CG malls europe - Commerz Real

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
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