CG malls europe - Commerz Real

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.
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