Let Yes

GT I PM

73312 Geislingen

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 54,501

12

Let

Vacant

73Let

€ 205 02.04.2013

€ 715

01.10.2007

02.08.2014

15.10.2012 31.08.2013

€ 265 03.08.2009

30.09.2022 0%

75%

02.04.201703.04.2002

GT I PM

75%

GT I PM

Yes

Yes

GT I PM

GT I PM

abc

GT I PM

75%

9,390 m²

75%

75%

GT I PM30.09.2022

03.04.2002

03.04.2008

28.02.2017

75%

205.00

58.77

0.00

Yes

Yes

0.00

44.17

Yes

GT I PM

479 € 5,955

€ 050

12.44

31.03.2013

€ 800

75%

Total

1Vacant

vacant

€ 1,924

LetRetail

13 Vacant External parking

15 Mall Income

12 Vacant External parking 1 € 0

0.00

1 € 0 0.00

€ 0

Other Units 1 € 81 Yes 00.01.1900Let 81.11

16 Parking Internal Parking 448 € 4,000Let 8.93

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

03.02.2011



Tis15



€ 41,786

abc

15 0

€ 0

75%

12 0 0 0 0 0%

0 0 10

75%

0 0 3 75%

0 0 3

0 0

0 0 39

100

75%

€ 100

75%

75%

10 75%12

0

9

12 9

€ 0

75%

0

0

10

3

10

12

0 12

0

75%

12

6 10

3 6

3

0

75%

0

3

10

75%

75%

3

0

75%

10

75%

3 10

10

75%

3

12€ 100 9

12 103

0 10

Total

13 Vacant

€ 100

€ 100

€ 0

€ 0

1

€ 100

€ 0

9 14 Vacant External parking

16 Parking

Other Units15 Mall Income

Page 7 of 12

€ 69,8499,390 sqm

Term**

Matrix Portfolio

Re-letting

€ 1,500

€ 487

€ 44.17

1

1

1

€ 50

Retail

€ 30.00

€ 30

6 Mutlu

€ 30.00

7 Vacant

Other Units

Other Units

External parking

Retail

8 Deichmann SE Retail

1,107

3 In Shape-Sports Club GmbH Retail

Retail

2 Bäckerei Staib GmbH & Co. KG

1 ROFU Kinderland Spielhandels GmbH

50


12 Vacant

10 ING-DiBa AG Niederlassung Hannover


External parking

Internal Parking

60 € 65.00

Market

12

6 0

0

3

15 0


€ 25.00

€ 4,353

€ 1,427

479

€ 7.25

2,487

Rent

€ 8.25

€ 0

€ 0

12

€ 30

€ 0

€ 5,981

€ 1,831

€ 0.00

€ 0.00

€ 265

€ 205.00

€ 30.00

€ 25.00

1

448

4 Metzgerei Chiacci/Reinhard Retail 57

5 Kaufland Warenhandel Südwest GmbH & Co. KG 5,065 Retail

12

6

€ 3,900

15

€ 0

€ 12.50

€ 1.75

€ 205

12

12

€ 40.00

€ 30.00

0

Market

€ 100

73312 Geislingen

Retail

sqm/unitTenant Name

Retail € 100

€ 50

Gartenstraße 30

Area Category

73

€ 30


12

15

12

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

2AA284


0.00

0.00

7.43

0.000.000.00

610,436

0.00

0.00%

Rented€/year

00

0.0%

0.0%

30.00

€/month €/year0

0.00

9,340

00

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

9,340

73312 Geislingen

00

m²Use Category

Rent RentMarketRent


-27.5%831,4720.00

0

09,390

Market

0603,823

€/month

DIY

Office

0

0

0

069,289

0.53%

7.38

3

0€/m²/month

459External parking

Rent

3

ContractualRent

€/year

0.00%8

0.00%

0.00%0

500

0.00%

Matrix Portfolio

Gartenstraße 30 31.03.2013

0

00Commercial

0

Contractual

3

0448

Potential

Area Vacant

448

€/m²/monthRent

0.65%0

Rent

0100.00%


Use Category

Germany

03.02.2011

Capital indicator

€ 145.000 (single); €4,150,000 (total)


Comment


21,116,431 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland. According toDun & Bradstreet (D&B) Rating as at 01.01.2011 Kaufland Warenhandel Südwest GmbH & Co. KG hasan below-average credit risk. The risk of insolvency (D&B Score) within the next 12 months comparedwith other German companies is assessed to be low, i.e. 84% of businesses on the German databasehave the same or higher risk of failure.

Rent p.a.

5,065 m²


1.6%

2.4%

5.47

8.25

abc

Risk indicatorScore

Page 8 of 12

Credit limit

1,080

17.3%-27.2%

5,64047069,759

58.75837,112

-100.0%0.0%0

0.0%

0

0

0

0.0%00.0%

90

13.90

10.42

1,080

51%

0

Kaufland Warenhandel Südwest GmbH & Co. KG

9.5 years

~ 4,200 m²

4,000 48,0000


Main tenant

€ 332,243


Tenant name

6.95

Storage00

Petrol Station 0.00


5.4168.89


00

0 00

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

49,95000.00

5.35

Warehouse

Warehouse

Area Let

9,390

Other Units

050

Residential00

0

48,000

0.53%

Contractual


0

599,397

Retail

0.00


4488

Income Analysis

Internal parking

Office

DIYRetail

Storage

50,5016,613

606,010

0 0

6,613

0

551

0.00

0.000.00


External parking

Total parking

€ / m²

5.47

6.95

8.25

10.42

13.90

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

15.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

5,028

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is let to seven retail tenants and a fitness studio. The WALT of the property amounts to 7.6 years. The main tenant is Kaufland with a share of approx. 51% of the rental income. The property iscurrently heavily underrented due to the very low rental level of the main tenant, Kaufland. As the lease contract is valid until 2022 and the tenant has options until 2037, we do not believe that the rental level can beadjusted before 2037. Kaufland’s rent is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relation to the CPI basis. Indexation started on 01.04.2009. Themajority of the tenants pay all costs (including ground tax, insurance costs and management costs) except for maintenance costs for structural repairs. Ground tax, maintenance costs for structural repairs,management and insurance costs will not be borne by Kaufland. The rest can be apportioned to the tenant in accordance with the German Regulation on Operating Costs.

0 €

0 €

€ 4,339€ 36,245

€ 4,408


€ 0

13.1%

6.46%

% of Gross

€ 10.00 /m²/p.a.

€ 9,07313.8%

0 €

€ 4,203 0 €0 €€ 4,137

0 €€ 4,067

13.5%€ 467

€ 33,915 12.9%12.9%€ 0

€ 32,909

€ 0

0 €

€ 0.00 /m²

Management costs


€ 9.45 /m²

€ 10,525€ 3,995

€ 33,370

5.04%



€ 93,872€ 92,357€ 90,817

€ 65

€ 1.04 /m²

% of Gross

0.00%

€ 9,810

€ 12,573


per year


€ 4.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 7.25%

6.50%


Gartenstraße 30

Assumptions

Even though the average area productivity is very low for the ancillary tenants, we are not aware of any tenants planning to terminate their leases in the subject property, nor have we received any informationregarding a prolongation of their leases. Furthermore, some rental increases due to indexations have taken place. The working hours and tariff for parking have been raised. This results in an increase of parkingfees from €13,081 to €48,000 p.a.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the stable Cash Flow, the long lease contract with the tenant Kaufland, the newcontract with ROFU, the increase in vacancy, the reported turnover figures, the good location and thegood condition of the subject property.

03.02.201173312 Geislingen

Germany

31.03.2013

€ 0.41 /m²€ 0

0.59%€ 32,799€ 3.49 /m²

€ 0.00 /m²€ 3,864

per year

Year 8

€ 34,519€ 10,754

€ 47,445€ 46,696

€ 10,427

€ 43,693Year 3

€ 11,002

% of Total

Year 7

€ 3,877€ 9,958

€ 96,259

€ 89,608

€ 1,341

Total

€ 45,967 € 10,434



Other Non-

€ 010.92%

€ 0.41 /m² € 3,864

Insurance


3.91%

Market Rent

0.00%13.57%

1.50%€ 1.34 /m²€ 3.49 /m² € 32,799

€ 88,729

per year

€ 9.74 /m²


€ 91,492

€ 3,931


Gross Revenue

€ 10,862 € 37,999 0 €€ 12,138€ 49,681 € 38,562

Year 10€ 195

5.02%1.50%

Market Value

€ 48,208

Year 4

Year 6

€ 4,543

€ 10,919

Year 11€ 48,955

€ 37,419Year 9

GroundManagementTax

Maintanance

€ 10,749

CostsCosts

€ 44,472

Year 1Year 2

€ 42,397€ 42,991

€ 36,827

€ 45,239 € 35,115€ 35,680

Year 5

€ 11,249

13.0%

0 €€ 4,270

€ 105,11915.2%13.5%

0.46%

0 €

€ 8,066€ 4,477

€ 0

€ 0€ 110,359

€ 98,13013.6%

0 €

15.1%

€ 101,284

Year after 2021

€ 105,357

abc

€ 0 € 99,61313.5%

Page 9 of 12

Inflation

after 2021



Market

13.5%12.9% 12.9% 13.1%

13.8%

15.1%

13.5% 13.6% 13.5%

15.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







6.75%


€ 488,984€ 0

€ 0

€ 0

-€ 110,359


€ 9,700,000€ 654,010

€ 969

Page 10 of 12

7.19%

€ 577,871

€ 5.80 Total

Total € 9,100,000

5.83%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 01.01.2011, the main tenant, Kaufland Warenhandel Südwest GmbH & Co. KG, has goodcovenant strength, which ensures a secure cash flow for the remainder of the lease term until at least 2022. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance,condition and building age, third-party usability, competition situation and location.

-€ 9,503

abc

Valuation Comment

€ 838,192 per m²

-20.16%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. We have been provided with updatedinformation regarding necessary capital expenditures. All Capital expenditures for repairs in the first year as well as in the periods of year 2 to 5 and year 6 to 10 are considered to be covered by the maintenancecosts of € 4.50/m² per annum. Regarding comparable rents we have had recourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparabletransactions. Please refer to the section "Investment Comparables".

0

7.70%

Year 10 € 724,107€ 749,933

€ 0

€ 749,933Year 9

-€ 105,357

TIs and

-€ 90,817


€ 716,946 € 0

€ 0€ 0

€ 633,885

€ 590,242 -€ 69,795 € 515,618

Income

-€ 6,294

€ 0€ 0 € 624,589

€ 622,704

Net

31.03.2013


€ 557,024€ 551,719€ 539,538

Year 6Year 7

-€ 306

€ 598,872

-€ 89,608Vacancy

Year 5

€ 733,804 € 733,498Year 8

Year 4

Year 2€ 0

Gross

€ 716,615

Market Value


Gartenstraße 30

€ 648,649

€ 629,835

9.21%per m²

€ 727,965

-€ 101,284-€ 99,613€ 0 € 0


€ 10,964,911

€ 1,033

€ 9,747,876-€ 105,119 -€ 2,051€ 809,197

Rent Overview



€ 9,747,876


per m²/month

€ 704,078

€ 353,125

-€ 8,966

-€ 22,392 -€ 3,593


-€ 92,357 € 624,589

Costs

€ 525,935

€ 613,748

Abatements

€ 610,876

-€ 16,752

-€ 98,130€ 633,885

€ 0€ 0 € 629,835

€ 648,649

Year 3 € 716,946

€ 551,793€ 358,917€ 0

-€ 96,259

€ 400,846

€ 701,693

Revenue€ 663,848

Turnover

Germany

€ 610,876

Revenue

€ 701,693 € 0

€ 0 € 695,131

Rent

€ 0

€ 685,758€ 0

-€ 21,910 € 0Year 1

€ 718,533

€ 727,965

Year 11 € 818,700

€ 695,599

€ 7.44

€ 0-€ 1,957

€ 800,977 -€ 76,870 € 0

€ 716,576-€ 21,484

€ 0

€ 284,872

Yield Overview

€ 574,240

€ 622,704-€ 93,872

€ 721,584

73312 Geislingen

Cash Flow

Non-Total

-€ 4,829-€ 14,707

€ 0

€ 5,445,429

€ 0 € 0-€ 45,203

Present

€ 376,146

€ 422,365

€ 0

Leasing

03.02.2011

Matrix Portfolio

Value @

5.9% 6.3%6.4% 6.4%

6.1% 6.1%

6.5% 6.5%6.7%

6.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

€ .0

€ 100000.0

€ 200000.0

€ 300000.0

€ 400000.0

€ 500000.0

€ 600000.0

€ 700000.0

€ 800000.0

€ 900000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:


Gartenstraße 30

03.02.2011

abcPage 11 of 12

View of the parking level

Front view of the property

Matrix Portfolio

Internal view of the sales areas of the tenant Kaufland

73312 Geislingen

Photos

Entrance to the fitness studio from parking level 2

Internal view of the sales area of the tenant Deichmann


31.03.2013

View of the mall

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 5,956 m²Shoe StoreShoe Store

449 m²

66 m²Bakery495 m²

2,430 m²50 m²Bakery

Deichmann WiesbadenRödermark

BerlinFitness Studio

Bäckerei

BremenBäckerei

Deichmann

Fitness Company

Aschaffenburg

Worse location

Comparable purchasing power; worse location

€ 3,013

€ 10.83 /m²€ 3,854

€ 1.24 /m²

Total Rent p.m.

€ 3,000 € 60.00 /m² Lower purchasing power€ 58.40 /m²

Other federal stateHigher purchasing power; smaller retail area

€ 5,361


Area

Bigger retail area; lower purchasing power€ 13.31 /m²

€ 44,730 € 7.51 /m²€ 5,972

€ 7.75 /m²€ 35,732

CommentOther federal state; slightly lower purchasing power

Rent p. sqm€ 62,000 € 7.75 /m²

Lower purchasing power; worse location

73312 Geislingen

City


Leasing Comparables

8,000 m²

Leasing Market

Kaufland


31.03.2013Gartenstraße 30

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

BergkamenKaufland


4,611 m²


LüneburgFreital



Investment Market




Date of Transaction



03.02.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 2 16 to 25 years Macrolocation 2 Below average location and catchment areaLettable Area 4 Between 12,500 and 15,000 m² Microlocation 3 Average micro locationProperty condition 2 Below average building condition Commercial activity 3 Limited commercial activity nearbyGeneral impression 3 Average general impression Competition 2 High competition level

Investment Quality

WALT 4 WALT seven to ten years Investment market 2 Under developed property marketOver- / underrent 3 Rack rented (-5% to 5%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis


31.03.2013


Key Figures

Waldenburger Straße F175

n.a.


Building

Liquidity

Valuation Results

Location


6.62%

Discount Rate

6.62%

excluding capital

expenditures7.25%



7.6 years

0

Good tenant mix

Sufficient parking

Located next to a motorway exit and a federal road


€ 7.74

1992


08371 Glauchau

Property Summary

Retail Park

Germany

01.02.2011

Property type


Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG


0.1%

Main tenant


4.5%

€ 1,301,918

€ 1,186,091



Strengths

Good accessibility by car

0

Re-letting or negotiations concerning the prolongation of existing contracts may result in worse 0 Significant negative population growth

Below-average purchasing power

0

€ 8.14 / m² / p.m.€ 16,300,000

7.25%

The site encompasses the subject retail park, a petrol station as well as some food stalls located in front of the main entrance. The property was constructed in 1992 and encompasses a self-service departmentstore (Kaufland), an Aldi food discounter, a medimax (consumer electronics) and various smaller retailers. The property is rectangular-shaped with the north-western corner being cut out. The property mostly has asingle storey; however, on the eastern side, there is second storey accommodating offices of the main tenant. The unit let by the tenant Aldi has its own entrance located at the south-east of the subject property withno access to the mall.The property is built out of prefabricated columns and beams on a reinforced concrete slab. The supporting structure of the flat roof consists of trapezoidal metal panels.

0

6.94%

Market Rental Value

12.52

€ 1,246,923 p.a.

High level of competition (another Kaufland nearby)Weaknesses

Matrix Portfolio

0

€ 1,277 per m²


0

The facade of the property is made from multi-layer concrete panels. Main entrance, office windows and shop displays have coated aluminium frames. The walls within the public areas are plastered and painted.The ceiling inside the mall is suspended with a grid system still allowing the technical installations above to be seen. The smaller shop units usually have a suspended ceiling while the large retail unit of Kaufland alltechnical installations are viewable. The floor is mainly covered with ceramic tiles, while the fit out of the smaller shop units depends on the tenant’s preferences. In terms of HVAC, the property offers gas-operatedheating and ventilation, but only partial air conditioning. The parking area is made of asphalt in the driveways and paving stones for the parking areas.

equals toequals to

Market Value






Limited investor focus on properties in eastern Germany

€ 0.76

Property is currently let sligthly over market rental level (over-rented)0

(Copy)


Valuation date:

Inspection date:

Prepared for:






140.79

The closest airport is Leipzig-Altenburg, which is situated 20 km north of Glachau. Destinations to bereached from Leipzig airport are nationally, larger German cities in the west and south of Germany andinternationally, Brussels, Prague, Paris and Vienna. Furthermore, Leipzig offers service to plenty oftourist destinations, such as Spain, Greece and North Africa. Glauchau is home to severalmanufacturing companies in the field of textiles and car parts. Particularly the latter sector benefits fromthe manufacturing site of Volkswagen in Zwickau-Mosel only a couple of kilometres away. Additionally,Glauchau benefits from its location next to a motorway.

Micro Location

The city of Glauchau is located in the federal state of Saxony. Glauchau is situated between the citiesGera to the west (approx. 35 km) and Chemnitz to the east (approx. 30 km). Glauchau is located next tothe motorway A4, which runs from the east of Hesse to the Polish border, passing by cities such asErfurt, Chemnitz and Dresden. Furthermore, the federal roads B175 and B93 cross Glauchau,connecting the city from north and south.

Glauchau has a railway station with service to Dresden, Hof, Nuremberg and Zwickau, connecting thecity to the long-distance network of Deutsche Bahn.

Location


31.03.2013

08371 Glauchau 01.02.2011

Zwickau (Rural District)

Germany

Saxony



10.8%

5,738

Glauchau Macro Location

3.5

Micro Location

490

The property is situated approx. 2.5 km north of the city centre of Glauchau in the sub-district of Jerisau.The property is located very close to a motorway exit (A4) and the federal road B175, connecting the cityin all directions. The property is visible from both roads. It can be accessed from Ludwig-Erhard-Straßein the north and Waldenburger Straße in the east, surrounding the property to the west, north, and east.To the south of the property, there is a Greenfield site. The neighbourhood of the property ispredominantly characterised by commercial buildings, such as car dealerships, a fast food restaurant,and fields. Furthermore, there is a petrol station on the site.There is a bus stop in front of the site with frequent service from Glauchau to a couple of villages andtown to the north and east of the property.


-4.9%

83.6088.41

-15.0%

399

8.4%

Structual Data

abc


24,234

08371

471356

4,168,732338,272

Glauchau

-3.0%

12,631

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)

Source: Land register extracts, dated 2nd December 2010


Soil contamination

Section 3 (Loans)

Waldenburger Straße F175 31.03.2013

01.02.2011

Germany

No Suspicion

According to information from the local planning authority's website, a legally binding development planexists, entitled "Einkaufszentrum Glauchau Waldenburgerstr." with the following regulations: the subjectsite is located in a special retail zone (Sondergebiet Einkaufszentrum). It imposes the followingrestrictions, among others: approx. 13,000 m² of retail space is permissible, of which a maximum of5,500 m² can be used for food retailing, 6,400 m² for non-food retailing, and 3,200 m² for ancillaryrooms. Additionally, up to 2,000 m² of office space is permissible.


TPL Glauchau S.á.r.l, Luxembourg

Land Register

517785994303

Sheet 5177: 220/3, 217/4, 213/3, 213/4, 232/9, 220/5,

220/6, 219/11; Sheet 8599:

219/6; Sheet 4303: 219/7

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan



Matrix Portfolio

08371 Glauchau

SO (special zone)

n.a.

n.a.

n.a.n.a.

Sheet Plot Parcel

n.a.

Tenure

Site servicing


0 m²

n.a.

Town Planning

Fully serviced


Irregular

The site consists of ten different plots and encompasses a total of 47,878 m². The site is not listed in theregister of contaminated land ("Altlastenkataster") and the environmental DD, dated 2nd May 1991prepared by Institut Fresenius GmbH, did not identify any contamination of the site. In terms of easements, all plots have an easement registered in favour of Kaufland to operate its store.This represents a common practice so that we do not attribute any effect on value to it. Furthermore,three other easements secure the right to build an underground water pipe on some of the plots. Again,we do not believe that this will influence the market value of the property.For the purposes of this valuation, we have assumed that the subject property is free of any soil orbuilding contamination.

Sheet 5177:Easement (pipeline installation and use as storage space) for the respective owner of the parcels 220, 219/4 and 219/5 (Jerisau district);Comprehensive right of use to operate a supermarket/self-service department for Kaufland Dienstleistung GmbH & Co. KG, Neckarsulm; Freshwater pipeline easement for Regionaler Zweckverband Wasserversorgung Bereich Lugau-Glauchau, Glauchau; Sheet 8599 and 4303:Comprehensive right to operate a supermarket/self-service department for Kaufland Dienstleistung GmbH & Co. KG, Neckarsulm


Joint liability of the plots entered in sheet 5177, 8599 and 4303: Land charge in the amount of € 19,884,802 in favour of Bank of Scotland, branch in Frankfurt, Frankfurt am MainSheet 8599:

Local Court of Hohenstein-Ernstthal, land register of Glauchau

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



140.79

-15.0%

abc


08371 Glauchau

Name08371 Glauchau, Rudolf-Breitscheid-Str. 10-14

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress



Page 4 of 12



11,051

Medium

00

High3.00 km




19,794

12,631

Simmel

138,555

3,525 m² m²


9.70 km08451 Crimmitschau, Harthauer Weg 1 Hypermarket

08371 Glauchau, Grenayer Str. 10

09350 Lichtenstein, Platanenstr. 4

SimmelKaufland

08393 Meerane, August-Bebel-Str. 65

Simmel

Kaufland

08393 Meerane, Seiferitzer Allee 1



Kaufland

26,058

0

88.41

55,254


00

0


0



01.02.2011


31.03.2013

LowLow

0

0

Low

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


01.02.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a retail park located at the western outskirts of Glauchau, only 3 km away from the subject property. It comprises a Kaufland, a toom DIY, a large-scale drinks cash-and-carry, a Reno shoe market, a tedi, a petrol station and various smaller retailers. Due to the proximity and similarity of the tenant mix, we assess the competition level to be high.

Main competitors

08371 Glauchau


Moreover, Kaufland II does not have a food discounter, which usually attracts many customers who go shopping in hypermarkets for the goods they cannot buy in food discounters. Furthermore, when considering the inner and outer appearance of the shops, they are both almost on the same level as the subject property. Taking the catchment area into account, Kaufland has no competition in its primary catchment area, though it overlaps with other competitors. Considering the total catchment area (up to 15 min driving distance) and the number of competitors in this area, nearly 20,000 inhabitants are allotted per store, which is a very good figure. Particularly to the north of the property, there are no competitors and this area is connected via a major federal road. Therefore, we believe that there is enough customer potential for Kaufland.

The rents in a functional retail agglomeration are linked to turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective industry. The productivity varies between approx. € 1,000/m² and up to more than € 10,000/m².For the previous valuation we have been provided with turnover figures from the tenant Kaufland. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store.

abc

Competition Comment

Concerning food competitors, there is the aforementioned retail park anchored by Kaufland (named Kaufland II in the following) and toom DIY at the western outskirts of Glauchau and the E-Center Simmel located within Glauchau. Of these two and the Kaufland in the subject property, the latter one has the largest sales area with more than 7,000 m². Its competitors only have approx. 4,200 m² (Kaufland II) and 2,300 m² (E-Center) of space. On the other hand, the Kaufland II is part of a larger retail agglomeration with a toom DIY, a large-scale drinks cash-and-carry, a Reno shoe market, a tedi, a petrol station and various smaller retailers. Furthermore, a petrol station is next to the agglomeration. The E-Center is part of a smaller retail agglomeration with a couple of smaller retailers, predominantly from the region. Generally, shop units are smaller within this agglomeration compared to the properties in which the Kauflands are located in.

However, the E-Center is only an indirect competitor to Kaufland, since the sales area is significantly smaller. Furthermore, Kaufland offers a very deep and broad product range with more than 50,000 products, while discounters and supermarkets offer a limited product range with only 7,000 to 11,000 (supermarkets) or 400-2,500 (discounters) articles. Therefore, these retailing forms address different customers or customer needs. While supermarkets and discounters cater to the daily needs of customers, Kaufland offers a larger variety of products that are bought on a non-daily basis.Thus, the only very strong competitor is Kaufland II. In terms of location, Kaufland II benefits from its location next to the B175, which leads out of Glauchau to Zwickau and to the Volkswagen manufacturing site close by. However, the accessibility of the site is below average and the visibility from the road from a distance is below average. Additionally, the different larger shops are not connected to each other via a mall as in the subject property. This means that customers have to walk through the parking lot to get to the next shop.

Hence, we believe that a higher market rent is achievable after the end of the lease contract. Though turnover is low, the turnover-rent ratio is in an acceptable range. Nevertheless, we consider the rents paid in the property to be at the upper end of the range of acceptable ratios. On the other hand, the rents paid are considered to be generally sustainable.With regards to the turnover rents, apart from some exceptions, we believe that there will be no significant and sustainable increases in turnover. Thus, in the valuation we considered only turnover rents when the level of turnover was sustainable over a long period of time.

The tenants within the property, apart from the food stalls, suffer from below average turnover, likely because of the low purchasing power in the region. Nevertheless, based on the turnover data made available to us, we believe that the total rental income is sustainable. The property is nearly fully let and achieves an average contractual rent of € 8.68/m² for the retail areas. Furthermore, the weighted average lease term is 8.1 years with the anchor tenant having a remaining lease term of more than 10 years.

All in all, the property has an adequate tenant mix and is let on a sustainable level. Nevertheless, the strong competition and economic situation in the region does not leave much room for rental growth potential.

The subject property is a retail park located in the northern outskirts of Glauchau at an arterial road, close to a motorway exit. It offers good visibility and accessibility by car. The property is anchored by a Kaufland and comprises other nation-wide operating retailers such as Aldi, medimax, Deichmann, Apollo Optik, AWG, mister+lady and some local retailers. The tenant mix within the property predominantly focuses on price-conscious customers and offers products ranging from daily needs to fashion and services, such as a dry cleaner, a locksmith, and jeweller. This tenant mix fits into the general economic environment of the region.On the other hand, the tenant mix is quite similar to that of the strongest competitor (Kaufland II). Nevertheless, the subject property benefits from the villages to the north, which act as additional customer potential and help sustain the market. Furthermore, the subject property benefits of the presence of Aldi within the property since food discounters usually attract a large number of people who could be potential customers at the other shops as well.


This medium-sized Edeka store is located within a small retail park with several small retailers such as NKD, a local shoe store and Pfennigpfeiffer (a discount store for non-food items, for example stationery and houseware).

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Röhner

44.37

€ 4,788

30 Vacant

Retail10 Deichmann SE

11 Fleischerei Richter GmbH

Let

Page 6 of 12

GT I PM

31.01.2013

82

Retail

Retail


3 mister*lady GmbH

78

27.61

27.36

Retail 31.21

6.36

2 Friedrich Retail

pays VAT

31.07.2016

30.09.2017

75%

75%

Start

75%

31.03.2013Waldenburger Straße F175

Tenant

Matrix Portfolio

01.02.2011


TenantLeaseArea

Let

Let

31.07.2028Yes

06.09.2007

Yes


1 BRL Center GmbH Retail 175

/ month Probability

435

9 Reiseland GmbH & Co. KG Retail

Let

Retail

8 Valora Retail Kiosk GmbH

14 Flora Passionata


01.08.2008

25.07.2000

Yes

GT I PM

75%

Retail

Yes

€ 815

GT I PM


Retail 336

13

Let

Retail

30

01.04.2008

24.50

€ 595

€ 2,136

Let

Let Yes

GT I PM

08371 Glauchau

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Storage

€ 108,493

29

Let

Let

67Let

€ 7,786 31.10.2014

€ 105

31.03.2015

01.04.2008

30.06.2022

01.03.2009 28.02.2019

€ 3,300 21.06.2008

01.10.2007

31.05.2016

30.09.2026

75%

01.04.2005

30.09.2026

00.01.1900

30.04.2013

31.01.2017

75%

0%

0%

75%

31.07.2016

75%

31.12.2016

75%

01.12.2010

GT I PM

75%

75%

75%

GT I PM

Yes

Yes

GT I PM

GT I PM

abc

GT I PM

75%

75%

75%

75%

75%

75%

13,903 m²

GT I PM

30.09.2026

0%

75%

75%

75%

75%

14.03.2016

75%

75%

75%

GT I PM30.09.2015

75%

01.11.2015

30.09.2026

GT I PM

GT I 28.02.2017

GT I PM07.05.2014

15.12.2012

02.11.2005

13.10.1992

01.05.2008

75%

31.12.2017

75%

75%No

17.90

3.58

13.67

Yes

Yes

12.47

40.34

Yes

Yes

GT I PM

29 € 732

€ 99173

25.30

31.01.2013

€ 2,440

GT I PM75%

Total

660Let

29 Apache-Jeans Retail 150

31 Kurzzeitmieter

Let

€ 1,635

LetRetail

13 Aldi GmbH & Co. KG Retail

€ 2,027

15 Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG

GT I PM12 Apollo Optik GmbH Retail 125 € 1,558 Yes

10.06 30.04.2014

GT I PM58 € 1,354 Yes 01.04.200923.35 31.03.2014

€ 6,645

Retail 7,140 € 39,268 Yes 01.10.2007Let 5.50

16 Wiener Feinbäckerei Heberer GmbH Weimar Retail 79 € 4,419 Yes 01.06.2001Let 56.29

17 AWG Allgemeine Warenvertriebs-GmbH Retail 890 € 8,277 Yes 01.03.2002Let 9.30

18 MediMax Zentrale Electronic GmbH Retail 1,546 € 10,027 Yes 01.12.2004Let 6.49

19 Ziesche Retail 80 € 750 Yes 01.10.1998Let 9.38

20 Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG Storage 442 € 2,210 Yes 01.10.2007Let 5.00

21 Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG Office 55 € 275 Yes 01.10.2007Let 5.00 30.09.2026

22 Aldi GmbH & Co. KG Storage 135 € 0 No 01.05.2008Let 0.00 30.04.2014

23 Aldi GmbH & Co. KG Storage 41 € 0 No 01.05.2008Let 0.00 30.04.2014

24 Sparkasse Chemnitz Abt. Verwaltung Other Units 4 € 273 Yes 26.04.1993Let 68.22 31.03.2014

25 Schwarz Außenwerbung GmbH Other Units 1 € 433 Yes 01.01.2010Let 433.33 31.12.2014

26 Cakir Other Units 24 € 607 Yes 01.04.2006Let 25.31 31.03.2016

27 Dung Tran Other Units 24 € 750 Yes 01.11.2005Let 31.25 30.06.2014

M GT I PM28 TOTAL Deutschland GmbH Petrol Station 1,139 € 2,586 Yes 01.04.2003Let 2.27 31.03.2018

Yes 15.03.2011Let 13.50

17 € 0Vacant 0.00

Other Units 1 € 1,171 YesLet 1170.79

32 Mall Income Other Units 1 € 124 00.01.1900Let 124.39

33 Parking External parking 450 € 0 Yes 00.01.1900Let 0.00

M GT I PM34 Fleischerei Richter GmbH Other Units 8 € 100 n.a. 01.01.2009Let 13.33 75%

M GT I PM35 Gottmann Kay Other Units 1 € 15 01.10.2009Let 15.00 0%

M GT I PM36 Geiser Roland GmbH Other Units 1 € 300 n.a. 01.08.2011Let 300.00 75%

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

01.02.2011



Tis6



€ 738

abc

0 36 Geiser Roland GmbH Other Units 1 € 300.00 3 € 300 5 75%€ 100 0 0

0 0%€ 0 0

0 3 5 75%€ 30.00

0

€ 100 6 6

0

0 0

35 Gottmann Kay Other Units 1 € 0.00 € 0

34 Fleischerei Richter GmbH Other Units 8

33 Parking External parking 450 € 0.00 € 0 € 0 0

0 0 0 0%0 0

0 0 0%

32 Mall Income Other Units 1 € 0.00 € 0 € 0

0 3 5 75%0 0 31 Kurzzeitmieter Other Units 1 € 0.00 € 0 € 0

0 3 5 75%0 0 30 Vacant Retail 17 € 5.50 € 94 € 0

0 3 5 75%12 12 29 Apache-Jeans Retail 150 € 15.00 € 2,252 € 100

0 3 10 75%0 0 28 TOTAL Deutschland GmbH Petrol Station 1,139 € 2.27 € 2,586 € 0

0 3 5 75%6 6 27 Dung Tran Other Units 24 € 30.00 € 720 € 0

0 3 5 75%6 6 26 Cakir Other Units 24 € 30.00 € 720 € 0

0 3 5 75%0 0 25 Schwarz Außenwerbung GmbH Other Units 1 € 433.33 € 433 € 0

0 3 5 75%3 3 24 Sparkasse Chemnitz Abt. Verwaltung Other Units 4 € 68.22 € 273 € 0

€ 0 0 3 10 75%12 12

3 10 75%12 12

23 Aldi GmbH & Co. KG Storage 41 € 0.00 € 0

Storage 135 € 0.00 € 0 € 0 0

0 3 5 75%6 6

3 5 75%6 6

21 Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG Office 55 € 5.00 € 275

75%9 9

20 Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG Storage 442 € 5.00 € 2,210 € 100 0

10

19 Ziesche Retail 80 € 8.00 € 640 0 3 5

€ 6.00 75%

0 3 5 75%12

0 3 6 6

€ 11.00 € 9,795 € 100

6 6

€ 100

12

75%

6 6 0 3 5 75%

0 3 5

75%

0 3 10 75%

0 3 5

0 6

0 3 59

50

75%

€ 100

75%

75%

5 75%6

0

6

12 12

€ 100

75%

3

0

5

3

5

9

0 6

12

75%

9

6 5

3 9

3

3

75%

0

3

5

75%

75%

3

0

75%

5

75%

3 5

5

75%

3

6€ 100 6

6 53

0 5

€ 50

€ 100

Total

22 Aldi GmbH & Co. KG

13 Aldi GmbH & Co. KG

€ 100

€ 100

€ 100

€ 100

660

€ 100

€ 50

6 14 Flora Passionata Retail

16 Wiener Feinbäckerei Heberer GmbH Weimar

Retail15 Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG

Retail

Page 7 of 12

€ 103,91013,903 sqm

Term**

Matrix Portfolio

Re-letting

€ 1,269

€ 733

€ 30.00

€ 9,2741,546

435

58

7,140

€ 100

890

Retail

€ 30.00

€ 6,604


€ 10.00

18 MediMax Zentrale Electronic GmbH

7 Röhner

Retail

Retail

Retail

Storage

8 Valora Retail Kiosk GmbH Retail

175

3 mister*lady GmbH Retail

Retail

2 Friedrich

1 BRL Center GmbH

73


12 Apollo Optik GmbH

Retail


10 Deichmann SE

11 Fleischerei Richter GmbH

Retail

Retail

13 € 30.00

Market

6

6 0

0

3

12 0


€ 25.00

€ 2,352

€ 1,955

29

€ 25.00

336

Rent

€ 25.00

0

€ 100

€ 225

€ 39,268

6

€ 100

€ 1,562

€ 2,355

€ 869

€ 2,003

€ 30.00

€ 5.50

€ 2,454

€ 12.50

€ 12.50

€ 30.00

125

79

4 Frisör Klier GmbH Retail 78

5 Reiseland GmbH & Co. KG 30 Retail

29

82

€ 402

6

€ 100

€ 30.00

€ 7.00

€ 5,438

6

12

€ 25.00

€ 17.50

6

Market

€ 100

08371 Glauchau

Retail

sqm/unitTenant Name

Retail € 100

€ 100


Area Category

67

€ 1,740


6

12

6

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

2AA193


0.00

2.27

8.14

0.000.000.00

1,303,532

4.55

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year275

0.00

12,747

31,03227,780

0

3,300

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

12,045

08371 Glauchau

00

m²Use Category

Rent RentMarketRent


4.5%1,145,2215.00

0

012,062

Market

3,3001,196,135

€/month

DIY

Office

0

55

0

27595,435

0.13%

7.91

0

3,300€/m²/month


Rent

450

ContractualRent

€/year

0.00%65

0.00%

0.00%0

17647

0.00%

Matrix Portfolio

Waldenburger Straße F175 31.03.2013

1,139

00Commercial

55

Contractual

0

00

Potential

Area Vacant

450

€/m²/monthRent

0.00%450

Rent

00.00%


Use Category

Germany

01.02.2011

Capital indicator

n.a.


Comment


25,359,998 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland.According to Dun & Bradstreet (D&B) Rating as of 05.01.2011 Kaufland Warenhandel Mittel-SachsenGmbH & Co. KG has a very low credit risk. The risk of insolvency (D&B Score) within the next 12 months compared with other German companies is assessed to be low, i.e. 93% of businesses on the Germandatabase have the same or higher risk of failure.

Rent p.a.

7,140 m²


1.9%

1.9%

5.50

5.50

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

41.3%4.5%

32,0542,671103,910

41.411,246,923

0.0%0.0%0

0.0%

0

2,586

0

0.0%0-21.3%

0

11.84

8.88

0

36%

0

Kaufland Warenhandel Mittel-Sachsen GmbH & Co. KG

13.5 years

~ 6,000 m²

0 00


Main tenant

€ 471,214


Tenant name

5.92

Storage2,5862,315

Petrol Station 2.27


8.5158.51


00

31,032 31,0322,943

0 0.0%00

00

35,316

m²

0

Property Analysis

0 0.0%0.00 0

99,54300.00

8.26

Warehouse

Warehouse

Area Let

12,764

Other Units

017

Residential647

0

0

0

0.14%

Contractual


1,139

1,194,521

Retail

5.00


065

Income Analysis

Internal parking

Office

DIYRetail

Storage

108,49345,285

1,301,918

0 0

45,285

27,780

3,774

3.58

0.000.00


External parking

Total parking

€ / m²

5.505.92

5.50

8.88

11.84

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

4,227

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The main tenant, Kaufland, has a lease expiring in 2026 with the option to prolong its lease. The rent is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relationto CPI basis. Kaufland does not contribute to any costs in association with maintenance costs for roof and the building structure, ground tax, insurance fees, and management costs. The remaining tenants usuallydo not pay for maintenance costs for roof and building structure and pay a fixed amount each month for management costs (usually around € 100). However, most tenants pay for ground tax and insurance fees.The rent is mostly indexed with 75% to 100% adjustment of the rent whenever the German CPI changes by 10% or more. Some of the tenants have an option to prolong their leases by five years.

0 €

0 €

€ 4,206€ 24,700

€ 4,273


€ 0

9.6%

5.39%

% of Gross

€ 10.00 /m²/p.a.

€ 2919.5%

0 €

€ 4,075 0 €0 €€ 4,010

0 €€ 3,942

8.9%€ 259

€ 23,111 9.1%9.8%€ 6,011

€ 22,426

€ 555

0 €

€ 0.00 /m²

Management costs


€ 9.07 /m²

€ 18,725€ 3,873

€ 22,740

5.63%



€ 122,949€ 119,917€ 122,753

€ 2,332

€ 1.53 /m²

% of Gross

0.00%

€ 19,529

€ 18,704


per year


€ 5.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 7.25%

7.25%



Assumptions

The space of Andres Weber has been relet to Reiseland GmbH & Co. KG for a lower rent p.m. One new contract was negotiated with Gottmann Kay. Some indexation adjustments took place.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the stable Cash Flow, the long lease contract with the tenant Kaufland, theaverage location within the federal state Saxony and the low vacancy rate.

01.02.201108371 Glauchau

Germany

31.03.2013

€ 0.29 /m²€ 0

0.29%€ 22,351€ 1.75 /m²

€ 0.00 /m²€ 3,746

per year

Year 8

€ 23,523€ 19,745

€ 78,871€ 77,625

€ 19,611

€ 72,633Year 3

€ 20,282

% of Total

Year 7

€ 3,758€ 19,652

€ 124,560

€ 116,574

€ 1,807

Total

€ 76,413 € 20,023



Other Non-

€ 09.22%

€ 0.29 /m² € 3,746

Insurance


1.79%

Market Rent

0.00%8.90%

1.50%€ 1.47 /m²€ 1.75 /m² € 22,351

€ 115,828

per year

€ 9.01 /m²


€ 115,003

€ 3,811


Gross Revenue

€ 20,437 € 25,895 0 €€ 21,056€ 82,587 € 26,278

Year 10€ 269

1.72%1.50%

Market Value

€ 80,138

Year 4

Year 6

€ 4,404

€ 19,902

Year 11€ 81,380

€ 25,499Year 9

GroundManagementTax

Maintanance

€ 19,224

CostsCosts

€ 73,928

Year 1Year 2

€ 70,479€ 71,466

€ 25,096

€ 75,203 € 23,929€ 24,314

Year 5

€ 20,645

9.6%

0 €€ 4,139

€ 134,5949.9%9.6%

0.30%

0 €

€ 2,933€ 4,339

€ 1,072

€ 1,648€ 134,984

€ 127,4389.6%

0 €

9.4%

€ 132,203

Year after 2021

€ 125,116

abc

€ 1,012 € 129,4679.6%

Page 9 of 12

Inflation

after 2021



Market

8.9%

9.8%

9.1%9.6% 9.5% 9.4% 9.6% 9.6% 9.6%

9.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







5.00%


€ 892,292-€ 6,796

-€ 48,976

-€ 15,563

-€ 134,984


€ 17,100,000€ 1,301,918

€ 1,277

Page 10 of 12

7.99%

€ 1,146,923

€ 8.50 Total

Total € 16,300,000

6.94%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. The main tenant, Kaufland Warenhandel Südwest GmbH & Co. KG, has good covenant strength, whichensures a secure cash flow for the remainder of the lease term until at least 2026. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance, condition and building age,third-party usability, competition situation and location. In terms of the market rent of Kaufland, our analysis shows that Kaufland could afford to pay a higher rent of approx. € 6.40/m²/month. However, taking the highly negative population growth forecast for the comingyears into account as well as the strong competition, we decreased the market rent accordingly to € 5.50/m²/month.

-€ 5,835

abc

Valuation Comment

€ 1,246,923 per m²

4.50%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to the information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. For the periods of year 1 to 10, allbudgeted costs (capital expenditures) are covered by our maintenance cost approach of € 5.50/m² p.a.Regarding comparable rents, we have had recourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to thesection "Investment Comparables". Compared to our last valuation, some changes in the rent roll have been made as well as an adjustment of the non-recoverable costs.0

6.62%

Year 10 € 1,362,457€ 1,376,322

€ 0

€ 1,400,261Year 9

-€ 125,116

TIs and

-€ 122,753


€ 1,316,366 -€ 7,198

-€ 16,461-€ 3,747

€ 1,222,659

€ 1,209,737 -€ 1,823 € 1,206,629

Income

-€ 10,024

-€ 18,267-€ 2,718 € 1,186,533

€ 1,136,312

Net

31.03.2013


€ 1,190,959€ 955,325

€ 1,153,445

Year 6Year 7

-€ 13,975

€ 1,182,848

-€ 116,574Vacancy

Year 5

€ 1,366,101 € 1,352,126Year 8

Year 4

Year 2-€ 7,233

Gross

€ 1,333,604

Market Value



€ 1,244,119

€ 1,191,947

7.65%per m²

€ 1,326,806

-€ 132,203-€ 129,467€ 0 -€ 6,205


€ 17,573,259

€ 1,340

€ 17,145,235-€ 134,594 -€ 3,678€ 1,403,732

Rent Overview



€ 17,145,235


per m²/month

€ 1,269,138

€ 823,641

-€ 1,110

-€ 5,576 € 0


-€ 119,917 € 1,196,449

Costs

€ 999,194

€ 1,227,473

Abatements

€ 1,058,339

-€ 12,014

-€ 127,438€ 1,199,993

-€ 3,674€ 0 € 1,199,368

€ 1,216,411

Year 3 € 1,323,599

€ 1,186,178€ 673,153-€ 19,741

-€ 124,560

€ 758,679

€ 1,248,335

Revenue€ 1,310,114

Turnover

Germany

€ 1,125,582

Revenue

€ 1,309,262 € 0

€ 0 € 1,307,408

Rent

€ 0

€ 1,313,633-€ 60,927-€ 3,519 € 0Year 1

€ 1,315,518

€ 1,346,613

Year 11 € 1,409,567

€ 1,334,853

€ 8.14

€ 0-€ 33,898

€ 1,407,156 -€ 44,699 € 0

€ 1,281,620-€ 26,196

-€ 19,807

€ 611,629

Yield Overview

€ 1,193,540

€ 1,158,671-€ 122,949

€ 1,340,429

08371 Glauchau

Cash Flow

Non-Total

-€ 1,285-€ 25,901

€ 0

€ 8,727,288

-€ 23,939 € 0-€ 29,281

Present

€ 711,733

€ 838,856

-€ 7,967

Leasing

01.02.2011

Matrix Portfolio

Value @

7.0%

6.6%

7.0%6.8%

6.9%7.1% 7.0%

7.1% 7.3% 7.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0

€ 1600000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



01.02.2011

abcPage 11 of 12


View from main entrance to the mall

Matrix Portfolio

Sales area of Kaufland

08371 Glauchau

Photos

View of the petrol station on site

View of Aldi with separate entrance


31.03.2013

View of the mall

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 6,250 m²Self-Service Department StoreShoes

16,866 m²

1,435 m²Fashion504 m²

0 m²88 m²Haircutter

Real BitterfeldGörlitz

Großpösna0

AWG

0Frisör Klier

Deichmann

0

Großpösna

0

Slightly better purchasing power

€ 0

€ 11.25 /m²€ 16,373

€ 0.00 /m²

Total Rent p.m.

€ 2,236 € 25.41 /m² Slightly better purchasing power€ 11.41 /m²

Slightly worse purchasing powerRental income includes sub tenants with higher rents

€ 5,670


Area

Better purchasing power€ 6.85 /m²

€ 38,750 € 6.20 /m²€ 115,532

€ 5.29 /m²€ 104,150

CommentOther federal state

Rent p. sqm€ 8,136 € 4.52 /m²

Significantly better purchasing power

08371 Glauchau

City


Leasing Comparables

1,800 m²

Leasing Market

Real


31.03.2013Waldenburger Straße F175

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

SalzgitterWal Mart


19,688 m²


BraunschweigMühlhausen



Investment Market




Date of Transaction



01.02.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 2 16 to 25 years Macrolocation 3 Average location and catchment areaLettable Area 4 Between 12,500 and 15,000 m² Microlocation 3 Average micro locationProperty condition 3 Average building condition Commercial activity 2 No commercial activity nearbyGeneral impression 3 Average general impression Competition 3 Average competition level

Investment Quality

WALT 4 WALT seven to ten years Investment market 3 Average property marketOver- / underrent 5 Significantly underrented (more than -15%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

The retail unit let to Kaufland is strongly underrented

31.03.2013


Key Figures

Friedrichstraße 124

n.a.


Building

Liquidity

Valuation Results

Location


8.84%

Discount Rate

8.84%

excluding capital

expenditures6.75%



7.7 years

Low vacancy rate

Strong and well-known anchor tenant with long remaining lease term

Located along a major through road

Good tenant mix


€ 5.30

1997


71638 Ludwigsburg

Property Summary

Retail Park

Germany

03.02.2011

Property type


Kaufland Vertrieb ALPHA GmbH & Co. KG


0.0%

Main tenant


-22.5%

€ 1,033,067

€ 898,931



Strengths


0

Difficult relettability of the fitness studio/health centerExtension of the lease contracts of the smaller tenants 0

0

0

€ 7.85 / m² / p.m.€ 12,700,000

7.00%

The property consists of two buildings. The main building was built in 1997 and is a multifunctional building complex with two underground levels and one to five storeys. The main tenant, Kaufland, is located in themain building, as is the health centre and some minor office areas. The building comprises four connected building parts, which extend from west to east: Part A is a five-storey building with one basement, whichhas a triangular shape and is the location of the main entrance to the mall. This building part is mainly let to medical practices. Part B is an L-shaped one- to two-storey building with a basement level and in parts, asecond basement level. The main part of the mall is located here. Building part C has two storeys, one basement level and a rectangular shape. The ground level is occupied by the shopping mall, while the firstfloor is let to the fitness studio. Building part D is rectangular, has four-storeys and comprises residential units.

0

6.66%

Market Rental Value

12.29

€ 1,332,535 p.a.

Limited third party usability of the large-scale retail area without refurbishmentWeaknesses

Matrix Portfolio

High level of competition (another Kaufland nearby)

€ 898 per m²

Reletting of the main retail area on market level

0

The main building is a skeleton construction with columns and beams in varying grids. On the upper floors, there are reinforced concrete slabs and a ripped ceiling over the basement. The inner and outer walls aremade of reinforced brickwork or concrete, and are partly constructed as a multi-layer construction or covered with plaster. The annex was completed in 2007. It has three storeys and a rectangular shape. Theannex is let to medical practices and office tenants on the first floor. There are three retail units on the ground floor and several residential units on the other floors. There are two parking levels under the mainbuilding accessible from Friedrichstraße. Some additional parking is provided in front of the annex and is accessible from Danziger Straße.

equals toequals to

Market Value






0

€ 0.79

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






167.47

The nearest airport offering connections to national and international destinations is the Stuttgart Airport,located approx. 22 km from the subject property.

The economy of Ludwigsburg is based on five sectors: automotive suppliers, mechanical engineering,financial services, software development, and communication media. Additionally, a new field iscurrently establishing itself in Ludwigsburg, namely companies with future-oriented businesses such asenergy efficiency, eco-design and green industry. Well-known companies based in Ludwigsburg includeBeru Ag, Gleason-Pfauter GmbH, Wüstenrot Bausparkasse AG and Mann+Hummel GmbH.

Micro Location

Ludwigsburg is located in the centre of Baden-Wuerttemberg, only 12 km north from the state capital,Stuttgart (602,000 inhabitants). It is the district capital of the Ludwigsburg District and the second biggest secondary centre in the federal state.The closest motorways are the A81 (Würzburg - Gottmadingen) and A8 (Perl - Bad Reichenhall), whichconnect the region to Salzburg, Austria to the south-east. The motorways can be reached within 5 kmand 20 km, respectively.Ludwigsburg has a railway station, which is located approx. 2 km from the subject property and offersconnections to regional destinations such as Stuttgart. The closest railway station offering connectionsto the high-speed ICE train network is in Stuttgart, approx. 13 km away.

0

Location


31.03.2013

71638 Ludwigsburg 03.02.2011

Ludwigsburg (Rural District)

Germany

Baden-Wurttemberg



4.2%

12,725

Ludwigsburg Macro Location

5.0

Micro Location

375

The property is less than 2 km from Ludwigburg's city centre. It is located at the intersection of DanzigerStraße and Friedrichstraße (L1140), a well-frequented east-west axis. The property is highly visible fromboth Friedrichstraße and Danziger Straße due to its corner location. The surrounding are ischaracterized by residential use with minor commercial use on the ground floor level.


1.6%

106.68106.74

7.5%

2,044

4.1%

Structual Data

abc


88,673

71638

2046759

10,744,921521,014

Ludwigsburg

0.8%

40,594

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Friedrichstraße 124 31.03.2013

03.02.2011

Germany


According to information from the local planning authority, a legally binding development plan exists,entitled "048/01" and dated 30.09.1995, with the following regulations: the subject site is listed as aspecial area (SO-Sondergebiet "Einkaufszentrum"), which permits large-scale retail trade. The sitecoverage ratio (Grundflächenzahl, GRZ) is 0.9. The maximum height of the buildings is limited to 27.5 mfor the corner building and 17.5 m for the middle part of the building and 15 m for the annex.


TPL Ludwigsburg S.á.r.l., Luxembourg

Land Register

25568 1330/21330/89

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan



Matrix Portfolio

71638 Ludwigsburg

SO (special zone)

n.a.

NO 3611 (VN 1998/2)

NO 3611 (VN 1993/71)

Sheet Plot Parcel

n.a.

Tenure

Site servicing


0 m²

0,9

Town Planning

Fully serviced


Irregular

According to the Environmental Due Diligence Report, dated July 2007, both sites are listed in thecontaminated land register, "Atlas altlastverdächtiger Flächen des Landratsamtes Ludwigsburg". Thesites were formerly used by the US military as a military base. It is not clear whether the grounds werecontaminated, as neither subsoil investigation reports nor remediation reports were available. Kauflandhas stated that there is no subsoil contamination up to 10 m below ground level; however, it is not clearwhether there is contamination below this point. For the purposes of this valuation, we have assumedthat the subject property is free of any soil or building contamination.

Several limited personal easements (regarding temporary restrictive covenant, right of wayleave, restrictive covenant, pipeline easement, building restrictions concerning antennas and combustion installations, right to maintain a sidewalk on part of the property, right to operate and maintain a central heating system) in favor of the city of Ludwigsburg. Further limited personal easements (regarding the installation/operation of a transformer station, pipeline easement, the installation and operation of a distribution plant) are in favour of Neckarwerke Elektrizitätsversorgungs-AG, Esslingen and Deutsche Telekom AG, Stuttgart. One limited personal easement (the right to operate and maintain a hypermarket) in favor of Kaufland Dienstleistungs GmbH&Co. KG, Neckarsulm.



Local Court of Ludwigsburg, land register of Ludwigsburg

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



167.47

7.5%

abc


71638 Ludwigsburg

Name70806 Kornwestheim, Arkansasstr. 2

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress

Hypermarket



Page 4 of 12



15,498

Low

LowLow

1,500 m²

Low1.90 km



71679 Asperg, Eglosheimer Str. 72Rewe Burkhardt


19,692

40,594

Rewe

Handelshof

Handelshof

295,384

3,400 m²2,746 m²



4.50 km5.20 km

71679 Asperg, Ruhrstr. 671686 Remseck, Neckaraue 2 Hypermarket

71638 Ludwigsburg, Wilhelmstr. 24

70806 Kornwestheim, Bahnhofsplatz 2-4

ReweKaufland

70806 Kornwestheim, Neckarstr. 1

E-center

Rewe

71636 Ludwigsburg, Schwieberdinger Str. 94


3.00 kmSelf-service dep. store 5,073 m²

E-center

Handelshof

37,677

Marktkauf

106.74

74321 Bietigheim-Bissingen, Prinz-Eugen-Str. 10

71672 Marbach, Rielingshäuser Str. 15

139,480

Hypermarket6.40 kmHypermarket70736 Fellbach, Daimlerstr. 18

KauflandRewe Aupperle

70378 Stuttgart, Aldinger Str. 70 5.50 km

7.50 km


8.50 km6,000 m²

Hypermarket 7.30 km

3.60 km

2,800 m²4,800 m²

71732 Tamm, Bissinger Str. 1070825 Korntal-Münchingen, Schwieberdinger Str. 100

2,400 m²2,000 m²

E-neukauf HypermarketLow2,361 m²

Self-service dep. store Low

Medium

Inhabitants in primary catchment area

7.60 km

2,864 m²

Hypermarket

12,559

Low


Kaufland 70736 Fellbach, Merowingerstr. 58.60 km


03.02.2011


31.03.2013

HighLow

Medium

Medium

Medium

Low

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


03.02.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a large-scale retail property let to the tenant Kaufland. The property is located in a commercial area at the western periphery of Ludwigsburg. A Küchenstudio and an Aral petrol station are located next to the property.

Main competitors

71638 Ludwigsburg


0

The rents in a functional retail agglomeration are linked to turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective branch. The productivity varies between approx. € 1,000/m² up to more than € 10,000/m². In the subject property, there are only four retail areas: the retail areas of Kaufland, Corongiu, Sardovino and Aro Heimtextilien GmbH. No turnover rents have been agreed with the tenants Corongiu and Sardovino; we have therefore not been provided with any turnover figures.

abc

Competition Comment

The catchment area can be differentiated into primary (0 - 5min driving time); secondary (5 - 10min) and tertiary (10 - 15min) catchment area. Approximately 37,677 inhabitants live in the primary catchment area. This results in 12,559 inhabitants per large-scale hypermarket in the primary catchment area.Even though there are several discounters and small-scale supermarkets located nearby, it can be said that these present only indirect competition to the property. Kaufland offers a very deep and broad product range with more than 50,000 products, while supermarkets and discounters generally offer a limited product range with only 7,000 to 11,000 (supermarkets) or 400-2,500 (discounters) articles. Therefore, these retailing forms address different customers or customer needs. While supermarkets and discounters cater to the daily needs of customers, Kaufland offers more variety for products that are bought on a non-daily basis.Several additional tenants complement the offer. These include Kreissparkasse Ludwigsburg (bank), Klier (hairdresser), several restaurants and cafés, a butcher’s shop and a bakery, a travel agency, a photography store, a car rental service, a pharmacy, a newspaper kiosk, a locksmith, a Quick-Schuh and a fashion jewellery store. The mix of the ancillary tenants is comparable to the sublets of Kaufland in the subject property (pharmacy, newspaper kiosk, bakery, butcher’s shop, hairdresser, drycleaner). The property was refurbished in 2009/2010. The split of the retail area over two storeys is a bit problematic, as it forces consumers to walk longer distances. Other than that, the proximity of this competitor to the subject property and the superior location along a commuter road make this retail property a serious competitor with high competition potential. There are three more Rewe hypermarkets in a radius of 3 km. However, as these have barely half the sales area of the subject property and offer a different product mix, they only represent indirect competition.

For Kaufland, we have been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Considering the location factors and the competition level within Ludwigsburg, we have assumed that a higher turnover-to-rent ratio regarding a similar branch and turnover is realistic. Hence, the market rent after the termination of the current rental contract has been chosen in a range of 3%. Please also refer to the rent/turnover analysis on page 8.

The location is suitable for the tenant and can be reached by foot from the surrounding residential area as well as by car. Even though the competition from the Kaufland located nearby is strong, the density of self-service department stores is moderate for a city this size. We believe that the tenant will be able to compete, especially because it can operate on a very low contractual rent for a long time. The anchor tenant, Kaufland, has a lease contract until 2022 with three options each for five years, bringing the earliest possible termination date for the landlord to 2037. On the basis of our projection of likely productivity per m² and turnovers, we have calculated the market rent at a level of € 8.50/m²/month. The tenant currently pays a contractual rent of € 4.91/m²/p.m. Therefore, the retail unit is currently heavily underrented. Due to the margins realizable and under the assumption of good turnover figures, we believe that Kaufland will remain in the property until 2037. In the unlikely case that Kaufland should vacate the premises, the property could be relet to other self-service department stores, which are currently not present in the Ludwigsburg real estate market.

The subject property is a modern self-service department store with a small mall in the basement as well as some additional tenants on the ground floor. The tenant mix of the sublet areas is service oriented and includes a hairdresser, pharmacy, newspaper kiosk, bakery, butcher’s shop, deli and drycleaner. The property offers sufficient parking spaces on two levels and is easily accessible as well as highly visible from both Danziger Straße and Friedrichstraße. As Kaufland is a strong customer magnet, we believe that it will have no trouble letting the small retail units in the basement and on the ground floor. The retail units in the annex, however, are difficult to let. This is partly due to the fact that in the location of the subject property, there is no demand for additional retail space. The current use as a restaurant/wine store are fine, however, they do not benefit greatly from their location next to the Kaufland and therefore, it will be difficult to find new tenants if the current tenants do not prolong their lease terms. In contrast to this, the location has established itself as a medical centre: several of the office units in both the main building and annex have been let to medical practices and a health centre complements this offer. The letting of the office units assuming an adequate rental level can therefore be rated as relatively unproblematic.The rental area of Kaufland can be regarded as relatively unproblematic.


The location of the property is very good and it benefits from being next to a highly-frequented road leading to the A81 motorway. The property is comparable to the subject property and therefore, has a high competition potential.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Jacobi-Haumer

12.35

€ 36,743

30 PROPERTY MANAGER

Office10 Schwarzenberger

11 Praxisgemeinschaft

Let

Page 6 of 12

GT I PM

15.05.2016

205

Internal Parking

Residential

5 Life GmbH

3 Corongiu

165

4.65

4.91

Office 8.96

11.58

2 SardoVino GmbH Alexander & Carolin Corongiu Retail

pays VAT

13.09.2017

13.09.2017

75%

75%

Start

75%

31.03.2013Friedrichstraße 124

Tenant

Matrix Portfolio

03.02.2011


TenantLeaseArea

Let

Let

30.09.2027No

14.09.2007

Yes


1 Kaufland Vertrieb ALPHA GmbH & Co. KG Retail 7,491

/ month Probability

177

9 Praxisgem. Office

Let

Office

8 Beyer

14 Derr

6 Life GmbH

01.10.2007

14.09.2007

Yes

GT I PM

75%

Office

Yes

€ 10,041

GT I PM

4 Land BW vertr. Landesbetrieb Vermögen BW

Retail 260

90

Let

Office

2,161

16.05.2006

11.14

€ 1,111

€ 3,010

Let

Let Yes

71638 Ludwigsburg

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Office

€ 86,089

595

Let

Let

457Let

€ 1,874 31.08.2013

€ 0

30.10.2017

16.05.2006

31.07.2013

26.09.2007 30.10.2017

€ 2,134 01.04.2007

31.10.2007

31.12.2013

30.06.2014

31.07.2013

75%

31.10.2007

30.10.2017

31.07.2013

31.12.2013

31.07.2013

31.07.2013

75%

75%

31.07.2013

75%

75%

100%

75%

31.07.2013

75%

75%

75%

01.05.2010

31.07.2013

75%

30.09.2013

75%

75%

01.04.2007

GT I PM

75%

75%

75%

GT I

No

Yes

GT I PM

GT I PM

abc

GT I PM

75%

75%

75%

75%

75%

75%

75%

75%

14,144 m²

GT I PM

30.10.2017

75%

75%

75%

75%

31.07.2013

75%

75%

75%

GT I 31.07.2013

GT I

75%

31.07.2013

GT I 31.07.2013

GT I

GT I 31.07.2013

GT I 31.07.2013

01.04.2007

01.07.2011

01.09.2010

01.12.2007

75%

31.03.2017

75%

75%Yes

10.59

0.00

5.00

Yes

Yes

7.19

10.41

Yes

Yes

GT I PM

252 € 2,848

€ 1,199240

11.30

15.05.2016

€ 1,479

GT I 75%

Total

75Let

29 Deutsche Post Real Estate Germany GmbH

Let

Other Units 7

31 Jacobi-Haumer

Let

€ 5,089

LetOffice

13 Izmaku Residential

€ 125

15 Ekaterina und Alexander Erik

GT I 12 Doris Roth Residential 75 € 539 Yes

GT I 7.67 31.07.2013

GT I 65 € 450 Yes 26.06.20066.92 31.07.2013

€ 575

Residential 65 € 432 Yes 01.02.2003Let 6.65

16 Keiner Residential 65 € 408 Yes 01.02.2010Let 6.28

17 Meder Residential 63 € 450 Yes 01.12.2006Let 7.14

18 Modnikov Residential 82 € 464 Yes 26.11.2007Let 5.66

19 Bondar Residential 65 € 408 Yes 01.04.2010Let 6.28

20 Izmaku Residential 65 € 450 Yes 01.02.2007Let 6.92

GT I 21 Roth Residential 65 € 432 Yes 01.09.1997Let 6.65 31.07.2013

GT I 22 PROPERTY MANAGER Residential 87 € 0 Yes 01.07.2011Let 0.00 30.06.2014

GT I 23 Tahiri Residential 87 € 602 Yes 01.02.2010Let 6.92 31.07.2013

GT I 24 Jacobi-Haumer Residential 83 € 600 Yes 01.08.2009Let 7.23 31.07.2013

GT I 25 Pump Schmelzer Residential 85 € 600 Yes 01.04.2010Let 7.06 01.08.2013

GT I 26 Tarasov Residential 87 € 616 Yes 01.02.2010Let 7.08 31.07.2013

GT I 27 Török Residential 86 € 602 Yes 01.02.2010Let 7.00 31.07.2013

GT I 28 Schneider Residential 65 € 408 Yes 01.02.2010Let 6.28 31.07.2013

Yes 27.07.2007Let 17.86

1 € 0 Yes 01.07.2011Let 0.00

Internal Parking 1 € 35 YesLet 35.00

32 Jacobi-Haumer Internal Parking 1 € 35 Yes 31.10.2007Let 35.00

33 Tittes Internal Parking 1 € 29 Yes 01.08.2009Let 29.41

34 Modnikov Internal Parking 1 € 35 Yes 26.11.2007Let 35.00 75%

35 Török Internal Parking 1 € 29 Yes 01.02.2010Let 29.41 75%

36 Roth, Doris Internal Parking 1 € 35 Yes 01.04.2010Let 35.29 75%

37 Roth, Alexander Internal Parking 1 € 0 Yes 01.09.1997Let 0.00 75%

38 Pump schmelzer Internal Parking 1 € 0 Yes 01.04.2010Let 0.00 75%

39 Török Internal Parking 1 € 29 Yes29.41 75%31.07.2013

40 Tahiri Internal Parking 1 € 35 Yes 01.09.2010Let 35.29 75%

41 Modnikov Internal Parking 1 € 35 Yes 01.05.2010Let 35.29 30.09.2013

42 Izmaku Internal Parking 1 € 35 Yes 01.12.2007Let 35.00 31.07.2013

43 Bondar Internal Parking 1 € 35 Yes 01.08.2010Let 35.29 31.07.2013

GT I PM44 Aro Heimtextilien GmbH Retail 460 € 3,680 Yes 01.09.2011Let 8.00 31.08.2021

GT I PM45 Yamadi Yamadi Yoga Zentrum Office 262 € 1,202 Yes 01.02.2013Let 4.59 31.01.2018

46 Internal Parking Internal Parking 285 € 7,083 No 00.01.1900Let 24.85 00.01.1900

GT I 47 Wisag Residential 65 € 65 Yes 01.01.2013Let 1.00 31.12.2018

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

03.02.2011



Tis12



€ 7,023

abc

0 3 5 75%47 Wisag Residential 65 € 6.75 € 439

75%

0

12 9

€ 25 6

€ 24.8546 Internal Parking

€ 100 12 9

3

3

10

€ 100

75%

10

45 Yamadi Yamadi Yoga Zentrum Office 262 € 8.75 € 2,293

285

75%€ 0 12 12

5

0

10 75%

3

75%0 0

€ 32.50 5

€ 3,220 € 75 15

€ 0 12

0

43 Bondar Internal Parking 1 € 32.50 € 33

0

42 Izmaku Internal Parking

41 Modnikov

1

44 Aro Heimtextilien GmbH Retail 460 € 7.00

0

40 Tahiri Internal Parking 1 € 32.50 0

Internal Parking

0 € 33

5 75%€ 0 12

0

75%€ 0 12 12 5

€ 33 5 75%€ 0 12

0

0 0

12

39 Török Internal Parking 1 € 32.50 € 33

5 75%€ 0 12 12

0 5

0

12 12 75%€ 0

37 Roth, Alexander Internal Parking 1 € 32.50 € 33

0 € 33

0

38 Pump schmelzer Internal Parking

0 36 Roth, Doris Internal Parking 1 € 32.50

1 € 32.50

0 € 33 5 75%€ 0 12 12

5 75%€ 0 12

0 0 5 75%€ 32.50

0

€ 0 12 12

0

12 12

35 Török Internal Parking 1 € 32.50 € 33

34 Modnikov Internal Parking 1

33 Tittes Internal Parking 1 € 32.50 € 33 € 0 0

0 0 5 75%12 12

0 5 75%

32 Jacobi-Haumer Internal Parking 1 € 32.50 € 33 € 0

0 0 5 75%12 12 31 Jacobi-Haumer Internal Parking 1 € 32.50 € 33 € 0

0 0 5 0%12 12 30 PROPERTY MANAGER Internal Parking 1 € 32.50 € 33 € 0

0 0 10 100%15 0 29 Deutsche Post Real Estate Germany GmbH Other Units 7 € 17.86 € 125 € 0

0 3 5 75%6 6 28 Schneider Residential 65 € 6.75 € 439 € 25

0 3 5 75%6 6 27 Török Residential 86 € 7.00 € 602 € 25

0 3 5 75%6 6 26 Tarasov Residential 87 € 7.00 € 609 € 25

0 3 5 75%6 6 25 Pump Schmelzer Residential 85 € 7.00 € 595 € 25

0 3 5 75%6 6 24 Jacobi-Haumer Residential 83 € 7.00 € 581 € 25

€ 25 0 3 5 75%6 6

3 5 0%6 6

23 Tahiri Residential 87 € 7.00 € 609

Residential 87 € 7.00 € 609 € 25 0

0 3 5 75%6 6

3 5 75%6 6

21 Roth Residential 65 € 6.75 € 439

75%6 6

20 Izmaku Residential 65 € 6.75 € 439 € 25 0

5

19 Bondar Residential 65 € 6.75 € 439 0 3 5

€ 7.00 75%

0 3 5 75%6

0 3 6 6

€ 6.75 € 425 € 25

6 6

€ 25

6

75%

6 6 0 3 5 75%

0 3 5

75%

0 3 5 75%

0 3 5

3 9

0 3 56

103

75%

€ 100

75%

75%

10 75%12

3

9

6 6

€ 100

75%

3

3

10

3

10

12

3 12

9

75%

6

9 10

3 9

3

3

75%

3

3

10

75%

75%

3

3

75%

10

75%

3 10

10

75%

3

12€ 100 9

9 103

3 10

€ 25

€ 25

Total

22 PROPERTY MANAGER

13 Izmaku

€ 100

€ 100

€ 25

€ 25

75

€ 100

€ 25

6 14 Derr Residential

16 Keiner

Residential15 Ekaterina und Alexander Erik

Residential

Page 7 of 12

€ 111,04514,144 sqm

Term**

Matrix Portfolio

Re-letting

€ 2,097

€ 1,934

€ 8.75

€ 574

€ 33

82

177

65

65

€ 100

63

Office

€ 6.75

€ 525

6 Life GmbH

€ 7.00

18 Modnikov

7 Jacobi-Haumer

Office

Office

Residential

1 € 32.50

€ 7,082Internal Parking

Office

8 Beyer Office

7,491

3 Corongiu Retail

Office

2 SardoVino GmbH Alexander & Carolin Corongiu

1 Kaufland Vertrieb ALPHA GmbH & Co. KG

240

9 Praxisgem.

12 Doris Roth

Residential

17 Meder

10 Schwarzenberger

11 Praxisgemeinschaft

Residential

Residential

90 € 9.00

Market

12

9 0

0

3

9 0


€ 9.00

€ 2,210

€ 1,485

252

€ 8.50

260

Rent

€ 3.25

12

12

12

6

9

€ 25

€ 33

€ 439

6

€ 25

€ 525

€ 439

€ 2,205

€ 3,885

€ 6.75

€ 6.75

€ 1,794

€ 9.00

€ 7.00

€ 8.50

75

65

4 Land BW vertr. Landesbetrieb Vermögen BW Office 165

5 Life GmbH 2,161 Office

595

205

€ 810

12

€ 100

€ 8.75

€ 8.50

€ 1,593

12

12

€ 3.25

€ 8.75

12

Market

€ 100

71638 Ludwigsburg

Retail

sqm/unitTenant Name

Retail € 100

€ 50


Area Category

457

€ 439


15

15

9

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

O186


25.21

0.00

7.32

6.890.000.00

943,634

0.00

0.00%

Rented€/year

00

6.4%

0.0%

0.00

€/month €/year25,865

0.00

14,144

00

0

310,383

1,330

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

8,301

71638 Ludwigsburg

00

m²Use Category

Rent RentMarketRent


-36.3%838,9215.39

0

08,301

Market

310,383534,535

€/month

DIY

Office

0

4,514

0

24,30869,910

0.00%

8.42

0

291,696€/m²/month

306External parking

Rent

0

ContractualRent

€/year

0.00%7

0.00%

0.00%00

0

0.00%

Matrix Portfolio

Friedrichstraße 124 31.03.2013

0

00Commercial

4,514

Contractual

0

0299

Potential

Area Vacant

299

€/m²/monthRent

0.00%0

Rent

00.00%


Use Category

Germany

03.02.2011

Capital indicator

n.a.


Comment


23,216,057 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. According to Dun & Bradstreet (D&B)Rating as at 01.01.2011 Kaufland Vertrieb ALPHA GmbH & Co. KG has a very low credit risk. The riskof insolvency (D&B Score) within the next 12 months compared with other German companies isassessed to be low, i.e. 86% of businesses on the German database have the same or higher risk offailure. According to section 19 of the main lease agreement entered into by the landlord and KauflandDienstleistung GmbH & Co. KG (D&B Rating = 2AA 1), an assignment of the main lease agreement bythe tenant to another entity of the Kaufland group requires that the landlord's credit risk rating may notdeteriorate due to such assignment of the lease.

Rent p.a.

7,491 m²


1.9%

3.3%

4.91

8.50

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

0.0%-24.0%

1,500125103,507

17.861,242,088

0.0%-1.1%90,447

0.0%

9,164

0

7,537

-11.6%109,9710.0%

0

10.33

7.75

0

43%

0

Kaufland Vertrieb ALPHA GmbH & Co. KG

14.5 years

~ 5,618 m²

7,453 89,4330


Main tenant

€ 440,920


Tenant name

5.17

Storage00

Petrol Station 0.00


5.5617.86


8,1010

0 00

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

44,54500.00

5.37

Warehouse

Warehouse

Area Let

14,144

Other Units

00

Residential0

1,330

0

89,433

0.00%

Contractual


0

534,535

Retail

5.73


2997

Income Analysis

Internal parking

Office

DIYRetail

Storage

78,6361,500

943,634

97,215 97,215

1,500

0

125

0.00

0.006.09


External parking

Total parking

€ / m²

4.915.17

8.50

7.75

10.33

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

4,132

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is fully let to four retail tenants, one health centre, 5 office tenants and several residential tenants. The WALT of the property amounts to 7.7 years. The main tenant is Kaufland with a share of approx.43% of the rental income. The property is currently strongly under-rented, due to a very low rental level of the main tenant Kaufland. As the lease contract is valid until 2027 and the tenant has options until 2037, wedo not believe that the rental level can be adjusted before 2037. The rent of Kaufland is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relation to the CPIbasis. Indexation started on 01.04.2009. The majority of the tenants pay all costs (including ground tax, insurance costs and management costs) except for maintenance costs for structural repairs. The residentialtenants and the tenant Life GmbH (health centre) do not pay management costs. Ground tax, maintenance costs for structural repairs, management and insurance costs will not be borne by Kaufland. The rest canbe apportioned to the tenants in accordance with the German Regulation on Operating Costs.

0 €

0 €

€ 5,924€ 51,031

€ 6,019


€ 0

15.3%

6.50%

% of Gross

€ 10.00 /m²/p.a.

€ 1,66114.8%

0 €

€ 5,739 0 €0 €€ 5,648

0 €€ 5,552

13.5%€ 1,057

€ 47,750 13.2%13.3%€ 147

€ 46,334

€ 0

0 €

€ 0.00 /m²

Management costs


€ 9.48 /m²

€ 15,355€ 5,455

€ 46,983

5.04%



€ 149,180€ 138,418€ 136,241

€ 9,626

€ 1.10 /m²

% of Gross

0.00%

€ 15,496

€ 19,988


per year


€ 4.75 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 7.00%

6.75%



Assumptions

Compared to the previous valuation, two residential units and two office units have been newly let. Furthermore, some leases have been subject to an indexation adjustment.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the remaining lease term with the well-known anchor tenant, the reduction ofvacancy and consequently low vacancy rate, the good turnover figures, the good location within thefederal state Baden-Wuerttemberg and the good condition of the subject property.

03.02.201171638 Ludwigsburg

Germany

31.03.2013

€ 0.37 /m²€ 0

0.51%€ 46,179€ 3.26 /m²

€ 0.00 /m²€ 5,276

per year

Year 8

€ 48,601€ 15,708

€ 75,474€ 74,282

€ 14,674

€ 69,505Year 3

€ 16,169

% of Total

Year 7

€ 5,293€ 14,957

€ 144,837

€ 135,085

€ 3,112

Total

€ 73,123 € 15,653



Other Non-

€ 010.40%

€ 0.37 /m² € 5,276

Insurance


3.47%

Market Rent

0.00%12.98%

1.50%€ 1.41 /m²€ 3.26 /m² € 46,179

€ 134,136

per year

€ 9.80 /m²


€ 138,628

€ 5,368


Gross Revenue

€ 16,496 € 53,500 0 €€ 16,018€ 79,030 € 54,293

Year 10€ 3,562

4.47%1.50%

Market Value

€ 76,687

Year 4

Year 6

€ 6,203

€ 16,070

Year 11€ 77,875

€ 52,684Year 9

GroundManagementTax

Maintanance

€ 14,657

CostsCosts

€ 70,744

Year 1Year 2

€ 67,444€ 68,388

€ 51,850

€ 71,964 € 49,439€ 50,235

Year 5

€ 16,296

14.9%

0 €€ 5,830

€ 159,10614.0%14.1%

0.40%

0 €

€ 0€ 6,112

€ 159

€ 1,307€ 153,983

€ 147,37213.9%

0 €

14.0%

€ 152,993

Year after 2021

€ 146,411

abc

€ 0 € 149,41713.8%

Page 9 of 12

Inflation

after 2021



Market

13.5% 13.3% 13.2%

15.3%14.8%

14.0% 13.8% 13.9% 14.1% 14.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







6.50%


€ 591,129-€ 8,915

-€ 551

-€ 72,195

-€ 153,983


€ 13,500,000€ 1,033,067

€ 898

Page 10 of 12

8.13%

€ 762,210

€ 6.09 Total

Total € 12,700,000

6.66%

In terms of risk, we have considered the covenant strength as well as the lease duration for the existing contracts. The main tenant, Kaufland Vertrieb ALPHA GmbH & Co. KG, as at 1.1.2011 has good covenantstrength, which ensures a secure cash flow for the remainder of the lease term until at least 2027. Furthermore, according to section 19 of the main lease agreement entered into by the landlord and KauflandDienstleistung GmbH & Co. KG (D&B Rating = 2AA 1), an assignment of the main lease agreement by the tenant to another entity of the Kaufland group requires that the landlord's credit risk rating will notdeteriorate due to such an assignment of the lease. Section 1 of the first amendment to the main lease agreement provides for the assignment of the main lease agreement to ALPHA Warenhandel GmbH & Co.KG, which has a worse D&B Rating (O 1). Pursuant to section 2 of the first amendment to the main lease agreement, the former tenant remains jointly and severally liable for the landlord's payment claims. Hence,the former tenant is a guarantor for the lease payments of the current tenant. In terms of a resale, we considered such facts as visibility, appearance, condition, third-party usability and location.

-€ 34,175

abc

Valuation Comment

€ 1,332,535 per m²

-22.47%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. We have been provided with updatedinformation regarding necessary capital expenditures. All Capital expenditures for repairs in the first year as well as in the periods of year 2 to 5 and year 6 to 10 are considered to be covered by the maintenancecosts of € 4.50/m² per annum. The encumbrances and the public easements are considered to be common practice and do not affect the Market Value of the property. For comparable rents we have had recourseto evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparable transactions.

0

8.84%

Year 10 € 1,099,711€ 1,086,398

-€ 17,316

€ 1,097,617Year 9

-€ 146,411

TIs and

-€ 136,241


€ 1,047,205 € 0

€ 0-€ 598

€ 928,487

€ 897,105 -€ 13,326 € 874,920

Income

-€ 10,619

-€ 585€ 0 € 908,787

€ 746,825

Net

31.03.2013


€ 840,890€ 803,096€ 815,919

Year 6Year 7

€ 0

€ 833,449

-€ 135,085Vacancy

Year 5

€ 1,077,904 € 1,077,904Year 8

Year 4

Year 2€ 0

Gross

€ 1,035,287

Market Value



€ 933,405

€ 922,703

10.49%per m²

€ 1,071,310

-€ 152,993-€ 149,417€ 0 € 0


€ 14,148,654

€ 954

€ 13,492,024-€ 159,106 -€ 27,376€ 1,067,840

Rent Overview



€ 13,492,024


per m²/month

€ 908,734

€ 604,039

-€ 5,302

-€ 15,045 -€ 7,481


-€ 138,418 € 908,787

Costs

€ 769,641

€ 945,728

Abatements

€ 886,267

€ 0

-€ 147,372€ 928,487

-€ 637€ 0 € 923,938

€ 877,651

Year 3 € 1,047,205

€ 945,728€ 495,784-€ 52,274

-€ 144,837

€ 596,152

€ 1,023,644

Revenue€ 997,127

Turnover

Germany

€ 887,403

Revenue

€ 1,024,989 € 0

-€ 24,171 € 978,286

Rent

€ 0

€ 1,025,380-€ 1,345

-€ 11,290 -€ 16,963Year 1

€ 1,043,642

€ 1,072,775

Year 11 € 1,119,331

€ 1,043,516

€ 7.85

-€ 28,526-€ 38,001

€ 1,099,863 -€ 152 € 0

€ 977,115-€ 32,830

-€ 1,465

€ 498,775

Yield Overview

€ 862,042

€ 827,935-€ 149,180

€ 1,066,042

71638 Ludwigsburg

Cash Flow

Non-Total

-€ 8,859-€ 60,620

€ 0

€ 7,192,458

-€ 11,219 € 0€ 0

Present

€ 560,638

€ 564,393

-€ 3,480

Leasing

03.02.2011

Matrix Portfolio

Value @

6.4%6.6%

6.7%

6.1% 6.2%

6.6%6.8% 6.9% 6.9%

7.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



03.02.2011

abcPage 11 of 12

View of the parking garage

Southern facade of Kaufland

Matrix Portfolio

View of the annex building from Danziger Straße

71638 Ludwigsburg

Photos

View of the vacant retail unit in the annex building

View of the mall


31.03.2013

Internal view of the sales areas of the tenant Kaufland

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold


9,506 m²

52 m²Appartment6,388 m²

0 m²452 m²Office

Marktkauf LauchhammerBochum

Ludwigsburg0

Residential

0Office

Kaufland

0

Ludwigsburg

0

Offer

€ 0

€ 8.80 /m²€ 395

€ 0.00 /m²

Total Rent p.m.

€ 3,842 € 8.50 /m² Offer€ 7.59 /m²

Smaller retail area, slightly lower purchasing powerBigger retail area; lower purchasing power

€ 56,214


Area

Bigger retail area; lower purchasing power€ 7.79 /m²

€ 61,538 € 7.75 /m²€ 74,052

€ 7.75 /m²€ 35,732

CommentComparable purchasing power, better location

Rent p. sqm€ 56,032 € 8.99 /m²

Lower purchasing power; worse location

71638 Ludwigsburg

City


Leasing Comparables

6,233 m²

Leasing Market

Kaufland


31.03.2013Friedrichstraße 124

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

FreitalKaufland


4,611 m²


LüneburgUlm



Investment Market




Date of Transaction



03.02.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 2 16 to 25 years Macrolocation 3 Average location and catchment areaLettable Area 4 Between 12,500 and 15,000 m² Microlocation 4 Good micro locationProperty condition 3 Average building condition Commercial activity 4 Average commercial activity nearbyGeneral impression 3 Average general impression Competition 4 Low competition level

Investment Quality

WALT 4 WALT seven to ten years Investment market 3 Average property marketOver- / underrent 2 Slightly overrented (5% to 15%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

Sales area spread over several floors

31.03.2013


Key Figures

Potsdamer Straße 51

n.a.


Building

Liquidity

Valuation Results

Location


6.19%

Discount Rate

6.19%

excluding capital

expenditures7.00%



7.5 years


Well maintained

Located in city centre location

Good tenant mix


€ 6.79

1997


14974 Ludwigsfelde

Property Summary

Retail Park

Germany

01.02.2011

Property type


Kaufland Dienstleistung GmbH & Co. KG


0.4%

Main tenant


9.6%

€ 1,138,683

€ 1,029,320



Strengths

Located close to other retailers on an arterial road

0

Strong dependency on the main tenant Kaufland0 Difficult relettability of the fitness studio

0

0

€ 6.88 / m² / p.m.€ 14,200,000

6.65%

The subject property is a three storey department store complex, furnished with escalators. The property was built in 1997 and faces Potsdamer Straße, Karl-Liebknecht-Straße and Bruno-Taut-Straße. The propertyhas one main entrance from Potsdamer Straße and can also be accessed from the underground parking garage. The buildings have an irregular shape and are made of a steel reinforced concrete construction.The facade consists in parts of plastered or with facing bricks and in the entrance area of glass. It has a flat roof with hard covering.

0

6.82%

Market Rental Value

12.47

€ 1,042,279 p.a.

Sufficient parking spaces but located undergroundWeaknesses

Matrix Portfolio

0

€ 1,124 per m²

Extension of the lease contracts of smaller tenants

0

equals toequals to

Market Value






0

€ 0.72

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






76.23

The economy of Ludwigsfelde is primarily focussed on logistics and production facilities. Ludwigsfeldehas an industrial park with an area of over 256 ha, where more than 70 companies operate. Additionally,there are three commercial parks with over 618 ha, where more than 900 companies are located. Thedistrict Teltow-Fläming is economically one of the strongest districts in the former East German states.

Micro Location

Ludwigsfelde is situated in the federal state of Brandenburg in the administrative region of Teltow-Fläming. The city covers an area of 109.3 sq km. Nearby cities include Berlin (30 km) and Potsdam (20km). The A10 federal motorway is located directly next to Ludwigsfelde, offering a direct connection tothe motorway network. Thus, Ludwigsfelde is an interesting logistics location. The city’s railway station islinked to the regional railway network, offering connections to Berlin and Potsdam. The closest passenger airport is located in Berlin, which can be reached within 30 km.

0

Location


31.03.2013

14974 Ludwigsfelde 01.02.2011

Teltow-Fläming (Rural District)

Germany

Brandenburg



10.3%

3,019

Ludwigsfelde Macro Location

5.0

Micro Location

380

The property is located at the residential and office street, Potsdamer Straße, close to the A10 motorwayand the city centre in the western part of the city. The town hall is located only 500 m from the property.The property is highly visible and dominates the area to some extent. The property is surrounded byresidential buildings, but there are also retail warehouses, for example operated by Rossmann, directlynext to Potsdamer Straße. Thanks to the underground garage, many visitors of the local market locatedin front of the town hall, use the property for parking purposes, increasing the footfall of the property.However, the market takes place only twice a week.


1.0%

89.4495.39

3.6%

459

8.1%

Structual Data

abc


24,150

14974

22177

2,511,525161,546

Ludwigsfelde

-1.8%

11,310

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Potsdamer Straße 51 31.03.2013

01.02.2011

Germany

No Suspicion

According to information from the local planning authority, a legally binding development plan exists,entitled "Nr. 2 Sport- und Einkaufszentrum Ludwigsfelde" and dated 10.10.1994, with the followingregulations: the subject site is located in a special zone (SO). The site coverage ratio is limited to 1.0.


TPL Ludwigsfelde S.aá.r.l., Luxemburg

Land Register

4807 150, 152159, 161

15/130, 15/13215/133, 41154, 155

157

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan


Source: Cadastral plan on a 1 to 1,500 scale, dated 27th December 2010

Matrix Portfolio

14974 Ludwigsfelde

SO (special zone)

n.a.

3 a/b

Sheet Plot Parcel

n.a.

Tenure

Site servicing


0 m²

1.0

Town Planning

Fully serviced


Irregular

The property has an even topography and irregular shape. It is accessible from the north-east, south-east and north-west. According to information provided by the city of Ludwigsfelde, the site is notregistered in the register of contaminated sites.In Brandenburg, there are no building encumbrances. Instead the muncipalities obtain personaleasments, which are registered in the land register in divison 2. Thus, we assumed the subject propertyto be free of any building encumbrances.

Limited personal easement in favour of the city of Ludwigsfelde prohibiting that certain parts of the property may be built on.Limited personal easement right of way in favour the owner of the plot 15/132.Limited personal easement to operate a self-service department store on the plot in favour of Kaufland Stiftung & Co. KG, Neckarsulm.


Land charge in the amount of € 16,798,646.00 in favour of Bank of Scotland.

Local Court of Zossen, land register of Ludwigsfelde

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



76.23

3.6%

abc


14974 Ludwigsfelde

Name14513 Teltow, Oderstr. 29

Competitor Overview

Competitor Map

Self-service dep. store



PotentialAddress



Page 4 of 12



15,179

Low

00

Low11.20 km




29,524

11,310

Real


14480 Potsdam, Zum Kirchsteigfeld 2Real0

15834 Rangsdorf, Klein Kienitzer Str. 2Real Self-service dep. store 6,525 m²

10,767 m² 13.90 km Low0

11,169

95.39

15,179

00

0


0



01.02.2011


31.03.2013

00

0

0

0

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


01.02.2011

31.03.2013

Matrix Portfolio

Turnover analysis

There is no direct competitor within Ludwigsfelde or the primary or secondary catchment area. The neighbouring property next door has a bank and a retail use on the ground floor, but is not considered to be real competition. However, the property is considering incorporating the same product range as the subject property.

Main competitors

14974 Ludwigsfelde


0

The rents in retail agglomerations are linked to the achievable turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective industry. The productivity varies between approx. € 1,000/m² up to more than € 10,000/m². We have been provided with turnover figures from tenants such as s.m.s. shopping macht Spaß GmbH, Deichmann, Floristik´99, among others. For Kaufland, we have also been provided with turnover figures. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Hence, we believe that a market rent on contractual level is achievable after the end of the lease contract. Please also refer to the rent/turnover analysis on page 8.

abc

Competition Comment

Approximately 15,000 inhabitants live in the secondary catchment area. This area is dominated by the subject property as there is no other self-service department store. Within the broader tertiary catchment area, there are 59,000 inhabitants and still only one competitor, which increases the customer potential to 24,500 potential customers per self-service department store.

However, we think that the property will mainly attract customers from the primary and secondary catchment area, but this is sufficient for this property. Thus, there are no direct competitors.

Only small supermarkets or discounters compete for the non-food customers. Consequently, we assess the level of competition to be below average and that the customer potential is sufficient.

With regards to turnover rents, we considered the current turnover rents to be sustainable in the long run for the property’s income.

0

The subject property is a self-service department store situated in a city centre location of Ludwigsfelde. The depth and breadth of the product range is very good. The property dominates the primary and secondary catchment areas, which should be sufficient for operating a self-service department store. Thus, the rental area of Kaufland can be regarded as relatively unproblematic. In the unlikely case that Kaufland should vacate the site, the property could be re-let to other self-service department store chains such as real or Marktkauf. We assumed that the tenant Kaufland will exercise its three options, each for five years, until 2037 due to the low contractual rental level. We therefore think that this location should be sustainable.


The property, which can be considered a largest competitor within Ludwigsfelde, is shown above. It comprises six retail units including a Penny discounter and a large drugstore operated by Rossmann. The overall size is however significantly smaller than the subject property.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month


1.80

€ 2,687

30 transact Elektronische Zahlungssysteme GmbH

Retail10 HAARMEX.DE Elduran Meryem

11 Vodafone D2 GmbH

Let

Page 6 of 12

GT I PM

20.10.2014

52

Other Units

Retail

5 Kaufmann

3 Vacant

5,940

17.00

39.89

Retail 5.49

0.00

2 Stadt Ludwigsfelde Retail

pays VAT

21.09.2017

75%

100%

Start

31.03.2013Potsdamer Straße 51

Tenant

Matrix Portfolio

01.02.2011


TenantLeaseArea

Let

Vacant

31.07.2014Yes

22.09.1997


1 Johae Fleischprodukte GmbH & Co. KG Retail 67

/ month Probability

125


Let

Retail

8 Apollo Optik GmbH

14 s.m.s. shopping macht Spaß GmbH - Jürgen Menzel

6 Kaufmann

01.08.2008

No

75%

Retail

Yes

€ 864

GT I PM

4 Kaufland Warenhandel

Office 51

2,031

Let

Retail

51

19.10.2005

12.78

€ 3,666

€ 0

Let

Let Yes

GT I PM

14974 Ludwigsfelde

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 94,890

102

Let

Let

407Let

€ 1,635 09.10.2015

€ 1,374

30.09.2017

21.10.2005

31.12.2015

01.10.2007 30.09.2027

€ 1,402 02.04.2009

01.01.2010

12.10.2017

31.12.2013

31.07.2013

75%

01.10.1997

31.03.2014

30.09.2027

30.06.2014

30.09.2027

75%

100%

100%

0%

75%

75%

31.05.2019

75%

01.06.2004

GT I PM

75%

75%

75%

GT I PM

Yes

Yes

GT I PM

GT I PM

abc

GT I PM

75%

75%

75%

75%

75%

75%

12,631 m²

GT I PM

31.12.2014

GT I PM

0%

75%

75%

75%

75%

13.06.2019

GT I PM

100%

75%

75%

GT I PM30.09.2017

GT I PM

75%

12.10.2013

GT I PM07.09.2017

GT I PM

GT I PM14.10.2017

GT I PM09.10.2016

14.06.2004

13.10.2007

10.01.2005

01.04.2012

75%

13.06.2019

75%

75%n.a.

13.08

13.49

9.00

Yes

Yes

16.55

27.14

Yes

Yes

117 € 2,617

€ 4,820536

22.40

18.10.2014

€ 32,586

GT I PM75%

Total

36Let

29 Deichmann SE Storage 39

31 Schwarz Außenwerbung GmbH

Let

€ 5,205

LetRetail

13 Ms. + Mr. Cetinkaya & Mr. Özyurt Retail

€ 137

15 Wendorff

GT I 12 Naser Retail 65 € 1,069 Yes

M GT I PM23.16 31.03.2022

GT I 131 € 1,835 Yes 01.10.200713.96 30.09.2017

€ 825

Retail 173 € 5,434 Yes 08.09.1997Let 31.37

16 Wohnungsgesellschaft Ludwigsfelde mbH Retail 131 € 551 Yes 13.10.1997Let 4.22

17 Zebra Gastronomie und Automaten GmbH Retail 167 € 1,539 Yes 01.09.2003Let 9.21

18 tabacon Franchise GmbH & Co. KG Retail 45 € 1,293 Yes 10.10.2006Let 28.69

19 Floristik´99 Retail 63 € 2,181 Yes 01.10.2007Let 34.82

20 Takke Commercial 833 € 1,028 Yes 01.08.2006Let 1.23

GT I PM21 Takke Commercial 162 € 179 Yes 01.08.2006Let 1.10 31.07.2013

GT I PM22 TEDI GmbH & Co. KG Retail 266 € 2,452 Yes 21.04.2004Let 9.22 20.04.2016

GT I PM23 Anh Nguyet Tran Retail 55 € 651 Yes 14.09.2012Let 11.76 30.09.2017

GT I PM24 AWG Allgemeine Warenvertriebs-GmbH Retail 533 € 4,796 Yes 01.10.1997Let 9.00 30.09.2017

GT I PM25 Steinecke´s Heidebrot Backstube GmbH & Co. KG Retail 72 € 5,100 Yes 01.10.2007Let 70.47 30.09.2014

GT I PM26 Frisör Klier GmbH Retail 64 € 1,950 Yes 01.10.2007Let 30.57 30.09.2017

GT I PM27 Gürkan Retail 44 € 1,058 Yes 01.09.2004Let 23.81 30.11.2016

M GT I PM28 Deutsche Bank Retail 196 € 3,082 n.a. 30.08.2012Let 15.72 30.06.2017

Yes 14.06.2004Let 3.50

1 € 56 No 01.01.2007Let 56.26

Other Units 1 € 596 NoLet 595.83


33 Kurzzeitmieter Other Units 1 € 664 00.01.1900Let 664.42

0%34 Mall Income Other Units 1 € 60 00.01.1900Let 59.90 0%

M GT I PM35 Döbelin Retail 78 € 1,499 n.a. 01.04.2012Let 19.31 75%

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

01.02.2011



Tis9



€ 1,017

abc

5 75%€ 100 18

0 0 0 0%€ 0.00

0

€ 0 0 0

3

0 0

35 Döbelin Retail 78 € 15.00 € 1,164

34 Mall Income Other Units 1

33 Kurzzeitmieter Other Units 1 € 0.00 € 0 € 0 0

0 0 0 100%0 0

0 0 0%

32 FOTOFIX Schnellphotoautomaten GmbH Other Units 1 € 0.00 € 0 € 0

0 3 5 100%12 6 31 Schwarz Außenwerbung GmbH Other Units 1 € 595.83 € 596 € 100

0 3 5 100%12 6 30 transact Elektronische Zahlungssysteme GmbH Other Units 1 € 56.26 € 56 € 100

0 3 5 75%18 12 29 Deichmann SE Storage 39 € 3.50 € 137 € 0

0 3 5 75%18 12 28 Deutsche Bank Retail 196 € 10.00 € 1,960 € 100

0 3 5 75%12 6 27 Gürkan Retail 44 € 25.00 € 1,111 € 100

0 3 5 75%12 6 26 Frisör Klier GmbH Retail 64 € 25.00 € 1,595 € 100

0 3 5 75%9 3 25 Steinecke´s Heidebrot Backstube GmbH & Co. KG Retail 72 € 60.00 € 4,342 € 100

0 3 5 75%18 12 24 AWG Allgemeine Warenvertriebs-GmbH Retail 533 € 8.00 € 4,264 € 100

€ 100 0 3 5 75%18 12

3 5 75%18 12

23 Anh Nguyet Tran Retail 55 € 9.00 € 498

Retail 266 € 9.00 € 2,395 € 100 0

0 3 5 75%24 18

3 5 75%24 18

21 Takke Commercial 162 € 1.00 € 162

75%12 6

20 Takke Commercial 833 € 1.00 € 833 € 25 0

5

19 Floristik´99 Retail 63 € 27.50 € 1,723 0 3 5

€ 25.00 75%

0 3 5 75%18

0 3 12 6

€ 8.00 € 1,337 € 100

12 6

€ 100

12

75%

18 12 0 3 5 75%

0 3 5

75%

0 3 5 75%

0 3 5

0 6

0 3 512

50

75%

€ 100

75%

75%

5 75%18

0

12

12 6

€ 100

75%

3

0

5

3

5

18

0 18

12

75%

18

12 5

3 12

3

3

75%

0

3

5

75%

75%

3

0

75%

5

75%

3 5

5

100%

3

18€ 50 12

6 53

0 10

€ 100

€ 100

Total

22 TEDI GmbH & Co. KG

13 Ms. + Mr. Cetinkaya & Mr. Özyurt

€ 100

€ 100

€ 100

€ 100

36

€ 100

€ 100

12 14 s.m.s. shopping macht Spaß GmbH - Jürgen Menzel Retail

16 Wohnungsgesellschaft Ludwigsfelde mbH

Retail15 Wendorff

Retail

Page 7 of 12

€ 86,85712,631 sqm

Term**

Matrix Portfolio

Re-letting

€ 4,284

€ 1,019

€ 25.00

€ 1,12745

125

131

173

€ 100

167

Retail

€ 10.00

€ 712

6 Kaufmann

€ 20.00

18 tabacon Franchise GmbH & Co. KG


Retail

Retail

Retail

Retail

8 Apollo Optik GmbH Retail

67

3 Vacant Office

Retail

2 Stadt Ludwigsfelde

1 Johae Fleischprodukte GmbH & Co. KG

536

9 Deichmann SE

12 Naser

Retail

17 Zebra Gastronomie und Automaten GmbH

10 HAARMEX.DE Elduran Meryem

11 Vodafone D2 GmbH

Retail

Retail

2,031 € 1.80

Market

3

0 0

0

3

9 0


€ 5.50

€ 255

€ 32,669

117

€ 37.50

51

Rent

€ 20.00

12

€ 100

€ 0

€ 5,197

18

€ 25

€ 646

€ 551

€ 3,213

€ 4,073

€ 4.22

€ 30.00

€ 1,291

€ 9.00

€ 10.00

€ 10.00

65

131

4 Kaufland Warenhandel Retail 5,940

5 Kaufmann 51 Retail

102

52

€ 3,666

12

€ 100

€ 27.50

€ 5.00

€ 1,125

12

18

€ 10.00

€ 8.00

12

Market

€ 100

14974 Ludwigsfelde

Retail

sqm/unitTenant Name

Retail € 25

€ 100


Area Category

407

€ 1,314


0

15

6

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

2AA 1197


0.00

0.00

6.88

0.001.000.00

1,141,742

3.50

0.00%

Rented€/year

00

-100.0%

0.0%

0.00

€/month €/year0

0.00

12,580

01,642

0

3,059

0

0

0

0.00%0.00%0.00%

100.00%%

Vacancy Rate

0

11,546

14974 Ludwigsfelde

00

m²Use Category

Rent RentMarketRent


8.7%1,017,8095.00

0

5111,546

Market

01,106,035

€/month

DIY

Office

0

51

0

25584,817

0.40%

7.35

0

3,059€/m²/month

5External parking

Rent

0

ContractualRent

€/year

0.00%5

0.00%

0.00%0

5139

0.00%

Matrix Portfolio

Potsdamer Straße 51 31.03.2013

0

0995Commercial

0

Contractual

0

00

Potential

Area Vacant

0

€/m²/monthRent

0.00%0

Rent

00.00%


Use Category

Germany

01.02.2011

Capital indicator

n.a.


Comment


15,796,730 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland. According toDun & Bradstreet (D&B) Rating as at 01.01.2011 Kaufland Diensleistungs GmbH & Co. KG has a verylow credit risk. The risk of insolvency (D&B Score) within the next 12 months compared with otherGerman companies is assessed to be low, i.e. 97% of businesses on the German database have thesame or higher risk of failure.

Rent p.a.

5,940 m²


2.5%

2.5%

5.49

5.50

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

111.1%9.7%

7,82565286,857

130.421,042,279

0.0%0.0%0

0.0%

0

0

0

0.0%00.0%

0

8.87

6.65

0

34%

0


14.5 years

~ 4,200 m²

0 00


Main tenant

€ 391,032


Tenant name

4.43

Storage0



7.54275.28


01,207

0 0137

11,943 21.3%0

14,4890

14,489

1,642

m²

995

Property Analysis

0 0.0%0.00 0

92,17000.00

7.98

Warehouse

Warehouse

Area Let

12,631

Other Units

00

Residential390

0

0

0.00%

Contractual


0

1,106,035

Retail

0.00


05

Income Analysis

Internal parking

Office

DIYRetail

Storage

94,89016,517

1,138,683

0 0

16,517

1,642

1,376

3.50

1.210.00


External parking

Total parking

€ / m²

5.49

4.43

5.50

6.65

8.87

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

3,761

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is almost fully let to 26 retail tenants with Kaufland as the anchor tenant. The WALT of the property amounts to 7.5 years. The main tenant Kaufland has a share of approx. 34% of the rental income.The rent of Kaufland is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relation to the CPI basis. Kaufland does not pay ground tax, insurance costs,maintenance, or property management. Smaller tenants usually cover these costs with the exception of maintenance costs. Some smaller tenants also do not pay property management but these are the minority.The following tenant's has just extended the lease contract: Kaufland until 09/2027, Apollo Optik until 05/2019, Floristik´99 until 09/2017 and Döbelin until 06/2014. Furthermore, there are three new tenants:Deutsche Bank has singed a lease contract over 160 m² until 06/2017. Cetinkaya & Özyurt have singed a lease contract over 36 m² until 03/2022. Anh Nguyet Tran has singed a lease contract over 55 m² until09/2017.

0 €

0 €

€ 5,688€ 19,607

€ 5,780


€ 0

10.1%

6.10%

% of Gross

€ 10.00 /m²/p.a.

€ 12911.4%

0 €

€ 5,511 0 €0 €€ 5,424

0 €€ 5,332

9.7%€ 684

€ 18,347 10.0%10.3%€ 4,916

€ 17,802

€ 424

0 €

€ 0.00 /m²

Management costs


€ 8.66 /m²

€ 16,799€ 5,238

€ 18,052

6.67%



€ 115,156€ 112,837€ 115,609

€ 864

€ 1.35 /m²

% of Gross

0.00%

€ 17,080

€ 15,634


per year


€ 5.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 6.65%

7.00%



Assumptions

0

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the remaining lease term with the well-known anchor tenant, the good location,the low vacancy rate and the good condition of the subject property in Ludwigsfelde.

01.02.201114974 Ludwigsfelde

Germany

31.03.2013

€ 0.40 /m²€ 0

0.44%€ 17,743€ 1.40 /m²

€ 0.00 /m²€ 5,066

per year

Year 8

€ 18,674€ 16,986

€ 78,011€ 76,779

€ 15,815

€ 71,842Year 3

€ 17,139

% of Total

Year 7

€ 5,083€ 17,150

€ 120,040

€ 110,430

€ 5,421

Total

€ 75,581 € 16,664



Other Non-

€ 010.35%

€ 0.40 /m² € 5,066

Insurance


1.70%

Market Rent

0.00%9.60%

1.50%€ 1.24 /m²€ 1.40 /m² € 17,743

€ 109,362

per year

€ 8.54 /m²


€ 107,916

€ 5,154


Gross Revenue

€ 16,291 € 20,556 0 €€ 17,708€ 81,687 € 20,861

Year 10€ 303

1.56%1.50%

Market Value

€ 79,265

Year 4

Year 6

€ 5,956

€ 16,551

Year 11€ 80,494

€ 20,242Year 9

GroundManagementTax

Maintanance

€ 17,163

CostsCosts

€ 73,123

Year 1Year 2

€ 69,711€ 70,688

€ 19,922

€ 74,384 € 18,996€ 19,301

Year 5

€ 17,094

10.7%

0 €€ 5,598

€ 126,51511.9%10.8%

0.49%

0 €

€ 5,753€ 5,869

€ 5,016

€ 1,107€ 128,963

€ 123,55110.8%

0 €

10.5%

€ 123,488

Year after 2021

€ 117,186

abc

€ 2,294 € 123,05411.2%

Page 9 of 12

Inflation

after 2021



Market

9.7%10.3%

10.0% 10.1%

11.4%

10.5%11.2%

10.8% 10.8%

11.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







6.50%


€ 813,311-€ 3,692

-€ 15,840

-€ 9,356

-€ 128,963


€ 15,100,000€ 1,138,683

€ 1,124

Page 10 of 12

8.02%

€ 860,460

€ 7.51 Total

Total € 14,200,000

6.82%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 01.01.2011, the main tenant, Kaufland Dienstleistung GmbH & Co. KG, has good covenantstrength, which ensures a secure cash flow for the remainder of the lease term until at least 2027. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance, condition andbuilding age, third-party usability, competition situation and location. For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent.

-€ 2,220

abc

Valuation Comment

€ 1,042,279 per m²

9.57%

We have been provided with updated information regarding necessary capital expenditures. Capital expenditures for repairs in the amount € 1,027 have been taken into account in Year 1. For the periods Year1,Year 2-5 and Year 6-10, these are covered by our maintenance costs. Regarding comparable rents, we have had recourse to evidence of similar areas situated in the comparable regions and locations.Furthermore, we have analysed comparable transactions. Please refer to the section "Investment Comparables". Taking into account the very good micro-location in a small city in eastern Germany but still close toBerlin, we have the opinion that this property should be transacted at a multiplier slightly lower than the middle of the range of the observed comparables.

6.19%

Year 10 € 1,086,080€ 1,139,567

€ 0

€ 1,155,743Year 9

-€ 117,186

TIs and

-€ 115,609


€ 1,132,388 -€ 4,627

-€ 11,225-€ 23,616

€ 1,019,524

€ 993,733 € 0 € 993,733

Income

-€ 18,460

-€ 9,300-€ 1,903 € 1,013,021

€ 1,016,028

Net

31.03.2013


€ 995,906€ 892,031€ 966,226

Year 6Year 7

-€ 8,556

€ 934,309

-€ 110,430Vacancy

Year 5

€ 1,151,134 € 1,142,578Year 8

Year 4

Year 2-€ 6,238

Gross

€ 1,126,134

Market Value



€ 1,016,079

€ 942,547

7.34%per m²

€ 1,103,380

-€ 123,488-€ 123,054€ 0 -€ 2,557


€ 15,017,364

€ 1,195

€ 15,108,152-€ 126,515 -€ 52,425€ 1,180,510

Rent Overview



€ 15,108,152


per m²/month

€ 1,053,995

€ 699,262

-€ 12,212

-€ 1,424 € 0


-€ 112,837 € 1,019,551

Costs

€ 865,110

€ 957,117

Abatements

€ 979,194

-€ 4,823

-€ 123,551€ 1,005,742

-€ 13,666€ 0 € 979,829

€ 997,086

Year 3 € 1,138,626

€ 942,410€ 578,485-€ 13,877

-€ 120,040

€ 622,092

€ 1,119,943

Revenue€ 1,143,344

Turnover

Germany

€ 1,004,334

Revenue

€ 1,141,934 € 0

€ 0 € 1,054,349

Rent

€ 0

€ 1,148,394-€ 21,991-€ 5,050 € 0Year 1

€ 1,156,580

€ 1,145,271

Year 11 € 1,182,730

€ 1,110,919

€ 6.88

€ 0-€ 12,348

€ 1,164,245 -€ 78,165 € 0

€ 1,144,232-€ 71,785

-€ 41,891

€ 513,622

Yield Overview

€ 1,032,914

€ 1,029,076-€ 115,156

€ 1,112,343

14974 Ludwigsfelde

Cash Flow

Non-Total

€ 0-€ 55,389

€ 0

€ 7,888,331

-€ 16,176 € 0-€ 9,884

Present

€ 622,109

€ 647,573

-€ 5,116

Leasing

01.02.2011

Matrix Portfolio

Value @

6.8%

6.6% 6.7% 6.8%

6.2%

6.6% 6.5%6.7% 6.7%

6.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



01.02.2011

abcPage 11 of 12

View of the underground garage

View of the main entrance

Matrix Portfolio

External view

14974 Ludwigsfelde

Photos




31.03.2013

External view

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 6,250 m²Self-Service Department StoreFlower store

16,866 m²

123 m²Optician62 m²

0 m²74 m²Haircutter

Real BitterfeldSchönebeck (Elbe)

Halle0

Local chain

0Frisör Klier

Floristik '99

0

Freital

0

Purchasing power of 83.6

€ 0

€ 22.67 /m²€ 2,743

€ 0.00 /m²

Total Rent p.m.

€ 2,211 € 29.88 /m² Similar purchasing power, other federal state€ 22.30 /m²

Purchasing power of 75.8Rental income includes sub tenants with higher rents

€ 1,406


Area

Purchasing power of 93.5€ 6.85 /m²

€ 38,750 € 6.20 /m²€ 115,532

€ 5.29 /m²€ 104,150

CommentSimilar purchasing power, other federal state

Rent p. sqm€ 8,136 € 4.52 /m²


14974 Ludwigsfelde

City


Leasing Comparables

1,800 m²

Leasing Market

Real


31.03.2013Potsdamer Straße 51

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

SalzgitterWal Mart


19,688 m²


BraunschweigCrimmitschau



Investment Market




Date of Transaction



01.02.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 3 11 to 15 years Macrolocation 3 Average location and catchment areaLettable Area 3 Between 10,000 and 12,500 m² Microlocation 3 Average micro locationProperty condition 2 Below average building condition Commercial activity 3 Limited commercial activity nearbyGeneral impression 2 Below average general impression Competition 2 High competition level

Investment Quality

WALT 3 WALT three to seven years Investment market 3 Average property marketOver- / underrent 2 Slightly overrented (5% to 15%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis


31.03.2013


Key Figures

Hohenloher Straße 2

2001


Building

Liquidity

Valuation Results

Location


6.38%

Discount Rate

6.54%

excluding capital

expenditures6.85%



4.3 years

0

Well-known anchor tenant

Good tenant mix

Good connections to the motorway network via the A 6


€ 10.59

1974


74172 Neckarsulm

Property Summary

Retail Park

Germany

28.01.2011

Property type


Adler Modemärkte GmbH


1.2%

Main tenant


11.0%

€ 1,415,752

€ 1,305,298



Strengths


Some vacant areas

Increasing maintenance required due to the building age Prolognation of the lease contract after expiry Drop out of tenants before expiry of the contracts

0

Basement area in the Adler unit

€ 10.37 / m² / p.m.€ 17,200,000

7.30%

The property, which consists of three parts, was built in 1973 and was completed in 1974. In the west of the property, there is a 1 to 2-storey building with a basement level. Retail stores and shops are located in thefirst floor. In the ground level are administration and stockrooms. Furthermore there are some vacant areas in this property. This main building has two entrances: one is located near the parking area and anotherone is located by the street corner "Hohenloher Straße" and "Heilbronner Straße". Adjacent to this building, a small 1-storey building is located with some small retail stores. These small retail stores have their ownentrances. In the east, there is another small 1-storey building with the use carwash and offices. This is currently rented by TÜV and Ümit Ebem. The external area offers a large parking area. The property is opento all sides and includes a ramp to the basement level for deliveries. The roofs are mainly flat. The panels consist of prefabricated multi-layer concrete panels with thermal insulation.

0

7.12%

Market Rental Value

11.87

€ 1,278,184 p.a.

High level of competition (Rewe, Aldi and Kaufland nearby)Weaknesses

Matrix Portfolio

Building almost 40years old (without refurbishment)

€ 1,636 per m²


0

The carwash and TÜV building is designed with simple brickwork walls. The main tenants are Adler and Lidl.

equals toequals to

Market Value






0

€ 0.90

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






197.82

Efficient industrial companies, innovative service providers and medium-sized companies are located inNeckarsulm and are known internationally. Well-known companies located in Neckarsulm include Audi,Lidl and Kolbenschmidt-Pierburg. Furthermore, Neckarsulm is also recognized as very good site for theIT branch.

Micro Location

Neckarsulm is located in the north-east of the federal state Baden-Wurttemberg. The state capital,Stuttgart (population 602,000), is only 59 km away and Mannheim (population 311,969) is only 77 kmaway. The closest motorway is the A6, connecting to Amberg in the federal state Bavaria to the east and toSaarbrücken near the French border to the west. The motorway can be accessed in less than 2 km.Furthermore, the A81, connecting to Würzburg to the north-east to Singen (close to the Swiss border) tothe south-west, can be reached within a 7 km distance. Neckarsulm has a train station, which connectsNeckarsulm to the cities of Stuttgart and Munich via regional trains. The nearest airport offering connections to national and international destinations is Stuttgart, about 59km away. Furthermore, the Karlsurhe airport is located in a distance of approx. 91 km.

0

Location


31.03.2013

74172 Neckarsulm 28.01.2011

Heilbronn (Rural District)

Germany

Baden-Wurttemberg



4.2%

7,381

Neckarsulm Macro Location

5.0

Micro Location

280

The property is located in the south of Neckarsulm near the motorway A 6. The surrounding area ischaracterised by discounters like Aldi, Rewe and Zeeman. The property is located along the HohenloherStraße and is very good visible. A small bus station is situated next to the western side of the property.The property itself is located beside a residential area.


1.2%

106.68101.64

6.5%

561

3.9%

Structual Data

abc


26,598

74172

1066299

10,744,921328,731

Neckarsulm

0.8%

12,410

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Hohenloher Straße 2 31.03.2013

28.01.2011

Germany


According to information from the local planning authority, a development plan exists, entitled "SüdstadtNr. 14.01/5" and dated 30.07.2004, with the following regulations: the subject site is located in specialzone ("Sondergebiet"). The cubic density (Baumassenzahl, BMZ) is 4.0 and the site coverage ratio(Grundflächenzahl, GRZ) is 0.8.


TPL Neckarsulm S.á.r.l., Luxembourg

Land Register

4771 1900

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan

Surplus land value (net) € 92 /sqm


Matrix Portfolio

74172 Neckarsulm

SO (special zone)

4.0

NO 6512

Sheet Plot Parcel

n.a.

Tenure

Site servicing

Ground lease expiry€ 441,600

4,800 m²

0.8

Town Planning

Fully serviced


Almost square

The site consists of one plot 1900: The site has an even topography. The site is accessible from thenorth by car and the east by foot. The site has a trapezoidal shape. According to the Environmental DueDiligence Report, dated July 2007, a filling station was installed east of the mall in 1974. Because of thisuse, a suspicion of contamination exists. Operation of the filling station ceased in 1995. Later, thislocation was used as vacuum cleaner area, car repair shop and carwash. At the moment, a part of thisspace is rented by the TÜV and Ümit EbemFor the purposes of this valuation, we have assumed that the subject property is free of any soil orbuilding contamination. Furthermore, for purpose of this valuation, we assumed the land value pursuantto the committee of experts of Neckarsulm.

Limited personal easements (regarding the omission of the food offer on an area of more than 1200sqm sales area) in favour of Kaufland Stiftung & Co. KG, Neckarsulm.


Land charges in the total amount of 20,235,731 in favour of Bank of Scotland (branch Frankfurt),

Local Court of Heilbronn, land register of Neckarsulm

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



197.82

6.5%

abc


74172 Neckarsulm

Name74172 Neckarsulm, Rötelstr. 35

Competitor Overview

Competitor Map

Hypermarket



PotentialAddress



Page 4 of 12



12,563

Medium

Highlow

2,631 m²

low3.60 km



74074 Heilbronn, Stuttgarter Str. 85Handelshof


19,669

12,410

Kaufland

Rewe

236,025

1,900 m²3,000 m²



6.50 km6.60 km

74189 Weinsberg, Haller Str. 5974074 Heilbronn, Schmollerstr. 42 Hypermarket

74076 Heilbronn, Etzelstr. 38-44

74072 Heilbronn, Olgastr. 57-75

HandelshofHandelshof

74080 Heilbronn, Neckargartacher Str. 111

Handelshof

Rewe

74177 Bad Friedrichshall, Industriestr. 12

Hypermarket 1,991 m²2,900 m² 4.40 km low


Rewe

35,234

Handelshof

101.64

74172 Neckarsulm, Hohenloher Straße 10

138,194

Hypermarket7.40 kmHypermarket74248 Ellhofen, Bahnhofstr. 44

E-aktiv Markt ÜltzhöferE-neukauf

74081 Heilbronn, Mauerstr. 78-90 7.00 km

0.30km


Hypermarket 0.10km

5.30 km

2,500 m²2,400 m²

74172 Neckarsulm, Am Wildacker n.a.n.a.

Aldi/Kik Hypermarket00

High


0



28.01.2011


31.03.2013

lowlow

low

low

low

low

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


28.01.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a hypermarket located east of the subject property. The main tenant is REWE. The property is a serious competitor.

Main competitors

74172 Neckarsulm


0

The rents in a functional retail agglomeration are linked to turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective branch. The productivity varies between approx. 1,000 €/m² up to more than 10,000 €/m².For the evaluation object there are turnover rents for several tenants. We have been provided with the turnover rents for the tenants dm Drogerie and Härdtner. For the purposes of this valuation, we have assumed that the turnover rent are sustainable and have included until the end of the respective lease agreement. We have not been provided with any turnover figures for Adler. For the purpose of this valuation, we have assumed that the area productivity of Adler is in a healthy range and that the rent-to-turnover ratio is in the region of 12,3%, which is slightly above the range of 6-12% for fashion stores.

abc

Competition Comment

The catchment area can be differentiated into primary (0 – 5 min driving distance); secondary (5 – 10 min) and tertiary (10 – 15 min) catchment areas. Approximately 35,230 inhabitants live in the primary catchment area. The density of hypermarkets is relatively high in the primary and secondary areas, the competition eases in the tertiary catchment areas. In a spatial environment of less than 1.5 km, there are three competitors.There are two competitors in the vicinity. As the main tenants of the valued property include Adler, Takko Fashion and Lidl, the neighbouring discounters, such as Aldi, Rewe and Kik pose as direct competitors. The discounter Rewe and the small retail park are apparently newer than the valued shopping centre. They also target the same customer segment with the specific range of products. In contrast to its competitors, the strengths of the valued property include the mall’s better visibility from the street, the higher number of parking spaces and the concentration of the existing tenant mix. Another competitor is1.3 km away. This is a big retail park with the main tenant Kaufland. A shopping mall connects directly to this property, with tenants such as Saturn, C & A, Toom, Deichmann, Walmart and various other restaurants and shops. The competing property has signposts on the motorway, and offers very good and ample parking. It is clearly also in very good condition. The valued property has a much smaller size and appeals to a slightly different audience, because there are some shops from the low-price segment.Even though the properties may attract different customers and have slightly different primary catchment areas, the catchment areas strongly overlap, resulting in a high number of retail hypermarkets for a city with only 27,000 inhabitants, which can be problematic. Overall, it can be said that the competition level in Neckarsulm is high, especially due to the existence of an relative hight retail density.

Due to the rent-to turnover ratio above the general range and the internal layout of the Adler unit with a share of rather substandard areas in the lower storey, we have aplied a market rental value which is lower that the contractual rent. (The precisely figures regarding the productivity and rent-to-turnover ration an page 8)

0

The property in Neckarsulm is located in the direct vicinity of several serious competitors. The subject property currently has a retail use. Advantageous for this property are the high number of parking spaces and the centrality of the tenant mix. The problems, however, are the age of the property, the vacant space and the high density of competitors. Regarding the third-party use, the current use is considered the best option.The leasing capacity is for this property medium because of the building age and the high density of competitors. Excluding the area of the Adler. The leasing capacity for this area is not very good. Because this area extends over two floors and one of them is the enlarged basement area.


This competitor is an small retail park located east of the subject property. The property is a serious competitor.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 mister*lady GmbH

16.70

€ 1,685

30 Lidl Vertriebs-GmbH & Co.KG

Other Units10 dm-drogerie markt GmbH + Co. KG


Let

Page 6 of 12

GT I PM

30.09.2016

1,282

Storage

Other Units

5 Meister Rapid e.K. Inh. Geviye Taber

3 Lidl Vertriebs-GmbH & Co.KG

181

35.79

28.36

Retail 5.51

8.61

2 Mustafa Kabayel Retail

pays VAT

23.03.2023

30.11.2015

75%

75%

Start

75%

31.03.2013Hohenloher Straße 2

Tenant

Matrix Portfolio

28.01.2011


TenantLeaseArea

Let

Let

24.07.2014Yes

01.12.2010

Yes


1 Gabriel Retail 59

/ month Probability

100%

1

9 dm-drogerie markt GmbH + Co. KG Retail

Let

Retail


14 Härdtner GmbH

6 Schwaderer

25.08.2007

24.03.1997

Yes

GT I PM

75%

Retail

n.a.

€ 833

GT I PM

4 P&M Trends

Retail 1,200

73

Let

Retail

23

21.09.2007

13.41

€ 1,226

€ 10,341

Let

Let Yes

GT I PM

74172 Neckarsulm

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 117,979

99

Let

Let

712Let

€ 4,211 27.04.2016

€ 2,396

14.06.2017

01.10.2006

30.09.2017

01.12.2012 01.12.2013

€ 11,598 01.10.2002

01.06.2007

20.09.2017

23.03.2023

31.03.2017

0%

01.06.2007

30.09.2013

31.12.2013

31.12.2013

30.09.2013

31.12.2020

02.08.2014

31.12.2016

31.12.2020

0%

75%

75%

14.10.2020

75%

75%

75%

01.11.2011

30.06.2014

75%

30.08.2014

75%

31.08.2007

0%

GT I PM

75%

75%

75%

0%

GT I PM

Yes

Yes

GT I PM

abc

GT I PM

75%

75%

75%

75%

75%

100%

0%

0%

10,267 m²

GT I PM

GT I PM27.04.2016

GT I PM

GT I PM

75%

75%

0%

75%

14.06.2017

GT I PM

75%

75%

75%

GT I PM31.03.2014

GT I PM

75%

31.12.2016

GT I PM20.09.2017

GT I PM22.09.2017

22.09.2017

01.06.2007

06.09.2007

00.01.1900

21.09.2007

0%

27.04.2016

75%

75%Yes

4210.56

24.19

10.99

Yes

Yes

12.97

9.04

Yes

Yes

M GT I PM

54 € 1,210

€ 5,492500

22.46

31.12.2013

€ 1,000

GT I PM75%

Total

116Let

29 mister*lady GmbH

Let

Storage 24


Let

€ 9,548

LetRetail

13 Härdtner GmbH Retail

€ 64


GT I PM12 Ernsting's family Gmbh & Co. KG Retail 164 € 2,123 Yes

GT I PM48.38 20.09.2017

1 € 1,560 Yes 00.01.19001560.04 20.09.2017

€ 5,600

Retail 61 € 1,900 Yes 21.09.2007Let 31.09

16 Essanelle Hair Group AG Other Units 1 € 138 Yes 00.01.1900Let 138.18

17 Schwäbische Wurst Spezialität. Retail 119 € 2,250 Yes 21.09.2007Let 18.94

18 Schwäbische Wurst Spezialität. Other Units 1 € 1,149 Yes 00.01.1900Let 1149.39

19 Serbetcioglu Retail 64 € 851 Yes 01.04.2011Let 13.35

20 Adler Modemärkte GmbH Retail 3,359 € 35,732 Yes 27.03.1997Let 10.64

GT I PM21 Cosgun Retail 50 € 1,171 Yes 01.05.2010Let 23.32 30.04.2013

GT I PM22 Reno Schuhcentrum GmbH Retail 708 € 8,501 Yes 24.03.2007Let 12.00 23.03.2017

GT I PM23 Reno Schuhcentrum GmbH Storage 121 € 477 Yes 24.03.2007Let 3.95 23.03.2017

GT I PM24 Stuck Storage 47 € 162 Yes 27.06.2005Let 3.47 30.09.2013

GT I PM25 P&M Trends Storage 42 € 91 Yes 01.08.2010Let 2.15 30.09.2013

GT I PM26 Siemens Building Technologiers Storage 68 € 510 Yes 01.12.2002Let 7.53 30.11.2013



Yes 01.06.2007Let 2.68

294 € 0 Yes 24.03.1997Let 0.00

Storage 46 € 136 YesLet 2.99

32 Schwaderer Storage 38 € 97 Yes 01.07.2008Let 2.52

33 Pura GmbH Storage 11 € 56 Yes 01.03.2003Let 5.01

34 KSK Heilbronn Other Units 5 € 285 Yes 10.12.2006Let 63.33 100%

M GT I PM35 Deutsche Plakat-Werbung GmbH & Co. KG Other Units 1 € 221 n.a. 03.08.2009Let 220.83 100%

36 Stadt Neckarsulm Other Units 10 € 1 Yes 01.07.1987Let 0.09 100%

GT I PM37 TÜV SÜD Auto Service GmbH Retail 197 € 906 Yes 15.10.2010Let 4.61 0%

38 Ümit Ebem Other Units 480 € 504 Yes 01.11.2011Let 1.05 100%

39 Ümit Ebem Office 58 € 311 Yes5.36 100%31.12.2020

40 Ümit Ebem Commercial 291 € 1,557 Yes 01.11.2011Let 5.35 100%

41 Kurzzeitmieter Other Units 1 € 918 Yes 01.11.2008Let 917.80 31.03.2017


M GT I PM43 Vacant Other Units 2,150 € 0 n.a. 00.01.1900Let 0.00 00.01.1900

44 VACANT Storage 18 € 0Vacant 0.00





GT I PM49 P&M Trends Storage 15 € 20 Yes 01.01.2013Let 1.36 0%

50 Schmidt Other Units 572 € 651 Yes 01.01.2011Let 1.14 0%

51 Schmidt Other Units 307 € 349 YesLet 1.14 01.01.2011 31.12.2013

52 VACANT Other Units 0 € 0Vacant 0.00

0%53 Parkplatzanzahl External parking 550 € 0 00.01.1900Let 0.00 00.01.1900

0%54 FOTOFIX Schnellphotoautomaten GmbH Other Units 1 € 57 Yes 01.06.2007Let 57.09 30.11.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

28.01.2011



Tis0



€ 640

abc

54 FOTOFIX Schnellphotoautomaten GmbH Other Units 1 € 57.09

0 0

€ 0 0

0%€ 0 0 0

0 1 100%0 0

0 53 Parkplatzanzahl External parking 550 € 0.00 € 0

0 52 VACANT Other Units € 0.00 0 0 0%€ 0 0 0

0

€ 858

0 0 0%€ 0 0 0

0%€ 0

51 Schmidt Other Units 307 € 1.50 € 461

0 50 Schmidt Other Units 572 € 1.50 0 0 0 0

Storage 15 € 1.80 € 26 0

3

75%€ 0 24 15 3 549 P&M Trends

0

75%€ 0 24 12

3 5 75%

0

47 VACANT Storage 26 € 1.80 € 48

548 VACANT Storage 17 € 1.80

75%

0

15 12

€ 0 21

€ 1.8046 VACANT

€ 0 12 15

3

3

5

€ 0

75%

5

45 VACANT Storage 35 € 1.80 € 63

29

0%€ 0 0 0

5

0

5 75%

3

75%3 0

€ 0.00 0

€ 32 € 0 12

€ 0 3

0

43 Vacant Other Units 2,150 € 0.20 € 430

0

42 Mall Income Other Units

41 Kurzzeitmieter

1

44 VACANT Storage 18 € 1.80

0

40 Ümit Ebem Commercial 291 € 4.25 0

Other Units

0 € 0

5 100%€ 25 0

0

100%€ 0 0 0 0

€ 1,236 5 100%€ 25 0

0

0 0

18

39 Ümit Ebem Office 58 € 4.25 € 247

0 0%€ 25 0 18

0 5

0

0 18 100%€ 0

37 TÜV SÜD Auto Service GmbH Retail 197 € 4.25 € 836

0 € 480

0

38 Ümit Ebem Other Units

0 36 Stadt Neckarsulm Other Units 10 € 0.09

480 € 1.00

0 € 1 5 100%€ 0 0 18

5 100%€ 0 0

0 0 5 100%€ 63.33

0

€ 0 0 0

0

0 15

35 Deutsche Plakat-Werbung GmbH & Co. KG Other Units 1 € 220.83 € 221

34 KSK Heilbronn Other Units 5

33 Pura GmbH Storage 11 € 2.25 € 25 € 0 0

0 3 5 75%0 15

3 5 75%

32 Schwaderer Storage 38 € 2.25 € 86 € 0

0 3 5 75%0 12 31 dm-drogerie markt GmbH + Co. KG Storage 46 € 2.25 € 102 € 0

0 3 10 75%0 15 30 Lidl Vertriebs-GmbH & Co.KG Storage 294 € 2.25 € 662 € 0

0 3 5 75%0 12 29 mister*lady GmbH Storage 24 € 2.25 € 54 € 0

0 3 5 75%0 15 28 Siemens Building Technologiers Storage 21 € 2.25 € 48 € 0



0 3 5 75%0 12 25 P&M Trends Storage 42 € 2.25 € 95 € 0

0 3 5 75%0 15 24 Stuck Storage 47 € 2.25 € 105 € 0

€ 0 0 3 5 75%0 12

3 5 75%0 12

23 Reno Schuhcentrum GmbH Storage 121 € 2.25 € 272

Retail 708 € 12.00 € 8,501 € 100 0

0 3 5 75%0 15

3 10 75%0 12

21 Cosgun Retail 50 € 20.00 € 1,004

75%0 15

20 Adler Modemärkte GmbH Retail 3,359 € 8.50 € 28,548 € 50 0

0

19 Serbetcioglu Retail 64 € 12.50 € 797 0 3 5

€ 0.00 0%

0 3 5 75%0

0 0 0 0

€ 20.00 € 2,375 € 100

0 15

€ 0

15

75%

0 0 0 0 0 0%

0 3 5

0%

0 3 5 75%

0 0 0

0 12

0 3 515

50

75%

€ 100

75%

0%

5 75%0

0

15

0 15

€ 50

75%

3

0

0

3

10

0

0 0

0

75%

0

15 5

3 15

3

0

75%

0

3

5

75%

75%

3

0

75%

5

75%

3 5

10

75%

3

0€ 100 15

15 53

0 5

€ 0

€ 100

Total

22 Reno Schuhcentrum GmbH

13 Härdtner GmbH

€ 100

€ 100

€ 100

€ 100

116

€ 100

€ 100

0 14 Härdtner GmbH Other Units


Retail15 Essanelle Hair Group AG

Retail

Page 7 of 12

€ 106,51510,267 sqm

Term**

Matrix Portfolio

Re-letting

€ 5,995

€ 1,981

€ 9.50

€ 0

€ 0

1

1

1

61

€ 100

119

Retail

€ 0.00

€ 5,787

6 Schwaderer

€ 50.00

18 Schwäbische Wurst Spezialität.

7 mister*lady GmbH

Other Units

Retail

Retail

€ 57

1 € 0.00

€ 52Storage

Retail

8 Convenience Concept GmbH Retail

59

3 Lidl Vertriebs-GmbH & Co.KG Retail

Retail

2 Mustafa Kabayel

1 Gabriel

500


12 Ernsting's family Gmbh & Co. KG

Other Units

17 Schwäbische Wurst Spezialität.



Retail

Other Units

73 € 20.00

Market

15

15 0

0

3

12 0


€ 20.00

€ 12,004

€ 3,629

54

€ 20.00

1,200

Rent

€ 27.50

15

18

12

15

12

€ 0

€ 285

€ 0

€ 30

€ 1,681

0

€ 100

€ 2,046

€ 0

€ 1,078

€ 8,544

€ 0.00

€ 27.50

€ 12,183

€ 0.00

€ 12.50

€ 12.00

164

1

4 P&M Trends Retail 181

5 Meister Rapid e.K. Inh. Geviye Taber 23 Retail

99

1,282

€ 1,468

0

€ 0

€ 20.00

€ 10.00

€ 0

0

0

€ 20.00

€ 12.00

0

Market

€ 50

74172 Neckarsulm

Retail

sqm/unitTenant Name

Retail € 100

€ 100


Area Category

712

€ 0


0

0

15

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


2,000


Market rent


1,400 Rents %

Contractual1,200

Market


3% of turnover800

2% of turnover

600 Turnover potential(net)

Sales Area400


based on sales area

5 A 2282


0.00

0.00

10.37

0.004.250.00

1,419,008

2.18

0.00%

Rented€/year

00

26.1%

0.0%

0.00

€/month €/year311

0.00

10,143

022,611

0

3,732

0

0

124

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

9,022

74172 Neckarsulm

00

m²Use Category

Rent RentMarketRent


4.1%1,203,4274.25

0

09,022

Market

3,7321,252,354

€/month

DIY

Office

0

58

0

247100,286

1.21%

11.12

0

2,959€/m²/month


Rent

550

ContractualRent

€/year

0.00%3,532

13.88%

0.00%0

124772

0.00%

Matrix Portfolio

Hohenloher Straße 2 31.03.2013

0

0291Commercial

58

Contractual

0

00

Potential

Area Vacant

550

€/m²/monthRent

0.00%550

Rent

00.00%


Use Category

Germany

28.01.2011

Capital indicator

120.000.000 (total)

Assessment of Adler market rent

Comment


3,240,000 €

The main tenant is Adler Modemärkte GmbH. The Adler fashion stores carry a broad assortment,adaptable fashion for the whole family. Adler is one of the major textile retailers in Germany. Accordingto Dun & Bradstreet (D&B) Rating as at 07.02.2011 Adler Modemärkte GmbH has an small credit risk.The risk of insolvency (D&B Score) within the next 12 months compared with other German companiesis assessed to be low, i.e. 82% of businesses on the German database have the same or higher risk offailure.

Rent p.a.

3,359 m²

Textile stores usually can afford to pay a rent in the range of 6-12% of their net turnover (economically sustainable rent burden) and have a space productivity of about € 800 to € 1,600 (in shopping centers up to €3,000) per m² sales area. The graphic above indicates, how the contract rent of the main tenant 'Adler' and the assumed market rental level can be assessed on usual market ranges and an assumed averagespace productivity of € 1,200 (net).

13.2%

10.6%

10.64

8.50

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

262.9%12.1%

33,5132,793106,515

0.791,278,184

0.0%0.0%0

0.0%

0

0

0

0.0%0-4.2%

0

9.65

7.24

0

30%

0

Adler Modemärkte GmbH

4 years

~ 2,700 m²

0 00


Main tenant

€ 428,783


Tenant name

4.82

Storage0

1,613Petrol Station 0.00


11.632.87

1,236ResidentialCommercial

01,557

0 01,955

14,829 26.0%0

18,6840

18,684

23,457

m²

291

Property Analysis

0 0.0%0.00 0

104,36300.00

11.57

Warehouse

Warehouse

Area Let

10,267

Other Units

00

Residential897

0

0

0

0.00%

Contractual


0

1,252,354

Retail

5.36


03,532

Income Analysis

Internal parking

Office

DIYRetail

Storage

117,979121,627

1,415,752

0 0

121,627

19,355

10,136

2.09

5.350.00


External parking

Total parking

€ / m²

4.82

8.50

7.24

9.65

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

1,200

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is not fully let. There is some area vacant and the remaining area is let to 32 tenants. The WALT of the property amounts to 4.3 years. The main tenant is Adler with a share of approx. 30% of the rentalincome. The property is currently over-rented. This figure included the turnover rents of the tenants dm Drogerie, Takko Fashion, mister Lady, Reno and Härdtner, which we belive to be sustainable until the end ofthe respective lease contracts. Without these turnover rents the property is nearly let at market level. The majority of the tenants pay all costs (including ground tax, insurance costs and management costs) exceptfor maintenance costs for structural repairs. The rest can be apportioned to the tenant in accordance with the German Regulation on Operating Costs. Furthermore, some rental increases due to indexations havetaken place.

0 €

0 €

€ 4,724€ 20,193

€ 4,800


€ 0

8.5%

4.71%

% of Gross

€ 10.00 /m²/p.a.

€ 40912.0%

0 €

€ 4,577 0 €0 €€ 4,504

0 €€ 4,428

8.2%€ 2,693

€ 18,895 7.9%8.1%€ 1,469

€ 18,334

€ 265

0 €

€ 0.00 /m²

Management costs


€ 10.76 /m²

€ 21,093€ 4,350

€ 18,591

5.22%



€ 117,733€ 114,132€ 113,339

€ 3,135

€ 2.07 /m²

% of Gross

0.00%

€ 21,236

€ 19,173


per year


€ 6.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 7.30%

6.85%



Assumptions

0

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken into account such facts as the uncertainty of the main tenant Adler and the period of hislease contract, the worse condition and location (referring to the competitor situation), and the shortWALT.

28.01.201174172 Neckarsulm

Germany

31.03.2013

€ 0.41 /m²€ 0

0.30%€ 18,273€ 1.78 /m²

€ 0.00 /m²€ 4,207

per year

Year 8

€ 19,231€ 21,607

€ 74,941€ 73,757

€ 16,306

€ 69,015Year 3

€ 19,960

% of Total

Year 7

€ 4,221€ 20,577

€ 130,091

€ 112,793

€ 18,262

Total

€ 72,606 € 19,917



Other Non-

€ 08.48%

€ 0.41 /m² € 4,207

Insurance


1.43%

Market Rent

0.00%7.80%

1.50%€ 1.87 /m²€ 1.78 /m² € 18,273

€ 110,454

per year

€ 10.56 /m²


€ 108,390

€ 4,280


Gross Revenue

€ 19,041 € 21,170 0 €€ 20,700€ 78,472 € 21,484

Year 10€ 4,966

1.29%1.50%

Market Value

€ 76,146

Year 4

Year 6

€ 4,946

€ 19,394

Year 11€ 77,326

€ 20,847Year 9

GroundManagementTax

Maintanance

€ 20,694

CostsCosts

€ 70,245

Year 1Year 2

€ 66,968€ 67,906

€ 20,517

€ 71,456 € 19,563€ 19,878

Year 5

€ 19,434

9.5%

0 €€ 4,649

€ 130,56810.1%9.7%

0.33%

0 €

€ 6,343€ 4,874

€ 2,566

€ 3,821€ 128,754

€ 120,5599.2%

0 €

8.8%

€ 125,048

Year after 2021

€ 117,387

abc

€ 2,049 € 122,1919.3%

Page 9 of 12

Inflation

after 2021



Market

8.2% 8.1% 7.9%8.5%

12.0%

8.8%9.3% 9.2%

9.7%10.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







6.50%


€ 965,595-€ 8,546

-€ 12,885

-€ 21,196

-€ 128,754


€ 18,400,000€ 1,415,752

€ 1,636

Page 10 of 12

8.43%

€ 795,696

€ 11.49 Total

Total € 17,200,000

7.29%

In terms of risk, we considered the covenant strength of the tenants as well as the lease duration for the existing contracts. As at 01.01.2011 the main tenant Adler Modemärkte GmbH has good covenant strength,which ensures a secure cash flow. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance, condition and building age, third-party usability, competition and location. For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. All Capital expenditures for repairs in the firstyear as well as in the periods of year 2 to 5 and year 6 to 10 are considered to be covered by the maintenance costs. The restrictions of Division II, have no effect on the value of the property.

-€ 67,887

abc

Valuation Comment

€ 1,278,184 per m²

11.00%

Regarding comparable rents we have had recourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to thesection "Investment Comparables". Furthermore, we have taken into account surplus land in the amount of 4,800m² and have reduced the land value for this space by 50%, due to the inferior location of the surplusland behind the main building.

0

6.54%

Year 10 € 1,269,425€ 1,295,621

€ 0

€ 1,347,966Year 9

-€ 117,387

TIs and

-€ 113,339


€ 1,440,458 € 0

-€ 3,167-€ 10,877

€ 1,208,496

€ 1,210,432 € 0 € 1,210,432

Income

-€ 54,553

-€ 9,105-€ 93 € 1,326,233

€ 1,232,158

Net

31.03.2013


€ 1,258,599€ 1,146,280€ 1,219,288

Year 6Year 7

-€ 12,814

€ 956,957

-€ 112,793Vacancy

Year 5

€ 1,343,501 € 1,330,687Year 8

Year 4

Year 2-€ 6,157

Gross

€ 1,326,477

Market Value



€ 1,170,573

€ 1,153,553

7.61%per m²

€ 1,292,932

-€ 125,048-€ 122,191€ 0 -€ 1,975


€ 19,116,465

€ 1,743

€ 17,925,535-€ 130,568 -€ 26,235€ 1,379,970

Rent Overview



€ 18,395,839


per m²/month

€ 1,249,402

€ 824,170

-€ 402

-€ 1,077 € 0

Expenditures€ 0

-€ 114,132 € 1,326,326

Costs

€ 1,115,493

€ 1,140,671

Abatements

€ 1,270,860

-€ 15,372

-€ 120,559€ 1,203,354

-€ 7,943€ 0 € 1,172,373

€ 1,132,924

Year 3 € 1,446,615

€ 1,084,830€ 624,570-€ 26,505

-€ 130,091

€ 731,743

€ 1,406,189

Revenue€ 1,371,794

Turnover

Germany

€ 1,292,850

Revenue

€ 1,441,390 -€ 11,860

€ 0 € 1,087,048

Rent

€ 0

€ 1,426,014-€ 23,341-€ 25,756 -€ 28,464Year 1

€ 1,425,333

€ 1,340,943

Year 11 € 1,447,857

€ 1,327,819

€ 10.37

€ 0-€ 45,700

€ 1,372,396 -€ 102,971 € 0

€ 1,379,633-€ 239,429

-€ 48,011

€ 558,151

Yield Overview

€ 1,259,001

€ 1,261,900-€ 117,733

€ 1,328,896

74172 Neckarsulm

Cash Flow

Non-Total

€ 0-€ 106,708

€ 470,304

€ 9,449,533

-€ 52,345 € 0-€ 40,469

Present

€ 711,728

€ 578,984

-€ 11,144

Leasing

28.01.2011

Matrix Portfolio

Value @

6.8%7.0%

7.2%

6.9%

5.2%

6.6%6.4%

6.6%6.4% 6.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 200000.0

€ 400000.0

€ 600000.0

€ 800000.0

€ 1000000.0

€ 1200000.0

€ 1400000.0

€ 1600000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



28.01.2011

abcPage 11 of 12


Front view of the western property part

Matrix Portfolio

External view of the TÜV

74172 Neckarsulm

Photos


View of bakery in main building


31.03.2013

Front view of the eastern property part

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Discounter 1,103 m²DiscounterFashion

1,099 m²

2,807 m²Fashion2,862 m²

0 m²1,000 m²Fashion

Lidl WurzenNürnberg

Volkach0

Adler

0AWG Textil

Adler

0

Krefeld

0

Other federal state, worse purchasing power

€ 0

€ 12.00 /m²€ 24,533

€ 0.00 /m²

Total Rent p.m.

€ 8,900 € 8.90 /m² Worse purchasing power€ 8.74 /m²

Better purchasing powerWorse purchasing power

€ 34,344


Area

Better purchasing power€ 8.80 /m²

€ 12,354 € 11.20 /m²€ 9,671

€ 11.25 /m²€ 11,183

CommentWorse purchasing power

Rent p. sqm€ 10,798 € 8.18 /m²

Better purchasing power

74172 Neckarsulm

City


Leasing Comparables

1,320 m²

Leasing Market

Lidl

Tenant Property TypeDiscounterLidlDiscounter

31.03.2013Hohenloher Straße 2

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

KerkenLidl


994 m²


BraunschweigRenchen



Investment Market




Date of Transaction



28.01.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 4 6 to 10 years Macrolocation 3 Average location and catchment areaLettable Area 3 Between 10,000 and 12,500 m² Microlocation 3 Average micro locationProperty condition 3 Average building condition Commercial activity 3 Limited commercial activity nearbyGeneral impression 3 Average general impression Competition 3 Average competition level

Investment Quality

WALT 4 WALT seven to ten years Investment market 3 Average property marketOver- / underrent 3 Rack rented (-5% to 5%) Investment volume 4 Good lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

0

31.03.2013


Key Figures

Hösamer Feld 7

2007


Building

Liquidity

Valuation Results

Location


6.87%

Discount Rate

6.87%

excluding capital

expenditures6.75%



7.2 years

Established location, no further self-service department stores in immediate vicinity

Very good accessibility to the parking area

Sufficient parking spaces on site

Good branch and tenant mix


€ 5.92

1999


94474 Vilshofen

Property Summary

Retail Park

Germany

01.02.2011

Property type




2.8%

Main tenant


1.9%

€ 815,611

€ 726,812



Strengths

Very good visibility from Aidenbacher Straße

0

Strong dependency on the main tenant KauflandLocation could be strengthened by further completions in the surrounding area Long-term vacancy if Kaufland vacates the property

Property is currently let sligthly over market rental level (over-rented)

0

€ 6.66 / m² / p.m.€ 10,100,000

6.75%

The property consists of two buildings on two parcels of land, which are separated by an access road. The buildings were constructed in 1999. On the south-western side of the property (land parcel 1552), apredominately one-storey self-service department store can be found, which has an L-shaped layout. The sales areas are situated in the longer section of the building on the ground floor; in the shorter section ofthe building, the warehouse as well as the receiving department can be found. The social rooms on the first floor can be reached through the entrance hall. The goods delivery area can be accessed via a loadingramp. The building itself is a reinforced concrete construction with a flat roof. The façade has sandwich elements made from prefabricated concrete components. The façade and the roof of the social rooms are cladwith trapezoidal sheet metal. The parking facilities are situated in front of the covered entrance area of the self-service department store and extend up to the access road.

0

6.86%

Market Rental Value

12.38

€ 817,158 p.a.

Since completion one retail unit is still in shell conditionWeaknesses

Matrix Portfolio

0

€ 987 per m²

Extension of the KiK by the adjacent vacant retail unit

0

A U-shaped building can be found on the north-western section of the property (parcel 1552/7). The building is a single-storey construction. Parking areas can be found in front of the structure. The rental units areeach accessible from the parking areas. The goods delivery zones are situated in the rear building section and stretch around the building. The building is equipped with a flat roof. The façade is clad with aluminium elements in the form of trapezoidal sheet metal. An awning covering the entrance areas optically connects the individual rental units with one another. A petrol station is located on the western end of the property(parcel 1552/7). This section of the property is leased to the petrol station operator.

equals toequals to

Market Value






0

€ 0.72

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






127.32

The connection to the national motorway network can be described as good. The motorway A3 can beaccessed in approx. 15 minutes via the junction 113. The federal road B8 runs from Passau toStraubing and connects Vilshofen with a variety of communities, including Künzing, Windor and theregional centre Plattling in the Danube-Forest (Donau-Wald) region. Furthermore, the railway stationconnects Vilshofen with the cities Regenburg, Passau and Munich. The closest railway station offeringlong-distance services can be found in Passau and Plattling. The nearest airports are located in Munich(approx. 140 km distance) as well as in Linz, Austria (approx. 130 km distance).

Micro Location

Vilshofen an der Donau is a secondary centre in the Passau administrative district and the largest city inthe respective district. The city borders the southern Bavarian forest and is located approx. 20 km westfrom Passau and around 30 km west from Austria. The regional centre, Regensburg, is situated about100 km north-west of Vilshofen. As a secondary centre, Vilshofen functions as an economic hub for thesurrounding communities and supplies the area with periodic services. Small and medium-sizedbusinesses are predominantly established in the city, with the majority operating in the service sector aswell as the retail sector. The establishment of larger retail chains in the city makes Vilshofen a keyshopping location for the surrounding sub-centres. Having the largest number of schools in the Passauadministrative district, the education sector is equally economically important for the city.

Furthermore, a bus stop is located by the subject property. The railway station is located approx. 2.4 kmaway. The junction “Garham-Vilshofen”, which connects the city with the federal motorway A3, is about12.5 km north of the property. The federal road B8 is almost 4.6 km away.

Location


31.03.2013

94474 Vilshofen 01.02.2011

Passau (Rural District)

Germany

Bavaria



3.9%

3,544

Vilshofen Macro Location

3.5

Micro Location

330

The subject property is located in Hösamer Feld in the Linda commercial zone, in the southern peripheryof Vilsohofen. It can be accessed via the arterial road, Aidenbacher Straße. The city centre is around 3km north-east of the property and can be reached via Aidenbacher Straße. A Huber, a buildingmaterials store which offers a wide range of building materials, tools, piping and metal sheeting, bordersthe subject property to the north-east. To the south, the site is adjacent to the fashion and shoe retailwarehouse, Lipp. The wider surrounding area is characterised by agricultural use. According toinformation from the City of Vilshofen, there are still around 27,000 m² of land available in thecommercial zone for development. This land is located south-west of a self-service department andsouth-east of the retail warehouse assessed in the present valuation.


-1.8%

108.3497.28

-5.8%

316

3.5%

Structual Data

abc


16,179

94474

187123

12,510,331187,610

Vilshofen

1.1%

7,290

Postcode

Page 2 of 12

Matrix Portfolio

Germany

Hösamer Feld 7

City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Hösamer Feld 7 31.03.2013

01.02.2011

Germany

No Suspicion

According to information from the building authority of Vilshofen, a legally binding land-use plan, named“Gewerbegebiet Linda II” exists since 25 October 1993. The area in question is identified as a specialzone and the use must have an open coverage type. The total sales area is limited to 7,300 m², with non-city centre relevant product ranges being restricted to a maximum of 300 m². Other designations includea sales area for groceries for a maximum of 1,700 m², textile goods from 1,400 m² and for electronicgoods of max 700 m², etc.


TPL Vilshofen S.à.r.l. Luxembourg

Land Register

2007 15521552/7

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan



Matrix Portfolio

94474 Vilshofen

SO (special zone)

n.a.

0

Sheet Plot Parcel

1.6

Tenure

Site servicing


0 m²

0.8

Town Planning

Fully serviced


Rectangular

The property is constructed on a slight slope. Thus, the retail warehouses on parcel 1552/7 are on ahigher level than the self-service department store on the parcel 1552. The parcels are bordered byAidenbacher Straße on the north-west and Hösamer Feld on the south-east. The building materialsstore, Huber, neighbours the parcel 1552/7 on the north-east; developable land is situated south-west ofthe parcel 1552. Both parcels are separated by an access road.There is no suspicion of contamination due to previous uses on the site. However, a section of parcel1552/7 is currently leased to a petrol station.For the purposes of this valuation, we have assumed that the subject property is free of any soil orbuilding contamination.

Limited personal easement in favour of Conoco Mineralöl GmbH, Hamburg, registered until 30.09.2023 (right to sell fuel and vehicle lubricant, right to operate a petrol station)

Limited personal easement (right to operate a self-service department store) in favour of Kaufland Dienstleistungs GmbH & Co. KG, registered on 22.08.2007


Land charges in the total amount of € 12,786,165 in favour of Bank of Scotland (branch Frankfurt), registered on 08.10.2007

Local Court of Passau, land register of Aunkirchen

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



127.32

-5.8%

abc


94474 Vilshofen

Name94474 Vilshofen, Aidenbacher Straße 74

Competitor Overview

Competitor Map



PotentialAddress



Page 4 of 12


1.00 kmn.a.Retail Park

8,336

Medium to low

00

Low3.00 km




14,517

7,290

Retail Park


94474 Vilshofen, Passauer Str. 290Rewe Hypermarket 1,950 m²

m² 0

8,768

97.28

25,007

00

0


0


Hösamer Feld 7

01.02.2011


31.03.2013

00

0

0

0

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


01.02.2011

31.03.2013

Matrix Portfolio

Turnover analysis

A retail agglomeration with the tenants expert (electronics store), Rossmann (drugstore), Takko (textiler), Aldi (food discounter) und Penny (food discounter), a beverage store and a sport fashion store is located along the Aidenbacher Straße in a distance of approx. 1 km north to the subject property. A hagebaumarkt (DIY store) is located opposite to the retail agglomeration.

Main competitors

94474 Vilshofen

Hösamer Feld 7

0

The rents in functional retail agglomerations are linked to the achievable turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective industry. The productivity varies between approx. € 1,000/m² and up to more than € 10,000/m².

abc

Competition Comment

The retail warehouse agglomeration is situated in close proximity, within a 1 km distance from the valued property. The location of this competitor is however closer to the city centre. With a drugstore, two discounters, a drinks cash-and-carry, a sporting goods store as well as a DIY store, the agglomeration overall offers a similar product range as the subject property. The majority of tenants are well-known retail chains. The competing site is additionally strengthened by an electronics superstore. As a whole, the competing property offers also a different range of goods. While both the discounters offer lower-priced goods for daily use, the Kaufland at the subject property in contrast presents a full range of goods. The retail warehouses at the valued site therefore strengthens the attractiveness level of the property. Additionally, the fashion and shoe retail warehouse, which borders the subject site, indirectly benefits the subject property.

Thus, it can be assumed that despite the generally similar tenant mix, direct competition for the purchasing power of the consumers does not exist. The second competitor, Rewe, is also unable to pose as direct competition to the subject property. For one, the city centre with smaller shopping facilities is situated between the subject site and the second competitor, Rewe. For another, the Rewe only offers a fraction of the full range of goods available at Kaufland, thereby indicating a significant difference in the product ranges. Furthermore, no other retail establishments adjoin or border the Rewe, which could boost the quality of the competing property over the subject property. Thus, the competition level as a whole can be described as medium.

For Kaufland, we have also been provided with turnover figures for the previous valuation. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. Taking into consideration location features and the competition situation within Vilshofen, a higher rental level and turnovers for similar sectors is certainly realistic. Thus, we assume in the valuation that higher market rents for the self-service department store can be achieved after the expiry of lease agreements.

If the tenant Kaufland were to vacate the unit, the self-service department store could be let in the future to other tenants, such as real, Marktkauf or an E-Center. However, a subsequent use of the unit as a DIY store or furniture store would not be suitable. Huber (building materials store) as well as hagebaumarkt (DIY store) are already established in the vicinity and more than sufficiently meet the needs of the catchment area. Furthermore, a furniture retailer also is not a strong enough anchor tenant and lacks the drawing power for consumers. According to the turnover analysis, the turnover rent stands on the lower end of the range; in fact, a higher turnover-to-rent ratio is achievable in the market. Therefore, we assume that the tenant, Kaufland, will exercise its lease agreement extension options and will remain in the property until 2037. Thereby, it can be assumed that over this period of time, demand for the other units will also exist.

The tenant and market sector mix is very good for the current type of use. The size of the property is sufficient to meet the needs of the community of Vilshofen and its catchment area. The accessibility and visibility of both building sections can also be described as being very good. The only feature of the property that could be looked at critically is the small rental unit (284 m² in size), which is in shell condition and has remained vacant since being constructed. A fusion between this unit and one of the adjacent rental units is therefore highly advisable. Overall, the property can be expanded with the available building areas bordering the site. A tenant mix with an electronics retail warehouse could further boost the subject site above the competition. The establishment of a similar type self-service department store is however considered problematic. Protection against competition is currently not available. Furthermore, the property is highly dependent on the self-service department store, Kaufland, and also on the tenant, Vögele, who is the main tenant in the retail warehouse centre.


A Rewe supermarket with approx. 1,900 m² sales area is located shortly behind the federal road B8. The supermarket is located in a distance of approx. 3 km away within the secondary catchment area. The Passauer Straße runs along the railway line until the Aidenbacher Straße begins. The competitor is standalone.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

7 Dänisches Bettenlager GmbH & Co. KG

0.00

€ 2,057

Other Units10 Deutsche Plakat-Werbung GmbH & Co. KG

11 ConocoPhillips Germany GmbH

Vacant

Page 6 of 12

26.07.2015

1,400


3 Charles Vögele Deutschland GmbH

5,187

6.66

6.65

Retail 5.22

10.64

2 Dänisches Bettenlager GmbH & Co. KG Retail

pays VAT

28.02.2014

31.12.2014

75%

75%

Start

75%

31.03.2013Hösamer Feld 7

Tenant

Matrix Portfolio

01.02.2011


TenantLeaseArea

Let

Let

10.02.2014Yes

04.12.2000

Yes


1 Fressnapf Immobilien-Vermögensverwaltung GmbH Retail 309

/ month Probability

6


Let

Petrol Station

8 TEDI GmbH & Co. KG


11.03.1999

01.03.1999

Yes

75%

Retail

Yes

€ 5,225


Retail 1,008

335

Let

Retail

785

01.03.1999

9.77

€ 0

€ 10,729

Let

Let Yes

94474 Vilshofen

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Retail

€ 67,968

704

Let

452Let

€ 265 02.08.2014

€ 7,680

31.12.2014

27.07.2005

30.09.2013

01.10.2007 30.09.2027

€ 2,813 13.01.1999

04.12.2000

75%

04.03.2019

75%

05.03.1999

GT I PM

75%

Yes

Yes

GT I PM

abc

75%

11,630 m²

75%

01.03.1999

03.08.2009

01.10.2007

28.02.2014

75%

100%No

44.17

10.91

4.81

Yes

Yes

0.00

2.01

Yes

Yes

348 € 3,777

€ 3,933818

10.85

28.02.2018

€ 27,069

GT I PM75%

Total

500Let

Let

€ 4,419

LetRetail

13 External Parking External parking

12 VACANT Retail 284 € 0

0%0.00 30.09.2022€ 0

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

01.02.2011



Tis0



€ 3,924

abc

0 0 0 100%

0 24

0 3 512

50

75%

€ 100

75%

75%

5 75%0

0

12

0 0

€ 0

75%

3

0

5

3

5

0

0 0

0

75%

36

12 5

3 12

3

0

75%

0

3

5

75%

75%

3

0

75%

5

75%

3 5

5

75%

3

0€ 50 15

12 53

3 10

Total

13 External Parking

€ 100

€ 100

€ 0

€ 100

500

€ 100

Page 7 of 12

€ 68,09711,630 sqm

Term**

Matrix Portfolio

Re-letting

€ 4,090

€ 6,336

€ 2.01

6

€ 100

Retail

€ 0


€ 0.00


Other Units

Petrol Station

Retail

Retail

8 TEDI GmbH & Co. KG Retail

309

3 Charles Vögele Deutschland GmbH Retail

Retail



818

9 Deichmann SE

12 VACANT


11 ConocoPhillips Germany GmbH

External parking

335 € 0.00

Market

12

12 0

0

3

12 0


€ 6.00

€ 9,072

€ 31,119

348

€ 6.00

1,008

Rent

€ 5.00

€ 1,420

€ 3,133

€ 4,069

€ 2,813

€ 44.17

€ 5.00

€ 9.00

284

4 Handelshof SB Warenhaus GmbH & Co. KG Retail 5,187

5 KiK Textilien und Non-Food GmbH 785 Retail

704

1,400

€ 0

0

€ 0

€ 9.00

€ 9.00

€ 265

0

0

€ 9.00

€ 5.00

0

Market

€ 100

94474 Vilshofen

Retail

sqm/unitTenant Name

Retail € 100

€ 100

Hösamer Feld 7

Area Category

452


0

0

12

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

5AA 2284


0.00

2.01

6.66

0.000.000.00

837,271

0.00

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year0

0.00

9,946

33,7610

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

9,946

94474 Vilshofen

00

m²Use Category

Rent RentMarketRent


2.7%780,2170.00

0

010,230

Market

0800,330

€/month

DIY

Office

0

0

0

065,018

2.78%

6.36

0

0€/m²/month


Rent

500

ContractualRent

€/year

0.00%6

0.00%

0.00%0

2840

0.00%

Matrix Portfolio

Hösamer Feld 7 31.03.2013

1,400

00Commercial

0

Contractual

0

00

Potential

Area Vacant

500

€/m²/monthRent

0.00%500

Rent

00.00%


Use Category

Germany

01.02.2011

Capital indicator

39.000.000 (total)


Comment


14,050,009 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland. According toDun & Bradstreet (D&B) Rating as at 01.01.2011 Handelshof SB Warenhaus GmbH & Co. KG has anbelow-average credit risk. The risk of insolvency (D&B Score) within the next 12 months compared withother German companies is assessed to be low, i.e. 84% of businesses on the German database havethe same or higher risk of failure.

Rent p.a.

5,187 m²


2.3%

2.7%

5.22

6.00

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

0.0%2.7%

3,18026568,097

44.17817,158

0.0%0.0%0

0.0%

0

2,813

0

0.0%00.0%

0

9.03

6.77

0

40%

0


14.5 years

~ 3,861 m²

0 00


Main tenant

€ 324,823


Tenant name

4.51

Storage2,813



6.8344.17


00

33,761 33,7610

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

64,88900.00

6.52

Warehouse

Warehouse

Area Let

10,230

Other Units

0284

Residential00

0

0

2.78%

Contractual


1,400

778,670

Retail

0.00


06

Income Analysis

Internal parking

Office

DIYRetail

Storage

67,9683,180

815,611

0 0

3,180

0

265

0.00

0.000.00


External parking

Total parking

€ / m²

5.22

4.51

6.00

6.77

9.03

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

3,639

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is let to nine retail units and a petrol station. Currently, one retail unit is vacant. The WALT of the property amounts to 7.2 years. The main tenant is Kaufland with a share of approx. 40% of the rentalincome. The property is currently almost let at market rental level. The main tenant Kaufland is almost let at market rental level. As the lease contract is valid until 2027 and the tenant has options until 2037, we donot believe that the rental level can be adjusted before 2037. Kaufland’s rent is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relation to the CPI basis.Indexation started on 01.04.2009. The majority of the tenants does not pay costs for ground tax, insurance and for management. Except of the tenant KiK and the petrol station these costs will not be borne by thetenants. Maintenance costs for structural repairs are borne by the landlord. The lease of TEDI has been prolonged until 03/2019.

0 €

0 €

€ 3,209€ 30,579

€ 3,261


€ 0

11.5%

5.64%

% of Gross

€ 10.00 /m²/p.a.

€ 1,27211.9%

0 €

€ 3,109 0 €0 €€ 3,060

0 €€ 3,008

11.7%€ 4,344

€ 28,612 11.7%12.2%€ 5,094

€ 27,764

€ 2,019

0 €

€ 0.00 /m²

Management costs


€ 8.68 /m²

€ 11,616€ 2,955

€ 28,153

5.63%



€ 92,673€ 93,163€ 94,607

€ 0

€ 1.20 /m²

% of Gross

0.00%

€ 12,234

€ 12,257


per year


€ 4.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 6.75%

6.75%


Hösamer Feld 7

Assumptions

0

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken into account such facts as the stable Cash Flow, the good location, the short WALT, thelow vacancy rate and the good condition of the subject property in Vilshofen.

01.02.201194474 Vilshofen

Germany

31.03.2013

€ 0.28 /m²€ 0

0.35%€ 27,671€ 2.70 /m²

€ 0.00 /m²€ 2,858

per year

Year 8

€ 29,122€ 11,976

€ 51,689€ 50,872

€ 11,970

€ 47,601Year 3

€ 12,022

% of Total

Year 7

€ 2,868€ 11,976

€ 94,576

€ 93,141

€ 636

Total

€ 50,079 € 11,717



Other Non-

€ 010.87%

€ 0.28 /m² € 2,858

Insurance


3.39%

Market Rent

0.00%10.89%

1.50%€ 1.20 /m²€ 2.70 /m² € 27,671

€ 88,799

per year

€ 8.68 /m²


€ 88,822

€ 2,908


Gross Revenue

€ 12,469 € 32,058 0 €€ 11,951€ 54,124 € 32,533

Year 10€ 2,061

3.39%1.50%

Market Value

€ 52,520

Year 4

Year 6

€ 3,360

€ 11,376

Year 11€ 53,334

€ 31,569Year 9

GroundManagementTax

Maintanance

€ 12,093

CostsCosts

€ 48,450

Year 1Year 2

€ 46,189€ 46,836

€ 31,069

€ 49,285 € 29,625€ 30,101

Year 5

€ 12,469

13.1%

0 €€ 3,159

€ 104,02912.2%12.0%

0.35%

0 €

€ 0€ 3,311

€ 5,827

€ 0€ 101,172

€ 101,81312.8%

0 €

12.3%

€ 99,819

Year after 2021

€ 96,278

abc

€ 4,493 € 102,48213.4%

Page 9 of 12

Inflation

after 2021



Market

11.7%12.2%

11.7% 11.5% 11.9%12.3%

13.4%12.8%

12.0% 12.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







5.00%


€ 569,341€ 0

-€ 44,829

€ 0

-€ 101,172


€ 10,600,000€ 815,611

€ 987

Page 10 of 12

8.08%

€ 703,414

€ 6.64 Total

Total € 10,100,000

6.86%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 01.01.2011, the main tenant, Handelshof SB Warenhaus GmbH & Co. KG, has good covenantstrength, which ensures a secure cash flow for the remainder of the lease term until at least 2027. In terms of a resale, we took into account such facts as visibility, demographic factors, appearance, condition andbuilding age, third-party usability, competition situation and location.

-€ 42,482

abc

Valuation Comment

€ 817,158 per m²

1.94%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to the information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. For the periods of year 1 to 10, all budgeted costs (capital expenditures) are covered by our maintenance cost approach of € 4.50/m² p.a.Regarding comparable rents, we have had recourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to thesection "Investment Comparables". Compared to our last valuation, some changes in the rent roll have been made as well as an adjustment of the non-recoverable costs.0

6.87%

Year 10 € 831,265€ 831,265

€ 0

€ 831,265Year 9

-€ 96,278

TIs and

-€ 94,607


€ 798,383 -€ 41,247

-€ 45,164-€ 58,267

€ 698,998

€ 684,857 -€ 19,069 € 660,606

Income

€ 0

-€ 14,361-€ 6,246 € 657,727

€ 713,503

Net

31.03.2013


€ 705,266€ 562,726€ 685,123

Year 6Year 7

-€ 27,154

€ 703,414

-€ 93,141Vacancy

Year 5

€ 828,634 € 801,480Year 8

Year 4

Year 2-€ 12,261

Gross

€ 804,873

Market Value


Hösamer Feld 7

€ 731,446

€ 583,178

8.09%per m²

€ 758,377

-€ 99,819-€ 102,482€ 0 -€ 6,806


€ 10,822,778

€ 1,036

€ 10,590,838-€ 104,029 -€ 20,616€ 796,724

Rent Overview



€ 10,590,838


per m²/month

€ 692,695

€ 461,897

€ 0

-€ 13,793 € 0

Expenditures€ 0

-€ 93,163 € 705,220

Costs

€ 559,853

€ 730,093

Abatements

€ 620,606

€ 0

-€ 101,813€ 647,028

-€ 15,119€ 0 € 656,564

€ 731,446

Year 3 € 810,644

€ 730,093€ 421,035€ 0

-€ 94,576

€ 381,607

€ 774,403

Revenue€ 798,407

Turnover

Germany

€ 679,796

Revenue

€ 817,589 € 0

€ 0 € 797,990

Rent

€ 0

€ 830,846-€ 43,186-€ 32,439 € 0Year 1

€ 806,176

€ 818,689

Year 11 € 839,206

€ 781,135

€ 6.66

€ 0€ 0

€ 831,265 € 0 € 0

€ 806,176-€ 6,883

-€ 60,312

€ 393,683

Yield Overview

€ 705,266

€ 713,503-€ 92,673

€ 794,928

94474 Vilshofen

Cash Flow

Non-Total

-€ 5,182€ 0

€ 0

€ 5,631,965

€ 0 € 0€ 0

Present

€ 397,617

€ 525,991

€ 0

Leasing

01.02.2011

Matrix Portfolio

Value @

6.7%

6.4%6.7% 6.7% 6.6%

6.5%6.2%

6.6%6.9% 6.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 100000.0

€ 200000.0

€ 300000.0

€ 400000.0

€ 500000.0

€ 600000.0

€ 700000.0

€ 800000.0

€ 900000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:


Hösamer Feld 7

01.02.2011

abcPage 11 of 12


View of the retail warehouses

Matrix Portfolio


94474 Vilshofen

Photos

Internal view of the vacant unit

Internal view of the tenant Charles Vögele


31.03.2013

Internal view of the tenant Kaufland

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold

Self-Service Department Store 8,450 m²DrugstoreFashion

790 m²

1,000 m²Fashion910 m²

0 m²467 m²Shoe store

dm-drogerie markt BentwischTraunreut

Karlstadt0

AWG Mode

0Deichmann

Charles Vögele

0

Volkach

0


€ 0

€ 8.44 /m²€ 8,900

€ 0.00 /m²

Total Rent p.m.


Similar purchasing powerSimilar purchasing power, other federal state

€ 7,680


Area

Better location, similar purchasing power€ 9.61 /m²

€ 61,685 € 7.30 /m²€ 7,592

€ 6.71 /m²€ 29,698

CommentHigher purchasing power

Rent p. sqm€ 71,114 € 6.57 /m²

Similar out-of-town location, similar purchasing power

94474 Vilshofen

City


Leasing Comparables

10,824 m²

Leasing Market

Kaufland


31.03.2013Hösamer Feld 7

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

WürzburgReal


4,426 m²


HamelnAmberg



Investment Market




Date of Transaction



01.02.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)


Valuation date:

Inspection date:

Prepared for:




total p.a.


Building age 2 16 to 25 years Macrolocation 2 Below average location and catchment areaLettable Area 2 Between 7,500 and 10,000 m² Microlocation 2 Below average micro locationProperty condition 3 Average building condition Commercial activity 3 Limited commercial activity nearbyGeneral impression 3 Average general impression Competition 2 High competition level

Investment Quality

WALT 5 WALT longer than ten years Investment market 2 Under developed property marketOver- / underrent 3 Rack rented (-5% to 5%) Investment volume 3 Reasonable lot sizeQuality of tenants 4 Tenants with very good credit rating Saleability 4 Good saleability within 6 months



Page 1 of 12 abc

SWOT Analysis

Strong competition

31.03.2013


Key Figures

Wahrenberger Straße 69

n.a.


Building

Liquidity

Valuation Results

Location


6.30%

Discount Rate

6.30%

excluding capital

expenditures7.00%



10.7 years

Long term lease contract of the main tenant Kaufland

Petrol station on site


Well maintained


€ 5.17

1996


19322 Wittenberge

Property Summary

Retail Park

Germany

31.01.2011

Property type




0.0%

Main tenant


3.8%

€ 614,328

€ 538,719



Strengths

Located close to a DIY store generating synergies

0

Strong dependency on the main tenant Kaufland0 Long-term vacancy if Kaufland vacates the property

Property is currently let sligthly over market rental level (over-rented)

0

€ 5.68 / m² / p.m.€ 7,700,000

6.70%

The subject property is a one- to two-storey department store. The property was built in 1996 and faces Wahrenberger Straße and Cumloser Straße. The property has one main entrance from the parking space infront of the building and a separate entrance to the unit rented by the tenant Hammer, as well as from the parking area. The building has an L-shape and is made of a steel reinforced concrete construction withprecast parts. The property has got a flat roof with galvanised steel sheets.

0

6.57%

Market Rental Value

12.53

€ 591,881 p.a.

Outdated architectural designWeaknesses

Matrix Portfolio

0

€ 886 per m²

0

0

equals toequals to

Market Value






0

€ 0.72

00

(Copy)


Valuation date:

Inspection date:

Prepared for:






153.67

The economy of Wittenberge is primarily characterised by small- and mid-sized companies. Moreover,agriculture is a major part of Wittenberge’s economy.

Micro Location

Wittenberge is situated in the federal state of Brandenburg in the administrative region of Prignitz. Thecity covers an area of 50.44 km². Nearby cities include Berlin (120 km), Potsdam (100 km) andLüneburg (80 km). The A24 federal motorway is located 35 km to the north and the B89 offers a directconnection to the motorway.

The city’s train station is linked to the ICE network. Wittenberge is a stop on the route from Hamburg toBerlin. International connections to Prague and Kopenhagen are also available.

The closest passenger airport is located in Berlin, which can be reached within 120 km.

0

Location


31.03.2013

19322 Wittenberge 31.01.2011

Prignitz (Rural District)

Germany

Brandenburg



10.3%

1,351

Wittenberge Macro Location

5.0

Micro Location

340

The property is located slightly outside of the western outskirts of Wittenberge, very close to the federalroad B189, which connects Wittenberege with the motorway system. The property is located along anaterial road connecting western Wittenberge with the B189. Next to the subject property, there is a DIYstore operated by OBI and apart from that, there are only few residential dwellings to the north-east aswell as agricultural land in the surrounding area.


-7.5%

89.4486.95

-21.8%

291

13.0%

Structual Data

abc


18,278

19322

36238

2,511,52580,872

Wittenberge

-1.8%

10,526

Postcode

Page 2 of 12

Matrix Portfolio

Germany


City

(Copy)


Valuation date:

Inspection date:

Prepared for:

Comment

Use class Comment


Plot ratio (GFZ)

Cubic index (BMZ)



Soil contamination

Section 3 (Loans)

Wahrenberger Straße 69 31.03.2013

31.01.2011

Germany

No Suspicion

According to information from the local planning authority, a legally binding development plan exists,entitled "Nr. 2 Geschäftshauskomplex Wahrenberger Straße / B 189" and dated 04.03.1993, with thefollowing regulations: the subject site is located in a special zone (SO). The site coverage ratio is limitedto 0.8 and the plot ratio to 0.5.


TPL Wittenberge S.á.r.l., Luxembourg

Land Register

5509 155/4159/9

Owner

n.a.

Site Information


NoGround lease

Site layout

Site Plan


Source: Cadastral plan on a 1 to 1,000 scale, dated 29th December 2010

Matrix Portfolio

19322 Wittenberge

SO (special zone)

n.a.

28

Sheet Plot Parcel

0.5

Tenure

Site servicing


0 m²

0.8

Town Planning

Fully serviced


Irregular

The property has an even topography and irregular shape. It is accessible from the east. According toinformation provided by the city of Wittenberge, the site is not registered in the register of contaminatedsites.In Brandenburg, there are no building encumbrances. Instead the muncipalities obtain personaleasments, which are registered in the land register in divison 2. Thus, we assumed the subject propertyto be free of any building encumbrances.For the purposes of this valuation, we have assumed that the subject property is free of any soil orbuilding contamination.

Limited personal easement to operate a self-service department store on the plot in favour of Kaufland Stiftung & Co. KG, Neckarsulm.


Land charge in the amount of € 9,204,703.00 in favour of Bank of Scotland

Local Court of Perleberg, land register of Wittenberge

abcPage 3 of 12

(Copy)


Valuation date:

Inspection date:

Prepared for:



153.67

-21.8%

abc


19322 Wittenberge

Name19322 Wittenberge, Lenzener Chaussee 21

Competitor Overview

Competitor Map



PotentialAddress



Page 4 of 12



18,858

High

00

0




27,247

10,526

E-Center


00 m²

m² 0

14,353

86.95

18,858

00

0


0



31.01.2011


31.03.2013

00

0

0

0

0

Matrix Portfolio

(Copy)


Valuation date:

Inspection date:

Prepared for:


31.01.2011

31.03.2013

Matrix Portfolio

Turnover analysis

This competitor is a new retail park with a large EDEKA centre as anchor tenant. The sales area of Edeka is about 3,500 m². Within this retail park, there are several well-known tenants such as ALDI, Charles Vögele, and even a toom DIY store, which is another anchor tenant. This centre is newer and has a slightly better location also near the B189.

Main competitors

19322 Wittenberge


0

The rents in functional retail agglomerations are linked to the achievable turnover. The percentage rate that a retail tenant can use for rental payments depends on the margins achievable in the various market sectors. This rate normally ranges between 2% and 15% depending on the respective industry. The productivity varies between approx. € 1,000/m² and up to more than € 10,000/m².For Kaufland, we have also been provided with turnover figures for the previous valuation. We have analysed the figures and have found the area productivity of Kaufland to be in a healthy range. With a turnover-to-rent ratio of less than 2% it lies below the range of 2% to 4%, which is acceptable for a self-service department store. However, we believe that a slightly lower market rent is achievable after the end of the lease contract.

abc

Competition Comment

Approximately 19,000 inhabitants live in the secondary catchment area. Two self-service department stores are present within this area, which correlates to approx. 9,500 inhabitants (i.e. potential customers per self-service department store). Within the broader tertiary catchment area, there is still only one competitor for the 27,000 inhabitants, which increases the customer potential in this rural area to 13,500 potential customers per self-service department store. We consider the EDEKA centre located close by in a retail park to be the main competitor and superior to the subject property. Located only 1.2 km from the subject property also at the B189, they share almost exactly the same catchment area. As both properties need to be accessed by car, we think that most customers will prefer the retail park to the subject property due to its newer construction date and good tenant mix. Apart from the EDEKA centre, only small supermarkets or discounters compete for the non-food customers. However, we still assess the level of competition to be rather high and that the EDEKA centre will draw more than average customer potential from the subject property.

According to Trade Dimension, the turnover potential of the Kaufland is € 16,200,000 p.a. (net basis) . This results in a space productivity of approx. € 4,050 m². The rents hypermarkets usually pay are in the range of 2% to 4%, depending on location and quality of the building. Kaufland’s turnover-rent ratio generally lies above the threshold of 2% but below 4%. Therefore, we consider the rent paid to be sustainable in the long run.

Since Hammer prologed his contract for further 4 years the risk for vacancies has been reduced.

The subject property is a self-service department store situated in an average location within Wittenberge. The depth and breadth of the product range is very good. However, the property faces tough competition from a newer retail park with EDEKA as anchor tenant. The rental area of Kaufland can be regarded as relatively unproblematic. In the unlikely case that Kaufland should vacate the premises, the property could be re-let to an other self-service department stores as real or Marktkauf. We assumed that the tenant Kaufland will prolong the contract until 2037 due to the low contractual rental level. However, the market rental level is similar. More problematic would be Hammer vacating the property, as there are only few potential tenants for such rental unit. The most probable alternative use tenant for this unit would be a furniture store. Although this property will face some problems due to the competition, we believe the location to be sustainable on the low rental level, which is currently paid at the property.


Charles Vögele contributes to the tenant mix surrounding the EDEKA centre. Luckily, this is the only large competitor, which has a similar tenant mix and size compared to the subject property, and is considered superior when compared to the subject site.

Page 5 of 12

Conclusion

(Copy)


Valuation date:

Inspection date:

Prepared for:



/ month

5.27

€ 15,830

Page 6 of 12

00.01.19005 Parking Spaces

3 Schwarz Außenwerbung GmbH

1

0.00

6.15

Other Units 503.33

54.17

2 Kaufland Warenhandel Brandenburg GmbH & Co. KG Retail

pays VAT

31.12.2014

30.09.2026

75%

75%

Start

100%

31.03.2013Wahrenberger Straße 69

Tenant

Matrix Portfolio

31.01.2011


TenantLeaseArea

Let

Let

28.02.2019Yes

01.10.2007

No


1 Hammer Fachmärkte für Heimausstattung GmbH & Co. KG Retail 2,574

/ month Probability

Let6 TOTAL Deutschland GmbH

01.06.2007

01.01.2010

Yes

100%

External parking

Yes

€ 0

4 Kurzzeitmieter

Other Units 9

6,117

400

07.04.2003

€ 32,208

€ 488

Let

Let

19322 Wittenberge

Germany

Area CategoryEnd

Rent


Rent Roll

pays *Tenant Name

Petrol Station

€ 51,194

1,020 € 2,164

00.01.1900

00.01.1900 30.09.2026

100% M GT I Yes

abc

9,711 m²

2.12 06.04.2018

€ 503

0%0%

Total

(Copy)


Valuation date:

Inspection date:

Prepared for:



.

Renewal

31.01.2011



Tis24



€ 0

abc

100%0 12 6 5

0

3 100%

0%

3

75%

10

100%

3 10

5

75%

3

12€ 0 6

0 00

0 10

Total

€ 0

Page 7 of 12

€ 49,3239,711 sqm

Term**

Matrix Portfolio

Re-letting

€ 2,164

€ 0

6 TOTAL Deutschland GmbH Petrol Station

2,574

3 Schwarz Außenwerbung GmbH Other Units

2 Kaufland Warenhandel Brandenburg GmbH & Co. KG

1 Hammer Fachmärkte für Heimausstattung GmbH & Co. KG

6,117 € 5.00

Market

18

12 0

0

3

6 0


€ 0.00

€ 488

€ 0

€ 6.25

9

Rent

€ 0.00

4 Kurzzeitmieter Other Units 1

5 Parking Spaces 400 External parking

1,020

€ 30,585

€ 54.17

0

€ 2.12

Market

€ 0

19322 Wittenberge

Retail

sqm/unitTenant Name

Retail € 50

€ 50


Area Category


18

12

31.03.2013

(Copy)


Valuation date:

Inspection date:

Prepared for:


7,000


Market rent


5,500 Rents %

Contractual5,000

Market


3% of turnover4,000

2% of turnover


Sales Area3,000


based on sales area

2AA 1197


0.00

2.12

5.68

0.000.000.00

614,328

0.00

0.00%

Rented€/year

00

0.0%

0.0%

0.00

€/month €/year0

0.00

8,691

25,9720

0

0

0

0

0

0.00%0.00%0.00%

0.00%%

Vacancy Rate

0

8,691

19322 Wittenberge

00

m²Use Category

Rent RentMarketRent


2.9%560,0590.00

0

08,691

Market

0576,466

€/month

DIY

Office

0

0

0

046,672

0.00%

5.37

0

0€/m²/month


Rent

400

ContractualRent

€/year

0.00%10

0.00%

0.00%00

0

0.00%

Matrix Portfolio

Wahrenberger Straße 69 31.03.2013

1,020

00Commercial

0

Contractual

0

00

Potential

Area Vacant

400

€/m²/monthRent

0.00%400

Rent

00.00%


Use Category

Germany

31.01.2011

Capital indicator

n.a.


Comment


16,157,982 €

The main tenant is a corporation belonging to the Kaufland Group, which in turn belongs to the Lidl &Schwarz Group, one of the biggest grocer groups in Europe. Kaufland is the self-service departmentstore division of Lidl & Schwarz with more than 500 locations across Europe. Kaufland’s core businessarea is food retailing with branded goods and own-brands specially produced for Kaufland. According toDun & Bradstreet (D&B) Rating as at 01.01.2011 Kaufland Diensleistungs GmbH & Co. KG has a verylow credit risk. The risk of insolvency (D&B Score) within the next 12 months compared with otherGerman companies is assessed to be low, i.e. 97% of businesses on the German database have thesame or higher risk of failure.

Rent p.a.

6,117 m²


2.4%

2.3%

5.27

5.00

abc

Risk indicatorScore

Page 8 of 12

Credit limit

0

103.2%3.8%

5,85048849,323

48.75591,881

0.0%0.0%0

0.0%

0

2,164

0

0.0%00.0%

0

8.80

6.60

0

63%

0


13.5 years

~ 3,987 m²

0 00


Main tenant

€ 386,501


Tenant name

4.40

Storage2,164



5.8999.08


00

25,972 25,9720

0 0.0%00

00

0

m²

0

Property Analysis

0 0.0%0.00 0

48,03900.00

5.53

Warehouse

Warehouse

Area Let

8,691

Other Units

00

Residential00

0

0

0.00%

Contractual


1,020

576,466

Retail

0.00


010

Income Analysis

Internal parking

Office

DIYRetail

Storage

51,19411,890

614,328

0 0

11,890

0

991

0.00

0.000.00


External parking

Total parking

€ / m²

5.27

4.40

5.00

6.60

8.80

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Re

nt

/ m

² / m

on

th

Turnover-rent-ratio

Office Retail DIY


Storage

4,053

(Copy)


Valuation date:

Inspection date:

Prepared for:





2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** JLL analysis 1.0% 1.5% 1.5% 1.5% 1.4% 1.3% 1.4% 1.4% 1.4% 1.4%



The property is fully let to two retail tenants and a gas station. The WALT of the property amounts to 10.7 years. The main tenant is Kaufland with a share of approx. 63% of the rental income. The property iscurrently slightly overrented due to the property age and location. The rent of Kaufland is indexed and will be adapted by 50% of the CPI change, whenever the change exceeds 10 percent in relation to the CPIbasis. The tenants do not pay ground tax, insurance costs, maintenance, or property management with the exception of the petrol station, where the tenant pays everything with the exception of propertymanagement.

0 €

0 €

€ 2,840€ 17,752

€ 2,886


€ 0

12.7%

7.78%

% of Gross

€ 10.00 /m²/p.a.

€ 2,36112.9%

0 €

€ 2,752 0 €0 €€ 2,708

0 €€ 2,662

12.3%€ 0

€ 16,610 12.6%12.5%€ 0

€ 16,118

€ 0

0 €

€ 0.00 /m²

Management costs


€ 8.70 /m²

€ 9,215€ 2,616

€ 16,344

8.08%



€ 79,262€ 77,896€ 76,765

€ 0

€ 1.06 /m²

% of Gross

0.00%

€ 9,215

€ 8,878


per year


€ 5.50 /m²

per year


Maintenance costs

Matrix Portfolio

Capitalisation rate

Discount rate 6.70%

7.00%



Assumptions

The rent for the tenant TOTAL Deutschland GmbH has increased slightly.

The yields applied reflect the individual location quality (macro- and micro-location) of the properties,building structure, letting situation, covenant strength and the relationship between contractual andmarket rent. We derive the discount rate from market transactions. The discount rate reflects the rate ofreturn expected by investors and is determined based on the risk associated with a property. Asreinsurance, the initial yields profile is aligned with the market/other transactions. We have taken intoaccount such facts as the stable Cash Flow, the long lease contract with the tenant Kaufland, the fulloccupancy and the good condition of the subject property in Wittenberge.

31.01.201119322 Wittenberge

Germany

31.03.2013

€ 0.29 /m²€ 0

0.41%€ 16,064€ 1.85 /m²

€ 0.00 /m²€ 2,530

per year

Year 8

€ 16,907€ 9,244

€ 53,670€ 52,822

€ 9,386

€ 49,426Year 3

€ 9,877

% of Total

Year 7

€ 2,538€ 9,215

€ 80,466

€ 75,831

€ 0

Total

€ 51,998 € 9,208



Other Non-

€ 012.72%

€ 0.29 /m² € 2,530

Insurance


2.71%

Market Rent

0.00%12.31%

1.50%€ 1.02 /m²€ 1.85 /m² € 16,064

€ 75,608

per year

€ 8.66 /m²


€ 75,272

€ 2,574


Gross Revenue

€ 9,880 € 18,611 0 €€ 9,880€ 56,199 € 18,887

Year 10€ 0

2.61%1.50%

Market Value

€ 54,533

Year 4

Year 6

€ 2,974

€ 8,803

Year 11€ 55,378

€ 18,327Year 9

GroundManagementTax

Maintanance

€ 9,386

CostsCosts

€ 50,307

Year 1Year 2

€ 47,960€ 48,632

€ 18,037

€ 51,174 € 17,198€ 17,475

Year 5

€ 9,880

13.4%

0 €€ 2,796

€ 87,94013.2%13.0%

0.43%

0 €

€ 0€ 2,931

€ 9,443

€ 0€ 86,800

€ 91,61612.8%

0 €

13.7%

€ 85,626

Year after 2021

€ 83,794

abc

€ 0 € 84,42415.6%

Page 9 of 12

Inflation

after 2021



Market

12.3% 12.5% 12.6% 12.7% 12.9%13.7%

15.6%

12.8% 13.0% 13.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%


Maintenance costs

Management costs

Ground tax

Insurance costs


Contract

(Copy)


Valuation date:

Inspection date:

Prepared for:







6.75%


€ 436,789€ 0

€ 0

€ 0

-€ 86,800


€ 8,200,000€ 614,328

€ 886

Page 10 of 12

7.98%

€ 545,299

€ 5.89 Total

Total € 7,700,000

6.57%

In terms of risk, we considered the covenant strength as well as the lease duration for the existing contracts. As at 01.01.2011, the main tenant, Kaufland Dienstleistung GmbH & Co. KG, has good covenantstrength, which ensures a secure cash flow for the remainder of the lease term. The rent of the petrol station tenant has slightly increased, due to higher revenues of the last period on which the rent is based. Interms of a resale, we took into account such facts as visibility, demographic factors, appearance, condition and building age, third-party usability, competition situation and location.

€ 0

abc

Valuation Comment

€ 591,881 per m²

3.79%

For the purpose of the valuation on 31.03.2013, we have been provided with updated insurance costs as well as updated ground tax and have applied them in our valuation. Other costs have remained unchangedand have been applied according to the information received during the previous valuation cycle. For management costs, we have applied 1.5% of the effective gross rent. For the periods of year 1 to 10, all budgeted costs (capital expenditures) are covered by our maintenance cost approach of € 5.50/m² p.a. Regarding comparable rents, we have had recourse to evidence of similar areas situated in the comparable regions and locations. Furthermore, we have analysed comparable transactions. Please refer to thesection "Investment Comparables".

0

6.30%

Year 10 € 658,691€ 658,691

€ 0

€ 658,691Year 9

-€ 83,794

TIs and

-€ 76,765


€ 616,234 € 0

€ 0-€ 35,411

€ 574,061

€ 530,070 € 0 € 530,070

Income

€ 0

€ 0€ 0 € 538,338

€ 546,503

Net

31.03.2013


€ 538,497€ 489,144€ 522,823

Year 6Year 7

€ 0

€ 545,299

-€ 75,831Vacancy

Year 5

€ 658,485 € 658,485Year 8

Year 4

Year 2€ 0

Gross

€ 625,765

Market Value



€ 573,065

€ 446,425

7.69%per m²

€ 586,855

-€ 85,626-€ 84,424€ 0 € 0


€ 8,153,586

€ 944

€ 8,238,815-€ 87,940 € 0€ 658,691

Rent Overview



€ 8,238,815


per m²/month

€ 570,751

€ 372,430

€ 0

-€ 17,753 € 0

Expenditures€ 0

-€ 77,896 € 538,338

Costs

€ 459,048

€ 571,891

Abatements

€ 537,563

€ 0

-€ 91,616€ 574,061

-€ 13,403€ 0 € 495,239

€ 573,065

Year 3 € 616,234

€ 571,891€ 331,178€ 0

-€ 80,466

€ 292,326

€ 614,328

Revenue€ 614,328

Turnover

Germany

€ 537,563

Revenue

€ 614,328 € 0

€ 0 € 625,765

Rent

€ 0

€ 614,328€ 0€ 0 € 0Year 1

€ 625,765

€ 658,101

Year 11 € 658,691

€ 613,864

€ 5.68

€ 0€ 0

€ 658,691 € 0 € 0

€ 625,765€ 0

-€ 71,246

€ 309,746

Yield Overview

€ 538,497

€ 546,503-€ 79,262

€ 631,617

19322 Wittenberge

Cash Flow

Non-Total

€ 0€ 0

€ 0

€ 4,262,893

€ 0 € 0€ 0

Present

€ 353,978

€ 408,460

€ 0

Leasing

31.01.2011

Matrix Portfolio

Value @

6.5%

6.5% 6.5% 6.6% 6.6%6.4%

6.0%

7.0% 7.0% 6.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

€ .0

€ 100000.0

€ 200000.0

€ 300000.0

€ 400000.0

€ 500000.0

€ 600000.0

€ 700000.0


Ru

nn

ing

yie

ld

Re

nta

l in

co

me


(Copy)


Valuation date:

Inspection date:

Prepared for:



31.01.2011

abcPage 11 of 12


View of the main entrance of Kaufland

Matrix Portfolio

View of the main entrance of Hammer

19322 Wittenberge

Photos


Internal view of Kaufland


31.03.2013

View of the parking space

(Copy)


Valuation date:

Inspection date:

Prepared for:



ConstructionArea

Gross Multiplier


Hypermarket

Hypermarket

n.a.

n.a.


10.1-fold

13,000 m²

10,031 m²8.0-fold

15.3-fold15.5-fold

14.7-fold


4,661 m²

2,600 m²Large scale sport store1,300 m²

0 m²3,800 m²Furniture Store

Kaufland CrimmitschauZwickau

Leipzig0

Sport Store

0Local chain

EDEKA

0

Leipzig

0


€ 0

€ 6.12 /m²€ 17,004

€ 0.00 /m²

Total Rent p.m.

€ 21,546 € 5.67 /m² Other federal state; similar purchasing power€ 6.54 /m²

Purchasing power of 84.9Purchasing power of 77.1

€ 7,956


Area

Purchasing power of 105.5€ 4.60 /m²

€ 104,150 € 5.29 /m²€ 21,441

€ 4.77 /m²€ 13,118

CommentSame federal state; similar purchasing power

Rent p. sqm€ 8,136 € 4.52 /m²


19322 Wittenberge

City


Leasing Comparables

1,800 m²

Leasing Market

Real


31.03.2013Wahrenberger Straße 69

Matrix Portfolio


8,513 m²

6,200 m²

n.a.n.a.n.a.

Hypermarket

Hypermarket


11,200 m²

BraunschweigReal


2,750 m²


Verden (Aller)Lübbenau



Investment Market




Date of Transaction



31.01.2011


20122,269 m² 2012

Comment

Q2 20112012



Page 12 of 12


abc

Q2 201213.8-fold



(Copy)

Appendix II – Overview

Appendix II – Overview

(Copy)

abc

No Town Address UseYear of

Construction / Modernisation

Plot SizeLettable

AreaVacancy

RateWeigted Average

Lease TermContractual

Rental IncomeContract Rent

Net Operating Income

Market Rental ValueMarket Rent

Maintenance Costs

Management Costs

Ground TaxInsurance

CostsOther Costs* Total non-recs Total non-recs Total non-recs

Surplus Land Value

Capital Expenditures

(year 1)

Capitali-sationRate

Dis-countRate

Multi-plier

Multi-plier

Gross Initial Yield

NetInitialYield

NetInitialYield

Net Reversionary

Yield

NetReversionary

Yield

Gross CapitalValue

Purchaser's Costs

Market Value after Capex

Market Value

absolute ex Cap Ex ex Cap Ex ex Cap Ex

m² m² % years € p.a. €/m²/month € p.a. € p.a. €/m²/month % €/m² % €/m² €/m² €/m² €/year €/m²/year % of income € € % % % % % % % € % € €/m²

1 1 Aschersleben Hoymer Chaussee 108 Retail Park 1993 / n.a. 36,735 14,522 8.46% 7.4 1,531,257 8.79 1,408,935 1,591,511 9.13 -3.79 5.50 1.50 1.01 0.33 0.00 122,322 8.42 8% 0 0 7.10 7.35 13.06 13.06 7.66% 6.61% 6.61% 6.89% 6.89% 21,300,000 6.50% 20,000,000 1,377

2 2 Augsburg Gögginger Straße 119 Retail Park 1969 / 1995 20,862 13,840 0.00% 7.0 1,325,019 7.98 1,164,091 1,499,573 9.03 -11.64 5.50 1.50 4.39 0.30 0.00 160,928 11.63 12% 0 0 6.75 6.90 12.91 12.91 7.75% 6.47% 6.47% 7.42% 7.42% 18,000,000 5.00% 17,100,000 1,236

3 3 Bad Aibling Grassingerstraße 16 Retail Park 2000 / n.a. 19,222 7,053 0.00% 6.5 644,624 7.62 570,848 696,866 8.23 -7.50 5.50 1.50 3.30 0.28 0.00 73,776 10.46 11% 0 0 6.75 6.90 13.19 13.19 7.58% 6.41% 6.41% 6.99% 6.99% 8,900,000 5.25% 8,500,000 1,205

4 4 Biberach Obere Stegwiesen 10 Retail Park 1994 / n.a. 29,632 10,769 0.39% 6.6 1,265,410 9.79 1,183,256 1,275,518 9.87 -0.79 4.50 1.50 1.01 0.36 0.00 82,154 7.63 6% 313,312 0 6.75 7.10 12.57 13.03 7.96% 6.96% 6.72% 7.02% 6.89% 17,300,000 6.50% 16,200,000 1,476

5 5 Borken Heidenerstraße 32 Retail Park 2003 / n.a. 17,337 9,524 0.00% 6.8 1,089,001 9.53 999,625 1,206,904 10.56 -9.77 5.50 1.50 1.73 0.43 0.00 89,376 9.38 8% 0 0 6.50 6.90 13.77 13.77 7.26% 6.25% 6.25% 6.97% 6.97% 16,000,000 6.50% 15,000,000 1,575

6 6 Erlangen Westliche Stadtmauerstraße 27 Retail Park 1975 / 2004 17,609 13,398 3.97% 10.6 1,216,050 7.56 842,379 1,566,081 9.74 -22.35 6.50 1.50 4.59 0.28 15.17 373,671 27.89 31% 0 0 6.50 6.80 10.44 10.44 9.58% 6.29% 6.29% 8.86% 8.86% 13,400,000 5.00% 12,700,000 948

7 7 Geislingen Gartenstraße 30 Retail Park 2002 / n.a. 10,909 9,390 0.53% 7.6 654,010 5.80 565,281 838,192 7.44 -21.97 4.50 1.50 3.49 0.41 0.00 88,729 9.45 14% 0 0 6.50 7.25 13.91 13.91 7.19% 5.83% 5.83% 7.70% 7.70% 9,700,000 6.75% 9,100,000 969

8 8 Glauchau Waldenburger Straße F175 Retail Park 1992 / n.a. 47,878 12,764 0.13% 7.6 1,301,918 8.50 1,186,091 1,246,923 8.14 4.41 5.50 1.50 1.75 0.29 0.00 115,828 9.07 9% 0 0 7.25 7.25 12.52 12.52 7.99% 6.94% 6.94% 6.62% 6.62% 17,100,000 5.00% 16,300,000 1,277

9 9 Ludwigsburg Friedrichstraße 124 Retail Park 1997 / n.a. 10,911 14,144 0.00% 7.7 1,033,067 6.09 898,931 1,332,535 7.85 -22.47 4.75 1.50 3.26 0.37 0.00 134,136 9.48 13% 0 0 6.75 7.00 12.29 12.29 8.13% 6.66% 6.66% 8.84% 8.84% 13,500,000 6.50% 12,700,000 898

10 10 Ludwigsfelde Potsdamer Straße 51 Retail Park 1997 / n.a. 10,340 12,631 0.40% 7.5 1,138,683 7.51 1,029,320 1,042,279 6.88 9.25 5.50 1.50 1.40 0.40 0.00 109,362 8.66 10% 0 0 7.00 6.65 12.47 12.47 8.02% 6.82% 6.82% 6.19% 6.19% 15,100,000 6.50% 14,200,000 1,124

11 11 Neckarsulm Hohenloher Straße 2 Retail Park 1974 / 2001 32,520 10,267 1.21% 4.3 1,415,752 11.49 1,305,298 1,278,184 10.37 10.76 6.50 1.50 1.78 0.41 0.00 110,454 10.76 8% 441,600 0 6.85 7.30 11.87 12.44 8.43% 7.29% 6.93% 6.54% 6.38% 18,400,000 6.50% 17,200,000 1,636

12 12 Vilshofen Hösamer Feld 7 Retail Park 1999 / 2007 37,515 10,230 2.78% 7.2 815,611 6.64 726,812 817,158 6.66 -0.19 4.50 1.50 2.70 0.28 0.00 88,799 8.68 11% 0 0 6.75 6.75 12.38 12.38 8.08% 6.86% 6.86% 6.87% 6.87% 10,600,000 5.00% 10,100,000 987

13 13 Wittenberge Wahrenberger Straße 69 Retail Park 1996 / n.a. 39,690 8,691 0.00% 10.7 614,328 5.89 538,719 591,881 5.68 3.79 5.50 1.50 1.85 0.29 0.00 75,608 8.70 12% 0 0 7.00 6.70 12.53 12.53 7.98% 6.57% 6.57% 6.30% 6.30% 8,200,000 6.75% 7,700,000 886

*based upon market benchmarks

Valuation Date 31.3.2013 331,160 147,224 1.58% 7.4 14,044,730 7.95 12,419,586 14,983,605 8.48 -6.27% 5.38 1.50 2.50 0.34 1.38 1,625,144 11.04 12% 0 12.59 12.59 7.9% 6.62% 6.62% 7.12% 7.12% 187,500,000 6.10% 176,800,000 1,201

Over-/under-rent

Yields / Multiplier Values

Matrix Portfolio - Valuation Overview

Property Information General Data Rental Income Non-recoverable Costs

08.05.2013 abc(Copy)

Appendix III – General Principles for Valuation

Appendix III –General Principles for

Valuation

(Copy)

General Principles Adopted in the Preparation of Valuations and Reports

These are the general principles upon which our Valuations and Reports are normally prepared; they apply unless we have specifically mentioned otherwise in the body of the report. Where appropriate, we will be pleased to discuss variations to suit any particular circumstances, or to arrange for the execution of structural or site surveys, or any other more detailed enquiries.

1 Guidelines

a) RICS Appraisal and Valuation Manual

All work is carried out in accordance with the Practice Statements contained in the RICS Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors, by valuers who conform to the requirements thereof.

b) International Valuation Standards (IVS)

The standards of the International Valuation Standards Council (IVSC) are in accordance with the definition and interpretation of the Market Value as defined by the RICS and consistent with the concept of Fair Value as defined in the International Financial Reporting Standards.

c) Directive for Derivation of Market Value (German Immobilienwertermittlungsverordnung, “ImmoWertV“)

Appraisals of German Market Value (“Verkehrswert”) are prepared on the basis of the current version of the ImmoWertV. They are conducted by RICS-approved personnel.

d) Directive for Derivation of Mortgage Lending Value (German Beleihungswertermittlungsverordnung, “BelWertV“)

Appraisals of German Mortgage Lending Value (“Beleihungswert”) are prepared on the basis of the current version of the BelWertV. They are conducted by personnel approved by the HypZert GmbH.

2 Valuation Basis

Our reports state the purpose of the valuation and the basis adopted. The following definitions are usually the basis of our valuation:

a) Market Value (MV, RICS)

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

b) Market Rent (RICS)

The estimated amount for which a property would be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had acted knowledgeably, prudently and without compulsion.

c) Depreciated replacement cost (DRC, RICS)

The current cost of replacing an asset with its modern equivalent asset, less deductions for physical deterioration and all relevant forms of obsolescence and optimisation.

d) Fair Value (RICS)

The estimated price for the transfer of an asset or liability between identified knowledgeable and willing parties that reflects the respective interest of those parties (the definition adopted by the IVSC).

The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (the definition adopted by the IASB).

e) German Market Value (“Verkehrswert“ according to § 194 BauGB)

The Market Value (Verkehrswert) is determined by the price which could be achieved at the date of valuation in an arm’s length transaction reflecting the legal and physical situation, location and other character of the property or other subject of valuation, without consideration of unusual or personal interest.

f) Mortgage Lending Value (“Beleihungswert” according to § 16 PfandBG)

The mortgage lending value (Beleihungswert) must not exceed the value resulting from a prudent assessment of the future marketability of a property by taking into account the long-term sustainable aspects of the property, the normal regional market condition as well as the current and possible alternative uses. Speculative elements must not be taken into consideration. The mortgage lending value must not exceed a market value calculated in a transparent manner and in accordance with a recognized valuation method.

(Copy)

g) Plant & Machinery

An opinion of the price at which an interest in the Plant & Machinery utilized in a business would have been transferred at the date of valuation assuming:

fa) that the Plant & Machinery will continue in its present use in the business; fb) adequate potential profitability of the business, or continuing viability of the undertaking, both having due regard to the value of

the total assets employed and the nature of the operation; fc) that the transfer is part of an arm’s length sale of the business wherein both parties acted knowledgeably, prudently and without

compulsion.

h) Financial Statements Valuations for Financial Statements shall be in accordance with the IVSC International Valuation Application 1 (IVA 1).

i) Lending

Valuations for lending purposes shall be in accordance with IVSC International Valuation Application 2 (IVA 2).

3 Source of Information

We have relied upon the information provided to us by yourselves as to details of tenure, tenancies, planning consents, site area, accommodation, documents of title, cadastral plans, restrictions on title, and other relevant matters, as summarised in our report. We do not accept any liability for either the accuracy or the completeness of this information. We are neither obliged to confirm the completeness and correctness of the information provided nor to examine any original documentation for the same purpose.

4 Documentation

a) We do not normally read leases or documents of title and, where these have been provided to us, we recommend that reliance should not be placed on our interpretation thereof without verification by your lawyers.

b) We assume, unless informed to the contrary, that each property has a good and marketable title, that all documentation is satisfactorily drawn and that there are no encumbrances, restrictions, easements or other outgoings of an onerous nature, which would have an effect on the value of the interest under consideration, nor material litigation pending.

5 Tenants

Although we reflect our general understanding of a tenant's status in our valuations, enquiries as to the financial standing of actual or prospective tenants are not normally made unless specifically requested. Where properties are valued with the benefit of lettings, it is therefore assumed, unless we are informed otherwise, that the tenants are capable of meeting their financial obligations under the lease and that there are no arrears of rent or undisclosed breaches of covenant.

6 Town Planning and Other Statutory Regulations

a) Unless informed to the contrary, our valuations are prepared on the basis that the premises (and any works thereto) comply with all relevant statutory regulations, including enactments relating to fire regulations.

b) Information on Town Planning is often obtained verbally from the Local Planning Authority and, if reassurance is required, we recommend that legally binding written confirmation of the same is obtained.

7 Other Defects and Damages

a) We normally assume that:

aa) the building and its technical facilities are free of damages and other defects.

bb) the building was constructed or altered without using deleterious materials or techniques (including, by way of example, high alumina cement concrete, wood wool as permanent shuttering, calcium chloride or asbestos).

cc) the ground conditions are suitable and that, where development is contemplated, no extraordinary expenses or delays will be incurred during the construction period due to these, or to archaeological or ecological matters.

dd) the land is not contaminated.

b) Unless expressly instructed, we do not carry out a structural survey, nor do we test the services. Whilst any readily apparent defects or items of disrepair, which we note during the course of our inspection, will be reflected in our valuations, we are not able to give any assurance that any property is free from defect. We recommend the necessary surveys to be taken out in order to confirm our assumptions in this respect.

(Copy)

c) Unless expressly instructed we do not carry out technical surveys to ascertain whether those defects and damages exist, or have occurred in the past. We are therefore not able to give any assurance that any property is free from damages or other defects. Any readily apparent defects or items of disrepair, which we note during the course of our inspection, will be reflected in our valuation.

d) Provided that we are informed about:

other defects and damages of the building and its technical facilities

the application of any such materials, as listed in lit. ab) above

unsuitable ground conditions as set out in lit. ac) above

any contamination of land as listed in lit. ad) above by the client or any other party involved, such information will be reflected in our valuation, only if we are provided with reliable estimates of costs for their replacement or compensation.

8 Value Added Tax (VAT)

Valuations are prepared and expressed exclusive of VAT payments, unless otherwise stated.

9 Outstanding Debts

In the case of buildings where works are in hand or have recently been completed, we do not normally make allowance for any liability already incurred, but not yet discharged, in respect of completed works, or obligations in favour of contractors, sub-contractors or any members of the professional or design team.

(Copy)

Standard Terms of Business for Advisory Services

1 Scope

a) These Standard Terms of Business are applicable for contracts regarding general advisory, valuation and/or market research services between Jones Lang LaSalle GmbH (hereinafter also referred to as "Jones Lang LaSalle" or the "Advisor") and the client (hereinafter also referred to as the "Client").

b) The results of the work of the Advisor on the basis of this Agreement are intended exclusively for the Client and may only be used for the purpose specified in the Agreement. The disclosure of the results of this work to third parties is generally prohibited.

2 Limitation and Execution of Contract

a) Jones Lang LaSalle shall provide the agreed services, but shall not guarantee a particular economic result. Jones Lang LaSalle’s services will be deemed as complete once the agreed analyses and the corresponding conclusions and, where applicable, recommendations have been produced and presented to the Client or, in the event of an agreed expert-report or an agreed other written statement, these have been handed over to the Client. Jones Lang LaSalle’s services shall not include any legal or tax-related advice. The written report on the agreed services shall be deemed applicable. Verbal statements and information provided by Jones Lang LaSalle staff outside the terms of the agreed contract should be deemed non-binding, unless confirmed in writing.

b) Jones Lang LaSalle will fulfil the contract to the best of their knowledge and skill with due care and diligence, and in the case of a valuation, in accordance with the principles of the Royal Institution of Chartered Surveyors (RICS), an extract of which has been supplied to the Client.

c) Jones Lang LaSalle has the right to instruct specialist third parties (i.e. vicarious agents, or “Erfüllungsgehilfen”) to fulfil its contractual obligations.

d) Jones Lang LaSalle will only verify the information, especially numbers, provided by the Client for obvious inconsistencies and faults. In all other cases, Jones Lang LaSalle will assume the information provided by the Client is correct and complete. Furthermore, Jones Lang LaSalle accepts no responsibility for the accuracy or completeness of the documents and information provided by the client, whether it is in verbal, written or electronic format.

e) The Client does not have the right to demand that the contract be carried out by a specific employee of Jones Lang LaSalle.

f) Jones Lang LaSalle is under no obligation to inform the Client about any alterations or their implications resulting from a change in the conditions underlying the conclusions and recommendations of the contract specified above after the execution of the contract.

g) All changes and extensions to the contract must be made in writing. The same holds true for the waiver of this written contract agreement. Jones Lang LaSalle shall perform additional services required by the Client that are not specified in the original contract only on the basis of a separate agreement with a separate remuneration and liability. Should Jones Lang LaSalle render these services without both parties being able to agree to an appropriate remuneration for such additional services, the Advisor’s fee will increase according to the additional time and money required by the Advisor. Otherwise, the provisions and conditions of this Agreement remain applicable.

3 Deadline for Delivering Services

Any agreed deadline for delivering services shall be reasonably extended in case of force majeure or any reason for which the Advisor is not responsible but which may temporarily impair them from carrying out their work. Jones Lang LaSalle shall notify the Client without undue delay of any impediment to the performance of these services and the expected duration of the delay.

4 Information and Documentation supplied by the Client

a) The Client is obliged to assist Jones Lang LaSalle in the execution of the agreed contract as required, especially by supplying the necessary information and documentation properly, fully and on time. This also applies to documentation and information, which only become known or available during the course of the instruction of Jones Lang LaSalle. Should the Client fail to meet any of the aforementioned obligations to support Jones Lang LaSalle, Jones Lang LaSalle, notwithstanding their claims for compensation for additional expenses and damages, reserves the right to extraordinarily terminate the contract without notice.

b) Upon Jones Lang LaSalle's request, the Client shall confirm in writing the accuracy and completeness of all written documentation and information supplied as well as all verbal statements, if such a confirmation is possible through a necessary factual review without incurring additional costs or effort.

(Copy)

5 Guarantee

a) The Client has the right to demand that any deficiencies be corrected by Jones Lang LaSalle, to the extent that this is possible and reasonable for Jones Lang LaSalle. Should Jones Lang LaSalle not be able to or fail to correct the deficiency, the Client reserves the right to cancel the contract or reduce the fees. If the contract has been awarded by a merchant within the scope of its commercial activities, by a public-law legal entity or by a public-law fund, the Client can only cancel the contract if Jones Lang LaSalle’s work is of no further interest to the Client, because of the failure of Jones Lang LaSalle to correct the deficiency. All further damage claims are governed by section 6 below.

b) The Client is required to report any obvious shortcomings in writing within two weeks of the completion of services. Should the Client be a merchant, patent defects shall be notified without undue delay and latent defects shall be notified without undue delay and in writing upon discovery. In any case, claims because of defects must be notified no later than six months after completion of services. If the Client fails to report errors in due time, any claim for correction of these deficiencies and all other claims because of the defect is excluded.

c) Obvious errors, such as typing and arithmetical errors and deficiencies of form may be corrected by Jones Lang LaSalle at any time also with effect against third parties. Errors which are apt to question the results contained in Jones Lang LaSalle’s written report entitle Jones Lang LaSalle to withdraw such statements also with effect against any third party. In such cases Jones Lang LaSalle will first give the Client an opportunity to comment.

6 Liability and Disclosure of Information to Third Parties

a) Jones Lang LaSalle only assumes unlimited liability – irrespective of the legal reason – for damage resulting from wilful or grossly negligent conduct caused by a legal representative, employee or vicarious agent (“Erfüllungsgehilfe”) of Jones Lang LaSalle. Otherwise, Jones Lang LaSalle’s liability for damage caused by Jones Lang LaSalle, its legal representatives, employees and vicarious agents – irrespective of the legal reason – shall be limited to a maximum total amount of € 7.5 million (in words: seven point five million euros), unless agreed otherwise by the Advisor and the Client.

b) Any liability for lost profits shall be excluded.

c) The aforementioned maximum liability amount shall also apply if the damage is based on various or several similar professional errors or an error that has resulted in different types of damage and/or if there is more than one claimant.

d) If compensatory damage claims against Jones Lang LaSalle are excluded or limited, this shall also apply with regard to the personal liability of Jones Lang LaSalle's legal representatives and employees.

e) The aforementioned exclusions and limitations of liability shall not apply to damages arising from injury to life, limb or health.

f) The contractual remuneration has been determined on the basis of the performance and obligations specified in this Agreement. Jones Lang LaSalle's responsibilities under this Agreement and its performance shall be towards the Client exclusively. The results of the work executed by Jones Lang LaSalle shall remain confidential and are intended exclusively for the Client and only for the purposes specified in this Agreement. Any other use and, in particular, disclosure to third parties or other publications (disclosure to third parties) – including extracts – without Jones Lang LaSalle's prior written consent shall be prohibited. In the event of consent to disclosure to a third party, the Client agrees to notify the respective third parties in writing and to underline that Jones Lang LaSalle generally assumes no liability towards third parties for the work and services provided and that third parties may make no claims whatsoever against Jones Lang LaSalle on the basis of the work and services provided. The Client also agrees to indemnify Jones Lang LaSalle against any third party claims and associated costs asserted by third parties against Jones Lang LaSalle as a result of unauthorised disclosure or publication of the results of the work and services provided. "Third parties" in this context shall also include the Client's Affiliates.

g) Jones Lang LaSalle may assume liability towards third parties for its valuation only if the relevant third party has accepted the limitation of liability set forth in section 6 and has accounted for the respective additional remuneration for the joint and several liability.

h) Should Jones Lang LaSalle have assumed liability as against third parties for its valuation pursuant to section 6f) and 6g), this shall be done only on the basis of the following minimum fee rates per contract volume:

The percentage rates set forth above shall be applied to the determined market value respectively fair value of the real estate, which is defined in § 2 of Jones Lang LaSalle's "General Principles for Preparing Valuations and Reports". The above-mentioned rates do not include value added tax and shall be no less than € 500 per designated additional party.

Market value resp. Fair Value

First party Second and subsequent parties

For the first ten million euros

0.05% 0.02% per party

For the following ninety million euros

0.025% 0.01% per party

Thereafter 0.0125% 0.005% per party

(Copy)

7 Restriction on Use and Copyright Protection

a) The Client guarantees that the valuations, reports, plans, drafts, sketches, tables and calculations prepared by Jones Lang LaSalle as part of the contract shall be used only for the contractually agreed purposes and may not be published in individual cases without Jones Lang LaSalle's express consent.

b) Should the work produced qualify for copyright protection, Jones Lang LaSalle shall remain the author. In such cases, the Client shall be granted a limited, irrevocable, exclusive and non-transferable licence to use the work produced.

8 Return of Documents

After settlement of all conditions agreed in the advisory, valuation or market research contract, Jones Lang LaSalle, on request of the Client, shall return all documents obtained from the Client in order to carry out the instruction. This does not apply to correspondence between the contractual parties and for copies made of the valuations, reports, plans, drafts, sketches, tables and calculations prepared as part of the contract as well as other documents, which Jones Lang LaSalle is legally bound to store or entitled to. The Advisor also has the right to make copies of these released documents for its files.

9 Confidentiality

Jones Lang LaSalle will treat all business and operational secrets of which it becomes aware in the context of the contract and that are recognisable as such and all information indicated to be confidential as confidential, as long as this information is not required by law or public authority. The Advisor will only divulge reports, valuations and other results containing such information to third parties with the consent of the Client, unless required by law or public authority.

10 Payment Conditions

a) The agreed remuneration will be payable immediately upon issue of invoice without any deductions.

b) If there is more than one client, they shall be jointly and severally liable.

c) A set-off of claims of the Advisor for fees and payment of costs is only possible with an uncontested and legally recognised claim.

11 Miscellaneous

a) Rights under the contractual relationship with the Advisor may be only assigned subject to its prior consent.

b) The laws of the Federal Republic of Germany shall apply to the execution of all contracts relating to general advisory, valuation and/or market research services and all claims resulting thereof.

c) If the contract has been awarded by a registered trader (“Vollkaufmann”), public-law legal entity or public-law fund, the place of jurisdiction is Frankfurt am Main.

d) Should any individual clause of these Standard Terms of Business be deemed void, this will not affect the validity of any other parts of these Standard Terms of Business. The invalid provisions shall be replaced by that which lawfully most closely reflects the desired purpose.

e) All amounts mentioned above are in euros and shall be subject to the legally valid Value Added Tax at the time of the work was executed, unless explicitly excluded.

f) A copy of the internal complaints handling procedure can be made available on request.

(Copy)

Andrew m. Groom MRICS International Director Wilhelm-Leuschner-Straße 78 60329 Frankfurt/M. + 49 (0) 69 2003 1241 [email protected]

Frank Rambow MRICS National Director Wilhelm-Leuschner-Straße 78 60329 Frankfurt/M. + 49 (0) 69 2003 1186 [email protected]

Georg Charlier Principal Consultant Wilhelm-Leuschner-Straße 78 60329 Frankfurt/M. + 49 (0) 69 2003 1284 [email protected]

(Copy)

Valuation Report 'Matrix Portfolio, Valuation of 13 properties''

Documents

Transcript of Valuation Report 'Matrix Portfolio, Valuation of 13 properties''