grundbesitz europa - Rreef

RREEF Investment GmbH 

grundbesitz europa 

Annual report 

September 30, 2011 

RREEF Real Estate 

Non-binding translation 

www.rreef.com

Contents 

At a glance 1 

Fund management report 2 

Overview: Yields, valuation, letting 14 

Information for the investor 18 

Summarized statement of assets 

as of September 30, 2011 22 

Notes on the summarized statement of assets 24 

Statement of assets as of September 30, 2011 

Part I: Index of properties 26 

List of purchases and sales recorded 

in the statement of assets as of September 30, 2011 32 


Part II: Holdings in money market instruments, 

investment fund units and securities 34 


Part III: Other assets, liabilities and accruals, 

additional notes 36 

Statement of income and expenses for the period 

from October 1, 2010, through September 30, 2011 38 

Notes on the statement of income and expenses 40 

Development of net asset value 

from October 1, 2010, through September 30, 2011 42 

Notes on the development of net asset value 43 

Development of the grundbesitz europa fund 44 

Development of yields 44 

Statement of expenditures as of September 30, 2011 46 

Notes on the statement of expenditures 46 

Statement of the independent auditor 47 

Tax information for the investor 48 

Executive bodies 64

At A glAnce 

Status as of September 30, 2011 

grundbesitz europa at a glance (Status as of September 30, 2011) 

Total net asset value Rc unit class Ic unit class 

Key figures as of the reporting date 

Net asset value EUR 3,285.8 million EUR 2,633.5 million EUR 652.3 million 

Total real estate assets (total market values) EUR 3,014.9 million EUR 2,416.4 million EUR 598.5 million 

– held directly EUR 2,900.2 million EUR 2,324.5 million EUR 575.7 million 

– held through special purpose vehicles EUR 114.7 million EUR 91.9 million EUR 22.8 million 

Total fund properties 39 

– held directly 35 

– held through minority shareholdings in special purpose vehicles 3 

– held through majority shareholdings in special purpose vehicles 

Occupancy rate (according to rental income) 

1 

– as of the reporting date 96.9% 

– average in the reporting period 

Changes in the reporting period 

Changes in the real estate portfolio 

96.8% 

Purchases 4 


– held through special purpose vehicles 0 

Properties transferred to the portfolio 5 



Sales 0 



Properties transferred from the portfolio 0 



Net cash outflow/inflow EUR 470.7 million EUR 414.8 million EUR 55.9 million 

Performance (October 1, 2010, through September 30, 2011; BVI method) 3.3% 3.8% 

Distribution per unit (January 12, 2012) EUR 1.40 EUR 1.60 

Tax-exempt portion for units held as private assets 

Net asset value per unit as of September 30, 2011 

76.1% 71.2% 

– Redemption price EUR 41.87 EUR 42.06 

– Issue price EUR 43.97 EUR 44.17 

ISIN DE 000 980 7008 DE 000 A0N DW81 

WKN 980 700 A0N DW8 

Note: Differences may arise in the totals as a result of the rounding of amounts and percentages in this report. 

Past performance is not a reliable indicator of future performance. 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 AT A gLANcE 1

Fund mAnAgement RepORt 

ladies and gentlemen, 

In this annual report, the management of RReeF Investment gmbH is pleased to inform you of the development of the openended 

real estate fund grundbesitz europa in the period from October 1, 2010, through September 30, 2011. 

Key events in the reporting period 

Despite turbulent economic times, the open-ended real estate fund grundbesitz europa made attractive property purchases on the 

European property markets. 

The transfer of five properties acquired in the business year expanded the real estate portfolio of grundbesitz europa to 39 fund proper- 

ties in the reporting period. The completion of the shopping center in Koblenz, whose development company “Forum mittelrhein” the 

fund also joined in the last business year, is still planned for the end of the third quarter of 2012. The topping-out ceremony for “Forum 

mittelrhein” was held on September 14, 2011. The property transfers led to further increased European diversification. As the fund’s first 

investment in central Europe, the two adjacent office buildings “Topaz” and “Nefryt” in Warsaw, Poland, were transferred to the fund’s 

portfolio in October 2010. Both properties were fully let as of the reporting date. The Dutch real estate portfolio was expanded through 

the transfer of ownership of the “Dellaertweg” office building in Leiden, also in October 2010. This property is occupied by a well-known 

long-term tenant and has the energy efficiency class A. A logistics property in Bordeaux, France, which is also fully let with a long-term 

lease, was acquired in July 2011. The “Focus Filtrowa” office building in Warsaw, Poland, which is also fully let to several financially sound 

tenants, was acquired at the end of the business year. 

These transactions reflect the active portfolio management approach, which alongside continuous property and lease management also 

aims to realize increases in value within the scope of a dynamic acquisitions and sales strategy. 

As of the reporting date, the real estate portfolio, measured in terms of market value, comprised a substantial proportion of properties 

in the United Kingdom at 26.4%, followed by properties in germany at 21.2%. Further regional focuses were France with 17.6% and 

Spain with 12.9%. The proportion of properties in Poland was expanded to 6.5%. The fund’s overall occupancy rate stood at 96.9% on 

September 30, 2011. The average occupancy rate over the entire reporting period was 96.8%. 

With a net cash inflow of approximately EUR 470.7 million in the business year reported here, the fund continued to record stable cash 

inflows. These mainly went into the Rc unit class. 

In the period from October 1, 2010, through September 30, 2011, the fund posted a gain of 3.3% in the Rc unit class and a gain of 3.8% 

in the Ic unit class (both according to the BVI method). grundbesitz europa also continues to occupy one of the top positions of the BVI’s 

(Bundesverband Investment und Asset management e.V.) performance statistics for open-ended real estate funds. 

Due in particular to the transfer of properties to the portfolio, real estate assets (based on market value) rose from EUR 2,614.7 million to 

EUR 3,014.9 million. Total net asset value increased in the business year from EUR 2,805.9 million to EUR 3,285.8 million, an increase of 

17.1%. The net asset value of the Ic unit class was EUR 652.3 million as of the reporting date. 

Liquid assets rose from EUR 813.1 million to EUR 1,034.5 million in the reporting period. This put the liquidity ratio at 31.5% as of 

September 30, 2011, based on net asset value. The share of borrowings for direct and indirect real estate investments increased to 

EUR 806.5 million, which represents a share of 26.8%. 

In the reporting period, the fund management saw no major risks that would necessitate special mention. Specific information on possible 

risks typically associated with the product is provided by topic in the individual chapters of the annual report. 

In the 2010/2011 business year, as in previous years, awards from various renowned rating agencies have confirmed the quality of 

grundbesitz europa. 

The “Investment Accounting and Valuation Act” (Investment-Rechnungslegungs- und Bewertungsverordnung, InvRBV) published on 

December 22, 2009, contains for the first time specific provisions to govern the recognition of accruals for deferred taxes. However, for 

grundbesitz europa, the full undiscounted amount for foreign taxes payable from the sale of foreign properties is – and always has been – 

set aside. The “Investment Accounting and Valuation Act” confirms this course of action. The fund is therefore now not obligated to 

create additional accruals. 

2 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 FUND mANAgEmENT REPORT

Outlook 

In the opinion of the fund management, provided the developments in net cash resources remain favorable, grundbesitz europa remains 

well positioned to take advantage of future market opportunities for purchases both in germany and in other European countries. The fund 

management will seek markets with differing performance trends and use opportunities in these markets for long-term investments, with 

a focus on first-class locations with stable incomes and the potential for increases in value. 

The fund management is convinced that the broadly diversified European real estate portfolio, the high quality of the properties and 

the high occupancy rate will continue to contribute to the stability of grundbesitz europa. The fund’s portfolio, which looks back on 

over 40 years of success, has diversified holdings in office, retail, hotel and logistics properties with a good regional allocation in seven 

European countries – the United Kingdom, France, Spain, Italy, germany, Poland and the Netherlands. 

To ensure the future development of grundbesitz europa, the fund management will seek to continue to expand fund assets in order to 

ensure the fund remains diversified geographically and by sector. In its further diversification, the fund management is supported by the 

international experience of RREEF, one of the world’s largest real estate investment firms. 

The “PEP” shopping center in munich-Neuperlach was sold from the real estate assets in November 2011 for a sales price of approximately 

EUR 408 million. The “PEP” was one of the oldest and largest properties in the fund. The sale had already been planned for a 

long time for portfolio reasons and took place at an optimal time. The transaction is one of the largest in germany in 2011 and is one of 

the most profitable in the retail segment. The fund management reports on the strategic sale in the semiannual and annual report for the 

2011/2012 business year. Further details are also available in the press release published by RREEF on its website. 

The Act to Increase Investor Protection and Improve the Functioning of the capital market (Anlegerschutz- und Funktionsverbesserungsgesetz) 

entered into force on April 8, 2011. This act also provides for new regulations for real estate investment funds in the future, which 

should enable the fund management, among other things, to manage funds for the benefit of investors, even in difficult market conditions. 

For information on this and on further new legal regulations, see “Information for the investor”. 

Yours sincerely, 

RREEF Investment gmbH 

Dr. georg Allendorf Thomas Schneider Ulrich Steinmetz 

Frankfurt/main, germany, November 30, 2011 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 FUND mANAgEmENT REPORT 3

Overall economic environment 

Following the high growth of 5.1% in 2010, a moderate perfor- 

mance of the global economy of approximately 3.7% is expected 

for 2011. But there are significant differences by region. The 

dynamic economies of china, India and Brazil will continue to be the 

main driving forces. In the developed countries, particularly Japan 

and the United States, the performance to date has been influenced 

by negative weather conditions, a high oil price and an impaired 

supply situation in the wake of the tsunami in Japan. In addition, 

political decisions have an increasingly large influence on economic 

activity. In Europe, voting in the member States on the European 

rescue package is impacting economic performance while in the 

United States conflicting political opinions are a determining factor. 

global economic growth of 3.5% is expected for 2012. 

At the start of 2011, Europe experienced a slight economic recovery, 

supported by positive growth in germany but also in Scandinavia 

and Eastern Europe. Since mid-2011, the growth expectations 

have become bleaker amid uncertainties surrounding the extent of 

the greek rescue package. This development in relation to creditworthiness 

spread to other countries such as Portugal and Italy. 

Deutsche Bank now expects the European gross domestic product 

Frankfurt/main, Hedderichstraße Hamburg, Unilever-Haus 

to grow by 1.5% for 2011. Performance, however, varies widely in 

the individual countries. On the one hand, the strongest economies 

of germany, Sweden, Finland and Poland will close out 2011 with 

growth rates of over 2.5% despite a weakening in the second half 

of the year, while on the other hand, the weakest countries are 

still in a recession. The situation in Southern Europe and Ireland is 

particularly tense due to the unbalanced government budgets. Any 

disorderly insolvencies of countries could have major impact on 

the entire European financial sector and thus also on the European 

economy. The consequences would be difficult to gauge and could 

even lead to the instability of the common currency. 

Deutsche Bank is expecting economic growth of just 0.4% in the 

eurozone for 2012. The expected slowing of the global economy, 

increasing commodity prices, as well as budget consolidation, are 

already dampening prospects. Even if the uncertainties in relation 

to greece could be rapidly overcome, the debt reduction of private 

and public budgets, as well as the appreciation of the euro, could 

cast a shadow on growth prospects in the short term. 

(Data sources: Deutsche Bank global markets Research, as of October 2011) 


Developments in the capital markets 

Yields on the capital markets fell slightly in the reporting period. 

Ten-year german government bonds yielded 2.29% at the beginning 

of the business year (October 1, 2010). By April 11, 2011, the 

yield rose to 3.49% and was 1.89% at the end of the business 

year. 

Yields on short-term government bonds also fell slightly. One-year 

german government bonds yielded 0.72% on October 1, 2010, initially 

rising to 1.52% in mid may 2011 before falling again to 0.39% 

on September 30, 2011. 

After the key interest rate of the European central Bank remained 

at the historically low level of 1.0% over a long period, it was raised 

again for the first time in this business year to initially 1.25% (in 

April 2011) and later to 1.50% (in July 2011). However, at the start 

of November 2011 – after the end of the reporting period – the 

European central Bank decided to reduce the key interest rate 

again to 1.25%. 

(Data source: Bloomberg) 

Developments in the real estate markets 

The differences in economic performance in Europe are also 

reflected in the situation in the real estate markets. most markets 

stabilized in 2011 but there are significant exceptions – both 

upward and downward. London benefited from its position as a 

global financial center. The positive global economy in the first half 

of 2011 was reflected in increasing demand on the London office 

market. The still low level of new construction in London city, as 

well as good demand, led to a higher turnover of high-quality office 

space. However, an increasing number of completions is expected 

in the coming years. construction activity in the West End continues 

to be moderate and the market has a broad demand spectrum. 

Of all European office markets, London will also have the highest 

madrid, Novotel 

rent increases in 2011. The office market in Paris recorded a slight 

decline in demand in the first half of 2011. This was due to the 

effects of the austerity package introduced by the French government 

as well as the weaker market prospects. The cBD (central 

Business District) of Paris profited from low supply as well as from 

a broad demand group. consequently, rents continued to increase 

here while there was a slight decline in the La Défense area. The 

office markets in germany experienced an earlier market recovery 

than other countries due to good fundamentals. In Frankfurt and 

Hamburg, rising demand along with a still low level of construction 

activity caused rents to rise. The office market in Warsaw experienced 

a strong recovery. A clear sign of a market recovery is the 

increased number of pre-lets. 

The countries that are most affected by the economic problems, 

namely greece, Ireland, Portugal and Spain, form a separate group. 

Rent declines continued to be recorded there during 2011. A stabilization 

of the markets is in sight in the medium term. New construction 

figures are still at a low level in many places in 2011, 

thereby setting the foundation for future shortage of space, which 

will, in turn, speed the growth in rents. 

The difficult economic climate is dampening sentiment in retail in 

Europe. Falling consumer spending due to rising unemployment 

and stagnating incomes are creating a difficult environment. In addition, 

the expansion drive of many companies has decreased and a 

local examination of the existing portfolio has taken place. Discount 

companies were expansive in the past few years and profited from 

the higher availability of space in good locations. Rents in shopping 

centers stagnated in most European countries in 2010. In Southern 

Europe, slight rent reductions are still expected in 2011, while a 

stabilization will take place in Western Europe. In germany, by contrast, 

retail continued to develop positively. Increasing income will 

lead to a rise in retail turnover of approximately 1.5% in 2011. The 

demand for retail space in good locations continues to be high and 

led to further rent increases. 

(Data sources: RREEF Research, PmA, JLL, as of October 2011) 

Valmontone, FOc Valmontone 


Developments in the 

real estate investment markets 

Investor interest in real estate is high. Even compared to other 

alternatives, this asset class offers attractive yields and the prospect 

of future increases in value. This is reflected in the higher 

transaction volumes, which increased by approximately 15% in 

Europe in the first half of 2011 compared with the previous year. 

The geographical structure is dominated by the United Kingdom 

ahead of germany and Scandinavia. However, an increase compared 

to the previous year was no longer recorded in the second 

quarter of 2011. Investor interest is, however, restricted almost 

exclusively to what is known as “core real estate”, namely properties 

with long-term tenants in good locations. 

In terms of sectors, retail properties, especially shopping centers, 

dominated the market ahead of office and logistics properties. In 

the first half of 2011, an increase of over 40% in the transaction 

volume among retail properties was observed. The largest investment 

deals took place in the United Kingdom and germany (centrO 

Oberhausen). Due to their long-term leases and low volatility of 

rents, shopping centers represent a low-risk investment. The low 

supply of shopping centers and the high purchase prices have led 

to an increasing number of joint ventures by investors. Due to the 

Amsterdam, Kalvertoren Amsterdam, Kalvertoren 

high demand for shopping centers, yields have fallen again, particularly 

in Western and central Europe. 

In the office sector, there was predominantly a moderate decline 

in real estate yields or a rise in real estate prices in the first half 

of 2011. Warsaw and Brussels were among the locations recording 

sharper declines in yields brought about by particularly strong 

investor demand. In London, yields stabilized following the strong 

price increase while there were moderate declines in Paris. In Ireland 

and Portugal, yields rose slightly again following an extended 

stabilization phase. This reflects the uncertainty about the fundamental 

data, as well as moderate investor demand. 

For the coming months, RREEF Research is expecting a stabilization 

or slight decline in yields in most markets. It is likely that this 

will particularly affect real estate in the top segment. For properties 

in secondary locations and of simpler quality, a reduction in the gap 

compared to the top of the market is expected. 

(Data sources: RREEF Research, RcA, as of October 2011) 


The grundbesitz europa investment strategy 

The open-ended real estate fund grundbesitz europa seeks, as was 

also the case in previous years, to achieve a positive annual yield – 

with stable annual distributions – while keeping value fluctuations 

as low as possible. Against this backdrop, the fund management 

tailors its transaction strategy in line with various Europe-wide real 

estate cycles, drawing on tax-advantaged concepts. The active 

portfolio management approach of grundbesitz europa aims to 

achieve dynamic optimization of the real estate portfolio by means 

of purchases and sales. Within the scope permitted by law, hedging 

and financial instruments are also used in order to enhance performance 

or to hedge against currency fluctuations. 

grundbesitz europa invests throughout Europe – predominantly 

in traditional commercial properties to be used for offices, retail, 

logistics and hotels, as well as in selected residential properties. 

The properties are selected based on sustained profitability as well 

as on diversification by location, size, use and tenant. The investment 

focus is on what is known as “core real estate”, namely 

properties let for the long term at the current market level in very 

good locations in established real estate markets with tenants of 

sound financial standing. Such properties are also of a high structural 

quality and are very well equipped. 

The future prospects of the fund depend both on the development 

of the European real estate markets and on the development of net 

cash resources. 

Paris, Euro-Athènes 

Net asset value and cash inflows/outflows 

cash inflows in the reporting period from October 1, 2010, 

through September 30, 2011, stood at EUR 830.0 million. This 

compared with cash outflows of EUR 359.3 million. This results 

in a net cash inflow of EUR 470.7 million. Total net asset value 

increased from EUR 2,805.9 million (as of September 30, 2010) to 

EUR 3,285.8 million (+17.1%) on September 30, 2011. 

The capital invested in the Ic unit class increased from 

EUR 594.9 million to EUR 652.3 million. This represented a 19.9% 

share of total net asset value as of the reporting date. 

Liquid assets reached a total of EUR 1,034.5 million while obligations 

arising from acquisition and construction contracts concluded, 

from dividend distributions for the completed business year and 

from short-term liabilities totaled EUR 387.9 million. In addition, as 

of September 30, 2011, there were loan obligations with residual 

terms of up to 24 months in the amount of EUR 437.6 million. 

Liquid assets are managed in accordance with a fixed investment 

process. Interest rate and price forecasts are subject to technical 

and fundamental analysis. In the reporting period, liquid assets 

were invested primarily in overnight money and time deposits as 

well as fixed-income securities such as mortgage bonds and corporate 

bonds from high-quality issuers. Futures were used occasionally 

for duration control. 

courbevoie, Le monge 


Fund performance 

During the past business year, the fund posted a gain of 3.3% 

in the Rc unit class and a gain of 3.8% in the Ic unit class (both 

according to the BVI method). 

The distribution in the Rc unit class on January 12, 2012 is 

EUR 1.40 per unit (an expected total of EUR 88.0 million), of 

which EUR 1.0652 (76.09%) is tax-free for units held as private 

assets. The total return on investment in the Rc unit class is 

EUR 1.35 per unit. Investors in the Ic unit class receive a distribution 

in the amount of EUR 1.60 per unit (an expected total of 

EUR 24.8 million). The total return on investment in the Ic unit 

class is EUR 1.54 per unit. Taxation on this distribution varies. 

The positive performance of the fund is illustrated in the following 

overview. 

Performance according to the BVI method (as of September 30, 2011) 

Rc unit Annual Ic unit Annual 

class average class average 

1 year 3.3% 3.8% 

2 years 6.4% 3.1% 7.4% 3.6% 

3 years 10.6% 3.4% 12.0% 3.8% 

5 years 34.6% 6.1% 

10 years 57.9% 4.7% 

15 years 96.4% 4.6% 

20 years 170.8% 5.1% 

25 years 275.2% 5.4% 

30 years 434.7% 5.7% 

35 years 652.3% 5.9% 

Since inception* 1,037.7% 6.1% 14.3% 3.9% 

* Fund inception: October 27, 1970, Ic unit class, April 1, 2008. 

calculation of performance is based on the time-weighted return 

and excludes issue surcharges. Individual costs such as fees, commissions 

and other charges have not been included in this presentation 

and would have an adverse impact on returns if they were 

included. 

Past performance is not a reliable indicator of future 

performance. 

The grundbesitz europa real estate portfolio 

As of the reporting date, the grundbesitz europa portfolio comprised 

39 properties, of which 35 are directly held properties 

(including one undeveloped site) with market values totaling 

EUR 2,900.2 million. It holds a 5% minority shareholding in one 

special purpose vehicle with three properties having a total market 

value of EUR 15.3 million and a 97.5% majority shareholding in one 

special purpose vehicle with one property having a market value of 

EUR 99.4 million. It holds a project development in a further majority 

shareholding of 94.9% in a special purpose vehicle with a book 

value of investment of EUR 77.5 million as of the reporting date. 

Investor structure overview 

* Investors who do not hold their units in accounts with the Deutsche Bank group. 

Basis: Fund assets 

Rc unit class investors 

with unknown level 

of investment* 

31.9% 


(investment amount 

up to EUR 1 million) 

26.6% 

This information is not included in the auditor‘s opinion. 

Ic unit class investors 

(minimum investment: 

EUR 1 million) 

19.9% 


(investment amount 

starting at 

EUR 1 million) 

21.7% 


Types of use of fund properties 

The share of office property in the grundbesitz europa portfolio 

continues to dominate in terms of both the rental area and the 

annual rental income fully let. Diversification in the fund is achieved 

through a high proportion of retail properties as well as hotels and 

logistics properties, which are represented here in the category 

“Industrial (storage, halls)”. 

Types of use of fund properties according to rental area 

and annual rental income fully let 

0.7% 

15.9% 

4.1% 

26.8% 

Others 

Parking 

Leisure 

Residential 

Industrial (storage, halls) 

Hotel 

Trade/gastronomy 

Office 

Geographical distribution of fund properties 

The 35 directly held properties, the four other properties held 

indirectly via two special purpose vehicles, as well as the project 

development, are broadly diversified from a regional perspective. 

Commercial age structure of fund properties 

Size classification of fund properties 

From a constructional point of view, grundbesitz europa has a young The five properties with a market value exceeding EUR 150 million 

real estate portfolio. In terms of total market value, the majority comprise one shopping center in munich, as well as four office 

(57.1%) of all fund properties are no more than 10 years old. 

properties with long-term leases in London, Paris and Valmontone, 

Italy. Sixteen properties have a market value of between 

EUR 25 million and EUR 100 million. 

Commercial age structure of fund properties 

(percentages according to market values) Size classification of fund properties 

(percentages according to market values) 

Up to 5 years 

15.1% 

5 to 10 years 

42.0% 

Rental area 

681,471 sqm 

1.3% 

0.5% 

50.7% 

2.5% 

0.3% 

2.3% 

29.4% 

Over 20 years 

18.6% 

15 to 20 years 

6.7% 

10 to 15 years 

17.6% 

0.8% 

0.1% 

4.6% 

Annual rental 

income fully let 

EUR 196 million 

60.0% 

Geographical distribution of fund properties 

(percentages according to market values) 

Netherlands 9.7% 

Spain 12.9% 

Poland 6.5% 

Over EUR 200 million 

28.2% 

EUR 150 to 200 million 

10.6% 

France 17.6% 

Italy 5.8% 

Up to EUR 10 million 

0.9% 

munich 12.3% 


3.4% EUR 25 to 50 million 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 FUND mANAgEmENT REPORT 9 

9.5% 


28.2% 

Rhine-main 5.4% 

Hamburg 3.3% 

Berlin 0.3% 

United Kingdom 26.4% 


19.2% 

Up to EUR 10 million EUR 27.2 million 0.9% 5 properties 

EUR 10 to 25 million EUR 103.5 million 3.4% 6 properties 





Over EUR 200 million EUR 850.2 million 28.2% 3 properties 

EUR 3,014.9 million 100.0% 39 properties

Property purchases and transfers 

to the portfolio 

The exact addresses of the following properties are available in the 

index of properties and the list of property purchases and sales. 

Purchase prices are expressed in euro; with foreign currencies, the 

exchange rate at the time of the transfer of ownership of the property 

is used. 

Five properties were purchased before the reporting period 

and added to the fund portfolio in the reporting period: 

Warsaw (PL) – Domaniewska 39B/39, 

“Topaz” and “Nefryt” 

The contract of sale for the two adjacent office buildings “Topaz” 

and “Nefryt” was signed on September 2, 2010. The properties, 

which were completed in 2006 and 2008 respectively, are located 

in the mokotów business park in the south, close to the “galeria 

mokotów”, one of the largest shopping centers in the city. 

The properties have a rentable area of 27,753 sqm on seven 

floors, are fully occupied and have a number of tenants. The purchase 

price is EUR 78.9 million. Ownership was transferred on 

October 29, 2010. 

Leiden (NL) – Dellaertweg 1, “Dellaertweg” 

The contract of sale for the office building in Leiden, 18 km northeast 

of The Hague, was signed on September 16, 2010. The office 

building, which was completed in September 2010 with energy 

efficiency class A, is under a long-term lease of 20 years to a single 

tenant. 

Leiden, Dellaertweg 

The rentable area of 31,072 sqm is spread over five ninestory 

building parts arranged in a comb structure. The purchase 


October 18, 2010. 

Cestas (F) – 4-6 rue Chemin Saint Raymond, 

“Logistics park” 

The contract of sale for the logistics property in a convenient location 

in the south west of Bordeaux was signed on July 19, 2011. 

The high-quality property, which comprises two building segments, 

was completed in 2007. 

The rentable area of 69,180 sqm is let to a long-term tenant of 

sound financial standing. The purchase price is EUR 41.3 million. 

Ownership was transferred on July 26, 2011. 

Warsaw (PL) – Aleja Armii Ludowej 26, 

“Focus Filtrowa” 

The office building, which was completed in 2000, is on the southern 

edge of the city center of Warsaw. Numerous banks, insurance 

companies and service companies are located in the neighborhood. 

The office building with a rentable area of 33,585 sqm across 

twelve stories is a high-quality class A property that is let to 

renowned companies. The purchase price is EUR 116.6 million. 

The contract of sale was signed and ownership was transferred on 

September 15, 2011. 

Warsaw, Topaz & Nefryt 


two properties were purchased in the reporting period and 

have not yet been added to the fund portfolio: 

Leipzig – Am Markt 11-15, “Marktgalerie” 

The contract of sale for the property, located in a top position in the 

pedestrian zone in Leipzig, was signed on August 5, 2011. It is predominantly 

used for retail. In addition, there are offices and some 

residential units on the top floors. 

The rentable area of 22,176 sqm of the high-quality property covers 

six floors above ground. There are 462 underground parking 

spaces in the four basement floors. The retail areas are let to longterm 

tenants of sound financial standing. The purchase price is 

EUR 83.3 million. Ownership was transferred on October 5, 2011. 

Paris (F) – 23 rue des Bateliers, “Sigma” 

The contract of sale for the office building situated in the Parisian 

area of Saint-Ouen was signed on September 15, 2011. The office 

building, which was completed in September 2009, is operated by 

the tenant under the “HQE Exploitation” sustainability label. 

The rentable area of 18,101 sqm of the high-quality property 

is spread out over seven floors above ground and is let 

to a long-term tenant of sound financial standing. The purchase 


November 24, 2011. 

cestas, Logistics park 

A development project has not yet been added to the portfolio: 

Koblenz (D) – Central Square “Forum Mittelrhein” 

On June 22, 2010, the fund signed a contract of sale for a limited 

partner interest of 94.9% in “Forum mittelrhein Koblenz gmbH & 

co. Kg.”. The “Forum mittelrhein” is a shopping center project 

consisting of 90 shops and a parking garage which is being developed 

by EcE Projektmanagement gmbH & co. Kg and STRABAg 

Projektentwicklung gmbH. 

The rentable area of 24,903 sqm and 749 parking spaces are spread 

out across six floors, with three floors for each type of use. The 

entry into the project development company took place on November 

18, 2010, and completion is scheduled for September 2012. 

The provisional purchase price of EUR 135.8 million will be 

adjusted one year after completion on the basis of rental income 

being generated at that time. Vacancy risks are thereby reduced. 

no properties were sold or removed from the fund portfolio in 

the reporting period. 

Warsaw, Focus Filtrowa 


Borrowed capital and currency risks 

The grundbesitz europa fund had loan liabilities amounting to 

approximately EUR 806 million as of the September 30, 2011, 

reporting date. currently, a total of 18 properties (including the 

three properties held via minority shareholdings) are financed with 

borrowed capital or mortgaged at various levels and for various 

terms. master loan agreements facilitating flexible financing of new 

purchases are in place with two banks. As of the reporting date, 

the debt ratio amounted to 26.8% based on total market values. 

Within the scope of borrowing for the account of the investment 

fund, assets in the amount of EUR 735.6 million belonging to the 

investment fund are encumbered with the rights of third parties. 

As of the reporting date, loans denominated in British pounds that 

translate into a total of approximately EUR 375 million exist for four 

English properties. Total borrowing in euro amounts to approximately 

EUR 431 million. This amount includes pro-rata financing of the 5% 

minority shareholding in Tiago german Properties gmbH & co. Kg in 

the amount of approximately EUR 11 million. 

Overview of borrowings 

grundbesitz europa Total borrowings % of the Total borrowings % of the Remaining loan terms as a % Average 

(direct) market value (indirect) via market value of the borrowing volume interest 

in EUR million of all fund holding companies of all fund Less than 1 to 2 2 to 5 5 to 10 rate 

properties in EUR million properties 1 year years years years in % 

EUR loans (outside germany) 420 13.9 12.5 1.6 26.4 11.6 4.38 

EUR loans (germany) 11 0.4 1.4 4.11 

gBP 375 12.4 40.1 6.4 4.66 

Total 795 26.4 11 0.4 12.5 43.1 32.8 11.6 

Overview of currency risks 

grundbesitz europa Open currency positions Exchange rate Open currency positions % of fund assets 

as of the reporting date as of the reporting date as of the reporting date per currency area 

in local currency (million) (EUR million) 

gBP 4.9 0.87159 5.6 0.2 

PLN 9.9 4.42076 2.2 0.1 

Total 7.8 0.3 


Hamburg, Unilever-Haus 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 13

OveRvIew: YIeldS, vAluAtIOn, lettIng 

Overview: Yields in 2010/2011 

country germany UK France Spain Nether- Italy Poland Total direct Total Total 

Key yield figures in % 

I. Real estate and holdings 

landsinvestments 

holdings 

gross income 4.8% 6.8% 5.7% 7.2% 6.7% 7.9% 5.5% 6.4% 1) 1.7% 3) 6.1% 5) 

Property management expenses -0.5% -0.1% -1.0% -1.7% -1.1% -0.6% -3.6% -0.8% 1) 0.0% 3) -0.8% 5) 

Net income 4.3% 6.6% 4.7% 5.5% 5.6% 7.3% 2.0% 5.6% 1) 1.7% 3) 5.3% 5) 

changes in value 8.4% -0.9% 0.2% -4.6% -0.2% 0.7% -0.3% 1.2% 1) 2.1% 3) 1.2% 5) 

Foreign profits tax 0.0% -1.2% -0.2% -0.5% -1.4% -1.2% -0.4% -0.7% 1) 0.0% 3) -0.6% 5) 

Foreign deferred taxes 0.0% 0.0% -0.9% 0.3% -0.8% -1.0% 0.0% -0.3% 1) 0.0% 3) -0.2% 5) 

Earnings before loan charges 12.7% 4.6% 3.8% 0.7% 3.2% 5.8% 1.3% 5.8% 1) 3.8% 3) 5.7% 5) 

Earnings after loan charges 12.5% 3.7% 3.7% -0.8% 3.1% 6.4% -0.4% 6.1% 2) 3.8% 4) 5.9% 6) 

Total return from real estate 

and holdings 

5.9% 6) 

currency effects 0.0% -0.4% 0.0% 0.0% 0.0% 0.0% 0.0% -0.4% 2) 0.0% 4) -0.4% 6) 

Total return 12.5% 3.3% 3.7% -0.8% 3.1% 6.4% -0.4% 5.7% 2) 3.8% 4) 5.5% 6) 

II. Liquidity 1.2% 7) 

III. Total fund return before fund costs 4.2% 8) 

IV. Total yield for the RC unit class following deduction of fund costs (BVI method) 3.3% 8) 

Total yield for the IC unit class following deduction of fund costs (BVI method) 3.8% 8) 

Information on capital 

(average figures in EUR million) 

Total 

Directly held properties 2,830.2 

Properties held through holdings 114.8 

Total properties 2,945.0 

Liquidity 891.9 

Total borrowings 716.19) Fund assets 3,006.0 

1) In relation to average real estate assets of direct investments. 

2) In relation to average equity capital invested in properties. 

3) In relation to average real estate assets of the special purpose vehicles. 

4) In relation to average equity capital invested in special purpose vehicles including shareholder loans. 

5) In relation to average real estate assets of the direct investments and special purpose vehicles. 

6) In relation to average equity capital invested in properties and special purpose vehicles including shareholder loans. 

7) In relation to average liquid assets. 

8) In relation to average net asset value. 

9) Without shareholder loans. 

14 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 OVERVIEW: YIELDS, VALUATION, LETTINg

Overview: Changes in value in 2010/2011 

country germany UK France Poland Spain Nether- Italy Total direct Total Total 

Information on changes in value1) lands invest- holdings 

(as of reporting date in EUR million) 

Appraiser-assessed market value 

ments 

of portfolio 

Appraiser-assessed rent 

639.1 794.9 529.9 195.5 388.4 292.2 174.9 2,900.2 114.7 3,014.9 

of portfolio 

Positive changes in value 

30.8 50.3 32.7 13.7 27.6 18.8 14.3 182.1 6.3 188.3 

as per expert appraisal 

Other positive changes 

49.8 13.8 3.2 0.0 0.3 2.1 9.3 78.4 0.0 78.4 

in value 

Negative changes in value 

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 


Other negative changes 

-0.7 -1.2 -2.4 0.0 -10.5 0.0 -0.5 -15.3 0.0 -15.3 

in value 

Total changes in value 

-1.8 -1.3 0.0 -0.2 0.0 -0.2 -0.2 -3.7 0.0 -3.7 


Total other changes 

49.1 12.6 0.8 0.0 -10.2 2.1 8.8 63.1 0.0 63.1 

in value -1.8 -1.3 0.0 -0.2 0.0 -0.2 -0.2 -3.7 0.0 -3.7 

1) This overview includes only data from properties included in the investment fund as of the reporting date. Properties sold during the business year are not taken 

into account here. 

Notes on grundbesitz europa fund profits 

The gross return totaling 6.1% results from the rental income from 

directly held fund properties and from fund properties held through 

holdings. After deduction of property management costs, the 

resulting total net return amounted to 5.3%. Taking into account 

changes in value, foreign profits tax and foreign deferred taxes, the 

total return before loan charges was 5.7%. Following the application 

of borrowing costs and based on real estate assets financed 

by equity capital, the total return after loan charges was 5.9%. 

Directly held properties in germany and abroad contribute gross 

income of 6.4% to the total return, which is a net income of 5.6%. 

changes in value due to appraiser revaluations of direct investments 

totaled +1.2% in relation to average real estate assets, 

particularly due to the upward revaluation of the “PEP” shopping 

center in munich. 

Three german properties are held by a special purpose vehicle in 

which the investment fund has a 5% interest. The investment fund 

has a majority shareholding of 97.5% (shareholding under company 

law is 94.99%) in another property in Hamburg. The gross and net 

earnings from these special purpose vehicles amount to 1.7% and 

result from the partial distribution of profit generated during the 

reporting period. changes in value of +2.1% comprise appraiser valuation 

changes in value and retained profits. The total return from 

special purpose vehicles (before loan charges) amounted to 3.8%. 

Exchange rate fluctuations resulted in currency effects of -0.4%, 

taking into account the fund’s borrowings and currency forward 

agreements. 

The liquidity yield of 1.2% reflects the interest rate level during the 

business year. On average, the share of liquid assets in the overall 

net asset value stood at around 30%. 

The total fund return for the business year before deduction of fund 

costs was 4.2%. After deduction of fund costs, the total return for 

the Rc unit class was 3.3% and the total return for the Ic unit class 

was 3.8% (both according to the BVI method). 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 OVERVIEW: YIELDS, VALUATION, LETTINg 15

Leasing information as of September 30, 2011 

country germany UK France Poland Spain Nether- Italy Total direct Total share- Total 

lands invest- holdings 

ments (in Germany) 

Rental properties (number) 31) 5 7 3 9 5 2 341) 4 381) Rental properties 

(market value in EUR million) 

Types of use according 

to rental income fully let 

524.4 794.9 529.9 195.5 388.4 292.2 174.9 2,900.2 114.7 3,014.9 

2) 

Office 23.6% 94.3% 73.5% 87.8% 19.6% 60.5% 11.6% 59.1% 87.1% 60.0% 

Trade/gastronomy 68.5% 2.8% 9.3% 0.5% 56.2% 29.6% 88.4% 30.3% 0.0% 29.4% 

Hotel 0.0% 0.0% 0.0% 0.0% 16.2% 0.0% 0.0% 2.4% 0.0% 2.3% 

Industrial (storage, halls) 4.8% 2.2% 13.2% 0.3% 5.3% 1.6% 0.0% 4.7% 2.6% 4.6% 

Residential 1.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.0% 0.3% 

Leisure 0.0% 0.0% 0.0% 0.9% 0.2% 0.0% 0.0% 0.1% 0.0% 0.1% 

Parking 0.4% 0.4% 3.2% 6.6% 1.9% 8.1% 0.0% 2.3% 9.1% 2.5% 

Other 0.9% 0.3% 0.8% 3.9% 0.6% 0.2% 0.0% 0.8% 1.2% 0.8% 

Total 

Vacancy 

(as of reporting date) 

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 

Office 0.0% 1.5% 1.0% 0.9% 0.5% 0.0% 0.0% 1.1% 0.0% 1.1% 

Trade/gastronomy 0.7% 0.0% 0.4% 0.0% 1.2% 1.3% 0.0% 1.5% 0.0% 1.5% 

Hotel 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

Industrial (storage, halls) 0.1% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1% 

Residential 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

Leisure 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

Parking 0.0% 0.0% 0.6% 0.0% 0.1% 0.8% 0.0% 0.3% 0.0% 0.3% 

Other 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.1% 0.0% 0.1% 

Occupancy rate 

Expiring tenancy 

agreements 

99.0% 98.5% 97.9% 99.1% 98.2% 97.9% 100.0% 96.9% 100.0% 96.9% 

3) 

through Dec. 31, 2011 1.6% 0.0% 1.2% 11.3% 16.0% 1.7% 0.0% 3.6% 0.0% 3.5% 

2012 0.5% 1.7% 19.7% 31.6% 10.6% 16.1% 11.6% 10.3% 0.0% 10.0% 

2013 4.0% 1.4% 9.6% 12.4% 15.4% 0.6% 0.0% 5.9% 0.0% 5.7% 

2014 6.6% 23.3% 43.7% 15.8% 10.1% 0.7% 88.4% 24.4% 0.0% 23.6% 

2015 1.9% 1.5% 4.2% 15.0% 5.8% 0.8% 0.0% 3.5% 0.0% 3.4% 

2016 6.6% 0.0% 11.0% 0.2% 8.4% 2.1% 0.0% 4.6% 0.0% 4.5% 

2017 27.1% 0.2% 0.0% 12.6% 1.4% 12.0% 0.0% 7.6% 0.0% 7.4% 

2018 4.4% 16.2% 9.6% 0.1% 1.1% 6.6% 0.0% 8.1% 0.0% 7.8% 

2019 14.1% 0.5% 0.0% 0.0% 0.0% 1.5% 0.0% 3.0% 0.0% 2.9% 

2020 10.8% 0.9% 0.8% 0.0% 10.6% 0.0% 0.0% 3.9% 0.0% 3.7% 

from 2021 22.3% 54.5% 0.0% 1.1% 20.4% 57.9% 0.0% 25.2% 100.0% 27.7% 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 

1) Not including undeveloped site in munich. 

2) Including contractual rent, rent-free periods and measured vacancy. 

3) On exercising special termination rights. 

16 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 OVERVIEW: YIELDS, VALUATION, LETTINg

Occupancy situation 

Expiring tenancy agreements, as measured by current contractual 

rent, are illustrated in the charts. In respect of leases with special 

termination rights, the earliest possible ending of the rental agreement 

is assumed. Presenting the data without taking into account 

special termination rights illustrates how expiring leases work in 

favor of the contractually secured rental income of the fund. 

Expiring tenancy agreements 

(as measured by current contractual rent of the fund in %) 

On exercising special termination rights 

50% 

40% 

30% 

20% 

10% 

3.5% 

through 

Dec. 31, 2011 

10.0% 

5.7% 

23.6% 

3.4% 

4.5% 

7.4% 

7.8% 

2.9% 

3.7% 

27.7% 

2012 2013 2014 2015 2016 2017 2018 2019 2020 from 

through 

2021 Dec. 31, 2011 

Tenant structure of the portfolio and the ten largest individual tenants 

(based on actual rental income in %) 

Top 10 tenants 

(% share) 

Other 

51.8% 

Top 10 

48.2% 

Tenant structure (basis: Contractual rent of the fund (in %) – by sector 

consumer goods and retail 29.5% 

Banks and financial service providers 15.9% 

corporate/Legal/Tax consulting 13.4% 

Insurance companies 11.1% 

Hotel/gastronomy 3.9% 

Utilities and telecommunications 3.6% 

construction 2.3% 

Technology and software 1.7% 

chemical/Pharmaceutical industry 1.8% 

Residential 6.4% 

Automotive and transportation 0.3% 

Other sectors 10.2% 

Total 100.0% 

Without exercising special termination rights 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 OVERVIEW: YIELDS, VALUATION, LETTINg 17 

50% 

40% 

30% 

20% 

10% 

2.7% 

8.1% 

3.3% 

Acmea Huisvesting B.V. 

4.0% 

13.8% 

3.0% 

2.0% 

6.7% 

4.9% 

5.3% 

4.5% 

45.7% 

2012 2013 2014 2015 2016 2017 2018 2019 2020 from 

2021 

Unilever Deutschland gmbH 

2.8% 

Freshfi elds Bruckhaus Deringer 

3.2% 

Nabarro Nathanson 

4.0% 

Freshfi elds Service company 

4.5% 

Fashion District 

6.0% 

Accor Hoteles Espana S.A. 

2.5% 

marsh & mcLennan 

8.9% 

La casden 

Banque Populaire 

6.3% 

HSBc Bank plc 

6.1%

InFORmAtIOn FOR tHe InveStOR 

Important notice 

Fund units are purchased on the basis of the current sales prospectus 

and “key investor document” in combination with the latest 

audited annual report and any semiannual report that is more 

recent than the latest annual report. 

Information on the unit classes 

The real estate investment fund grundbesitz europa encompasses 

two unit classes: 

grundbesitz europa Rc WKN 980 700 ISIN DE 000 980 7008 

grundbesitz europa Ic WKN A0N DW8 ISIN DE 000 A0N DW81 

In particular, the purchase of units in the Ic unit class is subject to 

a specified minimum investment amount. moreover, the two unit 

classes also differ with respect to the issue surcharge, the redemption 

fee and management fees. The individual features of the two 

unit classes are illustrated in the following overview. 

Subscription slip procedure for the IC unit class 

At present, Ic class units may only be acquired using a subscription 

slip. Through this subscription slip and for the duration of the 

period specified therein, the investor undertakes to place part or 

all of the subscription amount to which the said investor has committed 

at the disposal of the company upon written request by the 

company, which it may effect at any time. The company will call 

the committed funds from investors as needed (cash on demand) 

according to a procedure to be agreed in the subscription slip. The 

company is, however, also entitled to call the entire subscription 

amount upon subscription or directly following subscription. The 

Overview of the unit classes 

minimum investment amount 

(per subscription slip) 

Issue surcharge Issue surcharge 6% 

(currently 5%) 

minimum investment amount (per subscription slip) for an investment 

in Ic class units is EUR 1 million. Details of the subscription 

slip procedure are provided in the “Notes on the subscription and 

purchase of units”. Those notes, as well as the subscription slip 

itself, can be obtained from the company together with the sales 

prospectus. 

Redemption of units in the IC unit class 

Redemption of units in the Ic unit class may only be effected 

through the submission of redemption orders to RREEF Investment 

gmbH. 

Legal notices 

Future new regulations for open-ended real estate funds 

as a result of the Act to Increase Investor Protection 

and Improve the Functioning of the Capital Market 

The Act to Increase Investor Protection and Improve the Functioning 

of the capital market (Anlegerschutz- und Funktionsverbesserungsgesetz) 

entered into force on April 8, 2011. As a result 

of this act, new regulations for open-ended real estate funds will 

be introduced in the future. The contractual terms of grundbesitz 

europa must be adapted to these new legal requirements by 

January 1, 2013, at the latest. 

From the time of the adaptation of the contractual terms (by 

January 1, 2013, at the latest), the following main new regulations 

will apply for grundbesitz europa: 

• Even after the adaptation of the contractual terms, investors may 

continue to redeem units with a total value of up to EUR 30,000 

per calendar half-year on each day of trading and without restrictions, 

particularly without having to observe notice periods. 

Continued on page 19 

Rc unit class Ic unit class 

No minimum investment minimum investment 

EUR 1 million 

Issue surcharge 6% 

(currently 5%) 

No issue surcharge applies when in compliance 

with the subscription slip procedure described 

hereinafter and in the sales prospectus 

Redemption fee No redemption fee Redemption fee 10% 

No redemption fee applies when in compliance 

with the conditions detailed in the sales prospectus 

management fee 1% p.a. pro rata based on net asset value 0.55% p.a. pro rata in relation to real estate assets; 

0.05% p.a. pro rata in relation to liquid assets 

Performance-based fee 0.05% p.a. of average net asset value 

when performance ratio ≥ 4.1% and ≤ 6%; 

0.1% p. a. of average net asset value 

when performance ratio > 6% 

WKN WKN 980 700 WKN A0N DW8 

ISIN ISIN DE 000 980 7008 ISIN DE 000 A0N DW81 

15%, based on profit when performance ratio > 5%; 

20%, based on profit when performance ratio > 7% 

(each including any applicable selling fees) 

18 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 INFORmATION FOR THE INVESTOR

• For unit redemptions that exceed the amount of EUR 30,000 per 

calendar half-year, investors must adhere to the following legally 

prescribed notice periods: 

– Redemption notice period: From the time of the adaptation of 

the contractual terms, investors who exceed the amount of 

EUR 30,000 per calendar half-year must provide irrevocable 

written notice of unit redemptions 12 months in advance. 

– minimum holding period: Investors who only acquire units 

after the adaptation (to take place by January 1, 2013, at the 

latest) of the contractual terms (so-called “new investors”) 

may only redeem these units, if they exceed an amount of 

EUR 30,000, after a minimum holding period of 24 months has 

expired. A new investor may give notice of a redemption during 

the minimum holding period of 24 months while complying 

with the twelve-month notice period, which means that new 

investors can redeem their units after 24 months at the latest. 

If an investor had already acquired units before the adaptation 

of the contractual terms to take place by January 1, 2013, at 

the latest (so-called “existing investor”), this minimum holding 

period of 24 months does not apply. 

• The assets of grundbesitz europa – based on continued avail 

ability each trading day – shall be valued quarterly by the independent 

appraisers of the open-ended real estate fund. 

Due to the new legal regulations in the Investor Protection and capital 

markets Improvement Act, a new borrowing limit will also apply 

for open-ended real estate funds and will apply for grundbesitz 

europa by January 1, 2015, at the latest. For grundbesitz europa, 

this means that loans may only be taken out up to a maximum of 

30% (instead of 50% currently) of the market value of the properties 

in the investment fund. 

Introduction of the “key investor document” 

Due to new legal regulations in the Investment Act that have their 

basis in the European UcITs IV Directive (“UcITS”= Undertakings 

for Collective Investment in Transferable Securities), since July 1, 

2011, the company must provide persons interested in acquiring 

units of funds managed by it and investors with the “key investor 

document” (“KID”) in addition to the detailed sales prospectus. 

The content, format and layout of the key investor document are 

stipulated by the legislator or the authority issuing the regulation. 

It is designed to enable investors to compare the individual 

investment fund products on offer. The key investor document 

for grundbesitz europa is available to download on the company’s 

website www.rreef.com. 

Amendment of the contractual terms 

The company announced various amendments to the contractual 

terms in the electronic Federal gazette (Bundesanzeiger) and on 

its website: 

a) Amendment of the general contractual terms (gcT) 

– Headquarters moved from Eschborn to Frankfurt/main effective 

July 1, 2011 

– Amendment of article 6 of the gcT effective February 1, 2011 

b) Amendment of the special contractual terms (ScT) 

– Amendment of the cost regulation in the Rc and Ic unit 

classes effective January 1, 2012 

– The rights of investors shall be exclusively evidenced in 

global certificates instead of in physical securities effective 

February 1, 2011 (see below) 

Changeover to global certificates 

Since February 1, 2011, the company has ceased issuing physical 

securities (unit certificates) for grundbesitz europa. From this 

date, the rights of the investors shall instead be evidenced exclusively 

in global certificates that are kept at a central depository 

for securities. As of the aforementioned date, investors are therefore 

no longer entitled to receive physical delivery of individual 

unit certificates. Unit certificates already issued will continue to 

retain their validity. This also applies for unit certificates undersigned 

by Deutsche Bank Ag as custodian bank and/or issued in 

the name of grundbesitz-invest. The company amended article 10 

of the ScT accordingly. The amendment, which was approved 

by the Federal Financial Supervisory Authority (BaFin) in its letter 

of September 23, 2010, was announced in good time before 

February 1, 2011 in the electronic Federal gazette (Bundesanzeiger) 

and on the company’s website. Since February 1, 2011, 

the company is redeeming returned unit certificates. 

New sales prospectus 

A new sales prospectus that has been available to investors 

since July 1, 2011, contains the new regulations of the Investment 

Act that came into force on July 1, 2011, on the basis of the 

UcITS IV Implementation Act. The changes concern in particular 

regulations for the purpose of improving investor information. The 

aforementioned new regulations of the Investor Protection and 

capital markets Improvement Act (Anlegerschutz- und Funktionsverbesserungsgesetz), 

which will apply after the adaptation of the 

contractual terms yet to be carried out, were also included in the 

new sales prospectus along with the amendments due to the modified 

contractual terms (see above). 

Establishment of an Ombudsman for investment funds 

An Ombudsman for investment funds was established at Bundesverband 

Investment und Asset management e.V. (BVI) effective 

September 1, 2011. The establishment of the Ombudsman was 

possible after the Federal ministry of Finance approved the rules 

of procedure for the out-of-court settlement of consumer disputes 

on August 19, 2011. In future, investors in investment funds can 

present their complaints directly to the independent Ombudsman 

within the scope of a request for mediation. The Ombudsman of 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 INFORmATION FOR THE INVESTOR 19

Legal notices (cont.) 

the BVI is responsible for mediation tasks for its member companies 

and for other companies that have subscribed to this mediation 

procedure. RREEF Investment gmbH has already declared its 

participation in the mediation procedure of the Ombudsman. The 

Office of the Ombudsman is located in Berlin. Further information 

on the Ombudsman and the mediation procedure is available at: 

www.ombudsstelle-investmentfonds.de. 

Tax notes 

Deferred taxes 

capital gains on the disposal of foreign real estate are generally 

subject to taxation in the respective foreign country. Where the 

actual sale of the property has not yet taken place, this tax obligation 

will not be incurred until some future date. consequently, the 

question arises as to how this future tax obligation should be taken 

into account when determining the net asset value per unit. 

The RREEF Investment gmbH management has in the past 

already been of the opinion that, in determining the net asset 

value per unit, the tax consequences of fluctuations in value 

must be accounted for using accruals for deferred taxes. Therefore, 

the full undiscounted amount for foreign taxes payable 

upon the sale of foreign properties is – and always has been – 

set aside in the respective year of the change in value as determined 

by expert appraisal, while taking into account any changes 

in the general tax regulations of the relevant foreign country. The 

“Investment Accounting and Valuation Act” (InvRBV) published 

on December 22, 2009, now contains specific provisions (article 

27 (2), no. 2 InvRBV) to govern the recognition of such accruals 

for deferred taxes. 

Deferred tax provisions are measured based on the fact that, in 

almost every country in which the fund is represented, upon the 

sale of a property, tax is payable on the difference between the 

sales price and the book value less annual foreign depreciation. 

The respective anticipated incidental selling costs are also taken 

into account. The rate of tax for the specific country is applied to 

the calculated level of capital gains. A deferred tax provision is created 

for the resulting “notional” tax burden. 

According to the InvRBV, accruals for deferred taxes must also 

be recognized in anticipation of the sale of shares of special purpose 

vehicles, insofar as these capital gains are subject to tax in 

the foreign country. In this respect, the RREEF Investment gmbH 

management considers the investment either in terms of a sale 

at the level of the special purpose vehicle or in terms of a sale of 

the shareholding. In the former case, deferred taxes are calculated 

at the level of the special purpose vehicle and recognized at the 

level of the real estate fund. In the latter case, the capital gains 

on the sale of special purpose vehicle shares are calculated as the 

difference between the acquisition costs for the shareholding and 

the “market value” of the shareholding, taking into account any 

incidental selling costs. In this respect, the “market value” of the 

shareholding takes into account the change in value of property 

held by the holding company. The rate of tax for the specific country 

is applied to the calculated level of capital gains. A deferred tax 

provision is created for the resulting “notional” tax burden. 

Changes in tax law 

Since January 1, 2004, the Investment Tax Act (Investmentsteuergesetz, 

InvStg) has governed the tax treatment of german 

and non-german investment funds. Since the beginning of the 

business year through April 1, 2004, the provisions of the InvStg 

have applied to grundbesitz europa in full. By administrative 

instruction in the form of the introductory statement on the Investment 

Tax Act of June 2, 2005, further specifics have been established 

regarding the application of the InvStg. The revision of this 

introductory statement took effect on August 18, 2009. The effect 

which this revision of the introductory statement (Federal ministry 

of Finance (BmF) letter dated August 18, 2009) has at the investor 

level is explained in the Tax notes section. 

Government audits 

Pursuant to article 11 (3) InvStg, with an audit order dated 

October 20, 2010, the local tax authority ordered a government 

tax audit of the Rc unit class for the business year ending 

on September 30, 2005, through the business year ending on 

September 30, 2008. For the Ic unit class, the audit order was for 

the business year ending September 30, 2008. The external tax 

audit is still ongoing. 

20 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 INFORmATION FOR THE INVESTOR

The Hague, malietoren 


SummARIzed StAtement OF ASSetS AS OF SeptembeR 30, 2011 

Summarized statement of assets as of September 30, 2011 

Total net asset value 

I. Properties 1. Business properties 2,896,787,405.48 

thereof in foreign currency 794,880,620.48 

EUR EUR EUR Share of 

net asset 

value 

2. Undeveloped sites 3,420,000.00 2,900,207,405.48 88.3% 

thereof in foreign currency 0.00 

(total in foreign currency 794,880,620.48) 

II. Holdings in special 1. majority shareholdings 182,470,996.72 

purpose vehicles 2. minority shareholdings 2,220,997.59 184,691,994.31 5.6% 

(total in foreign currency 0.00) 

III. Liquid assets 1. cash at bank 733,329,489.17 


2. Securities 301,156,086.76 1,034,485,575.93 31.5% 



IV. Other assets 1. Receivables from property management 37,164,631.56 


2. Receivables from special purpose vehicles 0.00 


3. Interest receivable 7,783,797.68 


4. Incidental acquisition costs 

– on properties 15,654,336.83 

– on holdings in special purpose vehicles 987,644.26 


5. Other amounts 212,301,013.45 273,891,423.78 8.3% 



Total 4,393,276,399.50 133.7% 

V. Liabilities from 1. Loans 795,632,115.93 


2. Property purchases/sales and building projects 2,500.00 


3. Property management 59,186,447.57 


4. Other liabilities 138,709,591.50 993,530,655.00 30.2% 



VI. Accruals 113,968,683.13 113,968,683.13 3.5% 



Total 1,107,499,338.13 33.7% 

VII. Net asset value 

Net asset value per unit 

3,285,777,061.37 100.0% 

Units in circulation 78,395,566 

Exchange rate on September 29, 2011 

EUR 1 = gBP 0.87159 

EUR 1 = PLN 4.42076 

22 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS


EUR EUR EUR EUR 

2,321,715,091.30 575,072,314.18 

2,741,059.15 2,324,456,150.45 678,940.85 575,751,255.03 

146,246,723.53 36,224,273.19 

1,780,083.55 148,026,807.08 440,914.04 36,665,187.23 

587,748,392.81 145,581,096.36 

241,370,364.34 829,118,757.15 59,785,722.42 205,366,818.78 

29,786,682.24 7,377,949.32 

0.00 0.00 

6,238,552.58 1,545,245.10 

12,546,626.65 3,107,710.18 

791,576.41 196,067.85 

170,154,863.93 219,518,301.81 42,146,149.52 54,373,121.97 

3,521,120,016.49 872,156,383.01 

637,682,657.41 157,949,458.52 

2,003.70 496.30 

47,436,711.53 11,749,736.04 

111,172,863.87 796,294,236.51 27,536,727.63 197,236,418.49 

91,343,538.38 91,343,538.38 22,625,144.75 22,625,144.75 

887,637,774.89 219,861,563.24 

2,633,482,241.60 652,294,819.77 

41.87 42.06 

62,888,898 15,506,668 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS 23

nOteS On tHe SummARIzed StAtement OF ASSetS 

The fund has two unit classes named “Rc” and “Ic”. The summarized 

statement of assets contains detailed information about the 

allocation of the assets to the respective unit class. The following 

notes refer to total net asset value, allocated pro rata to the unit 

classes. 

In the reporting period from October 1, 2010, through 

September 30, 2011, the net asset value increased by 

EUR 479.9 million to EUR 3,285.8 million. The investment 

fund recorded a net cash inflow of EUR 470.7 million. Overall, 

11,377,661 units were issued; the number of units in circulation 

thus increased to 78,395,566. 

calculated on this basis, the value per unit (= redemption price) as 

at the reporting date of September 30, 2011, was EUR 41.87 for 

the Rc unit class and EUR 42.06 for the Ic unit class. 

Real estate assets increased in the reporting period by 

EUR 400.9 million to EUR 2,900.2 million. The increase includes 

the purchase of five properties. 

The total value of leasehold sites amounted to EUR 1,101.8 million 

(see index of properties). 

The value of the holdings in special purpose vehicles increased 

in the reporting period from EUR 104.5 million to EUR 184.7 million. 

The change is primarily the result of the purchase of shares in a 

holding company that is carrying out a project development. 

During the current business year, liquid assets increased by 

EUR 221.4 million to EUR 1,034.5 million. 

The level of cash at bank invested in overnight money and time 

deposits increased from EUR 350 million to EUR 600 million. 

Holdings in fixed-interest securities, which are managed inter- 

nally, amounted to EUR 301.2 million as of the reporting date. The 

effective rate of interest as of the September 30, 2011, reporting 

date was 1.92%; the residual term to maturity of the bond portfolio 

was 1.59 years. Details of the security holdings are provided in 

the overview “Statement of assets, part II”. Liquid assets available 

as of the reporting date of September 30, 2011, will decrease by 

EUR 387.9 million on account of the future application of dedicated 

funds for distributions and short-term liabilities in relation to property 

management. In addition, as of September 30, 2011, there 

were loan obligations with residual terms of up to 24 months in the 

amount of EUR 437.6 million. 

EUR 164.3 million is held as the minimum liquidity level required 

by law. 

Other assets increased by EUR 13.0 million to a total of 

EUR 273.9 million. The amounts reported as “Receivables from 

property management” relate to outsourced allocable operating 

costs of EUR 21.4 million and rent receivables amounting to 

EUR 15.8 million. Tenants’ advance payments on operating costs 

of EUR 19.3 million are included in item V. 3. “Liabilities from property 

management”. “Interest receivable” comprises deferred interest 

on overnight money, interest on time deposits and interest on 

securities. Incidental acquisition costs amortized on a straight-line 

basis at 20% p.a. increased by EUR 3.4 million during the current 

business year. The amount reported includes EUR 7.4 million in incidental 

acquisition costs relating to five property purchases and one 

purchase of a shareholding, and to additional incidental acquisition 

costs arising from previous acquisitions. “Other amounts” primarily 

consist of capitalized costs for construction work (EUR 0.2 million), 

claims for reimbursement of taxes (EUR 26.2 million), payments for 

pending property purchases (EUR 5.2 million) and receivables from 

currency forward agreements (EUR 178.6 million). 

Foreign items relating to properties, other assets and liquid 

assets of EUR 2,521.4 million break down as follows: United 

Kingdom EUR 838.9 million, Netherlands EUR 302.8 million, 

Spain EUR 418.8 million, France EUR 557.5 million, Italy 

EUR 176.0 million, and Poland EUR 227.4 million. 

Overall, liabilities total EUR 993.5 million against a total of 

EUR 798.4 million on September 30, 2010. At EUR 795.6 million, 

borrowings within the scope of property financing represented the 

largest individual item. 

“Liabilities from property management” consist of advance payments 

on rent (EUR 33.2 million), operating costs (EUR 19.3 million) 

and rent deposits paid by tenants (EUR 6.7 million). 

The item “Other liabilities” decreased by EUR 8.7 million. 

Among other things, this includes distributions not yet 

called (EUR 6.8 million), accrued interest payments for loans 

(EUR 4.8 million), liabilities to the capital investment company 

for outsourced items (EUR 1.2 million), trade accounts payable 

(EUR 0.7 million), sales tax liabilities (EUR 2.0 million), miscellaneous 

other liabilities (EUR 0.9 million) and liabilities from currency 

forward agreements (EUR 122.3 million). 

Total accruals amounted to EUR 114.0 million. These essentially 

relate to construction expenditure incurred but not yet invoiced 

in the amount of EUR 35.1 million and to repairs and maintenance 

in the amount of EUR 16.7 million. In addition, accruals of 

EUR 55.9 million exist for foreign profits tax and deferred taxes. As 

regards foreign real estate investments, in practically all countries 

where a property is situated, in the event of sale of a property the 

24 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS

difference between the sales price and the relevant residual book 

value is subject to tax. Where properties have not yet been sold, 

this tax obligation will not be incurred until some future date. Since 

fluctuations in property values – even where they have not yet 

been realized through sale – are a major valuation factor influencing 

yield and performance, the RREEF Investment gmbH management 

is of the opinion that the tax consequences of these fluctuations in 

value must also be included in determining unit values. Therefore, 

depending on the tax obligation in the relevant countries, accruals 

are created for the full, undiscounted amount of such deferred 

taxes, as determined by expert appraisal and in consideration of 

depreciation. These provisions are subsequently adjusted to any 

future changes in value of the real estate and, in the event of sale, 

are offset against the capital gains tax liability incurred as a result 

of the sale. 

Foreign items relating to liabilities and accruals totaling 

EUR 966.0 million break down by individual country as follows: 

United Kingdom EUR 421.1 million, Netherlands EUR 85.6 million, 

Spain EUR 135.0 million, France EUR 165.3 million, Italy 

EUR 77.4 million, and Poland EUR 81.6 million. 

In order to hedge against currency risks for investments in 

the United Kingdom and Poland, in addition to raising loan capital, 

currency forward agreements for gBP 359.2 million and 

PLN 100.0 million were also entered into. Delivery commitments 

were measured at the current rate of exchange. 

The currency hedging strategy is structured for the medium to long 

term and based on a minimization of hedging costs/maximization 

of hedging income. Prices for forward exchange hedging primarily 

result from the effective difference in interest rates between the 

eurozone and the investment country and the (remaining) term of 

the contract. changes to the difference in interest rates result in 

changes to the intrinsic value of forward exchange hedges. 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS 25

StAtement OF ASSetS AS OF SeptembeR 30, 2011 

pARt I: Index OF pROpeRtIeS 

Index of properties as of September 30, 2011 

No. 

Address 

I. Directly held properties in Germany 

1 81737 munich-Neuperlach 

Thomas-Dehler-Straße 8, 10, 12 

Von-Knoeringen-Straße 1 

Ollenhauerstraße 4 

“PEP” 

2 81737 munich-Neuperlach 

Thomas-Dehler-Straße 

3 60594 Frankfurt/main 

Hedderichstraße 47-49 

4 60322 Frankfurt/main 

Bockenheimer Anlage 44 

“Park Tower” 

Type of property 1) 

Type of use 2) 

Project/Portfolio 

development measures 

Sc S (86%) 07/84, 

12/96 

Date of purchase 

1980/81 

Ext. 1989 

conv. 

1999/2000 

Year of construction 

U 07/84 6,686 

OR R (38%) 

O (32%) 

S (30%) 

II. Directly held properties outside Germany (eurozone countries) 

1 03015 Alicante 

Jose garcia Selles, 2 

“gran Via” 

E 

2 08970 Barcelona 

Sant Joan Despi 

calle de la TV3, 2 

“Novotel” 

E 

3 12006 castellón de la Plana 

ctra. Nacional 340, Km 64.3 

“centro comercial La Salera” 

E 

4 28906 getafe 

calle de la confianza, 1 

E 

5 28906 getafe 

calle de la Tenacidad, 2 

E 

6 28042 madrid 

calle Amsterdam, 3 

“Novotel” 

E 


P. Empresarial cristalia 5 y 6, 

Via de los Poblados, 3 

“cristalia” 

E 


Paseo de la castellana, 42 

E 

9 41004 Seville 

Avenida Eduardo Dato, 71 

“Novotel Nervion” 

E 

10 92400 courbevoie, La Defense 

22 place des Vosges 

“Le monge” 

F 

11 93200 Levallois-Perret 

131/147 rue Victor Hugo 

“Vasco de gama” 

F 

12 75008 Paris 

125 avenue des 

champs Elysees* 

F 

26 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS PART I 

Size of property 

in sqm 

co-ownership/ 

Leasehold right 

Rental area 3) 

commercial in sqm 


residential in sqm 

Number of 

parking spaces 

48,297 59,915 2,280 Ac, SL, 

PL, E 

09/09 2009 4,127 5,979 3,636 109 Ac, PL 

O O (96%) 03/10 2007 868 18,961 54 Ac, SL, PL 

Sc S (81%) 12/98 1998 55.02% 

co-ownership 

share of 

20,872 sqm 

Features 4) 

20,303 1,145 Ac, SL, 

PL, E 

H H (100%) 12/02 2002 1,558 6,459 100 Ac, SL, PL 

Sc S (100%) 12/06 2006 77.02% 

co-ownership 

share of 

78,767 sqm 

53,975 2,826 Ac, SL, 

PL, E 

OW W (84%) 04/08 2005 12,286 7,306 60 Ac 

OW W (76%) 04/08 2005 21,799 11,144 10 Ac 

H H (100%) 08/02 1993 53.60% 

co-ownership 

share of 

6,608.89 sqm 

O O (100%) 03/06 2006 6,029 + Part 

ownership 

of 4,903 sqm 

O O (96%) 07/03 1980 

conv. 2001 

H H (100%) 03/04 2004 42.58% 

co-ownership 

share of 

1,958 sqm 

O O (93%) 06/99 1980 

conv. 1996 

13,136 118 Ac, SL, PL 

17,589 381 Ac, PL 

429 4,730 30 Ac, PL 

2,757 + Volume 

ownership 

of 34 parking 

spaces 

O O (93%) 12/01 1989 6,673 As volume 

ownership/ 

part ownership 

Oc O (54%) 

S (34%) 

09/98 1850/1915 

conv. 

1975/93 

8,306 88 Ac, SL, PL 

11,488 179 Ac, PL 

17,393 356 Ac, PL 

754 3,944 PL, Ac

market value/ 

Purchase price 5) 

in TEUR 

Share of real estate 

assets in % 

Essential results of appraisal 

Appraiser-assessed 

rent in TEUR 

Remaining useful 

life in years 

Loans in TEUR 

Borrowing ratio 

as % of market value/ 

purchase price 

Vacancy rate as % of 

rental income fully let 

Residual terms 

of leases in years 6) 

Rental income 

Oct. 1, 2010 – 

Sept. 30, 2011, 

in TEUR7) Projected rental income 

Oct. 1, 2011 – 

Sept. 30, 2012, 

in TEUR8) 367,200 12.2% 21,877 44 1.2% 6.7 21,299 21,595 21,638 

3,420 0.1% 

29,300 1.0% 1,857 68 2.5% 4.9 1,853 1,811 1,853 

124,500 4.1% 7,058 56 6.2 7,058 7,058 7,058 

59,400 2.0% 4,750 47 29.9% 2.5 2,824 2,768 3,920 

17,700 0.6% 1,090 61 11.2 1,090 1,090 1,090 

149,400 5.0% 11,113 55 80,000 53.5% 9.4% 5.1 9,410 9,565 10,841 

8,550 0.3% 593 45 4,580 53.6% 0.6 593 593 593 

13,900 0.5% 931 45 8,320 59.9% 1.8 931 931 931 

27,660 0.9% 1,864 52 9.2 1,864 1,864 1,864 

62,400 2.1% 4,270 66 22.5% 3.1 3,654 3,299 4,198 

31,040 1.0% 1,741 59 25.8% 3.4 1,171 1,349 1,751 

18,300 0.6% 1,292 63 0.0% 12.4 1,292 1,292 1,292 

67,080 2.2% 4,324 39 5.4% 3.0 3,916 3,391 4,459 

81,000 2.7% 5,510 38 5.5% 4.4 2,905 5,132 5,402 

59,400 2.0% 3,237 52 18,294 30.8% 3.9% 1.6 3,119 3,097 3,374 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS PART I 27 

Projected rental income 

fully let Oct. 1, 2011 – 

Sept. 30, 2012, 

in TEUR


No. 

Address 





II. Directly held properties outside Germany (eurozone countries) 

13 75013 Paris 

74–80 avenue de France 

“Insight” 

F 

14 75009 Paris 

12 rue d’Athène* 

“Euro-Athènes” 

F 

15 93290 Tremblay en France 

64 avenue de la Plaine de France 

“Le Panoramique” 

F 

16 33610 cestas (Bordeaux) 

4-6 rue chemin Saint Raymond 

“Logistics park” 

F 

17 20121 milan 

Via San Prospero 2* 

“Prospero” 

I 

18 00038 Valmontone 

Factory Outlet 

Via della Pace, Loc. Pascolaro 

“FOc Valmontone” 

I 

19 1012 WP Amsterdam 

Kalverstraat, Singel, 

Heilige Weg 21–25* 

“Kalvertoren” 

NL 

20 1012 AB Amsterdam 

Stationsplein 51–71 

“Zilveren Toren” 

NL 

21 2211 AA The Hague 

Bezuidenhoutseweg 10–12 

“malie Toren” 

NL 

22 3067 gg Rotterdam 

Watermanweg 

“Eurogate III” 

NL 

23 2316WZ Leiden 

Dellaertweg 1 

“Dellaertweg” 

NL 

24 02-675 Warsaw 

Domaniewska 39B 

“Topaz” 

PL 

25 02-675 Warsaw 

Domaniewska 39 

“Nefryt” 

PL 

26 00-609 Warsaw 

Aleja Armii Ludowej 26 

“Focus Filtrowa” 

PL 





in sqm 

co-ownership/ 






Number of 


O O (89%) 05/05 2005 3,888 22,429 118 Ac, SL, PL 

O O (96%) 08/02 2003 1,500 4,850 38 Ac, SL, PL 

O O (63%) 

W (30%) 

O W (95%) 

O (5%) 

09/04 1981-1989 

conv./ 

Ext. 2003/04 

O O (100%) 01/99 1890 

conv. 1955 

conv. 

1987/90 

Sc S (100%) 03/04 

02/08 

12/08 

Sc S (95%) 09/1997 

11/1997 

39,481 17,849 650 Ac, PL 

07/11 2007/2008 179,053 69,180 531 Ac 

2004 

2005 

2008 

Features 4) 

690 4,146 Ac, PL 

241,003 Incl. heritable 

building right on 

71,451 sqm 

1900/1997 146 +88/100 

co-ownership 

share of 

5,338 sqm (Part 

leasehold/opstal 

right)** 

O O (100%) 11/98 1992 605 Leasehold/ 

opstal right** 

O O (99%) 10/94 1996 1,498 Leasehold/ 

opstal right** 

O O (97%) 01/01 2000 3,225 + Sub-heritable 

building right 

on 114 parking 

spaces 

39,743 3,518 Ac, SL, PL 

11,938 89 SL, PL, E 

5,005 Ac, PL 

15,528 177 Ac, PL 

8,002 199 Ac, PL 

O O (100%) 10/10 2010 2,295 31,072 340 Ac, SL, PL 

O O (99%) 10/10 2006 5,397 Right of 

perpetual 

usufruct 

O O (100%) 10/10 2008 7,516 Right of 

perpetual 

usufruct 

O O (95%) 09/11 2000 6,872 Right of 

perpetual 

usufructt 

III. Directly held properties outside Germany (countries with other currencies) 

1 London Ec3 

Lower Thames Street 

2 Tower Hill 

“Tower Place” 

GB 

11,168 197 Ac, SL, PL 

16,585 266 Ac, SL, PL 

33,585 434 Ac, SL, 

PL, E 

O O (90%) 10/03 2003 8,719 Leasehold** 35,242 30 Ac, PL

market value/ 


in TEUR 


assets in % 



rent in TEUR 


life in years 

Loans in TEUR 








Rental income 

Oct. 1, 2010 – 

Sept. 30, 2011, 


Oct. 1, 2011 – 

Sept. 30, 2012, 

in TEUR8) 203,000 6.7% 11,510 64 94,500 46.6% 0.4% 2.8 11,510 11,510 11,510 

44,300 1.5% 2,467 62 1.2 2,463 1,953 2,487 

33,900 1.1% 2,592 43 0.5 2,592 2,592 2,592 

41,256 1.4% 3,064 46 20,000 48.5% 6.9 3,064 3,064 3,064 

22,100 0.7% 1,392 47 1.0 1,392 1,392 1,392 

152,800 5.1% 12,950 44 61,000 39.9% 3.3 12,950 12,950 12,950 

92,000 3.1% 5,976 57 6.9% 2.9 5,562 5,440 5,931 

13,000 0.4% 944 52 5.7 1,057 1,061 1,061 

57,500 1.9% 3,621 55 10.2 3,647 3,666 3,666 

18,460 0.6% 1,249 60 2.5% 6.7 1,336 1,345 1,453 

111,232 3.7% 7,050 70 56,800 51.1% 19.0 7,050 7,050 7,050 

31,200 1.0% 2,301 66 15,075 48.3% 4.8 1,538 1,953 2,137 

47,725 1.6% 3,231 68 21,600 45.3% 3.1 3,155 3,400 3,451 

116,604 3.9% 8,171 59 40,000 34.3% 2.5% 2.7 329 7,450 7,630 

279,948 9.3% 16,931 63 166,535 59.5% 16.3 16,931 16,931 16,931 




Sept. 30, 2012, 

in TEUR


No. 

Address 






III. Directly held properties outside Germany (countries with other currencies) 

2 London SW 1 

78 St. James’s Street* 

“St. James’s Street” 

GB 

3 London Wc 1 

84 Theobald’s Road 

“Lacon House” 

GB 

4 London Ec 4 

Tudor Street 

“Northcliffe House” 

GB 

5 London Ec 4 

85 King William Street 

“capital House” 

GB 




in sqm 

co-ownership/ 






Number of 


O O (100%) 12/03 2003 2,600 Leasehold** 11,018 14 Ac, SL, PL 

O O (97%) 12/03 1950 

conv. 1999 

IV. Properties in Germany held through special purpose vehicles 

1 Holding: 

5% share in 

Tiago german 

Properties gmbH & co. Kg, 

Frankfurt/main 

Share capital: 

EUR 3,484,497 

10115 Berlin 

caroline-michaelis-Str. 5–11 

“Stettiner carree” 

60528 Frankfurt/main 

Herriotstraße 4 

“campus carree” 


Olof-Palme-Straße 35 

“PWc” 

2 Holding: 

97.5% share in RREEF 

Waterfront gmbH & co. Kg, 

Eschborn 

(shareholding under 

company law 94.99%) 


EUR 95,720,013 

20457 Hamburg 

Strandkai 1 

großer grasbrook 

“Unilever-Haus” 

3 Holding: 

94.9% in mittelrhein Koblenz 


EUR 74,673,746 

4 Holding: 

100% in gi 

Verwaltungsgesellschaft mbH 

(Partner of RREEF 

Waterfront gmbH & co. Kg) 

Share capital: EUR 67,276 

V. Total real estate assets 

1) O Office building 

Oc Office and commercial building 

OW Office and warehouse building 

Sc Shopping center 

H Hotel 

S Shops 

W Warehousing 

U Undeveloped site 

R Residential 

OR Office and residential buildings 

4,111 20,122 24 Ac, SL, PL 

O O (97%) 09/03 2001 3,786 Leasehold** 17,756 22 SL, PL 

O O (97%) 09/10 2003 1,925 11,209 4 Ac, SL, PL 

O O (96%) 03/05 2005 20,439 60,531 472 SL, PL 

O O (98%) 02/03 2003 19,790 31,366 507 Ac, SL, PL 

O O (94%) 07/02 1994 16,742 26,899 444 SL, PL 

O O (97%) 12/09 2009 7,797 25,698 313 SL, PL 

Sc 10/10 2011 

2) Based on rental income. 

3) Values principally relate to the initial appraisal. Adjustment only effected 

in the event of structural change. 

4) Ac Air conditioning 

SL Service lift 

PL Passenger lift 

E Escalator 

5) market values/purchase prices in foreign currency converted at exchange 

rate of September 29, 2011. 

Features 4) 

6) When calculating the residual terms of leases, it is assumed that 

contractually agreed special termination rights are exercised. 

7) Rental income in foreign currencies is converted using historic 

exchange rates. 

8) Foreign currency positions are converted at projected rates. 

* Areas of the property protected by preservation order. 

** corresponds to german heritable building rights.

market value/ 


in TEUR 


assets in % 



rent in TEUR 


life in years 

Loans in TEUR 








Rental income 

Oct. 1, 2010 – 

Sept. 30, 2011, 


Oct. 1, 2011 – 

Sept. 30, 2012, 

in TEUR8) 166,707 5.5% 11,072 68 81,518 48.9% 12.0 11,072 11,072 11,072 

118,175 3.9% 7,255 58 3.1 9,708 9,689 9,689 

125,873 4.2% 8,211 60 75,609 60.1% 7.1 8,211 8,211 8,211 

104,177 3.5% 6,490 62 51,802 49.7% 12.4% 3.9 6,485 5,689 6,473 

7,395 0.2% 9,149 65 5,054 68.3% 5.8 506 506 506 

4,010 0.1% 5,248 63 2,949 73.5% 6.9% 4.3 330 330 339 

3,845 0.1% 4,362 54 2,857 74.3% 5.2 339 339 339 

99,450 3.3% 5,343 69 12.8 5,000 5,000 5,000 

0.0% 

3,014,907 100.0% 806,493 

Actual and projected rental incomes for properties listed in color are not disclosed in order 

to protect the interests of the individual tenant. In such cases, these are replaced by the 

appraiser-assessed rent. 




Sept. 30, 2012, 

in TEUR 


EUR 1 = gBP 0.87159 

EUR 1 = PLN 4.42076

lISt OF puRcHASeS And SAleS 

RecORded In tHe StAtement OF ASSetS AS OF SeptembeR 30, 2011 

List of property purchases (acquired after adaptation of the contractual terms in June 2008 and before the beginning of the reporting period) 

Address 

I. Directly held properties: 

– in Germany 


Hedderichstraße 47-49 


Bockenheimer Anlage 44 

“Park Tower” 

– in eurozone countries 

00038 Valmontone 

Factory Outlet 

Via della Pace, Loc. Pascolaro 

“FOc Valmontone” 

I 

market value/ 

Purchase price 

in TEUR2) Total incidental 

acquisition costs 

in TEUR 

thereof fees and taxes 

in TEUR 

thereof other costs 

in TEUR 

Total incidental 

acquisition costs as % 

of acquisition price 

Incidental acquisition 

costs amortized 

in previous business 

years in TEUR2) Incidental acquisition 


in the business year 

in TEUR2) Remaining incidental 


to be amortized 

in TEUR2) 29,300 1,722 1) 1,020 1) 702 1) 5.9% 357 345 1,020 9/16/2009 

124,500 5,886 1) 4,425 1) 1,461 1) 4.8% 683 1,180 4,023 3/1/2010 

152,800 786 1) 537 1) 249 1) 5.9% 282 157 347 Third 

construction 

phase 

12/15/2008 

Transfer of rights 

and obligations 

– in countries with other currencies 

London Ec 4 

85 King William Street 

“capital House” 

GB 

104,177 6,512 1) 4,404 1) 2,108 1) 6.1% 46 1,276 5,012 9/14/2010 

II. Holdings in special purpose vehicles 


20457 Hamburg 

99,450 1,190 

Strandkai 1 

großer grasbrook 16 

“Unilever-Haus” 

1) 1 1) 1,189 1) 1.2% 183 239 768 12/21/2009 94.99% shareholding 

under 

company law 

97.5% shareholding 

under 

business law 

– in eurozone countries – – – – – – – – – – 

– in countries with other currencies – – – – – – – – – – 

Total 510,227 16,096 10,387 5,709 1,551 3,197 11,170 

1) Historical incidental acquisition costs are recorded at the exchange rate at the time of the transfer of ownership. 

2) currencies are converted at the respective exchange rate applicable on September 29, 2011. 

Share of portfolio 

in % 

32 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 LIST OF PURcHASES AND SALES

List of property purchases (acquired after adaptation of the contractual terms in June 2008 and in the reporting period) 1) 

Address 

market value/ 

Purchase price 

in TEUR2) Total incidental 


in TEUR 

thereof fees and taxes 

in TEUR 

thereof other costs 

in TEUR 

Total incidental 

acquisition costs as % 

of acquisition price 

Incidental acquisition 


in previous business 

years in TEUR2) Incidental acquisition 


in the business year 

in TEUR2) Remaining incidental 


to be amortized 

in TEUR2) Transfer of rights 

and obligations 

I. Directly held properties 


– in eurozone countries 

– – – – – – – – – – 

2316WZ Leiden 

Dellaertweg 1 

“Dellaertweg“ 

NL 

111,232 2,518 5 2,513 2.3% 478 2,040 10/18/2010 

02-675 Warsaw 

Domaniewska 39B 

“Topaz“ 

PL 

31,200 473 79 394 1.5% 87 386 10/29/2010 

02-675 Warsaw 

Domaniewska 39 

“Nefryt“ 

PL 

47,725 711 121 590 1.5% 131 580 10/29/2010 

02-675 Warsaw 

Aleja Armii Ludowej 26 

“Focus Filtrowa“ 

PL 

116,604 1,175 1,175 1.0% 10 1,165 9/15/2011 

33610 cestas (Bordeaux) 

4-6 rue chemin Saint Raymond 

“Logistics park“ 

F 

41,256 1,122 626 496 2.7% 41 1,081 7/26/2011 

– in countries with other currencies – 

II. Holdings in special purpose vehicles 


– – – – – – – – 

Holding: 

77,534 268 268 0.7% 48 220 Has not yet 

94.9% in mittelrhein Koblenz 

taken place 

– in eurozone countries – – – – – – – – – – 

– in countries with other currencies – – – – – – – – – – 

Total 425,551 6,267 831 5,436 795 5,472 

1) Historical incidental acquisition costs are recorded at the exchange rate at the time of the transfer of ownership. 

2) currencies are converted at the respective exchange rate applicable on September 29, 2011. 

No properties were sold in the period from October 1, 2010, through September 30, 2011. 

Share of portfolio 

in % 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 LIST OF PURcHASES AND SALES 33


pARt II: HOldIngS In mOneY mARket InStRumentS, 

InveStment Fund unItS And SecuRItIeS 

Part II: Holdings in money market instruments, investment fund units and securities as of September 30, 2011 

Purchases Sales Holdings market value EUR Share of 

nominal EUR nominal EUR nominal EUR (prices as of net asset value 

or units or units or units Sept. 29, 2011) in % 

I. Money market instruments 

II. Investment fund units 

III. Securities 

1. Securities traded on an exchange 

a) Interest-bearing securities 382,200,000.00 461,937,000.00 295,593,000.00 301,156,086.76 

b) Equities – – – – 

c) Other securities 

Total securities 

– – – – 

traded on an exchange 

2. Securities included in organized markets 

382,200,000.00 461,937,000.00 295,593,000.00 301,156,086.76 9.2% 

a) Interest-bearing securities 3,250,000.00 5,250,000.00 0.00 0.00 

b) Other securities 


– – – – 

included in organized markets 3,250,000.00 5,250,000.00 0.00 0.00 0.0% 


thereof securities not authorized 

as collateral for monetary transactions 

in the Eurosystem by the EcB 

385,450,000.00 467,187,000.00 295,593,000.00 301,156,086.76 9.2% 

or the Deutsche Bundesbank: 

thereof shares of REIT stock 

corporations or equivalent shares 

32,500,000.00 24,500,000.00 10,000,000.00 10,217,675.00 0.3% 

of foreign legal entities: – – – – 

IV. Cash at bank: 733,329,489.17 22.3% 

Further details on the portfolio of the fixed-interest securities as of September 30, 2011 

Breakdown by nominal interest rate EUR 

0.00% to less than 4.00% 176,333,666 

4.00% to less than 5.00% 67,530,588 

5.00% to less than 6.00% 10,626,933 

6.00% to less than 8.00% 41,546,275 

8.00% to less than 10.00% 5,118,625 

Total 301,156,087 

Breakdown by residual term EUR 

Residual term up to 1 year 161,298,814 

Residual term more than 1 year up to 4 years 101,787,908 

Residual term more than 4 years 38,069,365 

Total 301,156,087 

34 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS PART II

Frankfurt/main, Park Tower 



pARt III: OtHeR ASSetS, lIAbIlItIeS And AccRuAlS, AddItIOnAl nOteS 

Part III: Other assets, liabilities and accruals, additional notes 

EUR EUR EUR Share of 

net asset 

value 

I. Other assets 1. Receivables from property management 37,164,631.56 1.1% 


thereof advanced operating costs 21,389,918.00 

thereof rent receivables 15,774,713.56 

2. Receivables from special purpose vehicles 0.00 – 

3. Interest receivable 7,783,797.68 0.2% 


4. Incidental acquisition costs 16,641,981.09 0.5% 


– on properties 15,654,336.83 

– on holdings in special purpose vehicles 987,644.26 

5. Other amounts 212,301,013.45 6.5% 


thereof receivables from unit sales 0.00 

II. Liabilities from 

thereof receivables from hedging transactions: 

market value market value Prov. result 

sale reporting date 

EUR EUR EUR 

-1,288,395,010.27 -1,109,807,419.23 178,587,591.04 

1. Loans 795,632,115.93 24.2% 


thereof short-term loans (article 53 Invg) 437,561,354.54 

2. Property purchases and building projects 2,500.00 0.0% 


3. Property management 59,186,447.57 1.8% 


4. Other liabilities 138,709,591.50 4.2% 


thereof from unit sales 

thereof from hedging transactions: 

market value market value Prov. result 

sale reporting date 

EUR EUR EUR 

799,414,380.98 677,079,954.29 122,334,426.69 

0.00 

III. Accruals 113,968,683.13 3.5% 


Net asset value (EUR) 3,285,777,061.37 


EUR 1 = gBP 0.87159 

EUR 1 = PLN 4.42076 

Notes on financial instruments 

Purchases and sales completed during the reporting period: 

Purchases (market value) Sales (market value) 

EUR 267,177,083.99 EUR -251,728,441.93 

The degree to which the maximum potential market risk has been exploited for this investment fund was determined according 

to the simple approach pursuant to the German Derivatives Ordinance (DerivateV). 

36 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS PART III

Notes on the valuation procedure 

1. Securities and money market instruments that are traded 

on an exchange or admitted in an organized market: assets 

that are traded on exchanges or included in another organized 

market, and subscription rights for the investment fund shall be 

valued at the relevant market value. 

2. unlisted securities and money market instruments: assets 

that are not traded on an exchange or included in another organized 

market or for which no tradable price is available shall be 

valued fully at the current market value, with careful assessment 

in accordance with suitable valuation models and in consideration 

of current market conditions. In the case of the valuation 

of debt securities, which are not traded on an exchange 

or in an organized market (e.g., unlisted bonds, commercial 

papers and certificates of deposit), and the valuation of german 

promissory notes (Schuldscheindarlehen), the agreed prices of 

comparable debt securities and german promissory notes and 

if applicable the market values of bonds of comparable issuers 

with the corresponding term and yield, if necessary with a fee 

to compensate for the lower saleability, shall be used. 

3. Investment fund units are valued using their most recently 

determined and available redemption price or calculated using 

the last available tradable price that guarantees a reliable 

valuation. 

4. cash at bank is valued at its nominal value plus interest that 

has been paid. Fixed term deposits are valued at market value 

if the fixed term deposit can be canceled and the repayment on 

the cancellation is not made at the nominal value plus interest. 

5. liabilities are calculated using their repayment amount. 

6. Hedges with financial instruments: options owned by the 

investment fund and liabilities from options granted to third parties 

that are admitted for trading on an exchange or included 

in another organized market shall be valued at the last known 

price. The same applies for receivables and liabilities arising 

from futures contracts sold for the account of the investment 

fund. The initial margins charged to the investment fund shall 

be added to or deducted from the value of the investment fund, 

taking into account the gains and losses in valuation established 

on the day of trading. 

In the case of currency forward agreements that have been performed 

to hedge against currency risks and are not yet completed 

or deducted, the delivery commitments of the currency 

forward agreement liabilities are valued at the current exchange 

rate and the difference vis-à-vis the associated currency forward 

receivable using the associated relevant forward exchange rate. 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ASSETS PART III 37

StAtement OF IncOme And expenSeS FOR tHe peRIOd 

FROm OctObeR 1, 2010, tHROugH SeptembeR 30, 2011 

Statement of income and expenses for the period from October 1, 2010, through September 30, 2011 

Fund total 

EUR1) EUR EUR EUR 

I. Income 

Total income from liquid assets, thereof: 16,931,010.30 

1. Interest on german securities 4,957,174.45 

2. Interest on foreign securities (before withholding tax) 6,718,950.51 

3. Interest from liquid assets in germany 3,906,995.19 

4. Interest from liquid assets abroad (before withholding tax) 1,347,890.15 

5. Other income 3,309,407.46 

Total income from properties 

and special purpose vehicles, thereof: 176,787,862.56 

6. Income from properties 174,140,099.40 


7. Income from special purpose vehicles 2,647,763.16 


Total income 197,028,280.32 

II. Expenditure 

1. management costs 26,359,596.45 

a) thereof operating costs 8,126,764.98 

thereof in foreign currency 313,053.80 

b) thereof maintenance costs 10,621,077.93 


c) thereof property administration costs 3,238,320.61 


d) thereof other costs 4,373,432.93 


2. ground rent, life and term annuities 2,551,931.26 


3. Foreign taxes 18,226,478.95 


4. Interest from loans 34,276,340.64 

thereof in foreign currency 

Total cost of managing the 

17,417,719.70 

investment fund, thereof: 28,878,439.13 

5. management fee2) 27,398,107.89 

6. custodian remuneration 840,000.00 

7. Audit and publication costs 259,696.59 

8. Other expenditure 380,634.65 

(thereof appraisal costs 269,860.91) 

Total expenditure 110,292,786.43 

III. Ordinary net income 86,735,493.89 

IV. Sales transactions 

1. Realized profits 

a) from properties3) 299,482.90 


b) from liquid assets4) 1,502,145.35 


c) Other5) 8,491,860.64 


10,293,488.89 

2. Realized losses 

a) from liquid assets6) 4,625,384.51 


b) Other6) 3,299,237.51 


Results from sales transactions 

7,924,622.02 

2,368,866.87 

Income adjustment/expense adjustment 7,843,104.39 

V. Result for the business year 96,947,465.15 

Total expense ratio7) 0.96% 

1) Foreign currency includes all non-euro items. 

2) No performance-based fee was charged to the investment fund for the business year. 

3) Realized profits from properties comprise the difference between income from sales and the book value for tax purposes. These relate to additional capital gains arising from 

property sold in previous years. 

4) Realized profits from liquid assets (securities) comprise the difference between the buying prices and the prices at the time of sale or maturity. 

5) Other realized profits (currency forward agreements and futures) comprise the difference between the buying prices and the prices at the time of sale or maturity. 

6) Realized losses are calculated in the same way as realized gains. 

7) The total expense ratio expresses total expenses and fees as a percentage of a fund’s average net assets for a given business year. The total expense ratio does not include 

transaction costs. 

38 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF INcOmE AND ExPENSES


EUR EUR EUR EUR EUR EUR 

13,491,459.69 3,439,550.61 

3,947,916.82 1,009,257.63 

5,351,003.48 1,367,947.03 

3,116,635.17 790,360.02 

1,075,904.22 271,985.93 

2,647,863.18 661,544.28 

140,807,140.47 35,980,722.09 

138,687,030.87 35,453,068.53 

2,120,109.60 527,653.56 

156,946,463.34 40,081,816.98 

20,972,704.88 5,386,891.57 

6,475,379.36 1,651,385.62 

8,429,792.86 2,191,285.07 

2,579,634.61 658,686.00 

3,487,898.05 885,534.88 

2,032,016.28 519,914.98 

14,516,386.04 3,710,092.92 

27,304,425.74 6,971,914.90 

25,178,747.67 3,699,691.45 

24,085,421.84 3,312,686.05 

669,494.89 170,505.11 

207,484.40 52,212.19 

216,346.54 164,288.10 

214,452.12 55,408.79 

90,004,280.61 20,288,505.82 

66,942,182.73 19,793,311.16 

240,894.02 58,588.88 

1,192,416.22 309,729.13 

6,721,336.91 1,770,523.73 

8,154,647.15 2,138,841.74 

3,699,260.26 926,124.25 

2,618,899.29 680,338.22 

6,318,159.55 1,606,462.47 

1,836,487.60 532,379.27 

6,623,674.23 1,219,430.16 

75,402,344.56 21,545,120.59 

1.05% 0.60% 

Pursuant to article 13 (2) no. 3 (f) InvRBV, transaction costs totaling EUR 7.4 million were charged to the investment fund. This corresponds to 0.25% of the average fund value. 

The Investment company does not receive any reimbursement of the fees and expense reimbursements paid out of the investment fund to the custodian and third parties. 

The Investment company regularly – generally annually – pays brokerage fees in the form of so-called “distribution commissions” to brokers such as credit institutions out of the 

management fees paid to them. 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF INcOmE AND ExPENSES 39

nOteS On tHe StAtement OF IncOme And expenSeS 

The grundbesitz europa fund has two unit classes named “Rc” 

and “Ic”. comprehensive business transactions affecting the 

operating results of the fund as a whole are allocated pro rata to 

the two unit classes according to an allocation formula determined 

on the basis of the pro rata share of the net asset value held by 

the respective unit class in relation to the total net asset value. 

moreover, insofar as they arise, only business transactions that 

are allocable to the commensurate unit class – such as management 

fees and performance-based fees – will be allocated to the 

respective unit class. 

The statement of income and expenses contains detailed information 

about the allocation of the individual items to the respective 

unit class. Insofar as not otherwise stated, the following notes 

relate to the overall income and expenditure items allocated pro 

rata to the unit classes. 

I. Income 

Income from liquid assets increased by EUR 4.1 million to 

EUR 16.9 million during the current business year. 

Other income includes income from the reversal of accruals 

(EUR 1.7 million), the reversal of value adjustments (EUR 0.4 million) 

and income from exchange rate differences in currency exchange 

(EUR 0.3 million). 

Income from properties and equity holdings in special purpose 

vehicles increased by EUR 26.4 million to EUR 176.8 million; of 

which EUR 143.9 million relates to properties outside germany. 

Rental income was primarily generated by commercially let space. 

II. Expenditure 

In the business year 2010/2011, property management costs 

fell by EUR 1.5 million to EUR 26.4 million. This item includes 

EUR 10.6 million in ongoing repair and maintenance costs in 

order to actively maintain fund properties in good condition and to 

make them more attractive to potential tenants. Operating costs 

amounted to EUR 8.1 million. contracts concluded with service 

providers in relation to property administration generated costs of 

EUR 2.2 million. Own costs amounted to EUR 1.0 million. 

“Other costs” of EUR 4.4 million include expenses of EUR 0.7 million 

relating to initial renting and renewal of leases, EUR 0.3 million 

for depreciation and value adjustments on rental claims, 

EUR 0.9 million in legal and consulting fees, EUR 0.5 million in 

expenses arising from exchange rate differences in currency 

exchange, and EUR 0.7 million in bank charges including loan processing 

fees. 

Interest on leasehold rights on the London properties Northcliffe 

House, Tower Place and St. James Street totaled gBP 2.2 million. 

Foreign taxes comprise profits tax on properties located in the UK, 

the Netherlands, Spain, France, Italy and Poland. 

Interest expenditure increased by EUR 5.1 million to 

EUR 34.3 million. 

At EUR 28.9 million, the reported cost of managing the investment 

fund is within contractually permissible limits and due to an 

increase in the fund’s assets is above the previous year’s figure of 

EUR 25.3 million. Remuneration for the fund management company 

and the custodian were within the percentage limits determined 

in article 12 (2) and (4) of the Special contractual Terms in 

relation to the Rc unit class and article 13 (2) and (5) of the Special 

contractual Terms in relation to the Ic unit class. 

In terms of remuneration for the fund management, different calculations 

apply that are not allocated pro rata to the unit classes but 

rather are charged directly to the respective class as unit-class-specific 

transactions. Fund management fees totaling EUR 24.1 million 

were incurred by the Rc unit class. 

EUR 3.3 million of directly applicable fund management fees were 

charged to the Ic unit class. 

For the purchase, development and sale of properties, the fund 

management company received remuneration of EUR 3.5 million 

pursuant to article 12 (3) and article 13 (4) of the Special contractual 

Terms. 

“Other expenditure” (article 14 of the general contractual Terms in 

combination with article 12 and article 13 of the Special contractual 

Terms) principally comprises costs incurred for the annual report, 

appraisals and the annual audit, which are allocated to the two unit 

classes in accordance with their respective ratio to the net asset 

value. The Ic unit class also includes additional inception costs of 

EUR 0.1 million pursuant to article 13 (3) of the Special contractual 

Terms. 

III. Capital gains/losses 

In terms of overall capital gains/losses, the Rc unit class posted a 

gain of EUR 1.9 million, while the Ic unit class recorded a gain of 

EUR 0.5 million. The realized capital gains from securities, futures, 

currency forward agreements and previous capital gains from the 

sale of real estate were EUR 8.2 million in the Rc unit class and 

EUR 2.1 million in the Ic unit class and exceeded losses from the 

sale of securities, futures and currency forward agreements in the 

Rc unit class of a total of EUR 6.3 million and of EUR 1.6 million in 

the Ic unit class. 

40 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF INcOmE AND ExPENSES

Leiden, Dellaertweg 


develOpment OF net ASSet vAlue 

FROm OctObeR 1, 2010, tHROugH SeptembeR 30, 2011 

Development of net asset value as of September 30, 2011 

Total net asset value Rc unit class Ic unit class 

EUR EUR EUR EUR EUR EUR 

Net asset value as of October 1, 2010 2,805,942,338.82 2,211,066,764.69 594,875,574.13 

Distribution for the previous year 1 -89,954,338.10 -68,721,376.10 -21,232,962.00 

Adjustment items for units issued or 

redeemed prior to the distribution date -2,093,351.00 -2,058,114.50 -35,236.50 

Cash inflow/outflow (net) 2 470,713,911.24 414,821,754.05 55,892,157.19 

cash inflow from unit sales 829,960,787.04 774,068,506.77 55,892,280.27 

cash outflow from unit redemptions -359,246,875.80 -359,246,752.72 -123.08 

Result for the business year 96,947,465.15 75,402,344.56 21,545,120.59 

thereof income adjustment/expense adjustment 7,843,104.39 6,623,674.23 1,219,430.16 

thereof ordinary net income3 thereof capital gains/losses 

86,735,493.89 66,942,182.73 19,793,311.16 

4 

– Realized profits 10,293,488.89 8,154,647.15 2,138,841.74 

– Realized losses 7,924,622.02 6,318,159.55 1,606,462.47 

Correction items income adjustment/expense adjustment -7,843,104.39 -6,623,674.23 -1,219,430.16 

Amortization of incidental acquisition costs -3,997,011.39 -3,183,944.30 -813,067.09 

– on properties 

(thereof in foreign currency EUR 1,281,014.41) 

-3,709,521.63 -2,955,017.92 -754,503.71 

8 

– on holdings in special purpose vehicles 

(thereof in foreign currency EUR 0.00) 

-287,489.76 -228,926.38 -58,563.38 

8 

Net changes in value of unrealized gains/losses 21,305,555.51 16,968,757.87 4,336,797.64 

– on properties5 (thereof in foreign currency EUR -5,571,069.51) 

23,284,731.68 18,514,772.85 4,769,958.83 

8 

– on holdings in special purpose vehicles5 (thereof in foreign currency EUR 0.00) 

3,463,866.24 2,749,922.78 713,943.46 

8 

– on liquid assets6 (thereof in foreign currency EUR 0.00) 

-3,704,661.24 -2,928,070.04 -776,591.20 

8 

unrealized changes in value from previous years 

from sales transactions made in the business year 

-1,738,381.17 -1,367,867.72 -370,513.45 

Changes in exchange rates7 -5,244,404.47 -4,190,270.44 -1,054,134.03 

Net asset value as of September 30, 2011 3,285,777,061.37 2,633,482,241.60 652,294,819.77 

42 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 DEVELOPmENT OF NET ASSET VALUE

nOteS On tHe develOpment OF net ASSet vAlue 

The development of net asset value details the business events 

that have occurred during the reporting period, which, in turn, have 

led to the updated level of assets listed in the statement of assets. 

consequently, it is a breakdown of the difference between the level 

of assets at the beginning and end of the business year. 

Footnotes to page 42 

1 Refers to the distribution for the 2009/2010 business year (see 

the previous year’s annual report: distribution posted in the 

“Distribution calculation” table). 

2 cash inflows from unit sales and cash outflows from unit 

redemptions are obtained by multiplying the redemption 

price by the number of units sold or redeemed. The redemption 

price contains the income per unit, designated as income 

adjustment. 

3 Ordinary net income is shown in the statement of income and 

expenses. 

4 The breakdown of capital gains/losses is shown in the statement 

of income and expenses. 

5 changes in the value of unrealized profits/losses in respect 

of properties and holdings in special purpose vehicles result 

from changes in appraised values and changes in market values 

in the business year, with deferred foreign taxes taken into 

account. 

6 The net change in value of unrealized profits/losses on liquid 

assets results from market value changes in respect of the 

securities held. 

7 changes in exchange rates apply to the valuation of foreign 

currency assets, as well as the valuation of open financial 

futures contracts. In the valuation of foreign currency assets, 

the change in the exchange rate is the result of the difference 

between the valuation of the foreign currency assets 

at the start of the reporting period (excluding the appraised 

value adjustment) and that applicable at the end of the reporting 

period. The changes in the exchange rate from the results 

of the appraised value adjustments and the transactions conducted 

in the reporting year are the result of the difference of 

the exchange rate at the time of the appraised value adjustment 

or the conclusion of the transaction and the price at the 

end of the reporting period. In open financial futures contracts, 

the delivery commitments of the currency forward agreement 

liabilities are valued at the current exchange rate and the difference 

vis-à-vis the associated currency forward receivable using 

the associated relevant forward exchange rate. 

8 Foreign currency includes all non-euro items. 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 DEVELOPmENT OF NET ASSET VALUE 43

Development of the grundbesitz europa fund 

9/30/2007 9/30/2008 9/30/2009 9/30/2010 9/30/2011 

Properties (EUR million) 2,316.2 2,300.8 2,243.70 2,499.3 2,900.2 

Holdings in special purpose vehicles (EUR million) 23.2 12.5 7.4 104.5 184.7 

Securities (EUR million) 388.4 350.5 145.8 387.3 301.2 

cash at bank (EUR million) 428.2 471.4 641.3 425.8 733.3 

Other assets (EUR million) 142.0 136.9 116.6 260.9 273.9 

Liabilities and accruals (EUR million) -979.1 -931.9 -797.1 -872.0 -1,107.5 

Total net asset value (EUR million) 2,319.0 2,340.2 2,357.7 2,805.9 3,285.8 

Units in circulation (million units) 53.3 

Net asset value per unit (EUR) 43.52 

Distribution per unit (EUR) 1) RC unit class 

2.80 

Rc net asset value (EUR million) 1,810.8 1,827.00 2,211.0 2,633.5 

Rc units in circulation (million units) 42.9 43.2 52.9 62.9 

Net asset value per Rc unit (EUR) 42.87 42.33 41.82 41.87 

Distribution per Rc unit (EUR) 1) IC unit class 

2.20 1.75 1.30 1.40 

Ic net asset value (EUR million) 499.4 530.7 594.9 652.3 

Ic units in circulation (million units) 11.6 12.5 14.2 15.5 

Net asset value per Ic unit (EUR) 42.90 42.48 42.02 42.06 

Distribution per Ic unit (EUR) 1) 2.20 1.90 1.50 1.60 

Date of distribution 1/15/2008 1/16/2009 1/14/2010 1/13/2011 1/12/2012 

coupon number (Rc only) 37 38 39 40 

1) Payable after the close of the business year. 

Development of yields 

Key yield figures in % Business year Business year Business year Business year 

I. Real estate and holdings 

2007 – 2008 2008 – 2009 2009 – 2010 2010 – 2011 

gross income1) 8.0% 7.5% 7.0% 6.1% 

Property management expenses1) -0.9% -0.9% -1.0% -0.8% 

Net income1) 7.1% 6.6% 6.0% 5.3% 

changes in value1) 0.5% -0.1% -1.1% 1.2% 

Foreign profits tax1) -0.7% -0.6% -2.0% -0.6% 

Foreign deferred taxes1) -0.3% -0.3% 2.3% -0.2% 

Result before loan charges1) 6.6% 5.6% 5.3% 5.9% 

Result after loan charges2) 7.4% 5.9% 5.3% 5.9% 

Total return from real estate and holdings2) 7.4% 5.9% 5.3% 5.9% 

currency effects2) -0.7% 0.0% 0.3% -0.4% 

Total return2) 6.7% 5.9% 5.6% 5.5% 

II. Liquidity 3) 4.0% 2.6% 0.7% 1.2% 

III. Total fund return before fund costs 4) 5.7% 4.8% 4.0% 4.2% 

IV. Total fund return after deduction of fund costs (BVI method) 

Rc unit class4) 5.1% 4.0% 3.0% 3.3% 

Ic unit class4) 2.1% 5) 4.3% 3.5% 3.8% 

1) In relation to average real estate assets of the direct investments and special purpose vehicles. 

2) In relation to average equity capital invested in properties and special purpose vehicles including shareholder loans. 

3) In relation to average liquid assets. 

4) In relation to average net asset value. 

5) Based on the period from April 1, 2008, through September 30, 2008. 

44 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 DEVELOPmENT OF NET ASSET VALUE

London, capital House 


StAtement OF expendItuReS AS OF SeptembeR 30, 2011 

Statement of expenditures as of September 30, 2011 

Notes on the statement of expenditures 

In the business year reported here, the fund generated a result of 

EUR 75.4 million in the Rc unit class and EUR 21.5 million in the 

Ic unit class. 

The breakdown of the result for the business year can be seen in 

the statement of income and expenses and for each unit class is 

composed of ordinary net income, capital gains from securities, 

futures and currency forward agreements and income adjustment. 

Because of the high level of profit carried forward from previous 

years and net cash inflows in the business year, new investors 

have participated in particular in the profit carried forward; for this 

reason an income adjustment of EUR 19.2 million in the Rc unit 

class and EUR 4.5 million in the Ic unit class are used for the 

distribution. 

The investment fund made no contributions to the distribution. 

Together with the amount carried forward from previous years 

totaling EUR 294.8 million in the Rc unit class and EUR 80.7 million 

in the Ic unit class, the total available for distribution is 

EUR 426.1 million in the Rc unit class and EUR 110 million in the 

Ic unit class. 

Rc unit class 

Units: 62,888,898 

Ic unit class 

Units: 15,506,668 

total per unit total per unit 


I. Calculation of distribution 

1. carried forward from the previous year 294,770,153.97 4.69 80,748,715.65 5.21 

2. Result for the business year 75,402,344.56 1.20 21,545,120.59 1.39 

3. Income adjustment/expense adjustment to profit carried forward 55,946,759.58 0.89 7,702,752.00 0.50 

4. Transferred from the investment fund 0.00 0.00 0.00 0.00 

II. Available for distribution 426,119,258.11 6.78 109,996,588.24 7.09 

1. Retention pursuant to article 78 Invg -1,257,777.96 -0.02 -310,133.36 -0.02 

2. Transferred to reinvestment 0.00 0.00 0.00 0.00 

3. carried forward to new account -336,817,022.95 -5.36 -84,875,786.08 -5.47 

III. Total distribution 

1. Interim distribution 0.00 0.00 0.00 0.00 

a) cash distribution 0.00 0.00 0.00 0.00 

b) Investment income tax withheld – – – – 

c) Solidarity surcharge withheld – – – – 

2. Final distribution 88,044,457.20 1.40 24,810,668.80 1.60 

a) cash distribution 88,044,457.20 1.40 24,810,668.80 1.60 

b) Investment income tax withheld – – – – 

c) Solidarity surcharge withheld – – – – 

Frankfurt/main, germany, November 30, 2011 

RREEF Investment gmbH 

Amounts will be deducted from these available distribution 

amounts for future contributions for future payments pursuant to 

article 78 Invg. 

Pursuant to article 14 (6) of the Special contractual Terms, no 

amounts from the results are used for reinvestment. 

The profit carried forward in the Rc unit class was increased by 

EUR 42 million to EUR 336.8 million. Profit carried forward in the 

Ic unit class amounted to EUR 4.1 million and EUR 84.9 million 

was carried forward to new account. These sums of profit carried 

forward in relation to the respective unit classes are available for 

distribution in subsequent years. 

A distribution of EUR 1.40 per unit in the Rc unit class is expected 

to produce a total distribution amount of EUR 88 million. This corresponds 

to a distribution yield of 3.4% of unit value as of September 

30, 2010, and performance for the business year of 3.3%. The 

expected distribution in the Ic unit class is EUR 24.8 million. This 

corresponds to a value of EUR 1.60/unit and a distribution yield of 

3.8% of unit value as of September 30, 2010, and performance for 

the business year of 3.8%. 

Dr. georg Allendorf Thomas Schneider Ulrich Steinmetz 

46 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF ExPENDITURES

StAtement OF tHe Independent AudItOR 

To RREEF Investment GmbH, Frankfurt/Main, Germany, 

Pursuant to article 44 (5) of the Investment Act (Investmentgesetz; 

Invg), RREEF Investment gmbH commissioned us to audit the 

annual report of the grundbesitz europa investment fund for the 

business year from October 1, 2010, through September 30, 2011. 

Responsibility of the legal representatives 

The preparation of the annual report according to the provisions 

of the Invg is the responsibility of the legal representatives of the 

investment company. 

Responsibility of the independent auditor 

Our responsibility is to express an opinion on the annual report 

based on our audit. 

We conducted our audit in accordance with article 44 (5) Invg and 

generally accepted german standards for the audit of financial 

statements promulgated by the Institut der Wirtschaftsprüfer (Institute 

of Public Auditors in germany; IDW). Those standards require 

that we plan and perform the audit such that misstatements 

materially affecting the annual report are detected with reasonable 

assurance. Knowledge of the management of the investment 

fund and expectations as to possible misstatements are taken 

into account in the determination of audit procedures. The effectiveness 

of the accounting-related internal control system and the 

evidence supporting the disclosures in the annual report are examined 

primarily on a test basis within the framework of the audit. 

The audit includes assessing the accounting principles used for the 

annual report and significant estimates made by the legal representatives 

of the investment company. In our view, our audit provides 

a reasonably secure basis for our evaluation. 

Audit findings 

Our audit has not led to any reservations. 

In our opinion, based on the findings of our audit, the annual report 

complies with the legal requirements. 

Frankfurt/main, germany, December 1, 2011 

KPmg Ag 

Wirtschaftsprüfungsgesellschaft 

Dr. Lemnitzer Doublier 

Wirtschaftsprüfer Wirtschaftsprüfer 

[german Public Auditor] [german Public Auditor] 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 STATEmENT OF THE INDEPENDENT AUDITOR 47

tAx InFORmAtIOn FOR tHe InveStOR 

Information provided in the following notes applies to the Rc unit 

class. It applies to the Ic unit class only insofar as it is reported 

separately. 

Distributed profit, RC unit class 

For the business year 2010/11, EUR 1.40 (= 3.35%, based on the 

net asset value per unit of the Rc unit class at the beginning of the 

business year) is being distributed. Of this amount, EUR 1.0652 

(76.09%) is not subject to income tax or is not taxable if the units 

are held as private assets. In effect, the distribution of 3.35% 

comprises a tax-exempt portion of 2.55% and a taxable portion of 

0.80%. 

To achieve the same distribution after taxes, a fully taxable alternative 

investment would need to achieve the following distribution: 

Distributed profit overview 

Distributed profit comparative pre-tax returns 

grundbesitz europa Rc at a tax rate1) of 

26.375% 

3.35% 4.26% 

1) Investment income tax (25%) incl. solidarity surcharge (5.5% of investment income tax) 

Investors would have to achieve an annual return of 4.26% on a 

fully taxable investment during this period in order to receive comparable 

income after taxes. 

Distributed profit, IC unit class 

For the business year 2010/11 EUR 1.60 (= 3.81%, based on the 

net asset value per unit of the Ic unit class at the beginning of the 

business year) is being distributed. Of this amount, EUR 1.1399 

(71.24%) is not subject to income tax or is not taxable if the units 

are held as private assets. In effect, the distribution of 3.81% 

comprises a tax-exempt portion of 2.71% and a taxable portion of 

1.09%. 

Solid long-term income 

Over the past ten years, the fund’s investment income has averaged 

4.54% annually (BVI method). In this period, the tax-free portion 

of the distributions for units held as private assets amounts to 

52.24%. compared to an investment that is fully subject to tax and 

is taxed at a rate of 26.375% (capital gains tax, plus solidarity surcharge), 

this results in a comparable annual return of 5.39%. 

Investment performance overview 

Investment performance comparative pre-tax returns 

grundbesitz europa Rc at a tax rate1) of 

26.375% 

4.54 % p.a. 5.39% p.a. 

1) Investment income tax (25%) incl. solidarity surcharge (5.5% of investment income tax) 

Distribution/income for the purposes of investment tax 

Distributions for the business year 2010/11 of EUR 1.40 per unit 

(Rc unit class) will be effected on January 12, 2012. The taxable 

portion of the distribution is detailed in the following table. 

Retained income is fully tax-exempt or non-taxable. The investor 

is subject to tax on EUR 0.3348 per unit for units held as private 

assets. For units held as business assets, EUR 0.3348 per unit is 

taxable for investors subject to income tax and EUR 0.3348 per 

unit is taxable for investors subject to corporate income tax. 

The basis of taxation declarable for the purposes of investment tax 

law for distributed and dividend equivalent (retained) income pursuant 

to article 5 of the Investment Tax Act (InvStg) is detailed in the 

table at the end of the report. The difference between the distribution 

per unit and the distributed and dividend equivalent income 

in accordance with the certified information pursuant to article 5 

InvStg represents reduced income for tax purposes. For units 

held as private assets, as business assets of investors subject to 

income tax and as business assets of investors subject to corporate 

income tax, this additional income is EUR 0.2972 per unit. 

Insofar as income from capital has already been adequately taxed, 

private investors are not required to provide further details in their 

personal tax return. However, if there is a tax assessment (e.g., for 

loss offsets), the generated income must still be declared. Information 

necessary for the purposes of income tax assessment is provided 

in the Basis of Taxation according to article 5 InvStg; please 

refer to the table at the end of the report, which also provides information 

necessary for business investors. 

48 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 TAx INFORmATION FOR THE INVESTOR

Treatment of RC unit class distribution and retained income 

for profits tax purposes 

For units held As As business As business 

private assets of assets of 

assets investors investors subject 

subject to to corporate 

income tax income tax 

in EUR in EUR in EUR 

Net income 

for the year (InvR) 1.1990 1.1990 1.1990 

Profit carried forward 

from the previous year 4.6872 4.6872 4.6872 

Income adjustment 

to profit carried forward 0.8896 0.8896 0.8896 

Available for distribution 6.7757 6.7757 6.7757 

less retention 0.0200 0.0200 0.0200 

less amount carried 

forward to new account 5.3558 5.3558 5.3558 

Distribution per unit 1.4000 1.4000 1.4000 

plus paid foreign taxes 0.2516 0.2516 0.2516 

Dividend distribution 

per unit 1.6516 1.6516 1.6516 

– Non-taxable amounts 0.5358 0.5358 0.5358 

– thereof actual distribution 

of capital gains 0.0000 0.0000 0.0000 

– thereof distributed liquidity 

in the form of depreciation 

(negative retained income) 0.5358 0.5358 0.5358 

– Dividend equivalent income 

from previous years 0.0347 0.0347 0.0347 

– Amount of dividend 1.0810 1.0810 1.0810 

– Amount of dividend 

equivalent income 0.0217 0.0217 0.0217 

Amount of taxable income 

apportioned to investor 1.1028 1.1028 1.1028 

of which is tax-free/not taxable: 

– capital gains on sales 

of securities (tax-free as 

private assets, taxable as 

business assets) 0.0000 – – 

– DTA tax-free foreign income 0.7680 0.7680 0.7680 

plus non-taxable amounts 0.5358 0.5358 0.5358 

less dividend equivalent 

income 0.0217 0.0217 0.0217 

less paid foreign taxes 0.2516 0.2516 0.2516 


income from previous years 0.0347 0.0347 0.0347 

Tax-free/non-taxable 

distribution per unit 1.0652 1.0652 1.0652 

Taxable distribution 

per unit 0.3348 0.3348 0.3348 

Note on progressive income: 

The exemption with progression is EUR 0.00. 

Treatment of IC unit class distribution and retained income 

for profits tax purposes 

For units held As As business As business 

private assets of assets of 

assets investors investors subject 

subject to to corporate 

income tax income tax 

in EUR in EUR in EUR 

Net income 

for the year (InvR) 

Profit carried forward 

1.3894 1.3894 1.3894 

from the previous year 


5.2074 5.2074 5.2074 

to profit carried forward 0.4967 0.4967 0.4967 

Available for distribution 7.0935 7.0935 7.0935 

less retention 

less amount carried 

0.0200 0.0200 0.0200 

forward to new account 5.4734 5.4734 5.4734 

Distribution per unit 1.6000 1.6000 1.6000 

plus paid foreign taxes 

Dividend distribution 

0.2531 0.2531 0.2531 

per unit 1.8531 1.8531 1.8531 

– Non-taxable amounts 

– thereof actual distribution 

0.5246 0.5246 0.5246 

of capital gains 

– thereof distributed liquidity 

in the form of depreciation 

0.0000 0.0000 0.0000 

(negative retained income) 0.5246 

– Dividend equivalent income 

0.5246 0.5246 

from previous years 0.0002 0.0002 0.0002 



1.3283 1.3283 1.3283 

equivalent income 

Amount of taxable income 

0.0125 0.0125 0.0125 

apportioned to investor 

of which is tax-free/not taxable: 

– capital gains on sales 

of securities (tax-free as 

private assets, taxable as 

1.3408 1.3408 1.3408 

business assets) 0.0000 – – 

– DTA tax-free foreign income 0.8808 0.8808 0.8808 

plus non-taxable amounts 


0.5246 0.5246 0.5246 

income 0.0125 0.0125 0.0125 

less paid foreign taxes 


0.2531 0.2531 0.2531 

income from previous years 0.0002 

Tax-free/non-taxable 

0.0002 0.0002 

distribution per unit 

Taxable distribution 

1.1399 1.1399 1.1399 

per unit 0.4601 0.4601 0.4601 

Note on progressive income: 

The exemption with progression is EUR 0.00. 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 TAx INFORmATION FOR THE INVESTOR 49

Taxation at fund level 

The statements on tax regulations apply only to investors who are 

fully liable for tax in germany. We recommend that foreign investors 

contact their tax adviser before acquiring units in the investment 

fund described in order to clarify possible tax implications 

from such acquisition in their respective countries or residence. 

As a special-purpose fund, the investment fund is exempt from 

corporate and trade tax. However, as income from capital assets 

the taxable income of the investment fund is subject to income 

tax at the level of the private investor if such income combined 

with other capital income exceeds the flat-rate saver’s allowance of 

EUR 801 (for single people or married couples filing separately) or 

EUR 1,602 (for couples filing jointly) per year. 

Income from capital assets is in principle subject to a tax deduction 

of 25% (plus solidarity surcharge and, if applicable, church tax). 

Principally, this income is taxable in the year it was earned. Income 

from capital assets includes income distributed by the investment 

fund, dividend equivalent income, interim profits, as well as profits 

from the purchase and sale of fund units if these were or are 

acquired after December 31, 2008. 

For private investors, the tax deduction generally has a compensatory 

effect (so-called flat-rate withholding tax), so the income from 

capital assets normally does not have to be declared in income tax. 

When the tax is deducted, the custodian institution has generally 

already taken into account the loss offsets and foreign withholding 

tax. 

However, the tax deduction has no compensatory effect when the 

personal tax rate is lower than the withholding rate of 25%. In this 

case, income from capital assets is declared with the income tax. 

The tax authority then applies the lower personal tax rate and takes 

into account the tax withheld when calculating the personal tax 

debt (so-called “reduced rate test”). 

If no tax deduction has been made on income from capital assets 

(because, for example, gains from the sale of fund units are generated 

in a foreign securities account), these gains must be included 

in the income tax declaration. During the assessment, income from 

capital assets may also be subject to the withholding rate of 25% 

or the lower personal tax rate. 

In spite of the tax deduction and higher personal tax rate, information 

on income from capital assets may be required when extraordinary 

expenses or special expenses (e.g., donations) are claimed 

on the income tax declaration. 

If the units are held in business assets, the income is treated 

as business income for tax purposes. In determining taxable 

income and income subject to investment income tax, tax legislation 

requires that certain distinctions be made with regard to the 

income components. 

Taxation of fund profits at investor level 

Private investors 

Distributed or retained interest, income equivalent to interest and 

foreign dividends are subject to a tax deduction of 25% when held 

in custody in germany (plus solidarity surcharge and church tax, 

where applicable). 

The tax deduction may be dispensed with if the investor is a ger- 

man-resident taxpayer and presents an exemption instruction, provided 

the taxable components of income do not exceed EUR 810 

for individuals or EUR 1,602 for married couples filing jointly. 

The same applies when a non-assessment certificate is presented 

and for foreign investors upon proof of foreign status for tax 

purposes. 

If the german investor’s units of an investment fund that distrib- 

utes in accordance with tax law are held in a german securities 

account with the investment company or with a credit institution 

(safe custody scenario), the custodian institution will not, in 

its capacity as the paying agent, deduct the tax if it is presented, 

before the specified distribution date, with an exemption instruction 

(completed using official forms) for a sufficient amount, or 

with a non-assessment certificate that has been issued by the tax 

authorities for a period of three years. In this case, the full distribution 

is credited to the investor with no deduction. 

For investment funds that retain profits in accordance with tax law, 

the tax deduction of 25% (plus solidarity surcharge) on investment 

fund income retained before January 1, 2012, that is subject to the 

tax deduction is carried out by the investment company itself. The 

issue and redemption price of fund units is reduced by the amount 

of tax deducted during the business year. Since the investment 

company is usually not familiar with the investors, church tax cannot 

be withheld, so investors subject to church tax will have to 

make the relevant entries in their income tax returns. 

For income retentions after December 31, 2011, the investment 

fund will make the investment income tax along with the maximum 

additional taxes accruing (solidarity surcharge and church tax) 

available to the party liable to pay (custodian institution or last paying 

agent in germany). The custodian institutions, as parties liable 

to pay, will make the tax deduction like in the case of a distribution 

while taking into account the personal relationships of the investors 

so that particularly church tax, if applicable, can be paid. Should the 

investment fund make amounts that do not need to be paid available 

to the parties liable to pay, a reimbursement shall take place. 

If the investor’s units are held in a securities account with a ger- 

man credit institution or with a german investment company, the 

tax deduction will be credited to the investor’s account upon presentation, 

before the end of the business year of the investment 

fund, of an exemption instruction or a non-assessment certificate 


to the custodian institution (or, beginning in 2012, the amount 

made available to the custodian institutions). 

If the exemption instruction or the non-assessment certificate is 

not submitted or is not submitted on time, the investor will, upon 

request, receive a tax certificate from the custodian institution, 

confirming the amount of withholding tax withheld and deducted 

plus the solidarity surcharge. The investor then has the opportunity 

to have the tax deduction credited against his income tax liability in 

the income tax assessment. 

In the event that units of an investment fund are not held in a 

securities account and coupons for these units are presented to a 

domestic credit institution (own custody), the 25% tax deduction, 

plus solidarity surcharge, will be withheld. 

The tax authorities are currently of the view that dividends from 

foreign (real estate) capital investment companies as so-called 

cross-dividends may not be exempt from tax. 

Profits from the sale of German and foreign properties 

outside the ten-year period since acquisition 

Profits generated at investment fund level from the sale of german 

and foreign properties outside the ten-year period are tax-exempt 

for the investor when distributed. 

Foreign rental income and profits from the sale 

of foreign properties within ten years of acquisition 

Foreign rental income and profits from the sale of foreign properties, 

for which germany has waived taxation on the basis of a 

double taxation agreement (exemption method) are also tax-free 

(generally). The “exemption with progression” must be taken into 

account for capital gains and for rental income from non-EU countries. 

According to the latest court decisions, capital gains realized 

on real estate in the United Kingdom are taxable in germany if taxation 

does not occur or only occurs to a small extent in the United 

Kingdom. 

If, by way of exception, the calculation method was agreed in the 

relevant double-taxation agreement or no double-taxation agreement 

has been concluded, the statements concerning the treatment 

of profits from the sale of germany properties within ten 

years of acquisition apply accordingly. The taxes paid in the countries 

of origin may also be deducted from german income tax if 

the taxes paid have not already been taken into account as incomerelated 

expenses at the level of the investment fund. 

Gains from the sale of securities, gains from forward 

transactions and income from option writer premiums 

gains from sales of equities, participation rights that are similar to 

share capital and investment units, gains from forward transactions 

and income from option writer premiums realized at the level of 

the investment fund are not taxed at investor level as long as it is 

not distributed. In addition, gains from the sale of capital assets 

listed in article 1 (3), sentence 3 no. 1 (a) to (f) InvStg are not taxed 

at the investor level if they are not distributed. 

This includes the following capital assets: 

a) capital assets that have an issue yield, 

b) “normal” bonds and unsecuritized receivables with fixed coupons 

as well as down-rating bonds, floaters and reverse floaters, 

c) risk certificates that replicate the price of an equity or a published 

index for multiple equities at a ratio of 1:1, 

d) equity-linked bonds, exchange bonds and convertible bonds, 

e) bonds without separate income that are traded “flat” and debt 

dividend rights and 

f) cum-warrant bonds. 

If gains from sales of the above-described securities/capital assets, 

gains from forward transactions as well as income from option 

writer premiums are distributed, they are, in principle, taxable 

and are subject to the withholding rate of 25% (plus solidarity surcharge 

and church tax, if applicable) if the units are held in a securities 

account with a domestic institution. However, distributed gains 

from sales of securities and from forward transactions are taxexempt 

if the securities were acquired or the forward trans actions 

entered into at investment fund level before January 1, 2009. 

gains from the sale of capital assets that are not listed above are 

treated like interest payments for tax purposes (see above). 

German rental income, dividends (in particularly from 

special purpose vehicles) and gains from the sale of 

Germany properties within ten years of acquisition 

Domestic rents, dividends from domestic (real estate) corporations 

and gains from the sale of domestic properties within ten years 

of acquisition which are distributed or retained by the investment 

fund are generally subject to income tax at the investor level. 

The custodian institution or the investment company will withhold 

a tax of 25% (plus solidarity surcharge) from income distributions 

or retentions made before January 1, 2012. In addition, the custodian 

institution takes any application for the retention of church tax 

into account for distributions. 

The investor is refunded the full amount of the tax deduction of 

25% (plus solidarity surcharge), provided the units are kept at the 

capital investment company or at a german credit institution and an 

exemption instruction for a sufficient amount or a non-assessment 

certificate is available. Otherwise, he can offset the tax deduction 

of 25% (plus solidarity surcharge) against his personal tax liability 

by enclosing the tax certificate from the custodian institution. 

For income distributions and retentions after December 31, 2011, 

the investment fund will make the investment income tax along 

with the maximum additional taxes accruing (solidarity surcharge 

and church tax) available to the party liable to pay (custodian institu- 


Taxation of fund profits at investor level (cont.) 

tion or last paying agent in germany). The custodian institutions, as 

parties liable to pay, will make the tax deduction while taking into 

account the personal relationships of the investors so that particularly 

church tax, if applicable, can be paid. Should the investment 

fund make amounts that do not need to be paid available to the 

custodian institutions, a reimbursement shall take place. 

Income from holdings in German 

and foreign real estate corporations 

For tax purposes, income from holdings in german and foreign real 

estate corporations are accounted for at the level of the investment 

fund at the end of the business year of the corporation. It is 

assessed using general tax principles. 

Negative taxable income 

Negative income is offset with equivalent positive income at the 

level of the investment fund. Any remaining negative income will 

be carried forward at the level of the investment fund for tax purposes. 

It may then be offset against future, equivalent positive taxable 

income in later years at the level of the investment fund. Negative 

taxable income may not be attributed to the investor directly. 

This means that these negative amounts do not have an effect 

on the investor’s income tax until the period of assessment (tax 

year) in which the business year of the investment fund ends, or in 

which the distribution is made for the business year of the investment 

fund in which the negative tax income was offset at the level 

of the investment fund. These negative amounts may not be taken 

into account in the investor’s income taxes prior to this. 

Payments on assets 

Payments on assets (for example, building finance interest) are 

non-taxable. Nevertheless, asset payouts which the investor has 

received during the holding period are to be included in taxable 

income from selling fund units, i.e. they increase taxable gains. 

Capital gains at the level of the investor 

If units of an investment fund acquired after December 31, 2008, 

are sold by a private investor, they will be subject to the flat-rate 

withholding tax. If the units are held in a securities account with a 

domestic custodian institution, the custodian institution will withhold 

the withholding tax. The withholding tax of 25% (plus solidarity 

surcharge and church tax, if applicable) can be avoided by 

presenting a sufficient exemption instruction or non-assessment 

certificate. 

gains on units acquired by private investors before January 1, 2009, 

are tax-exempt. 

When calculating capital gains, interim profits achieved at the 

time of acquisition must be deducted from the acquisition costs, 

and interim profits achieved at the time of sale must be deducted 

from the sales price, in order to avoid duplicate income taxation on 

interim profits (see below). moreover, any retained income which 

has already been taxed must be deducted from the sales price so 

that there is no double taxation in this respect either. 

gains on the sale of fund units acquired after December 31, 2008, 

are tax-exempt to the extent that they are attributable to income 

that is tax-exempt under a DTA that is realized during the term of 

holdings in the fund and that has not been reported by the investor 

(gain on holdings of real estate proportional to time held). 

On each valuation day, the capital investment company publishes 

the fund real estate profit as a percentage of the value of the 

investment unit. 

Units held as business assets 

(German-resident taxpayers) 

German rental income and interest income 

as well as income equivalent to interest 

german rental income, interest income and income equivalent 

to interest are generally taxable at the level of the investor. 

This applies irrespective of whether this income is reinvested or 

distributed. 

Exemptions from or refunds of the withheld tax can only take 

place if a non-assessment certificate is submitted. Otherwise, the 

investor is provided with a certificate for the withholding tax. 

Foreign rental income 

germany generally does not tax rental income from properties 

located outside germany (exemption resulting from a doubletaxation 

agreement). However, investors that are not corporations 

should note the “exemption with progression”. 



has been concluded, the taxes paid in the countries of origin 

may be offset against german income or corporate tax if the taxes 

paid have not already been taken into account as income-related 


Profits from the sale of German and foreign properties 

Retained profits from the sale of german and foreign properties are 

without consequence for the investor in relation to tax, provided 

the sale occurs at least ten years from purchase of the property at 

the fund level. The profits are not taxable until they are distributed, 

although germany generally does not tax foreign profits (exemption 

resulting from a double-taxation agreement). 

Profits from the sale of german and foreign properties within the 

ten-year period must be taken into account for tax purposes at the 

investor level upon income retention or distribution. The profits 

from the sale of german properties are taxable in full. 

germany generally does not tax profits from the sale of foreign 

properties (exemption resulting from a double-taxation agreement). 

However, investors that are not corporations should note the 

“exemption with progression”. According to the latest court decisions, 

capital gains realized on real estate in the United Kingdom 


are taxable in germany if taxation does not occur or only occurs to 

a small extent in the United Kingdom. 



has been concluded, the taxes paid in the countries of origin 

may be offset against german income or corporate tax if the taxes 

paid have not already been taken into account as income-related 


Exemptions from or refunds of the withheld tax can only take 

place if a non-assessment certificate is submitted. Otherwise, the 

investor is provided with a certificate for the withholding tax. 

Gains from the sale of securities, gains from forward 

transactions and income from option writer premiums 

gains from sales of equities, participation rights that are similar to 

share capital and investment fund units, gains from forward transactions 

and income from option writer premiums realized at the 

level of the investment fund are not taxed at investor level if they 

are retained. In addition, gains from the sale of capital assets listed 

below are not taxed at the investor level if they are not distributed: 

a) capital assets that have an issue yield, 

b) “normal” bonds and unsecuritized receivables with fixed coupons 

as well as down-rating bonds, floaters and reverse floaters, 

c) risk certificates that replicate the price of an equity or a published 

index for multiple equities at a ratio of 1:1, 

d) equity-linked bonds, exchange bonds and convertible bonds, 

e) bonds without separate income that are traded “flat” and debt 

dividend rights and 

f) cum-warrant bonds. 

If these gains are distributed, they are accounted for at investor level 

for tax purposes. capital gains on equities are completely exempt 

from taxes for incorporated investors, while 40% of these gains are 

tax-exempt for other business investors, such as sole proprietors 

(partial-income procedure). In contrast, tax has to be paid on all gains 

from the disposal of bonds/capital assets, on gains from forward 

transactions and on income from option writer premiums. 

gains from the sale of capital assets that are not listed above are 

treated like interest payments for tax purposes (see above). 

Distributed gains from the sale of securities, distributed gains from 

forward transactions and distributed income from option writer 

premiums are, in principle, subject to withholding tax (investment 

income tax 25% plus solidarity surcharge). This does not apply to 

gains from the sale of securities acquired before January 1, 2009, 

and gains from forward transactions entered into before January 1, 

2009. The paying agent makes no withholding in particular when 

the investor is a corporation with unlimited tax liability or the capital 

income represents business income from a domestic company and 

the holder of the capital income has made an official declaration to 

the paying agent in this regard. 

German and foreign dividends 

(in particular from special purpose vehicles) 

Dividends distributed or retained by domestic or foreign special 

purpose vehicles on units held as business assets are not taxable 

for corporations, with the exception of dividends for corporations 

under the REIT Act (REITg). For business investors that are subject 

to income tax (e.g. individual companies), 60% of this income is 

taxable (partial income procedure). 

Domestic dividends are subject to the withholding tax (investment 

income tax 25% plus solidarity surcharge). 

Foreign dividends are generally subject to the withholding tax (investment 

income tax 25% plus solidarity surcharge). The paying agent 

makes no withholding in particular when the investor is a corporation 

with unlimited tax liability (whereby corporations within the meaning 

of article 1 (1) nos. 4 and 5 of the corporate Income Tax Act (KStg) 

are required to present a certificate from the competent tax authority 

to the paying agent) or the foreign dividends represent business 

income from a domestic company and the holder of the capital gains 

has made an official declaration to the paying agent in this regard. 

For investors subject to trade tax, dividend income partially 

exempted from income or corporate income tax must be added 

back when determining income for trade-tax purposes, and not 

deducted again. 

The amounts to be corrected per unit are available in the Basis 

of Taxation pursuant to article 5 InvStg at the end of the report. 

The tax authorities are currently of the view that dividends from 

foreign (real estate) capital investment companies as so-called 

cross-dividends may not be exempt from tax unless the investor 

is an (investment) company as defined in the corresponding double 

taxation agreement and a sufficiently high (cross) holding can be 

attributed to it. 

Income from holdings in German 

and foreign real estate corporations 

For tax purposes, income from holdings in german and foreign real 

estate corporations are accounted for at the level of the investment 

fund at the end of the business year of the corporation. It is 

assessed using general tax principles. 

Adjustment items 

Investors that prepare accounts must post an adjustment item for 

the difference between the dividend posted in accordance with 

commercial law and the income recorded for tax purposes (distributed 

and dividend equivalent income). In the 2010/2011 business 

year, this difference is EUR 0.2972 per unit for business investors 

subject to income tax as well as for business investors subject to 

corporate income tax. Investors in the Ic unit class that prepare 

accounts must post an adjustment item for the difference between 

the dividend posted in accordance with commercial law and the 

income recorded for tax purposes. This amount is EUR 0.2592 per 

unit for the 2010/2011 business year. 



The adjustment item is to be written back against income at 

the point in time of sale or redemption of the units, or when the 

retained profits are used for distribution. No distribution of retained 

income for tax purposes occurred in this year. 

Time at which income is received 

In respect of when the income of business investors is to be allocated 

for the purposes of taxation, it should be noted that – in 

accordance with the Federal ministry of Finance statement on the 

InvStg of August 18, 2009 – it is essentially the time of dividend 

resolution and not the point when dividends are actually distributed 

that is decisive. In the case of grundbesitz europa, whose business 

year ends on September 30, the dividend resolution and the actual 

distribution take place within different calendar years. The dividend 

resolution for the business year ended September 30, 2011, was 

adopted on December 30, 2011. 

Interest deduction ceiling 

Attention is hereby drawn to the fact that the distributed and dividend 

equivalent income includes interest income of EUR 0.1648 

per unit within the meaning of article 4h (3), sentence 3 of the 

Income Tax Act (EStg), namely, the so-called interest deduction 

ceiling (EUR 0.1961 per unit of the Ic unit class). 

Negative taxable income 

Negative income is offset with equivalent positive income at the 

level of the investment fund. Any remaining negative income will 

be carried forward at the level of the investment fund for tax purposes. 

It may then be offset against future, equivalent positive taxable 

income in later years at the level of the investment fund. Negative 

taxable income may not be attributed to the investor directly. 

This means that these negative amounts do not have an effect on 

the investor’s income tax or corporate income tax until the period 

of assessment (tax year) in which the business year of the investment 

fund ends, or in which the distribution is made for the business 

year of the investment fund in which the negative tax income 

was offset at the level of the investment fund. These negative 

amounts may not be taken into account in the investor’s income or 

corporate income taxes prior to this. 

Payments on assets 

Payments on assets (for example, building finance interest) are 

non-taxable. This means that investors preparing a balance sheet 

have to include distributions of capital as income in their financial 

statements and include a passive offsetting item as expense in 

their tax balance. This technically reduces the historical acquisition 

costs in a tax-neutral way. Alternatively, the amortized costs 

can be reduced by the pro rata amount of the distributed capital 

gains. 

Capital gains at the level of the investor 

Business investors do not have to pay tax on income from sales of 

units held as business assets to the extent that this income stems 

from foreign rents not yet received or not yet deemed received and 

realized or non-realized income of the investment fund from for- 

eign properties, provided germany has waived taxation (so-called 

real estate profit). 


the fund real estate profit as a percentage of the value of the 

investment unit. 

Additionally, corporations do not have to pay tax on profits from 

sales of units held as business assets to the extent that this profit 

stems from dividends not yet received or not yet deemed received 

and realized or non-realized income of the investment fund from 

domestic or foreign (real estate) capital investment companies 

(so-called equity profit). For business investors that are subject to 

income tax (e.g. individual companies), 60% of these capital gains 

are taxable. 


the fund equity profit as a percentage of the value of the investment 

unit. 

Non-resident taxpayers 

If a non-resident holds units in a distributing investment fund at a 

german custodian institution, no withholding tax is deducted from 

interest or similar income, gains from the disposal of securities, 

gains from forward transactions and foreign dividends provided the 

investor can present evidence of his non-residency. If the investor’s 

non-resident status is not brought to the attention of the custodian 

institution or if proof of such status is not supplied in time, the foreign 

investor is required to apply for a refund of the withholding tax 

pursuant to article 37 (2) of the Tax code (AO). This application is 

sent to the tax office responsible for the custodian institution. 

If a non-resident investor has deposited units of a retaining investment 

fund with a german custodian institution, the withholding tax 

of 25% plus solidarity surcharge (excluding taxes on domestic dividends) 

is refunded for income retentions taking place before January 

1, 2012, upon providing proof of non-resident status, provided 

these are not attributed to domestic dividends. If the refund application 

is not submitted in time, a refund pursuant to article 37 (2) 

of the Tax Law may be applied for even after the income retention 

date (as with distributing investment funds when proof of non-resident 

status is not submitted in time). If the income retention in this 

case takes place after December 31, 2011, no tax is withheld, provided 

the income is not from german dividends or german rental 

income. 

A tax deduction does in fact take place for german dividends and 

german rental income. The extent to which any offsetting or a 

refund of the tax deduction on german dividends will be possible 

for foreign investors will depend on the double taxation agreement 

concluded between the Federal Republic of germany and 

the country of domicile of the investor. A DTA refund of investment 

income tax on german dividends takes place through 

the german Federal central Tax Office (Bundeszentralamt für 

Steuern) in Bonn. 


Solidarity surcharge 

The withholding tax to be paid on distributed or retained income is 

subject to a solidarity surcharge of 5.5%. The solidarity surcharge 

can be offset against the income tax and corporate income tax. 

If there is no withholding tax or if the withholding tax is refunded in 

the case of an income retention prior to January 1, 2012, (for example 

due to an appropriate exemption instruction, a non-assessment 

certificate or proof of non-resident status), no solidarity surcharge 

will be deducted or the deducted solidarity surcharge will be 

refunded if it is retained. 

Church tax 

If the income tax debt is paid by the withholding tax deducted 

by the domestic custodian institution which maintains the securities 

account, the applicable church tax will be levied in addition 

to the withholding tax and pursuant to the church tax rate for the 

religious community to which the church tax payer belongs. For 

this purpose, church tax payers must inform the withholder in 

writing about their religious affiliation. moreover, married couples 

must declare the relationship between the capital income of each 

spouse and the total capital income of the couple so that church 

taxes can be broken down, withheld and deducted in line with this 

relationship. If no indication is made in this regard, the tax will be 

split evenly. 

The church tax is taken into account as a special expense at the 

time of the deduction of the withholding tax. 

Foreign withholding tax 

Some foreign income earned by the investment fund is subject to 

withholding taxes retained in the country of origin. 

The capital investment company can deduct the creditable withholding 

tax at the level of the investment fund like income-related 

expenses. In this case, the foreign withholding tax is not creditable 

or deductible at the investor level. 

If the capital investment company does not exercise its right to 

have foreign withholding taxes deducted at fund level, the withholding 

tax that may be offset will be taken into account at the 

time of the deduction of the withholding tax. 


Portions of the issue price for units issued which are attributable to 

earnings and can be included in distributions (income adjustment 

process) are to be treated the same as earnings attributable to 

these portions of the issue price for tax purposes. 

Separate determination, external audit 

The tax base set at investment fund level must be determined separately. 

The investment company must provide a statement of tax 

bases to the competent tax authority for this purpose. changes to 

the assessment returns, for example in the course of an external 

audit (article 11 (3) InvStg) by the tax authorities, will take effect 

in the business year in which the new assessment becomes final. 

This revised determination is attributed to the investor for tax purposes 

at the end of this business year or on the distribution date if 

there is a distribution for this business year. 

This means that any corrections of mistakes will have an impact on 

the investors who are invested in the investment fund at the time 

at which the mistakes are corrected. The tax consequences may 

be either positive or negative. 

Taxation on interim profits 

Interim profits comprise the amounts contained within the sale or 

redemption price for received or accrued interest and gains on the 

sale of capital receivables not included in article 1 (3), sentence 3, 

no. 1 InvStg that have not yet been distributed or retained by the 

fund and, consequently, have not yet become taxable on the part 

of the investor (for example, comparable with accrued interest on 

fixed-interest securities). The interim profit generated by the investment 

fund is subject to income tax for german-resident taxpayers 

upon redemption or sale of the units. Tax deductible on interim profit 

is 25% (plus a solidarity surcharge and, if applicable church tax). 

For private investors, any interim profit paid upon the purchase of 

units can be deducted from income tax as negative income in the 

year when the payment was made if an income adjustment is carried 

out and reference is made to this both in the publication of 

the interim profit and in the tax data to be certificated by professionals. 

It is already taken into account as revenue-reducing with 

respect to tax deduction. If interim profits are not published, 6% of 

the remuneration for redemption or sale of the investment units is 

to be allocated per year as interim profit. For corporate investors, 

the interim profit paid forms an integral part of the acquisition 

costs and is not to be adjusted. In the event of the redemption or 

sale of the investment unit, the interim profit received forms an 

integral part of the income from the sale. An adjustment is not to 

be carried out. 

Interim profits can also be regularly ascertained from accounts and 

income statements of the banks. 

Consequences of merging investment funds 

In the case where a german investment fund is merged with 

another german investment fund, silent reserves are not disclosed, 

either at investor level or at the level of the investment fund concerned, 

i.e. this process is tax-neutral. The same applies for the 

transfer of all assets of a german investment fund to a german 

investment company or to the assets of a division of a german 

investment company. If the investors in the transferring investment 

fund receive a cash payment within the meaning of article 

40h Invg, this is to be handled as a distribution of other income. 

Income generated by the transferring investment fund and not yet 

distributed is to be allocated for tax purposes to the investors as 

so-called dividend equivalent income on the transfer date. 



Transparent, semi-transparent 

and non-transparent taxation 

The above tax principles (so-called transparent taxation) only apply 

if all the tax bases within the meaning of article 5 (1) InvStg are 

published (so-called obligation to publish tax information). This is 

also true if the fund purchases units in other german funds and 

investment stock companies, Ec investment fund units and units 

in foreign investment vehicles which are not Ec fund units/shares 

(target funds within the meaning of article 10 InvStg) and these 

funds disclose their tax bases. 

The capital investment company makes every effort to disclose any 

tax base available to it. 

However, this disclosure cannot be guaranteed, in particular, if the 

investment fund has bought units in target funds which do not perform 

their disclosure duties as regards taxation. In this case, the 

distributions and the interim profits of the respective target fund, 

as well as 70% of the increase in value of the respective target 

fund during the prior calendar year (but being no less than 6% of 

the redemption price), shall be stated as taxable income for the 

investment fund. 

The investment company also endeavors to publish all bases of 

taxation, except those in article 5 (1) InvStg (such as in particular 

unit profits, real estate profits and interim profits). 

EU Savings Directive/Interest Information Regulation 

The Interest Information Regulation (ZIV – Zinsinformationsverordnung), 

which transposes council Directive 2003/48/Ec dated 

June 3, 2003, Official Journal of the EU No. L157 p. 38, is intended 

to ensure the effective taxation of interest income of natural persons 

in the territory of the EU. The EU has entered into agreements 

with some non-member states (in particular Switzerland, 

Liechtenstein, channel Islands, monaco and Andorra) that largely 

correspond to the EU Savings Directive. 

Interest income credited by a german credit institution (acting as 

paying agent) to an individual residing in a European country other 

than germany or in specific third-country states is reported by the 

german credit institution to the german Federal central Tax Office, 

which ultimately reports the interest income to the local foreign tax 

offices. 

correspondingly, interest income received by a natural person residing 

in germany from a European credit institution outside germany 

or in certain third-country states is ultimately reported by the foreign 

bank to the local tax authority in germany. Alternatively, some foreign 

countries deduct the withholding taxes that are due in germany. 

This primarily affects private investors living within the European 

Union or in the participating third-country states who maintain their 

custody accounts or accounts in another EU country and earn interest 

income. 

Luxembourg and Switzerland are among the countries that have 

committed to deduct a 20% withholding tax on interest income 

(from July 1, 2011: 35%). Investors receive a certificate documenting 

the withholding tax which can be used to deduct this tax on 

their income tax return. 

Private investors have the alternative option of applying for exemption 

from withholding abroad by authorizing the foreign bank to 

voluntarily disclose their interest income. This allows the financial 

institution to waive withholding and instead report the income to 

the legally prescribed tax authorities. 

According to the Interest Information Regulation, the investment 

company must indicate for each domestic and foreign fund 

whether it is subject to the Interest Information Regulation (in 

scope) or not (out of scope). 

For this evaluation, the Interest Information Regulation contains 

two substantial investment restrictions. 

If no more than 15% of the assets of a fund consist of claims 

within the meaning of the Interest Information Regulation, the paying 

agents, which ultimately use the data reported by the investment 

company, are not required to notify the german Federal 

central Tax Office. Otherwise, if the 15% limit is exceeded, this 

triggers an obligation for the paying agents to report the interest 

component contained in the distribution to the german Federal 

central Tax Office. 

If the 40% limit is exceeded (a 25% limit applies to business 

years ending after December 31, 2010), the interest component 

contained in the redemption or sale of the fund units must be 

reported. In the case of a distributing fund, the interest component 

contained in a distribution must also be reported to the german 

Federal central Tax Office. For a retaining fund, the reporting obligation 

exists only if the fund unit is redeemed or sold. 

Real estate transfer tax 

No real estate transfer tax is incurred when units in the investment 

fund are sold. 

Real estate profits and unit profits 

In the past, the real estate and equity profit was only of significance 

for investors who held their units in business assets. The 

introduction of the flat-rate withholding tax makes the real estate 

profit of relevance to private investors. 

The fund real estate profit includes foreign rental income exempt 

from tax on the basis of a double taxation agreement that has not 

yet been received or is deemed not yet received, or other foreign 

income (for example, permanent establishment income), in addition 

to realized and unrealized changes in value of foreign properties, 

insofar as germany has waived taxation of these rental incomes and 

changes in value in accordance with a double taxation agreement. 


The fund unit profit includes the dividend income of domestic and 

foreign (real estate) corporations that has not yet been paid to the 

investor or is deemed not yet paid, in addition to realized or unrealized 

changes in value of the investment fund’s holdings in (real 

estate) corporations. 

On each day of trading, the capital investment company publishes 

the fund real estate profit and fund unit profit as a percentage 

of the value of the investment unit. In addition to other sources, 

individual rates can be obtained from the RREEF Investment gmbH 

website, www.rreef.com, under grundbesitz europa/fund data. 

On the day of purchase or sale of the units (and as of the balance 

sheet date), the unitholder multiplies the posted percentages with 

the respective redemption price in order to determine the absolute 

investor real estate profit or investor unit profit. 

The difference between the two values represents the investor 

real estate profit or unit profit pro rata for the time of possession. 

In future, profits from the sale or redemption of units acquired 

by private investors after December 31, 2008, will be subject to the 

flat-rate withholding tax, irrespective of the period of ownership. 

For the purposes of determining income contained within sale proceeds 

that is exempted from tax on the basis of a double taxation 

agreement (increases in value and current income), in future, the 

respective amount will be represented within real estate profits. 

A standard computation applies for the calculation of real estate 

profit for both business and private investors. 

Insofar as resulting from absolute investor real estate profit pro 

rata in relation to the time of possession, profit from the sale of 

investment units is fully exempt from taxation for investors. 

For investors holding their units in business assets and who are 

taxed in accordance with the corporate Income Tax Act (KStg), 

insofar as resulting from the absolute investor unit profit pro rata to 

the time of possession, profit from the sale of investment units is, 

as a rule, 95% tax-free (5% of this tax-free profit is deemed to be 

nondeductible operating expenses). 

For investors holding their units in corporate assets who are subject 

to income tax, insofar as resulting from the investor unit profit 

pro rata for the time of possession, 40% of profit from the sale of 

investment units is tax-free. 

3% tax in France 

Since January 1, 2008, real estate investment funds have generally 

been subject to a special French tax (the so-called “3% French 

tax”) imposed annually on the market value of properties located in 

France. However, the French law may exempt French real estate 

investment funds and comparable foreign real estate investment 

funds from the 3% tax. In the opinion of the French tax authorities, 

german real estate investment funds are not generally comparable 

to French real estate investment funds and, consequently, will generally 

not be exempt from the 3% tax. 

In order to gain exemption from this tax, the real estate investment 

fund grundbesitz europa must submit to the French tax authorities 

an annual declaration indicating the details of French real estate 

held on January 1 of any given year, as well as the names of unitholders 

with a 1% or greater share in the investment fund as of 

January 1 of that year. 

The number of units which correspond to 1% of the investment 

fund as on January 1 of any given year can be found in the fund 

management report. 

In order to allow the investment fund to comply with the aforementioned 

disclosure obligation and consequently avoid imposition 

of the 3% French tax, we ask that any investors holding a share 

of 1% or more in the grundbesitz europa investment fund as of 

January 1 of any given year provide us with a written declaration of 

consent to the disclosure of their name, address and shareholding 

to the French tax authorities (address: RREEF Investment gmbH, 

Evidenzstelle, mainzer Landstr. 178 –190, 60327 Frankfurt/main, 

germany). 

This does not have financial implications for you nor does it trigger 

any disclosure or reporting obligations on your part vis-à-vis the 

French tax authorities, provided that the holding in the investment 

fund amounted to less than 5% on January 1 and that it is the only 

French real estate investment held. 

A holding in grundbesitz europa of at least 1% corresponded to 

681,530 units as of January 1, 2011. 

If your investment ratio on January 1 amounted to 5% or more or 

you held other real estate investments in France, either directly or 

indirectly, you may be subject to taxation due to your holdings in 

French real estate and you must apply for tax exemption yourself 

by submitting your own declaration to the French tax authorities. 

general circumstances of exemption are, however, available to 

various types of investors; natural persons and listed companies, 

for example, are exempt from the 3% tax. In such cases it is not 

necessary to submit a separate declaration. 

A holding in grundbesitz europa of at least 5% corresponded to 

3,407,652 units as of January 1, 2011. 

For additional information on a potential obligation to submit a 

declaration on your part, we recommend that investors consult a 

French tax adviser. 

Legal and tax risk 

A change in mistakenly established tax bases for previous business 

years (e.g., by the external auditor) may lead, when a correction is 



essentially disadvantageous to the investor, to the investor having 

to bear the tax burden for previous business years even though that 

investor may not have been invested in the investment fund at that 

time. conversely, the situation may arise where investors may no 

longer benefit from an essentially advantageous correction relating 

to the current and the previous financial years in which they were 

invested in the investment fund because they have redeemed or 

sold their units before the related change is implemented. 

In addition, a correction of tax information may result in income that 

is subject to taxation or tax advantages being actually assessed for 

tax purposes in a different tax assessment period from the period 

that is really appropriate this could have a negative impact on the 

individual investor. 


castellón de la Plana, La Salera 


ASIS OF tAxAtIOn puRSuAnt tO ARtIcle 5 (1), nOS. 1 And 2, InvStg 

FOR tHe ReAl eStAte InveStment Fund gRundbeSItz euROpA 

(Rc unIt clASS) 

ISIN: DE0009807008 

Business year: October 1, 2010, through September 30, 2011, Final distribution on January 12, 2012 

Unit certificates in circulation at the end of the business year: 62,888,898 

Article 5 (1), nos. 1 and 2, InvStg Private investors Unincorp. corporations corporations 

companies/ Art. 8b I + II Art. 8b VII + VIII 

Sole props. KStg KStg 


Distribution 1.4000 1.4000 1.4000 1.4000 

plus paid foreign taxes 0.2516 0.2516 0.2516 0.2516 

less refunded foreign taxes 0.0000 0.0000 0.0000 0.0000 

1a) Dividend distribution per unit 1.6516 1.6516 1.6516 1.6516 

Non-taxable capital redemption/distribution of capital gains 0.5358 0.5358 0.5358 0.5358 

thereof actual distribution of capital gains 0.0000 0.0000 0.0000 0.0000 

thereof distributed liquidity in the form of depreciation (negative retained income) 0.5358 0.5358 0.5358 0.5358 

Dividend equivalent income from previous years 0.0347 0.0347 0.0347 0.0347 

1b) Amount of dividend 1.0810 1.0810 1.0810 1.0810 

2. Amount of dividend equivalent income 0.0217 0.0217 0.0217 0.0217 

Amount of income apportioned to investor 

Included in distribution/dividend equivalent income: 

1.1028 1.1028 1.1028 1.1028 

1 c bb) Tax-exempt capital gains within private assets from securities, 

subscription rights and forward transactions 0.0000 – – – 

1 c cc) Ordinary income within the meaning of article 3, no. 40 

of the Income Tax Act (EStg) – 0.0000 – – 

1 c dd) Ordinary income within the meaning of article 8b I 

of the corporate Income Tax Act (KStg) – – 0.0000 – 

1 c ee) capital gains within the meaning of article 3, no. 40 


1 c ff) capital gains within the meaning of article 8b II 


1 c gg) Tax-free income from the sale of subscription rights 

on bonus units in corporations 0.0000 0.0000 0.0000 – 

1 c hh) Tax-free profits from the purchase and sale of german 

and foreign properties outside the ten-year period 0.0000 – – – 

1 c ii) Income exempt from tax on account of double taxation agreements 

(particularly foreign rental income and profits from the purchase 

and sale of foreign properties) 0.7680 0.7680 0.7680 0.7680 

1 c jj) Foreign income on which foreign withholding tax has actually 

been levied, insofar as the foreign withholding tax has not been treated 

as income-related expenses 0.0000 0.0000 0.0000 0.0000 

of which attributable to interest/rents 0.0000 0.0000 0.0000 0.0000 

of which attributable to dividends 0.0000 0.0000 0.0000 0.0000 

of which attributable to REIT income 0.0000 0.0000 0.0000 0.0000 

1 c kk) Foreign income on which foreign withholding tax is deemed 

to have been levied (notional withholding tax) 0.0000 0.0000 0.0000 0.0000 

1 c ll) Income within the meaning of article 2 (2a) of the Investment Tax Act (InvStg) – 0.1648 0.1648 0.1648 

1 d) Basis of assessment for investment income tax at a rate of 25% 0.3348 0.3348 0.3348 0.3348 

of which attributable to domestic dividends (article 7 (3) InvStg) 0.0000 0.0000 0.0000 0.0000 

1 e) creditable/refundable withholding tax on capital income 25% 1) 0.0837 0.0837 0.0837 0.0837 


1 f aa) creditable or deductible foreign withholding tax2) 0.0000 0.0000 0.0000 0.0000 




1 f bb) Deductible foreign withholding tax 0.0000 0.0000 0.0000 0.0000 

1 f cc) Notional foreign withholding tax2) 0.0000 0.0000 0.0000 0.0000 

1 g) Deduction for depreciation or depletion (of properties) 0.5358 0.5358 0.5358 0.5358 

1) The amount of the investment income tax to be credited or refunded is shown without the solidarity surcharge. 

2) The creditable foreign (notional) withholding tax is presented for private investors before taking into account the maximum lump sum. 


Certification pursuant to article 5 (1), sentence 1, no. 3, 

of the Investment Tax Act (InvStG) regarding the 

creation of taxation information for the investment fund 

„grundbesitz europa“ (RC unit class) for the period from 

October 1, 2010, through September 30, 2011 

To RREEF Investment gmbH (hereinafter: the company): 

The company has commissioned us, on the basis of an audit 

of the accounts and records performed by an auditor and of the 

audited annual report for the above-mentioned investment fund 

for the stated period, to ascertain the tax information pursuant to 

article 5 (1), sentence 1, nos. 1 and 2, of the Investment Tax Act 

(InvStg) and to issue a certificate pursuant to article 5 (1), sentence 

1, no. 3, InvStg as to whether the tax information is in compliance 

with rules prescribed by german tax law. 

Our task is, on the basis of an audit of the accounts and records 

performed by an auditor and of the audited annual report for the 

above-mentioned investment fund, to ascertain the information 

pursuant to article 5 (1), sentence 1 nos. 1 and 2, InvStg in compliance 

with the rules prescribed by german tax law and to establish 

that an income adjustment calculation was carried out. An evaluation 

of the correctness of this documentation and the information 

from the company did not form part of our remit. 

Within the scope of the reconciliation statement, the capital investments, 

the income and expenditure, as well as their classification 

as income-related expenses, are assessed for tax purposes. Insofar 

as the company has invested assets in units of target funds, 

our activity is limited to ascertaining whether the taxation information 

pertaining to these target funds has been correctly adopted 

in accordance with this certification pursuant to article 5 (1), sentence 

1, no. 3, InvStg. We have not audited the corresponding 

taxation information. 

The ascertainment of the taxation information pursuant to 

article 5 (1), sentence 1, nos. 1 and 2, InvStg is based on the 

interpretation of the applicable tax laws. Insofar as multiple possible 

interpretations exist, the decision in this regard was incumbent 

upon the legal representatives of the company. During the 

creation, we were satisfied that the respective decision taken was 

supported, to a reasonable extent, by reliance upon statutory rationale, 

court decisions, pertinent specialist literature and opinions 

published by the financial authorities. Reference is hereby drawn to 

the fact that any future legal developments, or particularly any new 

findings originating from court decisions, could result in an evaluation 

that is different to the selected interpretation. 

It is on this basis that we ascertained the tax information pursuant 

to article 5 (1), sentence 1, nos. 1 and 2, InvStg in compliance with 

the rules prescribed by german tax law. Figures from an income 

adjustment were included in the ascertainment. 

Frankfurt/main, December 1, 2011 

KPmg Ag 


Stefan Schmidt p.p. 

Attorney-at-law Barbara Bültmann 

Tax accountant Attorney-at-law 

Tax accountant 


ASIS OF tAxAtIOn puRSuAnt tO ARtIcle 5 (1), nOS. 1 And 2, InvStg 

FOR tHe ReAl eStAte InveStment Fund gRundbeSItz euROpA 

(Ic unIt clASS) 

ISIN: DE000A0NDW81 

Business year: October 1, 2010, through September 30, 2011, Final distribution on January 12, 2012 

Unit certificates in circulation at the end of the business year: 15,506,668 

Article 5 (1), nos. 1 and 2, InvStg Private investors Unincorp. corporations corporations 

companies/ Art. 8b I + II Art. 8b VII + VIII 

Sole props. KStg KStg 


Distribution 1.6000 1.6000 1.6000 1.6000 

plus paid foreign taxes 0.2531 0.2531 0.2531 0.2531 

less refunded foreign taxes 0.0000 0.0000 0.0000 0.0000 

1a) Dividend distribution per unit 1.8531 1.8531 1.8531 1.8531 

Non-taxable amounts 0.5246 0.5246 0.5246 0.5246 

thereof actual distribution of capital gains 0.0000 0.0000 0.0000 0.0000 

thereof distributed liquidity in the form of depreciation (negative retained income) 0.5246 0.5246 0.5246 0.5246 

Dividend equivalent income from previous years 0.0002 0.0002 0.0002 0.0002 

1b) Amount of dividend 1.3283 1.3283 1.3283 1.3283 

2. Amount of dividend equivalent income 0.0125 0.0125 0.0125 0.0125 

Amount of income apportioned to investor 

Included in distribution/dividend equivalent income: 

1.3408 1.3408 1.3408 1.3408 

1 c bb) Tax-exempt capital gains within private assets from securities, 

subscription rights and forward transactions 0.0000 – – – 

1 c cc) Ordinary income within the meaning of article 3, no. 40 


1 c dd) Ordinary income within the meaning of article 8b I 


1 c ee) capital gains within the meaning of article 3, no. 40 


1 c ff) capital gains within the meaning of article 8b II 


1 c gg) Tax-free income from the sale of subscription rights 

on bonus units in corporations 0.0000 0.0000 0.0000 – 

1 c hh) Tax-free profits from the purchase and sale of german 

and foreign properties outside the ten-year period 0.0000 – – – 

1 c ii) Income exempt from tax on account of double taxation agreements 

(particularly foreign rental income and profits from the purchase 

and sale of foreign properties) 0.8808 0.8808 0.8808 0.8808 

1 c jj) Foreign income on which foreign withholding tax has actually 

been levied, insofar as the foreign withholding tax has not been treated 

as income-related expenses 0.0000 0.0000 0.0000 0.0000 




1 c kk) Foreign income on which foreign withholding tax is deemed 

to have been levied (notional withholding tax) 0.0000 0.0000 0.0000 0.0000 

1 c ll) Income within the meaning of article 2 (2a) of the Investment Tax Act (InvStg) – 0.1961 0.1961 0.1961 

1 d) Basis of assessment for investment income tax at a rate of 25% 0.4601 0.4601 0.4601 0.4601 


1 e) creditable/refundable withholding tax on capital income 25% 1) 0.1150 0.1150 0.1150 0.1150 


1 f aa) creditable or deductible foreign withholding tax2) 0.0000 0.0000 0.0000 0.0000 




1 f bb) Deductible foreign withholding tax 0.0000 0.0000 0.0000 0.0000 

1 f cc) Notional foreign withholding tax2) 0.0000 0.0000 0.0000 0.0000 

1 g) Deduction for depreciation or depletion (of properties) 0.5246 0.5246 0.5246 0.5246 

1) The amount of the investment income tax to be credited or refunded is shown without the solidarity surcharge. 

2) The creditable foreign (notional) withholding tax is presented for private investors before taking into account the maximum lump sum. 


Certification pursuant to article 5 (1), sentence 1, no. 3, 

of the Investment Tax Act (InvStG) regarding the 

creation of taxation information for the investment fund 

„grundbesitz europa“ (RC unit class) for the period from 

October 1, 2010, through September 30, 2011 

To RREEF Investment gmbH (hereinafter: the company): 

The company has commissioned us, on the basis of an audit 

of the accounts and records performed by an auditor and of the 

audited annual report for the above-mentioned investment fund 

for the stated period, to ascertain the tax information pursuant to 

article 5 (1), sentence 1, nos. 1 and 2, of the Investment Tax Act 

(InvStg) and to issue a certificate pursuant to article 5 (1), sentence 

1, no. 3, InvStg as to whether the tax information is in compliance 

with rules prescribed by german tax law. 

Our task is, on the basis of an audit of the accounts and records 

performed by an auditor and of the audited annual report for the 

above-mentioned investment fund, to ascertain the information 

pursuant to article 5 (1), sentence 1 nos. 1 and 2, InvStg in compliance 

with the rules prescribed by german tax law and to establish 

that an income adjustment calculation was carried out. An evaluation 

of the correctness of this documentation and the information 

from the company did not form part of our remit. 

Within the scope of the reconciliation statement, the capital investments, 

the income and expenditure, as well as their classification 

as income-related expenses, are assessed for tax purposes. Insofar 

as the company has invested assets in units of target funds, 

our activity is limited to ascertaining whether the taxation information 

pertaining to these target funds has been correctly adopted 

in accordance with this certification pursuant to article 5 (1), sentence 

1, no. 3, InvStg. We have not audited the corresponding 

taxation information. 

The ascertainment of the taxation information pursuant to article 

5 (1), sentence 1, nos. 1 and 2, InvStg is based on the interpretation 

of the applicable tax laws. Insofar as multiple possible interpretations 

exist, the decision in this regard was incumbent upon 

the legal representatives of the company. During the creation, we 

were satisfied that the respective decision taken was supported, 

to a reasonable extent, by reliance upon statutory rationale, court 

decisions, pertinent specialist literature and opinions published 

by the financial authorities. Reference is hereby drawn to the fact 

that any future legal developments, or particularly any new findings 

originating from court decisions, could result in an evaluation that is 

different to the selected interpretation. 

It is on this basis that we ascertained the tax information pursuant 

to article 5 (1), sentence 1, nos. 1 and 2, InvStg in compliance with 

the rules prescribed by german tax law. Figures from an income 

adjustment were included in the ascertainment. 

Frankfurt/main, December 1, 2011 

KPmg Ag 


Stefan Schmidt p.p. 

Attorney-at-law Barbara Bültmann 

Tax accountant Attorney-at-law 

Tax accountant 


executIve bOdIeS 

Capital Investment Company 

RReeF Investment gmbH 

mainzer Landstraße 178 –190 

60327 Frankfurt/main, germany 

Tel.: +49 (0) 69 7 17 04-0 

Fax: +49 (0) 69 7 17 04-69 59 

Local court of registration (“Amtsgericht”): 

Frankfurt/main HRB 25 668 

Established on may 5, 1970 

Subscribed and paid-in 

capital: EUR 6 million 

Liable equity capital: EUR 16.651 million 

Banking Act (KWg) liable equity capital: 

EUR 16.651 million 

As of: December 31, 2010 

Shareholder 

RReeF management gmbH (99.9%) 

Bestra gesellschaft für 

Vermögensverwaltung mbH (0.1%) 

Management 

dr. georg Allendorf 

also managing Director of 

RREEF management gmbH 

RREEF Spezial Invest gmbH 

thomas Schneider 

also managing Director of 

RREEF management gmbH 

RREEF Spezial Invest gmbH 

ulrich Steinmetz 

As of: September 30, 2011 

Auditor 

kpmg Ag 

Auditing company 

Frankfurt/main, germany 

Custodian Bank 

State Street bank gmbH 

munich, germany 

Local court of registration (“Amtsgericht”): munich HRB 42 872 

Liable equity capital: EUR 1,327.3 million 

As of: December 31, 2010 

Supervisory Board 

pierre cherki 

global Head of RREEF 

New York, USA 

chairman 

Axel benkner 1) 


First Vice chairman 

dr. bernd-A. von maltzan 

Vice chairman 

Private Wealth management 

Deutsche Bank Ag 


Second Vice chairman 

guido Heuveldop 

member of the management Board 

Deutsche Bank 

Privat- und geschäftskunden Ag 


dr. Hans-peter Ferslev 1) 

Attorney at Law 

Königstein, germany 

Stephen Shaw 1) 

RREEF chief Operating Officer – Europe, 

middle East, Asia & global Opportunistic Investments 

London, United Kingdom 

1) member of the Audit committee. 

64 grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 ExEcUTIVE BODIES

Expert Committee 

In accordance with the Investment Act (Invg), an Expert committee 

is responsible for the valuation of fund properties. The Expert 

committee for the fund “grundbesitz europa” comprises: 

Heinz lehn 

graduate engineer 

chairman 

Officially appointed and sworn appraiser for the valuation of developed 

and undeveloped real estate, munich, germany 

Jürgen Simon 


Deputy chairman 


and undeveloped real estate, Hanover, germany 

Hartmut nuxoll 


Officially appointed and sworn appraiser for the valuation of 

developed and undeveloped real estate and of rents and leases, 

Düsseldorf, germany 

Substitute member 

Stefan wicht 



and undeveloped real estate, Wiesbaden, germany 

All members of the Expert committee are members of the 

“Bundesverband der Immobilien-Investment-Sachverständigen e.V.” – 

The Valuation company. 

grundbesitz europa – ANNUAL REPORT, SEPTEMBER 30, 2011 ExEcUTIVE BODIES 65

Capital Investment Company: 

RREEF Investment GmbH 

Mainzer Landstraße 178 –190 

60327 Frankfurt/Main, Germany 

Internet: www.rreef.com 

Further information is available from: 

DWS Investment GmbH* 

60612 Frankfurt/Main, Germany 

Tel.: +49 (0) 69 7 19 09-23 89 

Fax: +49 (0) 69 7 19 09-90 90 

Internet: www.dws.de 

E-Mail: info@dws.com 

* Provides sales support services for RREEF Investment GmbH. 

www.rreef.com

grundbesitz europa - Rreef

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