CG malls europe - Commerz Real

Annual Report 2009
as at 31 December 2009

Content
General Information 2
At a Glance 5
Financials 6
Manager’s Report 10
Property Report 28
Financial Report 52
Valuers Statements 58
Financial Statements 61
Last updated: 07 July 2010
1

2
General Information
Fund name: CG Real Estate Master FCP-SIF
Sub-Fund name: CG malls europe
Seat Luxembourg
Legal form Fonds Commun de Placement (FCP)
ISIN LU0331534734 (Class A Units)
Management Company CG Real Estate Luxembourg S.à r.l.
25, rue Edward Steichen
L-2540 Luxembourg
Managing Directors:
Dr. Bernhard Weber
Detlef Koppenhagen
Contact Constanze Gabellini
Management Assistant
Tel.: +352 47 79 11 25 02
Fax.: +352 47 79 11 25 99
constanze.gabellini@commerzbank.com
Investment Committee Dr. Frank Pörschke (Chairman)
Bernd Knobloch
Dr. Heinrich Kraft
Unitholder Advisory Committee Aberdeen Property Investors Netherlands B.V.
MN Services Vermogensbeheer B.V.
Schroder Investment Management Limited
Commerz Real AG

General service provider Commerz Real AG
Kreuzberger Ring 56
D-65205 Wiesbaden
Germany
Contact Detlef Koppenhagen
Fund Director CG malls europe
Tel.: +49 611 71 05 408
Fax.: +49 611 71 05 159
detlef.koppenhagen@commerzreal.com
Custodian, administrative agent, Brown Brothers Harriman (Luxembourg) S.C.A.
paying agent and registrar and 2-8, Avenue Charles de Gaulle
transfer agent B.P. 403
L-2014 Luxembourg
Valuer Cushman & Wakefield
Westhafenplatz 6
D-60327 Frankfurt am Main
Germany
Auditor PriceWaterhouseCoopers S.à r.l.
400, route d’Esch
B.P. 1443
L-1014 Luxembourg
Legal advisor Linklaters LLP Luxembourg
35, Avenue John F. Kennedy
P.O. Box 1107
L-1855 Luxembourg
Linklaters LLP Germany
Mainzer Landstr. 16
D-60325 Frankfurt am Main
Germany
3

Almada Forum

At a Glance
Property information
as at 31 December 2009 Almada Forum Forum Montijo Espacio León Total
Country Portugal Portugal Spain
Location Almada Montijo León
Total GLA (sqm) 81,400 58,200 36,500 176,100
Thereof hypermarket (sqm) 21,900 17,500 0 39,400
GLA without hypermarket (sqm) 59,500 40,700 36,500 136,700
Parking spaces 5,253 3,900 1,339 10,492
No. of Shops 253 163 113 529
Current market value
(million EUR) 333.6 154.5 77.7 565.8
Property information
01 Jan 2009 – 31 Dec 2009
Sales (million EUR) 209.9 116.1 79.5 405.5
Footfall (million) 15.4 8.6 4.7 28.7
CG malls europe capital commitments
as at 31 December 2009 in EUR
Total capital committed 290,000,000.00
Capital drawn and invested 290,000,000.00
Remaining capital commitments 0.00
5

6
Financials
Balance Sheet by Fund GAAP
as at 31 December 2009
Assets
Investment properties (market value) 565,818,000.00
Other assets 50,789,162.33
Gross asset value (GAV) 616,607,162.33
Liabilities
External debt 377,963,687.51
Other liabilities 31,457,042.95
Total liabilities 409,420,730.46
Net asset value (NAV) 207,186,431.87
Share capital 290,000,000.00
Reserves -82,813,568.13
Total units 2,900,000.00
NAV per unit 71.44

Profit & Loss Accounts by Fund GAAP
for the Period 01 January 2009 – 31 December 2009
Revenues 56,415,259.00
Interest income 104,053.00
Other operating income -604,237.98
Total income 55,915,074.02
Operating expenses -23,973,486.37
Operating result 31,941,587.65
Unrealised gain/loss in Inv. Properties -48,647,000.00
Finance costs -20,494,121.00
Non-operating costs -792.44
Result before tax - 37,200,325.79
Total income taxes -778,629.89
Loss of the period -37,978,955.68
Distribution for 2009
Total Distribution 9,425,00.00
per unit 3.25
Cash-on-cash return on signed equity 3.25%
For 2009, the management will distribute EUR 3,25 per share on 19 July 2010.
Financials
7

Almada Forum

Forum Montijo
Espacio León

10
Manager‘s Report on the Fund
On 19 October 2007, CG Real Estate Luxembourg S.à r.l. launched its first sub-fund under
the umbrella of Commerz Real Estate Master FCP-SIF by issuing the draw-down notices
for CG malls europe to investors. By 26 October 2007, the drawn capital was received by
our investors in order to purchase the Fund’s seed portfolio on 31 October 2007.
This report is based both on the INREV Reporting Guidelines and the reporting standards
for other real estate fund’s of Commerz Real, especially the open-ended real estate
funds, and should provide sufficient information on CG malls europe.
1. Strategy of CG malls europe
CG malls europe’s strategy is to invest in dominant regional shopping centres with the aim
of creating a portfolio, diversified both by geography and by real estate type. We define dominant
regional shopping centres as schemes which generally meet the following criteria:
1. The centre will typically have a gross lettable area of at least 35,000 sqm (although,
depending on the size of the relevant market, 25,000 sqm may suffice).
2. The centre will typically have a branch and tenant mix aligned with consumer
spending.
3. The centre will typically have a professional centre management.
4. The centre will typically be integrated into a city or city district.
However, on an individual basis, greenfield locations are permissible if the centre is or
has the potential to become the dominant shopping centre destination within its catchment
area. The relative importance of each of these characteristics varies when determining
whether a property is a suitable asset for the Portfolio. In other words, the abovementioned
criteria are important but not compulsory for the assets held by the Fund.
The Fund’s relevant target markets consist of the member states of the European Union
plus Norway and Switzerland, and present candidate countries to the European Union
Croatia, Macedonia and Turkey. However, in order to reduce country risks and meet the
requirements of our investors, the two member states most recently admitted to the EU,
Bulgaria and Romania, were excluded until January 2009.
2. Economic Environment
2.1 Macroeconomic View
The European Economy (EU 27) contracted by 4.2% over the whole 2009 compared
with +0.7% in 2008. The recession in the EU 27 bottomed out in the summer of the last
year when GDP declined by -4.3% in Q3 followed by + 2.2 in Q4. Apart from Poland, all
member states saw a negative GDP Growth rate. With -18% Latvia recorded the strongest
decline over the year. For 2010 we are estimating that the GDP in the EU 27 will
grow by 1.2% in total.

GDP Growth Rate Aggregated in % p.a.
in %
7
5
3
1
-1
-3
-5
2003 2004 2005 2006 2007 2008 2009 2010e 2011e 2012e 2013e 2014e
Source: The Economist Intelligence Unit, May 2010
Source: The Economist Intelligence Unit, May 2010
Preliminary figures are showing that during the first three months of 2010 the GDP
growth rate was stronger than in Q4 and we are expecting a rate of 0.5% (qoq). The
recovery is still below trend and not without downside risk. Concerns are how authorities
will manage to withdraw their extraordinary fiscal and monetary policy, the social
and fiscal situation in the PIIGS (Portugal, Ireland, Italy, Greece and Spain) and how the
private sector in countries like Ireland and Spain will write off debt.
With a view to the global recession, the uncertainty at the beginning of 2009, and the
growing unemployment rates in all member states, it is not surprising that private
consumption was negative in 2009 for most of the CG malls europe target countries.
In recent years, the average growth rate for private consumption was 2%, but consumers
have significantly cut down on their spending since the onset of the crisis, and
for the first time since the late 1970s private consumption was negative (-1.7%). As a
consequence, retail turnover between Q2 2008 and Q3 2009 was negative in most of the
countries covered.
Retail Turnover in % p.m.
3
2
1
0
-1
-2
-3
-4
-5
Jan 06
Apr 06
Jul 06
Oct 06
EU 27 East and Central Europe Nordics Southern Europe
Jan 07
Apr 07
Source:
Source:
EuroStat.
EuroStat,
*3-months
*3 Months
rolling
roling
average;
average;
excluding
excluding
Automotive,
Automotive,
SA. May
SA.
2010
May 2010
Jul 07
Oct 07
EU 27 Germany France Spain
Jan 08
Apr 08
Jul 08
Oct 08
Jan 09
Apr 09
Jul 09
Oct 09
Jan 10
Manager‘s Report on the Fund
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12
For 2010, the Economist Intelligence Unit is forecasting a positive consumption growth
in the majority of the European countries, whereas the outlook for the Baltics, the Czech
Republic, Hungary, Spain and the UK remains negative.
Private Consumption Growth in % p.a.
5
0
-5
-10
FI SE DK PL AT FR SK PT IT BE RO DE CZ NL GB ES HU IE
Source: The Source: Economist The Economist Intelligence Intelligence Unit, May Unit, 2010May
2010
All segments of the European Sentiment Indicator improved over the last year. This is
to some extent explained by the fact that the fear of unemployment eased during the
second half of 2009 and that order books in the industry began to fill again. Retailer and
consumer sentiment has improved steadily since Q1 2009, and is now (as at April 2010)
back on a level last seen two years ago. The majority of retailers are “literally” positive
(+0.3 points) as for their current situation, while the consumer sentiment is still below
“neutral” (-12.3 Points). Also, the improved result of the European Purchasing Manager
Index (PMI) suggests that the economy in Europe is recovering: The worst is over! That
said, we need to differentiate between the specific situations in each sector: Whereas
wariness lingers in the building and construction industry, the service sector industry
appears to be in high spirits.
European Sentiment Indicator
20
10
0
-10
-20
-30
-40
Jan 07
Apr 07
Source: EuroStat, May 2010
Source: EuroStat May 2010
2009 2010e 2011e
Retail Sentiment Consumer Sentiment European Sentiment Indicator
Jul 07
Oct 07
Jan 08
Apr 08
Jul 08
Oct 08
Jan 09
Apr 09
Jul 09
Oct 09
Jan 10
Apr 10
140
100
60
20
-20

Even though the aforementioned indicators show that the situation is returning to normal,
we need to remember that economic growth is rebounding from a low level, and
that we are still a long way from a “normal” economy: a regression cannot be ruled out!
The current situation in the so called PIIGS states and the implication for the Eurozone
open onto a potential risk for the near future. The one-million-Dollar question is just how
the current turmoil of the Euro currency will affect the real economy.
2.1 Retail Market
Negative consumer spending and weak retail sales caused shopping centre development
to slow significantly last year. Instead of nearly 10 million sqm of new space completed
as expected for 2009, only 8 million sqm were delivered. But while a lot of announced
projects have been shelved in Spain and Italy, Russia and Turkey saw plenty of activity in
2009. In the course of the year, 127 shopping centre developments were postponed. In
Western Europe, the pipeline for France remains intact, yet one third of the upcoming
projects are actually refurbishments explained by the obsolete stock of the French shopping
centre market.
The decreasing demand for shopping centre space is translating into higher vacancy
rates. Most affected are shopping centres with an insufficient tenant mixture and / or
location, while successful prime centres attract a higher footfall and more retailers.
Even when the average performance of shopping centres in Europe turned into negative
growth in 2008 and 2009, sound assets (good location, good management, etc.) remained
robust and saw positive growth.
Total Returns in Real Estate Market?
0
-5
-10
-15
-20
-25
-30
-35
FR DE IE IT NL PL ES SE UK
Source: JPMA, based in IPD, May 2010
Source: JPMA, based in IPD, May 2010
2008 2009
Manager‘s Report on the Fund
13

14
Larger shopping centres of more than 40,000 sqm tend to show an above-average performance.
This is true especially for Dominant Regional Shopping Centres, which benefit
from a controlling position within a given catchment area that can be sustained strategically.
The average vacancy rate at this type of mall undercuts 4% (up from < 3% in
2008) while smaller centres tend to have a vacancy rate nearly twice as high (7.9% based
on ten countries).
Vacancy Rates in Shopping Center > 40,000 sqm
in %
10
8
6
4
2
0
Source: PMA, May 2010
Source: PMA, May 2010
Vacancy rates differ from one region to the next. In Spain and the UK, where the economic
downturn started earlier, vacancy rates are above the European average. Property
Market Analysis Ltd. (PMA) reported that the vacancy rate in Dominate Regional Shopping
Centre reached 9% (2008: 7%) in the UK and 8% (2008: 5%) in Spain. By contrast,
countries where the economic downturn started later, and where the private consumption
was not fed by a housing bubble, the vacancy rate in large shopping centres remains
relative low (e.g. Germany 2%, France 3% and Poland 2%). In Portugal, the vacancy rate
for this market segment decreased from 3.1% in 2008 to 2.1% in 2009.
European Direct Real Estate Investment Volumes
300
250
200
150
100
50
0
23.6
39.6
Source: Jones Lang LaSalle, May 2010
(EUR, Source: bn) Data Jones excludes Lang Residential, LaSalle, Land and may Developments, 2010 deals considered >USD 5 million
2008 2009
DE PL CZ PT FR IT ES HU UK
24.9
34.0
48.0 51.0
56.0
74.2
97.2
73.8 77.0 76.7
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(EUR, bn) Data excludes Residential, Land and Developments,
deals considered >USD 5 million
Cross-Border Domestic
156.4 153.5
96.8 90.6
62.9
33.4
49.5 35.7

During the first quarter of 2009, the European retail investment market reached its low
point. The biggest problem in 2009 was the absence of the debt securitisation market,
and only large equity players where active during the first half of 2009. Investors where
seeking for core assets mainly in the UK, the Netherlands, France and Germany. During
the second half of the year, activities picked up in all European countries. At EUR 8.1 billion,
Q4 2009 registered the highest retail investment volume since Q3 2008. For 2009,
the total retail investment volume for the whole of Europe amounted to some EUR 20
billion, that is, down by a third compared to 2008. With a 28% share of the total volume,
retail investments remained virtually stable in comparison to 2008.
European Direct Real Estate Investments by Sectors
100%
80%
60%
40%
20%
0%
27%
19%
54%
21%
24%
55%
26%
25%
49%
32%
24%
44 %
24%
26%
50%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Jones Lang LaSalle, May 2010
30%
27%
43%
Others Retail Office
26%
25%
49%
27%
21%
53%
Source: Jones Lang LaSalle, May 2010
(EUR, bn) Data excludes Residential, Land and Developments, deals considered >USD 5 million
(EUR, bn) Data excludes Residential, Land and Developments,
21%
27%
50%
22%
28%
51%
Investor’s
deals
interest
considered
in shopping
>USD
centres
5 million
very much concentrated on the prime end of the
market. Therefore the average prime yield for this market segment started to stabilize
in Western Europe after an increase of nearly 150 base points between 2007 and the
first half of 2009. During the second half of 2009, the average prime yield came down
by 20 base points to 6.1%. This decrease was mainly driven by pricing in the UK, where
the prime yield decreased from 7% in Q1 to 6.25% in Q4 2009. Yields for secondary
shopping centres started to stabilise, but there is not much market evidence to substantiate
the pricing.
Manager‘s Report on the Fund
15

16
Shopping Centre Prime Initial Yields (1998-2010)
in%
12
10
8
6
4
Source: Commerz Source: Commerz Real, May Real, 2010 May 2010
The distinguishing feature of regional shopping centres is that they generate long-term
stable revenues even in periods of market imbalances. It is obviously easier for larger
shopping centre schemes to use their diversified portfolio of tenants to diffuse the risk
of falling rents. Well-planned shopping centre layouts allow centre managers to adjust
retail space to meet the requirements of new tenants and to adapt retail formats to the
latest market trends.
Density of Shopping Centres of More than 35,000 sqm GLA in Europe
35,000m² - 50,000m²
50,000m² - 80,000m²
over 80,000m²
Source: GfK (2008)
Western Europe Scandinavia CEE
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

The relevant European investment universe comprises the EU 27 countries, Norway and
Switzerland, as well as the EU candidate countries Croatia, Macedonia and Turkey. In
total, this territory includes about 700 potential acquisition targets larger than 35,000
sqm GLA (see figure 7), among them malls under construction or showing repositioning
potential. In order to allow for a structured investment approach, the regions in
which those centres are located will be classified according to their market maturity
into the categories “core” and “emerging market”. The major differentiating features
in this context are the proportionate density of competitors as measured by shopping
centre supply per 1,000 population and growth of retail-specific real purchasing power.
Commerz Real believes that the purchasing power within the relevant catchment area
constitutes the key factor for the success of a retail centre. The analysis identified the
following categories:
(a) European core markets:
Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg,
the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom.
(b) European emerging markets:
Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Macedonia,
Malta, Poland, Slovakia, Slovenia, and Turkey (including Bulgaria and Romania,
even though fund regulations excluded them from commitments until January
2009).
Categories of Target Countries
GLA/1,000 Population
700
600
500
400
300
200
Netherlands
Ireland
100
Latvia
Malta
Czech Republic
Hungary
Greece
-2 -1
0
0 1 2 3 4 5
Poland
DE
BE
Croatia
Lithuania
Slovakia
Turkey
Bulgaria
Romania
Forecasted CAGR of Real Consumer Spending (Ø 2010 - 2014 in % p. a.)
Source: Cushman & Wakefield, GFK, The Economist Intelligence Unit, May 2010
PT
Italy
UK
CH
Austria
Sweden
France FI
ES Lux.
DK
Estonia
Norway
Core
Emerging
Forecasted CAGR of Real Consumer Spending (Ø 2010 - 2014 in % p. a.)
Source: Cushman & Wakefield, GFK, The Economist Intelligence Unit, May 2010
Manager‘s Report on the Fund
17

18
As the figure above shows, many Western European countries show medium to high
saturation in terms of shopping centre density (which is especially true for Austria, Ireland,
Italy, the Netherlands and Norway) and slower growth prospects in the long term
for consumer spending (mainly Ireland, the Netherlands, Portugal, and the UK). Compared
to these core markets, emerging markets show a low to medium density of retail
areas but also the highest growth expectations for long-term consumer spending. The
average growth rate for the emerging markets for the next five years is 1.9%, compared
to 1.3% for all core markets.
3. Investor Structure
The Fund was launched with four investors on 19 October 2007. One of these was Commerz
Real which placed a strategic investment and provided the necessary equity for the
seed portfolio. The other investors are engaged mostly as real estate investment advisors
or fund-of-fund managers.
The following chart shows the origins of the investors in CG malls europe.
Figure 10: Investor Structure as at 31 December 2009
United Kingdom 10.4 %
Netherlands 31.6 %
Germany 58.0 %

4. Fund Structure
The chart below shows the Fund’s current structure which comprises nine companies
in four countries, and is designed to optimise the interest structure of the seed portfolio
and to provide a perfect basis for future investments.
Fund Structure
CGM Lux 2 (L)
Forum Almada
Gestão de Centro Comercial
S.U., Lda. (P)
70%
Forum Almada
Gestão de Centro Comercial
S.U., Lda. II & Comandita (P)
30%
CGM Lux 1 (L)
CGM Lux 3 (L)
Forum Montijo
Gestão de Centro Comercial
S.U., Lda. (P)
Brafero
Sociedade Imobiliária S.A.
(P)
Management
CG NL Holding B.V.
(NL)
Espacio León
PropCo S.L.
(E)
Almada Forum Forum Montijo Espacio León
CG malls europe owns three Luxembourg holding companies, these being CGM Lux
1 S.à r.l., which is the top-tier parent company in the holding structure, and its two
Luxembourg subsidiaries, CGM Lux 2 S.à r.l. and CGM Lux 3 S.à r.l. While the two-tier
approach in Luxembourg is quite common as it allows to sell the whole portfolio at once
by selling the interest of the second-tier company, our approach of having two companies
at the second tier takes the specific structure of the seed portfolio into account. It also
helped to prevent the payment of transfer taxes on the purchase of Almada Forum.
Manager‘s Report on the Fund
CG Real Estate
Luxembourg
19

20
All three Luxembourg companies are financed through profit-participating loans (PPLs).
The table below shows the respective amounts of these PPLs that are used to procure for
CGM Lux 2 S.à r.l. and CGM Lux 3 S.à r.l. the funds necessary to acquire the respective
components of the seed portfolio.
Profit Participating Loans
Lender Borrower Amount
CG malls europe CGM LUX 1 289,833,402.06
CGM LUX 1 CGM LUX 2 97,862,982.65
CGM LUX 1 CGM LUX 3 191,950,419.40
Through these Luxembourg companies, the Fund indirectly owns four Portuguese
companies, one Dutch holding and one Spanish property company. For details on these
companies, see the description of the respective acquisition.
5. Acquisition of Seed Portfolio
On 31 October 2007, the Fund acquired the seed portfolio from another fund managed
by the Commerz Real Group. The seed portfolio comprises three premium dominant
regional shopping centres that fit the Fund strategy. It consists of Almada Forum and
Forum Montijo, both located south of Lisbon, Portugal, and Espacio León, located in
León in northern Spain. In order to mitigate conflicts of interests arising because seller
and buyer were affiliated companies, a process was designed in which a total of three independent
valuers were commissioned to calculate the market values of each of the three
properties. These valuers were Cushman & Wakefield and DTZ on the one hand and the
independent valuers of the selling fund on the other hand. To ensure transparency and
objectivity, Commerz Real engaged BDO Deutsche Warentreuhand AG, an audit company
not affiliated with Commerz Real, to supervise and monitor the valuation process performed
by the three valuers.
The chosen process was a simulation of a tender process or auction – i.e. the process
most likely to be chosen for a third-party transaction – that implied advantages for either
party. The seller benefits from getting the highest price for his assets within a bracket
that reflects the realistic valuations of individual assets. The buyer in turn benefits from
this pricing process since it precludes transaction insecurity and the possible loss of
expenditures connected with primary due diligence analyses.
The subsequent paragraphs provide detailed information on each of the properties, including
the structuring and financing details. For more information about the properties
themselves, please refer to the Property Report section below.

5.1 Almada Forum
Almada Forum is held by Forum Almada – Gestao de Centro Comercial, Sociedade
Unipessoal, Lda. II & Comandita (Almada Cda.). The company has let the entire mall to
Forum Almada – Gestao de Centro Comercial, Sociedade Unipessoal, Lda. (Almada Lda.)
which acts as the operating company and grants use rights for the shops to the respective
tenants.
Almada Lda. was bought by CGM Lux 2 S.à r.l., and Almada Lda. subsequently acquired
a 70% interest in Almada Cda. The remaining 30% interest was acquired by CGM Lux 3
S.à r.l. As Almada Cda. is a private company, the 70/30-split was necessary to avoid the
payment of a transfer tax.
The current structure of the Almada investment – as well as the overall structure – was
designed with a view to tax efficiency. Therefore the companies were funded both
through external and internal loans. In this specific case, Almada Lda. received three
different types of loan facilities to finance the acquisition of its 70% interest in Almada
Cda.: a EUR 35,800,000 loan facility from Eurohypo Portugal, a EUR 42,663,800 intragroup
loan from Forum Montijo – Gestao de Centro Comercial, Sociedade Unipessoal,
Lda. (Montijo Lda.), the operating company for Forum Montijo, and a EUR 96,844,069.52
shareholder loan from CGM Lux 2 S.à r.l. CGM Lux 3 S.à r.l. financed the 30% interest in
Almada Cda. through the PPL received from CGM Lux 1 S.à r.l.
Financing structure as at 31 December 2009 31 December 2008
Almada Lda. Almada Lda.
Equity -35,705,559.00 -17,546,615.93
Shareholder loan 96,844,069.52 96,844,069.52
Intra-group loan 42,663,800.00 42,663,800.00
Long-term debt 35,800,000.00 35,800,000.00
161,749,306.80 157,761,253.59
The grant of the intra-group loan is explained by the fact that due to Portuguese legal
restrictions – the so-called financial assistance – it is impossible for a borrower to use a
loan secured by an asset owned by a third party to buy – once the loan has been drawn –
this third-party collateral. In order to avoid the issue, the loan granted to Almada Lda. is
secured by Forum Montijo and vice versa. As this construction created excessive external
debt in Montijo Lda. and a deficit in Almada Lda., the missing debt for Almada Lda.
had to be transferred through an intra-group loan.
By 17 November 2009, the market value of Forum Almada Lda. was EUR 333,597,000.00,
appraised by Cushman & Wakefield. This data undercut the value of December 2008
(EUR 357,874,000.00) by EUR 24,277,000.00 (-6,8%).
Manager‘s Report on the Fund
21

22
5.2 Forum Montijo
The acquisition, holding and financing structure used in the case of Forum Montijo
closely resembles the one described for Almada Forum. Therefore, similarities will not
be detailed again below.
Forum Montijo is held by Brafero – Sociedade Imobiliària, S.A. (Brafero S.A.). The company
has let the whole centre to Forum Montijo – Gestao de Centro Comercial, Sociedade
Unipessoal, Lda. (Montijo Lda.) which acts as the operating company and grants use
rights for the shops to the respective tenants.
Montijo Lda. was purchased by CGM Lux 3 S.à r.l., and subsequently bought the shares
of Brafero S.A. As Brafero S.A. is a capital company, the acquisition of 100% of the shares
by Montijo Lda. did not trigger any transfer tax payments.
CGM Lux 3 S.à r.l. was funded through a PPL from CGM Lux 1 S. à r.l. for the acquisition
of Montijo Lda. which received an external loan from Eurohypo Portugal amounting to
EUR 90,670,000.00 and a shareholder loan from CGM Lux 3 S. à r.l. amounting to
EUR 69,473,566.83. These funds were used to acquire the shares of Brafero S.A., to
cover expenses connected with the external financing and to grant an intra-group loan
to Almada Lda.
Financing structure as at 31 December 2009 31 December 2008
Montijo Lda. Montijo Lda.
Equity -18,752,558.85 -6,643,006.68
Shareholder Loan 69,473,566.83 69,473,566.83
Intra-Group Loan -42,663,800.00 -42,663,800.00
Long-term Debt 90,670,000.00 90,670,000.00
108,401,355.77 110,836,760.15
By 17 November 2009, the market value for Forum Montijo was EUR 154,481,000.00,
appraised by Cushman & Wakefield. This figure undercuts the value of December 2008
(EUR 164,337,000.00) by EUR 9,856,000.00 (-6.0%).
5.3 Espacio León
The acquisition of Espacio León was an asset deal, in contradistinction to the two
Portuguese share deals. The property was bought by the newly incorporated Spanish Espacio
León PropCo, S.L., (León PropCo). This company is held indirectly by CGM Lux 3
S.à r.l. through a Dutch holding company, the CG NL Holding B.V. With the incorporation
of the latter the Fund benefits from the existing double tax treaty between the Netherlands
and Spain, which is even more advantageous than the agreement in place between
Luxembourg and Spain.

León PropCo received one long-term loan facility from Eurohypo Spain, amounting
to EUR 61,980,000.00 for the financing of the purchase. León PropCo was capitalized
with a total equity of EUR 11,450,238.95 in 2007 by its shareholder CG NL Holding
B.V., which in turn received the required funds for this action by CGM Lux 3 S.à r.l.
in the form of equity. In addition, León PropCo was provided with a shareholder loan
over EUR 34,361,156.86 by CGM Lux 3 S.à r.l. which was converted into a PPL in April
2010 and was increased by EUR 4,000,000.00 and hence subsequently amounts to
EUR 38,361,156.86. The table below shows the financing sources of the company as at
accounting date:
Financing structure as at 31 December 2009 31 December 2008
Espacio León PropCo Expacio León PropCo
Equity -16,405,443.93 -1,702,719.62
Shareholder loans 34,361,156.86 34,361,156.86
Long-term debt 61,980,000.00 61,980,000.00
79,200,901.46 94,638,437.24
By 17 November 2009, the market value for Espacio León equalled EUR 77,740,000.00,
appraised by the valuation of Cushman & Wakefield. This figure undercuts the value of
December 2008 (EUR 92,254,000.00) by EUR 14,514,000.00 (-15.7%).
6. Development and Performance of the Fund
6.1 Return Figures, in Compliance with Fund GAAP
Having drawn the investors’ capital, the Fund was launched on 26 October 2007. It acquired
the properties described above on 31 October 2007. Therefore, the 2007 financial
year of CG malls europe consisted of just over two months, and – with the exception of
some interest income – there were neither income nor expenses to report before 01 November
2007.
The year 2009 marked the second full financial year after 2008. Like the previous year,
it was defined by the severe real estate and financial crisis. This necessitated substantial
adjustments of the fair market values of the properties in 2009. Following depreciations
totalling EUR 42.3 million in 2008, another EUR 48.6 million worth of impairments had
to be posted in 2009. This means that the portfolio value decreased by altogether 13.8%
since September 2007. Depreciations of this magnitude also negatively impacted the
overall performance of 2009 (-13.1%). Notwithstanding the altogether successful followup
lettings in Montijo and León, the gross rental income slightly decreased to EUR 44.1
million (down from EUR 44.5 million in 2008). Particularly the increasing number of
discounts / bonifications, but also the decline in sales on the tenant side, pushed the base
rent down by EUR 0.5 million and the turnover rent down by EUR 0.3 million.
Manager‘s Report on the Fund
23

24
The following list shows the performance key figures basing on Funds-GAAP for the
whole year 2009.
Fund GAAP Return Figures for 2009
Real estate return figures
Almada Montijo León Total
Current market value
(Nov. 2009) 333,597,000 154,481,000 77,740,000 565,818,000
Gross income 9.2% 9.9% 13.6% 10.0%
Management costs -3.1% -4.2% -6.4% -4.5%
Net income 6.1% 5.7% 7.2% 5.5%
Reappraisals -7.3% -6.4% -18.7% -8.6%
Real estate result -1.2% -0.6% -11.5% -3.1%
Foreign income taxes 0.0% 0.0% -0.0% -0.2%
Result before loan expenditures -1.2% -0.6% -11.5% -3.2%
Loan expenditures -2.6% -5.0% -4.2% -3.5%
Result after loan expenditures -3.8% -5.7% -15.7% -6.7%
Equity return figures
Initial equity invested
(Oct. 2007) 172,692,717 71,284,051 45,814,876 290,000,000
Result after loan expenditures -7.3% -12.2% -26.6% -13.1%
Average fixed equity (2009) 139,702,913 56,775,784 25,307,075 232,016,005
Result after loan expenditures -9.0% -15.4% -48.1% -16.4%
6.2 Adjusted Return Figures
In the following schedule, the performance key figures are adjusted to reflect a more realistic
point of view when presenting the real estate performance of the shopping center.
The scheme does not include the service charges.

Adjusted Return Figures for 2009
Real estate return figures
Almada Montijo León Total
Current market value
(Nov. 2009) 333,597,000 154,481,000 77,740,000 565,818,000
Gross income 7.5% 1) 7.7% 1,2) 9.9% 1) 7.9%
Management costs -1.4% 1) -2.0% 1) -2.7% 1) -2.4%
Net income 6.1% 5.7% 7.2% 5.5%
Reappraisals -7.3% 3) -6.4% -18.7% -8.6%
Real estate result -1.2% -0.6% -11.5% -3.1%
Foreign income taxes -0.2% 3,4) -0.2% 3) 0.0% -0.2%
Result before loan expenditures -1.4% -0.8% -11.5% -3.2%
Loan expenditures -3.1% 2) -3.9% 2) -4.2% -3.5%
Result after loan expenditures 5) -4.5% -4.7% -15.7% -6.7%
Equity return figures
Initial equity invested
(Oct. 2007) 172,692,717 71,284,051 45,814,876 290,000,000
Result after loan expenditures 8.6% -10.2% -26.6% -13.1%
Result after loan expenditures
without reappraisals 6) 5.4% 3.6% 5.1% 3.7%
Income return 7) 5.8% 4.2% 6.0% 4.2%
Distributable result 8) 5.5% 3.9% 5.3% 3.8%
Average fixed equity (2009) 139,702,913 56,775,784 25,307,075 232,016,005
Result after loan expenditures -10.7% -12.8% -48.1% -16.4%
Result after loan expenditures
without reappraisals 6.7% 4.6% 9.2% 4.6%
Income return 7.2% 5.3% 10.8% 5.2%
Distributable result 6.7% 5.0% 9.6% 4.8%
1) All objects: not including service and management charges paid by tenants
2) Interest of intra-group loan (EUR 1,728,594.96) enlarges loan expenditures in Almada and reduces it in Montijo as well the
(interest-)income in Montijo
3) Almada: Withholding Tax (EUR 355,935.58 in 2009); Montijo: Withholding Tax (EUR 255,339.48 in 2009)
4) Almada Cda.: Income tax on profit distribution to CGM Lux 3 (EUR 255,709.02 in 2009)
5) Result after loan expenditure is the Fund-GAAP profit/loss for the period
6) Result after loan expenditure without reappraisals is the Fund-GAAP profit/loss for the period without changes in the values
of the properties
7) Income return is the result after loan expenditure without reappraisals and without results form investment phase (accruals
for loans from hausInvest fund, amortisation of key money from hausInvest fund in Portugal and pursuit costs in Spain)
8) Distributable result is the income return without amortisation of finance fees in Spain plus cash-flows of key money but
without accruals for key money
Manager‘s Report on the Fund
25

26
6.2.1 Service and Management Charges
Service and management charges paid by the tenants include revenues on the one hand,
and expsenses on the other hand. In most cases, these charges are posted in the financial
accounts of the property companies. In some cases, the tenants pay these charges
into a separate account of the centre management companies where these charges are
cleared. In these cases, the charges are not covered by the accounting of the property
companies. To ensure the comparability of all assets, charges are not reflected in the
adjusted return figures.
6.2.2 Intra-Group Loan
The loan over EUR 90.7 million that was taken out by Montijo Lda. has in part
(EUR 42.7 million) been passed on to Almada Lda. in the form of a so-called intra-group
loan. The interest expenditures shouldered by Montijo Lda. are offset by the interest income
for the intragroup loan as component of the gross income. On the Almada Lda. side,
the interest payments are posted as loan expenditures under expenses. The Fund’s GAAP
figures have been deconsolidated to exclude the interest income in the case of Montijo
Lda. and to exclude the interest expenses of Almada Lda. To ensure comparability, the
deconsolidated interest expense was posted as interest expense for Almada Lda. again,
while the interest income was posted as “negative” loan expenditure for Montijo Lda.
6.2.3 Withholding Tax on Interets for Shareholder Loan in Portugal
The Portuguese inland revenue service retained 15% – or 5% as at 01 July 2009 – in
withholding tax on the shareholder loan interest that Almada Lda and Montijo Lda pay to
CGM Lux 2 and CGM Lux 3. The payors of the withholding tax are CGM Lux 2 and CGM
Lux 3, respectively. In 2007 and 2008, these payments were posted in the performance
account as tax debt of the fund companies (CGM Lux 2 and CGM Lux 3). In order to trace
the expenditures connected to the ownership of property interests with more precision,
the Fund Management decided to attribute the withholding tax dues to the respective
property interest whose structure or activities incurred them. In 2009, withholding taxes
on shareholder loan interest amounted to EUR 355,935.58 in the case of Almada and to
EUR 255,339.48 in the case of Montijo.
6.2.4 Income Tax on the Income Distribution of Almada Cda.
CGM Lux 3 in Portugal will have to remit 26.5% in income tax on the income distribution
that Almada Cda. pays out to CGM Lux 3 because of the 30% interest held by the
latter. Payor of this income tax is CGM Lux 3. In 2007 and 2008, these payments were
posted in the performance account as tax debt of the CGM Lux 3 fund company. In order
to trace the expenditures connected to the ownership of property interests with more
precision, the Fund Management decided to attribute the income tax dues to the respective
property interest whose structure or activities incurred them. In 2009, an income
tax debt totalling EUR 255,709.02 was due for the distribution of Almada Cda.

6.3 Distribution
According to the above calculations, the earned returns (income returns) for 2009
without the depreciations on the value of the shopping centres would amount to approx.
3.8%. With a view to the ongoing negotiations with several new tenants who have made
their decision to open a new business in the shopping malls dependent on the payment of
a fit-out contribution by the owner, the Fund Management decided to set aside provisions
toward this end, and to reduce the amount distributed to the investors to 3.25% per
share. The distribution equals a 4.06% cash-on-cash return on the average fixed equity
for 2009. The amount distributed will be paid on 19 July 2010.
Total distribution in EUR 9,425,000.00
per share in EUR 3.25
Cash-on-cash return on initial equity invested 3.25%
Cash-on-cash return on average fixed equity 4.06%
6.4 Future Developments
As expected, the financial crisis did escalate into an economic crisis. During the opening
months of 2010, the crisis moreover expanded to impact the weaker Eurozone member
states as well. The national governments of the affected countries intend to address
the crisis with – in some cases – extensive austerity measures.
We assume that these austerity measures will have ramifications for the consumer
behaviour in Portugal and Spain. This will in turn impact sales at our shopping centres.
As a result, it is safe to expect that tenants will approach us with additional requests for
bonifications and discounts. It is equally likely to affect upcoming lease negotiations in
2010. We therefore project a slightly lower rental income compared to the previous year.
That said, we intend to counter this possible trend by stepping up our letting efforts. To
facilitate the lease negotiations with suitable tenants we should cover the fit-out costs for
shops they intend to open. Some of the cash flow not distributed will be earmarked for
this purpose.
Then again, investor interest in Spain appears to revive. Increased investment activities
in these countries would precipitate a decline in yield rates and thereby bolster real
estate values. One of our priorities remains to boost the competitiveness of the shopping
malls. Accordingly, we will undertake various face-lifting measures that will upgrade the
outer appearance of the malls.
Manager‘s Report on the Fund
27

28
Property Report
1. Portfolio Overview
CG malls europe started building up a diversified cross-European portfolio by acquiring three premium dominant regional
shopping centres of premium quality. These malls, two of which are located in Lisbon/Portugal and one of which is
located in León/ Spain, represents the Fund’s so-called seed portfolio.
The following tables provide a brief summary of the seed portfolio’s metrics:
Property information Almada Forum Espacio
as at 31 December 2009 Forum Montijo León Total
Type of asset Shopping Center Shopping Center Shopping Center
Country Portugal Portugal Spain
City / greater area Lisbon Lisbon León
Adress Estrada do Caminho Zona Industrial do Avenida del
Municipal 1011 Pau Queimada País Leonés n° 12
Vale de Mourelos Rua da Azinheira –
Afonseiro
2810-354 Almada 2870-100 Montijo 24010 León
Construction date 2002 2003 2004
Acquistion date 31 Oct. 2007 31 Oct. 2007 31 Oct. 2007
Site area (sqm) 197,888 198,638 29,946 426,472
Total GLA (sqm) 81,400 58,200 36,500 176,100
Thereof hypermarket (sqm) 21,900 17,500 0 39,400
GLA without hypermarket
- Ownership of the fund - (sqm) 59,500 40,700 36,500 136,700
Ownership in % 100% 100% 100%
Parking spaces 5,253 3,900 1,339 10,492
No. of shops 253 163 113 529
Purchase price of the properties
(Oct. 2007 in million EUR) 381.3 171.7 104.0 657.0
Initial market value of the properties
(Oct. 2007 in million EUR) 381.3 171.7 103.8 656.8
Market value of the properties
(June 2009 in million EUR) 344.7 158.0 80.0 582.7
Current market value of the properties
(Nov. 2009 in million EUR) 333.6 154.5 77.7 565.8
Current cap rate
(Nov. 2009 in %) 6.55% 6.65% 7.50%

Funds Total
Initial equity invested
(Oct. 2007 in million EUR) 172.7 71,3 45.8 0.2 290.0
Current equity invested
(Dec. 2009 in million EUR) 127.0 50.7 18.0 11.5 207.2
Property Report
Property information Almada Forum Espacio
1 Jan 2009 – 31 Dec 2009 Forum Montijo León Total
Sales (million EUR) 209.9 116.1 79.5 405.5
Footfall (million) 15.4 8.6 4.7 28.7
Effort index 13% 11% 11% 12%
Espacio León
29

30
Tenancy information Almada Forum Espacio
as at 31 December 2009 Forum Montijo León Total
Base rent (million EUR) 23.0 10.3 7.1 40.4
Turnover rent (million EUR) 0.4 0.5 0.3 1.2
Mall income (million EUR) 0.3 0.3 0.2 0.8
Other rental income (million EUR) 1.2 0.5 0.0 1.7
Gross rental income (million EUR) 24.9 11.6 7.6 44.1
Average lease duration in years 5.3 5.8 7.3 5.8
Lease expiry in the next
2 years in % of total base rent 6.1% 9.2% 15.5% 8.5%
Lease expiry in the next
3 years in % of total base rent 22.7% 11.2% 30.0% 21.0%
Top 10 tenants in income
(million EUR) 4.6 3.0 2.7 7.6
Top 10 tenants
in % base rent 20.0% 29.6% 39.3% 19.0%
Top 10 tenants duration
in years 6.5 7.8 12.3 8.7
Vacancy rate sqm 3.8% 5.6% 5.3% 4.8%
Vacancy rate sqm without
rent guarantee 3.8% 6.3% 7.1% 5.4%
Vacancy rate income 3.4% 4.8% 3.4% 3.8%
Vacancy rate income without
rent guarantee 3.4% 6.5% 10.9% 5.5%
Vacant rental units 9 6 10 25
Vacant rental units without
rent guarantee 9 7 15 31

The vacancy rate is reported in relation to the let floor space (sqm) and to the rental
income (base rent) to be realised. Since Multi Development, the developer and purchaser
of the malls, is paying rent guarantees, additional vacancy rates were posted which
would result from a termination of the rent guarantee. In Montijo, rent guarantee payments
were made for a vacant space and for a let space (to offset the difference between
the contractually agreed rent and the rent actually paid by the tenant) as at 31 December
2009. In Léon, rent guarantee payments were made for five vacant retail units and
for seven let units as at 31 December 2009. Difficult as it was, the year 2009 did see the
successful extension of 17.5% of all portfolio leases (in terms of rental income). Almada
accounted for 7.5%, Montijo for 37.5% and León for 20.3% of these lease renewals.
Regrettably, it proved impossible to re-let all of the floor space. The number of rent
discounts granted to tenants also went up in 2009. Tenants requested rent-free period
less often than they did discounts / bonifications on the existing rent level. In Almada,
we granted rent-free periods to a total of 6 tenants and discounts / bonifications to a total
of 50 tenants in 2009. In Montijo, we granted rent-free periods to 9 tenants and discounts
/ bonifications to 26 tenants in 2009. In León, finally, we granted rent-free periods to 5
tenants and discounts / bonifications to 25 tenants in 2009.
The following chart and table show the portfolio’s lease expiration profile for the future:
Lease Expiration in % of total rental income
Lease Expiration in % of Total Rental Income as at 31 December 2009
40%
35%
30%
25%
20%
32.1%
15%
10%
5%
4.4% 4.1%
12.4%
6.0%
14.1%
1.4%
4.9% 5.8%
3.4%
11.4%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020+
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019+
In the wake of the massive reletting activities in Almada (2008), Montijo (2009) and León
(2009), the lease expiration profile has completely changed. The percentage of expiring
leases in relation to the base rent over the next three years equalled 20.9% by 31
December 2009, and is significant lower compared to the terms of 2008 and 2009. Due
to the customarily six-year lease terms in Portugal and the customary five-year lease
terms in Spain, the next wave of letting activities is to be expected for 2014 (Almada and
León) and 2015 (Montijo). These extensive new lettings are likely to offer opportunities
for reshuffling the existing sector and tenant roster once the economic environment
improves. In addition, it is also a chance to adjust the agreed base rent whenever appropriate
and – in case of the Portuguese properties – to collect extra cash and future income
through key money and renewal fee payments.
Property Report
Year of Expiration in %
2010 4.4%
2011 4.1%
2012 12.4%
2013 6.0%
2014 32.1%
2015 14.1%
2016 1.4%
2017 4.9%
2018 5.8%
2019 3.4%
2020+ 11.4%
100.0%
31

32
The following table shows the top ten portfolio tenants in terms of rental income by
31 December 2009. Several tenants rented units at all three malls, and in these cases the
sum totals are posted:
Name Area Branch End of Term Centre
ZARA 6,833 sqm Fashion 09/2017 Almada Forum
04/2018 Forum Montijo
10/2024 Espacio León
LUSOMUNDO
Home equipment 01/2021 Almada Forum
CINEMA 8,180 sqm Leisure 09/2022 Almada Forum
04/2023 Forum Montijo
C&A 3,861 sqm Fashion 09/2012 Almada Forum
11/2014 Forum Montijo
HENNES &
MAURITZ 3.970 sqm Fashion 09/2021 Almada Forum
04/2018 Forum Montijo
10/2024 Espacio León
CINEBOX 4,000 sqm Leisure 10/2019 Espacio León
FNAC 2,499 sqm Leisure 10/2012 Almada Forum
MEDIAMARKT 3,470 sqm Home equipment 10/2019 Espacio León
BERSHKA 1,679 sqm Fashion 01/2021 Almada Forum
04/2018 Forum Montijo
10/2024 Espacio León
TOYS “R” US 2,138 sqm Leisure 09/2014 Almada Forum
MASSIMO DUTTI 1,559 sqm Fashion 09/2017 Almada Forum
04/2018 Forum Montijo
10/2024 Espacio León

2. Almada Forum
Almada Forum is a prime shopping centre located in the Portuguese city of Almada,
which lies directly south of Lisbon, separated from the Portuguese capital only by the
delta of the river Tagus. Both municipalities are connected through the “25th of April”
Bridge which carries a significant part of the commuter traffic into Lisbon, an estimated
total of nearly one million per day. The centre itself is visible both from the southbound
highway out of Lisbon and from the road connecting Almada with the coastal areas. It
is easy to reach by car via exits from either road. Pragal, near the location of the centre,
has a train station with direct connections to Lisbon. The mall has become the new
centre of Almada. With its scenic setting, Almada Forum offers visitors a magnificent
panoramic view, 1300 metres of track that connects Almada Forum with Parque da Paz,
the main square of Almada, and that is suitable for running and cycling.
The mall is one of the largest in Portugal, offering approximately 81,400 sqm of retail
space on three levels that include a hypermarket, leisure venues, a restaurant and food
court. While giving Almada a new urban centre, the mall complements the town’s identity,
as a touch of “local colour” emanates from a variety of themes used in the design of
the three squares of the mall, the use of local materials and the decoration of the centre
with works by regional artists. The success of this concept was confirmed by a number of
prestigious awards the mall has won since it opened – one of those being the Full Design
and Development Award in 2004. It is the world’s most coveted award for shopping centre
design, and Almada Forum won against entries from USA, Japan, Korea, Spain and
Ecuador. Almada Forum also obtained the Management Environmental Certification (NP
EN ISO 14.001) in 2004.
Almada Forum opened in 2002, and has offered an attractive branch and tenant mix on
55,500 sqm of retail space ever since. In December 2005, a stand-alone annex for another
three shops and a total area of 4000 sqm opened for business. The location has also
gained in attraction for other investors, such as Leroy Merlin and Decathlon.
Property Report
Almada Forum
33

34
Almada Forum
As at 31 December 2009, the top 10 tenants in terms of annual rental income were (sorted
by floor space):
Name
LUSOMUNDO
Floor space Branch End of Term
CINEMA 5,610 sqm Leisure 09/2022
FNAC 2,499 sqm Leisure 10/2012
ZARA 2,220 sqm Fashion 09/2017
C&A 2,204 sqm Fashion 09/2012
JUMBO NATUREZA 2,174 sqm Services 08/2017
TOYS R US 2,138 sqm Leisure 09/2014
SPORTZONE 1,163 sqm Leisure 09/2014
CORTEFIEL 1,013 sqm Fashion 09/2017
ZIPPY 723 sqm Fashion 09/2012
A LOJA DO GATO
PRETO 445 sqm Home Equipment 09/2014
The shopping centre is home to a total of over 250 shops, including a jumbo hypermarket
of 21,900 sqm owned by CPH (Auchan Group). The hypermarket is located on the ground
floor, together with shops for children’s fashion, sporting goods, electronics, home
decoration and furnishings, as well as book stores, record stores, toy stores, any many
more. The anchor tenants in the fashion and accessories segment are located on the first
floor. A cinema of 14 screens – the most successful multiplex venue nationwide – and the
mall’s food court with 35 restaurants is located on the second floor. The average remaining
lease term at the mall was 5.3 years by 31 December 2009 (on the basis of remaining
lease term per unit, weighted by rental income per unit).

The following table and chart show the lease expiration profile for the Almada Forum:
Almada Lease Expiration in % of total rental income
Almada Lease Expiration in % of Total Rental Income as at 31 December 2009
45%
40%
35%
30%
25%
44.4%
20%
16.6%
15%
10%
5%
0%
4.0%
2010
2.1%
2011 2012
4.7%
2013 2014
6.6%
2015
1.3%
2016
8.1%
2017
1.1%
2018
0.5%
2019
10.6%
2020+
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019+
By 31 December 2009, the mall’s vacancy rate equalled 3.8 %; with nine shops being
vacant. The biggest unit on the mall’s second floor, totalling 1,973 sqm (3.3 % of the
rental area) has been successfully relet to Specialized since 01 Augsut 2009. It is Specialized
biggest shop in Europe. Nespresso opened its branch in Summer 2009. As most
shoppers travel to Almada Forum by car the center offer more than 5,000 free parking
spaces on two levels to accommodate motorists even at peak times. The following charts
show the floor plans of the mall:
Almada floor plans
Shops by group of activity - level 0
Fashion Hypermarket Restaurant
Home equipment Personal Accessoires Services
Leisure Others
Property Report
Year of Expiration in %
2010 4.0%
2011 2.1%
2012 16.6%
2013 4.7%
2014 44.4%
2015 6.6%
2016 1.3%
2017 8.1%
2018 1.1%
2019 0.5%
2020+ 10.6%
100.0%
35

36
Shops by group of activity - level 1
Fashion Restaurant Home equipment
Personal Accessoires Services Leisure
Shops by group of activity - level 2
Restaurant Leisure
Shops by group of activity - Stand Alone
Home equipment Services

The location and accessibility of the mall ensure a constant footfall. The mall is open
seven days a week, year round. According to the official Portuguese census figures from
2001, approx. 440,000 people live within a catchment area of a 15-minute commute, with
another 1,600,000 residents living within a catchment area of a 15- to 30-minute commute.
Overall, more than 2 million potential consumers are able to get to the centre within
30 minutes. This is reflected in the 15.4 million customers who visited Almada Forum in
2009. Forecasts have predicted positive demographic growth for the area.
Almada Forum Catchment Area
Primary catchment
Secondary catchment
Source: www.viamichelin.de
LISBOA
Almada
Almada Forum
Seixal
Rio Tejo
Sesimbra
Montijo
Rio Tejo
Barreiro
Alcochete
Pinhal Novo
Palmela
According to the figures for 2006 published by INE (EPCC 2005 Estudo do Poder de
Compra Concelhio), the purchasing power index for Almada, where the mall is located,
equals 128, the reference index value being the Portuguese national average (100). In
general, the purchasing power of the entire Lisbon area lies far above the average. In
2009, sales at the Almada Forum amounted to EUR 210 million, which translates into to
a turnover per sqm of approximately EUR 4,000 annually. The centre generated a rental
income of approximately EUR 23.7 million in 2009, including base rent, turnover rent
and revenues from temporary lettings (mall income). Simultaneously, the 2009 effort
index (rent/sales ratio) for the tenants had a level of 13% on average.
Competition amongst shopping centres in Portugal, especially in Lisbon, is fierce. The
major competitors of Almada Forum are the “Centro Colombo” with a gross lettable area
(GLA) of around 120,000 sqm, and “Centro Vasco da Gama” with a GLA of approximately
48,000 sqm. With the new centre “Dolce Vita Tejo” (opened in May 2009) and its GLA of
more than 120,000 sqm, another potent competitor has entered the market. All three of
Moita
Quinta do Conde
Lisboa
Setúbal
Property Report
37

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Almada Forum
these malls are located within the Lisbon city limits, north of the river Tagus. Almada
Forum has developed over time into a well-known shopping destination of supra-regional
importance and offers a very high standard to the public. The branch and tenant mix is
continuously adapted to the changing retail landscape. In addition, its catchment area
is located south of the Tagus delta. The secondary catchment areas of Almada Forum
and Forum Montijo overlap slightly. However, the competition between the two centres
remains low. The Almada Forum has the sustainable capacity to compete with the large
volume of retail schemes in the Lisbon area.
Almada Forum has already attained a high market penetration. The scheme is a stabilized
asset, generating stable and moderately increasing rental income at a high productivity
level (turnover/sqm sales area). The ongoing improvement of the mall’s surroundings
(e.g. complementary retail park, Decathlon flagship store, Leroy Merlin) supports
the establishment of the site as a prime location for shopping. Future potential for rental
growth can be derived from increased consumer spending as the catchment area is penetrated
more deeply over time by centre management’s marketing activities.

3. Forum Montijo
Forum Montijo is located on the Portuguese Setubal Peninsula – representing the south
bank of the river Tagus southeast of Lisbon – at one of the access roads to the town of
Montijo. Since the construction of the Vasco da Gama Bridge, Lisbon’s second bridge
over the river Tagus and with a total length of 17.2 km the longest bridge in Europe, the
greater Lisbon south bank has seen an enormous population growth. The proximity to
the new bridge, which was built for the world fair Expo 98 together with an excellent
new road infrastructure, has made the city of Montijo and its surroundings a compulsory
throughway of both regional and national importance. Due to the new bridge, the
economic base of this area has changed and is expected to improve further, providing
the opportunity to expand the catchment area of the shopping centre. The demographic
structure of the region has also significantly changed. New target groups with higher
disposable income can now be addressed, as more people working in Lisbon and belonging
to higher income brackets have recently moved to the aforementioned region, thereby
increasing the economic as well as the purchasing power. Once a rural backwater, the
area’s new accessibility has given Montijo the potential to become Lisbon’s most densely
populated southern suburb after Almada.
Forum Montijo opened for the public in 2003. Inspired by the region’s rural past, the
architecture of the shopping centre is based on the impressive farmstead characteristics
of the area. The idea was to build an out-of-town regional shopping centre with three
specific retail elements: a 30,700 sqm two-level shopping centre connected to a Continente
hypermarket of additional 17,500 sqm which is owned by the chain itself, together
with a 10,000 sqm stand-alone retail park. The whole area is served by 3,900 landscaped
surface-level parking spaces. The centre is very close to the main roads leading south
(Setubal) and southwest (Coina) plus highway A12, linking the northern and southern
motorways via Vasco da Gama Bridge. Therefore, Forum Montijo is easily accessed from
any direction of the catchment area. The mall houses 158 shops/rental units, including
six anchor stores, a food court comprising 24 restaurants, a state-of-the-art cinema with
six screens and a Continente hypermarket.
Property Report
Forum Monijo
39

40
Located next to the main entrance of the mall is a stand-alone retail park that includes
five large shop units. The top 10 tenants in terms of annual rental income as at 31 December
2009 are (sorted by floor space):
Name Area Sector End of term
IZI
LUSOMUNDO
3,000 sqm Home equipment 04/2018
CINEMA 2,570 sqm Leisure 04/2023
BABOU 2,326 sqm Home equipment 04/2013
ZARA 2,261 sqm Fashion 04/2018
DECATHLON 1,911 sqm Leisure 04/2023
C&A 1,657 sqm Fashion 11/2014
RADIO POPULAR 1,620 sqm Leisure 04/2013
HENNES &
MAURITZ 1,396 sqm Fashion 04/2018
NORAUTO 1,171 sqm Services 04/2018
SPORTZONE 872 sqm Leisure 04/2015
Source: Commerz Real Group
On the ground floor near the dome-shaped main entrance there are mainly book stores
and other media and furniture stores. The mall on the ground floor hosts primarily fashion
and accessories stores, as does the opposite, rectangular end of the centre. Parallel
to the mall midway is another, smaller mall with the entrance to the hypermarket at one
side and smaller shops, offering miscellaneous goods and services, on the other side.
The shopping centre’s food court is located on the first floor above the main entrance.
The rest of the first floor is almost exclusively arranged for fashion stores, with the entrance
to the cinema located in the heart of the mall. The shops located in the retail park
offer building material, furniture and decoration, automotive services, electronic goods
and sporting goods.
By the end of December 2009, the shopping centre reported six vacant units, resulting in
a vacancy rate of 5.6%. The average remaining lease term was 5.8 years as at 31 December
2009 (on the basis of remaining lease term per unit, weighted by rental income per
unit). The following table and chart show the mall’s lease expiration profile:

Montijo Lease Expiration in % of total rental income
Montijo Lease Expiration in % of Total Rental Income as at 31 December 2009
45%
40%
35%
30%
39.5%
25%
20%
20.1%
15%
12.3%
10%
5%
0%
4.5%
2010
4.8%
2011
2.0%
2012 2013
7.7%
2014 2015
0.5%
2016
0.8%
2017 2018
0.6%
2019
7.3%
2020+
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019+
Forum Montijo floor plans
Tiosi
Shops by group of activity - first floor
Fashion Restaurant
Personal Accessoires Leisure
Property Report
Year of Expiration in %
2010 4.5%
2011 4.8%
2012 2.0%
2013 12.3%
2014 7.7%
2015 39.5%
2016 0.5%
2017 0.8%
2018 20.1%
2019 0.6%
2020+ 7.3%
100.0%
41

42
Shops by group of activity - Ground Floor
Fashion Restaurant Home equipment
Personal Accessoires
Hypermarket
Services Leisure
Shops by group of activity - Retail Park
Home equipment Services Leisure
Forum Montijo has an attractive, fast-growing catchment area that is home to about
130,000 people within a 10-minute commute. The secondary catchment area inside a driving
time of 30 minutes includes another 655,000 residents, adding up to a total of about
785,000 people. In 2009, more than 8.6 million customers visited the mall, which reflects

an increase of three percent to 2008. Polls show that 59% of the customers of Forum
Montijo are young (under 34 years), and that many of these are families. Taking this into
account, the centre management has provided several free services such as an indoor
and an outdoor playground and a place where children can play with piles of Lego. The
food court makes microwaves available to families as well as feeding bottle heaters
and highchairs. In addition, the centre management set up the so-called Friendship
Recycling Centre, where visitors may donate clothes, shoes, toys, and other items to be
passed on to charity groups for children. This project won in 2008 an ICSC (International
Council of Shopping Centers) Silver Solal Award in the “Community Relations” category.
All of these measures are designed to enhance the popularity of Forum Montijo and its
acceptance throughout the catchment area. The fact that 40% of the visitors come to the
centre every weekend demonstrates the success of the overall concept.
The purchasing power of the population inside the catchment area (Setubal Peninsula)
is 115.67, the reference index being a Portuguese national average of 100. Sales in 2009
amounted to EUR 116 million, which translates into a turnover per sqm of approximately
EUR 3,300 and sales per customer of more than EUR 13.44. The total rental income
(including base rent, turnover rent, and income from temporary lettings) in 2009 was approximately
EUR 11.1 million. The effort index (rent/sales ratio) for the tenants equalled
just 11% on average.
In general, Forum Montijo has the same competitors as Almada Forum, all of which are
located on the north bank of the river in Lisbon. The catchment area of Forum Montijo
overlaps almost nowhere with those of the other major players in the region. Customers
of Forum Montijo named the Freeport Designer Outlet in polls when asked about other
shopping centres they visit. As Freeport, located northeast of Forum Montijo, has a
totally different concept, being an outlet centre, there is no direct competition between
the two schemes. In fact, there is an overlap in the secondary catchment areas of Almada
Forum and Forum Montijo. The competition between the two centres is therefore inherent
but negligible.
Forum Montijo was the first shopping centre in Europe to obtain an environmental
certificate – ISO 14001. The International Standards Award 14001 requires strict compliance
with environmental recommendations. The standards and procedures include
safe disposal of all waste products at the mall, monitoring and control of noise levels,
and protection of air quality. In addition, energy saving measures are also taken into
account. In 2008, Forum Montijo also won an ICSC Silver Solal Marketing Award with it’s
Magic Lamp Project. The campaign was focused around the Christmas skating rink and
showcased the strong ties to the community. The „Magic Lamp“ Project was based on
the three mainstays of sustainable development: the environmental, the economic, and
the social aspect.
In 2009, Forum Montijo won again a ICSC Silver Solal Marketing Award with Friendship
Recycling Centre. This pedagogic project aimed to raise children´s and parent´s social
awareness. These Silver Awards mean a lot for Forum Montijo, considering that the whole
of Europe is represented at the Awards and that they confer international recognition
of the best work in the field and of the most effective campaigns.
Property Report
43

44
Forum Montijo
Forum Montijo Catchment Area
Lisboa
Almada
Source: www.viamichelin.de
LISBOA
Rio Tejo
Alcochete
Forum Montijo
Seixal
Barreiro
Quinta do Conde
Moita
Montijo
Pinhal Novo
Palmela
Setúbal
Primary catchment
Secondary catchment
Ever since it opened, Forum Sesimbra Montijo has steadily widened its catchment area and increased
its market share. Annexed to the mall is a complementary retail park, which will enhance
the whole retail agglomeration as the region’s leading shopping and recreational
destination. In its leadership role, the scheme is likely to benefit disproportionately from
the forecast demographic growth in the eastern half of Setubal Peninsula. A constant
adjustment of the retail mix by sector and tenant by the centre management ensures that
customers‘ needs are always met.

Forum Montijo

46
4. Espacio León
The city of León is the capital of León province in the autonomous community of Castile and
León in northwest Spain. Home to more than a quarter (135,000) of the province’s total population
(nearly 500,000), the city is the largest municipality in the province. The shopping
centre Espacio León is situated on the northern fringe of the city of León, on the left bank
of the River Bernesga, an area undergoing major urban development. The scheme is only a
five- to eight- minute drive from downtown, and is easy to reach by car and public transport.
Espacio León is the first shopping centre in the León region. The architectural concept of
the centre was inspired by modern Spanish design. Using the same material for parts of
the building’s facade as went into the construction of the Guggenheim Museum in Bilbao,
the mall attained architectural fame, and has become a major attraction in the region.
The shopping areas are spread over three floors and are fully roofed to make sure shoppers
find an agreeable environment even in inclement weather, which is hardly uncommon
in this area. Shielded from the natural elements, the mall features a sculptural theme
and includes boulevards, public spaces and landscaped areas. The innovative and exclusive
approach of the visual and functional concept made Espacio León a finalist in the 2006
ICSC European Shopping Centre Awards among three other malls in its category.
Espacio León, which opened in October 2004, comprises 113 shops/retail units on more
than 36,000 sqm. The merchandise breaks down into a wide range of consumer goods.
The basement has direct access to the multi-storey car park, which provides a major
share of the mall’s 1,300 free parking spaces. The basement includes a supermarket
of 3,000 sqm, as well as the main stores for sporting goods, toys, and electronics. The
ground floor features mainly fashion and accessories stores, as does the main lobby area
and the mall area on the first floor up. Located at the other end of the building is a food
court, comprising local restaurants as well as renowned international chains. At one side
of the food court square is the entrance to a 9-screen cinema. The table below shows the
top 10 tenants in terms of annual rental income (sorted by floor space):
Name Area Sector End of Term
CINEBOX 4,000 sqm Leisure 10/2019
MEDIAMARKT 3,469 sqm Home equipment 10/2019
SUPERCOR 3,014 sqm Services 10/2029
FORUM SPORT 2,100 sqm Fashion 10/2014
ZARA 1,972 sqm Fashion 10/2024
HENNES & MAURITZ 1,741 sqm Fashion 10/2024
MIRÓ 771 sqm Home equipment 11/2016
MASSIMO DUTTI 614 sqm Fashion 10/2024
BERSHKA 568 sqm Fashion 10/2024
GASOLINERA 150 sqm Others 02/2039
Source: Commerz Real Group

In the difficult year 2009, we successfully renewed the leases of 48 tenants in Leon, and
signed to 2 substitutions, which accounts for 91% of the total renewal options, for 49%
of the total rent, and for 43% of the GLA. Due to the economic situation, the level of discounts
and rentfree period increased, but must be seen in context with the overall aim to
maintain the tenant mix and to stabilize the rental value. In León, discounts were granted
to 22 tenants and rent free period to 4 tenants. In Leon there were 16 new contracts.
The average remaining lease term was 7.3 years as of 31 December 2009 (on the basis of
remaining lease term per unit, weighted by rental income per unit). By the end of December
2009, the mall reported 10 vacant units (15 without rent guarantees), which translates
into a vacancy rate in sqm of 5.3% (7.1% without rent guarantee). Generally, the
Espacio León is very attractive for its customers because of the high number of renowned
international retailers besides the anchor tenants, including The Phone House, Bershka,
Bull & Bear, Springfield, Bata, and Poly.
León Lease Expiration in % of total rental income
The following table and chart show the mall’s lease expiration profile:
León Lease Expiration in % of Total Rental Income as at 31 December 2009
30%
27.3%
25%
20%
15%
10%
5%
0%
5.6%
2010
9.9%
2011
14.5%
2012
1.2%
2013 2014
1.1%
2015 2016 2017 2018 2019 2020+
3.0% 0.5% 0.0%
16.7%
20.2%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019+
With its existing vacancy rate the centre offers the potential to be optimised; this is a
major task to be completed in the near future.
Property Report
Year of Expiration in %
2010 5.6%
2011 9.9%
2012 14.5%
2013 1.2%
2014 27.3%
2015 1.1%
2016 3.0%
2017 0.5%
2018 0.0%
2019 16.7%
2020+ 20.2%
100.0%
47

48
Parking
Parking
Espacio León floor plans
Shops by group of activity - level 1
Source: Commerz Real Group
Fashion Supermarket Restaurant
Home equipment Personal Accessoires Services
Leisure
Shops by group of activity - level 2
Fashion Home equipment Personal Accessoires
Services
Shops by group of activity - level 3
Fashion Restaurant
Leisure
Source: Commerz Real Group
Source: Commerz Real Group

According to the GfK (November 2007), almost 280,000 people live in the catchment
area of Espacio León, while more than 100,000 live in its direct vicinity. The mall offers
an attractive and complete mix of store types, restaurants and bars, recreational facilities
and a multiplex cinema. Due to the rural environment and the lack of attractive
shopping alternatives, the Espacio León has a major potential for drawing most of the
purchasing power in the catchment area. Thus, the success of Espacio León is unlikely to
be qualified by the fact that the purchasing power index for the catchment area exceeds
the national average only slightly at 100.2, especially as the index for customers in direct
vicinity of the mall is 106.6. Furthermore, it is to be expected that the population in the
direct vicinity of the mall could grow in the coming years because further new residential
developments in the surrounding district are planned. In 2009, the fifth year of
operation, the mall registered a footfall of 4.7 million.
Espacio Leôn Catchment Area
León
Source: www.viamichelin.de
Astorga
La Bañeza
Espacio León
León
La Robla
Villamañán
Villarente
Primary catchment
Secondary catchment
Cisterna
Almanza
In 2009, sales amounted to EUR 79.5 million, which translates into a turnover of
EUR 2,600 per sqm. Espacio León generated a rental income of EUR 7.6 million in 2009
(including base rent, turnover rent and temporary letting income). The rental income
includes a rental guarantee for vacant areas by the developer that will extend through
2012. The effort index (rent / sales ratio) of 11% was very attractive for the tenants in
2009.
Apart from several hypermarkets and the smaller León Plaza (18,500 sqm) that is positioned
closer to the city of León, Espacio León remains unrivalled in the region to date.
The closest shopping centres with a similar offering and size are located in Ponferrada,
approx. 100 km away from León, in Oviedo more than 130 km away, and in Lugo more
than 220 km away. So the centre must position itself vis-à-vis traditional shopping
Property Report
49

50
Espacio León
streets in the inner city that are characterised by a less attractive brand and tenant mix.
The unique position of the centre will most likely benefit from overly restrictive planning
policy by the government in regard to regional shopping centres. This means that Espacio
León will remain sheltered from intensive competition by other large retail agglomerations
in the near future.
The mall has the potential too become the primary shopping centre destination of the city
of León and the entire region. Espacio León is still in the early market penetration phase
and needs to be managed actively. Commerz Real Group is actively collaborating with the
local centre management to implement its dual optimisation approach: active centre marketing
and proactive letting activities combine with an ongoing review of the brand and
tenant mix to secure the appreciation of the property over time. Pinpoint marketing campaigns
will strengthen the position and acceptance of the scheme in the catchment area.

52
Financial Report
1. Adjustments between Trading NAV and pure IFRS
In order to properly reflect the Fund’s open-ended character, several adjustments to a
pure IFRS accounting approach have been made.
For the official NAV as at 31 December 2009, there are basically three adjustments to
report: the capitalisation and subsequent amortisation of the acquisition costs associated
with the purchase of Espacio Leôn, the capitalisation and amortisation of key monies in
Portugal and the elimination of the deferred taxes imputed for the positive revaluation
of the two existing loans of Almada Cda. and Brafero S.A. Future adjustments might be
made subject to the decision by the Management Company which is subject to an UAC
approval.
The Fund spent a total amount of EUR 1,603,224.71 toward the acquisition of Espacio
León. The amount was fully capitalized by the acquisition date (31 October 2007), and
will be amortized over a period of four years or 48 months. This implies a 26 months
amortisation period by 31 December, 2009, amounting to EUR 868,413.53.
The table below shows the calculation details:
Depreciation of acquisition costs
Stamp duty 1,560,000.00
Fees 43,225.00
Total capitalised costs 1,603,225.00
Depreciation Nov 2007 - Dec 2009 -868,413.53
Capitalised costs as at 31 December 2009 734,811.47
In conjunction with the acquisition of the companies in October 2007, the share price
for the companies was adjusted to reflect certain items (deferred key money in Portugal,
among others).
The so-called key money is paid by a tenant at the moment he enters into a lease agreement
at any of the centres or renews his leasing agreement. The amount is paid – according
to the lease – in order to compensate the owner for any investment undertaken in
that business (to cover the launching campaign, the opening ceremony, the media coverage,
and the business scheme itself). According to the Portuguese GAAP, the respective
payment must be deferred in the balance sheet of the recipient for the duration of the
lease term. However, as it is not refundable in case the tenant terminates the lease prior
to the expiration date, and therefore the deferred income positions in the balance sheet
lack a genuine liability character. From an economical point of view, the amount belongs
to the party who owns the property at the moment of payment. To reflect this properly,
CG malls europe compensated the seller for this deferred income position by discounting

the future net tax income to the closing date. The amounts that were actually paid as
compensation for the company’s equity in 2007 equalled EUR 1,858,855.52 for Almada
Lda. and EUR 658,649.67 for Montijo Lda. It was intended to activate these payments in
the balance sheets of the acquiring companies as goodwill and amortize this position
during the term of the underlying deferred income positions. The Fund’s auditor decided
that such approach is not feasible, i.e. that these payments fail to qualify as goodwill
pursuant to IFRS requirements. Accordingly, the sum total of EUR 2,517,505.19 had to be
written off in 2007.
We believe that this treatment of the paid compensation fails to reflect the Fund’s
fairvalue trading NAV, and that it may cause a dissimilar treatment of investors because
future investors will pay too little for purchased shares. Therefore, we suggested to our
investors to adjust the trading NAV of the Fund in the PPM by the amortized value of the
compensation paid for the deferred key money. Once investors accepted the proposal to
adjust the PPM by end of March 2008, the written off amount of 2007 was activated on a
reduced level (EUR 2,279,515.51 by the end of 2008) and included in all NAV calculations
since 2008.
Amortisation of key monies
Capitalised key monies Almada 1,858,855.52
Capitalised key monies Montijo 658,649.67
Total key monies 2,517,505.19
Amortisation Nov 2007 - Dec 2009 -441,376.20
Key monies as at 31 December 2009 2,076,128.99
With the revaluation of the two existing loans that were purchased in context with acquiring
Almada Cda. and Brafero S.A., the two companies made an unrealised capital gain.
According to IFRS, the companies had to account for a respective deferred tax position
because – theoretically speaking – this gain was realised and is therefore subject to Portuguese
CIT tax rate of 26.5% in case the loans would be sold to a third party. Since these
loans are not supposed to be sold, these positions are not to be taken into account for
calculating the trading NAV. The deferred tax liabilities will be written-off in the future
in accordance with the write-up of the loans up to their respective redemption amount.
The following table shows the calculation of the deferred tax liabilities as at 31 December
2009.
Financial Report
Company DTL due to Valuation End Days Total write-off DTL end
loan valuation date of period amount 2007-2009 of period
Almada Cda. 426,724.73 31/10/2007 31/12/2009 793 317,441.57 109,283.16
Brafero S.A. 260,042.91 31/10/2007 31/12/2009 793 193,992.50 66,050.41
Total 686,767.64 511,434.07 175,333.57
53

54
The adjustments between IFRS NAV and Trading NAV (Fund GAAP) add up to a total
positive adjustment of EUR 2,986,274.04.
2009 2008
Pure IFRS NAV 204,200,157.83 252,753,043.28
Non- IFRS capitalised expenses 1,603,225.00 1,603,225.00
Amortization of Non-IFRS capitalised expenses - 868,413.53 - 467,561.75
Capitalization of key monies 2,517,505.19 2,517,505.19
Amortization of capitalised Key-moneys - 441,376.20 - 237,989.68
Elimination of Deferred Tax Liability Portugal 175,333.58 677,364.15
Trading NAV 207,186,431.87 256,845,586.19
2. Financing Strategy
The overall financing has been structured in such a way as to maximize the return on
equity for the investors of CG malls europe. To achieve this, a mix of internal and external
financing facilities is in place. While external financing is only found on the level of
the property holding companies and – in Portugal – the operating companies, the internal
loans are used throughout the structure to fund the various entities.
Property Currency Redemption Draw-down Maturity
amount date
Almada Forum EUR 35,800,000.00 31.10.2007 24.10.2017
Almada Forum EUR 90,175,323.50 27.06.2001 31.12.2012
Almada Forum EUR 45,000,000,00 24.10.2007 18.10.2017
Forum Montijo EUR 90,670,000.00 31.10.2007 24.10.2017
Forum Montijo EUR 55,000,000.00 29.09.2003 29.09.2010
Espacio León EUR 61,980,000.00 31.10.2007 04.09.2017
Total: 378,625,323.50

2.1 Internal Loan Portfolio
The table below lists all internal loans, including lender, borrower, and loan total as
at 31 December 2009. In April 2010, the shareholder loan from CGM LUX 3 to León
PropCo was converted into a profit participation loan (PPL) and was increased by EUR
4,000,000.00 to EUR 38,361,156.86.
Internal financing agreements
Lender/ Borrower/ Amount
Type of financing shareholder recipient
PPL CG malls europe CGM LUX 1 289,833,402.06
PPL CGM LUX 1 CGM LUX 2 97,862,982.65
PPL CGM LUX 1 CGM LUX 3 191,950,419.40
Shareholder Loan CGM LUX 2 Almada Lda. 96,844,069.52
Shareholder Loan CGM LUX 3 Montijo Lda. 69,473,566.83
Intra-group Loan Montijo Lda. Almada Lda. 42,663,800.00
Shareholder Loan CGM LUX 3 León PropCo 34,361,156.86
2.2 External Loan Portfolio
The loan balance by the key date totalled EUR 378,625,323.50. All external loan facilities
are directly or indirectly used for real estate financing purposes. The benefit of partial
outside financing is the tax optimisation through deductibility of the interest rates abroad.
Loans are principally taken out in the local currency of the property to be financed.
Accordingly, we took 100% of the loans out in EUR.
End of fixed Fixed / Interest Lender Borrower
interest period floating in %
24.10.2017 fixed 5.078 Eurohypo Portugal Almada Lda.
30.09.2010 fixed 4.410 Eurohypo Portugal Almada Cda.
18.10.2017 fixed 5.079 Eurohypo Portugal Almada Cda.
24.10.2017 fixed 5.078 Eurohypo Portugal Montijo Lda.
29.09.2010 fixed 4.760 Eurohypo Portugal Brafero S.A.
04.09.2017 fixed 5.071 Eurohypo Spain León PropCo
Financial Report
55

56
The table below shows the entire debt loan portfolio of CG malls europe by countries.
Loan Volume by Countries, as at 31 December 2008
Spain 16.4 %
Portugal 83.6 %
The loans are totally secured by real estate mortgages. In order to take long-term advantage
of the tax optimization as well as of the leverage effect throughout the entire
lifetime of the loan, outside financing is almost exclusively structured for repayment at
final maturity.
Structure of the loan interest fixings in % in %
Less than 1 year 38.34%
1-2 years 0.00%
2-5 years 0.00%
5-10 years 61.66%
more than 10 years 0.00%
Weighted average cost of debt 4.87%
The target gearing of the Fund is 60% in relation to the market values of the properties
within a fiscal year. The depreciations of the properties in 2009 have lowered the
appraised market value so far that it has driven up the gearing ratio to currently 66.9%.
As a recovery of the real estate values is not to be expected before the end of the year,
we assume that CG malls europe will have to report a passive breach of the loan-to-value
principles of the PPM for 2009. The management board discussed the ramifications of
the margin violation in its meetings of 17 February 2009 and 08 September 2009, and is
seeking a medium-term reduction of the gearing ratio.
Gearing in %
Total market value investment properties 565,818,000.00
Total long-term debt (redemption values) 378,625,323.50
Gearing in % 66.9%

With the purchase of Almada Cda. and Brafero S.A., two existing loans were bought,
amounting to EUR 90,175,323.50 in Almada Cda. and EUR 55,000,000.00 in Brafero S.A.
The comparison of the fixed interest rates and current market conditions as of 31 October
2007 revealed that the fixed conditions would be much more attractive. The seller of
the companies received compensation. The amounts, calculated for the remaining fixedinterest
period of the respective loans, were EUR 1,610,282.00 for the loan in Almada
Cda. and EUR 981,294.00 for the loan in Brafero S.A. Accordingly, the respective loans
have been revalued in the balance sheets of the companies, resulting in a decrease in
the loan value in the balance sheet and an increase in the companies’ equity. Over the
remaining fixed-interest period, the loan amounts will be written-up to the redemption
amounts against the respective equity position. From 2007 to 2009, the loan in Almada
Cda. was written-up with an amount of EUR 1,197,893.00 and the loan in Brafero S.A.
with an amount of EUR 732,046.00. This brings the total value, including León, up to
EUR 377,251,934.50 as at 31 December 2009.
Fair value of loans as at 31 December 2009
Financial Report
Company Loan amount Fair value as Total write-up Total write-up Loan amount as
at purchase amount amount 2007 - 2009 at 31.12.2009
Almada Cda. 90,175,323.50 88,565,041.50 1,610,282.00 1,197,893.00 89,762,934.50
Brafero S.A. 55,000,000.00 54,018,706.00 981,294.00 732,046.00 54,750,752.00
León PropCo 61,980,000.00 60,974,831.00 1,005,169.00 293,417.00 61,268,248.00
other loans 171,470,000.00 171,470,000.00 0.00 0.00 171,470,000.00
Total 378,625,323.50 375,028,578.50 3,596,745.00 2,222,952.00 377,251,934.50
57

58
Valuers Statement
CG Real Estate Luxembourg S.à.r.l.
25 rue Edward Steichen
L-2540 Luxembourg
July 08, 2009
Valuers Statement - Re-Valuation of the retail properties of the
CG Real Estate Master FCP-SIF CG malls europe as at June
2009
To whom it may concern,
Cushman & Wakefield LLP
Westhafenplatz 6
60327 Frankfurt am Main
Tel +49 69 50 60 73 0
Fax +49 69 50 60 73 400
www.cushmanwakefield.de
E-Mail: info.de@eur.cushwake.com
In accordance with your written instruction dated May 22, 2009 we have prepared a revaluation
of the three retail properties of the CG Real Estate Master FCP-SIF CG malls
europe fund which we initially valued in October 2007 and last re-valued in December
2008.
We performed the current valuation on the basis of the information provided to us
electronically on May 14, 2009. The current market environment was also taken into
consideration. We are now pleased to provide you with our results based on a DCF model.
Our input assumptions as well as changes concerning the property and/or market
environment since our previous valuation will be detailed in the individual summary
valuation reports.
Having given the matter careful consideration we are of the opinion that the Market Value
of the subject properties as at June 01, 2009 was in the order of:
Property City Country Market Value
Forum Almada Almada Portugal 344.748.000
Forum Montijo Montijo Portugal 157.977.000
Espacio Leon León Spain 79.950.000
Total 582.675.000
Yours sincerely,
CUSHMAN & WAKEFIELD LLP
Martin Belik MRICS i.A. Tony Loughran MRICS i.A. Eric Van Leuven FRICS
Head of VAS, Germany Head of VAS, Spain Managing Partner, Portugal
Cushman & Wakefield LLP Frankfurt Branch ist eine Niederlassung der Cushman & Wakefield LLP mit Sitz in London, die beim
Companies House in Großbritannien unter OC 328588 als Partnerschaftsgesellschaft englischen Rechts ohne persönliche Haftung
der Partner ("LLP") registriert ist. Eine Liste der Partner kann eingesehen werden am obigen Sitz der Niederlassung.
Umsatzsteuer-Identifikationsnummer: DE 213 062 633
Bankverbindung: Barclays Bank Plc Konto-Nr.: 07 365 440 01 BLZ 503 104 00 IBAN DE14 5031 0400 0736 5440 01

CG Real Estate Luxembourg S.à.r.l.
25 rue Edward Steichen
L-2540 Luxembourg
November 17, 2009
Valuers Statement - Re-Valuation of the retail properties of the
CG Real Estate Master FCP-SIF CG malls europe as at
November 2009
To whom it may concern,
Cushman & Wakefield LLP
Westhafenplatz 6
60327 Frankfurt am Main
Tel +49 69 50 60 73 0
Fax +49 69 50 60 73 400
www.cushmanwakefield.de
E-Mail: info.de@eur.cushwake.com
In accordance with your written instruction dated October 13, 2009 we have prepared a revaluation
of the three retail properties of the CG Real Estate Master FCP-SIF CG malls
europe fund which we initially valued in October 2007 and last re-valued in June 2009.
We performed the current valuation on the basis of the information provided to us
electronically on October 16, 2009. The current market environment was also taken into
consideration. We are now pleased to provide you with our results based on a DCF model.
Our input assumptions as well as changes concerning the property and/or market
environment since our previous valuation will be detailed in the individual summary
valuation reports.
Having given the matter careful consideration we are of the opinion that the Market Value
of the subject properties as at November 17, 2009 was in the order of:
Property City Country Market Value
Forum Almada Almada Portugal 333.597.000
Forum Montijo Montijo Portugal 154.481.000
Espacio Leon León Spain 77.740.000
Total 565.818.000
Yours sincerely,
CUSHMAN & WAKEFIELD LLP
Martin Belik MRICS i.A. Tony Loughran MRICS i.A. Eric Van Leuven FRICS
Head of VAS, Germany Head of VAS, Spain Managing Partner, Portugal
Cushman & Wakefield LLP Frankfurt Branch ist eine Niederlassung der Cushman & Wakefield LLP mit Sitz in London, die beim
Companies House in Großbritannien unter OC 328588 als Partnerschaftsgesellschaft englischen Rechts ohne persönliche Haftung
der Partner ("LLP") registriert ist. Eine Liste der Partner kann eingesehen werden am obigen Sitz der Niederlassung.
Umsatzsteuer-Identifikationsnummer: DE 213 062 633
Bankverbindung: Barclays Bank Plc Konto-Nr.: 07 365 440 01 BLZ 503 104 00 IBAN DE14 5031 0400 0736 5440 01
Valuers Statement
59

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
Almada Forum

Financial Statements
Financial Statements
61

Commerz Real Estate Master FCP – SIF
Consolidated Statement of Financial Position
(expressed in EUR)
The notes on pages 22 to 59 are an integral part of these consolidated financial statements
Financial Statements
63

64
Commerz Real Estate Master FCP – SIF
Consolidated Statement of Comprehensive Income
(expressed in EUR)
* Previous year figures have been amended on management decision to reflect changes in
allocation of operational costs in 2009. For details please refer to note 2.21.
The notes on pages 22 to 59 are an integral part of these consolidated financial statements

Commerz Real Estate Master FCP – SIF
Consolidated Statement of Changes in Equity
for the year ended December 31, 2009
(expressed in EUR)
The notes on pages 22 to 59 are an integral part of these consolidated financial statements
21
Financial Statements
65

66
Commerz Real Estate Master FCP – SIF
Consolidated Statement of Cash Flows
for the year ended December 31, 2009
(expressed in EUR)
Investing and financing transactions that did not require the use of cash or cash equivalents are
excluded from the cash flow statement. The group did not enter into such transactions during
2009 or 2008.
The notes on pages 22 to 59 are an integral part of these consolidated financial statements
22

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
1. General information and current operating environment
Commerz Real Estate Master FCP-SIF formerly CG Real Estate Master FCP-SIF (hereafter the “Fund”) was launched on
June 4, 2007 as an open-ended fonds commun de placement - fonds d‘investissement spécialisé, under the laws of the
Grand-Duchy of Luxembourg. Its assets are held in common by, and managed in the interest of its co-owners (the “Unit
holders”) by CG Real Estate Luxembourg S.à r.l., Register of Commerce Number B126.731 (the “Management Company”).
The registered office is located in 25, rue Edward Steichen, L-2540 Luxembourg. The Fund’s financial year starts
on January 1st and ends on December 31st of each period. These audited consolidated financial statements are the third
report covering the period January 1, 2009 to December 31, 2009. The consolidated financial statements of the Fund are
presented in Euro (EUR).
The Fund has adopted an “umbrella” structure and currently consists of one sub-fund:
- CG malls europe (the “Sub-fund”)
In seeking to achieve the investment objectives of the Sub-fund, the Fund invests in properties and related real estate
investments across Europe. The geographic allocation targets are 70% of aggregated investments in European Core
Markets and 30% of aggregate investments in European Emerging Markets, whereas not more than a total of 20% of
the aggregate investments shall be invested in Turkey, Croatia and Macedonia as long as these countries are EU candidate
countries.
The Fund may, directly or indirectly, grant loans of any kind to its Subsidiaries in order inter alia to finance the acquisition
of any investment made by any Subsidiaries.
The consolidated financial statements have been approved for issue by the Board of Directors on April 15, 2010. The
unitholders have the power to amend the consolidated financial statements after issue.
Recent volatility in global and European financial markets
The ongoing global liquidity crisis which commenced in the middle of 2007 has resulted in, among other things, a lower
level of capital market funding, lower liquidity levels across the banking sector, and, at times, higher interbank lending
rates and very high volatility in the stock markets. The uncertainties in the global financial markets have led to bank
failures and bank rescues in the United States of America, Western Europe, Russia and elsewhere. Indeed the full extent
of the impact of the ongoing financial crisis is still proving to be impossible to anticipate or completely guard against:
Impact on Liquidity
Financial Statements
The volume of wholesale financing has significantly reduced since mid-2007. Such circumstances may affect the ability
of the Fund to obtain new borrowings and re-finance its existing borrowings at terms and conditions similar to those
applied to earlier transactions. The Fund will require to refinance one of the loans during the financial year 2010. Despite
the current market situation the terms and conditions for the renewal are not expected to have major influence on
the Fund‘s liquidity.
67

68
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
1. General information and current operating environment (continued)
Impact on tenants and other debtors
Tenants and debtors of the Fund may be affected by the lower liquidity situation which could in turn impact their ability
to pay/repay the amounts owed.
Deteriorating operating conditions for tenants and other debtors may also have an impact on management’s cash flow
forecasts and assessment of the impairment of assets. To the extent that information is available, management has properly
reflected revised estimates for future cash flows in its impairment assessments.
Valuation of investment properties
For many types of real estate the markets in Portugal and Spain have been severely affected by the recent volatility in
global financial markets. As such the carrying values of investment properties measured at fair value in accordance
with IAS 40 have been updated to reflect market conditions at the reporting date.
2. Significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1. Basis of preparation
The consolidated financial statements of the Fund have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union (“IFRS”). The consolidated financial statements have been
prepared under the historical cost convention modified for the revaluation of investment properties, financial assets and
financial liabilities at fair value through profit or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of applying the group’s accounting policies.
Consolidated statements of comprehensive income and cash flows
The Fund presents the consolidated statement of comprehensive income by nature of expense.
The Fund reports cash flows from operating activities using the indirect method.
The acquisitions of investment properties are disclosed as cash flows from investing activities because this most appropriately
reflects the Funds business activities.
Cash flows from investing and financing activities are determined using the direct method.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.1. Basis of preparation (continued)
The preparation of financial statements in conformity with IFRS (as adopted by the EU) requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of applying the Fund’s
accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the
assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated
financial statements are disclosed in note 4.
(a) Standards and amendments to existing standards effective January 1, 2009
Financial Statements
The following standards, amendments and interpretations are mandatory for accounting periods beginning on or after
January 1, 2009 and are of relevance to the Fund:
Standard/ Content Applicable for financial
Interpretation years beginning on / after
IAS 1 Presentation of financial statements January 1, 2009
IAS 23 Borrowing costs January 1, 2009
IAS 32 and IAS 1 Puttable financial instruments and obligations arising on liquidation January 1, 2009
IFRS 7 Amendment: Improving disclosures about financial instruments January 1, 2009
IFRIC 15 Agreements for the construction of real estate January 1, 2009
IAS 40R Investment property January 1, 2009
• IAS 1, ‘Presentation of financial statements’ A revised version of IAS 1 was issued in September 2007. The revised
standard prohibits the presentation of items of income and expenses (that is, ‘non-owner changes in equity’) in the
statement of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner
changes in equity in a statement of comprehensive income. As a result, the Group presents in the consolidated
statement of changes in equity all owner changes in equity; all non-owner changes in equity are presented in the
consolidated statement of comprehensive income. The adoption of this revised standard impacts only presentation
aspects; therefore, it has no impact on the Fund’s net assets.
• IAS 23, ‘Borrowing costs’ A revised version was issued in March 2007. Under the revised standard, an entity is required
to capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset (one that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset. The option
of immediately expensing those borrowing costs was removed. The capitalisation is required for qualifying assets for
which the commencement date for capitalisation is on or after 1 January 2009. For qualifying assets measured at fair
value inventories, that are manufactured or otherwise produced in large quantities on a repetitive basis, the application
of IAS 23 is not required. The Group has applied this standard in accordance with the transition provisions. Since at reporting
date no qualifying assets were held or had been sold by the Fund, the adoption had no impact on its net assets.
69

70
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.1. Basis of preparation (continued)
• IAS 32 (Amendment), ‘Financial instruments: Presentation’ and IAS 1 (Amendment), ‘Presentation of financial
statements – Puttable financial instruments arising on liquidation’. The amendments are part of the IASB’s annual
improvements project published in May 2008 and are effective from January 1, 2009. The amended standards require
entities to classify puttable instruments and instruments, or components of instruments that impose on the entity
an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation as equity,
provided the financial instruments have particular features and meet specific conditions, including that all financial
instruments in the class of instruments that is subordinate to all other instruments have identical features. The
management of the Fund opted for an early adoption of the amendment for the financial year 2008. As the Fund’s
redeemable shares are issued as one class of shares and the conditions defined in the amendment are fulfilled, the
issued shares of the Fund are classified as equity, resulting in the same disclosure of the redeemable shares as last
year.
• Amendment: IFRS 7, ‘Improving disclosures about financial instruments’ The IASB published amendments to IFRS 7
in March 2009. The amendment requires enhanced disclosures about fair value measurements and liquidity risk. In
particular, the amendment requires disclosure of fair value measurements by level of a three-level fair value measurement
hierarchy. In addition to that, the amendment clarifies that the maturity analysis of liabilities should include
issued financial guarantee contracts at the maximum amount of the guarantee in the earliest period in which the guarantee
could be called; and secondly requires disclosure of remaining contractual maturities of financial derivatives
if the contractual maturities are essential for an understanding of the timing of the cash flows. The entity has to
disclose a maturity analysis of financial assets it holds for managing liquidity risk, if that information is necessary to
enable users of its financial statements to evaluate the nature and extent of liquidity risk. The adoption of the amendment
results in additional disclosures but does not have an impact on the Fund’s net assets.
• IAS 40, ‘Investment property’, amendment (and consequential amendment to IAS 16, ‘Property, plant and equipment’).
The amendments are part of the IASB’s annual improvements project published in May 2008 and are effective from
1 January 2009. Property that is under construction or development for future use as investment property is brought
within the scope of IAS 40. Where the fair value model is applied, such property is measured at fair value. However,
where fair value of investment property under construction is not reliably determinable, the property is measured at
cost until the earlier of the date construction is completed and the date at which fair value becomes reliably measurable.
Since at balance sheet date no property under construction was held by the Fund, the adoption had no impact
on its net assets.
• IFRIC 15, ‘Agreements for the construction of real estate’ (effective from January 1, 2009): The interpretation clarifies
whether IAS 18, ‘Revenue’ or IAS 11 ‘Construction contracts’ should be applied to particular transactions. It
is likely to result in IAS 18 being applied to a wider range of transactions. The management of the Fund expects to
apply IAS 18 for such sale agreements; however, IFRIC 15 is currently not relevant to the Fund’s operations, as it has
not yet entered into any sale agreements for the property under development classified as inventories.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.1. Basis of preparation (continued)
• Improvements to IFRS’ (issued in May 2008): The Improvements project contains numerous amendments to IFRS
that the IASB considers non-urgent but necessary. ‘Improvements to IFRS’ comprise amendments that result in
accounting changes for presentation, recognition or measurement purposes, as well as terminology or editorial
amendments related to a variety of individual IFRS standards. Most of the amendments are effective for annual
periods beginning on or after January 1, 2009. No material changes to accounting policies arose as a result of these
amendments except to the amendments to IAS 40, ‘Investment property’ (see above).
(b) Interpretations and amendments to standards becoming effective in 2009 but not relevant for the Fund
Financial Statements
Standard/ Content Applicable for financial
Interpretation years beginning on / after
IFRS 1 and IAS 27 Cost of an investment in a subsidiary, jointly
controlled entity or associate.
January 1, 2009
IFRS 2 Share-based payments – Vesting conditions
and cancellations.
January 1, 2009
IFRS 8 Presentation of segment reporting January 1, 2009
IFRIC 13 Customer loyalty programs July 1, 2008
IFRIC 16 Hedges of a net investment in a foreign operation October 1, 2008
(c) Standards and amendments, and interpretations that are not effective and not expected to have significant impact on the
Fund’s financial statements
Standard/ Content Applicable for financial
Interpretation years beginning on / after
IAS 27 Consolidation and separate financial statements July 1,2009
IFRS 3 Business combinations July 1, 2009
IFRS 9 Financial instruments: Classification and measurement January 1, 2013
IAS 24 Related party disclosures January 1, 2011
IAS 32 Classification of rights issues February 1, 2010
IAS 39 Financial instruments: Recognition and measurement –
Eligible hedged items
July 1, 2009
IFRS 1 First time adoption of International Financial Reporting Standards July 1, 2009
Amendment Additional exemptions for first time adopters January 1, 2010
Amendment Group cash settled share based payment transactions January 1, 2010
IFRIC 17 Distribution of non-cash assets to owners July 1, 2009
IFRIC 18 Transfer of assets from customers July 1, 2009
71

72
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.1. Basis of preparation (continued)
• IAS 27, ‘Consolidated and separate financial statements’ (revised 2008; effective for annual periods beginning on or
after July 1, 2009). The revised standard requires the effects of all transactions with non-controlling interests to be
recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains
and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is
re-measured to fair value and a gain or loss is recognised in profit or loss.
• IFRS 3, ‘Business combinations’ (revised 2008; effective for business combinations for which the acquisition date
is on or after the beginning of the first annual reporting period beginning on or after July 1, 2009). The revised
standard continues to apply the acquisition method to business combinations, with some significant changes. For
example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent
payments classified as debt subsequently re-measured through the income statement. There is a choice on an
acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair vale or at the
non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition-related costs should be
expensed. The management of the Fund will apply the revised standard prospectively to all business combinations
from 1 January 2010.
• IFRS 9, ‘Financial instruments: Classification and measurement’. In November 2009, the Board issued the first part of
IFRS 9 relating to the classification and measurement of financial assets. IFRS 9 will ultimately replace IAS 39. The
standard requires an entity to classify its financial assets on the basis of the entity’s business model for managing
the financial assets and the contractual cash flow characteristics of the financial asset, and subsequently measures
the financial assets as either at amortised cost or fair value. The new standard is mandatory for annual periods
beginning on or after January 1, 2013.
(d) Early adoption of standards
In 2009, the Group did not early adopt any new or amended standards and do not plan to early adopt any of the standards
issued not yet effective.
2.2. Consolidation
The audited consolidated financial statements include the accounts of the Fund and its wholly owned subsidiaries (the
“Group”).
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The
existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing
whether the Group controls another entity.
Joint control is the contractually agreed sharing of control over an economic activity. There are no jointly controlled
entities within the Group.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.2. Consolidation (continued)
Financial Statements
An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant
influence and that is neither a subsidiary nor an interest in a joint venture. No consolidated entity holds interests in
any associate.
Subsidiaries have been fully consolidated from the date on which control was transferred to the Group. They are deconsolidated
from the date control ceases.
Accounting for business combinations under IFRS 3 only applies if it is considered that a business has been acquired.
Under IFRS 3, ‘Business combinations’, a business is defined as an integrated set of activities and assets conducted and
managed for the purpose of providing a return to investors or lower costs or other economic benefits directly and proportionately
to policyholders or participants. A business generally consists of inputs, processes applied to those inputs,
and resulting outputs that are, or will be, used to generate revenues. In the absence of such criteria, a group of assets is
deemed to have been acquired. If goodwill is present in a transferred set of activities and assets, the transferred set is
presumed to be a business.
For acquisitions meeting the definition of a business, the purchase method of accounting is used. The cost of an acquisition
is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at
the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the
Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the
fair value of the Group’s share of the net assets acquired, the difference is recognised directly in the profit or loss for the
year as negative goodwill.
For acquisitions not meeting the definition of a business, the Group allocates the cost between the individual identifiable
assets and liabilities in the Group based on their relative fair values at the date of acquisition. Such transactions or
events do not give rise to goodwill.
All the Group companies have December 31 as their year end. Consolidated financial statements are prepared using uniform
accounting policies for like transactions. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Group.
Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The Group applies a policy of treating transactions with non-controlling interests as transactions with parties external
to the Group. Non-controlling interests represent the portion of profit and net assets not held by the Group. They are
presented separately in the statement of comprehensive income and in the consolidated statement of financial position
separately from the amounts attributable to the owners of the parent. At year end, no non-controlling interest exists.
73

74
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.3. Investment Property
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Fund
or its subsidiaries is classified as investment property. As from January 1, 2009, investment property also includes property
that is being constructed or developed for future use as investment property.
Land held under operating leases is classified and accounted for by the Group as investment property when the rest of
the definition of investment property is met. The operating lease is accounted for as if it were a finance lease.
Investment property is measured initially at its cost, including related transaction costs and borrowing costs, if applicable.
Borrowing costs are incurred for the purpose of acquiring, constructing or producing a qualifying investment
property are capitalised as part of its cost. Borrowing costs are capitalised while acquisition or construction is actively
underway and cease once the asset is substantially complete, or suspended if the development of the asset is suspended.
After initial recognition, investment property is carried at fair value. Fair value is based on active market prices,
adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. If this information is
not available, the Group uses alternative valuation methods such as recent prices on less active markets or discounted
cash flow projections. Valuations are performed as of the financial position date by professional external valuers who
hold recognised and relevant professional qualifications and have recent experience in the location and category of the
investment property being valued. These valuations form the basis for the carrying amounts in the financial statements.
Investment property that is being redeveloped for continuing use as investment property or for which the market has
become less active continues to be measured at fair value. As at reporting date, there had been no properties under
development held by the Group.
Valuations of investment property are performed in accordance with the guidance issued by the International Valuation
Standards Committee.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.3. Investment Property (continued)
The fair value of investment property reflects, among other things, rental income from current leases and assumptions
about rental income from future leases in the light of the current market conditions.
The fair value also reflects, on a similar basis, any cash outflows that could be expected in respect of the property. Some
of those outflows are recognised as a liability, including finance lease liabilities in respect of leasehold land classified as
investment property; others, including contingent rent payments, are not recognised in the financial statements.
Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic
benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably. All
other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the
carrying amount of the replaced part is derecognised.
If a valuation obtained for a property held under a lease is net of all payments expected to be made, any related lease
liability recognised separately in the statement of financial position is added back to arrive at the carrying value of the
investment property for accounting purposes.
The fair value of investment property does not reflect future capital expenditure that will improve or enhance the
property and does not reflect the related future benefits from this future expenditure other than those a rational market
participant would take into account when determining the value of the property.
Commerz Grundbesitzgesellschaft mbH (“CGG”, now Commerz Real AG) engaged BDO Deutsche Warentreuhand AG
(“BDO”), an audit company not affiliated with CGG, to supervise and monitor the valuation process. BDO selected, in its
own discretion, three Independent Valuers:
Cushman & Wakefield LLP
(“Cushman & Wakefield”)
Westhafenplatz 6
D- 60327 Frankfurt am Main,
Germany
DTZ Ibérica (“DTZ”)
Paseo de la Castellana 93 – 2a planta
28036 Madrid
Spain
DTZ Portugal (“DTZ”)
Rua Tierno Galvan, Torre 3, 16º Piso
1070-274 Lisboa
Portugal
Financial Statements
75

76
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.3. Investment Property (continued)
Changes in fair values are recorded in the statement of comprehensive income. Investment properties are derecognised
either when they have been disposed of or when the investment property is permanently withdrawn from use and no
future economic benefit is expected from its disposal.
Where the Group disposes of a property at fair value in an arm’s length transaction, the carrying value immediately
prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the income statement within net
gain from fair value adjustment on investment property.
Investment properties under construction will be, if applicable, shown as investment properties. They will subsequently
be valued at the fair value at each reporting date. All fair value gains or losses will be recognised as profit or loss for the
year as fair value gains or losses.
If an investment property becomes owner-occupied, it is reclassified as property, plant and equipment. Its fair value at
the date of reclassification becomes its cost for subsequent accounting purposes.
If an item of owner-occupied property becomes an investment property because its use has changed, any difference
resulting between the carrying amount and the fair value of this item at the date of transfer is treated in the same way
as a revaluation under IAS 16. Any resulting increase in the carrying amount of the property is recognised in the profit
or loss to the extent that it reverses a previous impairment loss, with any remaining increase recognised in other comprehensive
income and increases directly to revaluation surplus within equity. Any resulting decrease in the carrying
amount of the property is initially charged in other comprehensive income against any previously recognised revaluation
surplus, with any remaining decrease charged to profit or loss.
Where an investment property undergoes a change in use, evidenced by commencement of development with a view to
sale, the property is transferred to inventories. A property’s deemed cost for subsequent accounting as inventories is its
fair value at the date of change in use.
2.4 Financial instruments
(a) Financial assets
Financial assets are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity
financial assets, and available-for-sale financial assets, as appropriate. The Group determines the classification of
its financial assets at initial recognition. When financial assets are recognised initially, they are measured at fair value,
plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. Financial
assets are derecognised only when the contractual rights to the cash flows from the financial asset expire or the Group
transfers substantially all risks and rewards of ownership.
The Group’s financial assets consist only of loans and receivables.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.4 Financial instruments (continued)
Financial assets recognised in the statement of financial position as trade and other receivables are classified as loans
and receivables. They are recognised initially at fair value and subsequently measured at amortised cost less provision
for impairment.
Cash and cash equivalents are also classified as loans and receivables. They are subsequently measured at amortised
cost. Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly
liquid investments with original maturities of three months or less.
The Group assesses at each financial position date whether there is objective evidence that a financial asset or group of
financial assets is impaired. If there is objective evidence (such as significant financial difficulty of the obligor, breach
of contract, or it becomes probable that the debtor will enter bankruptcy) the asset is tested for impairment. The amount
of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future
cash flows (excluding future expected credit losses that have not been incurred) discounted at the financial asset’s original
effective interest rate (that is, the effective interest rate computed at initial recognition). The carrying amount of
the asset is reduced through use of an allowance account. The amount of the loss is recognised as profit or loss.
In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability
of insolvency or significant financial difficulties of the debtor) that the Group will not be able to collect all of the amounts
due under the original terms of the invoice. Impaired debts are derecognised when they are assessed as uncollectible.
If in a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised, the previously recognised impairment loss is reversed, to the extent
that the carrying value of the asset does not exceed its amortised cost at the reversal date. Any subsequent reversal
of an impairment loss is recognised as profit or loss.
(b) Financial liabilities
Liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss or other
liabilities, as appropriate.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
All loans and borrowings are classified as other liabilities. Initial recognition is at fair value less directly attributable
transaction costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised
cost using the effective interest method (see Note 2.11 for the accounting policy on borrowings).
Financial liabilities included in trade and other payables are recognised initially at fair value and subsequently at amortised
cost. The fair value of a non-interest bearing liability is its discounted repayment amount. If the due date of the
liability is less than one year, discounting is omitted.
2.5. Cash and cash equivalents
Financial Statements
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, other short- term highly liquid investments
with original maturities of three months or less, and bank overdrafts.
77

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Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.6. Prepayments
Prepayments are carried at cost less any accumulated impairment losses. See Note 2.7 for separate accounting policy
for pre-paid operating lease payments.
2.7. Leases
Properties leased under operating leases are included in investment property in the consolidated statement of financial
position (note 5). See note 2.14. for the recognition of rental income.
2.8. Trade receivables
Trades receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment. A provision for impairment of trade receivables is established when there
is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the
receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial
reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the
trade receivable is impaired. The amount of provision is the difference between the asset’s carrying amount and the
present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of
the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income
statement. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables.
Subsequent recoveries of amounts previously written off are recognised as profit or loss.
2.9. Share capital
Shares are classified as equity when there is no obligation to transfer cash or other assets. Incremental costs directly
attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
2.10. Trade and other payables
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method.
Certain group companies obtain deposits from tenants as a guarantee for returning the property at the end of the lease
term in a specified good condition or for the lease payments for a period ranging from 1 to 12 months. Such deposits are
treated as financial liabilities in accordance with IAS 39 and they are initially recognised at fair value. The difference
between fair value and cash received is considered to be part of the minimum lease payments received for the operating
lease (refer to note 2.14. for the recognition of rental income). The deposit is subsequently measured at amortised cost.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.11. Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated
at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized
as finance cost in the statement of comprehensive income over the period of the borrowings using the effective
interest method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs.
To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised
as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the date of the statement of financial position.
2.12. Current and deferred income tax
Financial Statements
Tax expense comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it
relates to items recognised directly in equity, in which case the tax is also recognised in equity.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the date of
the statement of financial position in the countries where the Group operates. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred
income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than
a business combination that at the time of the transaction affects neither accounting or taxable profit or loss. Deferred
income tax is determined using rates (and laws) which have been enacted or substantially enacted by the balance sheet
date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability
is settled. Deferred income tax assets are recognised to the extent that it is probably that future taxable profit will be
available against which the temporary differences can be utilised.
The carrying value of the Group’s investment property will generally be realised by a combination of income (rental
stream during the period of use) and capital (the consideration on the sale at the end of use). In jurisdictions where different
tax rates exist for income and capital gains, the Group considers the planned recovery of the asset and how that
affects the tax rate used in the calculation of the deferred tax. The length of the period for which a property will be held
prior to disposal is based on the Group’s current plans and recent experience with similar properties. The capital gains
tax rate applied is that which would apply on a direct sale of the property recorded in the statement of financial position,
regardless of whether the Group would structure the sale via the disposal of the subsidiary holding the asset, to which a
different tax rate may apply.
79

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Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.12. Current and deferred income tax
The deferred tax is then calculated based on the respective temporary differences and tax consequences arising from
recovery through use and recovery through sale.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except
where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary
difference will not reverse in the foreseeable future.
2.13. Provisions
Provisions for legal claims are recognised when the Group has a present legal or constructive obligation as a result of
past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be
reliably estimated.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using
a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.
The increase in the provision due to passage of time is recognised as finance cost.
Where the Group, as lessee, is contractually required to restore a leased property to an agreed condition prior to release
by a lessor, provision is made for such costs as they are identified.
2.14. Revenue recognition
Revenue includes rental income, service charges and management charges from properties
Rental income from operating leases is recognized in income on a straight-line basis over the lease term. When the
Fund provides incentives to its customers, the cost of incentives are recognized over the lease term, on a straight-line
basis, as a reduction of rental income.
Service and management charges are recognized on a gross basis in the accounting period in which the services are
rendered. When the Fund is acting as an agent, the commission rather than gross income is recorded as revenue.
2.15. Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s statement of financial position
in the period in which the dividends are approved.
2.16. Expenses
Expenses are recognised on an accrual basis in the period to which the expense can be contractually recovered, net of
any sales taxes.
Expenses are accounted for on an accrual basis and are charged to the consolidated statement of comprehensive income
in the period to which they relate with the exception of expenditures which can be directly attributed to the acquisition
of an asset which is then capitalised as a component of cost. Expenses arising from the disposal of assets will be deducted
from the proceeds of disposal.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.17. Interest income and expense
Interest income and expense are recognised within ‘finance income’ and ‘finance costs’ in the consolidated statement of
comprehensive income using the effective interest rate method, except for borrowing costs relating to qualifying assets,
which from January 1, 2009 are capitalised as part of the cost of that asset. The Group has chosen to capitalise borrowing
costs on all qualifying assets irrespective of whether they are measured at fair value.
The effective interest method is a method of calculating the amortized cost of a financial asset or financial liability and
of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts future cash payments or receipts throughout the expected life of the financial instrument, or a shorter
amount where appropriate to the net carrying amount of the financial asset or liability. When calculating the effective
interest rate, the Management estimates cash flows considering the contractual terms of the financial instrument (for
example, prepayments, options) but does not consider future credit losses. The calculation includes all fees and points
paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs
and all other premiums or discounts.
2.18. Other direct property operating expenses
Other direct property operating expenses comprise the costs of owning and managing properties, such as service charges
and maintenance costs. Where a property or a part of a property is unoccupied, these costs are attributable to the
Fund, if not covered by rental guarantees.
2.19. Other expenses
Expenses include legal, accounting, auditing and other fees. They are recognised as expense in profit or loss in the period
in which they are incurred (on an accruals basis).
2.20. Foreign currency transactions
The Fund’s and all sub- entities’ functional and reporting currency is Euro. All transactions were in Euro (“EUR”,
“Euro”). No cash positions were held in any other currency except for Euros. Since all investments by the Group as at
reporting date were held within the Euro- Zone foreign currency translation is not necessary.
2.21. Comparatives
Financial Statements
The disclosure of certain figures for the year ended December 31, 2008, has been reclassified in order to ensure comparability
with the figures for the year ended December 31, 2009. The reclassification was done to take into account the
changes resulting from the amendment of IAS 1 and to reflect changes in allocation of operational costs.
81

82
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
3. Financial risk management
3.1. Financial risk factors
The risk management function within the Group is carried out in respect of financial risks. Financial risks are risks
arising from financial instruments to which the Group is exposed during or at the end of the reporting period. Financial
risk comprises market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The primary objectives of the financial risk management function are to establish risk limits, and then ensure that exposure
to risks stays within these limits.
Risk management is carried out by the financial controller of the Group under policies approved by the Board of Directors.
The fund controller identifies and evaluates financial risks in close co-operation with the Group’s operating units.
The Board provides written principles for overall risk management, as well as written policies covering specific areas,
such as interest rate risk, credit risk, and investing excess liquidity.
Key financial risk management reports are produced monthly on a Group level and provided to the key management
personnel of the Fund.
The Group’s activities expose it to a variety of financial risks, including; market risk (including fair value interest rate
risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. This note presents information about the
Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing
risk, and the Group’s management of capital.
The financial risks are related to the following financial instruments: trade receivables, cash and cash equivalents, trade
and other payables and borrowings.
(a) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. The Group’s market risks arise from open positions in interest-bearing assets and liabilities, to the
extent that these are exposed to general and specific market movements. Management sets limits on the exposure to
interest rate risk that may be accepted, which are monitored on a monthly basis. However, the use of this approach does
not prevent losses outside of these limits in the event of more significant market movements. Currently the Group is not
exposed to market risk with respect to financial instruments as it does not hold any equity securities.
Sensitivities to market risks included below are based on a change in one factor while holding all other factors constant.
In practice this is unlikely to occur, and changes in some of the factors may be correlated – for example, changes in
interest rates and changes in currency rates.
(i) Price risk
The Group has no significant exposure to price risk as it does not hold any equity securities or commodities.
The Group is exposed to price risk other than in respect of financial instruments, such as property price risk including
property rentals risk (note 5).

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
3.1. Financial risk factors (continued)
The Group is exposed to property price and property rental risk. The Management of the Fund seeks to create a portfolio
that generates sustainable current income and provides investors with long-term appreciation of asset values. The
Fund’s main investment goal is to invest exclusively in dominant regional shopping centres with the aim of creating a
Portfolio diversified both by geography, with a focus on core markets, and by real estate type with a focus on stabilised
assets. Dominant regional shopping centres can create a quasi-natural monopoly within their respective catchment
area. Their size allows for configuration of an optimal branch and tenant mix, which is the key to maintaining competitiveness
in a fast changing retailers’ landscape. The geographic allocation of the investments is split in core and
emerging markets, with approximately 70% of investments targeted in core markets and the remaining 30% invested
in emerging markets. These splits will offer both upside potential for the investor while at the same time maintaining
the cash flow profile of a core product.
(ii) Cash flow and fair value interest rate risk
As the Group has no significant interest bearing assets, its income and operating cash flows are substantially independent
of changes in market interest rates.
The Group’s possible interest rate risk on interest payable arises from long-term borrowings (Note 8). Borrowings issued
at variable rates expose the Group to cash flow interest rate risk. Since all long-term borrowings are issued with fixed
interest rates, changes in market interest rates will as at December 31, 2009 not effect the Group to cash flow interest
rate risk. Nevertheless the Group has significant exposure to fair value interest rate risk.
(iii) Foreign currency risk
The Group has no exposure to foreign currency risks as all transactions are denominated in Euro
(b) Credit risk
Financial Statements
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing
to discharge an obligation. The Group has no significant concentrations of credit risk. Credit risk arises from cash and
cash equivalents held at banks and trade receivables, including rental receivables from lessees. Credit risk is managed
on a group basis. The Group structures the levels of credit risk it accepts by placing limits on its exposure to a single
counterparty, or groups of counterparties, and to geographical and industry segments.
83

84
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
3.1. Financial risk factors (continued)
Such risks are subject to a quarterly or more frequent review. The Group has policies in place to ensure that rental contracts
are made with customers with an appropriate credit history. Cash balances are held only with financial institutions
with a Moody’s credit rating of A or better. The Group has policies that limit the amount of credit exposure to any
financial institution. Limits on the level of credit risk by category and territory are approved quarterly by the Board of
Directors. The utilisations of credit limits are regularly monitored.
The Group’s maximum exposure to credit risk by class of financial asset is as follows:
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate
amount of committed credit facilities and the ability to close out market positions. The Fund’s main investment
goal is to create a portfolio which guarantees stable cash flows through geographic and investment product diversification.
The Group’s liquidity positions are monitored on a daily basis by management and are reviewed by the Board of Directors.
A summary table with maturity of financial assets and liabilities is presented below. This is used by key management
personnel to manage liquidity risks and is derived from managerial reports at company level. Undiscounted cash
flows in respect of balances due within 12 months generally equal their carrying amounts in the statement of financial
position as the impact of discounting is not significant.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
3.1. Financial risk factors (continued)
Financial Statements
The following tables summarise the liquidity gaps split by residual maturities as at December 31, 2008 and December
31, 2009:
Liquidity risks may also stem from derivative instruments held by the Fund. The Management will in general not provide
for currency hedging on CG malls europe’s level and will under no circumstances use derivatives for speculative purposes.
Nevertheless, the Fund Management has full discretion to use futures, options or other derivatives for selective
hedging purposes to mitigate currency and/or interest rate risks. At reporting date the fund did not hold any derivatives
instruments.
Liquidity risks for the Fund might also stem from the redemption of units of the Fund’s investors. Each investor has
the right to have its units redeemed, subject to the Fund’s notice period, with the notice period varying between three
and thirty months. The redemption price shall equal the NAV per Unit at the time the redemption becomes effective.
In order to fund redemptions, the Management Company may use funds that would otherwise constitute distributable
cash flow, call undrawn capital commitments, sell assets belonging to CG malls europe (including real estate), incur
debt subject to the prescribed borrowing restrictions or use available funds from other sources. At reporting date no
redemptions were issued.
85

86
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
3.2. Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order
to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated
as net debt divided by total capital. Net debt is calculated as total borrowings (including borrowings and trade and
other payables, as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as
equity, as shown in the consolidated balance sheet, plus net debt.
The gearing ratio policy during 2009, which was unchanged from 2008, was restricted to the following: As set in the
Private Placement Memorandum (Terms and Conditions of CG malls Europe) the Borrowing rate should on average over
any fiscal year not exceed 60% of the market value of the investment properties. Furthermore, short-term borrowing
entrance is limited up to 10% of the Gross Asset Value of the Group, mostly to satisfy short term liquidity requirements.
As at December 31, 2009 the Fund’s overall gearing ratio was 66.92% (December 31, 2008: 61.62%). The gearing ratio
includes two loan facilities that have been reclassified to short term liabilities because of covenant breaches or because
of remaining time to maturity of one year or less. The management of the Fund is already engaged in negotiations
concerning the extension/revision of both loan facilities and it estimates the probability of extending the loans to be
very high. The average overall gearing ratio in 2009 was 64.62% (2008: 61.62%). Therefore the limit of a 60% average
borrowing rate as set out in the management regulations could not be complied with.
Since the recent negative market fluctuations which mainly caused the increase in the overall gearing ratio are considered
to be temporarily and therefore the market values of the investment properties are expected to recover, the Fund is
expecting to meet the target borrowing rate restrictions in the near future. Furthermore it is expected that all credit facilities
currently disclosed as short term liabilities will be extended so that the gearing ratio for short term debt is expected
to decrease to zero percent in the near future.
The gearing ratios at the end of the reporting periods 2008 and 2009 were as follows:
2009 2008
in EUR in EUR
Trade receivables, gross of provision for impairment (note 6)
- Rent receivables 11,447,280 9,577,322
- Other financial assets 11,258,612 9,589,337
Prepayments (note 7) 5,087,085 4,900,497
Cash and cash equivalents 20,714,230 24,556,946

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
3.2. Capital risk management (continued)
The debt to equity ratios at the end of the reporting period 2008 and 2009 were as follows:
3.3. Fair value estimation
Effective January 1, 2009, the Group adopted the amendment to IFRS 7 for financial instruments that are measured
in the statement of financial position at fair value. This requires disclosure of fair value measurements by level of the
following fair value measurement hierarchy:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
The Group does not hold any financial instruments measured at fair value.
The carrying values less impairment provision of trade receivables and payables are approximate their fair values. The
fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at
the current market interest rate that is available to the group for similar financial instruments.
All loans held by the Group at the date of the statement of financial position are fixed interest rate borrowings with the
book value being the amortized cost value. Over the past months market interest rates have been declining but at the
same time also individual borrowing margins for the members of the Group have been increasing, almost completely
offsetting the effect of decreased market rates. Thus the book values of the loans disclosed in the balance sheet can
still be considered as the best estimate of their fair values. Nevertheless all else being equal, changes in market interest
rates can have a significant impact on the fair value of the loans, exposing the Group to significant fair value interest
rate risk.
4. Critical accounting estimates and judgments
4.1. Critical accounting estimates and assumptions
Financial Statements
Estimates and judgements are continually evaluated and are based on historical experience as adjusted for current
market conditions and other factors.
87

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Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
4.1. Critical accounting estimates and assumptions (continued)
The preparation of the consolidated financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue, expenses and unrealized gains or losses during the reporting
period. Actual results could differ from these estimates. The significant accounting estimates for the Fund are described
below:
(a) Fair value of investment properties
The fair value of investment property is the price at which the property could be exchanged between knowledgeable,
willing parties in an arm’s length transaction. The fair value is determined without any deduction for transaction costs
it may occur on sale or other disposal.
The best estimate of fair value is current prices in an active market for similar lease and other contracts. In the absence
of such information, the Group determines the amount within a range of reasonable fair value estimates and assumptions
based on market conditions existing at each balance sheet date.
The fair values of the properties are determined by the discounted cash flow method over a ten year period. The calculated
amount is, amongst other factors, crucially dependant on assumptions on key factors concerning the net operating
income, such as assumptions on general vacancy, collection losses, or on repair and maintenance costs as well as on
general assumptions on the discount rate. Assumptions on these parameters differ significantly depending on jurisdiction,
location or general state of condition of the specific property. Modifications in assumptions on any of these factors
may lead to significant changes in the estimated market values.
The Fund reviews and where appropriate challenges the fair market valuations provided by the independent valuers.
In doing so, the Fund Managers use their knowledge and understanding of current prevailing market conditions and
transactional activity obtained from a variety of other external sources.
(b) Income taxes
The Group is subject to income taxes in different jurisdictions. Significant estimates are required in determining the
provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is
uncertain. The Group recognises liabilities that may arise from anticipated tax audits based on estimates of whether
additional taxes will be due. Where the final tax outcome from these matters is different from the amounts that were
initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such
determination is made.
4.2. Critical judgements in applying the Group’s accounting policies
The Group did not make any critical accounting judgements in 2009 or 2008.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
5. Investment Properties
Financial Statements
On October 31, 2007 the Fund acquired two shopping centres, Forum Almada and Forum Montijo, both located south of
Lisbon, Portugal, and the shopping centre Espacio León, located in Northern Spain, in the city of León (“Seed Portfolio”)
from another fund managed by an entity of Commerz Real Group. The purchase price for investments acquired
in 2007 was determined in accordance with the respective purchase agreements, and recorded accordingly. This also
included the final purchase price adjustments recorded in 2008 for the investments acquired in 2007. The purchase price
for investment property included equalisation for key money, tax effects, financing costs, and adjustments regarding
“HIP”, a program related to the maintenance of the properties. Thus the initially recorded acquisition costs increased
the fair value of the acquired property which was determined by the independent valuer. The below disclosed unrealised
loss of 2007 was mainly influenced by this effect. In 2008 late adjustments on the purchase prices paid in 2007
were paid, resulting in a further increase in the acquisition costs of EUR 277,882 in total. In 2009 no further acquisition
costs in regards to the Seed Portfolio were incurred.
During the financial year 2009 the Fund did not acquire any further real estate investments. The movements in the
investment values in the properties held by the fund until December 31, 2009 are as follows:
At December 31, 2009 and 2008, the Group had no unprovided contractual obligations for future repairs and maintenance.
Direct operating expenses recognised in the statement of comprehensive income include EUR 751,784 (2008: EUR 0)
relating to investment property that was unlet.
89

90
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
5. Investment Properties (continued)
84% of the investments held as at December 31, 2009 were located in Portugal (December 31, 2008: 85%), the remaining
16% of the investments are located in Spain (December 31, 2008: 15%). The geographical split of the investments
held was the following at balance sheet date:
The Fund’s investment properties were revalued as at November 17, 2009 by Cushman & Wakefield LLP based on an
income based approach using a 10 year discounted cash flow method. Valuations were based on current parameters in
an active market for all properties. For details please refer to note 4.1.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
5. Investment Properties (continued)
The carrying values of investment property at December 31, 2009 and December 31, 2008 agree to the valuations reported
by the external valuers, except that in 2008 the valuation for Espacio Leon was decreased by an amount of EUR
384,000 in regards to finance lease liabilities recognised in regards of a petrol station next to the shopping mall which
were not taken into account in the December 2008 revaluation of the property. In the year end 2009 valuation report
these financial lease liabilities have already been included.
In 2009 and 2008 no borrowing costs were capitalised.
The investment properties are financed by ca. 67% by loans which are completely secured by real estate mortgages.
6. Trade receivables
Financial Statements
The estimated fair values of receivables are the discounted amount of the estimated future cash flows expected to be
received and approximate their carrying amounts. Expected cash flows are discounted at current market rates to determine
fair values.
There is no significant concentration of credit risk with respect to trade receivables, as the Group has a large number of
tenants, internationally dispersed.
The individually impaired receivables are over three months past due (verified) and mainly relate to certain tenants
in Espacio Leon. A provision is recognised for amounts not expected to be recovered. Movements in the accumulated
impairment losses on trade receivables were as follows:
91

92
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
7. Prepayments
The prepayments are made up of prepaid rents that are related to the rents for the months January 2010 (to be verified)
amounting to EUR 2,537,085 and of prepaid expenses amounting to EUR 2,550,000. The prepaid expenses are mainly
related to expenses in relation to the administration of the shopping malls, insurance costs, marketing costs as well as
rents paid for January 2010.
8. Borrowings
All the Group‘s borrowings as at December 31, 2009 are at fixed rates of interest where around 40% of the loans
interest is fixed up to the end of September 2010 and up to the end of September 2017 for the remaining facilities. The
Group therefore just partly exposed to fluctuations in the markets with regards to interest rates.
The composition of the borrowings is as follows:
The facilities expiring within one year as at the date of the statement of financial position comprise one loan which actually
expires in September 2010 and is in the process of being renegotiated with the probability of extending the facility
being very high. They also include the loan in Espacio León which actually only expires in 2017. This classification
results from a breach of the 25% Equity covenant which is incorporated in the loan agreement between Espacio León
and Eurohypo AG. (Please see Note 19 for details). Please see note 25 for details on borrowing arrangements entered
into after the date of the statement of financial position.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
9. Deferred income
The deferred income mainly relates to prepaid gross rental income for the first two months of 2010.
10. Trade and other payables
The estimated fair values of payables are the discounted amount of the estimated future cash flows expected to be paid
and approximate their carrying amounts. Expected cash flows are discounted at current market rates to determine fair
values.
Trade payables are interest free and have settlement dates within one year.
Financial Statements
93

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
11. Net income from investment properties
12. Other direct property operating expenses
13. Other expenses

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
14. Property management fees
Property management fees are comprised of a fixed percentage charged on key turnover factors, such as rental income,
key monies, mall income, as well as cession and transfer fees. For the financial year 2009 property management fees of
EUR 3,090,809 (2008: EUR 3,765,539) have been incurred by the Group.
15. Finance income and costs
Until the end of the reporting period 2009 the Fund incurred interest expenses of EUR 18,716,878 (2008: EUR
19,475,264). In addition to that the Fund incurred EUR 818,128 of bank charges (2008: EUR 815,929). Furthermore, until
December 31, 2009 EUR 959,115 (2008: EUR 1,115,347) of amortizations of three loans which were acquired in the
course of the acquisitions of the Portuguese and Spanish properties were included in the interest expense capture.
The movements in amortization of above mentioned loans are as follows:
The finance costs of the Fund can be summarised as follows:
Financial Statements
At the same time EUR 104,053 of finance income was recognised in the financial year 2009 (2008: EUR 554,795) which
comprises mainly of interest income on cash held on bank accounts in the different entities of the Group.
95

96
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
16. Share capital
CG malls europe initially issued Class A Units to investors (including to Commerz Real AG), a Class F Unit (Fee Unit)
and a Class P Unit (Promote Unit). As at December 31, 2009 only Class A Units have been issued. Furthermore:
- Each Class A Unit participates proportionally to the aggregate number of other Class A Units of the relevant Series in
all distributions and in the proceeds of any winding up of CG Mall Europe that are allocable to such Series of Class A
Units in accordance with the Percentage Interest from time to time of such Series of Class A Units.
- A Class F Unit will be issued to the Management Company upon decision from the managers of the Fund. The Class
F Unit participates in all distributions and in the proceeds of any winding up of CG malls europe that are allocable
to the Class F Unit in accordance with the Percentage Interest from time to time of the Class F Unit. The Class F Unit
has the same economic rights as Class A Units, except that
(i) it does not pay the Deferred Management Fee or the Promote;
(ii) it has preferred redemption rights;
(iii) the Percentage Interest of the Class F Unit will initially be 0% and it will be increased quarterly by the value of the
aggregate Deferred Management Fee for such period (see clause 6.2.4 of the Private Placement Memorandum).
As at December 31, 2009 the total authorised number of Class A shares outstanding is 2.90 million with a par value of
EUR 100 per unit (2008: EUR 100 per unit). All issued units are fully paid.
The Board of Directors of the Management Company may decide to create shares of different classes. The classes may
differ in their fee structure, minimum investment requirements, type of target investors and distribution policy.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
17. Retained earnings
18. Changes in working capital
The change in the Fund’s working capital is derived as follows:
19. Consolidated entities
Entities included in the scope of the consolidation as at December 31, 2009 are as follows:
Financial Statements
97

98
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
19. Consolidated entities (continued)
During 2009, the Group breached a 25% Equity covenant which is incorporated in the loan agreement between Espacio
León Propco S.L. and Eurohypo AG. Despite the covenant breach the lender did not request accelerated repayment of
the loan.
During two consecutive years the equity of Espacio León Propco., S.L. has fallen below 50% of the amount of its nominal
share capital. Pursuant to Spanish Law, this would constitute a cause of mandatory dissolution. However, Royal
Decree Law 10/2008 (the RD) established that, for the purposes of mandatory dissolution, any losses due to, amongst
others, deterioration of the value of fixed assets shall not be considered, allowing for a 2-year suspension on the mandatory
dissolution. This 2-year suspension would have seized on December 31, 2009 but was extended until December 31,
2011 in March 2010 (please refer to Note 25 for further details). As the losses which were encountered by Espacio León
since the acquisition of the investment property were mainly due to deterioration of the value of the property Royal
Decree Law is applicable to Espacio León until December 31, 2011.
20. Related party transactions
Pursuant to the Private Placement Memorandum dated July 13, 2007 the Fund has appointed Commerz Real AG as
Investment Advisor with the responsibility to prepare the purchase and sale of commercial real estate properties for the
Fund and advise the Fund with respect to asset management.
(a) Management Fee
The Management Company is entitled to receive a Management Fee in an amount of 0.50% per annum of the Gross Asset
Value of the Fund, with rebates being granted to Investors depending on the Aggregate Investment Amount of such
Investor and to Investors subscribing for Units at the Initial Closing or acquiring Units before June 30, 2008 (see below).
The reduced Management Fee percentage is determined by reference to a fee waterfall, with the applicable percentage
decreasing as the Aggregate Investment Amount increases.
Aggregate Investment Amount Applicable Management Fee percentage
€0 - €50 million 0.50%
€50 million or more 0.45%
The applicable Management Fee percentage for Investors subscribing for Units at the Initial Closing or acquiring Units
before June 30, 2008 shall be 0.45% for a period of 10 years commencing with the Initial Closing; accordingly, the
Management Company will pay each such Unitholder corresponding rebates of the Management Fee in respect of Units
subscribed by such Unitholder at the Initial Closing or acquired by such Unitholder before June 30, 2008.
After the expiry of 10 years commencing with the Initial Closing the applicable Management Fee percentage and the
entitlement to any rebate of the Management Fee for Investors subscribing for Units at the Initial Closing or acquiring
Units before June 30, 2008 shall be calculated in the same manner as for all other Unitholders. As at December 31, 2009
the Fund disclosed Management Fees amounting to EUR 3,077,666 (as at December 31, 2008: EUR 3,335,217).

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
20. Related party transactions (continued)
(b) Acquisition Fee
The Fund will pay an Acquisition Fee of 1.00% of the purchase price of each Real Estate investment made. The Acquisition
Fee equals 2.00% of the purchase price for each Forward Funding Project arrangement entered into. All acquisitions
of the seed portfolio were bought from an entity of Commerz Real Group, a related party of the CG Real Estate
Master FCP - SIF. All acquisition fees in relation to the acquisitions of the seed portfolio had been waived. Apart from
the seed portfolio no further acquisitions were done in 2008 or 2009.
(c) Subscription Fee
Each Investor will be required to pay upon subscription a Subscription Fee in an amount of 1.00% of the Investor’s
aggregate Capital Commitment, but not more than EUR 250,000. The Subscription Fees will be used by the Management
Company inter alia to offset the establishment costs of the fund. Investors subscribing for Units at the Initial Closing and
Group Entities of such Investors shall not be required to pay a Subscription Fee.
(d) Promoter Fees
Commerz Grundbesitzgesellschaft Group will bear all third party investment banking and brokerage services connected
with the creation of the Fund. For the period ended December 31, 2008 all promoter fees have been fully paid by
Commerz Real AG.
(e) Arrangement Fees
Financial Statements
The Management Company will be entitled to participate in the capital growth of the Portfolio pursuant to a promote
mechanism. Provided the Net Asset Value (“NAV”) growth in any year exceeds a hurdle of 4%, the Management Company
will be entitled to be allocated 20% of the excess capital growth. The annual Promote allocation so made will only
vest and be payable to the Management Company, however, if and to the extent the NAV has been retained or exceeded
three years after the relevant year for which the promote may apply. At the end of the reporting periods 2008 and 2009
no arrangement fees were due.
99

100
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
21. Income and withholding tax expenses
Movements in the Fund’s income tax expense position are as follows:
The tax on the Group’s profit before taxes differs from the theoretical amount that would arise using the weighted average
tax rate on the applicable profits of the consolidated companies as follows:
The weighted average applicable tax rate was 33.15% in 2009 (2008: 33.20%). The decrease is solely caused by a
change in the profitability of the group’s subsidiaries in the respective countries.
In Portugal interest payments paid to non-residents are subject to withholding tax. As per balance sheet date, two loan
facility agreements were signed between the Luxembourgian lenders CGM Lux 2 Sarl and CGM Lux 3 Sarl and Forum
Almada and Forum Montijo respectively. According to the loan facility agreements these loans accrue interest on a
quarterly basis and both Forum Almada and Forum Montijo have been levying withholding tax on the interest amounts
paid. The payment and withholding taxes on the interest were postponed to the end of 2009 and interests were accrued
in the books. These withholding taxes are due when the interest payments are arranged or when the interest payments
become due. In Portugal the domestic withholding tax rate on interest due/payment to non-residents is currently 20%.
Applying the Portuguese – Luxembourgian Double Tax Treaty the withholding tax rates for cross border interest payments
is reduced to 5%. After elapsing the holding period of two years of Forum Almada and Forum Montijo and when
other formal conditions are fulfilled, it will be

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
21. Income and withholding tax expenses (continued)
possible for CGM Lux 2 and CGM Lux 3 to apply for the Interest & Royalties Directive (“I&R Directive”) withholding tax
rates for Portugal effecting a partial refund of the withholding tax. Under the I&R Directive in principle no withholding
tax is levied. Portugal implemented a transitory regulation in connection to the withholding tax rates that approach step
by step to the I&R Directive. The withholding tax rates according to that transitory regime are:
(i) 10% until June 2009
(ii) 5% from July 2009 until June 30, 2013
(iii) Nil after 1 July 2013.
Furthermore, in case certain conditions are met it will be possible for CGM Lux 2 and CGM Lux 3 after elapse of the two
year holding period to apply for the refund of:
(i) 5% of the interest due until June 30, 2009
(ii) 10% of the interest due between July 1, 2009 and October 31, 2009
In order to take advantage of this option, the Management has decided to amend both loan facility agreements to allow
for a two year holding period of the interest payments of both companies.
The effects of the amendment of the loan facility agreements are as follows:
22. Deferred income tax
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by
the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle
the balances on a net basis.
The gross movement in the deferred income tax account is as follows:
Financial Statements
The movement in deferred income liabilities during the year, without taking into consideration the offsetting of balances
within the same tax jurisdiction, is as follows:
101

102
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
22. Deferred income tax (continued)
The reason of the deferred income tax position is in regards to the carrying amount and tax base of borrowings held.
23. Reconciliation to trading NAV per share
For the purpose of calculating the trading NAV per share used for issuance and redemptions of shares, the Fund takes
into account an amount reflecting the following adjustments in accordance with the Private Placement Memorandum to
the Net Asset Value calculated in the consolidated balance sheet:
(i) Real estate investments are initially recorded at cost including direct acquisition costs such as property transfer
taxes and professional fees which qualify for initial capitalisation under IAS 40. On subsequent revaluation to
fair value such costs are expensed as part of the fair value adjustment in accordance with IAS 40. All other direct
acquisition costs are expensed in the period when they are incurred. In accordance with the Management Regulations,
acquisition costs are capitalized and subsequently amortized for the purpose of calculating the trading
NAV per share. The amortization is straight-line over a four year period. The purchase of Espacio León triggered
the payment of acquisition costs comprising of stamp duty of EUR 1,560,000.00 and other fees of EUR 43,225.00
amounting to 1,603,225.00.
(ii) The equity or liability interests attributable to unit holders derived from these financial statements will be adjusted to
take into account the fair (i.e. discounted) value of deferred tax liabilities (calculated under IFRS on an undiscounted
basis) as determined by the Management Company.

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
23. Reconciliation to trading NAV per share (continued)
As part of the purchases of Almada Forum and Forum Montijo, the Fund acquired four entities - Almada Cda, Al-
mada Lda, Brafero S.A. and Montijo Lda. The purchase price for all four entities was generally based on the balance
sheets of the entities according to Portuguese GAAP with several adjustments to reflect additional pricing compo-
nents. One of the adjustments to Portuguese GAAP related to the deferred key money positions in the balance sheet
of Almada Lda and Montijo Lda. So called key money is paid by a tenant at the moment the tenant enters the center
or renews a leasing agreement. The amount is paid according to the leasing agreement in order to compensate the
owner for all investments made for the business. According to Portuguese GAAP, the respective key money payment
must be deferred in the balance of the recipient over the term of the leasing agreement. However, as it is not refunda-
ble if the tenant terminates the leasing agreement prior to its expiration, the deferred income positions in the balan-
ces do not have a real liability character. To reflect the issue of the deferred key monies properly, the Fund compen-
sated the seller for the deferred income position relating to the deferred key money by discounting the future net of
tax income to the closing date. The amounts paid as compensation to the entity’s equity were EUR 1,858,855.52 for
Almada Lda and EUR 658,649.67 for Montijo Lda. These payments were then to be activated in the balance sheets of
the acquiring entities as goodwill to be amortized according to the term of the underlying deferred income positions.
However the Fund’s auditor decided that such an approach is not possible under IFRS, because these payments do
not fulfill the requirements necessary for goodwill under IFRS. As a result, the total amount of EUR 2,517,505.19
had to be written off. Such treatment of the compensation paid from the Management Company’s point of view does
not lead to a fair-value trading NAV of the Fund. Furthermore, such treatment may result in dissimilar treatment of
investors as future investors would pay too little for purchased units. As a result the Management Company issued
Declaration of Consent letters to all of its current investors to amend the terms of the Fund in order to reflect the
situation addressed above properly. All investors agreed to the adjustments proposed by the Management Company
and starting from March 2008 the adjustments were implemented with immediate effect.
24. Contingencies
The Fund, through its direct and indirect subsidiaries, is contingently liable with respect to lawsuits and matters that
arise in the normal course of business. Management is of the opinion that while it is impossible to ascertain the ultimate
legal and financial liability with respect to these contingencies, the ultimate outcome of these contingencies is not anti-
cipated to have a material effect on the Fund’s financial position and operations.
Financial Statements
103

104
Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
25. Events after the balance sheet date
As described in Note 19 Espacio León breached one of the covenants agreed upon in the loan agreement with Eurohypo
AG. In order to remediate this covenant breach the existing shareholder loan (SHL) between CGM Lux 3 S.à r.l. and
Espacio León Propco S.L. has been converted into a profit participation loan (PPL) and the amount of the loan has been
increased by € 4 Mio which ensures that the required equity ratio of 25% is restored. Management has informed the
lender about this conversion and has obtained written approval as at April 9, 2010 for the actions taken and confirmation
that the covenant breach is regarded as solved.
The conversion of the SHL into a PPL, which classifies as equity according to Spanish law, was initiated in light of
the fact that the coverage of Royal Decree Law 10/2008 was meant to expire on December 31, 2010 and the restorage
of 50% equity would have been mandatory. As mentioned in Note 19 by virtue of the Decree Law 5/2010 of March
31, 2010 (published on April 1, 2010) the stipulations of Sole Additional Provision of Royal Decree 10/2008 are also
applicable to fiscal years 2010 and 2011. However Management has decided to still perform the conversion in order to
stabilize the overall economic situation of Espacio León. The SHL has been converted into a PPL based on an amendment
agreement dated April 7, 2010.

CG Real Estate Luxembourg S.à r.l.
25, rue Edward Steichen
L-2540 Luxembourg
Phone: +352 47 79 11 25 02
Fax: +352 47 79 11 25 99