CG malls europe - Commerz Real

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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.