DIRECT MARKET REPORT GERMAN RETAIL - Europe Real Estate

Exhibit 11 Division median net income per household in EUR in 2003
Source: Statistisches Bundesamt, Statistisches Jahrbuch 2007
If we look at the regional differences Baden-Württemberg, Bavaria and Hessen
are topping the ranks.
Exhibit 12 Division median net income per household in EUR in 2003
Source: Statistisches Bundesamt, Statistisches Jahrbuch 2007
Demographic context; urban society
From a demographic perspective quite some important developments are
expected; the number of people living in Germany will decline by almost 10% by
the middle of this century. Furthermore, the Germany population is ageing fast;
the share of 65 year-olds will increase from 17% to roughly 30%. Also important
to notice is that regional differences will become larger as highly educated young
people tend to migrate to dynamic economic regions. People from the east go
west, people from the west again go south.
Germany actually lacks a true cosmopolitan city like London or New York and
there are very big conurbations. A total of eleven agglomeration areas exist to
which the urban areas are tightly linked. The hubs of these agglomerations are of
such crucial importance to the retail trade because they exert powerful centripetal
forces.
German retail update - 28/11/2007 13