DIRECT MARKET REPORT GERMAN RETAIL - Europe Real Estate

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Exhibit 29 Rent levels per retail segment in Germany Source: Jones, Lang Lasalle Rental indexation Rents and rent increases can be freely negotiated and agreed upon in Germany. The contract may contain a graduated rent increase clauses, or an indexation clauses. The rent must remain unchanged for at least a year and the tenant must be informed, in writing, when an index-linked increase is due. Where no indexation clause is included, a landlord may require the tenant to accept a rent increase to the rent level customary in an area, provided that the last increase of rent took place at least 15 months prior to the date when the increase is to take place. As a general rule, this type of rent increase is limited to 20% over three years. According to the law of Obligations 558, the landlord must state reasons for the rate increase by means of an expert opinion, or three ‘sample’ rents charged for comparable properties, show a so-called ‘qualified rent table’ (qualifizierter Mietenspiegel) or rental database – a statistical measure of rents issued by the local authorities and approved by landlord and tenant associations. The tenant has two months to accede to the demand; if he refuses, the landlord can sue him. Furthermore, the contract should provide for which utility charges the tenant has to pay, if not specified the landlord pays. For smaller units most of the contracts have step-up provisions, which mean that if a cumulative inflation rate (CPI based) reaches a certain threshold a step is made for either the full amount (10%/100%) or part (10%/60%). In many cases for the first 3 years (e.g.) no indexation is applicable. This methodology is beneficial for the tenant as it takes approximately 5 years before a new lease level is applied. For large sized shopping centres often a two-tier indexation is applicable; a threshold amount based upon an annual CPI-indexation which can be overruled by retail sales growth (%) if the latter is larger than CPI. Construction costs A complaint heart in Germany is the rise of construction costs. For retail assets specifically these have risen to a factor of around 13 times net annual rent excluding utilities in 2006. According to information from the Federal Office of Statistics, costs will continue to rise in 2007. Due to an increase in VAT and higher prices for energy and materials a percentage of 15-20% for the last 2 years has been heart frequently. Most REITs have fixed their terms and conditions for the projects currently under development. German retail update - 28/11/2007 32
Exhibit 30 Retail yields and rents Source: DEGI Research German retail update - 28/11/2007 33
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Page 3 and 4: Executive Summary “The secret of
Page 5 and 6: Introduction Following the record r
Page 7 and 8: The ZEW Indicator of Economic Senti
Page 9 and 10: 2 Destatis 3 Federal Statistical Of
Page 11 and 12: Consumer Price Index Consumer price
Page 13 and 14: Exhibit 11 Division median net inco
Page 15 and 16: Exhibit 14 Population, purchase pow
Page 17 and 18: Exhibit 16 Life cycles of the vario
Page 19 and 20: Corporate tax rate to 15.8% In the
Page 21 and 22: (30%) 4 . The preference for hyperm
Page 23 and 24: Exhibit 20 Indexed space developmen
Page 25 and 26: Exhibit 23 Shopping centre pipeline
Page 27 and 28: y approximately 25 basis points by
Page 29 and 30: spread of DIY over shopping centres
Page 31: Rental levels Not only prime assets
Page 35 and 36: acquisition of new shopping centres
Page 37 and 38: Dawnay Day Treveria • Bloomberg t
Page 39 and 40: Exhibit 34 Portfolio overview BBI I
Page 41: Petercam Institutional Research and

DIRECT MARKET REPORT GERMAN RETAIL - Europe Real Estate

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