EPI 4 Investor plc - European Property Investments

5.3 Bamberg - Student Apartments / RetailOverviewThis exciting development projectis situated in the heart of Bamberg,Bavaria, Germany. It is the onlywaterside site left in this UNESCOWorld Heritage City. The sitecomprises 85,315 m ² in an area withplanning permission in the finalstages for 76,770 m ² of building area.This includes 45,610 m ² zoned mixeduse and 31,160 m ² zoned residential.The site is currently owned by anEPI associated partnership calledERBA Verwaltungs GbR. It is intendedthat a German GmbH will be formedwhich would then partner with theEPI principals to develop and sellthe apartments. It is intended thatthe Company will provide arm’slength mezzanine finance to theGerman GmbH for the purposes ofthis development which will provideinvestors with a return on intereston the borrowings. Circa 80 % of theresidential units will be single roomapartments of circa 27 m².The phased development plan canbe seen on the opposite page. Thearea coloured black parallel to thered area is the site that was gifted bythe developers to the city to builda 15,000 m 2 university building, tohouse the new music, computerand business departments. This€ 30,000,000 development will beginin July 2008.The area coloured red is an oldlisted warehouse building which willundergo a complete refit. Planningpermission has been granted for 266student apartments which enjoy aspecial tax status ( i.e. reconstructionof protected buildings andaccelerated depreciation ).This project is part of a huge urbandevelopment and is supported by thecity and university authorities.The project has been advancedthrough the planning stages byEPI or EPI associated companies.An independent valuation will besubmitted to the board before the finalPurchase / Investment is approved.16