market value: 23,620,000 · v a l u a t i o n of the market value of the properties “bsb ii”...

V A L U A T I O N of the Market Value of the properties “BSB II”

Vorgebirgsstraße 49 in 53119 Bonn ‐ long‐term leasehold [Erbbaurecht]

as at the date of valuation

30st September 2012

Compiled by: Klaus Schlicht MRICS Assoc MAI

Berlin, 9th November 2012

€ 23,620,000.00Vorgebirgstraße 49

5.50 %

GRI € 1,855,087.00

€ 255,719.00

Void allowance 3.00 %

NRI: € 1,405,663.71

13.70

7.30%

12.73

7.85%

5.95%

lettable area (total): 14,112.79 m²

lettable area (let) 14,112.79 m²

lettable area (vacant) 0.00 m²

Market Value:

at an all‐risks‐yield

Gross initial yield at market

Net initial yield at market

non recoverable costs

Gross multiplier at current

Gross initial yield at current

Gross multiplier at market

Project Rose Portfolio 30.09.2012 Properties BSB II Bonn Vorgebirgsstr. 49 of 50

Table of contents: Page

1 Instructions .............................................................................................................................. 4

2 Definitions of Value .................................................................................................................. 6

3 General Information ................................................................................................................. 7

3.1 Location of the subject property ............................................................................................................. 7

3.2 Land register 30.08.2011 ........................................................................................................................ 7

3.3 Tenants, management ............................................................................................................................ 9

4 Description of the Subject Property ........................................................................................ 10

4.1 Location of the town and the property ................................................................................................. 11

4.2 Basic statistical data .............................................................................................................................. 12

4.3 Key data ................................................................................................................................................. 14

5 Property Description .............................................................................................................. 15

5.1 Micro Location ...................................................................................................................................... 15

5.2 Site Description ..................................................................................................................................... 20

6 Building .................................................................................................................................. 22

6.1 Office building ....................................................................................................................................... 22

6.2 Car park building ................................................................................................................................... 23

6.3 Exterior works / supply and waste disposal installations ...................................................................... 24

6.4 Condition and general assessment ....................................................................................................... 24

7 Market Overview ................................................................................................................... 26

7.1 Schedule of rent for Bonn ..................................................................................................................... 26

7.2 Summary ............................................................................................................................................... 34

8 Valuation ................................................................................................................................ 35

8.1 Choice of valuation approach ............................................................................................................... 35

8.2 Valuation assumptions – Market Value “As Is” ..................................................................................... 35

8.3 Suitability of the property for mortgage purposes ............................................................................... 37

9 Market Value ......................................................................................................................... 39


10 Principles of the Valuation ...................................................................................................... 40

10.1 Disclosure and confidentiality ............................................................................................................... 40

10.2 Market Value ......................................................................................................................................... 40

10.3 Consideration of rights and encumbrances .......................................................................................... 40

10.4 Documents ............................................................................................................................................ 41

10.5 Assumptions .......................................................................................................................................... 41

Appendices:

Appendix 1: Calculations

Appendix 2: Sensitivity Analysis for Changes All Risks Yield

Appendix 3: Photos

Appendix 4: Guide Line Ground Value

Appendix 5: Land register


1 Instructions

Client: Grundstücksgesellschaft BSB II BV & Co.KG, Berlin,

represented by

Rosebud Real Estate Ltd.

14 Ehad Adam Street

62251 Tel Aviv, Israel

Property: Vorgebirgsstraße 49 53119 Bonn

long‐leasehold‐interest [Erbbaurecht]

District of Bonn, cadastral unit 41,

parcel of land 1957,

cadastral unit 42,

parcels of land 2213 and 2214

Purpose of the Valuation: Assessment of Market Value

‐ In accordance with: Approved Property Standards of the European

Group of Valuers Associations (TEGoVA)

Standards of the Appraisal and Valuation Manual

“Red Book” (8th Edition RICS German Edition)

and on the basis of § 194 BauGB (German Federal

Building Code)

International Accounting Standard 40

‐ Valuation date: 30th September 2012

We assume that there are no changes between our

inspection and the valuation date concerning the

status of the asset.

‐ On‐site inspection: 22nd September 2011

‐ Participants: Sabine Schorn for Schlicht and Kollegen, and Mr.

Jostschulte for Estavisio

Purpose of this service: Accounting services

Owner: BSB II BV & Co. KG

Report written by: Klaus Schlicht

MRICS / Assoc. MAI

Linienstr. 127

10115 Berlin

Conflict of interest We confirm that Klaus Schlicht (The Valuer) has act‐

ed as an independent Valuer and that he has no con‐

flict of interest in acting on your behalf in this mat‐


ter. We confirm that he has or has had no other fee

earning relationship with BSB, its directors or the

property.

Documents provided or obtained:

Summary Excel rent‐role CGG dated 17.10.2012 pro‐

vided by Estavisio

Investigations: City authorities of Bonn (key data, economic struc‐

ture, cadastral map, building laws, zoning plan)

Several market reports

Database DG Hyp, Geoport, IVD, IVG, Marktbericht Official

Board of Valuers (Gutachterausschuss) City of Bonn

2011, Immobilienscout, Thomas Daily, Valeuro,


2 Definitions of Value

According to the German edition of the International Accounting Standards (IAS), the

term Fair Value is described as “beizulegender Zeitwert”. This is defined as follows:

‘”Beizulegender Zeitwert” is the amount to which an asset could be exchanged be‐

tween professional and non inter‐dependent business partners who are willing to con‐

clude a contract.’

It is noted in IAS 40.29 that the “beizulegende Zeitwert” [Fair Value] of a property held

for financial investment purposes is generally the Market Value.

According to IAS 40.31, the “beizulegende Zeitwert” must reflect current market condi‐

tions and circumstances on the accounting date and not the past or future.

The aforementioned definitions confirm that the Fair Value [beizulegende Wert] of

properties held as capital assets (IAS 40) represents the Verkehrswert [Market Value]

on the date of valuation.

According to the “Red book” of the RICS the Market value is (VS 3.2):

‘The estimated amount for which an asset or liability should

exchange on the valuation date between a willing buyer and a

willing seller in an arm’s‐length transaction after proper mar‐

keting where the parties had each acted knowledgeably, pru‐

dently and without compulsion’.


3 General Information

3.1 Location of the subject property

Federal State: North‐Rhine‐Westphalia

Administrative district: Bonn

Town: Bonn

3.2 Land register 30.08.2011

Land registry Local Court for Bonn

Land register for: Bonn

Cadastral District: Bonn

3.2.1 Page 10853

Inventory

No. 1: Erbbaurecht (long interest lease hold)

Land parcel: 1957

Use and location “Vorgebirgsstraße 49”, developed and undeveloped

space

Size: 1,070 sqm

Land parcel: 2213


space

Size: 475 sqm

Land parcel: 2214


space

Size: 8,178 sqm

until 31.12.2057

Section I

Owner Grundstücksgesellschaft BSB II


Section II (easements and restrictions)

Ref. No. 1 of Inventory No. 1:

Kanalrecht (drain right); entered 08.03.1993;


Easement of development, entered 08.03.1993;


Erbbauzins (Leasehold fee/Ground rent); entered on 08.03.1993;


Right of registration of a higher ground rent; entered on 08.03.1993;


Right of pre‐emption for the owner of the site subject to ground lease; entered on

08.03.1993;


Kanalrecht (drain right); entered 08.03.1993;

The Leasehold fee/Ground rent is influencing the value and it is taken into account at

this valuation.

Section III

In carrying out this valuation, any land charges and mortgages recorded were not taken

into account, as these liens do not influence the market value, rather the purchase

price of the property (see Section 2.3). It has been assumed that no interest advantages

or disadvantages would be incurred by a potential purchaser as a result of any possible

or inescapable assumption of them.

Building Encumbrance

No building encumbrance (Baulasten) are laying at the property, due to information of

the City of Bonn, dating 31.08.2011. Therefore there is no impact from “Baulasten” to

the value.

Lease Hold Fees/Ground Rent

We were told that the leasehold fee for all land parcels named above now at the date

of the valuation reached a height of 193,704.29 € p.a.


3.3 Tenants, management

Tenants:

The lease period for Deutsche Telekom is running till 31.12.2016, with 1 additional 3

years option.

Tenant lists were provided by Estavisio GmbH. The rental contracts were not inspected.

For this valuation we assume that the content of the tabloids is correct.

Management: Estavisio GmbH, Brüggering 7b, 59494 Soest

Rent Roll Rosebud Portfolio17.10.2012

office storagebase-ment

outdoorto be

announcedfor … years office storage

base-ment

outdoorper

monthperyear

GMG Generalmiet GmbH Vorgebirgsstraße 49 491.00 40,119.00 42,735.00 31.12.2016 1 x 3 7.80 3,831.27 45,975.24

GMG Generalmiet GmbH Vorgebirgsstraße 49 1,797.79 40,119.00 42,735.00 31.12.2016 1 x 3 3.85 6,920.55 83,046.60

GMG Generalmiet GmbH Vorgebirgsstraße 49 11,824.04 40,119.00 42,735.00 31.12.2016 1 x 3 9.26 109,485.41 1,313,824.92



leasematurity

date

optionnet rent total

net rent in EUR per sqm / EUR per parking spaceparking

leasestart date

tenant

rental area in sqm parking spaces

asset


4 Description of the Subject Property

Overview Federal State: North‐Rhine Westphalia

Adm. District: Bonn

Source: Einordnung Deutschland, Tele Atlas Deutschland GmbH, Harsum : April 2006


4.1 Location of the town and the property

Transport links Name Distance Direction

Airport Köln/Bonn 15,64 km N

Next Railway Station Bonn‐Hbf 1,27 km SO

Nearest motorway junction 7 AS Verteilerkreis Bonn, A555 0,58 km NW

Cities located in region

Bonn 1,21 km SO

Köln 23,97 km N

Düsseldorf 58,14 km N


4.2 Basic statistical data

(Source: State Statistics Offices)

Population key indicators Municipality

Bonn

Adm. district Kreisfreie Stadt Bonn

Federal state Nordrhein‐Westfalen

Germany

Population 324.8992010

324.8992010

17.845.154 2010

81.751.6022010

‐ below 18 years (in %) 16,532010

16,532010

17,12 2010

16,322010

‐ 65 years and older (in %) 18,222010

18,222010

20,27 2010

20,602010

‐ Ratio municipality vs. … (in %) 100,00 100,002010

1,82 2010

0,402010

Migration

‐ Immigration into municipality 25.8482010

25.8482010

816.030 2010

4.374.6252010

‐ Immigration rate (in %) 7,962010

7,962010

4,57 2010

5,352010

‐ Emigration out of municipality 21.2922010

21.2922010

798.706 2010

4.246.7572010

‐ Emigration rate (in %) 6,552010

6,552010

4,48 2010

5,192010

Unemployed persons

‐ Rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7,707.2012

9,1 07.2012

7,507.2012

State benefits (employable, AlgII + Sozialgeld)

‐ Rate (in % of Pop. < 65 years) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 10,1412.2010

11,32 12.2010

9,9012.2010

State benefits (unemployable)

‐ Rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,612010

0,45 2010

0,392010

Foreign nationals

‐ Rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 15,122010

10,52 2010

8,812010

‐ Immigration into municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8.5272010

226.942 2010

1.079.6342010

‐ Immigration rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2,622010

1,27 2010

1,322010

‐ Emigration out of municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7.6012010

193.040 2010

925.6792010

‐ Emigration Rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2,342010

1,08 2010

1,132010

Public health Municipality

Bonn



Germany

Hospitals ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 102009

413 2009

2.0842009

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 4.1172009

122.317 2009

503.3412009

‐ beds index (per 1.000 inhabitants)

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 12,872009

6,84 2009

6,152009

Rehabilitation Centers ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 22009

138 2009

1.2402009

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 4222009

20.765 2009

171.4892009


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1,322009

1,16 2009

2,102009


Tourism Municipality

Bonn



Germany

Accommodation 932010

932010

5.390 2010

54.4792010

‐ thereof hotels ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 832010

4.126 2010

35.9432010

‐ beds 8.0632010

8.0632010

289.204 2010

3.007.9762010

‐ bed utilisation rate (in %) 41,082010

41,082010

39,89 2010

32,612010

‐ guest arrivals 635.5312010

635.5312010

18.585.514 2010

154.462.6432010

‐ overnight stays 1.209.0262010

1.209.0262010

42.109.693 2010

357.979.0822010

‐ average duration of stay (in days)

1,902010

1,902010

2,27 2010

2,322010

Land use (in %) Municipality

Bonn



Germany

‐ residential and traffic 50,432009

50,432009

22,33 2009

13,282009

‐ agriculture 16,302009

16,302009

49,27 2009

52,442009

‐ forest 28,012009

28,012009

25,54 2009

30,112009

‐ water 4,072009

4,072009

1,95 2009

2,382009

‐ miscellaneous 1,192009

1,192009

0,92 2009

1,782009

Segmentation of urban and traffic area (in %)

Municipality Bonn



Germany

‐ living 37,522009

37,522009

29,25 2009

24,992009

‐ business 3,862009

3,862009

9,83 2009

8,542009

‐ recreation 8,352009

8,352009

8,16 2009

8,232009

‐ traffic 23,812009

23,812009

31,43 2009

37,652009

‐ other 26,472009

26,472009

21,32 2009

20,582009

Completion of buildings breakdown Municipality

Bonn



Germany

‐ one‐family house 2972010

2972010

14240 2010

709652010

‐ two‐family house 122010

122010

1413 2010

72012010

‐ multiple dwelling unit 312010

312010

1428 2010

61742010

‐ flats contained 2782010

2782010

12818 2010

547292010

‐ commercial buildings ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 162010

3.398 2010

26.9902010

‐ business space in 1.000 m² ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 232010

4.333 2010

25.4752010


4.3 Key data

(Source:www.meinestadt.de)

Area (in km²): 141,22

Total population: 324,899 (31.12.2010)

Population per km²: 2,241

(increasing)

Structure of the economy

‐ Agriculture: 0.2%

‐ Manufacturing: 10.4%

‐ Service: 89.4%


5 Property Description

5.1 Micro Location

The subject property is situated in „Nordstadt“. Nordstadt is a sub district in the north‐

west of Bonn, in the immediate vicinity to the northern city and the “Innenstadt Ring”.

Source: Straßenkarte D20, CartoTravel Verlag GmbH & Co. KG, Bad Soden / Taunus 4/2006


Micro Market Data (incl. solvency index)

Micro market map Creditworthiness index (related to: Germany = 100)

Source: Mikromarktdaten, Acxiom Deutschland GmbH, Neu‐Isenburg Status: 2. Quartal 2010

Micro Market Data:

Micro market identification and facts

Micro market name Ellerviertel Municipality Bonn

Population 5.607 Population density (Inhabitants per sqkm)

4.034

Area in sqkm 1,39

Micro market classification

Classification of utilization gewerbliche Dominanz

Social environment Status‐orientiertes Arbeitermilieu

Prevailing businesses tertiärer Sektor = Dienstleistungen

Prevailing age group first and second level

Dominante Lebensphase 25 bis unter 30 Jahre Dominante Lebensphase 30 bis unter 35 Jahre

Centrality / functional range index Kernstadt

Type of area Agglomerationsraum

Add. Information to centrality


Age distribution (number of inhabitants, rate %)

Population aged 0 to under 3 years 234 4,2 Population aged 35 to under 40 years 463 8,3







Population aged 25 to under 30 years 736 13,1 Population aged 75 and more years 318 5,7

Population aged 30 to under 35 years 607 10,8

Household structure (number, rate %)

Households (total) 3.007

Households without children under 18 years 2.445 81,3 Households (head of h.h. aged 18 to 24 years) 270 9,0

Households with children under 18 years 562 18,7 Households (head of h.h. aged 25 to 34 years) 894 29,7

Single‐person households 1.515 50,4 Households (head of h.h. aged 35 to 44 years) 600 20,0

Two‐person households 853 28,4 Households (head of h.h. aged 45 to 54 years) 412 13,7

Three‐person households 291 9,7 Households (head of h.h. aged 55 to 62 years) 242 8,0

Four‐person households 244 8,1 Households (head of h.h. aged 63 to 69 years) 202 6,7

Households of five and more persons 104 3,5 Households (head of h.h. aged 69 years and older) 387 12,9

Educational structure (Total number, Rate %)

Highest graduation

Volks‐ / Hauptschulabschluss 1.709 30,5 Realschulabschluss 997 17,8

Grammar school graduation 1.778 31,7 without / not known 1.123 20,0

Highest vocational graduation

Graduate degree 982 17,5 Vocational school degree 2.412 43,0

without / not known 2.213 39,5

Employment structure

Employed 2.771 Clerk, civil servant, apprentice in this field 1.949

Worker, apprentice in this field 481 Self‐employed and helping family members 341


Net income (including public transfer income)

Average monthly net income per household 2.658

Households with monthly net income below 900 € 250 Households with monthly net income from 900 to 1.300 €

332

Households with monthly net income from 1.300 to 1.500 €

179 Households with monthly net income from 1.500 to 2.000 €

426



564


463 Households with monthly net income from 5.000 € and more

342

Spending power und retail relevant spending power

Private buying power (absolute in Mio €) 95,9 Average private spending power per inhabitant 17.107

Index – private buying power (Micro Market) 87,9 Index – private buying power (Municipality) 116,1

Retail trade relevant spending power per year (in Mio €)

32,9 Average retail trade relevant spending power per inhabitant

5.862

Index retail trade relevant spending power (Micro Market)

109,2 Index retail trade relevant spending power (Munic‐ipality)

111,4

Retail turnover and spending power absorption

Retail turnover per year (in Mio €) 36,2 Retail turnover per person and year 6.448

Retail turnover index (Micro Market) 128,7 Retail turnover index (Municipality) 120,8

Index of retail trade related spending power ab‐sorption (Micro Market)

110,0 Index of retail trade related spending power ab‐sorption (Municipality)

101,3

Creditworthiness

Index Creditworthiness (Micro Market) 89 Index Creditworthiness (Municipality) 104

Cars

Private cars (total) 1.523 Private cars per household 0,51

Private cars per inhabitant 0,27

Buildings and flats

Buildings (total) 644 Flats (total) 2.969

Buildings with 1 flat (number and rate %) 168 26,1 Buildings with 2 flats (number and rate %) 73 11,3

Buildings with 3 or more flats (number and rate %) 403 62,6

Flats in buildings with 1 flat (number and rate %) 168 5,7 Flats in buildings with 2 flats (number and rate %) 146 4,9

Flats in buildings with 3 or more flats (number and rate %)

2.655 89,4


Business establishments

Number of business establishments 297 Business density (number of establishments per sqkm)

214



5.2 Site Description

Source: AK5, Landesvermessung + Geobasisinformation, online

Parcel 1957, 2213, 2214

‐ Area: 9,723.00 m²

‐ Shape: nearly rectangular

‐ Surface: level

‐ Roads and services: adopted public road,

electricity supply,

public water supply,

public sewerage system

gas connection


Town planning circumstances:

‐ Development Plan: There is a valid development plan for the site (legally

binding since 12.09.1990). The property is zoned as

commercial (GE). This use class permits commercial

businesses with a low degree of interference. Ware‐

houses, office and administrative properties as well

as petrol stations and sports facilities are also per‐

mitted.

‐ Site coverage: The ground ratio (GRZ) is 0.8. The plot ratio (GFZ) is

2.2. We assume the property has been built in ac‐

cordance with all planning consents and regulations.

‐ Others: There was a new multi‐storey car park built in

2009/2010, at the surplus land and rented it to the

single Tenant Deutsche Telekom.

‐ Classification: land ripe for development § 4 Abs. 4 BauNVO

Subsoil conditions: The property is registered in the Contamination area

Register (Altlastenkataster) under the number 7622‐

080 as a refurbished former industrial site (Alt‐

standort). From approx. 1904 to 1998 this building

functioned as the “Ellerbahnhof” train station with

an office, a goods shed, coal storage facilities and a

50,000‐liter fuel oil tank. The tank was refurbished

in 1971. The goods shed was decommissioned in

1989. Köln‐Bonner‐Eisenbahn AG (KBE) carried out

an assessment of the contaminated site before

starting construction work. Although only a small in‐

crease in the concentration of pollutants was de‐

tected, the administration building was erected un‐

der advice of an expert. According to

Drees&Sommer there is no entry for public ease‐

ment.

We assumed, without verification, that there are no

special, i.e. value relevant, influence on the value of

the building. Additional costs will only arise if the

site will be redeveloped.


6 Building

The following schedule is only partial: only the important factors influencing value are shown with no claim to com‐

pleteness. Circumstances not determinable by external inspection were taken from planning documents, the building

specification and if appropriate oral statements by the persons present during the inspection.

6.1 Office building

6.1.1 Type and date of construction

Reinforced concrete construction

Year of construction: 1994 – refurbished 2009‐2010

6.1.2 Use and subdivision of accommodation

Lettable area (according to excel sheet “overview leasing contracts”):

‐ Office: 12,315.04 m²

‐ Storage: 1,797.79 m²

‐ Parking: 432 parking lots / including the Park deck – new

built in 2009/2010 – see 6.2.

6.1.3 Structure and façades

Foundations Concrete

Walls

‐ Basement: concrete and sand‐lime bricks

‐ Above‐ground walls concrete and dry walls

Floors: Concrete

Stairs:

‐ Interior stairs concrete

Roof:

‐ Structure: Flat roof

‐ Covering: Bitumen with gravel layer

Façade: Glass façade and insulating plaster

6.1.4 Fit‐out

suspended ceilings


metal framed, double glazed, tilting/opening windows

external sun blinds

perimeter radiators

wing A also has raised floors

local air conditioning for the highest floor and some conference rooms and all serv‐

er rooms

other than for sanitary rooms there is no mechanical ventilation.

The office accommodation is not sprinklered.

TELEKOM has installed on the 4th floor some high security rooms.

All floors have a new carpeting

Completely renewed power supply and power distribution up to the individual

workplace, completely renewed IT infrastructure, with glass fibre distribution into

the several floor sections with their separate server rooms and CAT 7 cabled from

the server rooms to the workplaces

6.2 Car park building


Substructure: Reinforced concrete construction on pile foundation

Superstructure: steel construction with concrete floors

Year of construction: 2009, 2010



‐ Parking: 362 parking lots


Foundations Reinforced concrete construction on pile foundation

Walls

‐ Basement: concrete and steel

‐ Above‐ground walls steel

Floors and ramps: Concrete

Stairs:


‐ Interior stairs concrete

Roof: no roof

Façade: steel trellis

6.2.4 Fit‐out

Sound and light insulation to the neighbours

Automatic light system (day‐night/motion sensoring/emergency)

6.3 Exterior works / supply and waste disposal installations

Surfacing of site: car parking spaces and internal roads on concrete

paving, access roads surfaced with bitumen, all in

good condition

Boundaries: fenced

Landscaped areas: courtyard area is beside the plastered area planted

and well‐kept

Supply and waste disposal installations:

Buildings are connected for main water and sewer‐

age, gas, electricity and telecommunications;

6.4 Condition and general assessment

Structure / basic fabric Average standard

Technical installations: high standard

Partitioning: Average standard

Fit out: Functional

Ventilation and lighting: Average

Condition: good

Defects / disrepair: Not known., the whole building was complete refur‐

bished in 2009/2010

General assessment: The property is a good to average (standard) office

building. There are no essential damages or defects

known.

Notice concerning defects and disrepair:


Within the scope of a market valuation, it is not possible to carry out detailed investigations of the type,

extent, cause and costs of the permanent rectification of defects and disrepair. In this regard, if necessary

separate specialist reports should be commissioned, the conclusions of which may lead to changes in the

valuation. For the purposes of this valuation, in keeping with normal business practice, we have assumed

that the structural stability and use of the property according to its type of construction would not be re‐

stricted. Other defects and disrepair have only been reflected in the amount of deductions and approaches

that are normal in the market.


7 Market Overview

7.1 Schedule of rent for Bonn

7.1.1 Commercial rent from ImmobilienScout24

Period of Analysis: April 2012 till September 2012

Postcode District 53119 Municipality Bonn

Total number of offers 21 802

Average time of offering (days) 45.7 51.6

Total number of views of expose 3,013 97,206

Total number of inquiries1 169 249

Total number of views of expose per offer 143.5 121.2

Index of total number of views of expose per offer (Germany = 100) 144 122

Total number of views of expose per offer per offering day 3.1 2.3

Index of total number of views of expose per offer per offering day (Germany = 100)

179 134

Index of average time of offering (days) (Germany = 100) 81 91

Map Micro / Makro Market:

Postcode District 53119 Municipality Bonn


Commercial rents in the Postcode District 53119:

Offers (based on: 21 offers) Inquiries (based on: 169 inquiries)

1

Type Number of offers Basic rent per m² Spread interval (90 %) Total number of inquiries

Offices 11 8.14 € 1.00 € ‐ 10.00 € 39

Retail 3 8.98 € 7.70 € ‐ 9.74 € 40

Hotel / Gastronomy2 4 9.02 € 7.33 € ‐ 10.71 € 78

Storage / Manufactoring 3 4.44 € 4.41 € ‐ 4.50 € 7

Others 0 5

Commercial rents in the Municipality Bonn:


1

Type Number of offers Basic rent per m² Spread interval (90 %) Total number of requests

Offices 418 9.27 € 3.39 € ‐ 14.58 € 68

Retail 216 13.24 € 4.04 € ‐ 33.06 € 59



Others 15 8.12 € 3.06 € ‐ 12.22 € 9

1 The number of inquiries is the sum of all inquiries in the contained and significantly intersected zip code areas. 2 Offers of type hotel / gastronomy contain monthly leases. These leases are evaluated in the same way as monthly rents.


Market overview

Index of requests Index of requests (related to Germany = 100) Legend for request index map (Index of total number of views of expose per offer per offering day (Germany = 100)):

Few offers (less than 3 offers)

Request strongly under average (Index: < 40)

Request under average (Index: 40 ‐ 80)

Average request situation (Index: 80 ‐ 120)

Request over average (Index: 120 ‐ 160)

Request strongly over average (Index: > 160)

(related to the German average) Source: IS24 ‐ Miet‐ und Kaufpreise für Gewerbeimmobilien, Immobilien Scout GmbH, Berlin Status: September 2012


7.1.2 Commercial rent by Plötz

Good Location Average Location Modest Location

1999 (in DM/m²) 30‐35 18‐26 12‐17

2000 (in DM/m²) 30‐35 18‐26 12‐17

2001 (in DM/m²) 28‐36 18‐28 12‐18

2002 (in DM/m²) 30‐36 18‐28 12‐18

2003 (in EUR/m²) 13‐17 9‐13 6‐9

2004 (in EUR/m²) 12‐15 9‐12 7‐9

2005 (in EUR/m²) 12‐15,5 9‐12 7‐9

2006 (in EUR/m²) 13,5‐15 8,5‐13,5 5,5‐8,5

2007 (in EUR/m²) 13,5‐15 8,5‐13,5 5,5‐8,5

2008 (in EUR/m²) 10‐14,5 8,5‐10 5,5‐8,5

2009 (in EUR/m²) 10‐14,5 8,5‐10 5,5‐8,5

2010 (in EUR/m²) 8,5‐10 7,3‐8,5 6‐7,3

2011 (in EUR/m²) 10‐14,5 7‐10 5‐7

2012 (in EUR/m²) 10‐14,5 7‐10 5‐7

There are hardly any modern office spaces at the market, although there is a demand. Fewer proper‐ties are currently in construction.


7.1.3 Commercial rent by Riwis


7.1.4 Commercial rent by Thomas Daily

Rents and Yields Prime Rent (min. space 200sqm) Average Rent (min. space 200sqm) Development of Prime rents last 12 months Prognosis Development of Prime Rents next 12 months Prime Net Initial Yield Number of sales Vacancy Vacancy Rate Vacancy Development last 12 months Prognosis Vacancy next 12 months Demand Demand for modern Office Space during the past 12 months Prognosis Demand for Office Space next 12 months Height of Incentives Additional space planned or in construction


7.1.5 Official Board of Valuers ‐ City of Bonn ‐ 2012

The rental spread slightly changed compared to last year, the upper end of the spread is equal to last year, only the lower end is a bit higher than in the Market Report 2011.

Regarding the Garages the rental situation is also positive, but a bit different, at some areas the upper end of the spread grew a little bit compared to last year.


7.2 Summary

Following the loss of the main federal ministries and the accompanying departure of

foreign embassies, lobby groups etc. it was widely expected the Bonn office market

would collapse. This was not been the case and instead the market fared surprisingly

well. Nevertheless the rental height from 2009 to 2010 decreased sharply to a historic

low. As a result of the economic crises hardly any new office buildings are being con‐

structed, if there isn’t a reasonable size of space pre‐let. So the demand is beginning to

grow and there is hardly any modern office space available. This lead to the fact that

the lower end of the rental spread began a bit to grow and areas which were not so

popular start to achieve better rents, but the prime rent remains at last year’s height.

The contemporary rents paid at the subject property is 8.78 €/sqm, – that’s within the

spread for office buildings in general – but even below the average and at the very low

end for good office locations like the subject property – so the rent of 8.78 €/sqm is not

at market for a building of that good quality (especially after the renova‐

tion/modernization/park deck construction). We assume that at least 10.00 €/sqm are

the suitable market rent for the property.

In a market of such a weak demand like it was in 2009, when the rental contract was

signed, Telekom used its market power as major tenant especially in the Bonn area.

The property is underrented. We are using in the valuation the market rent and deduct

for the assumed rental period the difference. Due to the low contract rent and the

completely modernized building at which the tenant invested itself about one million

Euro, we assume for the valuation that the tenant will stay not only till the end of the

standard rental period (31.12.2016) but prolonged at least 1 time the contract for fur‐

ther 3 years (exercising at least 1 option).


8 Valuation

8.1 Choice of valuation approach

The selection of one or more methods of valuation should be oriented towards the ac‐

tual behaviour of market participants, i.e. it must take into account those influences

that would govern the determination of the sale price in normal course of business.

The subject property is a standard office building. Comparable properties are mostly

dealt with from a yield point of view.

The following valuation has therefore been based on the internationally‐common in‐

vestment method.

We understand that the property is subject to a ground lease (Erbbaurecht).

8.2 Valuation assumptions – Market Value “As Is”

Note: All calculations are rounded to the nearest full Euro amount.

8.2.1 Lease contracts and rental level

We did not inspected any rental contracts, so we have to assume, that the figures

named in the excel rent roll are correct.

The building was refurbished and modernised from the owner of the building and the

Deutsche Telekom together. The owner also built a steel parking deck at the former

yard – so that there is place now for 432 cars. We were told that the owner spent

about 4 Mio € and the tenant about 1 Mio €.

The office rent (8.78 €/sqm) itself is within the lower end of the spread for office rent in

that area, and below the average, but it is NOT at market for a building of that good

quality. We are calculating with a market rent of 10.00 €/sqm office space, which we

think is conservatively set. The difference to the under‐rented contract rent will be de‐

ducted.

See Bullet 7.2.

The lower risk – due to the lower set market rent and the high quality of the tenant –

will be considered at the All Risks Yield.

8.2.2 Inflation, indexation

The leases are partly subject to indexation, although for the purposes of our valuation,

we have not reflected this indexation going forward, but have instead taken it into ac‐


count in the yields adopted, which we consider a realistic approach that would be

adopted by a prudent purchaser.

8.2.3 All‐Risks Yield

Positive to mention is the location within walking distance to the city center, easy to

reach with public transport or car. The property was refurbished in 2010 to a good

modern standard on the basis of sophisticated demands from the new tenant –

Deutsche Telekom. The single‐tenant DT is well‐known, with a high creditworthiness

and had especially in 2008/2009 at the peak of the economic crises a high market pow‐

er to enforce a rental contract which is in favour for the tenant. The underrent is an

important argument why we think that DT will exercise its option right – and also the

fact that the building is newly refurbished by their demands – and that DT spent also 1

Mio Euro for refurbishing – and last but not least that there are less modern office in

central locations available or in construction (and even if they will be built – they could

not be offered for a cheaper rental price).

Since a property always comes with higher costs and risks, despite the aforementioned

qualities, the interest rate increases in line with each tenant’s creditworthiness and loss

of rental income risks. The construction phase of the parking garage and the refurbish‐

ment is over without severe problems.

Thus we consider an All‐Risks Yield of 5.5% to be appropriate for the property.

8.2.4 Non‐recoverable expenditure

Regarding non‐recoverable costs, we have estimated the costs for non‐recoverable op‐

erating costs and costs for management and maintenance. The estimates for that

property subject run at 2.00 % for service charges, 2.00 % for management (single ten‐

ant) and 8.00 €/m²‐ office space resp. 30 €/pc‐ parking space for maintenance (due to

the large modernisation in the last half a year).

Insurance and property taxes are typically recoverable costs that are being transferred

to the tenants.

8.2.5 Renovation and refurbishment costs

We were told that the new built park deck cost 4.050.000 €.

And we were told that the tenant spent ca. 1.000.000 € for the refurbishment of the

site.


We were also told that the whole building was completely refurbished/modernised af‐

ter the demands of the new tenant (Telekom), and that the contemporary office stand‐

ard now is good modern office standard (incl. IT).

8.2.6 Rental void

The property is full let.

8.2.7 Purchasers’ on‐costs

Purchasers Costs are taken into account in the height generally adopted. Basis of the

calculation is the market value.

8.3 Suitability of the property for mortgage purposes

8.3.1 SWOT Analysis

Strengths:

Excellent tenant – Dt. Telekom, who will probably stay for a longer time due to a

modern building as its needs and at an underrent

Stable local office market with a low supply of available modern office space

Modern good office building with a high number of parking lots

Fully let

Rental contract till 31.12.2016, due to underrent we assume the tenant will exer‐

cise at least one option and stay till 31.12.2019

Large number of parking lots

Weaknesses:

Only city fringe not in the inner city area

single tenant

underrent

Threats:

unforeseen urban development

ground rent could increase

8.3.2 Saleability

In terms of the time period in which we consider a sale of the subject property would

be realised, we would estimate this to be 12‐15 months from the commencement of

the marketing period. Generally we would not envisage any difficulties in realising a


sale of this property, but we still have an economic crisis. So we can say with confi‐

dence is that any property valuations reported at the present time contain “abnormal

uncertainty” caused by “market instability”. RICS Guidance Note 5 (GN5) refers to such

circumstances thus:

“Unforeseen macroeconomic or political crises can have a sudden and dramatic effect

on markets. This could manifest itself by either panic buying or selling, or simply a disin‐

clination to trade until it is clear how prices in the market will be affected in the longer

term. If the valuation date coincides with the immediate aftermath of such an event,

the data on which any valuation is based may be confused, incomplete or inconsistent,

with an inevitable effect on the certainty that can be attached to it”.

The RICS considers that, where uncertainty could have a material effect on the valua‐

tion, the Valuer should draw attention to this, indicating the cause of the uncertainty

and the degree to which this is reflected in the reported valuation.”

Accordingly, please be advised that such circumstances exist and that we have advised

you in the context above, and that in our opinion the value of the Property is fairly

stated.


9 Market Value

We assessed the following values for the subject property on the basis of information

gained and documentation provided and in accordance with the approaches described

above:

Market Value “As is” (derived from investment method): € 23,620,000

We are not aware of any other circumstances at the present time which have not al‐

ready been reflected in our assessment of value.

On the basis of the foregoing and with express reference to Section10 of this valua‐

tion, our opinion of the Market Value of the subject property:

Vorgebirgsstraße 49 53119 Bonn (long‐leasehold‐interest [Erbbaurecht]

District of Bonn, cadastral unit 41, parcel of land 1957,

cadastral unit 42, parcels of land 2213 and 2214) on the valuation date of 30th Septem‐

ber 2012 is

€ 23,620,000

(Twenty Three million six hundred twenty thousand Euro)

Berlin, November 9th 2012

Klaus Schlicht MRICS Assoc MAI


10 Principles of the Valuation

10.1 Disclosure and confidentiality

This appraisal has been prepared in accordance with the International Valuation Stand‐

ards 2011 and the RICS Appraisal and Valuation Standards. In the context of the valua‐

tion Klaus Schlicht has acted as an external Valuer working in a fee earning capacity for

the named client. Klaus Schlicht does not have any direct or indirect personal or corpo‐

rate relationships with the properties or company that is the subject of this assignment

and that might lead to a potential conflict of interest. Furthermore, the agreed com‐

pensation is not contingent upon any aspect of the report, including the valuation re‐

sults.

This engagement has been performed independently and without bias toward the cli‐

ent or others. We have complied with the code of conduct and adhered to the ethical

standards set out in the International Valuation Standards.

The valuation of the portfolio has been undertaken by Klaus Schlicht. This member of

the Royal Institution of Chartered Surveyors has not previously been signatories to val‐

uations provided to the client for the same purposes as this report.

Klaus Schlicht has not previously completed a valuation in respect of this portfolio and

has had no other material relationship with the client to date.

10.2 Market Value

The Market Value was determined by using the Investment Method, in accordance

with the standards of the RICS (London) and the Appraisal Institute (Chicago III.), as

well as those stipulated in the German Federal Building Code (BauGB).

It is assumed that the tenants will remain in the property in the long term because of

the existing situation (combined occupation of the subject property with a very good

location). As the rent currently being paid is at market level, for our calculations using

the Investment Method the current ERV has been capitalised in perpetuity.

10.3 Consideration of rights and encumbrances

Rights and encumbrances of real property can result from numerous, sometimes very

different, grounds. Distinction must be made between the following types:

public‐law restrictions (protection of listed monuments, nature conservation law

etc.);


private law restrictions, which mainly result from the rights and restrictions of Na‐

chbarrecht (law concerning the respective interests of occupiers of adjoining prop‐

erty);

limited real rights (rights of use, safeguarding and disposal, rights of acquisition

etc.);

rights equivalent to real property (ground leases, mineral rights etc.);

For the purposes of this valuation, any possible liens (mortgages, land charges and rent

charges) to which the property may be subject have not been reflected in the determi‐

nation of market value, as the specialised literature and case law are unanimous in the

opinion that such charges should be interpreted as personal circumstances.

We have not been provided with any legal due diligence report or declarative state‐

ments therein. So we could not take into afford any issues affecting value.

It has been assumed that the use of the site would not be significantly limited by the

easements recorded in the land register.

10.4 Documents

The above advisory opinion is the result of our research and on‐site findings without

carrying out a legal‐due‐diligence (e.g. lease contracts, ownership structure) or tech‐

nical‐due‐diligence (e.g. building structure, partitioning, fit out etc.). The delivered doc‐

uments (tenant lists, technical reports) for the above calculations were not audited by

the Valuer.

The Valuer was not provided with the following documents by the client and the doc‐

uments were not requested by the Valuer as ordered by the client:

‐ Lease contracts

‐ Floor plans / layouts

‐ Leasehold contracts

In accordance with the client we assume that there are no facts in these documents

with significant influence on the market value.

10.5 Assumptions

10.5.1 Condition of the land

A valuation to market value can only reflect influences on value that may be ascer‐

tained by an external, non‐damaging survey.


For the purposes of this valuation, it has therefore been assumed that the site is free of

contamination and that its characteristics as regards development would not involve

any expenditure higher than is normal in the location, unless the external non‐

damaging survey provides indications that in the circumstances could result in a reduc‐

tion in value being deduced.

10.5.2 Condition of the buildings

Where there are buildings on the site, in the same way only circumstances that may be

ascertained by an external, non‐damaging survey can be reflected.

In this regard we must expressly point out that the following circumstances have not

been investigated by us:

No investigation of the structural stability of the buildings or of specific sound and

thermal insulation qualities has been carried out;

No verification of compliance with public‐law regulations (including consents, ac‐

ceptances, conditions etc.) or of any private‐law provisions affecting the existence

or user of the land and buildings has been carried out;

No investigations with regard to infestation by animal or vegetable pests (in timber

or masonry) or corrosion (in copper pipework) have been carried out;

No investigation of the buildings with respect to deleterious materials (e.g. asbes‐

tos, formaldehyde, high alumina cement etc.) has been carried out;

The functional capability of technical and other installations of the buildings has not

been tested;

It has been assumed, without verification, that as at the date of valuation the sub‐

ject property is covered by insurance, both as regards the type of potential dam‐

age and the appropriate amount of the sum insured.

In the following report it will be assumed that there is no adverse effect on value as a

result of the circumstances described above, unless, in the course of the non‐damaging

inspection, there were indications giving rise to inferences of a reduction in value re‐

sulting from these circumstances.






10.5.3 Volume and floor areas of buildings

This valuation is based on the assumption that the measurements adopted correspond

with the actual measurements, or that any discrepancies that may occur would not

have a significant effect on the outcome of the valuation.


Appendices



Current GRI / Market GRI

Main Area Contract rent Area Contract / m² Market / m² Market

1 GMG Generalmiet

GmbH/Telekom ‐ Office 113,316.88 € 11,824.00 m² 9.58 €/m² 10.00 €/m² 118,240.00 €

2 GMG Generalmiet

GmbH/Office 2 3,683.00 € 491.00 m² 7.50 €/m² 10.00 €/m² 4,910.00 €

3 GMG Generalmiet

GmbH/Telekom ‐ archive 6,920.55 € 1,797.79 m² 3.85 €/m² 3.85 €/m² 6,920.55 €

4 Parking Deck 17,889.68 € 362 49.42 €/m² 60.00 €/m² 21,720.00 €

5 Parking Space outside 1,820.70 € 70 26.01 €/m² 40.00 €/m² 2,800.00 €

Total 143,630.81 € 14,112.79 m² 154,590.55 €

432

Total 143,630.81 € 14,112.79 m² 154,590.55 €

Annual GRI rd. 1,723,570.00 € 1,855,087.00 €

Vorgebirgsstraße 49 53119 Bonn


Property: Vorgebirgstraße 49

Address: Bonn

€ 23,620,000

5.50 %

13.70

7.3%

€ 1,855,087.00

(at market)

in % of GRI: 3.00 % = € 55,653.00

in % of GRI: 2.00 % = € 37,102.00

management

2.00 % = € 37,102.00

maintenance

per m² p.a. 8.00 €/m² = € 112,902.00

Garage per St p.a. 30.0 €/pc = € 12,960.00

total non‐recs say: € 255,719.00

in % GRI: 13.8 %Ground Lease € 193,704.29

€ 1,405,663.71

x 18.182

Gross capital value € 25,557,778.00

Underrent cap 5,5 % 7,25 years 131,516.88 €/p.a.(Standard lease term + 1 Option 7.25 years 5.50% 5.849 = ‐€ 769,262.21


5.0 % = € 1,142,328.00

2.0 % = € 456,931.00

1.5 % = € 342,698.00

say: € 1,941,957.00

* € 23,615,821.00

Market value rd. € 23,620,000.00

key data

13.70

7.30%

12.73

7.85%

5.95%

Value / m² ‐ lettable area 1,674 €/m²





tax

agent

non‐recoverable costs

void allowance

Gross Multiplier at current

non‐rec. service charges

commercial in % of GRI

Gross Initial Yield at current

Calculation:

Annual gross rental income

Summary

legal & notary

Total purchasers costs

Capital value ./. Purchasers costs


Net rental income p.a.

x multiplier

Purchasers Costs (based on *)

market value as is:

all risks yield



Yield

20,790,000.00 €6.25%0.75%

21,650,000.00 €6.00%0.50%

22,590,000.00 €5.75%0.25%

23,620,000.00 €5.50%Original Yield

24,740,000.00 €5.25%‐0.25%

25,970,000.00 €5.00%‐0.50%

27,340,000.00 €4.75%‐0.75%

Bonn

Vorgebirgsstraße 49


Appendix 3: Photos


Appendix 4: Guide Line Land Value

Appendix 5: Land Register

Deleted by order of Applicant in order to reduce the file size

V A L U A T I O N of the Market Value of the properties “BSB III”:

Burgwall 13‐17 / Braunschweigerstr. 99‐101

(long‐term‐leasehold)

38444 Wolfsburg


30th September 2012


Berlin 21st November 2012

€ 17,900,000.00Burgwall ‐ Braunschweiger Straße

6.00 %

GRI € 1,676,418.00

€ 360,190.00


NRI: € 1,213,669.08

11.60

8.62%

10.68

9.37%

6.78%



lettable area (vacant) 1,093.93 m²

Market Value:








Project Rose Portfolio 30.09.2012 Properties BSB III Wolfsburg Burgwall‐Braunschweiger Str. Page 2 of 55


1 Instructions .............................................................................................................................. 4




3.2 Land register (Leasehold) ........................................................................................................................ 7

3.3 Tenants, management .......................................................................................................................... 10



4.2 Basic statistical data (Source: State Statistics Offices) .......................................................................... 13

4.3 Key data Region Wolfsburg ................................................................................................................... 15


5.1 Micro Location ...................................................................................................................................... 16


6 Buildings ................................................................................................................................ 25

Burgwall ............................................................................................................................................................ 25

Braunschweiger Strasse .................................................................................................................................... 26

7 Market Overview ................................................................................................................... 28

7.1 Schedule of rent for Wolfsburg ............................................................................................................. 28

7.2 Habitation Price Wolfsburg from ImmobilienScout24 .......................................................................... 37

7.3 Summary ............................................................................................................................................... 40

8 Valuation ................................................................................................................................ 41





9 Market Value ......................................................................................................................... 44



10.2 Market Value ......................................................................................................................................... 47


10.4 Documents ............................................................................................................................................ 48

10.5 Assumptions .......................................................................................................................................... 48

Appendices:



Appendix 3: Photos

Appendix 4: Standard Ground Value

Appendix 5: Building Encumbrances



1 Instructions


represented by


14 Ehad Adam Street


Property: Long‐term leasehold

Burgwall 13‐17 / Braunschweigerstr. 99‐101

38444 Wolfsburg


In accordance with: Approved Property Standards of the European





Building Code)

Valuation date: 31th September 2012

On‐site inspection: 27th September 2011




Participants: Mrs. Petra Schoebel for Schlicht und Kollegen and

Mrs. Rohde for Estavisio


Owner: BSB III BV & Co. KG

Report written by:

Klaus Schlicht MRICS Assoc MAI

Linienstr. 127

10115 Berlin

Conflict of interest We confirm that Klaus Schlicht MRICS Assoc MAI

acted as independent Valuer and that he has no

conflict of interest in acting on your behalf in this

matter. We confirm that he has or has had no other


fee earning relationship with BSB, its directors or

the property.


Summary Excel rent‐role CGG dated 17.10.2012

provided by Estavisio

Investigations: City authorities of Wolfsburg (key data, economic

structure, cadastral map, building laws, zoning plan)


Database Geoport, Immobilienscout, Official Board of Valuers

City of Wolfsburg, Thomas Daily City Survey, Valeu‐

ro
















‘The estimated amount for which an asset or liability should exchange on the valuation

date between a willing buyer and a willing seller in an arm’s‐length transaction after

proper marketing where the parties had each acted knowledgeably, prudently and

without compulsion’.




Federal State: Lower Saxony

Administrative region: Wolfsburg

Administrative district: Wolfsburg

City: Wolfsburg

3.2 Land register (Leasehold)

Although we asked several times, and although there was more than 2 months time

we did neither get new fully new dated land registers, nor did we get an authorisation

to ask for them by ourselves. So we use the old land registers for the Pages 6048 and

6066 and the new one for 6071

We received 2 leasehold land register dated 03.09.2007 – Pages 6048, 6066

We received 1 leasehold land register dated 26.08.2011 – Pages 6071

Local court of (Amtsgericht) Wolfsburg

Burgwall 9, 11, 13

District (Grundbuchamt) Wolfsburg, Page (Blatt) 6048

Inventory (Bestandsverzeichnis)

Section II

Land servitude (Grunddienstbarkeit) in favour of the owner of the leasehold

ground concerning the leasehold fee (Erbbauzins Höhe).

Option to buy (Vorkaufsrecht) in favour of the owner of the leasehold ground

(Erbbaurechtsgebers).

An easement in favour of the city electricity company to maintain a transform‐

er station on the ground

Flur 9 Land parcel

(Flurstück)

8/309

Building and courtyard space

(Hof‐ und Gebäudeflächen)

Burgwall 9, 11, 13

4,807 m²


Burgwall 15, 17



Section I

Owner – Grundstücksgesellschaft BSB III BV & Co KG, Berlin dated 29.08.2007

Section II





Braunschweigerstr. 99, 101



Section II





Flur 9 Land parcel

(Flurstück)

8/310



Burgwall

8,976 m²

Flur 9 Land parcel

(Flurstück)

8/311



Braunschweigerstr.

5,741 m²


Building Encumbrances

We were told that there is a building encumbrance (Baulast), in favour of land

parcel 6066, for a car park, at a neighbouring peace of land owned by the city

of Wolfsburg. We have learned in 2009 that the annual fee for the car parc is

4,946.24 €. We got no information about the current costs. Although we asked

and although there was 2 months time we did not get any copies of the build‐

ing encumbrances nor the authorisation to get them by our own, therefore we

assume that the information is right.

There are building encumbrances at the land parcels 8/310, 8/311. “Ver‐

einigungsbaulasten” – building encumbrances with the content that the two

land parcels ought to be seen as one. And right of way for a public way. Both

do not inflict the value.

In contrary to the amount named in the register, we were told that the leasehold fee for all land par‐

cels named above now reached a height of 102.558,92 € p.a.



Burgwall 13‐17 with Braunschweiger Str. 99‐101

The rent roll is too long to be pictured here.

Major Tenant is a VW daughter company called “Autovision” which permanently in‐

creased its office space, so there is no vacant office space anymore at the subject

property. We learned from the client that VW announced that they will early prolong

their current rental contract at a higher rent, if a canteen will be built on the site from

the applicant. We take this into account only as a positive aspect at the All‐Risks‐Yield.

Tenant lists were provided by Estavisio GmbH. The rental contracts were not inspect‐

ed. For this valuation we assume that the content of the tabloids is correct.



Main Area Contract rent Area Contract / m²

1 Residential 50,299.66 € 8,705.22 m² 5.78 €/m²

2 Residential furnished 17,841.01 € 1,660.72 m² 10.74 €/m²

3 Retail 640.84 € 119.32 m² 5.37 €/m²

4 Storage 2,630.62 € 820.96 m² 3.20 €/m²

5 Office 53,815.44 € 8,319.00 m² 6.47 €/m²

6 Antenna 704.33 € 80.0 m²

7 Parking 2,610.00 € 174 ST 15.00 €/St.

Total 128,541.90 € 19,705.22 m²

174 ST

Vacant

8 Residential 942.26 m²

9 Residential furnished 81.53 m²

10 Retail 70.14 m²

11 Storage 15.00 m²

Total 128,541.90 € 20,814.15 m²

Annual GRI rd. 1,542,503.00 €

Burgwall‐Braunschwei




Übersicht Bundesland: Niedersachsen

Kreis: Wolfsburg

Quelle: Einordnung Deutschland, Tele Atlas Deutschland GmbH, Harsum Aktualität: April 2006

_____________________________________________________________________


Regional map with Infrastructural Information

Infrastructure Name Distance Direction

Nearest Airport Hannover Airport 74,07 km W

Nearest Railway station Wolfsburg 2,39 km N

Nearest highway exit 4 AS Fallersleben, A39 3,07 km W

Nearest central cities

Wolfsburg 1,54 km N

Hannover 71,24 km W

Hamburg 138,14 km NW

Source: Übersichtskarte mit Infrastrukturinformationen, Tele Atlas Deutschland GmbH, Harsum Status: April 2006


4.2 Basic statistical data (Source: State Statistics Offices)


Wolfsburg

Adm. district Kreisfreie Stadt Wolfsburg

Federal state Niedersachsen

Germany


121.1092009

7.928.815 2009

81.802.2572009

‐ below 18 years (in %) 15,472009

15,472009

17,75 2009

16,482009


23,732009

20,84 2009

20,662009

‐ ratio municipality vs. … (in %) 100,00 100,002009

1,53 2009

0,152009

Migration

‐ immigration into municipality 5.7502009

5.7502009

455.355 2009

4.357.4652009

‐ immigration rate (in %) 4,752009

4,752009

5,74 2009

5,332009

‐ emigration out of municipality 4.8962009

4.8962009

450.503 2009

4.370.1782009

‐ emigration rate (in %) 4,042009

4,042009

5,68 2009

5,342009

Unemployed persons

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6,506.2011

7,4 06.2011

7,706.2011

State benefits

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,172009

0,47 2009

0,382009

Foreign nationals

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 11,742009

6,59 2009

8,722009

‐ immigration into municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1.6012009

94.853 2009

998.9692009

‐ immigration rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1,322009

1,20 2009

1,222009

‐ emigration out of municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1.4322009

90.017 2009

971.4272009

‐ emigration rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1,182009

1,14 2009

1,192009


Wolfsburg



Germany

Hospitals ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 12008

196 2008

2.0832008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6652008

41.905 2008

503.3602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5,522008

5,27 2008

6,142008


131 2008

1.2392008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 02008

17.773 2008

171.0602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,002008

2,24 2008

2,092008



Wolfsburg



Germany


392009

5.697 2009

53.7452009

‐ thereof hotels ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 362009

3.301 2009

35.8712009

‐ beds 2.8122009

2.8122009

269.038 2009

2.797.0672009


42,222009

34,56 2009

35,162009


216.2202009

10.687.659 2009

130.188.3912009

‐ overnight stays 433.3602009

433.3602009

33.935.648 2009

358.920.7412009


2,002009

2,002009

3,18 2009

2,762009


Wolfsburg



Germany


30,582008

13,45 2008

13,202008


42,812008

60,35 2008

52,552008

‐ forest 23,452008

23,452008

21,50 2008

30,062008

‐ water 2,742008

2,742008

2,32 2008

2,382008


0,432008

2,38 2008

1,832008


Municipality Wolfsburg



Germany

‐ living 31,752008

31,752008

30,35 2008

24,892008


16,572008

7,96 2008

8,522008


13,982008

6,69 2008

8,032008

‐ traffic 25,932008

25,932008

37,71 2008

37,742008

‐ other 11,762008

11,762008

17,29 2008

20,822008


Wolfsburg



Germany


1502009

7529 2009

690782009


232009

702 2009

74102009


52009

400 2009

61072009


262009

2748 2009

526202009


3.573 2009

26.4582009

‐ business space in 1.000 sqm ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 182009

3.383 2009

27.9402009


4.3 Key data Region Wolfsburg

(Source:www.meinestadt.de/INCAR)

Area (in sq km): 204

Total population: 121,109 (31.12.2010) slightly declined

Population per km²: 593

Development in births: ‐ 2.5 Promill

Development in migration: ‐ 1.6 Promill

Economical Structure

Agriculture: 0.3 %

Manufacturing: 64.4 % although it dropped slightly – it is still ex‐

traordinary high

Retail, tourism, transport: 35.2 %



5.1 Micro Location

The property is located in the southwest of Wolfsburg, directly situated at a major ar‐

terial road.

The District of Rabenberg is a quiet innertown area at the city forest. Rabenberg is the

historical Center of Wolfsburg – there the city was founded in the early middle ages.

The social structure in the district is balanced on a middle class level, the average age

of the inhabitants is higher and the percentage of non german lessees is above the

Wolfsburg average. The purchase buying index is clearly above the German average,

and little bit above the average of Wolfsburg itself. The property is a stand alone build‐

ing.

The buildings next to the subject property in the district of Rabenberg are about the

same age and condition, most of them are multi‐family homes.


Detailed City Map (ADAC)

Source: Straßenkarte D20, MAIRDUMONT PROMOTION, Ostfildern (Kemnat) Status: Ausgabe 4/2006

_____________________________________________________________________





Micro Market Data:


Micro market name Rabenberg Municipality Wolfsburg


636

Area in sqkm 3,63


Classification of utilization Wohngebiet

Social environment Älter‐statusarmes Milieu

Prevailing businesses nicht anwendbar


Dominante Lebensphase 75 und mehr Jahre Dominante Lebensphase 65 bis unter 75 Jahre

Centrality / functional range index Oberzentrum

Type of area Verstädterter Raum

















Single‐person households 670 50,4 Households (head of h.h. aged 35 to 44 years) 160 12,0






Highest graduation

Volks‐ / Hauptschulabschluss 836 36,2 Realschulabschluss 551 23,9

Grammar school graduation 591 25,6 without / not known 332 14,4



without / not known 772 33,4


Employed 998 Clerk, civil servant, apprentice in this field 618






140



157



242



189






6.441



109,2






84,8

Creditworthiness


Cars

Private cars (total) 920 Private cars per household 0,69


Buildings and flats

Buildings (total) 216 Flats (total) 1.292





1.179 91,3




9




Source: AK5, Landesvermessung + Geobasisinformation Lower Saxony, Hanover, online


Source: AK5, Landesvermessung + Geobasisinformation Niedersachsen, Hannover Status: online, wochenaktuell


Surface: level,

Roads and services: adopted public road,

electricity supply,



gas connection


Zoning Map We have made enquiries of the local town planning

authority. We are informed there is a valid

development plan for the site (No. 2‐67‐346,

Rabenberg‐Burgwall). This plan became legally

binding on 11.06.1968. This zones the property as

residential area (WA). This is for residential uses

mainly. Pubs, shops for local consumption, non‐

interfering craftsman businesses as well as social

and sports facilities or churches are permitted. The

plot ratio (GFZ) is 1.2, number of storeys max. 8. We

assume the property has been built in accordance

with all planning consents and regulations.

Classification: land ripe for development § 4 Abs. 4 BauNVO

Subsoil conditions: No information was available concerning the subsoil

conditions. It was assumed, without verification,

that there are no special, i.e. value relevant, subsoil

conditions and in particular no contamination.


6 Buildings




Burgwall

Evaluation of the objects

Evaluation Comment

facade Large‐sized concrete panel, washed concrete plates

roof Flat roofs covered with foil sheet and layer of gravel, as good as new, in good condition.

windows About 99 % double‐glazed windows with wooden frame in average condition; about 1 % windows with plastic frames in good condition.

entrance Entrance doors in good condition.

appurtenant structures Paved areas

Concrete block paving in the courtyard, some areas asphalted, good condition.

Rain water drains in functional condition.

New asphalted road. Unpaved areas / gardens

Courtyard areas planted, gardens available, in a well‐kept condition.

35 parking bays with concrete block paving /concrete grass pavers, as good as new (2005).

highlights/description 5 ‐14‐storey reinforced concrete structure (basement, ground floor, 1st up to and including the 12th floor) Underground garage no, but parking deck Type of structure Large‐sized reinforced concrete Panels, About 245 residential units 350 parking spaces for passenger cars incl. those on parking deck We learned that the apartments are getting system‐atically renovated when they become vacant. Referring to the TDD by Drees and Sommer, the building condition is relatively good. We reduced the height of the necessary capEx due to the measures the owner took over the years and the



Evaluation Comment

information of the Asset Management about the cost estimations of construction companies. Most of the offices are rented to the same tenant like Braunschweiger Str. – a VW daughter company.

Braunschweiger Strasse


Evaluation Comment

facade Large‐sized concrete panel covered with washed concrete components. Balconies and terrace walk‐ways in good condition.

roof Flat roof with bituminous sheeting (roofs above ground floor) and layer of gravel. Main roof: foil sheet (not properly laid to falls, pud‐dles were identified).

windows Windows: wooden frame with aluminium facing, good condition.

entrance Entrance door in good condition.

appurtenant structures Parking deck (2 levels) made of reinforced con‐crete/exposed concrete, in good condition. Paved areas

Concrete block paving for parking spaces for passenger cars.

Rain water drains in functional condition.

Own roads covered with poured asphalt, as good as new, good condition.

Pathways made of concrete slabs, good cond tion.

Unpaved areas / gardens

Courtyard areas planted, gardens available, in a well‐kept condition.

35 additional parking bays installed in 2005.

highlights/description 6‐storey reinforced concrete structure Type of structure Reinforced concrete frame with a curtain wall consisting of washed concrete components. Property refurbished/modernized in 2002. Cleaning of the façade components in 2003. Fit‐out of the entire basement so as to accommodate offices (2002/2003).



Evaluation Comment

The building – office space and roof was renovated and modernised in 2008 and 2009, we were told that the owner spent for that about 350.000 € and the tenant about 1.000.000 €. Asset Manager told us that the restored a park deck this year and renovated more of the flat roofs. The office tenant shares with the tenants of Burgwall the parking lots at the park decks – which are situat‐ed between the two buildings. Referring to the TDD by ‘Drees and Sommer’, the building condition is relatively good.

Vacancy (visible) Both Buildings

Evaluation Comment

Residential/office We learned that there are still several vacancies, mostly flats. But the vacancy size reduced in total for nearly 60 % within one year.


7 Market Overview

7.1 Schedule of rent for Wolfsburg

7.1.1 Akkommodation rent from Immobilienscout

Period of analyses: April 2012 till September 2012

Postcode District 38444 Municipality Wolfsburg




Total number of inquiries1 1,011 1,348





277 276


Map Micro / Makro Market:



Residential rents in the Postcode District 38444:

Offers (based on: 117 offers) Inquiries (based on: 1,011 inquiries)1

Living area Number of offers (rate)

Basic rent per m²

Spread interval (90 %)

Number of inquiries

Basic rent per m²


Up to 30 m² 16 (13.7 %) 6.00 € 4.91 € ‐ 10.43 € 26 (2.6 %) 9.36 € 5.00 € ‐ 15.75 €

31 – 60 m² 41 (35 %) 6.59 € 5.05 € ‐ 10.08 € 469 (46.4 %) 6.41 € 4.31 € ‐ 9.38 €

61 – 90 m² 49 (41.9 %) 5.10 € 4.04 € ‐ 6.58 € 323 (31.9 %) 5.55 € 3.75 € ‐ 7.98 €

91 – 120 m² 8 (6.8 %) 6.37 € 4.17 € ‐ 10.83 € 150 (14.8 %) 5.71 € 3.48 € ‐ 8.33 €

over 120 m² 3 (2.6 %) 7.91 € 4.50 € ‐ 10.26 € 43 (4.3 %) 4.85 € 2.50 € ‐ 7.14 €

Residential rents in the Municipality Wolfsburg:

Offers (based on: 350 offers) Inquiries (based on: 1,348 inquiries)1


Basic rent per m²


Number of inquiries

Basic rent per m²


Up to 30 m² 60 (17.1 %) 6.41 € 5.11 € ‐ 10.00 € 35 (2.6 %) 8.91 € 5.00 € ‐ 15.75 €

31 – 60 m² 106 (30.3 %) 7.00 € 4.77 € ‐ 10.35 € 617 (45.8 %) 6.37 € 4.31 € ‐ 9.38 €

61 – 90 m² 111 (31.7 %) 5.99 € 4.35 € ‐ 9.38 € 438 (32.5 %) 5.69 € 3.89 € ‐ 8.24 €

91 – 120 m² 37 (10.6 %) 7.48 € 4.17 € ‐ 12.28 € 187 (13.9 %) 5.70 € 3.44 € ‐ 8.33 €

over 120 m² 36 (10.3 %) 7.67 € 4.10 € ‐ 10.26 € 71 (5.3 %) 5.16 € 2.50 € ‐ 7.38 €

1 The number of inquiries is the sum of all inquiries in the contained and significantly intersected zip code areas.


Market overview

Index of requests (related to Germany = 100) Average rent per m²

Legend for request index map (Index of total number of views of expose per offer per offering day (Germany = 100)):







(related to the German average) Source: IS24 ‐ Mietpreise für Wohnimmobilien, Immobilien Scout GmbH, Berlin Status: September 2012


7.1.2 F+B – rent summary on time scale

Sustainable rent (€/sqm):

Municipality: Wolfsburg

Apartment size: Small Apartment (smaller than 50 m²)

Year of construction: 1970 ‐ 1979

Equipment: Average

Basic Location Average Location Good Location

Sustainable rent (€/m²) as of 01.07.2011: (Miete Schätzwert, normiert auf einheitlichen Stichtag)

5,36 5,96 6,56

Sustainable rent (€/m²) as of 01.07.2009: (Miete Schätzwert, normiert auf einheitlichen Stichtag)

5,32 5,91 6,51

Change in %: 0,75 0,85 0,77

Source: GBS‐D Grundstücks‐Bewertungs‐Spiegel Deutschland, F+B Forschung und Beratung für Wohnen, Immobi‐

lien und Umwelt GmbH, Hamburg Status: Stichtag 01.07.2011


7.1.3 Accomodation rent by Plötz


1999 (in DM/m²) 12‐15 10‐11 8‐10

2000 (in DM/m²) 12‐15 9,5‐11 8‐9,5

2001 (in DM/m²) 12‐15 10‐12 8‐10

2002 (in DM/m²) 13‐15 9,5‐12 8‐9,5

2003 (in EUR/m²) 6‐7 4,75‐6 3,75‐4,75

2004 (in EUR/m²) 6‐7 4,5‐6 3,5‐4,5

2005 (in EUR/m²) 6‐7 4,5‐6 3,5‐4,5

2006 (in EUR/m²) 5,5‐7 4,25‐5,5 3,25‐4,25

2007 (in EUR/m²) 5,5‐7 4,25‐5,5 3,5‐4,25

2008 (in EUR/m²) 5,5‐6,5 4,25‐5,5 3,5‐4,25

2009 (in EUR/m²) 5,5‐7 4,25‐5,5 3,5‐4,25

2010 (in EUR/m²) 6‐8 5‐6 4,2‐5

2011 (in EUR/m²) 6‐8 5‐6 4,2‐5

2012 (in EUR/m²) 6‐8 5‐6 4,2‐5

Source: Plötz Immobilienführer, Immobilien Informationsverlag Rudolf Müller GmbH & Co.KG, Köln Status: online











Total number of views of expose per offer per offering day 1.2 2


69 115


Map Micro / Macro Market:





1


Offices 5 7.57 € 6.03 € ‐ 11.50 € 0

Retail 5 13.43 € 9.52 € ‐ 16.93 € 9


Storage / Manufactoring 0 1

Others 2 2.33 € 2.33 € ‐ 2.33 € 7

Commercial rents in the Municipality Wolfsburg:


1


Offices 30 13.38 € 5.90 € ‐ 50.07 € 3

Retail 27 16.15 € 4.85 € ‐ 44.91 € 11



Others 2 2.33 € 2.33 € ‐ 2.33 € 7



Market overview










7.1.5 Commercial rent by Plötz

Offices:


1999 (in DM/m²) 20‐28 15‐21

2000 (in ) 20‐28 15‐21

2001 (in DM/m²) 20‐28 13‐16 10‐12

2002 (in ) 20‐28 15‐21

2003 (in EUR/m²) 8‐12 7‐8 5‐7

2004 (in EUR/m²) 8‐11 6,5‐8 5‐6,5

2005 (in EUR/m²) 8‐10 6,5‐8 5‐6,5

2006 (in EUR/m²) 7,5‐9 6‐7,5 5‐6

2007 (in EUR/m²) 7,5‐9 6‐7,5 5‐6

2008 (in EUR/m²) 7,5‐9 6‐7,5 5‐6

2009 (in EUR/m²) 7,5‐9 6‐7,5 5‐6

2010 (in EUR/m²) 8‐10 6,5‐8 5‐6,5

2011 (in EUR/m²) 8‐10 6,5‐8 5‐6,5

2012 (in EUR/m²) 8‐10 6,5‐8 5‐6,5


7.2 Habitation Price Wolfsburg from ImmobilienScout24

Period of Analyses: April 2012 till September 2012










102 149





Residential prices in the Postcode District 38444:

Offers (based on: 128 offers) Inquiries (based on: 219 inquiries)1

Object type and living

area

Number of offers (rate)

Price per m²


Number of inquiries

Price per m²


Apartment up to 70 m²

34 (26.6 %) 978 € 712 € ‐ 1,436 € 22 (10 %) 900 € 410 € ‐ 1,385 €

Apartment 71 – 120 m²

47 (36.7 %) 881 € 672 € ‐ 1,294 € 62 (28.3 %) 1,043 € 60 € ‐ 1,882 €

Apartment exceeding 120

m² 5 (3.9 %) 761 € 679 € ‐ 863 € 10 (4.6 %) 1,412 € 1,025 € ‐ 2,179 €

House up to 120 m²

10 (7.8 %) 1,641 € 1,229 € ‐ 2,375 € 25 (11.4 %) 1,255 € 615 € ‐ 1,800 €

House exceed‐ing 120 m²

32 (25 %) 1,712 € 1,000 € ‐ 2,863 € 100 (45.7 %) 1,407 € 500 € ‐ 2,250 €

Residential prices in the Municipality Wolfsburg:



area


Price per m²


Number of inquiries

Price per m²



91 (19 %) 1,037 € 738 € ‐ 1,515 € 29 (10.3 %) 919 € 410 € ‐ 1,385 €


103 (21.5 %) 1,261 € 698 € ‐ 2,247 € 79 (28 %) 1,316 € 60 € ‐ 2,348 €


m² 20 (4.2 %) 1,149 € 679 € ‐ 2,175 € 13 (4.6 %) 1,401 € 650 € ‐ 2,280 €

House up to 120 m²

46 (9.6 %) 1,696 € 1,159 € ‐ 2,292 € 36 (12.8 %) 1,203 € 615 € ‐ 1,800 €


218 (45.6 %) 1,578 € 625 € ‐ 2,619 € 125 (44.3 %) 1,371 € 531 € ‐ 2,036 €



Market overview

Index of requests (related to Germany = 100) Average price per m²








(related to the German average) Source: IS24 ‐ Kaufpreise für Wohnimmobilien, Immobilien Scout GmbH, Berlin Status: September 2012


7.3 Summary

The economy of Wolfsburg is dominated by VW, because of that most companies in

the city are somehow related to Wolfsburg. Offices in Wolfsburg are mostly used in re‐

lation to production places. Therefore there is a very small office market in Wolfsburg

with a limited demand and supply.

The major tenant changed 2011 from Volim to Autovision – both are VW daughter

companies. The office rent of Autovision is clear below the market for that kind of a

good quality office, for that reason the Valuers used in the valuation the market rent

and not the contract rent. The underrent sum for the period of the rental contract with

Autovision will be deducted. The market rent set for the office space is around the av‐

erage, respectively even a bit below, depending on the date source.

VWs business is running extraordinarily well and so Autovision rented in 2012 the rest

of the vacant office spaces at the subject property. Thus the vacancy in the subject

property declined for nearly 60 %.

The rental contracts with Autovision are running till 31.12.2016, they offered to pro‐

long early and increase the current rent, if the client is building them a canteen. Nego‐

tiations are not finished so we do not show this explicitly and take it only as a positive

influence to the yield.

For the rest of the usage the Valuer adopted the actual rents in their assessment of the

capitalized income value ‐ which, according to research, are within the rental spread,

in fact around or even below the average.


8 Valuation





Comparable properties are dealt with from a yield point of view.

The following valuation has therefore been based on the internationally‐common “in‐

vestment method”.

We understand that the property is subject to leasehold.



We understand the property is a long‐term leasehold (Erbbaurecht).




Regarding the rental situation please see above Bullet 7.2.

Risks with regard to rental levels and vacancy rates are incorporated in the all‐risks

yield.








qualities, the interest rate increases in line with each tenant’s creditworthiness and


loss of rental income risks. The yield also depends on the competition in the catchment

area and risks concerning the tenants.

As shown above, the leases used at the valuation are at average or even clear below,

and all vacant office space is rented. With VW‐Autovision the client has a solid major

tenant who is constantly increasing its rental space and is investing large amounts in

the site also. The client is also still investing in the subject property – last in repairing

the parking deck and renovation of some of the flat roofs. And there is a nationwide

investment boom situation for all kind of multi‐family homes. But there is only a very

small investment market in Wolfsburg.

Because of this situation, we consider an All‐Risks‐Yield of 6.00 % to be appropriate for

the property.


Regarding non recoverable costs, we have estimated the costs for non recoverable op‐

erating costs and costs for management and maintenance. The estimates for that sub‐

ject property run at 3.0 % for non rec. service charge; 4.0% for management, 9.0

€/sqm because of the many little flats and the furnished apartments; for management

of the parking deck 30 € p.a. per single lot.


to the tenants.

8.2.5 Ground lease

We understand that like last year the current ground lease is at Braunschweigerstr.

34,804.27 € p.a. incl. the fee (4,946.24 € in 2009 – our last information) for the extra

parking space and at Burgwall 67,754.65 € p.a..

8.2.6 Rental Void

There are vacant residential spaces. We have been told that the vacant apartments will

be renovated. So it is reasonable to assume that on the basis of average rents – it can

be re‐let within – 15 months.

Due to many small apartments we assume an average yearly void allowance of 3 %

from GRI for the whole property, although for residential space 2 % would be the usual

number.


As mentioned we assume that within 15 months the empty space can be relet, so far

the refurbishments measures are carried out. For the refurbishment measures we kept

the money on a higher level – to be sure to re‐let the apartments, in a market with

such a weak space turnaround like Wolfsburg.






8.3.1 SWOT Analysis

Strengths:

Good location for that kind of use

Surrounded by pretty landscape within the city

Low rents for modern offices (Autovision)

Strong tenant – Autovision – a Volkswagen daughter company

Small rental amounts in total per flat because of the small units

Demand for such kind of a property especially by workers of VW

Close to a district center within the city (the district of Rabenberg)

A lot of parking space

A lot of cap ex was and will be put in the property recently

Weaknesses:

Because of the high number of small Flats there will always be a higher fluctuation

Less attractive appearance of the concrete facade

Opportunities:

Long term development potential, because of its good location in the city

Threats:

The whole economy in Wolfsburg depends on VW. Currenty they are successful

but there might come other times.

8.3.2 Saleability







circumstances thus:


on markets. This could manifest itself by either panic buying or selling, or simply a dis‐

inclination to trade until it is clear how prices in the market will be affected in the long‐


er term. If the valuation date coincides with the immediate aftermath of such an event,








stated.


9 Market Value



above:

Market Value “As is” (derived from investment method): 17.900.000 €



On the basis of the foregoing and with express reference to Section 10 of this valua‐


Burgwall 13 – 17, Braunschweigerstr. 99 ‐101 in 38444 Wolfsburg, on the valuation

date of 30th September 2012 is

€ 17,900,000.00

(Seventeen million nine hundred thousand Euro)


Klaus Schlicht, MRICS Assoc. MAI




This appraisal has been prepared in accordance with the International Valuation

Standards 2011 and the RICS Appraisal and Valuation Standards. In the context of the

valuation Klaus Schlicht has acted as an external Valuer working in a fee earning capac‐

ity for the named client. Klaus Schlicht does not have any direct or indirect personal or

corporate relationships with the properties or company that is the subject of this as‐

signment and that might lead to a potential conflict of interest. Furthermore, the

agreed compensation is not contingent upon any aspect of the report, including the

valuation results.







The valuer has not previously completed a valuation in respect of this portfolio and has

had no other material relationship with the client to date.

10.2 Market Value











public‐law restrictions (protection of listed monuments, nature conservation law etc.);



chbarrecht (law concerning the respective interests of occupiers of adjoining proper‐

ty);

limited real rights (rights of use, safeguarding and disposal, rights of acquisition etc.);

rights equivalent to real property (ground leases, mineral rights etc.).









10.4 Documents



nical‐due‐diligence (e.g. building structure, partitioning, fit out etc.). The delivered

documents (tenant lists, technical reports) for the above calculations were not audited

by the Valuer.

Klaus Schlicht (the Valuer) was not provided with the following documents by the cli‐

ent and the documents were not requested by the Valuer as ordered by the client:

‐ a comprehensive legal due diligence – espec. for the lease hold

‐ rental contracts



10.5 Assumptions





For the purposes of this valuation, it has therefore been assumed that the site is free

of contamination and that its characteristics as regards development would not in‐

volve any expenditure higher than is normal in the location, unless the external non‐











ceptances, conditions etc.) or of any private‐law provisions affecting the existence or

user of the land and buildings has been carried out;

No investigations with regard to infestation by animal or vegetable pests (in timber or

masonry) or corrosion (in copper pipe work) have been carried out;

No investigation of the buildings with respect to deleterious materials (e.g. asbestos,

formaldehyde, high alumina cement etc.) has been carried out;


been tested;

It has been assumed, without verification, that as at the date of valuation the subject

property is covered by insurance, both as regards the type of potential damage and

the appropriate amount of the sum insured.










Appendices





1 Residential 50,299.66 € 8,705.22 m² 5.78 €/m² 5.78 €/m² 50,299.66 €

2 Residential furnished 17,841.01 € 1,660.72 m² 10.74 €/m² 10.74 €/m² 17,841.01 €

3 Retail 640.84 € 119.32 m² 5.37 €/m² 5.37 €/m² 640.84 €

4 Storage 2,630.62 € 820.96 m² 3.20 €/m² 3.20 €/m² 2,630.62 €

5 Office 53,815.44 € 8,319.00 m² 6.47 €/m² 7.00 €/m² 58,233.00 €

6 Antenna 704.33 € 80.0 m² 704.33 €

7 Parking 2,610.00 € 174 ST 15.00 €/St. 15.00 €/St. 2,610.00 €

Total 128,541.90 € 19,705.22 m² 132,959.46 €

174 ST

Vacant

8 Residential 942.26 m² 5.78 €/m² 5,444.48 €

9 Residential furnished 81.53 m² 10.74 €/m² 875.87 €

10 Retail 70.14 m² 5.37 €/m² 376.71 €

11 Storage 15.00 m² 3.00 €/m² 45.00 €

Total 128,541.90 € 20,814.15 m² 139,701.52 €

Annual GRI rd. 1,542,503.00 € 1,676,418.00 €

Burgwall‐Braunschweiger Str. Wolfsburg


Property: Burgwall ‐ Braunschweiger Straße

Address: Wolfsburg

€ 17,900,000

6.00 %

11.60

8.6%

€ 1,676,418.00

(at market)

in % of GRI: 3.00 % = € 50,293.00

in % of GRI: 3.00 % = € 50,293.00

management

4.00 % = € 67,057.00

maintenance

per m² p.a. 9.00 €/m² = € 187,327.00

per parking lot p.a. 30.00 €/pc. = € 5,220.00


in % GRI: 21.5 %

Ground Lease € 102,558.92

€ 1,213,669.08

x 16.667


Capex Burgwall incl. 2 Parkdecks ‐€ 330,000.00

Underrent Office Space VW 53,010.72 €

(Standard lease term) 4.25 years 5.50% 3.70 = ‐€ 196,155.10

Vacancy

loss of GRI 15 months x 6,742.05 € € 101,130.79

operating costs 1,093.93 m² x 1.0 €/m² € 16,408.95

Refurbishment 1,093.93 m² x 200.0 €/m² € 218,786.00

Letting costs (Advertisement+Agent) 5 months x 6,742.05 € € 33,710.26

Total Vacancy costs ‐€ 370,036.01


4.5 % = € 805,501.00

2.0 % = € 358,001.00

1.5 % = € 268,500.00

say: € 1,432,002.00

* € 17,900,029.89


key data

11.60

8.62%

10.68

9.37%

6.78%

Value / m² ‐ lettable area 860 €/m²






void allowance

market value as is:

All Risks Yield





Calculation:


agent

Summary

legal & notary





x multiplier


tax



Yield

15,820,000.00 €6.75%0.75%

16,460,000.00 €6.50%0.50%

17,150,000.00 €6.25%0.25%

17,900,000.00 €6.00%Original Yield

17,710,000.00 €5.75%‐0.25%

19,600,000.00 €5.50%‐0.50%

20,570,000.00 €5.25%‐0.75%

Wolfsburg

Burgwall


Appendix 3: Photos

Appendix 4: Building Encumbrances Appendix 5: Land Register – we got only an actual register of Page 6071 Content deleted due to file capacity by order of applicant

V A L U A T I O N of the Market Value of the properties “BSB II”:

Kronacher Straße 9 in 07333 Unterwellenborn


30th September 2012



€ 22.650.000,00Kronacherstr. 1‐9 incl. add. Landvalue € 550.000

key data without land value:

6,25 %

GRI € 1.686.813,00

€ 188.413,00

Void allowance 2,00 %

NRI: € 1.498.400,00

13,10

7,63%

13,10

7,63%

6,78%

lettable area (total): 16.363,01 m²

lettable area (let) 16.363,01 m²

lettable area (vacant) 0,00 m²








Market Value:

Project Rose Portfolio 30.09.2012 Properties BSB II Unterwellenborn, Kronacherstr. 9 Page 2 of 48


1 Instructions .............................................................................................................................. 4




3.2 Land register 30.08.2011 ........................................................................................................................ 7


4 Description of the Subject Property .......................................................................................... 9


4.2 Basic statistical data .............................................................................................................................. 11


5.1 Micro Location ...................................................................................................................................... 13


6 Building .................................................................................................................................. 21

6.1 Building ................................................................................................................................................. 21



7 Schedule of rent ..................................................................................................................... 24

7.1 Commercial rent from ImmobilienScout24........................................................................................... 24

7.2 Retail trade Competition ....................................................................................................................... 27

7.3 Summary ............................................................................................................................................... 31

8 Valuation ................................................................................................................................ 33




9 Market Value ......................................................................................................................... 39




10.2 Market Value ......................................................................................................................................... 40


10.4 Documents ............................................................................................................................................ 41

10.5 Assumptions .......................................................................................................................................... 42

Appendices:


Appendix 2: Sensitivity Analysis for Changes All Risk Yield

Appendix 3: Photos



1 Instructions


represented by


14 Ehad Adam Street


Property: Kronacher Straße 1/9

07333 Unterwellenborn

(District of Oberwellenborn, parcels of land 261/3,

260/1, 258/3, 266/2

District of Unterwellenborn , parcels of land 760/6,

879, 880, 835/8, 890,758/6, 729, 728/9, 731, 763/4,

885, 732, 883/1, 878, 762/4, 757/4, 733, 886, 730,

728/12, 728/13, 734/1, 838/5, 888/3, 875/4, 895/3,

897)





“Red Book” (8th Edition RICS, German Edition)


Building Code)


‐ Valuation date: 30th June 2012





‐ Participants: Petra Schoebel for Schlicht und Kollegen and Mr.

Bötcher for Estavisio



Report written by: Klaus Schlicht MRICS / Assoc. MAI

Linienstr. 127

10115 Berlin


Conflict of interest We confirm that the Valuer Klaus Schlicht acted as

an independent Valuer and that he has no conflict

of interest in acting on your behalf in this matter.

We confirm that he has or has had no other fee

earning relationship with the BSB, its directors or

the property.



provided by Estavisio

Investigations: City authorities of Unterwellenborn (key data, eco‐

nomic structure, cadastral map, building laws, zon‐

ing plan)


Database Valeuro, Immobilienscout, Geoport (with EHI),

HypZert
















The estimated amount for which an asset or liability should ex‐

change on the valuation date between a willing buyer and a

willing seller in an arm’s‐length transaction after proper mar‐

keting where the parties had each acted knowledgeably, pru‐

dently and without compulsion’.




Federal State: Thuringia

Administrative district: Saalfeld‐Rudolstadt

Town: Unterwellenborn


Land registry Local Court for Rudolstadt / Saalfeld

Land register for: Unterwellenborn

Oberwellenborn

3.2.1 Page 305

Inventory See annex

3.2.2 Sections I

Owner Grundstücksgesellschaft BSB II

3.2.3 Sections II (easements and restrictions)

Several drain rights ; no impact to the value

3.2.4 Section III

In carrying out this valuation, any land charges and mortgages recorded were not tak‐

en into account, as these liens do not influence the market value, rather the purchase

price of the property (see Section 2.3). It has been assumed that no interest ad‐

vantages or disadvantages would be incurred by a potential purchaser as a result of

any possible or inescapable assumption of them.


Although we asked several times we did not get any information concerning building

encumbrance (Baulast), and no “Vollmacht” a written authorisation to look for it by

ourselves. Therefore we assume that there is not impact from “Baulasten” to the val‐

ue.



Tenants:




Rent Roll Rosebud Portfoliolast update 17.10.2012

retail othersbase-ment

outdoorfor … years

retail others outdoorper

monthperyear

Praktiker Deutschland GmbHKronacher Straße 1, 7, 9, 11 7,768 19.07.1993 18.07.2018 2 x 5 6.84 53,114 637,372

Praktiker Deutschland GmbHKronacher Straße 1, 7, 9, 11 719 19.07.1993 18.07.2018 2 x 5 6.84 4,919 59,034

Praktiker Deutschland GmbHKronacher Straße 1, 7, 9, 11 200 19.07.1993 18.07.2018 2 x 5 0.00 0 0

Kaufland Warenhaus GmbH Kronacher Straße 1, 7, 9, 11 1,550 29.06.1999 31.12.2015 1.10 1,710 20,524

Kaufland Warenhaus GmbH Kronacher Straße 1, 7, 9, 11 7,876 01.10.1992 31.12.2015 10.26 80,823 969,882

Kaufland Warenhaus GmbH Kronacher Straße 1, 7, 9, 11 440 01.10.1992 31.12.2015 0.00 0 0

parking spaces

assettenant

rental area in sqmnet rent total

net rent €/m² /€ per parking lotparking

leasestart date

leasematurity

date

option



Overview Federal State: Thuringia

District: Saalfeld‐Rudolstadt

Source: Einordnung Deutschland, Tele Atlas Deutschland GmbH, Harsum Date: April 2006




Airport Erfurt 49.30 km NW

Next Railway Station Unterwellenborn 1.07 km W

Nearest motorway junction 52 AS Schorba, A4 24.47 km N


Jena 31.51 km N

Frankfurt am Main 206.11 km W

Hannover 224.84 km NW


4.2 Basic statistical data

Population key indicators Municipality Unterwellenborn

Adm. district Landkreis Saalfeld‐

Rudolstadt

Federal state Freistaat Thüringen

Germany


118.3032009

2.249.882 2009

81.802.2572009

‐ below 18 years (in %) 11,902009

11,462009

12,70 2009

16,482009


25,842009

23,05 2009

20,662009


0,29 2009

0,012009

Migration

‐ Immigration into municipality 2062009

4.1492009

90.638 2009

4.357.4652009


3,512009

4,03 2009

5,332009

‐ Emigration out of municipality 2372009

4.8952009

98.664 2009

4.370.1782009

‐ Emmigration rate (in %) 3,702009

4,142009

4,39 2009

5,342009

Unemployed persons

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8,906.2011

9,3 06.2011

7,706.2011

State benefits

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,362009

0,37 2009

0,382009

Foreign nationals

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1,802009

2,12 2009

8,722009

‐ Immigration into municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2432009

9.707 2009

998.9692009


0,43 2009

1,222009

‐ Emigration out of municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 3062009

9.025 2009

971.4272009

‐ Emigration rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,262009

0,40 2009

1,192009

Public health Municipality Unterwellenborn


Rudolstadt


Germany

Hospitals ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 32008

43 2008

2.0832008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8512008

15.954 2008

503.3602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7,102008

7,04 2008

6,142008


36 2008

1.2392008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 3552008

6.158 2008

171.0602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2,962008

2,72 2008

2,092008


Tourism Municipality Unterwellenborn


Rudolstadt


Germany

Accommodation 62009

1202009

1.367 2009

53.7452009

‐ thereof hotels ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 932009

1.058 2009

35.8712009

‐ beds 1672009

4.8082009

67.507 2009

2.797.0672009


27,292009

36,06 2009

35,162009


167.5772009

3.234.565 2009

130.188.3912009


478.8462009

8.885.933 2009

358.920.7412009


2,262009

2,862009

2,75 2009

2,762009

Land use (in %) Municipality Unterwellenborn


Rudolstadt


Germany


7,532008

9,14 2008

13,202008


36,022008

54,42 2008

52,552008

‐ forest 49,062008

51,952008

31,86 2008

30,062008

‐ water 1,112008

1,212008

1,22 2008

2,382008


3,292008

3,36 2008

1,832008


Municipality Unterwellenborn


Rudolstadt


Germany

‐ living 5,072008

5,402008

6,50 2008

24,892008


5,062008

6,44 2008

8,522008


3,672008

4,78 2008

8,032008

‐ traffic 36,592008

45,872008

44,87 2008

37,742008

‐ other 39,672008

39,992008

37,41 2008

20,822008

Completion of buildings breakdown Municipality Unterwellenborn


Rudolstadt


Germany


692009

1271 2009

690782009


22009

120 2009

74102009


22009

64 2009

61072009


522009

602 2009

526202009


716 2009

26.4582009


538 2009

27.9402009



5.1 Micro Location

The property is located on the edge of the town and adjacent to the Arcelor steel‐

works. In a mainly commercial area, there is though mostly agricultural land directly

neighboring the property. The federal B281 road is the nearest main road to the prop‐

erty, although the nearest motorway is the A4 at Jena.






Micro Market Data:


Micro market name Unterwellenborn Municipality Unterwellenborn


114

Area in sqkm 56,09







Centrality / functional range index Einzugsgebiet

Type of area Ländlicher Raum

















Single‐person households 1.214 37,7 Households (head of h.h. aged 35 to 44 years) 570 17,7

Two‐person households 1.194 37,0 Households (head of h.h. aged 45 to 54 years) 680 21,1





Highest graduation

Volks‐ / Hauptschulabschluss 1.540 24,2 Realschulabschluss 2.928 46,0

Grammar school graduation 1.209 19,0 without / not known 694 10,9



without / not known 1.195 18,8


Employed 3.090 Clerk, civil servant, apprentice in this field 1.554

Worker, apprentice in this field 1.210 Self‐employed and helping family members 326





497



544



503



187






4.992



90,0






86,0

Creditworthiness


Cars

Private cars (total) 3.589 Private cars per household 1,11


Buildings and flats

Buildings (total) 1.862 Flats (total) 3.025

Buildings with 1 flat (number and rate %) 1.225 65,8 Buildings with 2 flats (number and rate %) 472 25,3


Flats in buildings with 1 flat (number and rate %) 1.225 40,5 Flats in buildings with 2 flats (number and rate %) 944 31,2


856 28,3




6




5.2.1 Actual Situation

Source: AK5, Landesvermessung + Geobasisinformation, online


Parcels 261/3, 260/1, 258/3, 266/2, 760/6, 879, 880, 835/8, 890,758/6, 729, 728/9,

731, 763/4, 885, 732, 883/1, 878, 762/4, 757/4, 733, 886, 730, 728/12, 728/13,

734/1, 838/5, 888/3, 875/4, 895/3, 897:

‐ Area: 76,494 m²

‐ Shape: nearly rectangular

‐ Surface: level


electricity supply,




‐ General: There is no legally binding development plan for

this site. We assume the property has been built in

accordance with all planning consents and regula‐

tions. The area is classified as a Sanierungsge‐

biet/Entwicklungsgebiet (Development Area) but no

Starting Value (Anfangswert) nor Final Value (End‐

wert) was set by the community and they could not

tell us whether any cost at all will occur. For that

reason we do not deduct costs here, so if costs arise

they will have to be deducted from this value found

here in that calculation.

‐ Development Plan: ./.

‐ Master plan: Land use is “special zone” for retail


‐ Others: ./.

Subsoil conditions: According to the environmental report of Drees &

Sommer , due to its recent construction and also in

view of the current use, there is no need for action

in the current development with regard to site con‐

tamination, pathways from “soil to man” and from

“soil to groundwater”.


5.2.2 Target Situation – Additional Landvalue

Tenants are still interested – the owner are currently lacking of enough equity


6 Building




6.1 Building


Retail (two separate buildings)

Load bearing structure – reinforced concrete framework structure with masonry‐

infills

Year of construction: Starting 1990



‐ Retail: 16,363.01 m² (lettable Space)

‐ Gas Station: 1,550 m² (Ground)

‐ Parking: 640 outside parking lots

‐ Vacant: ./. m²


Construction Building complex comprising between 1 / 2 storeys

Load bearing structure – reinforced concrete

framework structure with masonry‐infills

Roof: Flat roof (Kaufland), double pitch + flat roof (Prak‐

tiker)

Walls

‐ Basement: not known

‐ Above‐ground walls concrete

Floors: Concrete

Façade: clinker‐brickwork, plaster and metal panels


6.1.4 Fit‐out

The property comprises two separate buildings, one a supermarket, the other a D.I.Y

store, situated in an edge of town location. The buildings are both mainly single storey

concrete frame constructions built in 1990‐1992. A petrol station that was added by

the supermarket was constructed in 1999.

The supermarket is let to Kaufland who are the main tenants and MediMax are sub‐

tenants. The D.I.Y store is adjacent to the Arcelor steelworks and is finished in the cor‐

porate style of Praktiker.


Surfacing of site: car parking spaces on concrete paving, access roads

surfaced with bitumen, in good condition

Boundaries: ./.

Landscaped areas: courtyard area partly planted and well‐kept


Buildings are connected for mains water and sew‐

erage, gas, electricity and telecommunications;




Technical installations: Average standard


Fit out: Functional


Condition: Average

Defects / disrepair: Not known.

General assessment: The objects Praktiker and Kaufland were built exclu‐

sively for these special markets. Thus they are con‐

sistent with the structural specifically standards. In

the event that the current main tenant moves out,

considerable expenses will arise.

Others: We understand that the costs for the soil condition

will only arise in the case of a redevelopment. The

costs “Annex 3” in the Drees&Sommer‐Report are

implicated in our maintenance amount.


Within the scope of a market valuation, it is not possible to carry out detailed investigations of the type,

extent, cause and costs of the permanent rectification of defects and disrepair. In this regard, if necessary




stricted. Other defects and disrepair have only been reflected in the amount of deductions and approach‐

es that are normal in the market.


7 Schedule of rent

7.1 Commercial rent from ImmobilienScout24

Period of analysis: January 2012 till June 2012

Postcode District 07333

District Saalfeld‐Rudolstadt


Average time of offering (days) 57.7

Total number of views of expose 0 1,320


Total number of views of expose per offer 0 77.6


Total number of views of expose per offer per offering day 0 1.3


0 61



Postcode District 07333 District Saalfeld‐Rudolstadt


Commercial rents in the postcode district 07333:


1

Type Number of offers Basic rent per sqm Spread interval (90 %) Total number of inquiries

Offices 0 0

Retail 0 2

Hotel / Gastronomy2 0 1

Storage / Manufactoring 0 0

Others 0 0

Commercial rents in the district Saalfeld‐Rudolstadt:


1

Type Number of offers Basic rent per sqm Spread interval (90 %) Total number of requests

Offices 3 5.86 € 4.00 € ‐ 8.01 € 0

Retail 8 6.65 € 2.59 € ‐ 16.85 € 12



Others 1 8.33 € 8.33 € ‐ 8.33 € 0



Market overview








(related to the German average)

Source: IS24 ‐ Miet‐ und Kaufpreise für Gewerbeimmobilien, Immobilien Scout GmbH, Berlin Status: Juni 2012


7.2 Retail trade Competition

Nearby Competition

Catchment Areas

BAU Do‐It‐Yourself

VMG Market large (1.500‐4.999 m²)

DIS Discounter ELE Electrics & Electronics

Project Rose Portfolio 30.09.2012 Properties BSB II Unterwellenborn Kronacherstr. 1/9 Page 28 of 48

Legend:

distance by car 2 km



Competition in Catchment Areas

Legend:

distance by car 2 km distance by car 5 km



DIS Discounter ELE

Electrics & Electronics


Retail Trade

Nr

Run by Store Name Address Q1 Type Zone

2

Sales Area (m²)

Revenue3

(MEuro pa)

1

Kaufland Kaufland Kronacher Str. 97333 Unterwellenborn

H VMG 1,2 4,938 24.811

2

Electronic Partner

Medimax Kronacher Str. 117333 Unterwellenborn

H ELE 1,2 1,404

3

Praktiker Praktiker Kronacher Str. 17333 Unterwellenborn

H BAU 1,2 6,040

4

Norma Norma Ernst‐Thälmann‐Str. 1a7334 Kamsdorf

H DIS 2 900 2.913

5

Netto Netto Rasenweg 27318 Saalfeld

H DIS 2 710 2.874

6

Penny Penny Könitzer Str.7338 Kaulsdorf

S DIS ‐ 524 2.384

7

Rewe Ost Rewe Mörl Rathenaustr. 5‐77318 Saalfeld

H VMG ‐ 1,600 5.243

8

Aldi Nord Aldi Markt Pößnecker Str. 547318 Saalfeld

H DIS ‐ 799 4.922

1 Quality of geo‐position: H – near house number, S – within street, P – within ZIP code area 2 CA 1: distance by car 2 km ‐ CA 2: distance by car 5 km 2 Revenue deduced from line of sales average data by modelling

Summary: distance by car 2 km

Number total

Number Used (Area)

Number Used (Revenue)

Sales area (m²) Revenue (MEuro

pa)

Retail Trade 3 3 1 12,382 25


Number total

Number Used (Area)



pa)

Retail Trade 5 5 3 13,992 31

Source: Marktdaten, Nielsen TradeDimensions, Frankfurt am Main Status: August 2011 Source: Regionalkarte, TomTom Deutschland GmbH, Harsum Status: März 2011


7.3 Summary

Verification of Market Rent via Turnover per sq m of Sales Space

The Turnaround of the retail shops in the subject property – Kaufland – grew from our

first valuation in 2007 till this year in 2011 – unfortunately we were not provided with

data from the Praktiker Market. Especially the Kaufland has a rather high attractive‐

ness for the people in the area and is very high frequented. The high frequency is bal‐

ancing the low local retail relevant buying power.

According to market research results, the rents for similar buildings in the region are

in a range that seems quite according to the actual rents.

To be able to verify the market rent given this inconsistent image of comparative

rents, the expected achievable turnover per square metre of sales space is deter‐

mined.

A certain percentage is derived as a notional rent. This internal consideration of po‐

tential tenants is also provided in this report for control purposes.

The sources used include:

‐ “Handel Aktuell 2008‐2009” EHI at the University of Cologne

‐ geoport data portal – online enquiry current as at Date of Valuation

The average turnover determined by these institutes for “SB Warenhäuser” (Discount

Food markets > 4.000 sqm sales area with high percentage of non food articles) in

Germany amounted in the average to 4,267 €/m² of sales space (latest figures EHI‐

Handel Aktuell 2008‐2009 S. 315)

The purchasing power index in the special area of Unterwellenborn is 90.1 (see tab‐

loid above). The German average is 100.

This means that purchasing power in the core catchment area of the property is 9.9 %

lower than the German average. At an average competition situation, it is justified to

assume, therefore, that the turnover achievable in the region is 9.9 % below the aver‐

age.

If the average annual turnover per sqm of sales space, is lowered by 9.9 % (corre‐

sponding to the retail relevant purchasing power), from 4,267 €/m² p.a. to 3,845 €/m²

sales space p.a., this will result in a hypothetical turnover of ca. 18,986,610 € p.a. for

this discount supermarket (4,938 sq m sales space x 3,845 €). The actual turnaround is

24,811,000 – significantly higher – so we can take the real numbers for the turna‐

round.


The actual rent for the Kaufland Market incl. the drinks cash and carry shop and the

sub‐tenants, is

= 969,883.68 € p.a. = (969,883.68 € p.a. / 7,876 sq m) / 12 month

= 10.26 €/sq m (sq m rentable space, incl. sales space for sub‐tenants, storage, office,

locker rooms for the employees etc.) rent p.m. for the discount food market/SB War‐

enhaus.

The acknowledged average amount of turnover paid by German supermarkets as rent

is: 5.8 % (EHI Handel Aktuell 2008‐2009 S 315), resp. 3.0‐4.0 % (HypZert Studie Einzel‐

handelsimmobilien S. 53 – publ. 2009)

The real actual rent is 3.91 % of the annual turnaround 21,866,000 € – that is below

the average numbers of EHI (they are working with the retailers), and within the

spread of the Hyp Zert (they are working with the crediting banks), ‐ but in anyway it

is within spread – so we think it is at market.


8 Valuation


The selection of one or more methods of valuation should be oriented towards the

actual behaviour of market participants, i.e. it must take into account those influences


The subject properties are standard retail buildings. Comparable properties are most‐

ly dealt with from a yield point of view.


vestment method.

We understand that the property is subject to freehold.






Praktiker’s standard rental period will run out in 1 year, but they exercised their 5

year option. Praktiker is currently facing financial problems, thus they tried to sell or

close down unprofitable shops, and they prolonged their rental contracts only at suc‐

cessful shops. Praktiker declared further as their present business strategy that they

will change the brand for their most successful markets from Praktiker to Max Bahr.

Max Bahr is a successful DIY daughter company of Praktiker and as we learned from

published news it is given as a security to a company who gave to Praktiker a high

loan. Praktiker announces to the client that they will change the tenant at the subject

property from Praktiker to Max Bahr.

Due to the financial situation of Praktiker and the ending standard rental period the

client was unsecure whether Praktiker will, or will be able to exercise their option.

Therefore he searched for a new tenant. We were informed that the client negotiated

a 10 years contract with OBI – OBI is together with Bauhaus and Hornbach one of the

most successful and biggest DIY companies. But due to the prolongation of Praktiker it

did not become valid, ‐ nevertheless it shows that the owner of the subject property

has even a better alternative if Praktiker might get out of business, and it also shows


the good quality/high attractiveness of the retail location. This is for us good evidence

supporting our opinion that Kaufland will also stay, their standard rental contract will

run out in 3.5 years.

For the following valuation, we therefore assume that the rents achieved currently

are achievable over long term, especially if we consider that Kaufland sub rented larg‐

er areas to other well‐known retailers (e.g. Medi Max), who pay a higher rent to

Kaufland than Kaufland pays to the owner of the property, and if we take into account

the current contract negotiations with OBI.

Actual rents achieved, are market rent.


yield.


The leases are partly subject to indexation, although for the purposes of our valua‐

tion, we have not reflected this indexation going forward, but have instead taken it in‐

to account in the yields adopted, which we consider a realistic approach that would

be adopted by a prudent purchaser.


Since a property always comes with higher costs and risks, despite the aforemen‐

tioned qualities, the interest rate increases in line with each tenant’s creditworthiness

and loss of rental income risks.

According to that, we take into account the chance to use an additional landscape for

additional retail possibilities.

We assumed last year that the rental contract with Praktiker will be prolonged but

lifted a bit the yield to express a certain additional risk regarding the prolongation.

Although Praktiker prolonged as we assumed and although the owner has with OBI

even a better alternative as a tenant, and although Praktiker announced to transfer

the market to the more successful daughter company Max Bahr, we keep it at that

level from last year to express the additional risk regarding the uncertainty of the

business future of Praktiker. We also assume that Kaufland will prolong and see our

opinion supported by the strong interest of OBI at the retail location, nonetheless


there are some risks regarding a prolongation of Kaufland which keeps us away from

lowering the ARY again.

Therefore, we consider an all‐risks yield of 6.25 % to be appropriate for the property.


Regarding non recoverable costs, we have estimated the costs for non‐recoverable

operating costs and costs for management and maintenance. The estimates for that

property run at 1.0% for non recs. service charge, 1.0% for management, 7.00 €/m²

for maintenance of the building and 10 €/St maintenance of the large outside parking

place.


to the tenants.

8.2.5 Rental void

There are no vacant shops.

8.2.6 Additional Land Value

As shown above (5.2.2), on a separate part of the site it is possible to build a new re‐

tail building. We do not get a list with numbers of parcel lots – so we know only the

sizes from the plan which we added at 5.2.2, so we assume that the size of the addi‐

tional land is 5,500 sqm.

The value of such land is much higher than the usual Bodenrichtwert – Standard

Ground Value for GE (“Gewerbegebiet” – light industrial). Typically the spread of the

landvalue for large scale retail buildings at the edge of the city is 10 – 25 % of value for

the whole property, depending on the size of the subject property and the location

(which is immediate related to the achievable rent). Regarding – on the one hand ‐

the well‐known retail area and the attractive anchor tenants Kaufland and Praktiker –

and on the other hand – the relative rural and still developing area in east Germany –

we think that 100 €/sqm is a suitable value, on the lower end of the band width.



8.3.1 SWOT Analysis

Strengths:

Well known and located retail warehouses

2 major retail tenants Kaufland and Praktiker, and Kaufland subleased space to

other wellknown nationwide retailers like Reno or Medi Max

Reasonable height of the rents, more to the lower end of the range

SO – zoning

Interest of other nationwide large scale retailers at the retail location (OBI)

Weaknesses:

A lot of companies in the area are connected with the production of steel, and

the economical cycle of steel is generally strong in both directions

Opportunities:

Additional land for a retail building

Threats:

Special buildings build for a special use and a special user

8.3.2 Saleability




sale of this property, but we still have an economical crisis. So we can say with confi‐


uncertainty” caused by “market instability”. RICS Guidance Note 5 (GN5) refers to

such circumstances thus:



inclination to trade until it is clear how prices in the market will be affected in the

longer term. If the valuation date coincides with the immediate aftermath of such an

event, the data on which any valuation is based may be confused, incomplete or in‐

consistent, with an inevitable effect on the certainty that can be attached to it”.





Accordingly, please be advised that such circumstances exist and that we have ad‐

vised you in the context above, and that in our opinion the value of the Property is

fairly stated.


9 Market Value


gained and documentation provided and in accordance with the approaches de‐

scribed above:






Kronacher Straße 9 in 07333 Unterwellenborn (District of Oberwellenborn, parcels of

land 261/3, 260/1, 258/3, 266/2 District of Unterwellenborn , parcels of land 760/6,

879, 880, 835/8, 890,758/6, 729, 728/9, 731, 763/4, 885, 732, 883/1, 878, 762/4,

757/4, 733, 886, 730, 728/12, 728/13, 734/1, 838/5, 888/3, 875/4, 895/3, 897) on the

valuation date of 30th September 2012 is

€ 22,650,000.00

(Twenty two million six hundred and fifty thousand Euro)


Klaus Schlicht, MRICS Assoc MAI





Standards 2011 and the RICS Appraisal and Valuation Standards. Only in the context

of the valuation Klaus Schlicht has acted as an external Valuer working in a fee earning

capacity for the named client. Klaus Schlicht does not have any direct or indirect per‐

sonal or corporate relationships with the properties or company that is the subject of

this assignment and that might lead to a potential conflict of interest. Furthermore,

the agreed compensation is not contingent upon any aspect of the report, including

the valuation results.





the Royal Institution of Chartered Surveyors has not previously been signatories to

valuations provided to the client for the same purposes as this report.



10.2 Market Value













etc.);


chbarrecht (law concerning the respective interests of occupiers of adjoining

property);


etc.);


For the purposes of this valuation, any possible liens (mortgages, land charges and

rent charges) to which the property may be subject have not been reflected in the de‐

termination of market value, as the specialised literature and case law are unanimous

in the opinion that such charges should be interpreted as personal circumstances.





10.4 Documents




documents (tenant lists, technical reports) for the above calculations were not audit‐

ed by the Valuer Klaus Schlicht.


uments were not requested by the Valuer as ordered by the client:

‐ Building encumbrances

‐ Complete Landregisters

‐ Lease contracts





10.5 Assumptions







damaging survey provides indications that in the circumstances could result in a re‐

duction in value being deduced.


Where there are buildings on the site, in the same way only circumstances that may

be ascertained by an external, non‐damaging survey can be reflected.






ceptances, conditions etc.) or of any private‐law provisions affecting the exist‐

ence or user of the land and buildings has been carried out;

No investigations with regard to infestation by animal or vegetable pests (in tim‐

ber or masonry) or corrosion (in copper pipework) have been carried out;



The functional capability of technical and other installations of the buildings has

not been tested;





result of the circumstances described above, unless, in the course of the non‐


damaging inspection, there were indications giving rise to inferences of a reduction in

value resulting from these circumstances.


result of the circumstances described above, unless, in the course of the non‐

damaging inspection, there were indications giving rise to inferences of a reduction in

value resulting from these circumstances.


This valuation is based on the assumption that the measurements adopted corre‐

spond with the actual measurements, or that any discrepancies that may occur would

not have a significant effect on the outcome of the valuation.


Appendices:




Shop Main Area Contract rent Area Contract / m² Market / m² Market

1 Praktiker 58.033,76 € 8.487,01 m² 6,84 €/m² 6,84 €/m² 58.033,76 €

2 Kaufland 80.823,64 € 7.876,00 m² 10,26 €/m² 10,26 €/m² 80.823,64 €

3 Kaufland Gasstation ‐

only ground lease 1.710,33 € 1.550,00 m² 1,10 €/m² 1,10 €/m² 1.710,33 €

Total 140.567,73 € 16.363,01 m² 140.567,73 €

Parking Space

Praktiker 200 ST

Kaufland 440 ST

Total 140.567,73 € 16.363,01 m² 140.567,73 €

Annual GRI rd. 1.686.813,00 € 1.686.813,00 €

Kronacherstr. 1/9 Unterwellenborn


Property: Kronacherstr. 1‐9

Address: Unterwellenborn

€ 22.650.000

6,25 %

13,10

7,6%

€ 1.686.813,00

(at market)

in % of GRI: 2,00 % = € 33.736,00

in % of GRI: 1,00 % = € 16.868,00

management

1,00 % = € 16.868,00

maintenance

per m² p.a. 7,00 €/m² = € 114.541,00

per St p.a. 10,0 €/St = € 6.400,00

total non‐recs say: € 188.413,00

in % GRI: 11,2 %

€ 1.498.400,00

x 16,000

Gross capital value € 23.974.400,00

Additional Land Value 5.500 m² x 100,0 €/m² = € 550.000,00

5,0 % = € 1.104.811,00

2,0 % = € 441.924,00

1,5 % = € 331.443,00

say: € 1.878.178,00

€ 22.646.222,00

Market value rd. € 22.650.000,00

key data without additional land value

13,10

7,63%

13,10

7,63%

6,78%

Value w.o. add. Land value / m² ‐ lettable area w.o. land for gasstat 1.351 €/m²






tax

agent





Calculation:



void allowance

Summary

legal & notary




x multiplier

Purchasers Costs

market value as is:

all risks yield


Appendix 2: Sensitivity Analysis for Changes All Risk Yield

Yield

20.280.000,00 €7,00%0,75%

21.010.000,00 €6,75%0,50%

21.800.000,00 €6,50%0,25%

22.650.000,00 €6,25%Original Yield

23.570.000,00 €6,00%‐0,25%

24.570.000,00 €5,75%‐0,50%

25.660.000,00 €5,50%‐0,75%

Unterwellenborn

Kronacherstr.


Appendix 3: Photo


Content deleted due to file size by order of applicant


Kurt‐Weill‐Str. 1‐7 in 04347 Leipzig


30st September 2012



€ 11,080,000.00Kurt‐Weill‐Str.

5.50 %

GRI € 854,317.00

€ 188,224.00


NRI: € 666,093.00

13.10

7.63%

12.97

7.71%

6.01%




Market Value:








Project Rose Portfolio 30.09.2012 Properties BSB II Leipzig, Kurt‐Weill‐Str. Page 2 of 45


1 Instructions .............................................................................................................................. 4




3.2 Land register 30.08.2011 ........................................................................................................................ 7


4 Description of the Subject Property .......................................................................................... 9

4.1 Location of the town and the property ................................................................................................... 9


4.3 Key data Region Leipzig ......................................................................................................................... 13


5.1 Micro Location ...................................................................................................................................... 14


6 Buildings ................................................................................................................................ 22

7 Market Overview ................................................................................................................... 23

7.1 Schedule of rent for Leipzig ................................................................................................................... 23

7.2 Summary ............................................................................................................................................... 31

8 Valuation ................................................................................................................................ 32




9 Market Value ......................................................................................................................... 37




10.2 Market Value ......................................................................................................................................... 38


10.4 Documents ............................................................................................................................................ 39

10.5 Assumptions .......................................................................................................................................... 39

APPENDICES:



Appendix 3: Photos





1 Instructions


represented by


14 Ehad Adam Street


Property: Kurt‐Weill‐Str. 1‐7

04347 Leipzig







Building Code)


‐ On‐site inspection: 23rd August 2011




‐ Participants: Petra Schoebel for Schlicht und Kollegen und Mr.

Giehler for Estavisio


Owner: BSB II BV & Co, KG

Report written by: Klaus Schlicht MRICS / Assoc. MAI

Linienstr. 127

10115 Berlin

Conflict of interest We confirm that the Valuer Klaus Schlicht has acted

as independent valuers and that we has no conflict

of interest in acting on your behalf in this matter,



property.




provided Estavisio

Investigations: City authorities of Leipzig (key data, economic struc‐



Database Geoport, Immobilienscout, IVD, JLL, Official Board

of Valuers (Gutachterausschuss) City of Leipzig, Val‐

euro, TLG, Thomas Daily,



















without compulsion’




Federal State: Saxony

Administrative region: Leipzig

Administrative district: Leipzig

City: Leipzig


Local court of (Amtsgericht) Leipzig

District (Grundbuchamt) Schönefeld, Blatt 3302

Section I


3 pipe way leaves for water, electricity and district heating (Fernwärme).

No impact to the value.

Section III

In carrying out this valuation, any land charges and mortgages recorded were not tak‐

en into account, as these liens do not influence the market value, rather the purchase

price of the property (see Section 2.3). It has been assumed that no interest ad‐

vantages or disadvantages would be incurred by a potential purchaser as a result of

any possible or inescapable assumption of them.

Land parcel (Flur‐stück) 228/5

Building and open space (Gebäude‐ und Freiflächen)

4,891 m²


Building and open space (Gebäude‐ und Freiflächen)

Kurt‐Weill‐Str, 7, 7a, 7b

10,140 m²


Building and open space(Gebäude‐ und Freiflächen)

Kurt‐Weill‐Str, 1, 1a

2,134 m²




2,642 m²




2,525 m²



The building encumbrances which we were shown by the client are only “Ver‐

einigungsbaulasten”, these building encumbrances have the intention that the single

plots have to be seen as one; ‐ due to information of the City of Leipzig, dating

22.08.2006. Therefore there is no impact from “Baulasten” to the value.


Tenant list is too long to be pictured here.

We still do not think that the outside parking places can be rented sustainably, so we

do not take them into account at our valuation calculation – although the number of

rented outdoor parking lots increased from last year till valuation date from 5 – 7 plac‐

es.




Unit Main Area Contract rent Area Contract / m²

1 Residential 66,383.00 € 10,249.00 m² 6.48 €/m²

2 Parking Inside 4,096.00 € 136 ST 30.12 €/m²

Total 70,479.00 € 10,249.00 m²

136 ST

Vacant

3 Residential 87.00 m² 0.00 €/m²

Parking Space

4 Inside 5 ST 0.00 €/m²

5 Outside 37 ST

Total 70,479.00 € 10,336.00 m²

Anual GRI rd. 845,748.00 €




Germany Federal State: Saxony

Adm, district: Leipzig

Source: Einordnung Deutschland, Tele Atlas Deutschland GmbH, Harsum Status: April 2006 _____________________________________________________________________




Nearest Airport Leipzig‐Halle 16.09 km NW

Nearest Railway station Leipzig‐Sellerhausen 1.47 km S

Nearest highway exit 25 AS Leipzig‐Nordost, A14 3.03 km NO


Leipzig 4.48 km SW

Berlin 146.44 km NO

Hannover 217.19 km NW





Leipzig

Adm. district Kreisfreie Stadt

Leipzig

Federal state Freistaat Sachsen

Germany


518.8622009

4.168.732 2009

81.802.2572009

‐ below 18 years (in %) 12,492009

12,492009

12,87 2009

16,482009


22,612009

24,65 2009

20,662009


12,45 2009

0,632009

Migration

‐ Immigration into municipality 26.3822009

26.3822009

172.549 2009

4.357.4652009


5,082009

4,14 2009

5,332009

‐ Emigration out of municipality 22.5042009

22.5042009

180.416 2009

4.370.1782009

‐ Emigration rate (in %) 4,342009

4,342009

4,33 2009

5,342009

Unemployed persons

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 14,706.2011

11,4 06.2011

7,706.2011

State benefits

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,292009

0,30 2009

0,382009

Foreign nationals

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6,222009

2,74 2009

8,722009

‐ Immigration into municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5.2202009

23.542 2009

998.9692009


0,56 2009

1,222009

‐ Emigration out of municipality ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6.3172009

24.307 2009

971.4272009

‐ Emigration rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1,222009

0,58 2009

1,192009


Leipzig


Leipzig


Germany

Hospitals ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 82008

80 2008

2.0832008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 3.8382008

26.316 2008

503.3602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7,452008

6,28 2008

6,142008


45 2008

1.2392008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1802008

9.119 2008

171.0602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,352008

2,17 2008

2,092008



Leipzig


Leipzig


Germany


992009

2.097 2009

53.7452009

‐ thereof hotels ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 922009

1.706 2009

35.8712009

‐ beds 12.3042009

12.3042009

116.669 2009

2.797.0672009


41,792009

37,05 2009

35,162009

‐ guest arrivals 1.026.8582009

1.026.8582009

5.964.696 2009

130.188.3912009

‐ overnight stays 1.876.8062009

1.876.8062009

15.777.587 2009

358.920.7412009


1,832009

1,832009

2,65 2009

2,762009


Leipzig


Leipzig


Germany


49,462008

12,17 2008

13,202008


37,992008

55,39 2008

52,552008

‐ forest 6,522008

6,522008

27,07 2008

30,062008

‐ water 2,862008

2,862008

1,94 2008

2,382008


3,182008

3,42 2008

1,832008


Municipality Leipzig


Leipzig


Germany

‐ living 14,022008

14,022008

14,78 2008

24,892008


9,842008

10,03 2008

8,522008


16,552008

7,91 2008

8,032008

‐ traffic 23,832008

23,832008

33,72 2008

37,742008

‐ other 35,762008

35,762008

33,56 2008

20,822008


Leipzig


Leipzig


Germany


2952009

2314 2009

690782009


172009

153 2009

74102009


162009

72 2009

61072009


1432009

555 2009

526202009


1.120 2009

26.4582009


1.046 2009

27.9402009


4.3 Key data Region Leipzig

(Source:www.meinestadt.de/Wikipedia)

Area (in sq km): 297.36


Population per km²: 1,758

Development in births: ‐ 1.8 Promill

Development in migration: 6.9 Promill


‐ Agriculture: 0.4 %

‐ Manufacturing: 17.8 %

‐ Retail, tourism, transport: 81.8 %



5.1 Micro Location

The property is located in the northeast of Leipzig, in a quite residential area, close to

major thoroughfares B 6, B 87.

The borough of Schönefeld is bordered in the north by a light industrial area, in the

west by the Theklaerstr, and in the east by the Torgauer Str and in the south by the B 6

and B 87.

Close to the property are numerous schools, and shopping facilities for daily purpose.

Public transport is not very well; there is more than one km to the next S‐Bahn.

The social structure is balanced on a good middle class level, but the age of the citizens

is still above average.

The object fits in the immediate surrounding, but it is better maintained than many

others in that area.





Micro Market Data:


Micro market name Schönefeld‐Ost 1 Municipality Leipzig


6.953

Area in sqkm 0,17






Dominante Lebensphase 65 bis unter 75 Jahre Dominante Lebensphase 75 und mehr Jahre

Centrality / functional range index Kernstadt

Type of area Agglomerationsraum














Households (total) 742

Households without children under 18 years 701 94,5 Households (head of h.h. aged 18 to 24 years) 20 2,7








Highest graduation




Graduate degree 224 19,0 Vocational school degree 765 64,7









106



115



117



57






5.542



94,1






108,8

Creditworthiness


Cars



Buildings and flats

Buildings (total) 82 Flats (total) 784





776 99,0




276




Source: Automatisierte Liegenschaftskarte (ALK), Staatsbetrieb Geobasisinformation und Vermessung Sachsen, Dresden Status: online


‐ Surface: level


electricity supply,



gas connection


‐ Zoning Map No B‐Plan, only a land utilisation plan (“Flächen‐

nutzungsplan”), valid since 15.04.1995 ‐ M ‐mixed

use area)

‐ Classification: land ripe for development § 4 Abs, 4 BauNVO



that there are no special, i.e., value relevant, subsoil



6 Buildings





Evaluation Comment

facade Plastered and painted

roof Flat landscaped roofs

windows Modern Metal and Plastic Windows,

entrance Metall – from the underground car park Metall Glass – Mainentrances above ground

appurtenant structures The parking lot in front of the building is mostly paved, and well maintained (clean and well cut green at the property line).

highlights/description The property consists of 4 modern multi‐family houses with 5 stories each. All four buildings, the underground garage and the roof are in a very good condition. The technical equipment is well maintained and in functional condition. The outdoor Facilities are in a very well condition. The whole resi‐dential premises are without Deficiencies and damages. The above ground parking lots are mostly used by visitors.

Vacancy (visible)

Evaluation Comment

residential 1 vacant flats, rather rare so less for so many units

car park There is one underground parking lot for every flat,so hardly any of the 37 above ground car park are let, therefore we do not think the above ground parking spaces are sustainable let – and so we do not take the rent of the 5 rented spaces into account.


7 Market Overview

7.1 Schedule of rent for Leipzig

7.1.1 Accommodation rent from ImmobilienScout24

Period of Analyses: January 2012 till June 2012

Postcode District 04347 Municipality Leipzig

Total number of offers 1,549 30,270


Total number of views of expose 291,305 8,402,036

Total number of inquiries1 8,554 16,917





18 31





Residential rents in the Postcode District 04347:

Offers (based on: 1,549 offers) Inquiries (based on: 8,554 inquiries)1


Basic rent per m²


Number of inquiries

Basic rent per m²


Up to 30 m² 27 (1.7 %) 5.75 € 4.57 € ‐ 7.17 € 165 (1.9 %) 6.65 € 4.02 € ‐ 11.67 €

31 – 60 m² 614 (39.6 %) 4.84 € 4.00 € ‐ 5.96 € 3,846 (45 %) 4.75 € 3.18 € ‐ 7.03 €

61 – 90 m² 829 (53.5 %) 4.54 € 3.71 € ‐ 5.57 € 2,955 (34.5 %) 4.73 € 2.83 € ‐ 6.88 €

91 – 120 m² 56 (3.6 %) 4.85 € 3.80 € ‐ 6.62 € 1,176 (13.7 %) 5.06 € 2.89 € ‐ 7.61 €

over 120 m² 23 (1.5 %) 5.44 € 3.85 € ‐ 8.00 € 412 (4.8 %) 5.09 € 2.22 € ‐ 8.31 €

Residential rents in the Municipality Leipzig:



Basic rent per m²


Number of inquiries

Basic rent per m²


Up to 30 m² 534 (1.8 %) 6.92 € 4.60 € ‐ 10.27 € 291 (1.7 %) 6.35 € 3.65 € ‐ 10.38 €

31 – 60 m² 12,768 (42.2 %) 5.19 € 3.96 € ‐ 6.79 € 7,269 (43 %) 4.80 € 3.19 € ‐ 7.03 €

61 – 90 m² 13,783 (45.5 %) 4.89 € 3.62 € ‐ 6.53 € 6,160 (36.4 %) 4.84 € 3.01 € ‐ 6.92 €

91 – 120 m² 2,093 (6.9 %) 5.49 € 3.83 € ‐ 7.55 € 2,361 (14 %) 5.08 € 3.01 € ‐ 7.58 €

over 120 m² 1,092 (3.6 %) 6.27 € 3.97 € ‐ 9.04 € 836 (4.9 %) 4.93 € 1.58 € ‐ 8.12 €



Market overview

Index of requests (related to Germany = 100) Average rent per m²








(related to the German average) Source: IS24 ‐ Mietpreise für Wohnimmobilien, Immobilien Scout GmbH, Berlin Status: Juni 2012


7.1.2 Accommodation prices from ImmobilienScout24

Period of analyses: January 2012 till June 2012


Total number of offers 128 6,203

Average time of offering (days) 33.3 39

Total number of views of expose 79,048 3,080,229

Total number of inquiries1 938 1,657





126 86





Residential in the Postcode District 04347:



area


Price per m² Spread interval (90 %) Number of inquiries

Price per m² Spread interval (90 %)


53 (41.4 %) 783 € 462 € ‐ 2,034 € 163 (17.4 %) 1,023 € 331 € ‐ 2,015 €


21 (16.4 %) 1,579 € 904 € ‐ 2,375 € 291 (31 %) 1,287 € 366 € ‐ 2,300 €


m² 14 (10.9 %) 1,732 € 1,600 € ‐ 1,759 € 96 (10.2 %) 1,395 € 181 € ‐ 2,625 €

House up to 120 m²

5 (3.9 %) 1,264 € 908 € ‐ 1,509 € 101 (10.8 %) 1,220 € 550 € ‐ 1,957 €


35 (27.3 %) 1,005 € 180 € ‐ 1,972 € 287 (30.6 %) 1,166 € 162 € ‐ 2,136 €

Residential prices in the Municipality Leipzig:



area


Price per m² Spread interval (90 %) Number of inquiries

Price per m² Spread interval (90 %)


2,005 (32.3 %) 1,045 € 500 € ‐ 1,974 € 268 (16.2 %) 1,071 € 357 € ‐ 2,250 €


1,271 (20.5 %) 1,491 € 600 € ‐ 2,753 € 513 (31 %) 1,325 € 438 € ‐ 2,391 €


m² 668 (10.8 %) 2,262 € 643 € ‐ 3,520 € 194 (11.7 %) 1,461 € 350 € ‐ 2,571 €

House up to 120 m²

501 (8.1 %) 1,553 € 938 € ‐ 2,249 € 197 (11.9 %) 1,173 € 417 € ‐ 1,875 €


1,758 (28.3 %) 1,341 € 225 € ‐ 2,424 € 485 (29.3 %) 1,215 € 202 € ‐ 2,222 €



Market overview

Index of requests (related to Germany = 100) Average price per m²








(related to the German average) Source: IS24 ‐ Kaufpreise für Wohnimmobilien, Immobilien Scout GmbH, Berlin Status: Juni 2012


7.1.3 Accommodation rent by Plötz

Population in Leipzig is growing constantly, so there is continuing demand for available modern resi‐dential space. Due to a high demand for modern or modernized flats and rare new errected multifami‐ly homes, rental prices for modern apartments still grow. The rents at the subject property are at the upper end for average locations.


1999 (in DM/m²) 10‐13 8‐10 6‐8

2000 (in DM/m²) 10‐13 7,5‐10 6,5‐8,5

2001 (in DM/m²) 10‐12 8‐9 6‐8

2002 (in DM/m²) 9,5‐12 7,5‐9 6,5‐8

2003 (in EUR/m²) 4,5‐5,75 3,5‐4,5 2,75‐3,5

2004 (in EUR/m²) 5‐7,25 4‐5 3‐4

2005 (in EUR/m²) 5,5‐7 4,5‐5,5 3,5‐4,5

2006 (in EUR/m²) 5,5‐7 4,5‐5,5 3,5‐4,5

2007 (in EUR/m²) 5,5‐7 4,25‐5,5 3,25‐4,25

2008 (in EUR/m²) 5,5‐7 4,25‐5,5 3,25‐4,25

2009 (in EUR/m²) 5,5‐7 4,25‐5,5 3,25‐4,25

2010 (in EUR/m²) 5,5‐7 4,25‐5,5 3,25‐4,25

2011 (in EUR/m²) 5,5‐7 4,25‐5,5 3,25‐4,25

2012 (in EUR/m²) 6‐8,5 4,8‐6 3,9‐4,8


7.1.4 Habitation Price by Plötz

Like in the most major cities in Germany this year the prices increased, and the valuation result for the subject property is at the lower end of the prices at the criteria “Average Location”


1999 (in DM/m²) 2000‐4000 2000‐3000 2000‐2000

2000 (in DM/m²) 2500‐3500 2200‐2600 1500‐2000

2001 (in DM/m²) 2700‐3800 2200‐2600 1500‐2000

2002 (in DM/m²) 2600‐3700 2100‐2600 1500‐2000

2003 (in EUR/m²) 1300‐1850 1000‐1300 750‐1000

2004 (in EUR/m²) 1300‐2500 1000‐1300 800‐1000

2005 (in EUR/m²) 1400‐1800 1000‐1400 600‐1000

2006 (in EUR/m²) 1400‐2500 1000‐1400 600‐1000

2007 (in EUR/m²) 1350‐2500 900‐1350 550‐900

2008 (in EUR/m²) 1350‐2500 900‐1350 550‐900

2009 (in EUR/m²) 1350‐2500 900‐1350 550‐900

2010 (in EUR/m²) 1350‐2500 900‐1350 550‐900

2011 (in EUR/m²) 1350‐2500 900‐1350 550‐900

2012 (in EUR/m²) 1450‐2650 900‐1450 600‐900


7.2 Summary

The valuer adopted the actual rents in his assessment of the capitalized income value.

As we predicted in 2011 residential rents in Leipzig grew during the last 12 months.

The contract rents in 2011 were at the upper end for good locations, but the nearly

unchanged actual rents in 2012 are only at the upper end of the range for an average

location, ‐ nonetheless, if there is a vacant flat at the site, letting efforts still lead to a

quick re‐letting, so we think the rents are high but at market, and positively more in

the middle of the market than last year.

If there is some vacancy in the property it never lasts long till a new tenant will move

in, only 1 flat is actually vacant. Modern residential space is still rare in that area and

only a few new projects of multifamily homes are reported in that district and it is ra‐

ther doubtful whether these will offer cheaper rents. The buildings are especially

popular at elder people living since a long time in the north‐eastern district of Leipzig,

because of the elevators and that the underground garages are easy accessible via the

lifts.

Like in the other major German cities, in Leipzig there is an investment boom for con‐

dominiums and multifamily homes so, this leads to rising sales prices in this market.


8 Valuation





The subject property is a multi‐family building. Comparable properties are dealt with

from a yield point of view.


vestment method”.







For the following valuation, we assume that the rents achieved currently are achieva‐

ble over long term. Actual rents achieved are at market (as shown above).

According to market research results, the average offer comps for residential rents in

that postal district are 3.71 – 5.96 €/sqm for flats in a size between 31‐90 sqm – but

this range shows only 90 % of the whole market. And we have here one the few rare

modern good new built multi‐family homes in this location with now vacancy and

quick re‐let vacant apartments, so it is justified that the real rent in the property of

6.48 €/sqm is slightly above that benchmark. In the whole city of Leipzig the bench‐

mark for 90% of the offer comps for residential rents are around the 3.62 – 6.79 €/sqm

(for flats with comparable sizes to the subject property).

Because of solid demand for modern apartments in the area, the pretty good quality

and location of the buildings and the green external grounds, we take the actual rents

as market rent. We think that the fact that the tenants stay there for a long time, and

that there is only a small number of vacancy, and fast re‐lettings, are good signs that

this is market level.


yield.








Positive to mention is that the building is modern and in the valuation we deduct ex‐

plicitly the costs for actual cap ex. Most of the tenants are elder people who always

lived in that area, they like at the building especially the easy access to the apartments

and the underground garage, but also the green exterior and the balconies. That the

local people like to live in the subject property can be seen by the fact that vacant flats

are getting rented quickly, despite the relatively high rent. Public transport and retail

shops are within walking distance. With bus or tram, the city center of Leipzig is only a

few minutes away.

Also in Leipzig is currently an investment boom which leads to stronger rises in the

prices for multifamily homes.

Although there is no letting problem the rents are relative high at the upper end of the

rental benchmark, so further increasing rents don’t seem to be expectable, that’s less

favourable.



loss of rental income risks.

The official board of valuers of the City of Leipzig shows as cap rate so called

“Liegenschaftszinsen” with a yield spread for multifamily houses from 2.8%‐5.7%, and

an average of 4.2%.

Risks in investments of modern multi‐family houses are in general pretty low. But the

rents are relatively high, therefore we do not see a possibility to lower the yield com‐

pared to last year. For that reason we choose for that kind of a use at the valuation

date a cautious yield of 5.50 %.




erating costs and costs for management and maintenance. The estimates for the prop‐

erty subject run as 1 % for non recs. Service charges, respectively 4.0% for manage‐

ment (depending on the kind of building and especially the number of tenants) and

10.00 €/sqm for maintenance building (to keep the high quality of the buildings), 50

€/sqm (a bit above the average, because the easy accessible for the underground gar‐

age and 25 €/sqm for the few parking lots above ground.


to the tenants.

8.2.5 Rental Void

The loss of income and the costs for the vacant apartment space have to be taken into

account at the date of valuation.

The outdoor parking lots are mostly not let, because there is in general one under‐

ground parking place per flat and enough parking spaces outside of the property for

free – we assume that these few outside parking places are not lettable on the long

few, so we do not take their (potential) income into account. But we deduct the

maintenance costs for them at the non‐recs.

We assume that the vacant flat will be rented within 12 months latest.

Vacancy risk is pictured in the ARY but additional costs in relation of a vacancy e.g. for

lawyers etc. is taken into account as void allowance at the non‐recs. We increased that

amount slightly to picture also at that point the risk of increased costs due to high

rents.

8.2.6 Other’s

We were told by the Asset Manager that there will be some cap ex necessary because

of some water in the underground garage and some additional painting. We also have

to deduct some money for repairing some of the parking‐lifts.


Purchasers Costs are taken into account in the height generally adopted, Basis of the




8.3.1 SWOT Analysis

Strengths:

Good location for that kind of use (a quiet and green area – but close to the city

center and to transportation facilities)

Good infrastructure around

Only very few flats are below 70 sq m, it’s a general experience the fluctuation in

bigger flats is lower

Demand for modern flats in good quality within the city area

One underground parking lot per flat

Underground parking is accessible via lift from the flats without stairs

Tenants stay long‐term

Weaknesses:

Not lying in one of the fashionable newly restored city districts

A rent above the average

Opportunities:

A development in the area to a more consistent use – especially good quality resi‐

dential house

Threats:

In the future maybe newer multi‐family houses for a similar rents.

Development in the neighborhood which does not fit to high‐quality multi‐family

houses.

8.3.2 Saleability







circumstances thus:













stated.


9 Market Value



above:






Kurt‐Weill‐Straße 1‐7 in 04347 Leipzig (District of Schönefeld, parcel of land 228/5,

724/22, 724/24, 724/25, 724/26) on the valuation date of 30th September 2012 is

€ 11,080,000

(Eleven million eighty thousand Euro)








valuation Klaus Schlicht has acted as an external Valuer working in a fee earning capac‐

ity for the named client. Klaus Schlicht does not have any direct or indirect personal or




valuation results.




The valuation of the portfolio has been undertaken by Klaus Schlicht, This member of





10.2 Market Value


with the standards of the RICS (London) and the Appraisal Institute (Chicago III,), as


It is assumed that the tenants will accept the property in the long term. As the rent

calculated with is at market level, for our calculations using the Investment Method

the current ERV has been capitalised in perpetuity.





etc,);




property);


etc,);

rights equivalent to real property (ground leases, mineral rights etc,);






ments therein. So we could not take into afford any issues affecting value,



10.4 Documents



nical‐due‐diligence (e.g. building structure, partitioning, fit out etc.), The delivered


by the Valuer.

The Valuer Klaus Schlicht was not provided with the following documents by the client

and the documents were not requested by the Valuer as ordered by the client:

‐ a comprehensive legal due diligence




10.5 Assumptions


















ceptances, conditions etc,) or of any private‐law provisions affecting the existence




No investigation of the buildings with respect to deleterious materials (e,g, asbes‐

tos, formaldehyde, high alumina cement etc,) has been carried out;


not been tested;















Unit Main Area Contract rent Area Contract / m² Market / m² Market

1 Residential 66,383.00 € 10,249.00 m² 6.48 €/m² 6.48 €/m² 66,383.00 €

2 Parking Inside 4,096.00 € 136 ST 30.12 €/m² 30.12 €/m² 4,096.00 €

Total 70,479.00 € 10,249.00 m² 70,479.00 €

136 ST

Vacant

3 Residential 87.00 m² 0.00 €/m² 6.48 €/m² 563.50 €

Parking Space

4 Inside 5 ST 0.00 €/m² 30.12 €/ST 150.59 €

5 Outside 37 ST

Total 70,479.00 € 10,336.00 m² 71,193.09 €

Anual GRI rd. 845,748.00 € 854,317.00 €

Leipzig Kurt‐Weill Straße


Property: Kurt‐Weill‐Str.

Address: Leipzig

€ 11,080,000

5.50 %

13.10

7.6%

€ 854,317.00

(at market)

in % of GRI: 4.00 % = € 34,173.00

in % of GRI: 1.00 % = € 8,543.00

management

4.00 % = € 34,173.00

maintenance

per m² p.a. 10.00 €/m² = € 103,360.00

per parking lot under ground p.a. 50.00 €/pc. = € 7,050.00

per parking lot above ground p.a. 25.00 €/pc. = € 925.00


in % GRI: 22.0 %

€ 666,093.00

x 18.182


Cap ExRepair Parklifts for 2 cars at the basement ‐€ 40,000.00Repair water in the underground garage + painting ‐€ 200,000.00

Vacancy

loss of GRI Residential + Parking 12 months x 714.09 € € 8,569.07

operating costs Residential 87.00 m² x 1.0 €/m² € 1,044.00

Marketing costs 6 months x 714.09 € € 4,284.53



3.5 % = € 387,846.00

2.0 % = € 221,626.00

1.5 % = € 166,220.00

say: € 775,692.00

* € 11,081,313.40


key data

13.10

7.63%

12.97

7.71%

6.01%

Value / m² ‐ lettable area 1,072 €/m²

agent

Summary

legal & notary





x multiplier


tax

market value as is:

All Risks Yield





Calculation:



void allowance







Yield

9,720,000.00 €6.25%0.75%

10,140,000.00 €6.00%0.50%

10,590,000.00 €5.75%0.25%

11,080,000.00 €5.50%Original Yield

11,620,000.00 €5.25%‐0.25%

12,210,000.00 €5.00%‐0.50%

12,870,000.00 €4.75%‐0.75%

Leipzig

Kurz‐Weill‐Straße


Appendix 3: Photos




Content deleted due to capacity reasons by order of applicant


Im Götzmann 2‐4, 77933 Lahr


30st September 2012



€ 7,050,000.00Im Götzmann incl. add. land value

7.00 %

GRI € 651,982.00

€ 132,360.00


NRI: € 519,622.00

18.40

5.43%

8.51

11.75%

9.36%



lettable area (vacant) 4,102.00 m²

add land value 1,500,000.00 €







Market Value:

at an All‐Risks‐Yield

Project Rose Portfolio 30.09.2012 Properties BSB II Lahr, Im Götzmann Page 2 of 51


1 Instructions .............................................................................................................................. 4




3.2 Land register 13.09.2011 ........................................................................................................................ 7





4.3 Key data Region Lahr/District Ortenau ................................................................................................. 15


5.1 Micro Location ...................................................................................................................................... 16


6 Buildings ................................................................................................................................ 25

7 Market Overview ................................................................................................................... 27

7.1 Schedule of rent for Lahr ...................................................................................................................... 27

7.2 Summary ............................................................................................................................................... 35

8 Valuation ................................................................................................................................ 36




9 Market Value ......................................................................................................................... 41




10.2 Market Value ......................................................................................................................................... 42


10.4 Documents ............................................................................................................................................ 43

10.5 Assumptions .......................................................................................................................................... 44

APPENDICES:



Appendix 3: Photos



Appendix 6: Text (“Planungsrechtliche Festsetzungen”) Zoning Plan 2. Issue – August 2011


1 Instructions


represented by


14 Ehad Adam Street


Property: Im Götzmann 2‐4

77933 Lahr







Building Code)


‐ On‐site inspection: 30th September 2011



status of the asset. It was not possible to visit the

vacant main building, only the 3 running shops.

‐ Participants: Mrs. Renate Schock for Schlicht und Kollegen,



Report written by: Klaus Schlicht MRICS Assoc MAI

Linienstr. 127

10115 Berlin

Conflict of interest We confirm that the Valuer Klaus Schlicht acted as

an independent Valuer and that he has no conflict

of interest in acting on your behalf in this matter.



property.




provided Estavisio

Zoning Plan of the community of Lahr with the

name “Blockschluck Götzmann” – 2. Issue August

2011 – not yet valid.

Investigations: City authorities of Lahr (key data, economic struc‐



Database Geoport (with EHI), Hypzert, Immobilienenscout,

Valeuro,



















without compulsion’.




Federal State: Baden‐Wuertemberg

Administrative region: Ortenaukreis

Administrative district: Ortenaukreis

City: Lahr


Local court of (Amtsgericht) Lahr

Inventory/Bestandsverzeichnis

District (Grundbuchamt) Lahr, Land Register of Mietersheim Blatt 141

Section I

Owner BSB II BV & Co KG Berlin – entry 20.02.2007

Section II

For the landparcel 1826/4: A personal limited easement (beschränkt persönliche

Dienstbarkeit) in favour of the city of Lahr. The City of Lahr is allowed to use a part of

the land for a gas‐pipeline and to enact a ban for constructing buildings on this pipeline

or within a certain range of this pipeline. So this easement dates from 1973, we do not

know whether the pipeline was built, is still in use or will be built. We also do not know

where the pipeline is or ought to be. Due to time reasons and in accordance with our

client, we did not investigate, and assume that there is no impact to the value.

Map

(Karte)

164.27

Land parcel

(Flurstück) 1826

Building and court space

(Gebäude‐ und

Freiflächen)

Betriebsgelände

Mietersheimer

Hauptstraße 75

26,899 m²

Map

(Karte)

163.27

Land parcel

(Flurstück)

1855/1


(Gebäude‐ und Freiflächen)

Im Götzmann 25 m²

Map

(Karte)

163.27

Land parcel

(Flurstück)

1826/4


(Gebäude‐ und Freiflächen)

Im Götzmann 2, 4 9,319 m²


For the landparcels 1826, 1855/1, 1826/4: A personal limited easement (beschränkt

persönliche Dienstbarkeit) in favour of the city of Lahr. The City of Lahr is allowed to

use a part of the land for a gas‐pipeline and for a “Steuerkabel”. We do not know

whether the pipeline was built, is still in use, or will be built. We also do not know

where the pipeline is or ought to be. Due to time reasons and in accordance with our

client, we did not investigate, and assume that there is no impact to the value.

Registry/Bestandsverzeichnis

Local court of (Amtsgericht) Lahr

District (Grundbuchamt) Lahr, Land Register of Mietersheim Blatt 768

Section I

Owner BSB II BV & Co KG Berlin – entry 20.02.2007

Section II

Several easements in favour of the City of Lahr. So we do not know whether this piece

of land has already the status of a building land, and do not assume that – for this rea‐

son we can not see any negative impact by these easements at the market value of the

whole premise.

Building Encumbrance (Baulasten)

Although we asked months ago for actual building encumbrances, we got no authori‐

sation to obtain it by ourselves, nor have we been provided with complete information

from the owner or his representative. We achieved only information dated 13.10.2011

of the city of Lahr, that there is no Building Encumbrance at lot Nr. 1826/4. As instruct‐

ed we made no own inquiries, and assume that there is no impact to the value by any

kind of “Baulasten”.

Map

(Karte)

163.27

Land parcel

(Flurstück) 1870

Farmland

(Landwirtschaftliche Fläche)

Im Götzmann

2,479 m²



The site could be a promising project development property, with a total new con‐

struction, and so far new sizes of retail space and new tenants. But the new zoning

plan which was arranged by the city of Lahr, is tailor‐made for a new OBI DIY Market

(see text form the city authorities at Appendix 6), who is contemporary situated at the

neighbour property to the west. But the client did not sign the rental contract with OBI

right in time, so OBI prolonged for their current building at the neighbour site for the

next 3 years. So there is still a chance that the new zoning plan will become reality but

the chances become less.

In addition the new Zoning Plan would allow more retail space as expected, however

only a maximum of only 4,000 sqm for city relevant (“Innenstadt relevant”) retail

spaceis allowed. But this kind of retail space, is the most precious one, with the highest

Rent Roll Rosebud Portfoliolast updated: 17.10.2012

retail storage others outdoor retail storage others outdoorper

monthperyear

Schuhhof GmbHIm Götzmann 2-4 / MietersheimerHauptstraße

640.60 01.10.1993 15.09.2013 9.37 6,005 72,064

Eddy´s Kinderland GmbIm Götzmann 2-4 / MietersheimerHauptstraße

800.00 01.11.1994 31.12.2016 7.38 5,906 70,867

Thomas Phillips GmbHIm Götzmann 2-4 / MietersheimerHauptstraße

1,930.00 15.02.1994 30.09.2013 5.00 9,650 115,800

Rheinland Kraftstoff GmIm Götzmann 2-4 / MietersheimerHauptstraße

Lahr 2,200.00 22.10.1987 31.12.3000 1.10 2,419 29,033

Dogan FerideIm Götzmann 2-4 / MietersheimerHauptstraße

Lahr 180 01.05.2003 31.12.3000 5.84 1,052 12,618

VACANCYIm Götzmann 2-4 / MietersheimerHauptstraße

Lahr 1 0.00 0 0


Lahr 1,000 0.00 0 0


1,489 0.00 0 0


1,500 0.00 0 0


1,636 0.00 0 0

Live Event / Jochen KunIm Götzmann 2-4 / MietersheimerHauptstraße

Lahr 1 05.05.1976 31.12.3000 0.00 0 0


Lahr 20 0.00 0 0

Parkplatz VisitorIm Götzmann 2-4 / MietersheimerHauptstraße

Lahr 654 03.09.2007 31.12.3000 0.00 0 0

Sparkasse Offenburg OIm Götzmann 2-4 / MietersheimerHauptstraße

20.00 01.05.2007 31.12.3000 5.00 100 1,200

Toto Lotto Schmidt VACANCY

Im Götzmann 2-4 / MietersheimerHauptstraße

Lahr 1 01.12.2008 31.12.3000 0.00 0 0

Totto Lotto Schmidt VACANCY

Im Götzmann 2-4 / MietersheimerHauptstraße

106.00 11.01.1996 31.12.3000 0.00 0 0

RehmIm Götzmann 2-4 / MietersheimerHauptstraße

Lahr 1 12.05.2012 31.12.3000 1,800 21,600

parking spaces

assettenant


net rent in EUR per sqm / EUR per parking spaceparking

leasestart date

leasematurity

date


demand and rents, although its maximum size is nearly already reached with the exist‐

ing shops.

Therefore we decided to value the property as it is, and for that reason we show and

use the tenant list above.

BUT of course in the valuation calculation we take into account the chance of a future

rental contract with OBI – as a positive influence to the ARY, and therefore we achieve

a higher value than without this development chance.







Germany Federal State: Baden‐Wuerttemberg

Administrative District: Ortenaukreis

Source: Einordnung Deutschland, Tele Atlas Deutschland GmbH, Harsum Status: April 2006 _____________________________________________________________________




Nearest Airport Stuttgart 106.92 km O

Nearest Railway station Lahr(Schwarzwald) 1.28 km O

Nearest motorway exit 56 AS Lahr, A5 4.79 km NW


Offenburg 16.42 km NO

Freiburg im Breisgau 37.49 km S

Stuttgart 110.00 km NO


_____________________________________________________________________



Population key indicators Municipality Lahr/Schwarzwald

Adm. district Landkreis Orten‐

aukreis

Federal state Baden‐Württemberg

Germany


417.2672009

10.744.921 2009

81.802.2572009

‐ below 18 years (in %) 19,112009

18,532009

17,74 2009

16,482009


19,712009

19,48 2009

20,662009


0,41 2009

0,052009

Migration

‐ immigration into municipality 2.2872009

22.8502009

666.553 2009

4.357.4652009


5,482009

6,20 2009

5,332009

‐ emigration out of municipality 2.2662009

22.7522009

663.132 2009

4.370.1782009


5,452009

6,17 2009

5,342009

Unemployed persons

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 3,706.2011

4,3 06.2011

7,706.2011

State benefits

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,102009

0,13 2009

0,382009

Foreign nationals

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7,462009

11,76 2009

8,722009


180.857 2009

998.9692009


1,68 2009

1,222009


170.993 2009

971.4272009


1,59 2009

1,192009

Public health Municipality Lahr/Schwarzwald


aukreis


Germany

Hospitals ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 142008

284 2008

2.0832008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2.2972008

59.041 2008

503.3602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5,502008

5,49 2008

6,142008


199 2008

1.2392008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1.2482008

25.250 2008

171.0602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2,992008

2,35 2008

2,092008


Tourism Municipality Lahr/Schwarzwald


aukreis


Germany


5222009

7.027 2009

53.7452009

‐ thereof hotels ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 3672009

5.140 2009

35.8712009

‐ beds 7712009

26.7652009

390.022 2009

2.797.0672009


30,742009

29,80 2009

35,162009


1.262.9182009

16.052.992 2009

130.188.3912009


3.003.1332009

42.416.809 2009

358.920.7412009


1,972009

2,382009

2,64 2009

2,762009

Land use (in %) Municipality Lahr/Schwarzwald


aukreis


Germany


11,542008

14,00 2008

13,202008


38,342008

45,93 2008

52,552008

‐ forest 37,102008

47,292008

38,25 2008

30,062008

‐ water 1,372008

1,852008

1,07 2008

2,382008


0,982008

0,76 2008

1,832008


Municipality Lahr/Schwarzwald


aukreis


Germany

‐ living 27,352008

31,642008

28,27 2008

24,892008


13,602008

9,64 2008

8,522008


4,402008

5,95 2008

8,032008

‐ traffic 37,772008

35,732008

38,91 2008

37,742008

‐ other 18,962008

14,632008

17,24 2008

20,822008

Completion of buildings breakdown Municipality Lahr/Schwarzwald


aukreis


Germany


3992009

9330 2009

690782009


692009

1403 2009

74102009


412009

1292 2009

61072009


2422009

10351 2009

526202009


3.696 2009

26.4582009


4.240 2009

27.9402009


4.3 Key data Region Lahr/District Ortenau


Area (in sq km): 1,851

Total population: 417,276


Development in births: ‐0.1 Promill

Development in migration: 0.4 Promill







5.1 Micro Location

The property is located in the southwest of Lahr, at a major thoroughfare the B 415,

shortly before it crosses with B 3. There are other large space retailers around, like e.g.

OBI (DIY) and Media Markt (consumer electronics).

The borough of Mietersheim is bordered in the west by B 3, in the north by the B 415

and in the east by the Werderstr. and in the south by a mountain.

The area around the subject property is mostly built with retail shops but also buildings

of communal facilities (like many schools, sport tracks, indoor pool for sports etc).

Public transport is not very well, but typical for a mid size town – there are only bus

lines close to property.

The social structure is balanced on a good middle class level, with younger citizens. The

object fits in the immediate surrounding, but the neighboring buildings are better

maintained.


Micro Market Data (Creditworthiness)

Micro market map Gemeinde Lahr/Schwarzwald


Micro Market Data:


Micro market name Mietersheim Municipality Lahr/Schwarzwald

Borough Landkreis Ortenaukreis Province Baden‐Württemberg

Population density (Inhabitants per sqkm)

753 Area in sqkm 2,53



Social environment Bürgerliche Mitte




Centrality / functional range index Mittelzentrum





Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Population (total) 1.906 42.999

Population aged 0 to under 3 years 50 2,6 1.229 2,9
















Population aged 75 and more years 171 9,0 3.831 8,9

Household structure (number, rate %) Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Households (total) 877 19.624

Households without children under 18 years 668 76,2 14.611 74,5

Households with children under 18 years 209 23,8 5.013 25,5

Single‐person households 299 34,1 6.627 33,8

Two‐person households 315 35,9 6.964 35,5

Three‐person households 116 13,2 2.650 13,5

Four‐person households 106 12,1 2.439 12,4

Households of five and more persons 41 4,7 944 4,8

Households (head of h.h. aged 18 to 24 years) 30 3,4 725 3,7

Households (head of h.h. aged 25 to 34 years) 106 12,1 2.481 12,6





Households (head of h.h. aged 75 years and older) 118 13,5 2.674 13,6



Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Highest graduation

Volks‐ / Hauptschulabschluss 667 35,0 14.970 34,8

Realschulabschluss 406 21,3 9.121 21,2

Grammar school graduation 423 22,2 9.512 22,1

without / not known 410 21,5 9.396 21,9

HIghest vocational graduation

Graduate degree 230 12,1 5.125 11,9

Vocational school degree 899 47,2 20.003 46,5

without / not known 777 40,8 17.871 41,6

Employment structure Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Employed 970 21.938

Employed (Rate % of total population, rate % of population aged 15 to 64 years)

50,9 79,8 51,0 79,3

Worker, apprentice in this field (number, rate %) 252 26,0 5.703 26,0

Clerk, civil servant, apprentice in this field (number, rate %)

612 63,1 13.837 63,1

Self‐employed and helping family members (num‐ber, rate %)

106 10,9 2.398 10,9

Net income (including public transfer income, number and rate %)

Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Average monthly net income per household 3.186 3.294

Households with monthly net income below 900 € 80 9,1 1.793 9,1

Households with monthly net income from 900 to 1.300 €

97 11,1 2.130 10,9


47 5,4 1.117 5,7


120 13,7 2.772 14,1


131 14,9 2.926 14,9


149 17,0 3.284 16,7


136 15,5 3.031 15,4

Households with monthly net income from 5.000 € and more

117 13,3 2.571 13,1



Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Private buying power (absolute in Mio €) 33,5 775,6

Average private spending power per inhabitant 17.591 18.037

Index – private buying power 88,2 90,4


10,3 231,4

Average retail trade relevant spending power per inhabitant

5.422 5.381

Index retail trade relevant spending power 97,8 97,1


Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Retail turnover per year (in Mio €) 10,8 274,8

Retail turnover per person and year 5.650 6.391

Retail turnover index 109,1 123,4

Index of retail trade related spending power absorp‐tion

104,2 118,8

Creditworthiness Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Index Creditworthiness 98 97

Cars Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Private cars (total) 974 19.402

Private cars per household 1,11 0,99

Private cars per inhabitant 0,51 0,45

Buildings and flats Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Buildings (total) 426 7.963

Flats (total) 924 20.681

Buildings with 1 flat (number and rate %) 211 49,5 3.881 48,7

Buildings with 2 flats (number and rate %) 130 30,5 2.194 27,6

Buildings with 3 or more flats (number and rate %) 85 20,0 1.888 23,7

Flats in buildings with 1 flat (number and rate %) 211 22,8 3.881 18,8

Flats in buildings with 2 flats (number and rate %) 260 28,1 4.388 21,2


453 49,0 12.412 60,0


Business establishments Micro market

Mietersheim

Gemeinde

Lahr/Schwarzwald

Number of business establishments 86 2.258

Business density (number of establishments per sqkm)

34 32




Source: Automatisierte Liegenschaftskarte ALK, Landesvermessung Baden‐Württemberg, Stuttgart Date: online

‐ Surface: level


electricity supply,



gas connection



‐ Zoning Map B‐Plan Bebauungsplan Blockschluck / Götzmann, val‐

id since 09.03.1991, Usage: shopping center – large

scale retail (SO – EKZ); ‐ valid.

“Aufstellungsbeschluss” of the community of Lahr

to remodelling the zoning plan mentioned above ,

to enlarge the retail space at double the contempo‐

rary sitze.

“Auslegung des B‐Plans” Presentation of the B‐Plan

to the citizens.

Approval of the “Träger öffentlicher Belange” the

authorities whose interests could be affected by the

plan.

Bebauungsplan Blockschluck Im Götzmann 2. Än‐

derung ‐ August 2011 / zoning plan 2. Amendment,

not yet valid.




that there are no special, i.e. value relevant, subsoil



6 Buildings





Evaluation Comment

facade The facade of the buildingsconcrete – partly painted and tin (used for advertising)

roof Flat roofs

‐ could not be inspected

‐ Assumption that there are no major immediate

costs caused by any roof damage

windows Metal Glass Windows.

entrance Needs some maintenance – looks tatty

appurtenant structures The parking lot in front of the building is mostly as‐phalted, with only a few trees and a little bit of green.

highlights/description The property consists of 2 retail outlet buildings – on of them has 2 floors and the other only 1. Directly at the western side of one building is – there is a OBI (DIY). The subject property can be seen very well from three major roads. The parking lots are mostly in front of the building (some of them – for the employees) are at the back‐side of the building at a not asphalted part of land parcel 1870. There is some renovations work necessary – we as‐sume that most of this will be done together with the future development of the site. So the refurbishment costs mentioned for the vacant space are only rudimentary, although we increased them this year to show that the current buildings will have to stay longer than previously assumed. In the moment the development is only delayed but in the case of a complete failing development even more higher refurbishment costs will have to be set in the calculation.

Vacancy (visible)

Evaluation Comment

retail Although the whole site is under planning, for the calculation all current uses/seizes are used, because it is rather uncertain whether the development will


Vacancy (visible)

Evaluation Comment

succeed.The main building with the former SB Waren‐haus/Hypmarket is vacant and could not be visited inside.


7 Market Overview

7.1 Schedule of rent for Lahr



Postcode District 77933 District Ortenaukreis








Index of total number of views of expose per offer per offering day

(Germany = 100) 80 76



Postcode District 77933 District Ortenaukreis




1

Type Number of offers Basic rent per m² Spread interval (90 %) Total number of

inquiries

Offices 29 6.34 € 4.19 € ‐ 8.15 € 4

Retail 15 11.13 € 4.54 € ‐ 27.97 € 10



Others 0 2

Commercial rents in the District Ortenaukreis:


1

Type Number of offers Basic rent per m² Spread interval (90 %) Total number of

requests

Offices 84 6.73 € 4.17 € ‐ 10.77 € 10

Retail 67 9.21 € 4.14 € ‐ 23.93 € 24



Others 1 2.67 € 2.67 € ‐ 2.67 € 5



Market overview










7.1.2 Retail Rents

Nearby Competition

BAU Do‐ It‐Yourself

EKZ Shopping Center

TS Petrol station

DIS Discounter

ELE Electrics & Electronics

VMG Market large (1.500 ‐

4.999 m²)

DM Drugstore

GC Gardening


Catchment Areas

Legend:

distance by car 1.5 km




Legend:


BAU Do‐ It‐Yourself

EKZ Shopping Center

TS Petrol station

DIS Discounter



DM Drugstore

GC Gardening


Shopping Center

Nr Store Name Address Q1 Zone

2

Sales Area (m²)

DL3 EH

4 GA

5 B/T

6

Car‐parks

Opening

E.1 Arena Einkaufs‐park

Alter Stadtbahn‐hof 1 77933 Lahr

H 1,2 16,400 5 24 5 440 27.05.2000

1 Quality of geo‐position: H – near house number, S – within street, P – within ZIP code area 2 Catchment Area: 1. distance by car 2 km / 2. distance by car 5 km 3 Services 4 Retail 5 Gastronomy 6 Visitors per day

Retail Trade

Nr


2

Sales Area (m²)

Revenue3

(MEuro pa)

1

Bund Freier Tankstellen

Freie Tankstelle Mietersheimer Hauptstr. 75 77933 Lahr

H TS 1,2 40

2

OBI OBI Im Götzmann 677933 Lahr

H BAU 1,2 7,000

3

Media‐Saturn Media Markt Im Götzmann 677933 Lahr

H ELE 1,2 3,500

4

dm dm Im Götzmann 977933 Lahr

H DM 1,2 350 2.125

5 Penny Penny Im Götzmann 377933 Lahr

H DIS 1,2 678 3.041

6 Norma Norma Im Götzmann 177933 Lahr

H DIS 1,2 430 1.363

7

Zeus Werkmarkt Gnädig Breisgaustr. 4277933 Lahr

H BAU 1,2 1,000

8

Dehner Dehner Gartencen‐ter

Im Götzmann 1077933 Lahr

H GC 1,2 5,000

9

Aldi Süd Aldi Süd Tramplerstr. 8977933 Lahr

H DIS 1,2 1,000 8.648

10

Bund Freier Tankstellen

Freie Tankstelle Mietersheimer Hauptstr. 71 77933 Lahr

H TS 1,2 30

11 Expert Expert Fachmarkt Flösch

Breisgaustr. 3777933 Lahr

H ELE 1,2 1,200

12

BP/Aral Aral Freiburger Str. 1177933 Lahr

H TS 1,2

13

Edeka Südwest Treff 3000 Schwarzwaldstr. 9577933 Lahr

H DIS 1,2 402 0.969

14

Agip Agip Ciao Shop Freiburger Str. 977933 Lahr

H TS 1,2 120

15

Kohler E‐center Kohler Alter Stadtbahnhof 177933 Lahr

H VMG 1,2 3,552 17.863

16

Real Real Offenburger Str. 1177933 Lahr

H VMG 2 4,302 18.066

17 Lidl Lidl Offenburger Str. 2477933 Lahr

H DIS 2 800 4.695

18 Rewe Südwest Rewe Tiergartenstr. 1677933 Lahr

H VMG 1,2 1,600 5.376

19

Edeka Südwest Treff 3000 Am Sternenkeller 1977933 Lahr

H DIS 2 600 1.447


Nr


2

Sales Area (m²)

Revenue3

(MEuro pa)

20 Penny Penny Friedhofstr.77933 Lahr

S DIS 2 570 2.557

21 dm dm Schloßplatz 1477933 Lahr

H DM 2 275 1.67

22

Müller Müller Schloßplatz 1877933 Lahr

H DM 2 2,621 10.596

23

Netto Netto Hans‐Inderfurth‐Str. 277933 Lahr

H DIS 2 900 3.592

24

BP/Aral Aral Petit Bistro Turmstr. 3377933 Lahr

H TS 2 40

25

Netto Netto Burgheimer Str. 577933 Lahr

H DIS 2 800 3.194

26

Total Deutsch‐land

Total Bismarckstr. 8377933 Lahr

H TS 2 60

27 Lidl Lidl Geroldsecker Vorstadt 277933 Lahr

H DIS 2 800 4.695

28 Edeka Südwest Treff 3000 Lahrer Str. 38‐4077933 Lahr

H DIS 2 425 1.024

29

Aldi Süd Aldi Süd Geroldsecker Vorstadt 3077933 Lahr

H DIS 2 1,200 10.377

30

sonst. Mine‐ralöl‐GH

Freie Tankstelle Geroldsecker Vorstadt 6177933 Lahr

H TS 2 50

31

Shell Shop´n Go Gün‐ther

Einsteinallee 277933 Lahr

H TS ‐ 80

32

BP/Aral Aral Adlerstr. 2977948 Friesenheim

H TS ‐ 80

33

Aldi Süd Aldi Süd Adlerstr. 2677948 Friesenheim

H DIS ‐ 800 6.918



Number total

Number Used (Area)



pa)

Shopping Center 1 1 16,400

Retail Trade 16 15 7 25,902 39


Number total

Number Used (Area)



pa)

Shopping Center 1 1 16,400

Retail Trade 30 29 18 39,345 101

Source: Marktdaten, Nielsen TradeDimensions, Frankfurt am Main Status: August 2011 Source: Regionalkarte, TomTom Deutschland GmbH, Harsum Status: März 2011


7.2 Summary

There is a retail development project at the property, which is already running since

several years and which is now for us and for the city of Lahr as well surprisingly close

for failure, or at least delayed ‐ due to the fact that it is tailor‐made for the purpose of

OBI (DYI Market), but the client did not sign the rental contract with OBI right in time,

so OBI exercised its option for 3 more years at the old building at the neighbour site.

If the contract with OBI will be not signed, no competitor of OBI will take the space di‐

rectly at the side of an existing OBI, something like that does simply not exist anywhere

in Germany. So we have to take into account the possibility that the new zoning plan

will not be transmitted to reality, at least we have to assume that the current buildings

will stay longer as assumed before.

As a market rent at that kind of elderly buildings we take the actual rents. For the va‐

cant space we were told there are well known tenants with good creditworthiness ex‐

pressing their rental interest at a low rental height of 6.0 €/sqm, based at the quality of

the buildings at the date of the valuation. Regarding the state of condition of the build‐

ings and the rents the other tenants are paying for their spaces, which are bit better or

worse than the vacant space, 6.0 €/sqm p.m. seem to be a reasonable market rent.

However if the retail companies/prospective tenants accept the current building quali‐

ty and will invest own money in the amelioration of the sales space, what they usually

will do if they pay a low rent like 6.0 €/sqm, ‐ the owner of the building must also in‐

vest own money in the building and its technique; and the longer the potential tenant

will stay the more must be renovated or modernized. Therefore we increased the re‐

furbishment costs for the currently vacant space from 50 €/sqm last year to 150

€/sqm.

But anyhow the assumptions in this valuation are still a positive scenario, although

there is now up to 6 years’ time since the conservation of the status quo expires, there

are actual cases at the high court jurisdiction with an ending of the conservation of the

status quo already by 1‐2 years. The city authorities announced that they will go to

court if a city relevant retailer/s will move into the contemporary vacant retail space,

and so the city relevant retail space would be increased to above 4,000 m² sales space.

Nonetheless we have to mention that in the actual calculation we took into account at

the ARY that there is STILL a chance that the contract with OBI will be signed / the new

zoning plan will be transferred to reality. The city authorities sees it also that way and

thus stretched the payment deadlines from the “städtebauliche Vertrag” – the infra‐

structure development contract which was signed by the city of Lahr and the client, in

relation with new zoning plan.


8 Valuation





The subject property is a building with only retail space. Comparable properties are

dealt with from a yield point of view.


vestment method”.







Concerning the rental contracts see above 7.2 and 3.3.

We assume that even in that case that the tenants are modernizing their space by

themselves (due to the cheap rent) – some costs stay at the owner. We assume that

with the increased refurbishment sum chosen, all these additional costs for the owner

are fully covered.










loss of rental income risks. The yield also depends on the competition in the catchment

area for that usage and risks concerning the tenants.

As mentioned in the last years – and it is still true ‐ the zoning SO Retail is very rare and

sought‐after, and it would be a great and unique chance for a large scale retail devel‐

opment in this economically healthy region. This chance is still open, although with a

smaller probability of realisation, therefore to represent that chance in the calculation

but showing that the risks of a failure grows we raised the yield slowly to 7.0%. None‐

theless if the development would finally fail the yield will have to be raised above the

current level.



erating costs and costs for management and maintenance. The estimates for that

property run at 2 % for operating costs, respectively 2.0% for management (depending

on the kind of building and the number of tenants) and 7.00 €/m² for maintenance of

the building and 25 €/St outside parking places.


to the tenants.

8.2.5 Refurbishment

The prospective tenants for the vacant space will only pay a rent at the lower end for

retail space in good location. So they cannot expect that the landlord will invest much

in the property. Therefore we assume only a minimum amount for Refurbishment.

Nonetheless we have to assume that the current vacant building will stay longer as as‐

sumed – therefore we increased the refurbishment costs substantially.

8.2.6 Additional Land Value

The size of the whole plot which is not been built at the date of the valuation, is much

bigger than needed only for a car park. In contrary the car park is so huge that it looks

too empty – that is as less favourable for retail shop than an overcrowded one. For

that reason and under the usual assumption that for one car 25 sq m of parking place

is needed, we could use 10,000 – 13,000 sq m for an additional retail building. We use

here the conservative amount of only 10,000 sq m.


The local official board of valuers told us a Standard Ground Value (Bodenrichtwert) of

130 €/sq m for use of Sondergebiet (special Area “SO”), and they told us that the only

other large scale Shopping Center had reached a price of 240 € sq m land (although it is

only a little bit closer to the city center).

Therefore we think that 150 €/ sq m, which we use in our valuation for 1 sq m addi‐

tional land, is a realistic sum. But if the development will fail we will have to reduce the

value to the Standard Ground Value = Guideline Land Value (Bodenrichtwert) of 130

€/sq m.






8.3.1 SWOT Analysis

Strengths:

Good location for that kind of use (at a thoroughfare)

Simple building type

Very high demand for such kind of a property (“SO” Retail Zoning for large scale

retail/shopping center)

Weaknesses:

Development with new and larger sales buildings at least delayed, due to a miss‐

ing rental contract with DIY Market OBI, that leads to a further use of the con‐

temporary outworn buildings

Limitation of the city relevant sales space by the new Zoning Plan

Buildings remain old – even when they are renovated

Opportunities:

Probable future rise of rents – after a development in a more further future

Successful Development in a further future

Threats:

More modern retail space at another property

8.3.2 Saleability







circumstances thus:













stated.


9 Market Value



above:




On the basis of the foregoing and

with express reference to the assumption that the contract with OBI for the DIY De‐

velopment size will be signed,

Appendix 6,

and Section 10, of this valuation, our opinion of the Market Value of the subject prop‐

erty:

Im Götzmann 2 77933 Lahr

on the valuation date of 30th September 2012 is

€ 7,050,000

(Seven million and fifty thousand Euro)

Berlin, November 18th 2012







valuation Klaus Schlicht has acted as an external valuer working in a fee earning capaci‐

ty for the named client. Klaus Schlicht does not have any direct or indirect personal or




valuation results.









10.2 Market Value












etc.);




property);


etc.);










10.4 Documents





by the Valuer Klaus Schlicht.


uments were not requested by the valuer as ordered by the client:

‐ building encumbrance (Baulastenverzeichnis) / partly

‐ a comprehensive legal due diligence – espec. for the easements and the kind of a us‐

age for landparcel 1870.





10.5 Assumptions
























not been tested;









Appendices





1 Retail Eddy 5,906.00 € 800.00 m² 7.38 €/m² 7.00 €/m² 5,600.00 €

2 Retail Shoe 6,005.00 € 640.60 m² 9.37 €/m² 8.00 €/m² 5,124.80 €

3 Retail Th. Phill ips 9,650.00 € 1,930.00 m² 5.00 €/m² 5.00 €/m² 9,650.00 €

4 Gas Station land rent 2,419.00 € 2,200.00 m² 1.10 €/m² 1.10 €/m² 2,419.00 €

5 Snack Bar land rent 1,052.00 € 180.00 m² 5.84 €/m² 5.00 €/m² 1,052.00 €

6 Others 100.00 € 20.0 m² 5.00 €/m² 5.00 €/m² 100.00 €

7 Parking Outside 654 ST 0.00 €/m² 0.00 €/m² ‐ €

Total 25,132.00 € 3,390.60 m² 23,945.80 €

674 ST

2,200.00 m²

Vacant

8 Storage 1,000.00 m² 0.00 €/m² 2.00 €/m² 2,000.00 €

9 Retail zentrumsrelevant 629.00 m² 0.00 €/m² 6.00 €/m² 3,774.00 €

10 Retail 4,102.00 m² 0.00 €/m² 6.00 €/m² 24,612.00 €

Total 25,132.00 € 9,121.60 m² 54,331.80 €

Annual GRI rd. 301,584.00 € 651,982.00 €

Im Götzmann Lahr


Property: Im Götzmann

Address: Lahr

€ 7,050,000

7.00 %

18.40

5.4%

€ 651,982.00

(at market)

in % of GRI: 4.00 % = € 26,079.00

in % of GRI: 2.00 % = € 13,040.00

management

2.00 % = € 13,040.00

maintenance incl. storage

per m² p.a. 7.00 €/m² = € 63,851.20

per St p.a. 25.00 €/ST = € 16,350.00


in % GRI: 20.3 %

€ 519,622.00

x 14.286


Additional Land Value 10,000.00 m² 150.0 €/m² € 1,500,000.00

Refurbishment costs retail 4,731.00 m² 150.0 €/m² = ‐€ 709,650.00

Vacancy

loss of GRI retail 12.0 months 4,731.00 m² 6.00 €/m² = € 340,632.00

loss of GRI storage 12.0 months 1,000.00 m² 2.00 €/m² = € 24,000.00

operating costs lettable void storage 12.0 months 1,000.00 m² 0.50 €/m² = € 6,000.00

operating costs lettable void retail 12.0 months 4,731.00 m² 1.00 €/m² = € 56,772.00

Marketing Costs 5.0 months 4,731.00 m² 28,386.00 € = € 141,930.00



5.0 % = € 352,274.00

2.0 % = € 140,909.00

1.5 % = € 105,682.00

say: € 598,865.00

* € 7,045,471.00


key data without add land

18.40

5.43%

8.51

11.75%

9.36%







void allowance

market value as is:

All Risks Yield





Calculation:


agent

Summary

legal & notary





x multiplier


tax



Yield

6,380,000.00 €7.75%0.75%

6,590,000.00 €7.50%0.50%

6,810,000.00 €7.25%0.25%

7,050,000.00 €7.00%Original Yield

7,300,000.00 €6.75%‐0.25%

7,570,000.00 €6.50%‐0.50%

7,870,000.00 €6.25%‐0.75%

Lahr

Im Götzmann


Appendix 3: Photos

Source: DLK GeoContent, GeoContent GmbH, Magdeburg Status: Befliegungsdatum: 21.07.2000



Reques: Im Goetzmann 2, 77933 Lahr Land parcel No.: Flurstück Nr. 1826/4, Im Goetzmann 2‐4, Gemarkung Mietersheim

130,00 Euro/qm


Appendix 6: Text (“Planungsrechtliche Festsetzungen”) Zoning Plan 2. Issue – August 2011

Appendix 3+4 shorted and Appendix 5+6 deleted by order of appliacant to reduce the file size

V A L U A T I O N of the Market Value of the properties “BSB II, BSB IV”:

Zöllnitzer Straße 2‐4 in 07751 Zöllnitz


30st September 2012



€ 19,960,000.00Zöllnitzer Straße incl. additional Land Value € 1,350,565.00

6.25 %

GRI € 1,535,755.00

€ 241,468.00


NRI: € 1,294,287.00

10.65

9.39%

12.12

8.25%

6.96%




Market Value:








Project Rose Portfolio 30.09.2012 Properties BSB II, IV Zöllnitz Zöllnitzerstr. 2‐4 Page 2 of 50


1 Instructions .............................................................................................................................. 4




3.2 Land register 30.08.2011 ........................................................................................................................ 7





4.3 Key data District Jena ............................................................................................................................ 15


5.1 Micro Location ...................................................................................................................................... 16


6 Building .................................................................................................................................. 25

6.1 Building ................................................................................................................................................. 25



7 Schedule of rent ..................................................................................................................... 27

7.1 Commercial rent from ImmobilienScout24........................................................................................... 27

7.2 Retail trade Competition ....................................................................................................................... 30

7.3 Summary ............................................................................................................................................... 35

8 Valuation ................................................................................................................................ 36





9 Market Value ......................................................................................................................... 41



10.2 Market Value ......................................................................................................................................... 42


10.4 Documents ............................................................................................................................................ 43

10.5 Assumptions .......................................................................................................................................... 43

Appendices:

Appendix 1: Calculation


Appendix 3: Photos


Appendix 5: Land Encumbrances



1 Instructions


represented by


14 Ehad Adam Street


Property: Freehold Property

Zöllnitzer Straße 2‐4

07751 Zöllnitz

(District of Zöllnitz, Page 469 cadastral unit 4, parcels

of land 118/2, 118/3, 119/2,119/3, 125/4, 125/8,

125/12, 126/3, 127/1, 128/1, 129/2, 130/2, 121/2,

121/3, 125/6, 125/10, Page 475, unit 4, parcels of

land 94/5, 95/2, 133/2, 136/2, 138/2, 139/6, 140/2,

141/6, 141/9, 141/10, 142/7, 112/9, 112/10, 112/11,

112/12, 113/13, 113/14, 114/2, 114/3, 115/2, 116/3,

116/27, 117/18, 130/4, 132/3, 133/3, 133/5, 135,

137/3, 137/4, 143/3, 143/4, 144/1, 144/4, 144/5,

145/3, 145/4, 146/3, 146/4, 146/9, 146/10, 151, 152,

153, 154)


‐ In accordance with: Approved Property Standards of the European Group

of Valuers Associations (TEGoVA)




Building Code)





inspection and the valuation date concerning the sta‐

tus of the asset.

‐ Participants: Mrs. Petra Schoebel for Schlicht und Kollegen und

Mr. Böttcher for Estavisio


Owner: BSB II BV & Co. KG, BSB IV BV & Co. KG


Report written by: Klaus Schlicht MRICS Assoc MAI

Linienstr. 127

10115 Berlin

Conflict of interest We confirm that the Valuer Klaus Schlicht acted as an

independent valuer and that he has no conflict of in‐

terest in acting on your behalf in this matter. We con‐

firm that he has or has had no other fee earning rela‐

tionship with BSB, its directors or the property.


Summary Excel rent‐role CGG dated 17.10.2012 pro‐

vided by Estavisio

Investigations: Investigations: City authorities of Zöllnitz and Jena

(key data, economic structure, cadastral map, build‐

ing laws, zoning plan)


Database Geoport (with EHI), Hypzert, Immobilienscout, IVD,

Official Board of Valuers District Saale‐Holzland‐Kreis,

Official Board of Valuers City of Jena, TLG





‘”Beizulegender Zeitwert” is the amount to which an asset could be exchanged between

professional and non inter‐dependent business partners who are willing to conclude a

contract.’






properties held as capital assets (IAS 40) represents the Verkehrswert [Market Value] on

the date of valuation.




proper marketing where the parties had each acted knowledgeably, prudently and with‐

out compulsion’




Federal State: Thuringia

Administrative district: Saale‐Holzland

Town: Zöllnitz


Land registry Local Court of Stadtroda

Land register for: Zöllnitz

Page 469

Inventory See annex

Section I

Owner Grundstücksgesellschaft BSB II BV & Co KG


Several drain rights ;

Section III


into account, as these liens do not influence the market value, rather the purchase price

of the property (see Section 2.3). It has been assumed that no interest advantages or

disadvantages would be incurred by a potential purchaser as a result of any possible or

inescapable assumption of them.

Page 475

Inventory See annex

Section I

Owner Grundstücksgesellschaft BSB IV BV & Co KG



Several drain rights ;

Section III


into account, as these liens do not influence the market value, rather the purchase price

of the property (see Section 2.3). It has been assumed that no interest advantages or

disadvantages would be incurred by a potential purchaser as a result of any possible or

inescapable assumption of them.

There is a priority notice for Mr. Frank Heinrich for a piece of land with a size of 1,200

sqm from the land pieces Nr. 113/13, 113/14, 114/2, 114/3 – we could not get any ex‐

planation from the owner about this and its only 1,200 sqm, so we do not take it into ac‐

count in this valuation.


We did not get complete information concerning building encumbrance (Baulast), alt‐

hough we asked this year again several times for it. We also did not get an authorisation

of making own inquiries, and therefore assume for this valuation that there is no impact

from “Baulasten” to the value. For some of the parcels we received information that

there are no building encumbrances at them, we add this part information at the annex.



Tenants:

We were told that Praktiker is hardly paying any rent (see above 0.86 €/sqm), because

they won a law suit against the owner (for formal reasons the rental contract is not val‐

id). Nonetheless they stay in the property and pay only the low rent and div. service and

operating costs. The “rent” shown there above in addition (64,173 € p.m.) is resulting

from a rental guarantee of the former owner. We got different information about the

length of the payment ‐ in general whether it runs till June or November 2014. The ex‐

planation of the asset management for the end of the lease term 20.11.2014 sounds

reasonable (the rental contract started at that day) – so we chose this one. We were al‐

so told by the client that the rental guarantee is secured with a deposit, but we do not

have more detailed information about that, so we assume it is enough to secure the

rental guarantee till the end of the standard rental period in ca. 2 years.

Last year Roller prematurely prolonged its rental contract till 2020 which is good suc‐

cess, although there is a rental reduction, because Roller is known for its tough way of

negotiations and great rental price sensitivity.

The owner also succeeded to rent the long time vacant space with a long running rental

contract, although the rent for this space was reduced this year after negotiations with

the tenant.

Rent Roll Rosebud Portfoliolast updated: 17.10.2012

retail others outdoor for … years retail others outdoorper

monthperyear

KüchenChef GmbHZöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

355 01.10.2007 31.12.2012 4.16 1,479 17,746

Praktiker Deutschland GZöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

9,689 21.11.1994 20.11.2014 2 x 5 0.86 8,333 100,000

Praktiker Deutschland GmbH - Rental Guaranty

Zöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

64,173 770,072

Roller GmbHZöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

10,058 17.08.1995 31.12.2020 2 x 5 5.87 59,042 708,500

Thomas Phillips GmbHZöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

2,221 04.07.1996 31.03.2017 4.50 10,000 120,000

Praktiker Deutschland GZöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

Zöllnitz 385 21.11.1994 20.11.2014 2 x 5 0.00 0 0

Roller GmbHZöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

Zöllnitz 303 17.08.1995 31.12.2020 2 x 5 0.00 0 0

Meudtner Logistik GmbHZöllnitzerstraße 2-4, Gewerbeobjekt GE-West, GE-Ost, SO-West

Zöllnitz 977 04.10.2011 03.10.2026 1 x 5 2.70 2,638 31,652

Völkel Im Lerchenfeld Zöllnitz 17,951 01.09.2004 31.12.3000 0.00 8 100

parking spaces

assettenant


net rent in €/m² - €/per parking spaceparking

leasestart date

leasematurity

date

option



Overview Federal State: Thuringia

District: Saale‐Holzland‐Kreis

Source: Einordnung Deutschland, Tele Atlas Deutschland GmbH, Harsum : April 2006




Airport Erfurt 48,70 km W

Next Railway Station Neue Schenke 0,30 km N

Nearest motorway junction 54 AS Jena‐Lobeda, A4 1,39 km NW


Jena 6,92 km NW

Hannover 212,47 km NW

Berlin 221,10 km NO




Zöllnitz

Adm. district Landkreis Saale‐Holzland‐Kreis


Germany

Population 7402009

87.4002009

2.249.882 2009

81.802.2572009

‐ below 18 years (in %) 15,142009

12,862009

12,70 2009

16,482009


22,382009

23,05 2009

20,662009


0,03 2009

0,002009

Migration

‐ immigration into municipality 522009

4.8052009

90.638 2009

4.357.4652009


5,502009

4,03 2009

5,332009

‐ emigration out of municipality 412009

5.3392009

98.664 2009

4.370.1782009


6,112009

4,39 2009

5,342009

Unemployed persons

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8,006.2011

9,3 06.2011

7,706.2011

State benefits

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0,202009

0,37 2009

0,382009

Foreign nationals

‐ rate (in %) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1,772009

2,12 2009

8,722009


9.707 2009

998.9692009


0,43 2009

1,222009


9.025 2009

971.4272009


0,40 2009

1,192009


Zöllnitz



Germany

Hospitals ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 22008

43 2008

2.0832008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7562008

15.954 2008

503.3602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8,572008

7,04 2008

6,142008


36 2008

1.2392008

‐ beds ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5272008

6.158 2008

171.0602008


‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5,982008

2,72 2008

2,092008



Zöllnitz



Germany

Accommodation 22009

542009

1.367 2009

53.7452009

‐ thereof hotels ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 432009

1.058 2009

35.8712009

‐ beds 2.2312009

67.507 2009

2.797.0672009


36,06 2009

35,162009


3.234.565 2009

130.188.3912009


8.885.933 2009

358.920.7412009


3,872009

2,75 2009

2,762009


Zöllnitz



Germany


8,192008

9,14 2008

13,202008


53,072008

54,42 2008

52,552008

‐ forest 46,672008

35,692008

31,86 2008

30,062008

‐ water 0,952008

0,742008

1,22 2008

2,382008


2,322008

3,36 2008

1,832008


Municipality Zöllnitz



Germany

‐ living 5,262008

6,192008

6,50 2008

24,892008


5,702008

6,44 2008

8,522008


3,862008

4,78 2008

8,032008

‐ traffic 31,582008

44,002008

44,87 2008

37,742008

‐ other 47,372008

40,272008

37,41 2008

20,822008


Zöllnitz



Germany


442009

1271 2009

690782009


32009

120 2009

74102009


42009

64 2009

61072009


212009

602 2009

526202009


716 2009

26.4582009


538 2009

27.9402009


4.3 Key data District Jena


Area (in sq km): 114,47


One of the rare areas in east Germany with a popula‐

tion growth 2002‐2007 +2,2%


Development in births: 0.7 Promill

Development in migration: ‐1.0 Promill





Key date Village of Zöllnitz


Area (in sq km): 4.2

Total population: 731



5.1 Micro Location

Located in the federal state of Thüringen, Zöllnitz is a small village on the outskirts of Je‐

na. It is effectively part of Jena being only 6.5km from the town centre. In contrast to

most of the East Jena has fared relatively well since reunification. This is largely due to

the success of the town’s major company, Jenoptik. Specializing in high tech optics this

former DDR company has managed to evolve into a high tech enterprise. In addition to

direct employment, component manufacturers and service providers have also benefit‐

ed. Unemployment rate dropped down in the last years significantly to now 8.88 %, this

is still higher than the German average with 8.3 % but better than the 11.1% average for

Thuringia.

The property is located in a new commercial area, just outside of Jenna’s municipal

boundary. Zöllnitzer Strasse is a side road to the main L1077 which becomes the B88,

the arterial road from Jena‐Lobeda junction of the A4 autobahn into the town centre.

The motorway junction is only 2km from the property.

Around the motorway junction a considerable amount of new commercial development

is being undertaken and a concentration of car dealerships is emerging. There is a Me‐

dia‐Markt outlet in a former furniture outlet.





Micro Market Data:


Micro market name Zöllnitz Municipality Zöllnitz

Population 740 Population density (Inhabitants per sqkm)

176

Area in sqkm 4,20



Social environment Ländlich‐konformes Milieu




Centrality / functional range index Einzugsgebiet















Households (total) 325

Households without children under 18 years 250 76,9 Households (head of h.h. aged 18 to 24 years) 15 4,6








Highest graduation




Graduate degree 81 10,9 Vocational school degree 502 67,8









47



49



59



25






4.607



83,1






115,1

Creditworthiness


Cars



Buildings and flats

Buildings (total) 227 Flats (total) 295





36 12,2




10



Extract, Source: Thüringer Landesamtes für Vermessung und Geoinformation, online 2008

Parcels parcels of land District of Zöllnitz, Page 469 cadastral unit 4, parcels of land

118/2, 118/3, 119/2,119/3, 125/4, 125/8, 125/12, 126/3, 127/1, 128/1, 129/2,

130/2, 121/2, 121/3, 125/6, 125/10, Page 475, unit 4, parcels of land 94/5, 95/2,

133/2, 136/2, 138/2, 139/6, 140/2, 141/6, 141/9, 141/10, 142/7, 112/9, 112/10,

112/11, 112/12, 113/13, 113/14, 114/2, 114/3, 115/2, 116/3, 116/27, 117/18,

130/4, 132/3, 133/3, 133/5, 135, 137/3, 137/4, 143/3, 143/4, 144/1, 144/4, 144/5,

145/3, 145/4, 146/3, 146/4, 146/9, 146/10, 151, 152, 153, 154

‐ Shape: irregular


‐ Surface: level


electricity supply,



Town planning circumstances: to be completed

‐ General: We assume the property has been built in accordance

with all planning consents and regulations.

‐ Zoning Map: Zoning Map (B‐Plan) Zöllnitz 1, 2, 3 ‐ Zoning for Mi,

GE and SO (Special Use large scale retail)


‐ Others: We have been told by the former and the current As‐

set Management that there is the possibility of de‐

veloping other parts of the land of the subject prop‐

erty which are currently not been built and not need

for the current buildings. This we take into our ac‐

count in the following valuation. We are not provided

with a Legal DD, so we must say that this fact has to

be proved by an attorney.

Subsoil conditions: According to the environmental report of Drees &

Sommer, the parcels are not listed as areas suspected

of being contaminated and there is no entry for pub‐

lic easement either. For the current development

there is, according to D&S, no need for action with

regard to site contamination, pathways from “soil to

man” and from “soil to groundwater”.


6 Building

The following schedule is only partial: only the important factors influencing value are shown with no claim to complete‐

ness. Circumstances not determinable by external inspection were taken from planning documents, the building specifi‐

cation and if appropriate oral statements by the persons present during the inspection.

6.1 Building


Retail (three separate buildings)

Load bearing structure – reinforced concrete framework structure with masonry‐

infills

Year of construction: 1993



‐ Retail: 23,299.21 m²

‐ Parking: 688 outside parking lots


Construction Building complex comprising between 1 / 2 storeys

Load bearing structure – reinforced concrete frame‐

work structure with masonry‐infills

Roof: Flat roof, double pitch + flat roof (Praktiker)

Walls

‐ Basement: not known

‐ Above‐ground walls concrete

Floors: Concrete

Façade: rendered façades, partly glazed façades (some areas

of Praktiker)

6.1.4 Fit‐out

The property is a retail warehouse development comprising single storey units sharing a

common car park. The buildings all date from the mid 1990.s and appear to offer func‐

tional accommodation.



Surfacing of site: car parking spaces on concrete paving, access roads

surfaced with bitumen, in good condition

Boundaries: ./.

Landscaped areas: courtyard area partly planted and well‐kept


Buildings are connected for mains water and sewer‐

age, electricity and telecommunications;



Technical installations: Average standard


Fit out: Functional


Condition: Average

Defects / disrepair: Not known.

General assessment: The objects Praktiker and Roller were built exclusively

for these special markets. Thus they are consistent

with the structural specifically standards. In the event

that the current main tenant moves out, considerable

expenses will arise.

Others: We understand that the costs for the soil condition

will only arise in the case of a redevelopment. The

costs “annex 3” in the Drees&Sommer‐Report are

implicated in our maintenance amount.


Within the scope of a market valuation, it is not possible to carry out detailed investigations of the type, ex‐

tent, cause and costs of the permanent rectification of defects and disrepair. In this regard, if necessary




stricted. Other defects and disrepair have only been reflected in the amount of deductions and approaches

that are normal in the market.


7 Schedule of rent

7.1 Commercial rent from ImmobilienScout24

Period of analysis: April 2012 till September 2012

Postcode District 07751

District Saale‐Holzland‐Kreis



Total number of views of expose 1,090 511




Total number of views of expose per offer per offering day 2 0.8


115 47



Postcode District 07751 District Saale‐Holzland‐Kreis




1


Offices 2 6.00 € 6.00 € ‐ 6.00 € 4

Retail 3 3.56 € 2.55 € ‐ 4.07 € 14



Others 0 4

Commercial rents in the District Saale‐Holzland‐Kreis:


1


Offices 5 5.85 € 4.40 € ‐ 6.50 € 4

Retail 0 14



Others 1 2.10 € 2.10 € ‐ 2.10 € 4



Market overview








(related to the German average)

Source: IS24 ‐ Miet‐ und Kaufpreise für Gewerbeimmobilien, Immobilien Scout GmbH, Berlin Status: September 2012


7.2 Retail trade Competition

Nearby Competition

BAU Do-It-Yourself


VMG Market large (1.500-4.999 m²)

DIS Discounter

GC Gardening

EKZ Shopping Center

SBW SelfService Warehouse (More than 5.000 m²)


Catchment Areas

Legend:





Legend:





DIS Discounter

GC Gardening

EKZ Shopping Center

SBW SelfService Warehouse (More than 5.000 m²)


Shopping Center

Nr Store Name Address Q1 Zone

2

Sales Area (m²)

DL3 EH

4 GA

5 B/T

6

Car‐parks

Opening

E.1 Burgaupark Keßlerstr. 12 7745 Jena

H 2 33,100 6 35 4 25,000 1,200 28.09.1995

E.2 Goethe‐Galerie Goethestr. 3b 7743 Jena

H ‐ 29,000 8 65 7 30,000 641 01.02.1996

E.3 Neue Mitte Jena Leutragraben 1 7743 Jena

H ‐ 11,000 1 32 7 180 24.10.2003

1 Quality of geo‐position: H – near house number, S – within street, P – within ZIP code area 2 Catchment Area: 1. distance by car 2 km / 2. distance by car 7 km 3 Services 4 Retail 5 Gastronomy 6 Visitors per day

Retail Trade

Nr


2

Sales Area (m²)

Revenue3

(MEuro pa)

1

Praktiker Praktiker Zöllnitzer Str. 47751 Zöllnitz

H BAU 1,2 7,900

2

Netto Netto Erlanger Allee 1027747 Jena

H DIS 2 840 2.1

3 Media‐Saturn Media Markt Stadtrodaer Str. 1057747 Jena

S ELE 2 3,000

4 Hornbach Hornbach Brüsseler Str. 17747 Jena

H BAU 2 12,532

5

Rewe Ost Rewe Weiß Salvador‐Allende‐Platz 257747 Jena

H VMG 2 1,985 4.026

6

Aldi Nord Aldi Markt Salvador‐Allende‐Platz 257747 Jena

H DIS 2 1,000 3.806

7

Kaufland Kaufland Karl‐Marx‐Allee 207747 Jena

H SBW 2 5,023 15.771

8

Netto Netto Stauffenbergstr. 437747 Jena

H DIS 2 680 1.677

9 Netto Netto Marktstr. 177747 Jena

H DIS 2 855 2.108

10 Netto Netto Im Borlich7751 Rothenstein

S DIS 2 600 1.979

11 Rewe Bau‐märkte

Klee Garten‐Center Lobedaer Str. 107745 Jena

H GC 2 4,500

12

Toom Toom Keßlerstr. 127745 Jena

H SBW 2 6,091 22.537

13

Rewe UE Pro Markt Keßlerstr. 127745 Jena

H ELE 2 1,500

14

Aldi Nord Aldi Markt Oßmaritzer Str. 27745 Jena

H DIS 2 799 3.041

15

Lidl Lidl Rudolstädter Str. 317745 Jena

H DIS 2 800 2.941

16 Netto Netto Hermann‐Pistor‐Str. 33a7745 Jena

H DIS ‐ 1,080 2.702

17 Norma Norma Friedrich‐Zucker‐Str. 1‐37745 Jena

H DIS 2 385 0.77

18 Aldi Nord Aldi Markt Jenaer Str. 117646 Stadtroda

H DIS 2 799 4.009

19

Rewe Ost Rewe Schmelzer Jenaer Str. 07646 Stadtroda

S VMG 2 2,000 5.326

20

Norma Norma Ziegenhainer Str. 54‐567749 Jena

S DIS ‐ 800 2.96

21

Edeka Nord‐bayern

Diska Dorfstr. 17751 Jena

H DIS ‐ 650 1.526

22

Netto Netto Tatzendpromenade 97745 Jena

H DIS ‐ 742 1.829


Nr


2

Sales Area (m²)

Revenue3

(MEuro pa)

23 Aldi Nord Aldi Markt Leutragraben 17743 Jena

H DIS ‐ 799 3.041

24 Zeus Heimwerker Roscher & Wolf

Johannisstr. 197743 Jena

H BAU ‐ 180

25

Tegut Tegut Carl‐Zeiß‐Str. 47743 Jena

H VMG ‐ 2,055 12.0

26

Norma Norma August‐Bebel‐Str. 277743 Jena

H DIS ‐ 799 1.611



7.3 Summary

There was no real change in the DIY Retail situation in Jena over the years – all large DIY

companies are already there. In general the turnover of the big DIY companies grew per

shop, but not this year.

We did not get information about the turnover of the Praktiker market at the subject

property but this is here of less relevance, because we were told that the contract rent is

already paid from a deposit and because of the weak economic situation of Praktiker

and their law suit against the rental contract we have to assume that they will leave af‐

ter the end of the standard rental period in about 2 years latest anyway. Regarding the

DIY market situation in the area in general and the reputation of Praktiker as nearly

bankrupt in particular the contract rent is above market. Therefore set the market rent

for the Praktiker rather conservative and cautious, below the Roller Rent, in order to

support a fast re‐letting till the end of the rental guarantee.

Due to the new rental contract with Roller, and taking into account their reputation as

(rental)‐price sensitive and their market power, we have to assume that this is market

rent.

So with the exception of the Praktiker space we take the contract rents as market rents,

and take the market rents for our valuation calculation. The difference between the

market rent and the Overrent at the Praktiker space is added in the calculation for the

remaining standard rental period.

For a description of the current rental situation at the subject property please see above

at section 3.3.


8 Valuation



tual behaviour of market participants, i.e. it must take into account those influences that

would govern the determination of the sale price in normal course of business.

The subject property – the compound ‐ consists of standard large scale retail buildings.

Comparable properties are mostly dealt with from a yield point of view.


vestment method.





We did not inspected all rental contracts, so we have to assume, that the figures named

in the excel rent roll are correct.

Market rents are taken into account for our valuation. The rent Praktiker is actually pay‐

ing (see Bullet 3.3) is clear below market, but together with the rental guarantee it is

above market for the time of the standard rental period (see Bullet 7.3). The difference

is added for the remaining time of the standard rental period.

Risks with regard to rental levels and vacancy rates are incorporated in the all‐risks yield.








qualities, the interest rate increases in line with each tenant’s creditworthiness and loss

of rental income risks.


According to that, we take into account the chance to use an additional landscape for

car‐cleaning or such things.

Despite this, we consider an all‐risks yield of 6.25% to be appropriate for the property.

The yield we have chosen was influenced because of the fact that ROLLER who are

known for their cautious rental policy early prolonged its rental contract till 2020 on a

low rental height and that the long time vacant space was rented till 2026. Both rental

contracts reduce the risk at that site. To reduce the risk and enlarge the chances to find

a new tenant we lowered this year the market rent of the current Praktiker space. Posi‐

tive to mention is also that the client is seriously negotiating about selling 50,000 sqm of

the huge vacant land around the retail properties for a price of ca. 30 €/sqm land, which

is above our cautious estimation.



erating costs and costs for management and maintenance. The estimates for that prop‐

erty run at 1.5% for non recs service charge, 1.0% for management and 6.50 €/m² for

maintenance for the buildings and 25 €/sqm per parking lot above ground.


to the tenants.

8.2.5 Renovation and refurbishment costs

The buildings are relatively new, and appropriate for modern large scale retail, and they

used by well known large retail companies which are caring for their sites. We didn’t see

at our site visit any actual need for a refurbishment. Nonetheless we have to assume

that some costs will occur when a new tenant will take the space of Praktiker.

8.2.6 Vacancy Costs

We suppose that about 2 years’ time (remaining rental period of Praktiker) will be

enough to search for a new tenant. Thus we do not take into account a loss of GRI for

searching a successor of the current tenant, but we deduct some vacancy time for the TI

construction period in ca. 2 years. And we deduct an amount for advertisement – con‐

sisting out of a marketing budget and an agent fee.


8.2.7 Additional landscape

There is an additional landscape, ready for an extension of the site. We assume that this

area could be used separately.

To act with caution, we attach to this additional land the standard ground value, pub‐

lished by the local land valuation board. And to be really on the safe side with the future

development, we calculated only with ca. 100,000 sq m net building land, of 266.390 sq

m gross building land (see above at 3.2 ‐ a tabloid with lot numbers). And we assume

that this additional land can not be sold at once. We assume 50,000 sqm can be sold in 5

years and the other 50,000 sqm in 10 years. For that reason we discount the value with

5.50 % over 5 years resp. 10 years.

We were told by the Asset Management that the client is currently negotiating seriously

about selling 50.000 sqm of gross building land for 30 €/sqm, so the 20 €/sqm we esti‐

mated for the whole compound of at least 100,000 sqm is rather conservative. After

phoning with the community we assume for this valuation that this land will liable to

additional local development charges when it will be built.






8.3.1 SWOT Analysis

Strengths:

well‐known nationwide retailers

well‐known location for large scale retail since years now

Modern large scale retail buildings suitable for that purpose

Close to Autobahn and easy to reach via car from all Parts of Jena and the country‐

side around

Region of Jena has a strong positive economical development, one the few rare ar‐

eas in the east with a grow in population

Weaknesses:

Praktiker is nearly bankrupt

Praktiker (DIY Company) will not renew their lease term, they are unsatisfied and

won a legal suit that allow them to cancel their rental contract. So a new tenant will

be probably necessary.

Opportunities:

Developing additional land

Selling additional land

Getting a more stable tenant than Praktiker

Threats:

Bigger and more sophisticated shopping agglomerations

No new tenant as a spare for Praktiker although there is more than two years’ time

to search for

8.3.2 Saleability


be realised, we would estimate this to be 9‐12 months from the commencement of the

marketing period. Generally we would not envisage any difficulties in realising a sale of

this property, but we still have an economic crisis. So we can say with confidence is that

any property valuations reported at the present time contain “abnormal uncertainty”

caused by “market instability”. RICS Guidance Note 5 (GN5) refers to such circumstances

thus:

“Unforeseen macroeconomic or political crises can have a sudden and dramatic effect on

markets. This could manifest itself by either panic buying or selling, or simply a disincli‐


nation to trade until it is clear how prices in the market will be affected in the longer

term. If the valuation date coincides with the immediate aftermath of such an event, the

data on which any valuation is based may be confused, incomplete or inconsistent, with

an inevitable effect on the certainty that can be attached to it”.





you in the context above, and that in our opinion the value of the Property is fairly stat‐

ed.


9 Market Value



above:






Zöllnitzer Straße 2‐4 07751 Zöllnitz (Page 469 cadastral unit 4, parcels of land 118/2,

118/3, 119/2,119/3, 125/4, 125/8, 125/12, 126/3, 127/1, 128/1, 129/2, 130/2, 121/2,

121/3, 125/6, 125/10, Page 475, unit 4, parcels of land 94/5, 95/2, 133/2, 136/2, 138/2,

139/6, 140/2, 141/6, 141/9, 141/10, 142/7, 112/9, 112/10, 112/11, 112/12, 113/13,

113/14, 114/2, 114/3, 115/2, 116/3, 116/27, 117/18, 130/4, 132/3, 133/3, 133/5, 135,

137/3, 137/4, 143/3, 143/4, 144/1, 144/4, 144/5, 145/3, 145/4, 146/3, 146/4, 146/9,

146/10, 151, 152, 153, 154) on the valuation date of 30th September 2012 is

€ 19,960,000

(Nineteen million nine hundred and sixty thousand Euro)






This appraisal has been prepared in accordance with the International Valuation Stand‐

ards 2011 and the RICS Appraisal and Valuation Standards. In the context of the valua‐

tion Klaus Schlicht has acted as an external valuer working in a fee earning capacity for

the named client. Klaus Schlicht does not have any direct or indirect personal or corpo‐

rate relationships with the properties or company that is the subject of this assignment

and that might lead to a potential conflict of interest. Furthermore, the agreed compen‐

sation is not contingent upon any aspect of the report, including the valuation results.

This engagement has been performed independently and without bias toward the client

or others. We have complied with the code of conduct and adhered to the ethical



the Royal Institution of Chartered Surveyors has not previously been signatories to valu‐

ations provided to the client for the same purposes as this report.



10.2 Market Value

The Market Value was determined by using the Investment Method, in accordance with

the standards of the RICS (London) and the Appraisal Institute (Chicago III.), as well as

those stipulated in the German Federal Building Code (BauGB).


the existing situation (combined occupation of the subject property with a very good lo‐

cation). As the rent currently being paid is at market level, for our calculations using the

Investment Method the current ERV has been capitalised in perpetuity.





etc.);


chbarrecht (law concerning the respective interests of occupiers of adjoining prop‐

erty);



etc.);










10.4 Documents

The above advisory opinion is the result of our research and on‐site findings without car‐

rying out a legal‐due‐diligence (e.g. lease contracts, ownership structure) or technical‐

due‐diligence (e.g. building structure, partitioning, fit out etc.). The delivered documents

(tenant lists, technical reports) for the above calculations were not audited by the Valu‐

er.

The Valuer was not provided with the following documents by the client and the docu‐

ments were not requested by the Valuer as ordered by the client:

‐ Lease contracts


‐ complete land registers for the surplus land

‐ more information about the rental deposit for the whole contract

In accordance with the client we assume that there are no facts in these documents with

significant influence on the market value.

10.5 Assumptions


A valuation to market value can only reflect influences on value that may be ascertained

by an external, non‐damaging survey.

For the purposes of this valuation, it has therefore been assumed that the site is free of

contamination and that its characteristics as regards development would not involve any


expenditure higher than is normal in the location, unless the external non‐damaging

survey provides indications that in the circumstances could result in a reduction in value

being deduced.













No investigation of the buildings with respect to deleterious materials (e.g. asbestos,

formaldehyde, high alumina cement etc.) has been carried out;


been tested;


ject property is covered by insurance, both as regards the type of potential damage

and the appropriate amount of the sum insured.

In the following report it will be assumed that there is no adverse effect on value as a re‐

sult of the circumstances described above, unless, in the course of the non‐damaging in‐

spection, there were indications giving rise to inferences of a reduction in value resulting

from these circumstances.

In the following report it will be assumed that there is no adverse effect on value as a re‐

sult of the circumstances described above, unless, in the course of the non‐damaging in‐

spection, there were indications giving rise to inferences of a reduction in value resulting

from these circumstances.




with the actual measurements, or that any discrepancies that may occur would not have

a significant effect on the outcome of the valuation.


Appendices:





1 Praktiker 72,506.00 € 9,688.62 m² 7.48 €/m² 5.00 €/m² 48,443.10 €

2 Roller 59,041.69 € 10,058.21 m² 5.87 €/m² 5.87 €/m² 65,411.69 €

3 Phill ips 10,000.00 € 2,220.89 m² 4.50 €/m² 4.50 €/m² 10,000.00 €

4 Küchen Chef GmbH 1,478.84 € 355.49 m² 4.16 €/m² 4.16 €/m² 1,478.84 €

5 Meudtner Logistics 2,637.66 € 977.00 m² 2.70 €/m² 2.70 €/m² 2,637.66 €

6 Völkl Jens ‐ green land 8.33 € 8.33 €

7 Parking Space 688 ST

Total 145,672.52 € 23,300.21 m² 127,979.62 €

Parking Space

Praktiker 385 ST

Roller 303 ST

Total 145,672.52 € 23,300.21 m² 127,979.62 €

Annual GRI rd. 1,748,070.00 € 1,535,755.00 €

Zöllnitzer Straße Zöllnitz


Property: Zöllnitzer Straße

Address: Zöllnitz

€ 19,960,000

6.25 %

10.65

9.4%

€ 1,535,755.00

(at market)

in % of GRI: 3.00 % = € 46,073.00

in % of GRI: 1.00 % = € 15,358.00

management

1.50 % = € 23,036.00

maintenance

Buildings per m² p.a. 6.00 €/m² = € 139,801.00

Parking places per pc p.a. 25.0 €/pc = € 17,200.00


in % GRI: 15.7 %

€ 1,294,287.00

x 16.000


Overent Praktiker

Unit 1 288,754.80 €

Unit 1 cap. Standard rental period 2.13 years 6.25% 1.934 = € 558,448.28

Letting Praktiker space

Vacancy period 6 months x 48,443.10 € € 290,658.60

Operating Costs 6 months x 0.50 € € 29,065.86

Ti's 9,689 m² x 50.00 € € 484,431.00

Advertisement 6 months x 48,443.10 € € 290,658.60

‐€ 1,094,814.06

Discounted Sum 2.13 Years 0.879 = ‐€ 962,188.00


Additional Landvaluedisc. 5 yrs resp. 10 yrs with 5,5% 2 x 50.000 m² à 20 €/m² ebp € 1,350,565.00


5.0 % = € 997,945.00

2.0 % = € 399,178.00

1.5 % = € 299,384.00

say: € 1,696,507.00

* € 19,958,910.28


key data (without Additonal Land Value)

10.65

9.39%

12.12

8.25%

6.96%


Summary

legal & notary


market value as is:

All Risks Yield








x multiplier


tax

void allowance

Calculation:




agent






Yield

17,920,000.00 €7.00%0.75%

18,550,000.00 €6.75%0.50%

19,230,000.00 €6.50%0.25%

19,960,000.00 €6.25%Original Yield

20,750,000.00 €6.00%‐0.25%

21,610,000.00 €5.75%‐0.50%

22,550,000.00 €5.50%‐0.75%

Zöllnitz

Zöllnitzer Straße


Appendix 3: Photo


Reques: Zöllnitzer Str 2, 07751 Zöllnitz Land parcel No.: der Praktiker mit dem Roller Markt

75.00 Euro/qm

Usage – retail purpose Developed land – free of local infrastructure charges ref. BauGB and KAG Source: Gutachterausschuss für Grundstückswerte für das Gebiet des Saale‐Holzland‐Kreises Date: 31.12.2010

Appendix 5: Building Encumbrance


Appendix deleted due to file size by order of applicant