Six German Retail Properties - the Louis Group International ...

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key features properties germany Preamble: This venture is an investment opportunity in 6 multi-let retail properties well located in 6 key German towns/cities. The properties are all let to very strong covenants who are well-established national brands. Location Tenant Lease Expiry Annual Rent Rent Esc. Berlin Plus 30/10/2022 € 221,125 60% of CPI Braunfels Edeka 30/06/2013 € 156,455 50% of CPI Ellwangen Rewe 08/11/2021 € 330,000 60% of CPI Lorrach DM-Vermog HD-Schuhe 31/03/2019 31/12/2016 € 126,000 € 82,800 60% of CPI 60% of CPI KiK Textilien 31/03/2019 € 82,800 65% of CPI Mr D. Isbilir 31/07/2008 € 12,000 60% of CPI Radolfzell Takko 30/09/2012 € 99,990 67% of CPI Lidl 31/12/2011 € 147,395 60% of CPI HD-Schuhe 29/09/2016 €€ 58,959 60% of CPI Fristo 31/05/2011 € 48,777 60% of CPI Schwarz-Aubenwerbung € 1,020 Not applicable Stockach Edeka 30/06/2016 € 393,845 50% of CPI Aach Sulger 30/06/2016 € 40,014 50% of CPI Expenses: Landlord is liable for property insurances, rates and external repairs. Gross Rental: € 1,804,805 Total Expenses: € 120,600 (Estimated) Net Rental: € 1,684,205 (Estimated) Capitalization Value: € 22,970,000 (Property Costs) € 1,200,000 (Berlin Development Costs) € 2,530,000 (Acquisition Costs) € 600,000 (Cash Reserve) € 27,300,000 (Approx. Total) Bank Finance: €19,400,000 Bank Leverage on Property Costs: 80% Bank Leverage on Total Costs: 73% Finance Terms: Debt & Interest to be repaid over a 20 year amortization schedule. Interest rate @ 3 month Euribor plus 1% banker's margin plus cost of hedging instrument. Invest Company: Louis Group InvestCo Pink Ltd Managing Agent: Louis Group (IOM) Ltd Required Equity: €7,900,000 Available Shares: 790 @ €10,000 per share Investment Commencement: Investors to pay no later than 1 April 2007 Projected Return: In excess of 10% in Euros compounded per annum Risk Profile: Low Comparison: In excess of 5x current German inflation or 3x Euro bank deposit rate. Private Placement Memorandum Six German Retail Properties 2
the german property market Activity in the German commercial property market has recently been dominated by foreign investors. The basis for this foreign investment has been the low cost of finance, the relatively attractive yields compared with other European property markets and the improved macroeconomic conditions in Germany. In 2005, some € 20.55 billion was invested in German commercial property. The bulk of investment was seen outside the traditional property centres and came in the form of individual transactions and larger nationwide portfolios. In the light of signs which suggest that lettings markets are recovering, the transaction volume in the major office centres of Berlin, Dusseldorf, Frankfurt, Hamburg and Munich have enjoyed a positive trend throughout. The investment volume of € 20.55 billion represented a 33% advance on the previous year's result. Demand for commercial property is likely to remain high throughout 2007. Demand from foreign investors will properties germany continue to be strong for as long as the interest-rate differential provides scope for arbitrage deals. Financing is initiated to a growing extent by foreign institutions which have come to look at the German market as being more lucrative. In this context the value of property will depend to a much larger extent on the cash flow and the underlying financial engineering. In future, the location of a property will no longer be the sole deciding factor for an investment. While residential property prices in much of Europe have surged in recent years, the German residential market has been relatively unaffected. Office rentals in Germany have also lagged and the retail market is comparatively under-supplied in terms of space. The comparatively sluggish performance of recent years, coupled with the very attractive financing opportunities would suggest that significant capital uplift is imminent. Private Placement Memorandum Six German Retail Properties 3
Page 1 and 2: The purchase of Six German Retail P
Page 3: preamble properties germany Louis G
Page 7 and 8: convenant details Dm-Drogerie Mark
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Page 15 and 16: ental schedule Area Lease Lease Lea
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Six German Retail Properties - the Louis Group International ...

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