short report

Transcription

short report

Valuation Report
Elad Germany GmbH
Mr Erez Yaari
Lietzenburger Straße 107
10707 Berlin
Valuation
Terra Heimbau Portfolio
286 Properties in
20 Property Clusters,
Germany
Valuation date: 01.09.2011
Report date: 22.05.2012
Private & Confidential
DTZ Zadelhoff Tie Leung GmbH
Linkstraße 2
10785 Berlin
Tel. +49(0)30 20 17 05-0 Fax +49(0)30 20 17 05 499
www dtz.com
Geschäftsführer: Rainer Hamacher • Estanislau Torrent Janer
HRB 55026 • Amtsgericht Frankfurt/Main • Sitz der Gesellschaft: Frankfurt/Main • USt- D-Nr. DE 114232401
Berlin • Düsseldorf • Frankfurt am Main • Hamburg • Leipzig • München • Hannover
DTZ Valuation zertifiziert nach DIN EN ISO 9001
Valuation
Contents
Page
1
Introduction ......................................................................................................... 7
2
Inspections .......................................................................................................... 7
3
Compliance with Appraisal and Valuation Standards ...................................... 9
4
Status of Valuer and Conflicts of Interest .......................................................... 9
5
Professional Indemnity Insurance ..................................................................... 9
6
Purpose of Valuation........................................................................................... 9
7
Basis of Valuation ..............................................................................................10
7.1
Market Value ....................................................................................................... 10
7.2
Market Rent ......................................................................................................... 11
8
Taxation and Costs ............................................................................................11
9
VAT ......................................................................................................................11
10
General Assumptions and Sources of Information..........................................11
10.1
Legal Issues ........................................................................................................ 12
10.2
Title...................................................................................................................... 12
10.3
Condition of Structure and Services, Deleterious Materials, Plant and
Machinery and Goodwill .................................................................................... 13
10.4
Environmental Matters / Contamination ........................................................... 15
10.5
Areas ................................................................................................................... 16
10.6
Statutory Requirements and Planning .............................................................. 16
10.7
Leasing and Tenant Structure ........................................................................... 17
10.8
Residential Leases ............................................................................................. 18
11
Information provided and Plausibility Check ...................................................20
Approval: 22 05.12 STG
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Valuation
12
Portfolio Analysis ...............................................................................................21
12.1
Portfolio Overview .............................................................................................. 21
12.2
Lettable Areas..................................................................................................... 23
12.3
Type of Properties .............................................................................................. 23
12.4
Residential Unit Sizes ........................................................................................ 24
12.5
Vacancy Rates .................................................................................................... 24
12.6
Rental Levels ...................................................................................................... 25
13
Residential 2011 Market Overview ....................................................................26
13.1
Residential Stock ............................................................................................... 26
13.2
Residential Demand ........................................................................................... 28
13.3
Market Prices ...................................................................................................... 31
14
Valuation Methodology ......................................................................................34
14.1
Overall Approach and Analysis ......................................................................... 34
14.2
General DCF Assumptions ................................................................................ 34
14.3
Revenues ............................................................................................................ 35
14.4
Cost Assessment ............................................................................................... 36
14.5
Exit Capitalisation Rate ...................................................................................... 38
14.6
Discount Rate ..................................................................................................... 38
14.7
Saleability ........................................................................................................... 39
15
Valuation Summary ............................................................................................39
16
Confidentiality and Disclosure ..........................................................................40
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Valuation
Appendices
A
DTZ Confirmation of Instructions
B
Overview – Valuation Results
C
Property Templates
D
Sensitivity Analysis
E
Ap�praisersEducation
F
Standard Terms and Conditions
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Valuation
Executive Summary
Valuation Terra Heimbau Portfolio 2011
Subject of Valuation
Subject of this valuation are the 286 properties in 20 property clusters included in the Terra
Heimbau Portfolio. The Valuation is based on the data available as at 15 September 2011.
The valuation date adopted is 1 September 2011.
Description of the Portfolio
All properties of the Terra Heimbau Portfolio are located in the Rhine-Ruhr area in the federal
state North Rhine-Westphalia. The Portfolio has eight property clusters in Dortmund, three
property clusters in Hattingen as well as two property clusters in Gelsenkirchen, Gladbeck
and Castrop-Rauxel, respectively. The remaining three property clusters are in Dusseldorf,
Herne and Marl.
The total lettable area of the Portfolio amounts to 128,547 sq m with 127,409 sq m residential
area and 1,138 sq m commercial area. Furthermore, the Portfolio comprises 454 car parking
spaces.
About 4% of the lettable area in the Portfolio was constructed before 1945. Further 85% were
built between 1945 and 1970 and 11% were constructed after 1970.
As at the valuation date, 25,779 sq m of residential area and 771 sq m of commercial area
are vacant. Additionally, 140 car parking spaces are currently vacant. The Portfolio has an
overall vacancy rate of 20.7%.
The total current rent for residential and commercial area as well as the car parking spaces
and the additional income receivable from the Portfolio is approximately €5,560,000 per
annum.
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Valuation
Market Rent
We are of the opinion that the Market Rent of the Portfolio, as at 1 September 2011, based
on individual property assessments subject to the Assumptions and comments in this
valuation report and in the Appendices is as follows:
€6,940,000 (rounded)
(In words: six million, nine hundred forty thousand euro)
Market Value
We are of the opinion that the Market Value of the Portfolio, as at 1 September 2011, based
on individual property assessments subject to the Assumptions and comments in this
valuation report and in the Appendices is as follows:
€62,380,000 (rounded)
(In words: sixty-two million, three hundred eighty thousand euro)
This equates to €485 per sq m lettable area and a multiplier of 11.22 on current rent.
Volatility of Capital and Market Rent Performance
Considering the individual locations, the quality of the buildings and the current tenant
structure, it is assumed that the rental income remains relatively stable in the foreseeable
future. However, we would like to emphasise that most of the properties of the Portfolio face
a considerable backlog of repair. Without undertaking the necessary refurbishment works
immediately, it is likely that rental income will decrease significantly and the Market Rent
reported will not be achieved.
Likely Occupational and Investor Demand and Likely Categories of Purchasers
The properties are mostly in poor to fair condition and predominantly located in basic to fair
residential locations. Given the size, specification and location of the properties, individual
properties will attract investors with a regional focus.
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Valuation
Elad Germany GmbH
Mr Erez Yaari
Lietzenburger Straße 107
10707 Berlin
Our ref:
Direct tel:
Direct fax:
e-mail:
22 May 2012
Stephan Griese
+49 (0) 30 201 705 - 403
+49 (0) 30 201 705 - 499
stephan.griese@dtz.com
For the attention of Erez Yaari
Dear Mr Yaari
Valuation of the Terra Heimbau Portfolio
1
Introduction
In accordance with the instruction dated 15 July 2011, we have conducted the valuation of
the above mentioned Portfolio (in the following “the Portfolio”) in order to advise you of our
opinion on the Portfolio‟s Market Value as at 1 September 2011. The valuation is based on
the data available as at 15 September 2011. As instructed, we have assumed that the
information provided by Elad Germany GmbH and Hausverwaltung Matthias Rothe e.K. is
complete and fully reflects the situation as at the valuation date.
2
Inspections
For this valuation we have inspected a sample of Properties in all 20 property clusters
externally and internally.
Linkstraße 2
10785 Berlin
Tel. +49(0)30 20 17 05-0 Fax +49(0)30 20 17 05 499
www dtz.com
Geschäftsführer: Rainer Hamacher • Estanislau Torrent Janer
HRB 55026 • Amtsgericht Frankfurt/Main • Sitz der Gesellschaft: Frankfurt/Main • USt- D-Nr. DE 114232401
Berlin • Düsseldorf • Frankfurt am Main • Hamburg • Leipzig • München • Hannover
DTZ Valuation zertifiziert nach DIN EN ISO 9001
Valuation
Portfolio Overview
ID
Cluster
City
Address
1
Dusseldorf
Dusseldorf
2
Hattingen I
Hattingen
3
Hattingen II
Hattingen
4
Hattingen III
Hattingen
Hasselsstr. 16, 18, 20, 22
An der Hunsebeck 25, Heinrich-Zille-Str. 2,
Käthe-Kollwitz-Str. 1, 3, 5, 15
An der Hunsebeck 27, Heinrich-Zille-Str. 4, 6,
Käthe-Kollwitz-Str. 1a, 3a
Käthe-Kollwitz-Str.10
5
Herne
Herne
6
Gladbeck I
Gladbeck
7
Gladbeck II
Gladbeck
8
Gelsenkirchen I Gelsenkirchen
9
Gelsenkirchen
II
Gelsenkirchen
10
Marl
Marl
Type of
inspection
Full
Full
Full
Full
Full
13
Castrop-Rauxel
Castrop-Rauxel
I
Castrop-Rauxel
Castrop-Rauxel
II
Dortmund I
Dortmund
Edmund-Weber-Str. 242-262 (even), 262A
Almastr. 1-25 uneven, Horsterstr. 241-251
(uneven), 241A, 243A, 245 A, B, Marienstr. 2842 (even)
Bohnekampstr. 29-65 (uneven), Knappenstr. 1,
Eisenstr. 2
Hultschiner Str. 2-8 (even), 1, 3, Reichenberger
Str.14, 17-39 (uneven), 19a, 37a, Schönauer
Str. 1-8, Trautenauer Str. 1, 3, 5, 7
Laurentiusstr. 9-23 (uneven), 11A, B, 15A-C,
Sandstr. 45-55 (uneven)
Ostpreußenstr. 1-8, 10-36 (even),
Pommernstr. 2-4
Briloner Str. 32-34 (even), 42-44 (even),
52-54 (even)
56-60 (even)
Brüchtenweg 23
14
Dortmund II
Dortmund
Vogelpothsweg 25, Oberbank 5-7 (uneven)
Full
15
Dortmund III
Dortmund
Echeloh 4-32 (even)
Full
16
Dortmund IV
Dortmund
Echeloh 33-39 (uneven)
Full
17
Dortmund V
Dortmund
Full
18
Dortmund VI
Dortmund
Full
19
Dortmund VII
Dortmund
20
Dortmund VIII
Dortmund
Kirchlinder Str. 4-8 (even), Zollernstr. 1A
Kosselstr. 46-48 (even), Jungferntalstr. 71-81
(uneven), 98-100 (even), 85-113 (uneven),
76-94 (even)
Erpinghofstr. 24-34 (even), 34A, 48-58 (even),
61-67 (uneven), Rupinghofstr. 1-23 (uneven),
2-24 (even), Travemannstr. 5-9 (uneven),
Welkener Str. 25-31 (uneven)
11
12
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
The inspections were carried out by Stephan Griese MRICS (DTZ) between 6 and 8
September 2011. Where possible, we have inspected residential and commercial units of
different layout and refurbishment status.
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Valuation
3
Compliance with Appraisal and Valuation Standards
We confirm that the valuation has been prepared in accordance with the appropriate sections
of the Valuation Standards (“VS”) contained within the RICS Valuation Standards – Global,
7th Edition (the “Red Book”). This is an internationally accepted standard of valuation.
4
Status of Valuer and Conflicts of Interest
We confirm that we have undertaken the valuations acting as external valuers. In this
respect, we have prepared a Desktop Opinion on Value for Elad Germany GmbH in July
2011. Besides that, we can confirm that we have no current, anticipated or recent fee earning
involvement with any other party in connection with this valuation.
DTZ Zadelhoff Tie Leung GmbH was a wholly owned subsidiary of DTZ Holdings plc (the
“Group”) until 5 December 2011, when all the trading subsidiaries of the Group (the
“Subsidiaries”) were sold to UGL Limited (“UGL”). In the Group‟s financial year ending 30
April 2011, the proportion of fees payable by the Fund/Company to the total fee income of
the Group was less than 5%. UGL‟s financial year end is 30 June. We anticipate that the
proportion of fees payable by the Fund/Company to the Subsidiaries in the financial year to
30 June 2012 will remain at less than 5%.
5
Professional Indemnity Insurance
We confirm that our Professional Indemnity Insurance covers claims of up to €7.0 million.
DTZ Zadelhoff Tie Leung GmbH accepts liability for this instruction up to a maximum of
€7.0 million.
6
Purpose of Valuation
This valuation was originally required for internal and acquisition purposes. The values stated
in this report are aggregated rounded single property values. No adjustments have been
made on portfolio level.
We confirm that we have given our full consent to the inclusion of the valuation in its entirety
within the 2012 Q1 financial statements of Elad Europe Ltd. due to be published in Israel in
May 2012.
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Valuation
7
Basis of Valuation
Our Opinion of the Market Value of the Portfolio has been primarily assessed by using the
current rental income as well as an estimate of the future potential income generated by the
use of the properties, supported by comparable recent market portfolio transactions on arm's
length terms.
In accordance with your instructions, we have undertaken our valuations on the following
bases:
a.
Market Value
b.
Market Rent
Our valuation is subject to our Standard Valuation Terms, Conditions and Assumptions which
are included in the Appendix. In the event that any of our Assumptions prove to be incorrect,
our valuation should be reviewed.
7.1
Market Value
The value of the Portfolio has been assessed in accordance with the relevant parts of the
current RICS Valuation Standards - Global. In particular, we have assessed Market Value in
accordance with VS 3.2. Under these provisions, the term “Market Value” means:
”The estimated amount for which a property should exchange on the date of valuation
between a willing buyer and a willing seller in an arm's-length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently and without
compulsion.“
In undertaking our valuation on the basis of Market Value we have applied the conceptual
framework which has been settled by the International Valuation Standards Committee and
which is included in VS 3.2.
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7.2
Market Rent
Market Rent as defined in VS 3.3 of the Red Book. Under VS 3.3 the term “Market Rent”
means:
”Th eestimated amountf orwhi ch aproperty, orspa cewithi n aproperty, shoul dlea se)l(et on
the date of valuation between a willing lessor and a willing lessee on appropriate lease terms
in an arm's-length transaction after proper marketing wherein the parties had acted
knowledgeabl,y prudentl yan dwithout compulsio.n“
The Market Rent will normally be used to indicate the amount for which a vacant property
may be let, or for which a let property maybe re-let when the existing lease terminates as at
the valuation date. Market Rent is not a suitable basis for settling the amount of rent payable
under a rent review provision in a lease, where the actual definitions and Assumptions have
to be used.
8
Taxation and Costs
We have not made any adjustment to reflect any liability to taxation that may arise on
disposal, nor for any costs associated with disposal incurred by the owner. No allowance has
been made to reflect any liability to repay any government or other grants, taxation allowance
or lottery funding that may arise on disposal.
We have made a deduction to reflect purchaser‟s costs. Please note that the federal state of
North Rhine-Westphalia will increase the property transfer tax to 5% as at 1 October 2011.
As the valuation date is 1 September 2011 we have reflected the current property transfer
tax of 3.5%.
9
VAT
The capital valuations and rentals included in this Valuation Report are net of value added
tax at the prevailing rate.
10
General Assumptions and Sources of Information
An “Assumption” is stated in the Glossary to the Red Book to be a “supposition taken to be
true”. Assumptions are facts, conditions or situations affecting the subject of, or approach to,
a valuation that, by agreement, need not be verified by a valuer as part of the valuation
process. In undertaking our valuations, we have made a number of Assumptions and have
relied on certain sources of information. In the event that any of these Assumptions prove to
be incorrect, our valuations should be reviewed.
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10.1
Legal Issues
Legal issues, particularly the interpretation of matters relating to land registers and leases,
may have a significant impact on the value of a property. Where we have expressed our
opinion on legal issues affecting the valuation, then such opinion is subject to verification by
the client with a suitably qualified lawyer. In these circumstances, we accept no responsibility
or liability for the true interpretation of the legal position of the client or other parties in
respect of the valuation of each of the properties.
10.2
Title
We have not been provided with the copies of the land register extracts for each property.
However, we have been provided with an executive summary of the respective land registry
extracts by Elad Germany GmbH. According to the information provided, the Portfolio
consists of freehold and leasehold properties. The following properties are subject to
leasehold agreements:

Gladbeck II:
Bohnekampstr. 57, 59, 61, 63, 65

Marl:
Ostpreußenstr. 1-8, 10-36 even, Pommernstr. 2-4
According to the information provided by Elad Germany GmbH, the landlord and the
beneficiary of the leasehold agreement are identical. This circumstance was reflected in the
discount rate; however, we would like to point out that this has only a negligible influence on
value. For the following six properties a waiver for compensation of any damage resulting
from mining activities (“Bergschadensverzicht”) is entered in the land register:

Gladbeck II:
Bohnekampstr. 29-65 uneven, Knappenstr. 1, Eisenstr. 2

Gelsenkirchen I:
Hultschiner Str. 2-8 even, 1, 3, Reichenberger Str. 14, 17-39
uneven, 19a, 37A, Schönauer Str. 1-8, Trautenauer Str. 1, 3, 5,
7

Gelsenkirchen II:
Laurentiusstr. 9-23 uneven, 11A, B, 15A-C,
Sandstr. 45-55 uneven

Dortmund III:
Echeloh 4-32 even

Dortmund IV:
Echeloh 33-39 uneven

Dortmund V:
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Valuation
This means that the respective landlord will bear the risk of damage resulting from mining
activities, ranging from smaller repairs, such as the repair of smaller cracks, up to the
demolition and reconstruction of the related buildings. We have not been provided with
relevant documents and have no information on individual details of the agreements. For the
purposes of the valuation we reflected a risk premium in the discount and cap rate of
between 0.25 and 0.5% for the affected properties. However, we strongly advise to
undertake a survey by an expert for mining activities and mining damage to fully assess the
related risks and costs. For further details we refer to the Template Reports attached.
Furthermore, and if not stated otherwise in the Template Reports, we assume that the entries
stated in section II of the land register, building encumbrances, possible rights of way,
easements or restrictive covenants, disputes or onerous or unusual outgoings do not have a
detrimental influence on the value. We have also assumed that the properties are free from
mortgages, charges or other encumbrances.
Due to the age and the nature of the Portfolio, it is unlikely that the existing properties are not
constructed in accordance with the applicable laws and regulations. Thus, we do not assume
restrictions arising out of this issue.
The interpretation of the legal documents/disputes is a matter for lawyers and as such we
accept no responsibility or liability for the true interpretation of the legal position.
10.3
Condition of Structure and Services, Deleterious Materials, Plant and Machinery
and Goodwill
Due regard has been paid to the apparent state of repair and condition of each of the
inspected properties, but condition surveys have not been undertaken, nor have woodwork
or other parts of the structures which are covered, unexposed or inaccessible, been
inspected. Therefore, we are unable to report that the properties are structurally sound or
free from any defects. For the purposes of the valuation we have reflected the costs
assessed by Drees & Sommer (Technical Due Diligence Report dated 1 September 2011).
We have made the Assumption that the properties are free from any rot, infestation, adverse
toxic chemical treatments, and structural or design defects other than such as may have
been mentioned in the body of our Valuation Report and the appendices.
We have not arranged for investigations to be made to determine whether high alumina
cement concrete, calcium chloride additive or any other deleterious materials have been
used in the construction or any alterations, and therefore we cannot confirm that the
properties are free from risk in this regard. For the purposes of this valuation, we have made
the Assumption that any such investigation would not reveal the presence of such materials
in any adverse condition.
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No mining, geological or other investigations have been undertaken to certify that the sites
are free from any defect as to foundations. In this respect we would like to emphasise that a
number of properties suffer from the past and present mining activities within the Rhine–Ruhr
area. Usual building damage are inclined buildings and settlement cracks. Although being
reflected in the capex schedule prepared by Drees & Sommer, we are of the opinion that the
costs reflected for the remedy of the existing damage are assessed on the lower end of the
range. In this respect, we strongly advise to undertake a survey by an expert for mining
activities and mining damage to fully assess the related risks and costs.
We have made the Assumption that the load bearing qualities of the sites of the properties
are sufficient to support the buildings constructed thereon. We have also made the
Assumption that there are no abnormal ground conditions, nor archaeological remains
present, which might adversely affect the present or future occupation, development or value
of any of the properties.
No tests have been carried out as to electrical, electronic, heating, plant and machinery,
equipment or any other services nor have the drains been tested. However, we have made
the Assumption that all services are functioning satisfactorily.
No allowance has been made in this valuation for any items of plant or machinery not
forming part of the service installations of the buildings. We have specifically excluded all
items of plant, machinery and equipment installed wholly or primarily in connection with the
occupant‟s businesses.
We have also excluded furniture and furnishings, fixtures, fittings, vehicles, stock and loose
tools. Further, no account has been taken in our valuations of any goodwill that may arise
from the present occupation of any of the properties. Refurbishment costs related to the
German Energy Conservation Ordinance (EnEV) have been reflected in accordance with the
Technical Due Diligence Report prepared by Drees & Sommer. If not stated otherwise in the
Template Reports, we have made the Assumption that there are no further significant cost
implications for the Portfolio arising from the introduction of the EU building „Energy Pass‟.
It is a condition of DTZ Zadelhoff Tie Leung GmbH or any related company, or any qualified
employee, providing advice and opinions as to value, that the client and/or third parties
(whether notified to us or not) accept that the Valuation Report in no way relates to, or gives
warranties as to, the condition of the structure, foundations, soil and services.
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10.4
Environmental Matters / Contamination
We have not made enquiries regarding the Portfolio in order to, as far as reasonably
possible, establish the potential existence of contamination arising from previous or present
uses of the sites and any adjoining sites. According to the information provided in the
Technical Due Diligence prepared by Drees & Sommer, parts of the following property may
be potentially contaminated:

Dortmund II:
Vogelpothsweg 25, Oberbank 5-7 uneven
Our inspections have provided no visible evidence that there is a significant risk of
contamination in respect to the inspected properties. However, we would like to emphasise
that most of the buildings were constructed between 1945 and 1970 and hazardous building
materials such as asbestos were widely used in the construction of buildings. For the
purposes of the valuation we have reflected the related refurbishment costs assessed by
Drees & Sommer. For further details please also refer to the Technical Due Diligence
prepared by Drees & Sommer.
Other than as referred to above, we have not made any investigations into past or present
uses, either of the properties or any neighbouring land, to establish whether there is any
contamination or potential for contamination of the subject properties. Commensurate with
our Assumptions set out above we have made no allowance in these valuations for any
effect in respect of actual or potential contamination of land or buildings.
A purchaser in the market might, in practice, undertake further investigations than those
undertaken by us. If it is subsequently established that additional contamination exists at any
of the properties or on any neighbouring land or that any of the premises have been, or are
being, put to any contaminative use then this might reduce the values now reported. You are
advised to ensure your professional advisors take up the usual enquiries on your behalf, in
respect of possible contamination, before entering a financial commitment concerning the
properties.
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10.5
Areas
We have not measured the properties in the Portfolio. Hausverwaltung Matthias Rothe e.K.
acting as asset manager has provided us with information on the lettable areas of the
properties that are subject to our valuation. We have relied on these areas and have not
checked them on site by a quantity survey. We have not been provided with any floor plans
or “as-built” drawings of the properties. We have made the Assumption that the lettable areas
supplied to us have been calculated in accordance with local market practice (§ 42 II. BV/
WoFlV as at 1 January 2004). To verify the completeness and plausibility of the floor areas,
we double-checked a sample of the rental areas in the lease overview against the areas
stated in other relevant documents.
Should the lettable areas be measured and result in a materially different area, or mix of area
types, this will affect the Portfolio value. We have been provided neither with building
consents nor any building descriptions of the properties.
10.6
Statutory Requirements and Planning
We have obtained the planning status from the Technical Due Diligence prepared by Drees
& Sommer. Furthermore, we have made verbal enquiries at the relevant planning authorities
for all property clusters of the Portfolio. We have not made any enquiries as to the possibility
of highway proposals, comprehensive development schemes and other ancillary planning
matters that could affect the property value. We have made the Assumption that there are no
such proposals that will have an adverse effect on value.
Moreover, we have made verbal enquiries at the relevant authorities regarding the listing
status for all property clusters of the Portfolio and included the findings in our valuation. We
have made the Assumption that the buildings have been constructed in full compliance with
valid town planning and building regulations approvals, that, where necessary, they have the
benefit of current fire certificates, and that the properties are not subject to any outstanding
statutory notices as to their construction, use or occupation.
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10.7
Leasing and Tenant Structure
For the valuation we have relied on tenant data included in the database provided to us by
Hausverwaltung Matthias Rothe e.K. The following properties are subject to social housing
rent restrictions:
Cluster
City
Hattingen II
Hattingen
Dortmund II
Dortmund
Dortmund VI
Dortmund
Gladbeck II
Gladbeck
Address
An der Hunsebeck 27, Heinrich-Zille-Str. 4, 6,
Käthe-Kollwitz-Str. 1a, 3a
Kirchlinder Str.4-8 (even), Zollernstr. 1A
Bohnekampstr. 29-65 (uneven), Knappenstr. 1,
Eisenstr. 2
Expiry date
2030-2064
2029-2081
2080
31.08.2013
In this respect we have made the Assumption that properties subject to long-term social
housing programs (Hattingen II, Dortmund II, Dortmund VI) will not profit from increasing
Market Rents as achievable rents and potential tenants are determined by the local
authorities.
With regard to the lease contracts, we have assumed that they are in proper adequate form
with no onerous clauses or requirements. We have assumed that both the landlord and the
tenants have performed their respective covenants under the leases, to include those
relating to the repair of the buildings, and we have not been informed of the contrary. We
have assumed that the operating costs are recoverable from the tenant according to BetrKV
(“Betriebskostenverordnung”).
We would like to emphasise that the rent roll provided includes several tenancies, where no
rental payment is stated. We have requested but not yet received any information regarding
these tenancies. For the purposes of the valuation we have assumed that these units are
vacant.
We have also assumed that the current use of the properties is in accordance with the
leases, that there are no tenancies or sub-tenancies for any parts of any of the buildings
other than those we have mentioned in our Template Reports in the Appendix and that there
are no unusual restrictions on assignment or sub-letting of the properties for residential
purposes.
We have not undertaken investigations into the financial strengths of the tenants. Unless we
have become aware by general knowledge or have been specifically advised to the contrary
we have made the Assumption that the tenants are financially in a position to meet their
obligations. Unless otherwise advised we have also made the Assumption that there are no
material arrears of rent or service charges, breaches of covenants, current or anticipated
tenant disputes.
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However, our valuations reflect the type of tenants actually in occupation or responsible for
meeting lease commitments, or likely to be in occupation, and the market‟s general
perception of their creditworthiness.
We have also made the Assumption that wherever rent reviews or lease renewals are
pending or impending, with anticipated reversionary increases, all notices have been served
validly within the appropriate time limits.
10.8
Residential Leases
Termination: Tenants in Germany have strong statutory protection, in particular regarding
lease termination and increase of rents. Since residential tenancies are typically concluded
for an indefinite period, it is very difficult for the landlord to terminate the contract unless
there has been a breach of contract or the landlord can provide a valid reason (e.g.
redevelopment or owner-occupation).
Maintenance Costs: Costs for maintenance and repair are generally borne by the landlord
with the exception of smaller repairs (“kleine Instandhaltungsmaßnahmen”) and decorative
repairs (“Schönheitsreparaturen”):
Smaller repairs include the repair of technical facilities, water and gas facilities,
heating and stoves as well as windows and door locks. In this respect there are strict
limits on the amount that can be passed on to the tenant, unless damage has been
caused by the tenant.
Decorative repairs include any kind of painting and redecoration within the apartment.
In the absence of an agreement to the contrary, the tenant is not responsible for smaller or
decorative repairs. It is the landlord's obligation to maintain the premises in an appropriate
condition. However, most landlords insist to have a clause put into the rental agreement that
stipulates that the tenant has to carry out decorative repairs during the lease term. We would
like to point out that, with regard to the points stated above, a lot of renovation clauses stated
in older residential leases have become invalid.
Rental Level: Residential rents in Germany are heavily influenced by the respective rentindex (“Mietspiegel”). Under Federal Law (Article 558 Bürgerliches Gesetzbuch or BGB), the
“Mietspiegel” effectively sets rental limits by district in line with the average rent (“ortsübliche
Vergleichsmiete”) within each district for units of comparable type, location, size, fit-outquality and age. The initial rent is agreed by negotiation between landlord and tenant. If the
tenancy involves a building already included in the “Mietspiegel”, then the rent must not
exceed the local comparable rent.
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Rent increases may only be made under the following circumstances:

If the rent has remained unchanged for 15 months, an increase up to the limit allowed by
the “Mietspiegel” is possible. The rent increase is limited to a maximum of 20%
(“Kappungsgrenze”) within a three-year period;

If the landlord has improved the quality of the property by upgrading facilities or
refurbishment, he may raise the rents by up to 11% (besides the 20% referred to above);

Via inflation-linked increases (“Indexmieten”), which need to be agreed at the start of the
tenancy agreement (not common practice);

Via progressive increases (step rents), which need to be agreed at the start of the
tenancy agreement (not common practice).
The only tenancies that are not included in the “Mietspiegel” are those concluded in new
developments completed after the current “Mietspiegel” has been established. In preparing a
“Mietspiegel” (they are prepared every 2 years), only rents which have been agreed on new
tenancies or revised on existing tenancies after the publication of the previous “Mietspiegel”
(i.e. effectively the „open-market‟ rents), as well as all step rents and index rents, are
included in calculating the local comparable rents. The calculation takes account of any
change in rent over the preceding four-year period. In practice this means that landlords
affected by the “Mietspiegel” can benefit from the uplift in Market Rents, which are then
incorporated into each new “Mietspiegel”.
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11
Information provided and Plausibility Check
Our valuation is based on the information provided by Elad Germany GmbH and
Hausverwaltung Matthias Rothe e.K. We have assumed that the information supplied to us in
respect of the properties is both complete and correct. It follows that we have assumed that
the details of all matters likely to affect value within the client‟s collective knowledge have
been made available to us and that the information is up to date.
We have based the valuation on the following sources of information:

Rent roll as at 22 August 2011, received on 7 September 2011

Technical Due Diligence and Appendices prepared by Drees & Sommer dated 1
September 2011, received on 6 September 2011

Executive Summary of a Legal Due Diligence prepared by CMS Hasche Sigle undated,
received 9 September 2011

Copies of the relevant cadastral plans, received on 6 September 2011

Information regarding the subsidy status, received on 13 September 2011
We have undertaken several plausibility checks for the rent roll provided. The rent roll
provided was checked for obvious errors and logical inconsistencies to avoid using wrong
and/or incomplete data for the valuation, particularly check of consistence and completeness
of the database and check of appropriate size per unit type.
Incorrect data was checked, and the client was asked for verification of the data. In a few
cases we have made plausible adjustments in accordance with the client. In this respect, we
would like to point out that there are several pending requests, which could have an impact
on the value reported.
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12
Portfolio Analysis
12.1
Portfolio Overview
All properties of the Terra Heimbau Portfolio are located in the Rhine-Ruhr area within the
federal state North Rhine-Westphalia. The Portfolio comprises eight property clusters in
Dortmund, three property clusters in Hattingen as well as two property clusters in
Gelsenkirchen, Gladbeck and Castrop-Rauxel, respectively. The remaining three property
clusters are in Dusseldorf, Herne and Marl. The map below shows the locations of the
Portfolio properties:
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The Portfolio comprises the following 20 property clusters:
ID
Cluster
City
Address
1
Dusseldorf
Dusseldorf
2
Hattingen I
Hattingen
3
Hattingen II
Hattingen
4
Hattingen III
Hattingen
Hasselsstr. 16, 18, 20, 22
Käthe-Kollwitz-Str. 1, 3, 5, 15
6, Käthe-Kollwitz-Str. 1a, 3a
5
Herne
Herne
6
Gladbeck I
Gladbeck
7
Gladbeck II
Gladbeck
8
Gelsenkirchen I
Gelsenkirchen
9
Gelsenkirchen II
Gelsenkirchen
10
Marl
Marl
11
Castrop-Rauxel I
Castrop-Rauxel
12
Castrop-Rauxel II
Castrop-Rauxel
13
Dortmund I
Dortmund
Almastr. 1-25 uneven, Horsterstr. 241-251
(uneven), 241A, 243A, 245 A, B, Marienstr.
28-42 (even)
Bohnekampstr. 29-65 (uneven),
Knappenstr. 1, Eisenstr. 2
Hultschiner Str. 2-8 (even), 1, 3,
Reichenberger Str.14, 17-39 (uneven),
19a, 37a, Schönauer Str. 1-8, Trautenauer
Str. 1, 3, 5, 7
Laurentiusstr. 9-23 (uneven), 11A, B, 15AC, Sandstr. 45-55 (uneven)
Ostpreußenstr. 1-8, 10-36 (even),
Pommernstr. 2-4
52-54 (even)
56-60 (even)
Brüchtenweg 23
14
Dortmund II
Dortmund
15
Dortmund III
Dortmund
Echeloh 4-32 (even)
16
Dortmund IV
Dortmund
17
Dortmund V
Dortmund
18
Dortmund VI
Dortmund
19
Dortmund VII
Dortmund
20
Dortmund VIII
Dortmund
Kosselstr. 46-48 (even), Jungferntalstr. 7181 (uneven), 98-100 (even), 85-113
(uneven), 76-94 (even)
Erpinghofstr. 24-34 (even), 34A, 48-58
(even), 61-67 (uneven), Rupinghofstr. 1-23
(uneven), 2-24 (even), Travemannstr. 5-9
(uneven), Welkener Str. 25-31 (uneven)
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12.2
Lettable Areas
According to the tenancy schedule the total lettable area of the 20 property clusters amounts
to 128,547 sq m in North Rhine-Westphalia. With 54,400 sq m, the largest agglomeration is
in Dortmund.
The following table shows the lettable area per location:
Location
Federal state
Lettable Area
Residential
Commercial
Dortmund
North RhineWestphalia
54,400 sq m
53,482 sq m
918 sq m
Hattingen
19,815 sq m
19,595 sq m
220 sq m
Gelsenkirchen
16,259 sq m
16,259 sq m
0 sq m
Gladbeck
13,577 sq m
13,577 sq m
0 sq m
Other
24,497 sq m
24,497 sq m
0 sq m
12.3
Type of Properties
The majority of the properties have been constructed between 1945 and 1970 and are
located in primarily fair residential areas. The buildings are residential or mixed used with a
small percentage of commercial areas. Most of the properties are in partly refurbished
condition and in fairly poor condition, a minor share has recently been refurbished or is
completely unrefurbished. The chart below shows the construction dates of the properties in
relation to the lettable area:
Year of construction
11%
4%
< 1945
1946-1970
> 1970
85%
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None of the property clusters are listed and none of the property clusters are subject to
preservation statutes (“Erhaltungssatzung”). Furthermore, the Portfolio comprises a minor
share of leasehold properties located in Gladbeck and Marl. This circumstance was reflected
in the discount rate, however, we would like to point out that this has only a negligible
influence on value. The following chart demonstrates the share of leasehold properties in
relation to the lettable area:
Title
12%
Freehold
Leasehold
88%
12.4
Residential Unit Sizes
The average residential unit size in the Portfolio is approximately 60 sq m, which broadly
corresponds to a two-bedroom apartment with kitchen, bathroom and living room. This size is
slightly below the common unit size in Germany.
12.5
Vacancy Rates
The Portfolio has 26,551 sq m of vacant space, which equates to an overall vacancy rate of
21%. The property clusters showing the highest vacancy rates are „Dortmund V‟ (55%),
„Castrop-Rauxel I‟ (35%) and „Dortmund III‟ (34%).
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12.6
Rental Levels
The total income of the Portfolio is currently at €5,559,551 per annum. The table below
shows the properties with the highest income share:
City
Dortmund VII
Dortmund IV
Hattingen I
Marl
Gelsenkirchen I
Current rent p.a.
€552,123
€508,180
€494,014
€462,362
€447,055
In % of portfolio income
9.9%
9.1%
8.9%
8.3%
8.0%
The Portfolio currently generates an average residential rent of €4.44 per sq m per month
and an average commercial rent of €5.66 per sq m per month.
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13
Residential 2011 Market Overview
13.1
Residential Stock
According to current information provided by the Federal Statistical Office, at the end of 2009
around 40,184,000 residential units with approx. 3,479 million sq m were registered in
Germany. The average residential unit size amounts to 86.6 sq m. Regarding the ownership
structure, 40% are owned by owner occupiers, 37% by smaller companies and only 23% by
professional suppliers like public or private housing companies or associations.
Ownership structure of the residential unit stock in Germany
23%
40%
Owner-Occupants
Smaller Companies
Professional Providers
37%
Source: Bundesvereinigung der Spitzenverbände der Immobilienwirtschaft, Statistisches Bundesamt
Owner occupiers and smaller companies, for whom letting is not the main business, make up
a significant proportion, leading to market fragmentation.
Compared to other real estate sectors, the residential market is characterised by stable
development of vacancy rates over the last years. According to the current Techemempirica-vacancy index 2009, the vacancy rate for residential units in residential buildings
with three or more apartments stood at 3.7%, representing no increase compared to 2008. In
East Germany (including Berlin) it decreased from 8.5% in 2001 to 5.8% in 2009, largely due
to demolition of oversupply. In West Germany the vacancy rate increased slightly from 2.1%
to 2.9% over the same period. The development is shown in the following chart.
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Vacancy rate (multi-family houses) 2001-2009
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
2001
2002
2003
2004
Vacancy Rate East
2005
2006
2007
Vacancy Rate West
2008
2009
Total
Source: Techem / empirica
The federal states of Hamburg (1.4%), Bavaria (2.1%) and Baden-Wuerttemberg (2.2%)
exhibit the lowest vacancy rates, while Saxony (7.7%) and Saxony-Anhalt (8.0%) have the
highest vacancy rates. Berlin has an average vacancy rate of 3.8%.
Vacancy rates (apartment buildings) federal states
6,000,000
18%
16%
5,000,000
14%
4,000,000
12%
10%
3,000,000
8%
2,000,000
6%
4%
1,000,000
2%
0
0%
Occupied Units
Vacant Units
Vacancy Rate
Source: Techem / empirica
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The forecast of housing demand by the Bundesinstitut für Bau-, Stadt- und Raumforschung
implies that by the year 2025 vacancy rates will rise, particularly in apartment buildings.
According to current information provided by the Federal Statistical Office, between January
and March 2011 building permissions for 5,972,000 sq m residential area were chartered,
meaning an increase of approx. 5% compared to Q4 2010 and an increase of approx. 28%
compared to Q1 2010. Hence, the trend initiated at the end of 2009 continued.
13.2
Residential Demand
Transaction Volume:
According to BulwienGesa in 2010, 129 residential portfolios with a total volume of approx.
69,400 units were sold. The total investment volume is estimated to have been approx.
€3.67billion, representing an increase of approx. 15% in comparison to 2009. After a slump
in activities in the third quarter of 2010, the number of transactions and the investment
volume has been constantly rising to approx. 29,100 units and approx. €1,340,000,000,
meaning the highest levels in the last two years. Hence, demand has recovered
extraordinarily fast and rapidly. However, in Q2 2011 another large decrease can be
observed.
The following chart shows the transaction volume and the number of traded units per quarter
since Q2 2009:
Transaction volume of residential portfolios and number of traded units
€ 1,600,000,000
35,000 units
€ 1,400,000,000
30,000 units
€ 1,200,000,000
25,000 units
€ 1,000,000,000
20,000 units
€ 800,000,000
15,000 units
€ 600,000,000
€ 400,000,000
10,000 units
€ 200,000,000
5,000 units
€0
0 units
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Transaction volume (€)
Residential units
Source: BulwienGesa
In comparison to Q2 2010, the average sale price per sq m increased from €740 to €834,
reaching the second highest level in the last two years. In Q2 2011 the average number of
units per deal has been significantly lower as in Q1 (331 units compared to 571 units).
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The following data table shows the major transactions in Q2 2011:
Date
Purchaser
Vendor
City/Region
Number of
units (total)
Purchase
price in €
Lettable area
in
sq m
(estimated)
Price in € per sq
m
(estimated)
Jun-11
Akelius GmbH
Orco Property Group
Hamburg
n/a
n/a
6,762
n/a
Jun-11
Closed property
funds and private
investors
Schroders German
Residential Fund
(SGRF)
Reinbek,
Aschaffenburg
254
19,000,000
n/a
n/a
Financial investor
Berlin
1,104
27,000,000
63,200
427
FF RE
May-11 Immobilienverwaltun
g AG
May-11
Foncière
Développement
Logements (FDL)
Private investor
Berlin
716
49,994,224
50,296
994
May-11
Predominant
institutional
investors
Corpus Sireo Asset
Management
Residential GmbH
Hamburg, Berlin,
Wuppertal,
Düsseldorf, Hilden,
Langenfeld, Köln,
4,926
n/a
n/a
n/a
May-11
Conwert Immobilien
Invest SE
RREEF, Prelios
Berlin
1,849
n/a
125,805
n/a
May-11
Industria
Allianz Group
Hamburg,
Hannover, Leipzig,
Essen, Bonn,
Heidelberg,
767
65,000,000
n/a
n/a
Apr-11
TAG Immobilien
Peakside Real Estate
Fund I
Berlin
612
n/a
43,500
n/a
Apr-11
Two german
institutional
investors
Foncière
Développement
Logements (FDL)
Essen, Düsseldorf
627
41,800,000
n/a
n/a
Apr-11
Akelius GmbH
MEAG
Köln, Bonn
274
n/a
n/a
n/a
Apr-11
Foncière
Développement
Logements (FDL)
n/a
Berlin
1,053
83,800,000
80,000
1,015
Apr-11
Brack Capital
Leipziger Wohnungsund Baugesellschaft
(LWB)
Leipzig
2,596
72,800,000
n/a
n/a
Oldenburg
912
n/a
53,000
n/a
Apr-11
GSG Oldenburg BauBaum
und
Unternehmensgruppe
Wohngesellschaft
Apr-11
GWG Gesellschaft
für Wohnungs- und
Gewerbebau BW
AG
HDI-Gerling
Lebensversicherung
AG
Hamburg
252
n/a
11,650
n/a
Mar-11
Akelius
n/a
Berlin
300
n/a
n/a
n/a
Salzgitter
200
n/a
14,000
n/a
Region Rhein-Ruhr
2,100
85,000,000
n/a
n/a
Mar-11
Mar-11
Unknown house- Investment trust from
building association
Berlin
Corestate Capital
n/a
Source: DTZ Research
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According to the estate agency network DIP, a total of €21.8 billion was invested in
residential accommodation in 2010. In comparison to 2009 this shows a rise of 4%. A further
increase is anticipated in 2011.
According to Engel & Völkers, approximately €14 billion worth of sales contracts were signed
in 2010 in the segment of mixed-use buildings, an increase of 8% compared to 2009. No
further increase is expected in 2011.
Forecast of Demand:
According to the population projection of the Federal Statistical Office, by the year 2025 a
decrease of population from approximately 82 to 79 million is expected. But this process will
go along with domestic migration, mostly of young people, as already can be observed,
especially towards conurbations with attractive employment opportunities. This will cause
further increases in population and further surplus demand in growth regions. On the losing
side in the competition for population there will be many regions in former East Germany.
According to a scenario calculation („Variant 1-W1‟ - lower limit of the “middle” population) of
the population projection of the Federal Statistical Office, the population decline in the
eastern federal states amounts to 8.5% by 2025. The development of less economically
powerful regions in former West Germany will be similar, too. But according to Deutsche
Bank Research regions with a high degree of uncertainty in population and economic
development will gain some interest from opportunistic investors.
Overall demand for residential accommodation throughout Germany is expected to grow
over the next ten years, despite of the declining population. The key reasons are the change
in lifestyle causing growth in the number of single-person households, the reduction of the
average size of households and the replacement requirements due to aging of the estates.
The Federal Statistical Office predicts that by the year 2025 the number of households will
rise by 0.45 million to 40.49 million. Demand will increase for both affordable housing and
high-quality accommodation, particularly in city centre locations, due to the increasing spread
of household income.
According to two scenarios in the forecast of residential unit demand by the Bundesinstitut
für Bau-, Stadt- und Raumforschung, housing units in Germany will need to increase by 2025
at an average of 183,000 (lower variant) or 256,000 (upper variant) per year. Thereof,
154,000 alternatively 215,000 units account to West Germany and 29,000 alternatively
41,000 to East Germany. In this respect, the increasing demand will come from owner
occupiers (increase by 15.5%) and not from new tenants (decline by 4.9%). Especially
demand for rented flats is expected to decrease by an average of 0.5% per year.
Nevertheless a relatively high investment potential for new apartment buildings (ownership
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and tenancy) is seen in Berlin, the Rhein-Main-Taunus district and the southern regions of
Bavaria and Baden-Wuerttemberg.
13.3
Market Prices
Letting Market:
According to the BulwienGesa Real Estate Index 1975-2010, average residential rents in
2010 for first occupation throughout Germany rose by 2.5%. This figure was also close to the
average rents for re-letting, which increased by 2.3%.
This increase developed differently across the regional markets. The increase across the top
eight markets in Germany between Q1 2010 and Q1 2011 can be seen in the following chart
based on the current survey of Empirica concerning the asking rents for residential units
between 60-80 sq m that are in good condition and constructed after 2000.
Development of average rents of apartments (60 to 80 sq m with good quality,
constructed after 2000) between Q1 2010 and Q1 2011
€ 14.00
€ 12.00
€ 10.00
€ 8.00
€ 6.00
€ 4.00
€ 2.00
€ 0.00
Q1 2010
Q1 2011
Source: empirica
The highest increase in rent, 12%, was seen in Berlin, with a rent of €8.64 per sq m per
month. The average rent per sq m per month in Dusseldorf and Stuttgart increased by 5%. In
Hamburg and Munich there was an increase of 4% per month. In Frankfurt/Main and
Cologne the average asking rent increased by 2.9% and 2.3%, respectively. The average
asking rent in Leipzig increased by 1%.
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Compared to Q4 2010 the average rents rose by 1% in Munich, Stuttgart, Berlin and Leipzig
and by 0.3% in Frankfurt/Main. In Dusseldorf they remained stable and in Hamburg and
Cologne they decreased by 1% and 1.3%, respectively. The highest residential rents are
currently achieved in Munich (€12.65 per sq m per month), Frankfurt (€11.64 per sq m per
month) and Hamburg (€11.23 per sq m per month). The towns/cities of Gera (€5.07 per sq m
per month), Pirmasens (€5.03 per sq m per month) and Hof (€4.80 per sq m per month) have
the lowest achievable rents.
But according to the HSH Nordbank, compared to Q1 2011, in Q2 2011 only a very slight
increase of 0.25% has been observed for all cities in Germany overall. However, on the basis
of continuing pressure on the housing markets in the conurbations, for example caused by
the increasing migration from the eastern and southern countries of the EU and the already
mentioned internal migration, a sharper increase is suspected for the next time.
Investment Market:
As well as the letting market, the investment market has also been somewhat volatile in the
past, especially in comparison to other European countries. This is due to the previously
mentioned ownership structure of the market. After the financial crisis the multipliers and
average sales prices for residential accommodation recovered on a lower level. They
remained on a constant level in 2009 and 2010 as shown below.
Average sale prices and multipliers 2005 - 2010
€ 900
18.0
€ 800
16.0
€ 700
14.0
€ 600
12.0
€ 500
10.0
€ 400
8.0
€ 300
6.0
€ 200
4.0
€ 100
2.0
€0
0.0
2005
2006
2007
2008
Average sale price (€ per sq m)
2009
2010
Multipliers
Source: DTZ Research
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Multipliers show a development ranging from 7-to 10-times for opportunistic portfolios and up
to 20-times for large newly built premises or residential developments. The average multiplier
in 2010 remained stable at approximately 12.7%. Multipliers in prosperous local markets
have remained stable or have (even) slightly increased, whereas markets which are affected
by decreasing population are characterised by falling multipliers.
According to a survey conducted by the “Deutsche Städtetag”, in which a total of 56 cities
were analysed, the purchase prices for residential accommodation increased in 60% of the
cities. A decline was only noticed in every tenth city. High growth of more than 10% was
seen in the segment of undeveloped plots which were ready for development as apartment
houses in Hamburg, Munich and Frankfurt. In 2011 only a slight decrease in prices is
expected in certain areas, but the overall majority is expected to increase. The development
of prices and sales is expected to continue.
According to Engel & Völkers, the yields in the segment of residential buildings and mixeduse buildings with slight commercial percentage fluctuated in 2010 depending on the
location: to below 5% in Munich, up to 8% in Hamburg and Berlin and more than 10% in
Duisburg and Brunswick. It is anticipated that purchase prices will increase in 2011.
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14
Valuation Methodology
14.1
Overall Approach and Analysis
The Portfolio has been valued on individual cluster (economic unit) level. We have estimated
the Market Value by using the Discounted Cash Flow (DCF) approach over a ten-year
period. For properties containing undeveloped sites we have assessed the land value on the
basis of the guidance land value. Each property has been valued individually with the
Portfolio Market Value being the sum of the individual cluster values.
Our valuation is based on the information provided and on the Assumptions as described in
this Report and Appendices.
14.2
General DCF Assumptions
In our Discounted Cash Flow calculations, we have made the following general Assumptions
and considerations:
The valuation is undertaken asset by asset; the total value shows the aggregation of
the single asset values.
The valuation date is 1 September 2011.
The cut-off date is 22 August 2011.
The Market Rent was estimated on the basis of our market research as well as on the
basis of recent lettings. We have adopted the Market Rent on a single property level
depending on the market situation as well as on the condition of the building.
We have reflected an average lease term of 10 years for the residential leases.
The cost and income inflation was assumed at 1.7% per annum (based on statistic
data).
Actual rents were adjusted to market level by linear growth over 8 years (periods 1 - 8)
and the Market Rent was adapted to inflation on a yearly basis.
The capital expenditure has been adopted in accordance with the information provided
in the Technical Due Diligence prepared by Drees & Sommer.
The rental growth is based on the DTZ Assumption that Market Rents for the individual
properties will be achieved in year 8.
We have assumed that vacant units will be relet within three years. Where we have
assumed permanent vacancy, the vacancy rate will be reduced to this level within three
years. We have assumed a constant adjustment from year 1 to year 3.
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We have reflected a turnover vacancy of 2.5 - 7.5%.
Properties subject to long-term social housing programs will not profit from increasing
Market Rents as achievable rents and potential tenants are determined by the local
authorities.
14.3
Revenues
14.3.1 Net Rental Income
The Portfolio has a current income of €5,559,551 per annum (including residential,
commercial and all other revenues) as at the date of valuation. The assumed rental income
in year 1 totals €5,705,382 per annum. The net operating income, after deducting nonrecoverable costs from the year 1 income is €3,315,168 per annum.
14.3.2 Market Rents
Market Rents were assessed on individual property level based on a market and location
evaluation by research and the results of our inspections. In particular Market Rents were
estimated in relation to the respective year of construction, the size of the properties, the
condition of the properties and the location and situation of the properties. The estimation of
the Market Rents is essential for calculating the Market Value.
14.3.3 Rental Growth
According to the rent roll provided, the overall current average rent for residential and
commercial units excluding parking and other is approximately €4.44 per sq m per month.
Based on our market research as well as on information regarding recent lettings provided by
the client, we are of the opinion that an overall estimated Market Rent for residential and
commercial units for the Portfolios is approximately €4.60 per sq m per month (3.6% above
the current income per sq m).
Based on an assumed average lease term of 10 years we have reflected a tenant fluctuation
of 10% per annum for the predominantly residential buildings. We have increased the current
income reflecting that the rental growth is capped by the respective Market Rent (real):
For those properties which are let at rents below market level („under-rented‟) rental
growth is based on the Assumption that the Market Rents for the individual properties
will be achieved in year 10. The period corresponds to the assumed average lease
term.
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Valuation
For
those
properties
which
are
let
at
rents
above
market
level
(„over-rented‟), the decrease in rent has been spread evenly over the period of the
cash flow, achieving the estimated Market Rent in year 10.
Our estimated Market Rent reflects the current market situation as well as capital
expenditure and related renovation works.
14.4
Cost Assessment
Within each cash flow we have calculated the net operating income by deducting the nonrecoverable costs from the gross income. These costs are in line with other similar residential
portfolios that have been managed appropriately.
14.4.1 Non-Recoverable Costs
We have assumed ongoing maintenance costs of 5% of the potential annual income. We
have adopted additional costs for a sinking fund based on an individual cost assessment
according to the “II Berechnungsverordnung” and adjustments according to the respective
refurbishment status of the properties.
Furthermore, management fees were calculated with €220 per unit, following the German
guideline “II. Berechnungsverordnung”. Regarding credit and collection loss we have
assumed an overall average of 2% for the Portfolio and have reflected this for the individual
properties in the cash flow.
We have not been provided with any information on additional non-recoverable costs. We
have made our own estimate regarding additional non-recoverable costs, vacancy costs as
well as renovation costs for re-letting. Our own cost Assumptions are in line with similar
residential portfolios that have been managed appropriately.
Vacancy costs are assumed at individual property level at an overall average of €1.00 per
sq m per vacant month. Additionally, we have assumed renovation costs for re-letting of
between €25 and 75 per sq m considering the inspected or assumed condition of the units.
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Valuation
14.4.2 Capital Expenditure
We have reflected capital expenditure as stated in the Technical Due Diligence prepared by
Drees & Sommer. The total amount is €6,675,400 and was fully reflected in our cash flow in
accordance to the timeline proposed by Drees & Sommer. For further information please
refer to the Property Templates in the Appendix. The following table shows the capital
expenditure included in our Valuation:
Capital
expenditure
Cluster
Address
Dusseldorf
Hasselsstr. 16, 18, 20, 22
An der Hunsebeck 25, Heinrich-Zille-Str. 2, Käthe-Kollwitz-Str. 1,
3, 5, 15
An der Hunsebeck 27, Heinrich-Zille-Str. 4, 6, Käthe-Kollwitz-Str.
1a, 3a
Hattingen I
Hattingen II
Hattingen III
Herne
Almastr. 1-25 uneven, Horsterstr. 241-251 (uneven), 241A, 243A,
Gladbeck I
245 A, B, Marienstr. 28-42 (even)
Gladbeck II
Bohnekampstr. 29-65 (uneven), Knappenstr. 1, Eisenstr. 2
Hultschiner Str. 2-8 (even), 1, 3, Reichenberger Str.14, 17-39
Gelsenkirchen I (uneven), 19a, 37a, Schönauer Str. 1-8, Trautenauer Str. 1, 3, 5,
7
Gelsenkirchen Laurentiusstr. 9-23 (uneven), 11A, B, 15A-C, Sandstr. 45-55
II
(uneven)
Marl
Ostpreußenstr. 1-8, 10-36 (even), Pommernstr. 2-4
Castrop-Rauxel
Briloner Str. 32-34 (even), 42-44 (even), 52-54 (even)
I
Castrop-Rauxel
Briloner Str. 36-40 (even), 46-50 (even), 56-60 (even)
II
Dortmund I
Brüchtenweg 23
€11,800
€122,980
€100,620
€457,800
€129,800
€1,891,100
€57,400
€88,600
€197,750
€1,324,200
€81,545
€91,955
€76,500
€528,850
Dortmund II
Dortmund III
Echeloh 4-32 (even)
Dortmund IV
€192,400
Dortmund V
€45,500
Dortmund VI
Kosselstr. 46-48 (even), Jungferntalstr. 71-81 (uneven), 98-100
(even), 85-113 (uneven), 76-94 (even)
Erpinghofstr. 24-34 (even), 34A, 48-58 (even), 61-67 (uneven),
Rupinghofstr. 1-23 (uneven), 2-24 (even), Travemannstr. 5-9
(uneven), Welkener Str. 25-31 (uneven)
Dortmund VII
Dortmund VIII
€46,000
€204,700
€90,600
€935,300
Please note, that we have reflected the capital expenditure in line with the proposed
timetable stated in the Technical Due Diligence prepared by Drees & Sommer. In the respect
of the reflected amount, we have adopted the capital expenditure in accordance with the
following scheme:
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Valuation

Year 1:
Capital expenditure has fully been reflected as stated in the Technical
Due Diligence prepared by Drees & Sommer.

Year 2-10:
Capital expenditure has been offset against the sinking fund reserves.
In the event that capital expenditure exceeds the sinking fund reserves we have fully
reflected the surplus costs in our Valuation.
14.5
Exit Capitalisation Rate
We have reflected exit capitalisation rates at an individual property level. The exit yields are
based on the characteristics of the properties taking into consideration the capital
expenditure spent on the properties within the past years. Exit cap rates are applied to the
net operating income of the respective year. The exit yields applied reflect our opinion of the
location and situation, relation of market vs. current rents, the tenure of the assets, the age
and design of the assets and the local demand and occupier market. Where available, we
have also considered local market information such as block sales as a cross-reference for
the capital value per sq m.
For six of the properties a waiver for compensation of any damage resulting from mining
activities (“Bergschadensverzicht”) is entered in the land register. This means that the
respective landlord will bear all related refurbishment costs. For the purposes of the valuation
we reflected a risk premium in the discount and exit capitalisation rate of between 0.25 and
0.5% for the affected properties.
14.6
Discount Rate
The discount rate is based on the yields achievable within the current capital market with an
additional consideration of potential specific risk for real estate assets.
In order to set an appropriate discount rate we have had regard to long-term risk-free capital
investments (current yields on public loans with maturity in 9 to 10 years) and added an
individual risk premium reflecting i.e. location, situation, demographic characteristics, type of
property, year of construction and refurbishment status. The nominal discount rates vary
from 6.28 to 8.82%.
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Valuation
14.7
Saleability
Overall the properties are located in basic to fair residential locations. The properties are
typically in poor to fair condition and let slightly below market terms. Most properties have
adequately-sized lettable areas which, considering the tenant improvements assumed in this
valuation, allow re-letting at Market Rent level. However, we would like to emphasise that
most of the properties of the Portfolio face a considerable backlog of repair. Without
undertaking the necessary refurbishment works immediately, it is likely that rental income will
decrease significantly and the Market Rent reported will not be achieved.
Given the size, specification and location of the properties, individual properties will appeal to
investors with a regional focus.
15
Valuation Summary
We are of the opinion that the Market Value as at the valuation date 1 September 2011 of the
freehold interest in the Properties described in the Appendices, which comprise the Portfolio,
subject to the existing tenancies and subject to the Assumptions and comments in this
Valuation Report and the Appendices is as follows:
€62,380,000 (rounded)
(In words: sixty-two million, three hundred eighty thousand euro)
This equates to €485 per sq m lettable area and a multiplier of 11.22 on current rent.
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Valuation
16
Confidentiality and Disclosure
The contents of this Valuation Report and Appendices are confidential to Elad Germany
GmbH for the specific purpose to which they refer and are for their use only. Consequently,
and in accordance with current practice, no responsibility is accepted to any other party in
respect of the whole or any part of their contents. Before this Valuation Report, or any part
thereof, is reproduced or referred to, in any document, circular or statement, and before its
contents, or any part thereof, are disclosed orally or otherwise to a third party, the valuer‟s
written approval as to the form and context of such publication or disclosure must first be
obtained. For the avoidance of doubt such approval is required whether or not DTZ Zadelhoff
Tie Leung GmbH are referred to by name and whether or not the contents of our Valuation
Report are combined with others.
Yours faithfully
ppa. Martin Greiner MRICS
i. V. Stephan Griese MRICS
Associate Director, Valuation
FOR AND ON THE BEHALF OF
DTZ ZADELHOFF TIE LEUNG GMBH
Reviewed by
ppa. Klaus Dallafina MRICS, HypZert (F)
Senior Director
Head of Valuation Germany
20120522_Elad_F
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Valuation
Appendices
A
DTZ Confirmation of Instructions
B
Overview – Valuation Results
C
Property Templates
D
Sensitivity Analysis
E
Ap�praisersEducation
D
Standard Terms and Conditions
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Valuation
Appendix A
Elad Germany GmbH
18 May 2012
1063ELA
PRIVATE & CONFIDENTIAL
www.dtz.com
Terra Heimbau Portfolio | Elad Germany GmbH
Contents
Cover Letter
3
Scope of Instruction
4
Fee
7
Closing and Signature
8
Confirmation by Client
9
© DTZ
20120518 DTZ Offer_Terra
DTZ VAL
Page 2 of 9
Cover Letter
Erez Yaari
ELAD GERMANY GmbH
Email:
Phone:
Fax:
martin.greiner@dtz.com
+49 (0) 30 201705 404
+49 (0) 30 201705 499
Lietzenburger Str. 107
10707 Berlin
GERMANY
18 May 2012
Dear Mr Yaari
Amendment of the Terra Heimbau Portfolio 2011 Valuation Report
We have valued the Terra Heimbau Portfolio for ELAD GERMANY GmbH (ELAD) as at 1 September
2011 for acquisition purposes. DTZ Zadelhoff Tie Leung GmbH (DTZ) will be instructed by ELAD to
amend the respective report for publication in a stock exchange prospectus.
An update of the 2011 valuation results is not part of this instruction.
Bürohaus an der Alten Oper ·
Neue Mainzer Straße 69-75
60311 Frankfurt am Main
Telefon: +49 (0) 69 92100 0
Telefax: +49 (0) 69 92100 192
www.dtz.com
DTZ Valuation is certified according to DIN EN ISO 9001
Geschäftsführer: Rainer Hamacher Estanislau Torrent Janer
HRB 55026 Amtsgericht Frankfurt am Main Sitz der Gesellschaft: Frankfurt am Main USt-ID-Nr. DE 114232401 Berlin Düsseldorf Frankfurt Hamburg Leipzig München
Scope of Instruction
Offer no.
1063ELA
Date of offer
18 May 2012
Erez Yaari
ELAD GERMANY GmbH
Client
Lietzenburger Str. 107
10707 Berlin
GERMANY
Subject property
Number of properties
286 Properties in 19 property clusters
Location
Dortmund, Düsseldorf, Hattingen, Herne, Gladbeck, Gelsenkirchen, Marl,
Castrop-Rauxel
Use type
Residential
Interest to be valued
Freehold
Total area
Approximately 128,500 sq m
Date of valuation
01 September 2011
Purpose of valuation
We understand that our 2011 Valuation Report is to be published in a stock
exchange prospectus for a capital increase.
Scope of work
Market Value
Special Assumptions
An update of the 2011 valuation results is not part of this instruction.
The valuation is based on the data available as at 15 September 2011.
Methodology
We valuation methodology is DCF.
The valuation corresponds to aggregated individual values.
Services from third parties
n/a
Status of valuer
We confirm that we have undertaken the valuation acting as an External Valuer
qualified for the purposes of the valuation and have the necessary knowledge,
skills and understanding.
Regulation
The regulatory framework is the RICS Valuation Standards.
© DTZ
DTZ VAL
Page 4 of 9
Definition of value
RICS
The Market Value of the properties will be assessed based on the definitions in
accordance with RICS Valuation – Professional Standards, Global edition,
effective from 30 March 2012, issued by The Royal Institution of Chartered
Surveyors. In particular the Market Value will be assessed in accordance with
Valuation Standard (VS) 3.2. Under the provisions of this the term „Market Value'
means:
"The estimated amount for which a property should exchange on the date of
valuation between a willing buyer and a willing seller in an arm‟s-length
transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion."
Compliance with the standards may be subject to monitoring under the
institution‟s conduct and disciplinary regulations.
TEGoVA
The Market Value of the properties will be assessed based on the definition of
Market Value as defined by IVSC/TEGoVA (Blue Book, S 4.10 IVSC/TEGoVA)
Unless otherwise directed by legislation (see below), the definition of Market
Value under the IVSC/TEGoVA regulations is identical with the RICS definition
above.
ImmoWertV
The determination of the Market Value (Verkehrswert) is carried out on the basis
of the regulation “Verordnung über die Grundsätze für die Ermittlung der
Verkehrswerte von Grundstücken (Immobilienwertermittlungsverordnung –
ImmoWertV)“ dated 19 May 2010.
The Market Value is defined in § 194 BauGB as follows “The price which would
be achieved in an ordinary transaction as at the date of valuation, taking into
account existing legal circumstances and the characteristics, general condition
and location of the property or other object of assessment, without consideration
of extraordinary or personal circumstances.”
BelWertV
The determination of the Mortgage Lending Value is carried out on the basis of
the regulation of the German Ordinance on the Mortgage Lending Value
(BeIWertV) and according to the definition of § 16 German Pfandbrief Act
(Pfandbriefgesetz).
Definition of the Mortgage Lending Value:
(1) The value on which the lending is based (mortgage lending value) is the value
of the property which based on experience may throughout the life of the lending
be expected to be generated in the event of sale, unattached by temporary, e.g.
economically induced, fluctuations in value on the relevant property market and
excluding speculative elements.
(2) To determine the mortgage lending value, the future marketability of the
property is to be taken as a basis within the scope of a prudent valuation, by
taking into account long-term sustainable aspects of the property, the normal and
local market conditions, the current use and alternative appropriate uses of the
property.
With properties overseas § 25 BelWertV is additionally to be complied with, along
with the principles of the Association of German Pfandbrief Banks (vdp) for the
"determination of the Mortgage Lending Value according to BelWertV based on
foreign valuations" (most recent version of 01.02.2010, see appendix).
© DTZ
DTZ VAL
Page 5 of 9
Inspection
No further inspections.
Format
We understand that the preferred valuation format is a Valuation Report including
property templates on cluster level.
Number of copies
The Report will be prepared as PDF version and in English language.
Quality and source of
information
We will make the Assumption that the information supplied to us until September
2011 by the client or their respective advisors in respect of the portfolio is both
sufficient and correct.
Where we have received insufficient or no information on environmental,
technical, legal and statutory issues, we will make the Assumption that, if
investigations were made to an appropriate extent, nothing would be discovered
sufficient to affect value.
Conflict of interest
DTZ has valued the Terra Heimbau Portfolio for ELAD as at 1 September 2011
for acquisition purposes. We do not expect that any conflict arises in preparing
the advice requested.
DTZ Zadelhoff Tie Leung GmbH was a wholly owned subsidiary of DTZ Holdings
plc (the “Group”) until 5 December 2011, when all the trading subsidiaries of the
Group (the “Subsidiaries”) were sold to UGL Limited (“UGL”). In the Group‟s
financial year ending 30 April 2012, the proportion of fees payable by the
Fund/Company to the total fee income of the Group was less than 5%. UGL‟s
financial year end is 30 June. We anticipate that the proportion of fees payable
by the Fund/Company to the Subsidiaries in the financial year to 30 June 2012
will remain at less than 5%.
Liability
Notwithstanding anything to the contrary contained elsewhere in the instruction
the total liability of DTZ arising under or in connection with this Instruction shall
not in any event exceed 10% of the Market Value or a maximum of €7,000,000.
Reliance
The contents of this Offer Letter and any documents produced relating to projects
under the scope of this Offer Letter are confidential to the party to whom they are
addressed for the specific purpose to which they refer and are for their use only.
Consequently, and in accordance with current practice, no responsibility is
accepted to any other party in respect of the whole or any part of its contents.
In case DTZ Zadelhoff Tie Leung GmbH is to assume liability towards third
parties for its assessment; this is only permissible on the basis of a separate fee
agreement.
Disclosure
Before the valuation and/or valuation report, or any part thereof, is reproduced or
referred to, in any document, circular or statement, and before its contents, or
any part thereof, are disclosed orally or otherwise to any other third party, the
valuer‟s written approval as to the form and context of such publication or
disclosure must first be obtained. The permission for publication in a stock
exchange prospectus is granted.
© DTZ
DTZ VAL
Page 6 of 9
Fee
Base net fee
Our fee is based on actual time spent, and has been calculated according to our
normal hourly rates. These rates depend on the qualification of the individuals
involved.
VAT
VAT will be charged at 19%
Additional fee
In the case that a significant level of additional work is required during the
valuation process, which had not been agreed under the terms of original offer for
valuation services, an additional fee may be charged after consultation with
yourselves. Any additional fee will be calculated at a daily rate.
After completion of the valuation report, additional work which has not been
caused by DTZ Zadelhoff Tie Leung but e.g. through changes in relevant
valuation information will be charged at a daily rate of
Schedule of payment
Fee ex post: 100% of base fee + VAT, to be paid within two weeks following
invoicing.
Should the issuance of the final report be delayed by more than one month, for
reasons beyond the control of DTZ Zadelhoff Tie Leung GmbH, we reserve the
right to invoice prior to the date of issuance of the final report.
Audit procedures
No audit procedures required.
Validity
We will be bound to this offer up to and until 22 May 2012.
Timing
The report will be provided within four working days after written confirmation of
the offer by the client. In the case that the project start is delayed, the timing may
be affected.
© DTZ
DTZ VAL
Page 7 of 9
Closing and Signature
We trust that this quotation meets your requirements and look forward to receiving written confirmation of your
instructions by signature, completion of invoice address and return of this letter.
Please do not hesitate to contact us if there are any points which require further discussion.
Yours sincerely
ppa. Martin Greiner MRICS
i. V. Tino Müller MRICS, CIS HypZert (F/M)
Associate Director
Associate Director
Head of Residential Valuation
Valuation
FOR AND ON BEHALF OF
FOR AND ON BEHALF OF
© DTZ
DTZ VAL
Page 8 of 9
Confirmation by Client
The instructions are confirmed by name of company.
With my signature, I hereby permit the use of key data regarding the instruction by DTZ Zadelhoff Tie Leung
GmbH for marketing purposes. Any such data will be utilised in a generalised form only and will be made
anonymous. DTZ Zadelhoff Tie Leung GmbH confirms that confidential information will not be disclosed in this
process.
Contact person
(Name and Surname in CAPITAL LETTERS)
Authorised signature and official company stamp
Billing address
Contact person for invoicing
matters
(Name and Surname)
© DTZ
DTZ VAL
Page 9 of 9
General Contractual Conditions of DTZ Zadelhoff Tie Leung GmbH
Scope of application
Time for performance
(1) These contractual condi ions apply to contracts between DTZ Zadelhoff
Tie Leung GmbH (afterwards called DTZ or the Contractor) and its
Clients for surveys, studies, consultancy and o her orders, unless
expressly agreed o herwise in writing or mandated by law.
(2) The Client's general terms and condi ions are only binding on the
Contractor if this has been expressly agreed in writing.
(3) The contractual relationship between the Client and the Contractor
provides no additional protec ive effect in favour of a third party. If in an
excep ional individual case hird par ies might derive rights from the
contractual rela ionship, hen the rules laid down in No. 6 also apply to
them.
(4) Versions in another language are purely for information purposes; only
the German version is authorita ive.
Scope and fulfilment of the order
(4) If a deadline is agreed for the completion of the order, this shall extend
appropriately in the event of force majeure and for the period of any
temporary hindrance preventing work for which the Contractor is not
responsible. The party affected by such hindrance must immediately
notify the o her party of the existence of any hindrance to work and the
probable duration of any delay.
(5) If the Client breaches his duty of coopera ion in accordance wi h No. 3
and the Contractor has no ified of this, hen agreed schedules and/or
deadlines shall be regarded as extended by the period that the Client
needs to meet the duty of cooperation. The Contractor is released from
his duty of performance for this time. Any additional expense arising to
he Contractor due to the breach of the duty of cooperation must be
reimbursed by the Client. The Contractor's right to terminate the
contractual relationship without notice if the Client breaches the duty of
coopera ion is unaffected by this.
Guarantee
(1) The Contractor is responsible for providing the consultancy activities
described in the contract, and not a specific economic result. The
Contractor is only obliged to compile a written report on progress and
the result, specifically for presentation to a third party, if he contract
expressly specifies this. If the Contractor has to present the results of
his work in writing then only he written presentation is authoritative.
Oral declarations and information from employees of the Contractor
over and above the order are always non-binding. The Contractor's
work is completed when the necessary analyses, resulting conclusions
and recommendations have been completed and explained to the
Client, or in he event of a written presenta ion being agreed, when this
is delivered to the Client.
(2) The Contractor may make use of expert hird par ies to fulfil his
contractual obligations.
(3) The Contractor shall only examine the data given to him by he Client,
and in particular figures, for obvious errors. O herwise the Contractor
may assume the given data to be correct and complete.
(4) The Client cannot require the order to be carried out by a specific
advisor.
(5) If the conditions which form the basis of the conclusions and
recommendations change after he end of he order, the Contractor is
not obliged to point out these changes or resulting consequences to the
Client.
(6) Changes and supplements to he order must be made in writing.
(7) Subsidiary oral agreements are not valid. The requirement of written
form also applies for material declarations (e g. notice of termination,
release agreement).
(8) The order does not cover any legal or tax advice, ra her it takes the
exis ing legal and tax conditions as given. This does not exclude nonbinding advice being given in individual cases, however there is no
liability for this. If necessary we can provide contact to professionally
experienced legal advisors.
The Client's duty of declaration and cooperation
(1) The Client is obliged, at his expense, to provide the Contractor wi h all
information and physical resources necessary for the proper fulfilment
of the order, also without special request. During the contractual
relationship the Client must inform he Contractor without delay of all
occurrences which may influence he provision of he contractually
agreed services. The Contractor is not obliged to check he correctness
of such information.
(2) On request from the Contractor, the Client must confirm the correctness
and completeness of he documents he presents and of his informa ion
and oral declarations in a written declaration formulated by the
Contractor.
(3) The Client must ensure hat there is a suitable back-up, security and
virus checking process set up on each computer workplace provided,
and must also apply these means whilst the contract is being fulfilled in
accordance with general data processing practice.
© DTZ
Date: 27 October 2004
If guarantee provisions are applicable on account of the type of services
to be provided in accordance with the contract, the following conditions
apply:
(1) The Client has a claim for any defects caused by the Contractor to be
remedied, as long as this remedying is possible at reasonable expense.
If the defect cannot be remedied or if the remedies fail, the Client retains
he right to withdraw from the contract or to reduce payment
appropriately. If the Client is a businessman he may only withdraw if
he work provided is without interest to him due to failure of the remedy.
No. 6 applies to claims for damages exceeding this.
(2) Obvious defects must be notified in wri ing by he Client within two
weeks of delivery of service. If the Client is a businessman, public law
legal en ity or a public law special government estate obvious defects
must immediately be notified in wri ing, and non-obvious defects
immediately when they become apparent. Otherwise, defects must be
notified not later han within twelve months of delivery of service. If the
Client does not promptly no ify of he defect, any claim for his remedy is
excluded if he client is a businessman, a public law legal en ity or a
public law special government estate.
(3) Apparent errors, e g. typographic mistakes, miscalculations and formal
errors, in a report or survey, etc., completed by he Contractor, may be
corrected by he Contractor at any time and wi h regard to third par ies,
too. Errors which might cause recommenda ions and conclusions to
become questionable jus ify the Contractor to withdraw hem, including
from hird par ies. The Client is first given the opportunity to comment.
Liability
The following applies to the reimbursement of damages:
(1) In case of an intentional or grossly negligent breach of a duty and in
case we culpably cause harm to the life, body or health we are liable
without limitation for the damages thereby caused unless he liability is
limited by statutory law.
(2) In case of a grossly negligent breach of contract by one of our senior
executives our liability for damages to property and financial loss is
limited to the damage typical and predictable under such contract
(vertragstypisch vorhersehbarer Schaden).
(3) In case of minor negligence we are liable for damages to property and
financial loss only to he extend such damages are caused by the
breach of an essen ial contractual duty. However our liability is limited to
he damage typical and predictable under such contract
(4) Any liability for damages exceeding the liability described above is
hereby waived regardless the basis and nature of such claim. This
especially applies to claims based on tort (sec. 823 and 831 German
Civil Code) but not to claims based on he German Act on Product
Liability (Produkthaftungsgesetz).
(5) We are not liable if the Client takes entrepreneurial decisions on the
basis of our work, which then and on their own give rise to a loss (e.g. in
connection with he evaluation of a market situa ion or a
recommendation for use wi h regard to business policies).
Page 1 of 2
General Contractual Conditions of DTZ Zadelhoff Tie Leung GmbH
Confidentiality, Data protection
(6) We are not liable
a)
for non-observance or incorrect observance of foreign law.
b)
for the correctness of the manufacturer's information on the
reliability or performance of a data processing system
recommended by DTZ.
(1) The Contractor undertakes to maintain discretion about all data and
informa ion concerning the Client and not generally known, which
become known to him whilst fulfilling the order.
c)
for warranty defects wi h which a data processing system
recommended by DTZ is affected.
d)
for warranty defects which arise from software which we nonbindingly recommend.
(2) DTZ is authorised to process personal data entrusted to it within he
framework of the intended purpose of the order or to have this
processed by a third party. DTZ shall take the necessary care hat its
staff or third parties commissioned by it observe the legislation on data
protection.
Intellectual property protection
Fee, offset
(1) The Client is responsible for the surveys, reports, organisation plans,
drafts, drawings, lists and calculations completed by the Contractor
within the framework of the order only being used for the purposes
contractually agreed and not being published without the express
consent of the Contractor in each case. Passing on the consultancy
works to a hird party, including to companies allied with the Client,
requires express written consent from the Contractor.
(2) The Contractor is not liable to either a third party or the Client in case
that he Client – whe her or not enti led – makes he results of the work
available to third par ies; the Client releases DTZ from all third party
claims in this event.
(3) If a copyright or other protected right arises through the work being
carried out by DTZ, then the Client is en i led to a non-exclusive, nontransferrable single usage right wi hin the framework of he intended
purpose of the contract concluded with the Client.
(4) Prior consent from the Contractor is required for use of the work results
for advertising purposes.
(5) The (usage) rights granted to the Client do not prevent either DTZ
Zadelhoff Tie Leung GmbH or another direct or indirect entity belonging
to the world-wide „DTZ“ group from making future use of techniques,
ideas, concepts or expertise which are gained whilst fulfilling the
contract and are suitable for general use.
Return of documents
(1) After he end of the consultancy agreement, the Contractor must on
request from he Client return all documents that the Client or a third
party has given him during he fulfilment of he order. This does not
apply to correspondence between he parties nei her to documents for
which the Client already holds an original or copy, or for duplicates of
surveys, reports, organisation plans, drafts, drawings, lists and
calculations completed within he framework of the order. The
Contractor may make copies of the documents which were given to him
for the fulfilment of the order and retain these.
(2) The Contractor may refuse to release documents received from the
Client for the fulfilment of he order until his claims are met. This does
not apply if the Client is only in arrears with a small por ion of his
payment.
© DTZ
Date: 27 October 2004
(1) Besides his fee, he Contractor has a claim to reimbursement of
expenses and payment of the then legal amount of sales tax. The
Contractor can demand reasonable advances on his fee and his
reimbursement of expenses.
(2) The fee is due on presentation of invoice and is payable immediately
without deductions.
(3) If payment obliga ions are not met promptly the Contractor is entitled to
make further provision of work dependent on the satisfaction of his
claims.
(4) If invoiced sums are not paid within 30 days of receipt of invoice, he
Contractor is furthermore en i led to charge interest at the rate of 8 %
points above the base interest rate. This does not exclude enforcement
of further claims for delay.
(5) Offsetting against claims of the Contractor for he fee and
reimbursement of expenses is only permitted with claims which are not
contested or are legally set.
(6) Several Clients are liable join ly and severally.
Termination
(1) Consultancy agreements can be terminated with a period of notice of
fourteen days, unless he consultancy agreement provides for the
fulfilment of consultancy or procedural support projects that are limited
by time or circumstance, and it is for a flat fee (where relevant plus
reimbursement of additional expenses). The right to terminate without
notice is unaffected. No ice of termina ion must be given in writing to be
effective.
Applicable law, place of jurisdiction, other
(1) German law applies exclusively to the order, its fulfilment and claims
arising from his.
(2) If the Client is a businessman as defined by he German Commercial
Code, or a public law legal en ity or a public law special government
estate, then he place of jurisdiction for all disputes is he legal domicile
of DTZ, or at DTZ's discretion also the legal domicile of the Client.
(3) Rights from the contractual rela ionship with the Contractor may only be
transferred by the Client with prior consent from the Contractor.
Page 2 of 2
Valuation
Appendix B
Valuation
01.09.2011
Value Overview
ID
City
Address
Assumed year of Assumed status Total lettable area
construction
of refurbishment
in sq m
Vacant Area
in sq m
Current Income
p.a.
(incl. parking/
others)
Potential Income
p.a.
(incl. Parking/
others)
Market Income
p.a.
(incl. Parking/
others)
German Multiplier
Market Value
Market Value
per sq m
Düsseldorf
Düsseldorf
Hasselsstr.16-22 even
1967
partly
1,454
253
93,969 €
113,715 €
114,424 €
18.09
1,700,000 €
1,170 €
Hattingen I
Hattingen
An der Hunsebeck 25, Heinrich Zille Str. 2, Käthe-KollwitzStr. 1, 3, 5, 15
1967
partly
8,610
411
494,014 €
505,166 €
488,439 €
10.73
5,300,000 €
616 €
Hattingen II
Hattingen
An der Hunsebeck 27, Heinrich Zille Str. 4-6 even, KätheKollwitz-Str. 1a, 3a
1974
partly
7,027
248
330,082 €
333,611 €
334,525 €
9.09
3,000,000 €
427 €
Hattingen III
Hattingen
1967
partly
4,179
855
194,157 €
217,731 €
208,531 €
8.24
1,600,000 €
383 €
Herne
Herne
Edmund-Weber-Str. 242-262 even, 262a
1950
partly
3,795
369
190,310 €
208,096 €
213,077 €
11.56
2,200,000 €
580 €
Gladbeck I
Gladbeck
Almastr. 1-25 uneven, Horsterstr. 241-251 uneven, 241A,
243A, 245 A,B, Marienstr. 28-42 even
1959
partly
9,827
2,969
367,328 €
508,565 €
532,141 €
10.07
3,700,000 €
377 €
Gladbeck II
Gladbeck
Bohnekampstr. 29-65 uneven, Knappenstr. 1, Eisenstr. 2
1961
partly
3,749
253
194,477 €
203,552 €
208,372 €
10.80
2,100,000 €
560 €
Gelsenkirchen I
Gelsenkirchen
Hultschiner Str. 2-8 even, 1, 3, Reichenberger Str.14, 17-39
uneven, 19a, 37a, Schönauer Str. 1-8, Trautenauer Str.
1,3,5,7
1950
partly
10,540
2,663
447,055 €
576,647 €
560,114 €
12.53
5,600,000 €
531 €
Gelsenkirchen II
Gelsenkirchen
Laurentiusstr. 9-23 uneven, 11A, B, 15A-C, Sandstr. 45-55
uneven
1914
not
5,719
1,535
229,454 €
296,897 €
297,430 €
9.59
2,200,000 €
385 €
Marl
Marl
Ostpreußenstrasse 1-8, 10-36 even, Pommernstr. 2-4
1950
partly
11,599
3,213
462,362 €
612,429 €
655,235 €
10.60
4,900,000 €
422 €
Castrop-Rauxel I
Castrop-Rauxel
Briloner Straße 32-34 even, 42-44 even, 52-54 even
1967
partly
3,570
1,259
116,821 €
171,921 €
186,392 €
12.84
1,500,000 €
420 €
Castrop-Rauxel II
Castrop-Rauxel
Briloner Straße 36-40 even, 46-50 even, 56-60 even
1967
partly
4,079
374
155,787 €
167,563 €
200,756 €
10.91
1,700,000 €
417 €
Dortmund I
Dortmund
Brüchtenweg 23
1967
partly
1,776
177
65,518 €
74,536 €
90,600 €
12.21
800,000 €
450 €
Dortmund II
Dortmund
Vogelpothsweg 25, Oberbank 5-7 uneven
1980
partly
3,554
1,111
138,552 €
184,154 €
178,433 €
10.83
1,500,000 €
422 €
Dortmund III
Dortmund
Echeloh 4-32 even
1964
partly
10,356
3,506
404,597 €
574,925 €
560,777 €
12.85
5,200,000 €
502 €
Dortmund IV
Dortmund
1964
partly
11,662
2,498
508,180 €
611,584 €
598,261 €
9.25
4,700,000 €
403 €
Dortmund V
Dortmund
1964
partly
1,011
551
44,394 €
57,743 €
60,950 €
10.81
480,000 €
475 €
Dortmund VI
Dortmund
Kirchlinder Str.4-8 even, Zollernstr. 1A
1979
partly
3,500
467
147,408 €
166,682 €
166,682 €
10.85
1,600,000 €
457 €
Dortmund VII
Dortmund
Kosselstr. 46-48 even, Jungferntalstr. 71-81 uneven, 98100 even, 85-113 uneven, 76-94 even
1962
partly
12,060
1,580
552,123 €
646,896 €
731,481 €
15.21
8,400,000 €
696 €
Dortmund
Erpinghofstr. 24-34 even, 34A, 48-58 even, 61-67 uneven,
Rupinghofstr. 1-23 uneven, 2-24 even, Travemannstr. 5-9
uneven, Welkener Str. 25-31 uneven
1953
not
10,481
2,260
422,963 €
516,704 €
553,368 €
9.93
4,200,000 €
401 €
128,547
26,551
5,559,551 €
6,749,119 €
6,939,988 €
11.22
62,380,000 €
485 €
Dortmund VIII
TOTAL
Valuation
Appendix C
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Property Key Figures
Property type
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1967
n/a
n/a
Freehold
No
1,454 sq m
17.42%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
93,969 €
113,715 €
114,424 €
24,927 €
26.53%
69,042 €
66,042 €
NOI (month 1x12)
Net Cash Flow
SWOT-Analysis
Strenghts
Weaknesses
Almost fully let at date of inspection,
Reasonable state of repair,
Partly fitted with balconies
Located in a basic residential area,
High noise exposure caused by neighbouring factory
Opportunities
Threats
Adding balconies to the rear,
Improvement of external appearance,
Renting out vacant apartments at Market Rent
Apartments being vacated are l kely to need refurbishment
works,
Only fair demand due to industrial surroundings
Property and Location Rating
Property
2
1 = very good, 6 = poor
Location
4
Valuation Result
Yield Profile
Multiplier
NIY
Current rental income
18.1
3.90%
Potential rental income
14.9
5.01%
Market rental income
14.9
5.05%
Purchaser's costs
6.40%
per sq m
1,170 €
Page 1
10,661 9€
Market Value
1,700,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Location and Property Description
Location Description
Use
Quality of area
Description of
location
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
3
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
4
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
public transport) 3 Less than 1,000 m
4 More han 1,000 m
1
1
2
3
4
3
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
Location rating
1
2
3
4
5
6
The Property is located adjacent to an industrial
Additional
complex.
comments
(suitability of the
location)
3
Excellent
Very good
Good
Fair
Fairly poor
Poor
4
External Building Description
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Apartment building (multi-family house)
Residential block
Mixed-use
Other
1
2
3
4
New-built / redeveloped
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
No. of floors (incl.
ground floor)
No. of residential units
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
2 Rendered with stucco
3 Exposed concrete
4 Face brick facade
Thermal insulation Yes
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
3
No. of parking spaces
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1 Thermally insulated
2 No insulation
1
3
27
0
6
1967
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
Wooden - single glazing
Wooden - insulated glazing
Plastic
Metal
1
2
3
4
Yes - facing the street
Yes - not facing the street
Loggia
No
Attics
1 Developed attic space
2 Non-developed attic space
1
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Unrefurbished
1
Additional
comments
Page 2
1
The drainage of the roof and balconies are partly
damaged. Only hree units have balconies.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Internal Building Description
Electrical
installations
within residential
units
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
2
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
2
Heating
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 1996
1
Electrical wiring
1 New/recently renewed
2 Out-dated
1
Water and
sewage pipes
2 Out-dated
1
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
2
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
Additional
comments
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
2
Layout bathroom 1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
Partly refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
Fit-out bathroom 1 Ba h
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
3
1
4
Fully refurbished
We were not able to inspect all residential units, the comments stated above are according to the information provided during the
inspection.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisa ion
no
yes
yes
no
no
no
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
1 Moisture penetration
2 Cracks in masonry
3 Infestation with vermin
no
no
no
Entrance and
common areas
1 Vandalised/damaged staircases
Damaged entryways (broken letterboxes,
2
damaged doorbells etc.)
no
According to the technical due diligence prepared by Drees&Sommer the following repair works are required and have been
reflected in our valuation: Repair of rainwater pipes; repair of defects related to fire protection.
Page 3
no
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
2
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommoda ion
3
Number of units
inspected
Residential
Commercial
2
0
We were able to inspect two occupied residential units.
Comments on Lettability and Saleability
Lettability
Additional
comments
2
The property is in a fair condition and shows a
considerable vacancy. However, we assume that
the lettability is good and therefore only minor
additional measures are required to reach a high
occupancy.
Saleability
Additional
comments
Page 4
2
The property is in a fair condition but shows a
considerable vacancy; the demand for comparable
properties is good. We assume that the saleability is
good and only minor promotional measures are
required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
27
0
6
0
33
Total lettable area
1,454 sq m
1,454 sq m
0 sq m
0 sq m
0 sq m
Units let
23
0
6
0
29
Area let
1,200 sq m
0 sq m
0 sq m
0 sq m
1,200 sq m
Vacant units
4
0
0
0
4
Vacant area
253 sq m
0 sq m
0 sq m
0 sq m
253 sq m
Vacancy rate area
17.42%
0.00%
0.00%
0.00%
17.42%
Vacancy rate units
14.81%
0.00%
0.00%
0.00%
12.12%
6.45 €
0.00 €
0.00 €
0.00 €
6.52 €
Current rent unit/month
336.66 €
0.00 €
14.60 €
0.00 €
270.03 €
Current rent p.a.
92,918 €
0€
1,051 €
0€
93,969 €
6.50 €
0.00 €
0.00 €
0.00 €
6.56 €
349.92 €
0.00 €
14.60 €
0.00 €
288.95 €
113,373 €
0€
1,051 €
0€
114,424 €
Current rent sq m/month
Market rent sq m/month
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Parking
1%
Residential
99%
Residential
100%
Valuation Assumptions
Residential
Structural vacancy
Commercial
Parking
0.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
25.00 €/sq m
25.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
9.50 €/sq m
9.50 €/sq m
40.00 €/unit
Marketing costs
Management costs p.a.
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
2.0% of potential rent
12.00 €/sq m
0.00 €/unit
Valuation Approach
For the Market Value calculations we have adopted a Discounted Cash Flow approach, based on a 10-year time horizon. The
Properties have been valued to ‘Market Value’ in accordance with VS 3.2 of the Valuation Standards (edition 7), published by the
RICS, London.
Full details of the underlying assumptions regarding rental changes, inflation rates, transferable and non-recoverable service
charges are shown in our valuation report.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
O her Revenue (antennas)
Total Other Revenue
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
112,664 114,642 116,648 118,703 120,833 123,001 125,208 127,454 129,741 131,947 134,190
-19,746 -15,936
-9,569
-2,981
-3,032
-3,084
-3,136
-3,189
-3,244
-3,299
-3,355
92,918 98,706 107,079 115,722 117,801 119,917 122,072 124,265 126,497 128,648 130,835
1,051
0
0
0
1,051
1,069
0
0
0
1,069
1,087
0
0
0
1,087
1,106
0
0
0
1,106
1,125
0
0
0
1,125
1,144
0
0
0
1,144
1,163
0
0
0
1,163
1,183
0
0
0
1,183
1,203
0
0
0
1,203
1,224
0
0
0
1,224
1,244
0
0
0
1,244
93,969
99,775 108,167 116,827 118,925 121,061 123,235 125,448 127,701 129,871 132,079
6 2%
8.4%
8.0%
1.8%
1.8%
1 8%
1.8%
1.8%
1.7%
1.7%
-5,961
-1,879
-4,698
-240
-3,038
-9,110
0
-6,062
-1,996
-4,778
-244
-2,452
-9,265
0
-6,165
-2,163
-4,860
-248
-1,472
-9,422
0
-6,270
-2,337
-4,942
-252
-459
-9,582
0
-6,377
-2,379
-5,026
-257
-466
-9,745
0
-6,485
-2,421
-5,112
-261
-474
-9,911
0
-6,595
-2,465
-5,199
-266
-482
-10,079
0
-6,708
-2,509
-5,287
-270
-491
-10,251
0
-6,822
-2,554
-5,377
-275
-499
-10,425
0
-6,938
-2,597
-5,468
-279
-507
-10,602
0
-7,056
-2,642
-5,561
-284
-516
-10,782
0
-24,927
26.8%
-24,797
25.1%
-24,331
22.7%
-23,842
20.6%
-24,250
20.6%
-24,664
20.6%
-25,086
20 6%
-25,515
20.5%
-25,951
20.5%
-26,392
20.5%
-26,841
20.5%
Net Operating Income
69,042
74,978
83,836
92,985
94,675
96,396
98,149
99,933 101,749 103,479 105,238
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-3,001
0
0
-5,197
0
-12,001
-5,286
0
0
-5,376
0
0
-3,210
0
0
-3,265
0
0
-3,320
0
0
-3,377
0
0
-3,434
0
0
-3,492
0
0
-3,552
0
0
Total Leasing and Capital Costs
-3,001
-17,198
-5,286
-5,376
-3,210
-3,265
-3,320
-3,377
-3,434
-3,492
-3,552
Net Cash Flow
% Growth
66,042
57,780
-12.5%
78,550
35.9%
87,609
11.5%
91,465
4.4%
93,132
1.8%
94,829
1 8%
96,556
1.8%
98,315
1.8%
99,987 101,687
1.7%
1.7%
3.7%
3.3%
4.4%
4.9%
5.2%
5.3%
5.3%
5.4%
5.5%
Total Operating Expenses
% of Gross Revenue
Running Net Yield
Present Cash Flow Value @6.28% Discount Rate
Present Resale Value @4.75% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
1,219 €
120.000
7,0%
6,0%
100.000
5,0%
80.000
4,0%
60.000
3,0%
40.000
2,0%
6.4%
20.000
Net Value
Market Value
5.7%
Net Cash Flow
639,703 €
1,132,835 €
1,772,537 €
5.6%
1,665,919 €
Running Yield in %
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Sinking Fund
O her Costs
Net Cash Flow in €
Total Gross Revenue
% Growth
Year 1
1,0%
0
0,0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1,700,000 €
Multiple (current rent)
Multiple (potential rent)
18.1 x
14.9 x
Net Initial Yield
3.9%
Direct Cap Rate
3.7%
120.000
30,0%
100.000
25,0%
80.000
20,0%
60.000
15,0%
40.000
10,0%
20.000
5,0%
0
0,0%
Page 6
Total Operating Expenses in %
1,170 €
Net Operating Income in €
Market Value per sq m
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Site Information
Site area
Thereof surplus land
1,441 sq m
0 sq m
Guideline land value €/sq m
Date of guideline land value
Adjusted site value €/sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Hasselsstr. 16-22
Mining damage
and risks (acc. to
Drees&Sommer)
No obviously subsidence damages observed during on-site inspection; Risk of subsidence damages is
considered non existing
Not registered in the register of contaminated sites; No commercial or industrial land use; No hints for soil
contamination in the past; Environmental risk is considered low; No public land charges
Leasehold
Ground rent (€ p.a.)
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Legally binding development plan
No. / Name of development plan
Development plan dated
Designated use
Site ratio coverage (GRZ)
Plot ratio (GFZ)
Yes
No
Commercial area (FNP)
Additional comments
No preservation or design statute
Land Register
Extract dated
22.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Düsseldorf
14096
20
167
Terra Heimbau 407
No restrictions
Comments
We have not been provided with extracts from the land register. The information stated above is obtained from
a summary schedule prepared by CMS Hasche Sigle.
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Site Plan
Subject property
Page 8
Düsseldorf
Cluster 01
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Düsseldorf
Cluster 01
n/a
01.09.2011
Rental and Investment Evidence
Rental Table (Mietspiegel)
City
Düsseldorf
Date
01.07.2011
Minimum
Average
5.75 €/sq m
6.60 €/sq m
Maximum
7.45 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Hasselsstr. 16
16.02.2010
51 sq m
5.76 €/sq m
Hasselsstr. 18
01.11.2010
52 sq m
6.40 €/sq m
Hasselsstr. 18
01.11.2010
50 sq m
6.40 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
Büngerstr. 18, Düsseld.
08.09.2011
55 sq m
6.02 €/sq m 2-room apartment, ground floor, partly refurbished
Büngerstr. 14, Düsseld.
08.09.2011
45 sq m
6.38 €/sq m 1-room apartment, 1st floor, partly refurbished
40599 Düsseldorf
08.09.2011
83 sq m
7.14 €/sq m 3-room apartment, partly refurbished, better location
Zoppoter Str., Düsseldorf
08.09.2011
47 sq m
7.51 €/sq m 2-room apartment, not refurbished, better location
Zoppoter Str. 21, Düssel.
08.09.2011
38 sq m
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
928 € 3-storey apartment building, built 1969, worse condition
Fürther Straße
03.07.1905
621 sq m
Graudenzer Straße
02.07.1905
234 sq m
1,120 € 3-st. apartment build., built 1965, better locat., worse condit.
Stendaler Straße
03.07.1905
313 sq m
1,208 € 3-st. apartm. building, built 1962, better locat., worse condit.
Oranienburger Straße
03.07.1905
791 sq m
1,214 € 3-st. apartm. build., built 1984, better location, worse condit.
Am Schönenkamp
03.07.1905
266 sq m
1,335 € 3-st. apartment. build., built 1960, better locat., worse condit.
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
1,167 € 3-4-storey apartment building, better location, worse condit.
40597 Düsseldorf
15.09.2011
2,100 sq m
40229 Düsseldorf
15.09.2011
487 sq m
1,427 € 4-storey apartment building, better location
40599 Düsseldorf
15.09.2011
342 sq m
1,434 € 3-storey apartment building, better location
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Düsseldorf
40597
Düsseldorf
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Düsseldorf
Cluster 01
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1967
n/a
n/a
Freehold
No
8,610 sq m
4.77%
No
Income year 1
as % of GRI
494,014 €
505,166 €
488,439 €
139,620 €
28.26%
NOI (month 1x12)
Net Cash Flow
354,393 €
292,903 €
SWOT-Analysis
Strenghts
Weaknesses
Almost fully let,
Well located next to the town centre of Hattingen,
All units fitted with balconies
Low modernisation ratio of units
Opportunities
Threats
Higher fit-out and uplift potential
works
Property
4
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
10.7
6.37%
10.5
6.57%
10.9
6.27%
Purchaser's costs
5.80%
per sq m
616 €
Page 1
30,485 4€
Market Value
5,300,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
2
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
1
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
3
4
1
2
3
4
As new
No obvious damage
Minor damage noted
3
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
2
Additional
comments
Page 2
2
4
7
112
0
24
1967
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
3
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
1
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
inspection. According to the information provided during inspection the accomodations are in different state of repair. Generally,
we assume that extensive refurbishment works are required in order to re-let the apartments.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
no
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
reflected our in valuation: Cleaning and painting of the facade; roof repair; repair waterproofing of external basement walls.
Page 3
no
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
2
0
Additional
comments
Lettability
Additional
comments
3
The property is in a fair condition and almost all
units are currently let. We assume that the lettability
is fair and therefore only minor additional measures
are required to increase occupancy.
Saleability
Additional
comments
Page 4
3
The property is in a fair condition and almost all
units are currently let; the demand for comparable
properties is fair. We assume that the saleability is
fair so that additional promotional measures are
required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
112
0
24
0
136
Total lettable area
8,610 sq m
8,610 sq m
0 sq m
0 sq m
0 sq m
Units let
107
0
20
0
127
Area let
8,199 sq m
0 sq m
0 sq m
0 sq m
8,199 sq m
Vacant units
5
0
4
0
9
Vacant area
411 sq m
0 sq m
0 sq m
0 sq m
411 sq m
Vacancy rate area
4.77%
0.00%
0.00%
0.00%
4.77%
Vacancy rate units
4.46%
0.00%
16.67%
0.00%
6.62%
4.92 €
0.00 €
0.00 €
0.00 €
5.02 €
Current rent p.a.
376.99 €
0.00 €
41.51 €
0.00 €
324.16 €
484,051 €
0€
9,963 €
0€
494,014 €
4.75 €
0.00 €
0.00 €
0.00 €
4.85 €
365.14 €
0.00 €
34.59 €
0.00 €
306.96 €
478,476 €
0€
9,963 €
0€
488,439 €
Market rent p.a.
Parking
2%
Residential
98%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
2.5%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
495,203 513,301 520,024 526,807 533,586 540,454 547,410 554,457 561,595 571,142 580,852
-11,153 -44,273 -41,660 -38,946 -39,608 -40,281 -40,966 -41,662 -42,370 -43,091 -43,823
484,051 469,027 478,364 487,861 493,979 500,173 506,445 512,795 519,225 528,052 537,029
9,963
0
0
0
9,963
10,639
0
0
0
10,639
11,335
0
0
0
11,335
12,052
0
0
0
12,052
12,257
0
0
0
12,257
12,465
0
0
0
12,465
12,677
0
0
0
12,677
12,892
0
0
0
12,892
13,112
0
0
0
13,112
13,334
0
0
0
13,334
13,561
0
0
0
13,561
Total Gross Revenue
% Growth
494,014 479,666 489,699 499,913 506,235 512,638 519,121 525,687 532,337 541,386 550,590
-2 9%
2.1%
2.1%
1.3%
1.3%
1 3%
1.3%
1.3%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-24,839
-9,880
-24,701
-960
-4,931
-74,309
0
% of Gross Revenue
-25,262
-9,593
-25,121
-976
-9,321
-75,573
0
-25,691
-9,794
-25,548
-993
-8,771
-76,857
0
-26,128
-9,998
-25,982
-1,010
-8,199
-78,164
0
-26,572
-10,125
-26,424
-1,027
-8,338
-79,493
0
-27,024
-10,253
-26,873
-1,044
-8,480
-80,844
0
-27,483
-10,382
-27,330
-1,062
-8,624
-82,218
0
-27,950
-10,514
-27,794
-1,080
-8,771
-83,616
0
-28,425
-10,647
-28,267
-1,099
-8,920
-85,038
0
-28,909
-10,828
-28,747
-1,117
-9,072
-86,483
0
-29,400
-11,012
-29,236
-1,136
-9,226
-87,953
0
-139,620 -145,845 -147,653 -149,481 -151,978 -154,518 -157,100 -159,726 -162,395 -165,156 -167,963
28.8%
31.1%
30.9%
30.6%
30.8%
30.9%
31 0%
31.1%
31.3%
31.3%
31.3%
354,393 333,821 342,046 350,433 354,257 358,120 362,021 365,962 369,941 376,230 382,626
Renovation Costs
Leasing Commissions
Capital Expenditure
-61,490
0
0
-67,119
0
-60,410
-68,260
0
0
-69,421
0
0
-65,779
0
0
-66,897
0
0
-68,035
0
0
-69,191
0
0
-70,367
0
0
-71,564
0
0
-72,780
0
0
-61,490 -127,529
-68,260
-69,421
-65,779
-66,897
-68,035
-69,191
-70,367
-71,564
-72,780
Net Cash Flow
% Growth
292,903 206,292 273,786 281,012 288,478 291,223 293,987 296,771 299,574 304,667 309,846
-29 6%
32.7%
2.6%
2.7%
1.0%
0 9%
0.9%
0.9%
1.7%
1.7%
5.3%
3.7%
4.9%
5.1%
5.2%
5.2%
5.3%
5.3%
5.4%
5.5%
Net Cash Flow
1,988,002 €
3,572,954 €
350.000
6,0%
5,560,955 €
646 €
Purchaser's Costs
5.8%
300.000
Gross Value
5,0%
250.000
4,0%
200.000
3,0%
150.000
2,0%
100.000
1,0%
50.000
Net Value
Market Value
5.6%
5,256,102 €
Running Yield in %
Running Net Yield
0
0,0%
5,300,000 €
Net Initial Yield
Direct Cap Rate
10.7 x
10.5 x
6.4%
5.3%
450.000
35,0%
400.000
30,0%
350.000
25,0%
300.000
250.000
20,0%
200.000
15,0%
150.000
10,0%
100.000
5,0%
50.000
0
0,0%
Page 6
616 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
Site Information
Site area
13,634 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
An der Hunsebeck 25, Heinrich-Zille-Str. 2, Käthe-Kollwitz-Str. 1, 3, 5, 15
Mining damage
and risks (acc. to
Drees&Sommer)
No obviously subsidence damages observed during on-site inspection; No risk estimation poss ble
Not registered in the register of contaminated sites; Environmental risk is considered low; No public land
charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Residential area (FNP)
Additional comments
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Hattingen
2216
7
219, 220, 235, 241, 242, 243
Terra Heimbau 407
Parcel 235:
Limited personal easement, right to build, run and maintain a transformer substation together with high and low
voltage cables, in favour of Aktiengesellschaft für Versorgungs-Unternehmen, Gevelsberg.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Site Plan
Subject property
Page 8
Hattingen I
Cluster 02
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Hattingen I
Cluster 02
n/a
01.09.2011
City
Date
Minimum
Average
Area
Monthly rent
Maximum
not applicable
Address
Date
Heinrich-Zille-Str. 2
15.06.2011
57 sq m
4.01 €/sq m
Käthe-Kollwitz-Str. 1
01.07.2011
79 sq m
4.43 €/sq m
01.06.2011
56 sq m
4.45 €/sq m
01.06.2011
76 sq m
4.67 €/sq m
01.08.2011
76 sq m
4.74 €/sq m
Address
Date
Area
Asking rent
Comments
Welperstr. 47, Hattingen
12.09.2011
70 sq m
3.57 €/sq m 2-room apartment, ground floor, not refurbished
12.09.2011
70 sq m
4.81 €/sq m 2-room apartment, attic floor, partly refurbished
Diepenbeck 3, Hattingen
12.09.2011
57 sq m
4.94 €/sq m 2,5-room apartment, 3rd floor, partly refurbished
12.09.2011
78 sq m
5.15 €/sq m 3-room apartment, 3rd floor, partly refurbished
A. d. Hunseb. 16, Hatting. 12.09.2011
57 sq m
5.70 €/sq m 3,5-room apartment, not refurbished, better location
Address
Date
Area
Price p. sq m
Comments
No recent transactions
Address
Date
Area
Price p. sq m
Comments
45701 Herten
16.09.2011
2,896 sq m
323 € 8-storey apartment building, worse condition, worse location
42277 Wuppertal
15.09.2011
7,052 sq m
423 € 6-storey apartment building, worse condition
42555 Velbert
15.09.2011
7,928 sq m
454 € 7-storey-apartment building, worse condition
58300 Wetter
16.09.2011
1,540 sq m
682 € 5-storey apartment building, better location
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen I
45527
Hattingen
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Hattingen I
Cluster 02
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1974
n/a
n/a
Freehold
Yes
7,027 sq m
3.53%
No
Income year 1
as % of GRI
330,082 €
333,611 €
334,525 €
122,724 €
37.18%
NOI (month 1x12)
Net Cash Flow
207,358 €
156,521 €
SWOT-Analysis
Strenghts
Weaknesses
Low modernisation ratio of units,
Rent restrictions until 2030-2064,
Unattractive external appearance
Opportunities
Threats
Rent increase after expiry of rent restrictions
High modernisation costs prior to re-letting activities of the
accommodations
Property
4
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
9.1
6.59%
9.0
6.70%
9.0
6.73%
Purchaser's costs
6.40%
per sq m
427 €
Page 1
18,922 5€
Market Value
3,000,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
2
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
4
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
Thermal insulation No
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
4
1
2
3
4
As new
No obvious damage
Minor damage noted
3
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
2 No insulation
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
5
2-6
114
0
5
1974
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 2000
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
1
Lifts
1 Yes
2 No
1
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
4
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
yes
yes
yes
yes
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
yes
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
yes
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
reflected in our valuation: Cleaning and painting of the facade; roof repair; repair waterproofing of external basement walls.
Page 3
yes
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
3
0
Additional
comments
Lettability
Additional
comments
3
The property is in a fairly poor condition and almost
all units are currently let. We assume that the
lettability is fair, however, as the property is subject
to social subsidies the lettability is also depending
on the guidlines of the local housing authorities.
Saleability
Additional
comments
Page 4
4
The property is in a fairly poor condition and almost
all units are currently let; he demand for
comparable properties is low particularly due to the
social subsidies. We assume that the saleability is
significantly limited so that substantial promotional
measures are required and an extended marketing
period can be expected.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
114
0
5
0
119
Total lettable area
7,027 sq m
7,027 sq m
0 sq m
0 sq m
0 sq m
Units let
110
0
3
0
113
Area let
6,778 sq m
0 sq m
0 sq m
0 sq m
6,778 sq m
Vacant units
4
0
2
0
6
Vacant area
248 sq m
0 sq m
0 sq m
0 sq m
248 sq m
Vacancy rate area
3.53%
0.00%
0.00%
0.00%
3.53%
Vacancy rate units
3.51%
0.00%
40.00%
0.00%
5.04%
4.04 €
0.00 €
0.00 €
0.00 €
4.06 €
Current rent p.a.
248.87 €
0.00 €
43.67 €
0.00 €
243.42 €
328,510 €
0€
1,572 €
0€
330,082 €
4.05 €
0.00 €
0.00 €
0.00 €
4.07 €
249.63 €
0.00 €
26.20 €
0.00 €
240.27 €
332,953 €
0€
1,572 €
0€
334,525 €
Market rent p.a.
Parking
%
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
2.5%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
332,039 346,521 352,522 358,628 364,841 371,163 377,594 384,136 390,792 397,435 404,192
-3,529 -28,031 -27,499 -26,940 -27,398 -27,864 -28,338 -28,819 -29,309 -29,808 -30,314
328,510 318,490 325,023 331,687 337,443 343,299 349,256 355,317 361,482 367,628 373,877
1,572
0
0
0
1,572
1,776
0
0
0
1,776
1,987
0
0
0
1,987
2,205
0
0
0
2,205
2,242
0
0
0
2,242
2,280
0
0
0
2,280
2,319
0
0
0
2,319
2,359
0
0
0
2,359
2,399
0
0
0
2,399
2,439
0
0
0
2,439
2,481
0
0
0
2,481
Total Gross Revenue
% Growth
330,082 320,266 327,010 333,892 339,685 345,579 351,575 357,675 363,881 370,067 376,358
-3 0%
2.1%
2.1%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-25,111
-6,602
-16,504
-200
-2,979
-71,328
0
% of Gross Revenue
-25,538
-6,405
-16,785
-203
-6,921
-72,540
0
-25,972
-6,540
-17,070
-207
-6,790
-73,773
0
-26,414
-6,678
-17,360
-210
-6,652
-75,028
0
-26,863
-6,794
-17,655
-214
-6,765
-76,303
0
-27,320
-6,912
-17,955
-218
-6,880
-77,600
0
-27,784
-7,032
-18,261
-221
-6,997
-78,919
0
-28,256
-7,154
-18,571
-225
-7,116
-80,261
0
-28,737
-7,278
-18,887
-229
-7,237
-81,625
0
-29,225
-7,401
-19,208
-233
-7,360
-83,013
0
-29,722
-7,527
-19,534
-237
-7,485
-84,424
0
-122,724 -128,393 -130,353 -132,342 -134,594 -136,885 -139,214 -141,583 -143,993 -146,440 -148,930
37.4%
40 3%
40.1%
39.9%
39.9%
39.9%
39 9%
39.8%
39.8%
39.8%
39.8%
207,358 191,873 196,658 201,550 205,091 208,694 212,361 216,092 219,888 223,627 227,428
Renovation Costs
Leasing Commissions
Capital Expenditure
-50,837
0
0
-53,312
0
-49,426
-54,219
0
0
-55,140
0
0
-54,383
0
0
-55,308
0
0
-56,248
0
0
-57,204
0
0
-58,176
0
0
-59,165
0
0
-60,171
0
0
-50,837 -102,739
-54,219
-55,140
-54,383
-55,308
-56,248
-57,204
-58,176
-59,165
-60,171
Net Cash Flow
% Growth
156,521
Gross Value
2.8%
4.5%
4.7%
448 €
Purchaser's Costs
6.4%
4.9%
5.0%
5.1%
5.1%
5.2%
5.3%
Net Cash Flow
1,034,118 €
2,111,742 €
3,145,861 €
4.8%
180.000
6,0%
160.000
5,0%
140.000
120.000
4,0%
100.000
3,0%
80.000
60.000
2,0%
Running Yield in %
5.0%
Running Net Yield
89,134 142,439 146,410 150,708 153,387 156,113 158,888 161,712 164,461 167,257
-43.1%
59.8%
2.8%
2.9%
1.8%
1 8%
1.8%
1.8%
1.7%
1.7%
40.000
1,0%
20.000
Net Value
Market Value
2,956,636 €
0
0,0%
3,000,000 €
9.1 x
9.0 x
Net Initial Yield
6.6%
Direct Cap Rate
5.0%
250.000
45,0%
40,0%
200.000
35,0%
30,0%
150.000
25,0%
20,0%
100.000
15,0%
10,0%
50.000
5,0%
0
0,0%
Page 6
427 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
Site Information
Site area
18,160 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
An der Hunsebeck 27, Heinrich-Zille-Str. 4-6, Käthe-Kollwitz-Str. 1a, 3a
Mining damage
and risks (acc. to
Drees&Sommer)
Not registered in the register of contaminated sites; Environmental risk is considered low; Public land charges
concerning Käthe-Kollwitz-Str. 1a and 3a
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Hattingen
2216
7
247, 248, 274, 346, 368, 384, 387
Terra Heimbau 407
No restrictions
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Site Plan
Subject property
Page 8
Hattingen II
Cluster 02a
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Hattingen II
Cluster 02a
n/a
01.09.2011
City
Date
Minimum
Average
Area
Monthly rent
Maximum
not applicable
Address
Date
An der Hunsebeck 27
01.03.2011
59 sq m
3.91 €/sq m
01.08.2011
43 sq m
3.97 €/sq m
01.02.2011
67 sq m
4.01 €/sq m
01.01.2011
44 sq m
4.05 €/sq m
01.02.2011
44 sq m
4.26 €/sq m
Address
Date
Area
Asking rent
Comments
12.09.2011
70 sq m
12.09.2011
70 sq m
12.09.2011
57 sq m
Welperstr. 59, , Hattingen
12.09.2011
78 sq m
57 sq m
Address
Date
Area
Price p. sq m
Comments
Address
Date
Area
Price p. sq m
Comments
45701 Herten
16.09.2011
2,896 sq m
42277 Wuppertal
15.09.2011
7,052 sq m
423 € 6-storey apartment building, standard fit-out
42555 Velbert
15.09.2011
7,928 sq m
454 € 7-storey-apartment building, balconies
58300 Wetter
16.09.2011
1,540 sq m
682 € 5-storey apartment building, better location, better condition
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen II
45527
Hattingen
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Hattingen II
Cluster 02a
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Residential block
1967
n/a
n/a
Freehold
No
4,179 sq m
20.45%
No
Income year 1
as % of GRI
194,157 €
217,731 €
208,531 €
80,374 €
41.40%
NOI (month 1x12)
Net Cash Flow
113,783 €
88,850 €
SWOT-Analysis
Strenghts
Weaknesses
Low modernisation ratio of units,
Significant capex required,
High-rise building,
Fairly high vacancy rate,
Unattractive external appearance
Opportunities
Threats
Reletting of vacant apartments after completion of
refurbishment
accommodations,
Above-average maintenance costs due to high-rise building
structure
Property
5
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
8.2
6.70%
7.3
8.09%
7.7
7.54%
Purchaser's costs
6.40%
per sq m
383 €
Page 1
10,217 7€
Market Value
1,600,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
2
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
4
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
4
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
3
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
4
4
1
2
3
4
As new
No obvious damage
Minor damage noted
4
3
1
2
3
4
As new
No obvious damage
Minor damage noted
4
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
2 No insulation
1
11
60
2
12
1967
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
Some of the windows are still wooden framed and in
need of replacement. The property has a mobil
phone base station antenna, located on the roof of
the building.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
1
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
yes
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
yes
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
yes
yes
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
yes
At the date of inspection the elevator was not working. According to the technical due diligence prepared by Drees&Sommer the
following repair works are required and have been reflected in our valuation: Repair of concrete reinforcement; cleaning and
painting of facade; replacement of windows and entrance doors; renewal of roof sealing; repair of defects related to fire
protection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
5
Access
3
Number of units
inspected
Residential
Commercial
5
0
Additional
comments
Lettability
Additional
comments
4
The property is in a fairly poor condition and shows
a considerable vacancy. We assume that the
lettability is significantly limited (particularly due to
the high-rise building structure) and vacancy can be
expected to remain high so that substantial
measures are required to increase occupancy.
Saleability
Additional
comments
Page 4
4
a considerable vacancy; the demand for
comparable properties is low. We assume that the
saleability is significantly limited so that substan ial
promo ional measures are required and an
extended marke ing period can be expected.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
60
2
12
2
76
Total lettable area
4,179 sq m
3,959 sq m
220 sq m
0 sq m
0 sq m
Units let
51
0
12
2
65
Area let
3,324 sq m
0 sq m
0 sq m
0 sq m
3,324 sq m
Vacant units
9
2
0
0
11
Vacant area
635 sq m
220 sq m
0 sq m
0 sq m
855 sq m
Vacancy rate area
16.03%
100.00%
0.00%
0.00%
20.45%
Vacancy rate units
15.00%
100.00%
0.00%
0.00%
14.47%
4.73 €
0.00 €
0.00 €
0.00 €
4.87 €
Current rent p.a.
Market rent p.a.
308.37 €
0.00 €
37.76 €
0.00 €
248.92 €
188,720 €
0€
5,437 €
0€
194,157 €
4.50 €
4.00 €
0.00 €
0.00 €
4.62 €
296.92 €
0.00 €
37.76 €
0.00 €
254.06 €
203,094 €
0€
5,437 €
0€
208,531 €
Commercial
5%
Parking
Commercial
3%
Others
Residential
97%
Residential
95%
Residential
Structural vacancy
Commercial
Parking
5.0%
100.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
212,293 236,249 239,362 242,419 245,214 248,042 250,904 253,801 256,732 261,096 265,535
-23,574 -47,122 -40,202 -33,033 -33,594 -34,165 -34,746 -35,337 -35,938 -36,549 -37,170
188,720 189,127 199,160 209,386 211,620 213,877 216,158 218,464 220,794 224,548 228,365
5,437
0
0
0
5,437
5,376
0
0
0
5,376
5,311
0
0
0
5,311
5,243
0
0
0
5,243
5,332
0
0
0
5,332
5,423
0
0
0
5,423
5,515
0
0
0
5,515
5,609
0
0
0
5,609
5,704
0
0
0
5,704
5,801
0
0
0
5,801
5,900
0
0
0
5,900
Total Gross Revenue
% Growth
194,157 194,504 204,472 214,629 216,952 219,300 221,673 224,072 226,498 230,349 234,264
0 2%
5.1%
5.0%
1.1%
1.1%
1.1%
1.1%
1.1%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-13,520
-3,883
-9,708
-480
-10,254
-42,529
0
-13,750
-3,890
-9,873
-488
-10,770
-43,252
0
-13,984
-4,089
-10,041
-496
-9,237
-43,987
0
-14,221
-4,293
-10,211
-505
-7,649
-44,735
0
-14,463
-4,339
-10,385
-513
-7,779
-45,495
0
-14,709
-4,386
-10,562
-522
-7,911
-46,269
0
-14,959
-4,433
-10,741
-531
-8,046
-47,055
0
-15,213
-4,481
-10,924
-540
-8,183
-47,855
0
-15,472
-4,530
-11,109
-549
-8,322
-48,669
0
-15,735
-4,607
-11,298
-559
-8,463
-49,496
0
-16,002
-4,685
-11,490
-568
-8,607
-50,338
0
% of Gross Revenue
-80,374
42.6%
-82,023
43.4%
-81,834
41.1%
-81,614
39.0%
-82,975
39.2%
-84,359
39.4%
-85,766
39.7%
-87,197
39.9%
-88,651
40.2%
-90,158
40.2%
-91,691
40.2%
113,783 112,481 122,638 133,015 133,976 134,941 135,907 136,876 137,847 140,190 142,573
Renovation Costs
Leasing Commissions
Capital Expenditure
-24,933
0
0
-36,457
0
-31,324
-37,076
0
0
-37,707
0
0
-26,672
0
0
-27,126
0
0
-27,587
0
-46,328
-28,056
0
-47,115
-28,533
0
-47,916
-29,018
0
-48,731
-29,511
0
-49,559
-24,933
-67,780
-37,076
-37,707
-26,672
-27,126
-73,915
-75,171
-76,449
-77,749
-79,071
88,850
44,701
-49.7%
85,561
91.4%
95,308 107,304 107,815
11.4%
12.6%
0.5%
61,992
-42.5%
61,705
-0.5%
61,398
-0.5%
62,441
1.7%
63,503
1.7%
5.2%
2.6%
5.0%
3.6%
3.6%
3.6%
3.7%
3.7%
Gross Value
Purchaser's Costs
5.6%
406 €
6.3%
Net Cash Flow
521,849 €
1,176,849 €
1,698,699 €
6.3%
120.000
7,0%
6,0%
100.000
5,0%
80.000
4,0%
60.000
3,0%
40.000
2,0%
6.4%
20.000
Net Value
Market Value
1,596,521 €
Running Yield in %
Running Net Yield
Net Cash Flow
% Growth
1,0%
0
0,0%
1,600,000 €
Net Initial Yield
Direct Cap Rate
8.2 x
7.3 x
6.7%
5.2%
160.000
50,0%
45,0%
140.000
40,0%
120.000
35,0%
100.000
30,0%
80.000
25,0%
20,0%
60.000
15,0%
40.000
10,0%
20.000
5,0%
0
0,0%
Page 6
383 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
Site Information
Site area
8,317 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Mining damage
and risks (acc. to
Drees&Sommer)
Not registered in the register of contaminated sites; No commercial or industrial land use; No hints for soil
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Hattingen
2304
7
93, 158, 159, 171, 172
Terra Heimbau 2
Parcels 93, 159, 172:
Limited personal easement, right to build, run and maintain a high pressure gas pipe line together with
construction and use limitations for the owner of the property in favour of Aktiengesellschaft für VersorgungsUnternehmen, Gevelsberg.
Parcel 172:
Right to build a 10 KV station together with a right of access to the property, in favour of Aktiengesellschaft für
Versorgungs-Unternehmen, Gevelsberg.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Site Plan
Subject property
Page 8
Hattingen III
Cluster 03
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Hattingen III
Cluster 03
n/a
01.09.2011
City
Date
Minimum
Average
Area
Monthly rent
Maximum
not applicable
Address
Date
01.06.2011
59 sq m
3.54 €/sq m
01.06.2011
59 sq m
3.81 €/sq m
15.07.2011
59 sq m
3.88 €/sq m
01.08.2011
59 sq m
3.91 €/sq m
15.06.2011
59 sq m
3.91 €/sq m
Address
Date
Area
Asking rent
Comments
12.09.2011
70 sq m
12.09.2011
70 sq m
12.09.2011
57 sq m
12.09.2011
78 sq m
57 sq m
Address
Date
Area
Price p. sq m
Comments
Address
Date
Area
Price p. sq m
Comments
45701 Herten
16.09.2011
2,896 sq m
323 € 8-storey apartment building, simple fit-out
42277 Wuppertal
15.09.2011
7,052 sq m
423 € 6-storey apartment building, better condition
42555 Velbert
15.09.2011
7,928 sq m
454 € 7-storey-apartment building, better condition
58300 Wetter
16.09.2011
1,540 sq m
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Hattingen III
45527
Hattingen
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Hattingen III
Cluster 03
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1950
n/a
n/a
Freehold
No
3,795 sq m
9.72%
No
Income year 1
as % of GRI
190,310 €
208,096 €
213,077 €
63,922 €
33.59%
NOI (month 1x12)
Net Cash Flow
126,387 €
100,691 €
SWOT-Analysis
Strenghts
Weaknesses
Let on market level,
Almost fully let,
Units fitted with balconies
Located in a basic residential area,
High noise exposure caused by neighbouring railway track
Opportunities
Threats
Higher fit-out and uplift potential,
Sustainable high occupancy at market rent
accommodations
Property
3
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
11.6
5.40%
10.6
6.16%
10.3
6.37%
Purchaser's costs
6.40%
per sq m
580 €
Page 1
14,087 8€
Market Value
2,200,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
2
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
3
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
A railway track is located adjacent.
Additional
comments
(suitability of the
location)
3
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
Plastic
Metal
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
Loggia
No
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
3
72
0
0
1950
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
3
1
Roof and windows have been renewed
approximately 20 years ago.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 1998
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
1
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
no
yes
no
no
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
no
reflected in our valuation: Repair of external facilities (stairs); cleaning and painting of facade; repair roof drain; renewal of electric
installations; repair of defects related to fire protection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
3
Access
3
Number of units
inspected
Residential
Commercial
5
0
Additional
comments
Lettability
Additional
comments
2
The property is in a fair condition and most units are
currently let. We assume hat the lettability is good
and therefore only minor additional measures are
required to maintain high occupancy.
Saleability
Additional
comments
Page 4
3
currently let; the demand for comparable properties
is fair. We assume that the saleability is fair so that
additional promotional measures are required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
72
0
0
0
72
Total lettable area
3,795 sq m
3,795 sq m
0 sq m
0 sq m
0 sq m
Units let
65
0
0
0
65
Area let
3,426 sq m
0 sq m
0 sq m
0 sq m
3,426 sq m
Vacant units
7
0
0
0
7
Vacant area
369 sq m
0 sq m
0 sq m
0 sq m
369 sq m
Vacancy rate area
9.72%
0.00%
0.00%
0.00%
9.72%
Vacancy rate units
9.72%
0.00%
0.00%
0.00%
9.72%
4.63 €
0.00 €
0.00 €
0.00 €
4.63 €
Current rent p.a.
243.99 €
0.00 €
0.00 €
0.00 €
243.99 €
190,310 €
0€
0€
0€
190,310 €
4.75 €
0.00 €
0.00 €
0.00 €
4.75 €
250.37 €
0.00 €
0.00 €
0.00 €
250.37 €
213,077 €
0€
0€
0€
213,077 €
Market rent p.a.
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
1.5%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
10.50 €/sq m
10.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
208,096 215,652 219,830 224,128 228,628 233,219 237,902 242,680 247,553 251,761 256,041
-17,786 -25,513 -20,043 -14,379 -14,624 -14,873 -15,125 -15,382 -15,644 -15,910 -16,180
190,310 190,138 199,787 209,749 214,005 218,347 222,777 227,297 231,909 235,851 239,861
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Gross Revenue
% Growth
190,310 190,138 199,787 209,749 214,005 218,347 222,777 227,297 231,909 235,851 239,861
-0.1%
5.1%
5.0%
2.0%
2.0%
2 0%
2.0%
2.0%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-15,840
-3,806
-9,515
0
-4,428
-30,333
0
-16,109
-3,803
-9,677
0
-5,371
-30,849
0
-16,383
-3,996
-9,842
0
-4,220
-31,373
0
-16,662
-4,195
-10,009
0
-3,027
-31,907
0
-16,945
-4,280
-10,179
0
-3,079
-32,449
0
-17,233
-4,367
-10,352
0
-3,131
-33,001
0
-17,526
-4,456
-10,528
0
-3,184
-33,562
0
-17,824
-4,546
-10,707
0
-3,238
-34,132
0
-18,127
-4,638
-10,889
0
-3,293
-34,713
0
-18,435
-4,717
-11,074
0
-3,349
-35,303
0
-18,748
-4,797
-11,263
0
-3,406
-35,903
0
% of Gross Revenue
-63,922
33.6%
-65,809
34 6%
-65,814
32.9%
-65,800
31.4%
-66,932
31.3%
-68,084
31.2%
-69,256
31.1%
-70,448
31.0%
-71,660
30.9%
-72,879
30.9%
-74,118
30.9%
126,387 124,329 133,973 143,949 147,072 150,263 153,521 156,849 160,249 162,973 165,743
Renovation Costs
Leasing Commissions
Capital Expenditure
-25,696
0
0
-34,174
0
-25,628
-34,755
0
0
-35,345
0
0
-27,489
0
0
-27,956
0
0
-28,431
0
0
-28,914
0
0
-29,406
0
0
-29,906
0
0
-30,414
0
0
-25,696
-59,802
-34,755
-35,345
-27,489
-27,956
-28,431
-28,914
-29,406
-29,906
-30,414
Net Cash Flow
% Growth
100,691
64,527
-35 9%
4.3%
2.8%
Gross Value
Purchaser's Costs
4.6%
617 €
5.2%
5.3%
5.5%
5.6%
5.7%
160.000
7,0%
140.000
6,0%
120.000
5,0%
100.000
4,0%
80.000
3,0%
60.000
2,0%
40.000
6.4%
1,0%
20.000
Net Value
Market Value
5.8%
Net Cash Flow
803,125 €
1,538,979 €
2,342,103 €
5.1%
2,201,225 €
Running Yield in %
4.2%
Running Net Yield
99,219 108,604 119,584 122,307 125,090 127,935 130,843 133,067 135,329
53.8%
9.5%
10.1%
2.3%
2 3%
2.3%
2.3%
1.7%
1.7%
0
0,0%
2,200,000 €
11.6 x
10.6 x
Net Initial Yield
5.4%
Direct Cap Rate
4.3%
580 €
180.000
40,0%
160.000
35,0%
140.000
30,0%
120.000
25,0%
100.000
20,0%
80.000
15,0%
60.000
10,0%
40.000
5,0%
20.000
0
0,0%
Page 6
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
Site Information
Site area
8,114 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Edmund-Weber-Str. 242-262a
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
3 backfilled bomb craters on the property; No hints for soil contamination in the past; Environmental risk is
considered low; No public land charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
22.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Herne-Wanne
18066
64
300, 334, 335, 336, 483, 485
Terra Heimbau 2
Parcel 300, 483:
Right to build, run and maintain a pipe together with construction and use limitations for the owner, in favour of
Emschergenossenschaft, Essen.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
Land Register
Extract dated
22.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Herne-Wanne
18076
64
497
Terra Heimbau 2
Right to build, run and maintain a pipe together with construction and use limitations for the owner, in favour of
Emschergenossenschaft, Essen.
Comments
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Site Plan
Subject property
Page 9
Herne
Cluster 04
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Herne
Cluster 04
n/a
01.09.2011
City
Herne
Date
01.01.2011
Minimum
Average
4.05 €/sq m
4.50 €/sq m
Maximum
4.95 €/sq m
Address
Date
Area
Monthly rent
Edmund-Weber-Str. 260
01.04.2011
53 sq m
3.93 €/sq m
Edmund-Web.-Str. 262a
01.08.2011
53 sq m
4.17 €/sq m
01.06.2011
53 sq m
4.59 €/sq m
01.04.2011
53 sq m
4.55 €/sq m
01.04.2011
53 sq m
4.61 €/sq m
Address
Date
Area
Asking rent
Comments
44651 Herne
12.09.2011
90 sq m
3.48 €/sq m 3,5-room apartment, attic floor, refurbished
44651 Herne
12.09.2011
76 sq m
4.34 €/sq m 3,5-room apartment, 1st floor, refurbished
Westfalenstr. 5, Herne
27.09.2011
70 sq m
4.86 €/sq m 2,5-room apartment, 1st floor, refurbished
Edm.-Web.-Str. 271, Hern 12.09.2011
86 sq m
4.89 €/sq m 3-room apartment, 2nd floor, partly refurbished
Friedrichstr. 19, Herne
62 sq m
12.09.2011
Address
Date
Area
Price p. sq m
Comments
Neustraße
01.07.1905
557 sq m
521 € Apartment building, not refurbished, fair location
Martinistraße
01.07.1905
749 sq m
Rottstraße
01.07.1905
541 sq m
H berniastraße
02.07.1905
568 sq m
Address
Date
Area
Price p. sq m
Comments
45886 Gelsenkirchen
15.09.2011
333 sq m
571 € 3-storey apartment building, six units
44649 Herne
15.09.2011
236 sq m
593 € 2-storey apartment building, refurbished
45888 Gelsenkirchen
15.09.2011
284 sq m
45886 Gelsenkirchen
15.09.2011
272 sq m
45886 Gelsenkirchen
15.09.2011
390 sq m
Page 10
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Herne
44651
Herne
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
Herne
Cluster 04
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1959
n/a
n/a
Freehold
No
9,827 sq m
30.21%
No
Income year 1
as % of GRI
367,328 €
508,565 €
532,141 €
191,409 €
52.11%
NOI (month 1x12)
Net Cash Flow
175,918 €
124,484 €
SWOT-Analysis
Strenghts
Weaknesses
Most of the units fitted with balconies,
Centrally located
Significant repair backlog,
Significant amount of capex required
Opportunities
Threats
refurbishment,
Higher fit-out and uplift potential
Longer reletting periods due to fairly poor situation and
condition,
works,
Only fair to weak demand expected for residential
accommodations in this location
Property
4
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
10.1
4.49%
7.3
8.09%
7.0
8.70%
Purchaser's costs
6.40%
per sq m
377 €
Page 1
23,567 5€
Market Value
3,700,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
2
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
4
1
1
2
3
4
As new
No obvious damage
Minor damage noted
3
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
12
2-4
161
0
0
1959
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
1
The buildings Horster Str. 241-251 and Marienstr.
28-42 have been refurbished approx. 20-30 years
ago.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 1980
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
1
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
we assume that extensive refurbishment works are required in order to re-let the apartments. Some of the buildings are inclined.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
yes
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
yes
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
reflected in our valuation: Cleaning and painting of the facade; replacement of windows; balcony repair; renewal of electric
installations; renewal of hea ing, water and wastwater pipes; repair waterproofing of external basement walls; redecoration of
staircases.
Page 3
yes
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
8
0
Additional
comments
Lettability
Additional
comments
4
lettability is significantly limited and vacancy can be
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
161
0
0
0
161
Total lettable area
9,827 sq m
9,827 sq m
0 sq m
0 sq m
0 sq m
Units let
115
0
0
0
115
Area let
6,858 sq m
0 sq m
0 sq m
0 sq m
6,858 sq m
Vacant units
46
0
0
0
46
Vacant area
2,969 sq m
0 sq m
0 sq m
0 sq m
2,969 sq m
Vacancy rate area
30.21%
0.00%
0.00%
0.00%
30.21%
Vacancy rate units
28.57%
0.00%
0.00%
0.00%
28.57%
4.46 €
0.00 €
0.00 €
0.00 €
4.46 €
Current rent p.a.
266.18 €
0.00 €
0.00 €
0.00 €
266.18 €
367,328 €
0€
0€
0€
367,328 €
4.75 €
0.00 €
0.00 €
0.00 €
4.75 €
289.93 €
0.00 €
0.00 €
0.00 €
289.93 €
532,141 €
0€
0€
0€
532,141 €
Market rent p.a.
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
508,565 547,841 558,196 569,454 583,090 597,056 611,361 626,012 641,019 651,916 662,999
-141,237 -157,595 -115,177 -71,272 -72,483 -73,716 -74,969 -76,243 -77,539 -78,858 -80,198
367,328 390,246 443,019 498,182 510,606 523,340 536,392 549,769 563,480 573,059 582,801
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Gross Revenue
% Growth
367,328 390,246 443,019 498,182 510,606 523,340 536,392 549,769 563,480 573,059 582,801
6 2%
13.5%
12.5%
2.5%
2.5%
2.5%
2.5%
2.5%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-35,420
-7,347
-18,366
0
-35,630
-94,646
0
% of Gross Revenue
-36,022
-7,805
-18,679
0
-33,178
-96,255
0
-36,635
-8,860
-18,996
0
-24,248
-97,891
0
-37,257 -37,891 -38,535 -39,190 -39,856 -40,534 -41,223 -41,924
-9,964 -10,212 -10,467 -10,728 -10,995 -11,270 -11,461 -11,656
-19,319 -19,648 -19,982 -20,321 -20,667 -21,018 -21,375 -21,739
0
0
0
0
0
0
0
0
-15,005 -15,260 -15,519 -15,783 -16,051 -16,324 -16,602 -16,884
-99,556 -101,248 -102,969 -104,720 -106,500 -108,310 -110,152 -112,024
0
0
0
0
0
0
0
0
-191,409 -191,939 -186,630 -181,100 -184,258 -187,471 -190,742 -194,069 -197,456 -200,813 -204,226
52.1%
49 2%
42.1%
36.4%
36.1%
35.8%
35 6%
35.3%
35.0%
35.0%
35.0%
175,918 198,307 256,389 317,082 326,348 335,869 345,650 355,700 366,024 372,246 378,574
Renovation Costs
Leasing Commissions
Capital Expenditure
-51,435 -115,386 -117,347 -119,342
0
0
0
0
0
0 -627,559 -24,390
-55,023
0
-24,805
-55,958
0
-25,226
-51,435 -115,386 -744,906 -143,732
-79,827
-81,184 -137,230 -139,563 -141,935 -144,348 -146,802
Net Cash Flow
% Growth
124,484
Gross Value
Purchaser's Costs
-58,861
0
-83,075
-59,861
0
-84,487
-60,879
0
-85,923
2.1%
-12.5%
4.4%
399 €
6.5%
5.3%
5.5%
5.7%
5.8%
300.000
7,0%
200.000
6,0%
100.000
5,0%
0
100.000
200.000
3,0%
300.000
400.000
1,0%
500.000
3,682,421 €
Market Value
3,700,000 €
4,0%
2,0%
6.4%
Net Value
5.9%
Net Cash Flow
775,492 €
3,142,604 €
3,918,096 €
6.3%
Running Yield in %
3.2%
-57,877
0
-81,686
82,921 -488,518 173,349 246,521 254,685 208,421 216,137 224,089 227,898 231,773
-33.4% -689.1% -135.5%
42.2%
3.3% -18 2%
3.7%
3.7%
1.7%
1.7%
Running Net Yield
-56,909
0
-80,320
600.000
0,0%
Net Initial Yield
Direct Cap Rate
10.1 x
7.3 x
4.5%
3.2%
400.000
60,0%
350.000
50,0%
300.000
40,0%
250.000
200.000
30,0%
150.000
20,0%
100.000
10,0%
50.000
0
0,0%
Page 6
377 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Site Information
Site area
9,731 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Almastr. 1-25, Horsterstr. 241-251, Marienstr. 28-42
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
3276
59
13, 14, 15, 189, 192, 193, 194, 195, 196, 197, 12/186, 191/187, 227
Terra Heimbau 2
No restrictions
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
20856, 20855, 20853, 20851, 20849, 20857, 20854, 20852, 20850
59
225, 223, 184, 182, 180, 228, 198, 183, 181
Terra Heimbau 2
No restrictions
Comments
The cadastral plan for parcel no. 223 is missing. We have not been provided with extracts from the land
register. The information stated above is obtained from a summary schedule prepared by CMS Hasche Sigle.
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
20847
59
177
Terra Heimbau 2
Limited personal easement, right to run drain pipes together with construction and use limitations for the owner,
in favour of the city of Gladbeck.
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
20848
59
178
Terra Heimbau 2
Limited personal easement, right to run drain pipes together with construction and use limitations for the owner,
in favour of the city of Gladbeck.
Comments
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Site Plan
Subject property
Page 10
Gladbeck I
Cluster 05
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Gladbeck I
Cluster 05
n/a
01.09.2011
City
Gladbeck
Date
01.02.2011
Minimum
Average
4.10 €/sq m
4.50 €/sq m
Maximum
4.90 €/sq m
Address
Date
Area
Monthly rent
Marienstr. 32
01.04.2011
67 sq m
3.95 €/sq m
Horsterstr. 249
01.08.2011
52 sq m
4.61 €/sq m
Horsterstr. 245B
01.04.2011
52 sq m
4.61 €/sq m
Marienstr. 34
01.08.2011
67 sq m
4.62 €/sq m
Marienstr. 34
01.03.2011
67 sq m
5.11 €/sq m
Address
Date
Area
Asking rent
Comments
Marienstr., Gladbeck
09.09.2011
63 sq m
4.44 €/sq m 3,5-room apartment, 3rd floor, refurbished
Marienstr. 46, Gladbeck
09.09.2011
51 sq m
4.82 €/sq m 2-room apartment, ground floor
Roßheidestr. 23, Gladb.
09.09.2011
56 sq m
Roßheidestr. 23, Gladb.
09.09.2011
54 sq m
Horster Str. 267, Gladb.
09.09.2011
59 sq m
5.25 €/sq m 2-room apartment, refurbished
Address
Date
Area
Price p. sq m
Comments
Gladbeck-Brauck
03.07.1905
283 sq m
442 € 2-storey apartment building, built 1955, better condition
Gladbeck-Butendorf
03.07.1905
380 sq m
Gladbeck-Stadtmitte
03.07.1905
292 sq m
Gladbeck-Rentfort
03.07.1905
345 sq m
547 € 3-storey apartment building, built 1959, better location
Gladbeck-Stadtmitte
03.07.1905
263 sq m
Address
Date
Area
Price p. sq m
Comments
45897 Gladbeck
15.09.2011
1,549 sq m
45899 Gelsenkirchen
15.09.2011
650 sq m
561 € 3,5-storey apartment building, better condition
45899 Gelsenkirchen
15.09.2011
387 sq m
Page 11
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck I
45968
Gladbeck
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 12
Gladbeck I
Cluster 05
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1961
n/a
n/a
Leasehold
No
3,749 sq m
6.75%
No
Income year 1
as % of GRI
194,477 €
203,552 €
208,372 €
58,824 €
30.25%
NOI (month 1x12)
Net Cash Flow
135,653 €
118,171 €
SWOT-Analysis
Strenghts
Weaknesses
Almost fully let,
Parts of the property have already been refurbished
Repair backlog for some parts of the property,
Basic to fair residential location
Opportunities
Threats
Adding balconies,
works
Property
3
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
10.8
6.15%
10.3
6.57%
10.1
6.79%
Purchaser's costs
6.40%
per sq m
560 €
Page 1
13,257 2€
Market Value
2,100,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
2
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
1
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
6
2-3
74
0
0
1961
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
1
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
1
The buildings Bohnkampstr. 29-51 have been
refurbished approx. 20-30 years ago.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Heating
Additional
comments
2 Apartment heating
3 District heating
4 Stove heating
Installed
2003
1
Electrical wiring
2 Out-dated
1
Water and
sewage pipes
2 Out-dated
1
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
2
1 No visible issues
1
The units at Bohnekampstr. 29-51 are fitted with central heating system, whereas he units at Bohnekampstr. 52-65 are fitted
with apartment gas heating systems.
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Partly refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Partly refurbished
inspection. According to the information provided during inspection the apartment heating systems at Bohnekampstr. 52-65 need
to be replaced.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
no
no
no
no
yes
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
yes
no
no
Entrance and
common areas
2
no
reflected in our valuation: Cleaning and painting of the facade; repair waterproofing of external basement walls.
Page 3
no
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
3
Access
3
Number of units
inspected
Residential
Commercial
5
0
Additional
comments
Lettability
Additional
comments
3
currently let. We assume hat the lettability is fair
and therefore additional measures are required to
increase occupancy.
Saleability
Additional
comments
Page 4
3
currently let; the demand for comparable properties
is fair. We assume that the saleability is fair so that
additional promotional measures are required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
74
0
0
0
74
Total lettable area
3,749 sq m
3,749 sq m
0 sq m
0 sq m
0 sq m
Units let
69
0
0
0
69
Area let
3,496 sq m
0 sq m
0 sq m
0 sq m
3,496 sq m
Vacant units
5
0
0
0
5
Vacant area
253 sq m
0 sq m
0 sq m
0 sq m
253 sq m
Vacancy rate area
6.75%
0.00%
0.00%
0.00%
6.75%
Vacancy rate units
6.76%
0.00%
0.00%
0.00%
6.76%
4.64 €
0.00 €
0.00 €
0.00 €
4.64 €
Current rent p.a.
234.88 €
0.00 €
0.00 €
0.00 €
234.88 €
194,477 €
0€
0€
0€
194,477 €
4.75 €
0.00 €
0.00 €
0.00 €
4.75 €
240.67 €
0.00 €
0.00 €
0.00 €
240.67 €
208,372 €
0€
0€
0€
208,372 €
Market rent p.a.
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
2.5%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
9.50 €/sq m
9.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
203,552 213,208 217,377 221,646 226,051 230,545 235,128 239,803 244,570 248,728 252,956
-9,075 -22,014 -19,558 -17,012 -17,301 -17,595 -17,894 -18,199 -18,508 -18,823 -19,143
194,477 191,194 197,819 204,634 208,750 212,950 217,234 221,604 226,062 229,905 233,813
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Gross Revenue
% Growth
194,477 191,194 197,819 204,634 208,750 212,950 217,234 221,604 226,062 229,905 233,813
-1.7%
3.5%
3.4%
2.0%
2.0%
2 0%
2.0%
2.0%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-16,280
-3,890
-9,724
0
-3,035
-25,895
0
-16,557
-3,824
-9,889
0
-4,635
-26,336
0
-16,838
-3,956
-10,057
0
-4,117
-26,783
0
-17,124
-4,093
-10,228
0
-3,581
-27,239
0
-17,416
-4,175
-10,402
0
-3,642
-27,702
0
-17,712
-4,259
-10,579
0
-3,704
-28,173
0
-18,013
-4,345
-10,759
0
-3,767
-28,651
0
-18,319
-4,432
-10,942
0
-3,831
-29,139
0
-18,630
-4,521
-11,128
0
-3,896
-29,634
0
-18,947
-4,598
-11,317
0
-3,963
-30,138
0
-19,269
-4,676
-11,509
0
-4,030
-30,650
0
% of Gross Revenue
-58,824
30.2%
-61,240
32 0%
-61,753
31.2%
-62,265
30.4%
-63,337
30.3%
-64,426
30.3%
-65,535
30 2%
-66,663
30.1%
-67,810
30.0%
-68,962
30.0%
-70,135
30.0%
135,653 129,954 136,067 142,368 145,414 148,523 151,699 154,941 158,252 160,943 163,679
Renovation Costs
Leasing Commissions
Capital Expenditure
-17,482
0
0
-20,349
0
0
-20,695
0
0
-21,047
0
0
-18,702
0
0
-19,020
0
0
-19,343
0
0
-19,672
0
0
-20,006
0
0
-20,346
0
0
-20,692
0
0
-17,482
-20,349
-20,695
-21,047
-18,702
-19,020
-19,343
-19,672
-20,006
-20,346
-20,692
Net Cash Flow
% Growth
118,171 109,605 115,372 121,321 126,712 129,504 132,356 135,269 138,246 140,596 142,986
-7 2%
5.3%
5.2%
4.4%
2.2%
2 2%
2.2%
2.2%
1.7%
1.7%
Gross Value
Purchaser's Costs
5.0%
5.2%
5.5%
588 €
5.9%
6.0%
6.1%
6.3%
6.4%
160.000
7,0%
140.000
6,0%
120.000
5,0%
100.000
4,0%
80.000
3,0%
60.000
2,0%
40.000
6.4%
1,0%
20.000
Net Value
Market Value
6.5%
Net Cash Flow
880,739 €
1,323,269 €
2,204,008 €
5.7%
2,071,436 €
Running Yield in %
5.4%
Running Net Yield
0
0,0%
2,100,000 €
Net Initial Yield
Direct Cap Rate
10.8 x
10.3 x
6.2%
5.4%
180.000
35,0%
160.000
30,0%
140.000
25,0%
120.000
100.000
20,0%
80.000
15,0%
60.000
10,0%
40.000
5,0%
20.000
0
0,0%
Page 6
560 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Site Information
Site area
22,810 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Bohnekampstr. 29-65, Knappenstr. 1, Eisenstr. 2
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
(clearance areas) concerning Bohnekampstr. 29-55 and further ones for Knappenstr. 1 and Eisenstr. 2
Leasehold
Yes
see comm.
Listed status
Expiry of leasehold
No
19.02.2056
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
No preservation or design statute; Inner zone statute Rott-/Bohnekampstr. (two storeys obligatory, one building three storeys;
northern parcels of the designated area: detached and semi-detached houses only); Owner's inheritable building rights (289.39 €
ground lease for parcel no. 26)
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
8785A
20
150, 151
Terra Heimbau 2
Parcel 150:
Limited personal easement, occupancy limitation in favour of the city of Gladbeck.
Parcel 150, 151:
Easement, waiver of claims for damages due to immission, in favour of each owner of the properties listed as
beneficiary.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
22104
20
114
Terra Heimbau 2
No restrictions
Comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
20743
20
26
Terra Heimbau 2
Heritable building right (the term of heritable building right is 99 years and started on the 19 February 1957), in
favour of Terra Heimbau 2 (owner's inheritable building right).
beneficiary.
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gladbeck
4225
20
26
Terra Heimbau 2
Ground rent (DM 566,00 = EUR 289.39 - anually), in favour of the respective owner of the property, currently
Terra Heimbau 2, (owner's inheritable building right).
beneficiary.
Comments
Heritable building right register; We have not been provided with extracts from the land register. The
information stated above is obtained from a summary schedule prepared by CMS Hasche Sigle.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Site Plan
Subject property
Page 10
Gladbeck II
Cluster 06
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Gladbeck II
Cluster 06
n/a
01.09.2011
City
Gladbeck
Date
01.02.2011
Minimum
Average
5.55 €/sq m
5.90 €/sq m
Maximum
6.25 €/sq m
Address
Date
Area
Monthly rent
Bohnekampstr. 65
01.07.2011
60 sq m
4.52 €/sq m
Bohnekampstr. 63
01.05.2011
66 sq m
4.52 €/sq m
Bohnekampstr. 63
01.07.2011
59 sq m
4.56 €/sq m
Bohnekampstr. 61
01.05.2011
60 sq m
4.80 €/sq m
Bohnekampstr. 35
15.07.2011
40 sq m
4.81 €/sq m
Address
Date
Area
Asking rent
Comments
Scheideweg 83, Gelsen.
12.09.2011
70 sq m
4.30 €/sq m 3-room apartment, partly refurbished, balcony
Tunnelstr. 72d, Gladbeck
12.09.2011
85 sq m
4.59 €/sq m 3,5-room apartment, refurbished, lift
Scheideweg 87, Gelsenk.
12.09.2011
73 sq m
4.60 €/sq m 3-room apartment, partly refurbished, balcony
Döwelingsweg 8, Gladb.
12.09.2011
76 sq m
4.93 €/sq m 3,5-room apartment, refurbished, balcony
Tunnelstr. 72b, Gladbeck
12.09.2011
67 sq m
5.00 €/sq m 3,5-room apartment, refurbished, lift
Address
Date
Area
Price p. sq m
Comments
Gladbeck-Rentfort
03.07.1905
345 sq m
547 € 2-storey apartment building, built 1950
Gladbeck-Stadtmitte
03.07.1905
263 sq m
Gladbeck-Butendorf
03.07.1905
340 sq m
Gladbeck-Butendorf
03.07.1905
458 sq m
Gladbeck-Butendorf
02.07.1905
460 sq m
Address
Date
Area
Price p. sq m
Comments
45897 Gelsenkirchen
15.09.2011
1,549 sq m
45899 Gelsenkirchen
15.09.2011
650 sq m
561 € 3,5-storey apartment building, ten units
45966 Gladbeck
15.09.2011
435 sq m
45966 Gladbeck
15.09.2011
888 sq m
Page 11
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gladbeck II
45968
Gladbeck
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 12
Gladbeck II
Cluster 06
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1950
n/a
n/a
Freehold
No
10,540 sq m
25.27%
No
Income year 1
as % of GRI
447,055 €
576,647 €
560,114 €
190,714 €
42.66%
NOI (month 1x12)
Net Cash Flow
256,341 €
216,958 €
SWOT-Analysis
Strenghts
Weaknesses
Let on market level,
Sufficient parking spaces on site
No balconies,
High noise exposure caused by neighbouring railroad track
Opportunities
Threats
Adding balconies,
works,
Property
3
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
12.5
4.36%
9.7
6.57%
10.0
6.29%
Purchaser's costs
5.80%
per sq m
531 €
Page 1
32,197 4€
Market Value
5,600,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
2
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
2
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Railway track is located adjacent.
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
Roof tiles
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
1
Entrance
3 Unrefurbished
2
Additional
comments
Page 2
1
17
2-3
172
0
30
1950
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
2
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
2
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 1980
1
Electrical wiring
2 Out-dated
1
Water and
sewage pipes
2 Out-dated
1
Warm water
supply
1 Central
2 Boiler
1
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Fully refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Fully refurbished
inspection.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
no
no
no
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
yes
yes
yes
Entrance and
common areas
2
no
no
reflected in our valuation: Roof insulation; cleaning and painting of the facade; repair waterproofing of external basement walls;
repair of external facilities.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
3
Access
3
Number of units
inspected
Residential
Commercial
5
0
Additional
comments
Lettability
Additional
comments
3
considerable vacancy. We assume that the
lettability is only fair and additional measures are
required to increase occupancy.
Saleability
Additional
comments
Page 4
3
required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
172
0
30
0
202
Total lettable area
10,540 sq m
10,540 sq m
0 sq m
0 sq m
0 sq m
Units let
131
0
11
0
142
Area let
7,877 sq m
0 sq m
0 sq m
0 sq m
7,877 sq m
Vacant units
41
0
19
0
60
Vacant area
2,663 sq m
0 sq m
0 sq m
0 sq m
2,663 sq m
Vacancy rate area
25.27%
0.00%
0.00%
0.00%
25.27%
Vacancy rate units
23.84%
0.00%
63.33%
0.00%
29.70%
4.67 €
0.00 €
0.00 €
0.00 €
4.73 €
Current rent p.a.
281.09 €
0.00 €
39.30 €
0.00 €
262.36 €
441,867 €
0€
5,188 €
0€
447,055 €
4.50 €
0.00 €
0.00 €
0.00 €
4.54 €
275.75 €
0.00 €
14.41 €
0.00 €
236.99 €
554,926 €
0€
5,188 €
0€
560,114 €
Market rent p.a.
Parking
1%
Residential
99%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
2.5%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
10.50 €/sq m
10.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
571,458 593,796 602,893 611,724 619,444 627,263 635,182 643,202 651,325 662,398 673,658
-129,591 -137,760 -98,458 -57,779 -58,762 -59,761 -60,776 -61,810 -62,860 -63,929 -65,016
441,867 456,036 504,435 553,945 560,683 567,503 574,406 581,393 588,465 598,469 608,643
5,188
0
0
0
5,188
8,154
0
0
0
8,154
11,220
0
0
0
11,220
14,387
0
0
0
14,387
14,632
0
0
0
14,632
14,880
0
0
0
14,880
15,133
0
0
0
15,133
15,391
0
0
0
15,391
15,652
0
0
0
15,652
15,918
0
0
0
15,918
16,189
0
0
0
16,189
Total Gross Revenue
% Growth
447,055 464,190 515,655 568,332 575,315 582,383 589,539 596,783 604,117 614,387 624,832
3 8%
11.1%
10.2%
1.2%
1.2%
1 2%
1.2%
1.2%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-37,944
-8,941
-22,353
-1,200
-31,960
-88,316
0
% of Gross Revenue
-38,589
-9,284
-22,733
-1,220
-30,613
-89,818
0
-39,245
-10,313
-23,119
-1,241
-21,879
-91,344
0
-39,912
-11,367
-23,512
-1,262
-12,840
-92,897
0
-40,590
-11,506
-23,912
-1,284
-13,058
-94,477
0
-41,281
-11,648
-24,318
-1,306
-13,280
-96,083
0
-41,982
-11,791
-24,732
-1,328
-13,506
-97,716
0
-42,696 -43,422 -44,160 -44,911
-11,936 -12,082 -12,288 -12,497
-25,152 -25,580 -26,015 -26,457
-1,350
-1,373
-1,397
-1,420
-13,735 -13,969 -14,206 -14,448
-99,377 -101,067 -102,785 -104,532
0
0
0
0
-190,714 -192,257 -187,142 -181,790 -184,827 -187,915 -191,055 -194,247 -197,493 -200,850 -204,265
43.2%
42 2%
37.1%
32.8%
33.0%
33.1%
33 3%
33.4%
33.6%
33.6%
33.6%
256,341 271,934 328,513 386,542 390,487 394,468 398,485 402,537 406,624 413,537 420,567
Renovation Costs
Leasing Commissions
Capital Expenditure
-39,383
0
0
-81,041
0
0
-82,419
0
0
-83,820
0
0
-42,130
0
0
-42,846
0
0
-43,574
0
0
-44,315
0
0
-45,069
0
0
-45,835
0
0
-46,614
0
0
-39,383
-81,041
-82,419
-83,820
-42,130
-42,846
-43,574
-44,315
-45,069
-45,835
-46,614
Net Cash Flow
% Growth
216,958 190,892 246,094 302,722 348,358 351,622 354,910 358,221 361,556 367,702 373,953
-12 0%
28.9%
23.0%
15.1%
0.9%
0 9%
0.9%
0.9%
1.7%
1.7%
Gross Value
Purchaser's Costs
3.3%
4.2%
5.2%
557 €
6.0%
6.0%
6.1%
6.2%
6.3%
400.000
7,0%
350.000
6,0%
300.000
5,0%
250.000
4,0%
200.000
3,0%
150.000
2,0%
100.000
5.8%
1,0%
50.000
Net Value
Market Value
6.4%
Net Cash Flow
2,212,625 €
3,660,632 €
5,873,257 €
5.9%
5,551,283 €
Running Yield in %
3.7%
Running Net Yield
0
0,0%
5,600,000 €
Net Initial Yield
Direct Cap Rate
12.5 x
9.7 x
4.4%
3.7%
531 €
450.000
45,0%
400.000
40,0%
350.000
35,0%
300.000
30,0%
250.000
25,0%
200.000
20,0%
150.000
15,0%
100.000
10,0%
50.000
5,0%
0
0,0%
Page 6
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
Site Information
Site area
26,217 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Hultschiner Str. 2-8, 1-3, Reichenberger Str. 14, 17-39, Schönauer Str. 1-8, Trautenauer Str. 1-7
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
Not registered in the register of contaminated sites; No hints for soil contamination in the past; Environmental
risk is considered low; Several parcels have to be treated as one unit (Reichenberger Str. 17-23); Public land
charges (parking spaces) (Reichenberger Str. 19a, 27 and Hultschiner Str. 2-8)
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
30.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
3166
1
323, 322, 432
Terra Heimbau 2
Parcels 323, 322, 432:
Easement, waiver of claims for damages due to immission in favour of each owner of the properties listed as
beneficiary. The Cadastral plan for parcel no. 432 is missing.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
Land Register
Extract dated
30.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
1317
1
9, 12, 8, 10, 11, 13, 15, 361, 364, 365, 17
Terra Heimbau 2
Parcel 15:
Limited personal easement, right to run a pipe, construction and maintenance of a transformer substation
together with a ban on construction and a prohibition of endangerment of the pipes, in favour of Emscher Lippe
Energie GmbH in Gelsenkirchen.
Parcels 361, 364:
Limited personal easement, occupancy limitation in favour of Wohnungsbauförderungsanstalt NordrheinWestfalen, Anstalt der Westdeutschen Landesbank Girozentrale, Düsseldorf.
Parcel 9, 12, 8, 17:
beneficiary.
Comments
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
330
1
360
Terra Heimbau 2
beneficiary.
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Site Plan
Subject property
Page 9
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
City
Gelsenkirchen
Date
01.01.2008
Minimum
Average
3.85 €/sq m
4.28 €/sq m
Maximum
4.71 €/sq m
Address
Date
Area
Monthly rent
Hultschiner Str. 6
01.08.2011
48 sq m
4.14 €/sq m
Hultschiner Str. 4
15.07.2011
46 sq m
4.33 €/sq m
Reichenberger Str. 37a
15.07.2011
60 sq m
4.52 €/sq m
Reichenberger Str. 21
01.07.2011
73 sq m
4.52 €/sq m
Reichenberger Str. 17
01.08.2011
43 sq m
4.64 €/sq m
Address
Date
Area
Asking rent
Comments
09.09.2011
56 sq m
Schul.-Berge-Str. 3, Glad. 27.09.2011
80 sq m
4.76 €/sq m 3,5-room apartment, attic floor, partly refurbished
Wiesmannstr. 15, Gladb.
27.09.2011
74 sq m
4.77 €/sq m 3-room apartment, attic floor, better location
A. d. Schol b. 13, Gelsen.
09.09.2011
65 sq m
4.77 €/sq m 3-room apartment, 2nd floor, refurbished
A. d. Schol b. 15, Gelsen.
09.09.2011
60 sq m
5.17 €/sq m 3,5-room apartment, 2nd floor, refurbished
Buerer Str. 44, Gelsenk.
Address
Date
Area
Price p. sq m
Comments
Hüllen
02.07.1905
502 sq m
Bismarck
02.07.1905
529 sq m
Schalke
02.07.1905
352 sq m
523 € 4-storey apartment build., built 1956, better loc., worse cond.
Gelsenkirchen
02.07.1905
992 sq m
Schalke
02.07.1905
280 sq m
Address
Date
Area
Price p. sq m
Comments
45899 Gelsenkirchen
15.09.2011
639 sq m
45899 Gelsenkirchen
15.09.2011
650 sq m
561 € 3,5-storey apartment building, refurbished
45899 Gelsenkirchen
15.09.2011
387 sq m
581 € 4-storey apartment building, seven units
45899 Gelsenkirchen
15.09.2011
460 sq m
45899 Gelsenkirchen
15.09.2011
319 sq m
Page 10
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen I
45899
Gelsenkirchen
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
Gelsenkirchen I
Cluster 07
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1914
n/a
n/a
Freehold
No
5,719 sq m
26.84%
No
Income year 1
as % of GRI
229,454 €
296,897 €
297,430 €
112,714 €
49.12%
NOI (month 1x12)
Net Cash Flow
116,740 €
85,361 €
SWOT-Analysis
Strenghts
Weaknesses
Quiet residential area,
Sufficient parking spaces on site,
Partly fitted with balconies
Repair backlog,
Basic to fair residential location
Opportunities
Threats
refurbishment
accommodations,
Property
5
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
9.6
5.05%
7.4
7.97%
7.4
8.00%
Purchaser's costs
6.40%
per sq m
385 €
Page 1
13,896 2€
Market Value
2,200,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
2
1
2
3
4
1
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
4
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
Plastic
Metal
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
Loggia
No
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2-4
107
0
8
1914
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
8
1
Approximately 1/3 of the units are fitted with
balconies.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca.1981
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
1
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
yes
yes
yes
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
yes
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
yes
yes
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
yes
no
Entrance and
common areas
2
no
no
The building structure is inclined. According to the technical due diligence prepared by Drees&Sommer the following repair works
are required and have been reflected in our valuation: Examine cracks statically by an expert; replacement of roof membrane;
redecoration of staircases; replacement of windows; cleaning and pain ing of the facade; repair waterproofing of external
basement walls; repair of defects related to fire protection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
5
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
5
Access
3
Number of units
inspected
Residential
Commercial
5
0
Additional
comments
Lettability
Additional
comments
4
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
107
0
8
0
115
Total lettable area
5,719 sq m
5,719 sq m
0 sq m
0 sq m
0 sq m
Units let
76
0
8
0
84
Area let
4,184 sq m
0 sq m
0 sq m
0 sq m
4,184 sq m
Vacant units
31
0
0
0
31
Vacant area
1,535 sq m
0 sq m
0 sq m
0 sq m
1,535 sq m
Vacancy rate area
26.84%
0.00%
0.00%
0.00%
26.84%
Vacancy rate units
28.97%
0.00%
0.00%
0.00%
26.96%
4.49 €
0.00 €
0.00 €
0.00 €
4.57 €
Current rent p.a.
247.14 €
0.00 €
42.31 €
0.00 €
227.63 €
225,392 €
0€
4,062 €
0€
229,454 €
4.50 €
0.00 €
0.00 €
0.00 €
4.56 €
240.51 €
0.00 €
42.31 €
0.00 €
226.87 €
293,368 €
0€
4,062 €
0€
297,430 €
Market rent p.a.
Parking
2%
Residential
98%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
292,835 313,576 318,939 324,407 330,007 335,704 341,500 347,395 353,392 359,400 365,510
-67,443 -80,512 -60,511 -39,807 -40,483 -41,171 -41,871 -42,583 -43,307 -44,043 -44,792
225,392 233,064 258,428 284,600 289,524 294,533 299,628 304,812 310,085 315,357 320,718
4,062
0
0
0
4,062
3,958
0
0
0
3,958
3,851
0
0
0
3,851
3,738
0
0
0
3,738
3,802
0
0
0
3,802
3,866
0
0
0
3,866
3,932
0
0
0
3,932
3,999
0
0
0
3,999
4,067
0
0
0
4,067
4,136
0
0
0
4,136
4,206
0
0
0
4,206
Total Gross Revenue
% Growth
229,454 237,022 262,279 288,338 293,326 298,399 303,560 308,811 314,152 319,493 324,924
3 3%
10.7%
9.9%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-23,621
-4,589
-11,473
-320
-18,419
-54,292
0
% of Gross Revenue
-24,023
-4,740
-11,668
-325
-17,892
-55,215
0
-24,431
-5,246
-11,866
-331
-13,447
-56,154
0
-24,847
-5,767
-12,068
-337
-8,846
-57,108
0
-25,269
-5,867
-12,273
-342
-8,996
-58,079
0
-25,698
-5,968
-12,482
-348
-9,149
-59,067
0
-26,135
-6,071
-12,694
-354
-9,305
-60,071
0
-26,580
-6,176
-12,910
-360
-9,463
-61,092
0
-27,031
-6,283
-13,129
-366
-9,624
-62,130
0
-27,491
-6,390
-13,352
-372
-9,787
-63,187
0
-27,958
-6,498
-13,579
-379
-9,954
-64,261
0
-112,714 -113,863 -111,474 -108,972 -110,826 -112,712 -114,630 -116,580 -118,564 -120,580 -122,629
50.0%
48 9%
43.1%
38.3%
38.3%
38.3%
38 3%
38.2%
38.2%
38.2%
38.2%
116,740 123,159 150,804 179,366 182,499 185,687 188,930 192,231 195,588 198,913 202,295
Renovation Costs
Leasing Commissions
Capital Expenditure
-31,379
0
0
-63,463
0
-31,527
-64,541
0
0
-65,639
0
0
-33,567
0
0
-34,138
0
0
-34,718
0
0
-35,308
0
0
-35,909
0
0
-36,519
0
0
-37,140
0
0
-31,379
-94,990
-64,541
-65,639
-33,567
-34,138
-34,718
-35,308
-35,909
-36,519
-37,140
3.7%
Gross Value
Purchaser's Costs
28,170 86,263 113,728 148,932 151,549 154,212 156,922 159,679 162,394 165,155
-67 0% 206.2%
31.8%
31.0%
1.8%
1 8%
1.8%
1.8%
1.7%
1.7%
1.2%
3.7%
4.9%
404 €
6.6%
6.7%
6.8%
6.9%
7.0%
6.4%
180.000
8,0%
160.000
7,0%
140.000
6,0%
120.000
5,0%
100.000
4,0%
80.000
3,0%
60.000
2,0%
40.000
1,0%
20.000
Net Value
Market Value
7.1%
Net Cash Flow
822,011 €
1,488,228 €
2,310,238 €
6.4%
2,171,277 €
Running Yield in %
Running Net Yield
85,361
Net Cash Flow
% Growth
0
0,0%
2,200,000 €
9.6 x
7.4 x
Net Initial Yield
5.1%
Direct Cap Rate
3.7%
250.000
60,0%
50,0%
200.000
40,0%
150.000
30,0%
100.000
20,0%
50.000
10,0%
0
0,0%
Page 6
385 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Site Information
Site area
13,224 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Laurentiusstr. 9-23, 11A, B, 15A-C, Sandstr. 45-55
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
Not registered in the register of contaminated sites; No comercial or industrial land use; No hints for soil
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
No preservation or design statute; Re-development area D Horst-Süd, Heßler-West (simplified procedure, probably no service
charges)
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
319
8
389, 390, 395, 467, 466
Terra Heimbau 2
Parcel 466:
Limited personal easement, right to run a transformer substation in favour of Emscher Lippe Energie GmbH in
Gelsenkirchen.
Parcel 389, 390, 395, 467, 466:
beneficiary.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
1312
8
182, 391, 393, 394, 418, 496, 497, 498
Terra Heimbau 2
Parcel 418:
Easement, right of way in favour of the respective owner of the property listed as beneficiary.
Parcel 497:
Limited personal easement, right to build, run and maintain a transformer station, in favour of Emscher Lippe
Energie GmbH in Gelsenkirchen.
Parcels 182, 391, 393, 394, 418, 496, 497, 498:
beneficiary.
Comments
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
336
8
176, 177, 178
Terra Heimbau 2
Parcels 176, 177, 178:
beneficiary.
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
1791
8
396, 499
Terra Heimbau 2
Parcels 396, 499:
beneficiary.
Comments
Land Register
Extract dated
30.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Gelsenkirchen-Buer
3166
1
805
Terra Heimbau 2
Parcels 805:
beneficiary.
Comments
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Site Plan
Subject property
Page 10
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
City
Gelsenkirchen
Date
01.01.2008
Minimum
Average
3.96 €/sq m
4.40 €/sq m
Maximum
4.84 €/sq m
Address
Date
Area
Monthly rent
Laurentiusstr. 11A
01.06.2011
68 sq m
4.56 €/sq m
Laurentiusstr. 21
15.07.2011
46 sq m
4.61 €/sq m
Laurentiusstr. 15B
01.06.2010
68 sq m
4.63 €/sq m
Laurentiusstr. 15C
01.02.2011
68 sq m
4.63 €/sq m
Laurentiusstr. 19
01.03.2011
45 sq m
4.68 €/sq m
Address
Date
Devensstr. 111, Gelsenk.
12.09.2011
Area
89 sq m
Asking rent
4.04 €/sq m 3,5-room apartment, 1st floor, partly refurbished
Comments
Poststr. 16, Gelsenkirch.
12.09.2011
65 sq m
4.12 €/sq m 2,5-room apartment, 2nd floor
Friedrichstr. 8, Gelsenk.
12.09.2011
86 sq m
4.19 €/sq m 3,5-room apartment, 2nd floor, partly refurbished
Bremer Str. 4, Gladbeck
27.09.2011
68 sq m
Marienfriedstr. 34, Gels.
12.09.2011
62 sq m
Address
Date
Area
Price p. sq m
Comments
Erle
02.07.1905
551 sq m
290 € 2-storey apartm. build., built 1900, better locat., worse condit.
Buer-Mitte
02.07.1905
480 sq m
Rotthausen
02.07.1905
409 sq m
Buer-Mitte
02.07.1905
336 sq m
540 € 2-storey apartm. build., built 1906, better locat., better condit.
Horst
02.07.1905
362 sq m
746 € 3-storey apartm. build., built 1923, better locat., better condit.
Address
Date
Area
1,374 sq m
Price p. sq m
Comments
45881 Gelsenkirchen
15.09.2011
45899 Gelsenkirchen
15.09.2011
639 sq m
45897 Gelsenkirchen
15.09.2011
1,549 sq m
45899 Gelsenkirchen
15.09.2011
650 sq m
45899 Gelsenkirchen
15.09.2011
387 sq m
Page 11
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Gelsenkirchen II
45899
Gelsenkirchen
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 12
Gelsenkirchen II
Cluster 08
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1950
n/a
n/a
Leasehold
No
11,599 sq m
27.70%
No
Income year 1
as % of GRI
462,362 €
612,429 €
655,235 €
228,449 €
49.41%
NOI (month 1x12)
Net Cash Flow
233,913 €
171,017 €
SWOT-Analysis
Strenghts
Weaknesses
All units have balconies
Electrical heating systems needs to be replaced,
Opportunities
Threats
refurbishment
accommodations,
Property
4
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
10.6
4.48%
8.0
7.35%
7.5
8.17%
Purchaser's costs
5.80%
per sq m
422 €
Page 1
28,634 9€
Market Value
4,900,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
2
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
1
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
Plastic
Metal
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
Loggia
No
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
2 No insulation
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
4
192
0
112
1950
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
12
1
We were not able to inspect the roofs of the
buildings.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
Additional
comments
2 Apartment heating
3 District heating
4 Stove heating
Installed
various
2
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
2
1 No visible issues
1
The residential units are fitted with electrical heating facilities ("Nachtspeicheröfen"). On the basis of our inspection, these
heating facilities needs to be replaced.
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
3
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
1
None
Tiled
PVC
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
no
yes
no
yes
no
yes
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
yes
reflected in our valuation: Replacement of windows and entrance doors; cleaning and painting of facade; repair roof sealing;
renewal of electric installations; repair of defects related to fire protection; replacement of heating facilities (electric night store
heaters); repair waterproofing of external basement walls.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
5
0
Additional
comments
Lettability
Additional
comments
4
the electric heating system) and vacancy can be
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
192
0
112
0
304
Total lettable area
11,599 sq m
11,599 sq m
0 sq m
0 sq m
0 sq m
Units let
142
0
70
0
212
Area let
8,386 sq m
0 sq m
0 sq m
0 sq m
8,386 sq m
Vacant units
50
0
42
0
92
Vacant area
3,213 sq m
0 sq m
0 sq m
0 sq m
3,213 sq m
Vacancy rate area
27.70%
0.00%
0.00%
0.00%
27.70%
Vacancy rate units
26.04%
0.00%
37.50%
0.00%
30.26%
4.32 €
0.00 €
0.00 €
0.00 €
4.59 €
Current rent p.a.
255.40 €
0.00 €
32.33 €
0.00 €
181.75 €
435,202 €
0€
27,160 €
0€
462,362 €
4.75 €
0.00 €
0.00 €
0.00 €
4.96 €
286.95 €
0.00 €
20.21 €
0.00 €
189.07 €
628,075 €
0€
27,160 €
0€
655,235 €
Market rent p.a.
Parking
6%
Residential
94%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Total Gross Revenue
% Growth
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
585,269 633,257 646,285 660,700 678,830 697,469 716,630 736,329 756,581 769,443 782,524
-150,067 -176,071 -131,647 -85,661 -87,117 -88,598 -90,104 -91,636 -93,193 -94,778 -96,389
435,202 457,186 514,639 575,039 591,714 608,871 626,527 644,694 663,388 674,665 686,135
27,160
0
0
0
27,160
32,357
0
0
0
32,357
37,722
0
0
0
37,722
43,261
0
0
0
43,261
43,996
0
0
0
43,996
44,744
0
0
0
44,744
45,505
0
0
0
45,505
46,279
0
0
0
46,279
47,065
0
0
0
47,065
47,865
0
0
0
47,865
48,679
0
0
0
48,679
462,362 489,542 552,361 618,300 635,710 653,616 672,032 690,972 710,453 722,531 734,814
5 9%
12.8%
11.9%
2.8%
2.8%
2 8%
2.8%
2.8%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-42,783 -43,511 -44,250 -45,002 -45,767 -46,546 -47,337 -48,142 -48,960 -49,792 -50,639
-9,247
-9,791 -11,047 -12,366 -12,714 -13,072 -13,441 -13,819 -14,209 -14,451 -14,696
-23,118 -23,511 -23,911 -24,317 -24,731 -25,151 -25,579 -26,014 -26,456 -26,905 -27,363
-4,480
-4,556
-4,634
-4,712
-4,792
-4,874
-4,957
-5,041
-5,127
-5,214
-5,303
-38,552 -37,068 -27,715 -18,034 -18,340 -18,652 -18,969 -19,292 -19,620 -19,953 -20,292
-110,268 -112,143 -114,049 -115,988 -117,960 -119,965 -122,004 -124,079 -126,188 -128,333 -130,515
0
0
0
0
0
0
0
0
0
0
0
% of Gross Revenue
-228,449 -230,579 -225,606 -220,420 -224,305 -228,260 -232,287 -236,386 -240,559 -244,649 -248,808
52.5%
50.4%
43.8%
38.3%
37.9%
37.5%
37.1%
36.7%
36.3%
36.3%
36.3%
233,913 258,963 326,755 397,880 411,405 425,356 439,745 454,586 469,894 477,882 486,006
Renovation Costs
Leasing Commissions
Capital Expenditure
-62,896 -130,288 -132,503 -134,756
0
0
0
0
0 -951,709 -178,448
0
-67,283
0
0
-68,427
0
0
-69,590
0
0
-70,773
0
0
-71,976
0
0
-73,200
0
0
-74,444
0
0
-62,896 ####### -310,951 -134,756
-67,283
-68,427
-69,590
-70,773
-71,976
-73,200
-74,444
Net Cash Flow
% Growth
171,017 -823,034 15,804 263,125 344,122 356,929 370,155 383,813 397,918 404,682 411,562
-581 3% -101.9% ######
30.8%
3.7%
3.7%
3.7%
3.7%
1.7%
1.7%
Gross Value
Purchaser's Costs
-15.8%
0.3%
5.0%
450 €
4,937,059 €
Market Value
4,900,000 €
7.1%
7.3%
7.6%
7.7%
7.9%
600.000
9,0%
400.000
8,0%
7,0%
200.000
6,0%
0
200.000
5,0%
4,0%
400.000
3,0%
600.000
5.8%
Net Value
6.8%
Net Cash Flow
1,092,369 €
4,131,039 €
5,223,409 €
6.6%
Running Yield in %
3.3%
Running Net Yield
2,0%
800.000
1,0%
1.000.000
0,0%
10.6 x
8.0 x
Net Initial Yield
4.5%
Direct Cap Rate
3.3%
600.000
60,0%
500.000
50,0%
400.000
40,0%
300.000
30,0%
200.000
20,0%
100.000
10,0%
0
0,0%
Page 6
422 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Site Information
Site area
18,364 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Ostpreußenstr. 1-8, 10-36, Pommernstr. 2-4
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
Not registered in the register of contaminated sites; No comercial or industrial land use; No hints for soil
Leasehold
Yes
see comm.
Listed status
Expiry of leasehold
No
24.03.2059
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
No preservation or design statute; Owner's inheritable building rights (296,09 € ground lease for parcel no. 833; 330.58 € grund
lease for parcels no. 833, 841, 842, 926, 992, 691; 70.46 € ground lease for parcel no. 934)
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Marl
4608A
110
1086
Terra Heimbau 2
Priority notice to safeguard a right of re-conveyance deriving from a right to re-purchase the property, in favour
of the City of Marl.
Right of pre-emption in the event of any disposal of the property, in favour of the City of Marl.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Marl
27734
110
833, 841, 842, 926, 992, 691
Terra Heimbau 2
Parcels 833, 841, 842, 926, 992, 691:
Heritable building right with reference to BV 1, 5, 6 of the heritable building right register Marl folio no. 6418 the
term of heritable building right is 99 years and started on 24 March 1960, in favour of Terra Heimbau 2 (owner's
inheritable building right).
Comments
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Marl
6418
110
833, 841, 842, 926, 992, 691
Terra Heimbau 2
Parcel 833:
Ground rent (DM 579,10 = EUR 296,09 - annually), in favour of the respective owner of the property, currently
Terra Heimbau 2 (owner's inheritable building right).
Right of pre-emption in the event of any disposal of the heritable building right, in favour of the respective owner
of the property, currently Terra Heimbau 2 (owner's inheritable building right).
Parcels 833, 841, 842, 926, 992, 691:
Ground rent (DM 646,55 = EUR 330.58 - annually), in favour of the respective owner of the property, currently
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Marl
27735
110
934
Terra Heimbau 2
Heritable building right with reference to BV 1, 2 of the heritable building right register Marl folio no. 1403, in
favour of Terra Heimbau 2 (owner's inheritable building right).
Limited personal easement, right to run pipelines together with a construction limitation for the owner of the
property, in favour of the City of Marl.
Comments
Land Register
Extract dated
18.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Marl
1403
110
934
Terra Heimbau 2
Ground rent (DM 137,80 = EUR 70.46 - annually), in favour of the respective owner of the property, currently
Right of pre-emption in the event of any disposal of the heritable building right, in favour of the respective owner
of the property, currently Terra Heimbau 2 (owner's inheritable building right).
Limited personal easement, right to run a sewer pipe together with a construction limitation for the owner, in
favour of the City of Marl.
Comments
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Site Plan
Subject property
Page 10
Marl
Cluster 09
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Marl
Cluster 09
n/a
01.09.2011
City
Marl
Date
01.01.2011
Minimum
Average
4.49 €/sq m
4.89 €/sq m
Maximum
5.28 €/sq m
Address
Date
Area
Monthly rent
Ostpreußenstraße 16
01.04.2011
61 sq m
3.78 €/sq m
01.06.2011
48 sq m
4.27 €/sq m
01.07.2011
48 sq m
4.29 €/sq m
01.07.2011
48 sq m
4.29 €/sq m
15.04.2011
48 sq m
4.29 €/sq m
Address
Date
Area
Asking rent
Comments
Pommernstr. 7, Marl
12.09.2011
89 sq m
4.75 €/sq m 3-room apartment, refurbished, loggia
Pommernstr. 13, Marl
12.09.2011
73 sq m
Breddenkam. 18, Marl
27.09.2011
76 sq m
Pommernstr. 5, Marl
12.09.2011
68 sq m
5.20 €/sq m 3,5-room apartment, lift, refurbished
Pommernstr. 9, Marl
12.09.2011
79 sq m
5.22 €/sq m 3-room apartment, 3rd floor, refurbished
Address
Date
Area
Price p. sq m
Comments
Hüls-Nord
02.07.1905
691 sq m
Sinsen-Lenkerbeck
02.07.1905
540 sq m
454 € 2-3-storey apartment building, built 1968, better location
Drewer-Süd
02.07.1905
380 sq m
Address
Date
Area
Price p. sq m
Comments
892 sq m
446 € 4-storey mixed-use building, standard fit-out
16.09.2011
228 sq m
461 € 2-storey apartment building, five units
15.09.2011
1,549 sq m
45891 Gelsenkirchen
16.09.2011
44652 Herne
45897 Gelsenkirchen
Page 11
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Marl
45770
Marl
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 12
Marl
Cluster 09
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Residential block
1967
n/a
n/a
Freehold
No
3,570 sq m
35.26%
No
Income year 1
as % of GRI
116,821 €
171,921 €
186,392 €
72,771 €
62.29%
44,051 €
26,715 €
NOI (month 1x12)
Net Cash Flow
SWOT-Analysis
Strenghts
Weaknesses
All units have balconies,
Car park
High noise exposure caused by neighbouring motorway,
Buildings are inclined
Opportunities
Threats
refurbishment
accommodations
Property
4
Location
4
Valuation Result
Yield Profile
Multiplier
NIY
12.8
2.67%
8.7
6.01%
8.0
6.89%
Purchaser's costs
6.40%
per sq m
420 €
Page 1
99,167 €
Market Value
1,500,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
2
1
2
3
4
3
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Motorway A42 and A235 are located in the direct
Additional
vicinity.
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
4
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
4
No. of buildings
1 Residential use
4
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
3
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
4
1
2
3
4
As new
No obvious damage
Minor damage noted
3
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
Plastic
Metal
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
Loggia
No
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
2 No insulation
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
5
54
0
53
1967
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
1
2
3
4
3
2
We were not able to inspect the roof of the
buildings.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
Additional
comments
2 Apartment heating
3 District heating
4 Stove heating
Installed
1993
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
2
1 No visible issues
1
The heating facility is located at Briloner Strasse 54 and also supplies the buildings Briloner Strasse 36-60 (cluster Castrop
Rauxel II).
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
4
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
yes
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
no
yes
yes
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
yes
no
Entrance and
common areas
2
yes
yes
Building structure is inclined. According to the technical due diligence prepared by Drees&Sommer the following repair works are
required and have been reflected in our valuation: Replacement of roof membrane; roof insulation; Replacement draught gas
burne; balcony repair; cleaning and painting of the facade; repair waterproofing of external basement walls.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
6
0
Additional
comments
Lettability
Additional
comments
4
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
54
0
53
0
107
Total lettable area
3,570 sq m
3,570 sq m
0 sq m
0 sq m
0 sq m
Units let
35
0
33
0
68
Area let
2,311 sq m
0 sq m
0 sq m
0 sq m
2,311 sq m
Vacant units
19
0
20
0
39
Vacant area
1,259 sq m
0 sq m
0 sq m
0 sq m
1,259 sq m
Vacancy rate area
35.26%
0.00%
0.00%
0.00%
35.26%
Vacancy rate units
35.19%
0.00%
37.74%
0.00%
36.45%
3.73 €
0.00 €
0.00 €
0.00 €
4.21 €
Current rent p.a.
246.22 €
0.00 €
33.86 €
0.00 €
143.16 €
103,413 €
0€
13,408 €
0€
116,821 €
4.25 €
0.00 €
0.00 €
0.00 €
4.58 €
281.00 €
0.00 €
21.08 €
0.00 €
152.81 €
172,984 €
0€
13,408 €
0€
186,392 €
Market rent p.a.
Parking
11%
Residential
89%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
158,513 171,312 174,503 178,318 183,950 189,766 195,772 201,973 208,377 211,919 215,522
-55,100 -57,062 -40,514 -23,387 -23,785 -24,189 -24,601 -25,019 -25,444 -25,877 -26,317
103,413 114,249 133,988 154,931 160,165 165,577 171,171 176,954 182,933 186,043 189,205
13,408
0
0
0
13,408
15,978
0
0
0
15,978
18,631
0
0
0
18,631
21,369
0
0
0
21,369
21,732
0
0
0
21,732
22,102
0
0
0
22,102
22,478
0
0
0
22,478
22,860
0
0
0
22,860
23,248
0
0
0
23,248
23,643
0
0
0
23,643
24,045
0
0
0
24,045
Total Gross Revenue
% Growth
116,821 130,227 152,619 176,300 181,898 187,679 193,648 199,814 206,181 209,686 213,251
11.5%
17.2%
15.5%
3.2%
3.2%
3 2%
3.2%
3.2%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-12,148
-2,336
-5,841
-2,120
-15,107
-35,218
0
-12,355
-2,605
-5,940
-2,156
-13,426
-35,817
0
-12,565
-3,052
-6,041
-2,193
-9,533
-36,426
0
-12,778
-3,526
-6,144
-2,230
-5,503
-37,045
0
-12,996
-3,638
-6,249
-2,268
-5,596
-37,675
0
-13,216
-3,754
-6,355
-2,306
-5,692
-38,315
0
-13,441
-3,873
-6,463
-2,346
-5,788
-38,966
0
-13,670
-3,996
-6,573
-2,386
-5,887
-39,629
0
-13,902
-4,124
-6,684
-2,426
-5,987
-40,303
0
-14,138
-4,194
-6,798
-2,467
-6,089
-40,988
0
-14,379
-4,265
-6,914
-2,509
-6,192
-41,685
0
% of Gross Revenue
-72,771
70.4%
-72,299
63 3%
-69,810
52.1%
-67,226
43.4%
-68,421
42.7%
-69,638
42.1%
-70,877
41.4%
-72,140
40.8%
-73,426
40.1%
-74,674
40.1%
-75,943
40.1%
44,051
57,928
Renovation Costs
Leasing Commissions
Capital Expenditure
-17,336
0
0
-45,015
0
-32,264
-45,781
0
0
-46,559
0
0
-18,545
0
0
-18,860
0
0
-19,181
0
0
-19,507
0
0
-19,839
0
0
-20,176
0
0
-20,519
0
0
-17,336
-77,280
-45,781
-46,559
-18,545
-18,860
-19,181
-19,507
-19,839
-20,176
-20,519
-19,352 37,028
-172.4% -291.3%
62,515
68.8%
94,932
51.9%
3.8%
5.8%
Running Net Yield
26,715
1.6%
Gross Value
Purchaser's Costs
-1.2%
2.2%
462 €
Market Value
1,500,000 €
6.6%
6.8%
7.0%
7.1%
8,0%
120.000
7,0%
100.000
6,0%
80.000
5,0%
60.000
4,0%
40.000
3,0%
20.000
2,0%
0
20.000
1,549,481 €
6.3%
140.000
6.4%
Net Value
6.0%
Net Cash Flow
515,264 €
1,133,383 €
1,648,648 €
99,180 103,590 108,167 112,917 114,836 116,789
4.5%
4.4%
4.4%
4.4%
1.7%
1.7%
40.000
Running Yield in %
Net Cash Flow
% Growth
82,809 109,074 113,477 118,041 122,771 127,674 132,756 135,012 137,308
1,0%
0,0%
Net Initial Yield
Direct Cap Rate
12.8 x
8.7 x
2.7%
1.6%
420 €
160.000
70,0%
140.000
60,0%
120.000
50,0%
100.000
40,0%
80.000
30,0%
60.000
20,0%
40.000
10,0%
20.000
0
0,0%
Page 6
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
Site Information
Site area
18,216 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Briloner Straße 32-34, 42-44, 52-54
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
Registered in the register of contaminated sites due to former mining waste deposition; According to a soil
investigation report no harmful soil contamination present; Environmental risk is considered low; No public land
charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
26.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Castrop-Rauxel
23821
19
317, 314, 486, 487
Terra Heimbau 2
Parcel 317:
Right to run a gas pipeline together with a ban on construction and a limitation of use for the owner in respect of
the eight meter wide land strip above the pipes in favour of Ruhrgas Aktiengesellschaft, Essen;
Limited personal easement: right to build,run and maintain a gas pipeline together with a ban on construction
and a proh bition of endangerment of the pipe line in favour of VEW Energie Aktiengesellschaft, Dortmund
Comments
Castrop-Rauxel I and II are situated on the same plot. We have not been provided with extracts from the land
Page 7
SHORT REPORT
Castrop-Rauxel I
44575
Castrop-Rauxel
Site Plan
Subject property
Page 8
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
City
Castrop-Rauxel
Date
27.01.2011
Minimum
Average
4.39 €/sq m
5.01 €/sq m
Maximum
4.80 €/sq m
Address
Date
Area
Monthly rent
Briloner Straße 44
01.03.2011
69 sq m
3.92 €/sq m
Briloner Straße 52
01.07.2011
64 sq m
4.00 €/sq m
Briloner Straße 54
01.12.2010
69 sq m
4.00 €/sq m
Briloner Straße 54
01.08.2011
69 sq m
4.01 €/sq m
Briloner Straße 54
01.02.2011
69 sq m
4.22 €/sq m
Address
Date
Area
Asking rent
Comments
Briloner Str., Castr.-Raux. 12.09.2011
80 sq m
Luisenstr. 37, Castr.-Rau.
12.09.2011
72 sq m
4.15 €/sq m 3,5-room apartment, 4th floor, partly refurbished
44577 Castrop-Rauxel
27.09.2011
70 sq m
4.20 €/sq m 3-room apartment, 4th floor, partly refurbished
12.09.2011
69 sq m
12.09.2011
69 sq m
Address
Date
Area
Price p. sq m
Comments
Oer-Erkenschwick
02.07.1905
572 sq m
Herten
03.07.1905
1,979 sq m
Oer-Erkenschwick
03.07.1905
740 sq m
Datteln
02.07.1905
660 sq m
Address
Date
Area
Price p. sq m
Comments
736 sq m
404 € 2-storey-apartment building, not refurbished
16.09.2011
771 sq m
442 € 3-storey apartment building, not refurbished
16.09.2011
1,061 sq m
19.09.2011
562 sq m
19.09.2011
44629 Herne
45711 Datteln
551 € 3,5-storey apartm.building, not refurbished, better location
676 € 3-storey apartment building, balconies, better condition
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel I
44575
Castrop-Rauxel
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Castrop-Rauxel I
Cluster 10
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Residential block
1967
n/a
n/a
Freehold
No
4,079 sq m
9.16%
No
Income year 1
as % of GRI
155,787 €
167,563 €
200,756 €
66,390 €
42.62%
89,397 €
61,606 €
NOI (month 1x12)
Net Cash Flow
SWOT-Analysis
Strenghts
Weaknesses
Car park
Let below market level,
High noise exposure caused by neighbouring motorway,
Buildings are inclined
Opportunities
Threats
refurbishment,
Uplift potential
accommodations,
Property
4
Location
4
Valuation Result
Yield Profile
Multiplier
NIY
10.9
4.87%
10.1
5.52%
8.5
7.33%
Purchaser's costs
6.40%
per sq m
417 €
Page 1
11,032 9€
Market Value
1,700,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
2
1
2
3
4
3
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
4
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
4
No. of buildings
1 Residential use
4
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
3
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
3
3
54
0
0
1967
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
Windows have been replaced approximately 20
years ago.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
Additional
comments
2 Apartment heating
3 District heating
4 Stove heating
Installed
1993
3
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
2
1 No visible issues
1
The heating facility is located at Briloner Strasse 52.
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
4
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
yes
no
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
yes
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
yes
no
Entrance and
common areas
2
yes
yes
Building structure is inclined. According to the technical due diligence prepared by Drees&Sommer the following repair works are
required and have been reflected in our valuation: Replacement of roof membrane; roof insulation; Replacement draught gas
burne; balcony repair; cleaning and painting of the facade; repair waterproofing of external basement walls.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
4
0
Additional
comments
Lettability
Additional
comments
3
The property is in a fairly poor condition and most
is fair and therefore additional measures are
Saleability
Additional
comments
Page 4
4
properties is low. We assume that the saleability is
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
54
0
0
0
54
Total lettable area
4,079 sq m
4,079 sq m
0 sq m
0 sq m
0 sq m
Units let
49
0
0
0
49
Area let
3,705 sq m
0 sq m
0 sq m
0 sq m
3,705 sq m
Vacant units
5
0
0
0
5
Vacant area
374 sq m
0 sq m
0 sq m
0 sq m
374 sq m
Vacancy rate area
9.16%
0.00%
0.00%
0.00%
9.16%
Vacancy rate units
9.26%
0.00%
0.00%
0.00%
9.26%
3.50 €
0.00 €
0.00 €
0.00 €
3.50 €
Current rent p.a.
264.94 €
0.00 €
0.00 €
0.00 €
264.94 €
155,787 €
0€
0€
0€
155,787 €
4.25 €
0.00 €
0.00 €
0.00 €
4.25 €
321.05 €
0.00 €
0.00 €
0.00 €
321.05 €
200,756 €
0€
0€
0€
200,756 €
Market rent p.a.
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
3.5%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
167,563 182,614 189,126 196,064 203,806 211,865 220,253 228,984 238,072 242,119 246,235
-11,776 -25,335 -22,047 -18,641 -18,958 -19,280 -19,608 -19,941 -20,280 -20,625 -20,976
155,787 157,280 167,079 177,423 184,849 192,585 200,645 209,043 217,792 221,494 225,260
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Gross Revenue
% Growth
155,787 157,280 167,079 177,423 184,849 192,585 200,645 209,043 217,792 221,494 225,260
1 0%
6.2%
6.2%
4.2%
4.2%
4 2%
4.2%
4.2%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-11,880
-3,116
-7,789
0
-4,484
-39,121
0
-12,082
-3,146
-7,922
0
-5,961
-39,786
0
-12,287
-3,342
-8,056
0
-5,188
-40,462
0
-12,496
-3,548
-8,193
0
-4,386
-41,150
0
-12,709
-3,697
-8,333
0
-4,461
-41,850
0
-12,925
-3,852
-8,474
0
-4,536
-42,561
0
-13,144
-4,013
-8,618
0
-4,614
-43,285
0
-13,368
-4,181
-8,765
0
-4,692
-44,021
0
-13,595
-4,356
-8,914
0
-4,772
-44,769
0
-13,826
-4,430
-9,065
0
-4,853
-45,530
0
-14,061
-4,505
-9,220
0
-4,935
-46,304
0
% of Gross Revenue
-66,390
42.6%
-68,897
43 8%
-69,335
41.5%
-69,774
39.3%
-71,049
38.4%
-72,349
37.6%
-73,674
36.7%
-75,026
35.9%
-76,406
35.1%
-77,705
35.1%
-79,026
35.1%
89,397
88,383
Renovation Costs
Leasing Commissions
Capital Expenditure
-27,791
0
0
-33,923
0
-36,383
-34,500
0
0
-35,086
0
0
-29,730
0
0
-30,235
0
0
-30,749
0
0
-31,272
0
0
-31,803
0
0
-32,344
0
0
-32,894
0
0
-27,791
-70,306
-34,500
-35,086
-29,730
-30,235
-30,749
-31,272
-31,803
-32,344
-32,894
18,077 63,244
-70.7% 249.9%
72,562
14.7%
84,070
15.9%
90,001
7.1%
4.0%
4.6%
4.9%
Running Net Yield
61,606
3.4%
Gross Value
Purchaser's Costs
1.0%
3.4%
450 €
5.2%
5.6%
6.0%
6.1%
120.000
7,0%
6,0%
100.000
5,0%
80.000
4,0%
60.000
3,0%
40.000
2,0%
6.4%
20.000
Net Value
Market Value
6.2%
Net Cash Flow
568,561 €
1,265,651 €
1,834,212 €
96,222 102,745 109,583 111,446 113,340
6 9%
6.8%
6.7%
1.7%
1.7%
1,723,884 €
Running Yield in %
Net Cash Flow
% Growth
97,743 107,648 113,800 120,236 126,971 134,016 141,386 143,790 146,234
1,0%
0
0,0%
1,700,000 €
Net Initial Yield
Direct Cap Rate
10.9 x
10.1 x
4.9%
3.4%
160.000
50,0%
45,0%
140.000
40,0%
120.000
35,0%
100.000
30,0%
80.000
25,0%
20,0%
60.000
15,0%
40.000
10,0%
20.000
5,0%
0
0,0%
Page 6
417 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
Site Information
Site area
18,216 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Briloner Str. 36-40, 46-50, 56-60
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
Registered in the register of contaminated sites due to former mining waste deposition; According to a soil
investigation report no harmful soil contamination present; Environmental risk is considered low; No public land
charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
26.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Castrop-Rauxel
23821
19
317, 314, 486, 487
Terra Heimbau 2
Parcel 317:
Right to run a gas pipeline together with a ban on construction and a limitation of use for the owner in respect of
the eight meter wide land strip above the pipes, in favour of Ruhrgas Aktiengesellschaft, Essen.
Limited personal easement: right to build, run and maintain a gas pipeline together with a ban on construction
and a proh bition of endangerment of the pipe line, in favour of VEW Energie Aktiengesellschaft, Dortmund.
Comments
Castrop-Rauxel I and II are situated on the same plot. We have not been provided with extracts from the land
Page 7
SHORT REPORT
Castrop-Rauxel II
45527
Castrop-Rauxel
Site Plan
Subject property
Page 8
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
City
Castrop-Rauxel
Date
27.01.2011
Minimum
Average
4.39 €/sq m
5.01 €/sq m
Maximum
4.80 €/sq m
Address
Date
Area
Monthly rent
Briloner Straße 38
01.06.2011
80 sq m
4.01 €/sq m
Briloner Straße 46
01.06.2011
80 sq m
4.01 €/sq m
Briloner Straße 50
01.08.2011
80 sq m
4.02 €/sq m
Briloner Straße 50
01.08.2011
80 sq m
4.02 €/sq m
Briloner Straße 40
01.06.2011
80 sq m
4.02 €/sq m
Address
Date
Area
Asking rent
Comments
Briloner Str., Castr.-Raux. 12.09.2011
80 sq m
12.09.2011
72 sq m
4.15 €/sq m 3,5-room apartment, 4th floor, partly refurbished
27.09.2011
70 sq m
12.09.2011
69 sq m
12.09.2011
69 sq m
Address
Date
Area
Price p. sq m
Comments
Oer-Erkenschwick
02.07.1905
572 sq m
Herten
03.07.1905
1,979 sq m
Oer-Erkenschwick
03.07.1905
740 sq m
Datteln
02.07.1905
660 sq m
Address
Date
Area
16.09.2011
771 sq m
44629 Herne
16.09.2011
1,061 sq m
45711 Datteln
19.09.2011
562 sq m
Price p. sq m
Comments
551 € 3,5-storey apartment build., not refurbished, better location
676 € 3-storey apartment building, balconies, better condition
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Castrop-Rauxel II
45527
Castrop-Rauxel
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Castrop-Rauxel II
Cluster 11
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Residential block
1967
n/a
n/a
Freehold
No
1,776 sq m
9.95%
No
Income year 1
as % of GRI
65,518 €
74,536 €
90,600 €
32,458 €
49.54%
NOI (month 1x12)
Net Cash Flow
33,059 €
21,062 €
SWOT-Analysis
Strenghts
Weaknesses
Most apartments have balconies,
Location with high recreational value
High maintenance costs due to high-rise building structure
Opportunities
Threats
refurbishment
Above-average maintenance costs due to high-rise building
structure,
accommodations,
Property
4
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
12.2
3.84%
10.7
4.89%
8.8
6.76%
Purchaser's costs
7.00%
per sq m
450 €
Page 1
56,290 €
Market Value
800,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
2
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
4
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
4
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
3
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
1
8
31
0
0
1967
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
We were not able to inspect the roof and the roof
coverings. Parts of the facade have been insulated.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 2000
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
1
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
4
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
no
yes
yes
no
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
reflected in our valuation: Repair of the facade; balcony repair; renew roof sealing; repair of defects related to fire protection.
Page 3
yes
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
2
0
Additional
comments
Lettability
Additional
comments
3
is fair and additional measures are required to
increase occupancy.
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
31
0
0
2
33
Total lettable area
1,776 sq m
1,776 sq m
0 sq m
0 sq m
0 sq m
Units let
28
0
0
2
30
Area let
1,600 sq m
0 sq m
0 sq m
0 sq m
1,600 sq m
Vacant units
3
0
0
0
3
Vacant area
177 sq m
0 sq m
0 sq m
0 sq m
177 sq m
Vacancy rate area
9.95%
0.00%
0.00%
0.00%
9.95%
Vacancy rate units
9.68%
0.00%
0.00%
0.00%
9.09%
3.41 €
0.00 €
0.00 €
0.00 €
3.41 €
194.99 €
0.00 €
0.00 €
0.00 €
181.99 €
Current rent p.a.
65,518 €
0€
0€
0€
65,518 €
4.25 €
0.00 €
0.00 €
0.00 €
4.25 €
243.55 €
0.00 €
0.00 €
0.00 €
228.79 €
Market rent p.a.
90,600 €
0€
0€
0€
90,600 €
Others
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
0.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
74,536
-9,019
65,518
77,872
-10,416
67,456
80,655
-7,639
73,015
83,705
-4,765
78,940
87,359
-4,846
82,513
91,176
-4,928
86,247
95,163
-5,012
90,151
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
65,518
67,456
3 0%
73,015
8.2%
78,940
8.1%
82,513
4.5%
86,247
4.5%
90,151
4.5%
94,232
4.5%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-6,820
-1,310
-3,276
0
-2,122
-18,930
0
-6,936
-1,349
-3,332
0
-2,451
-19,252
0
-7,054
-1,460
-3,388
0
-1,797
-19,579
0
-7,174
-1,579
-3,446
0
-1,121
-19,912
0
-7,296
-1,650
-3,504
0
-1,140
-20,251
0
-7,420
-1,725
-3,564
0
-1,160
-20,595
0
-7,546
-1,803
-3,625
0
-1,179
-20,945
0
-7,674
-1,885
-3,686
0
-1,199
-21,301
0
-7,805
-1,970
-3,749
0
-1,220
-21,663
0
-7,937
-2,003
-3,813
0
-1,241
-22,031
0
-8,072
-2,037
-3,877
0
-1,262
-22,406
0
% of Gross Revenue
-32,458
49.5%
-33,319
49.4%
-33,279
45.6%
-33,232
42.1%
-33,841
41.0%
-34,463
40.0%
-35,098
38 9%
-35,745
37.9%
-36,406
37.0%
-37,025
37.0%
-37,655
37.0%
33,059
34,137
39,736
45,708
48,672
51,784
55,053
58,486
62,090
63,146
64,219
Renovation Costs
Leasing Commissions
Capital Expenditure
-11,997
0
0
-16,697
0
-1,017
-16,981
0
0
-17,270
0
0
-12,834
0
0
-13,052
0
0
-13,274
0
0
-13,500
0
0
-13,729
0
0
-13,963
0
0
-14,200
0
0
-11,997
-17,714
-16,981
-17,270
-12,834
-13,052
-13,274
-13,500
-13,729
-13,963
-14,200
21,062
16,423
-22 0%
22,755
38.6%
28,438
25.0%
35,837
26.0%
38,732
8.1%
41,779
7 9%
44,986
7.7%
48,361
7.5%
49,183
1.7%
50,019
1.7%
2.4%
1.9%
2.6%
3.3%
4.2%
4.5%
4.9%
5.2%
5.6%
5.7%
5.8%
Net Cash Flow
% Growth
Running Net Yield
Gross Value
Purchaser's Costs
484 €
0
0
0
0
0
98,497 100,171 101,874
4.5%
1.7%
1.7%
60.000
7,0%
6,0%
50.000
5,0%
40.000
4,0%
30.000
3,0%
20.000
2,0%
7.0%
10.000
Net Value
Market Value
0
0
0
0
0
Net Cash Flow
249,040 €
611,399 €
860,439 €
0
0
0
0
0
804,149 €
Running Yield in %
Total Gross Revenue
% Growth
Parking
Subsidies
Rental Guarantee
Total Other Revenue
99,329 103,681 105,443 107,236
-5,097
-5,184
-5,272
-5,362
94,232 98,497 100,171 101,874
1,0%
0
0,0%
800,000 €
12.2 x
10.7 x
Net Initial Yield
3.8%
Direct Cap Rate
2.4%
70.000
60,0%
60.000
50,0%
50.000
40,0%
40.000
30,0%
30.000
20,0%
20.000
10,0%
10.000
0
0,0%
Page 6
450 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
Site Information
Site area
2,925 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Brüchtenweg 23
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
Yes
Br 128 "Bannweg"
25003
Solely residential area
0.3
1
Additional comments
Eight storeys obligatory; Flat roof, No preservation or design statute
Land Register
Extract dated
02.09.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
58535
5
2783
Terra Heimbau 407
No restrictions
Comments
We have not been provided with a cadastral map. Thus, we could not verify the information stated in the land
register against the cadastral map. We have not been provided with extracts from the land register. The
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Site Plan
Subject property
Page 8
Dortmund I
Cluster 12
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Dortmund I
Cluster 12
n/a
01.09.2011
City
Dortmund
Date
01.03.2011
Minimum
Average
3.96 €/sq m
4.47 €/sq m
Maximum
5.19 €/sq m
Address
Date
Area
Monthly rent
Brüchtenweg 23
01.07.2011
52 sq m
3.87 €/sq m
Brüchtenweg 23
01.01.2011
63 sq m
3.99 €/sq m
Brüchtenweg 23
01.02.2011
52 sq m
4.01 €/sq m
Address
Date
Steiermarkstr. 57, Dortm.
27.09.2011
Area
72 sq m
Asking rent
Comments
Sonnenscheineck 14, Do.
27.09.2011
71 sq m
Ringofenstr. 38, Dortm.
27.09.2011
72 sq m
Ringofenstr. 36, Dortm.
12.09.2011
72 sq m
Hofgerichtsweg 20, Dort.
12.09.2011
75 sq m
4.85 €/sq m 3-room apartment, partly refurbished, lift
Address
Date
Area
Price p. sq m
Comments
No comparable
transactions available
Address
Date
Area
Price p. sq m
Comments
45701 Herten
16.09.2011
2,896 sq m
42277 Wuppertal
15.09.2011
7,052 sq m
42555 Velbert
16.09.2011
7,928 sq m
58300 Wetter
16.09.2011
1,540 sq m
682 € 5-storey apartm. building, better location, better condition
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund I
44309
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Dortmund I
Cluster 12
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Residential block
1980
n/a
n/a
Freehold
Yes
3,554 sq m
31.26%
No
Income year 1
as % of GRI
138,552 €
184,154 €
178,433 €
63,456 €
45.80%
75,096 €
56,776 €
NOI (month 1x12)
Net Cash Flow
SWOT-Analysis
Strenghts
Weaknesses
Car park,
Partly fitted with elevators
Significant amount of capex required,
Rent restrictions until 2029-2081
Opportunities
Threats
refurbishment
works,
accommodations in this location,
Environmental risk is considered high
Property
4
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
10.8
4.78%
8.1
7.68%
8.4
7.32%
Purchaser's costs
6.40%
per sq m
422 €
Page 1
94,505 €
Market Value
1,500,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
3
1
2
3
4
3
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
4
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
4
No. of buildings
1 Residential use
4
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
3
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
4
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
1
4
46
2
30
1980
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
We were not able to inspect the roof and roof
coverings. The property has a underground parking
garage. However, at the date of inspec ion no
access was provided.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 2004
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
1
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
no
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
no
yes
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
yes
reflected in our valuation: Repair of the facade; balcony repair; renew roof sealing; replacement of windows; replacement of
electric installations.
Page 3
yes
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
3
0
Additional
comments
Lettability
Additional
comments
4
a considerable vacancy. Furthermore, the property
is also subject to social subsidies and depending on
the guidlines of the local housing authorities. We
assume that the lettability is significantly limited and
vacancy can be expected to remain high so that
substantial measures are required to increase
occupancy.
Saleability
Additional
comments
Page 4
3
comparable properties is fair. We assume that he
saleability is fair so that additional promotional
measures are required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
46
2
30
0
78
Total lettable area
3,554 sq m
3,451 sq m
102 sq m
0 sq m
0 sq m
Units let
32
2
23
0
57
Area let
2,340 sq m
102 sq m
0 sq m
0 sq m
2,443 sq m
Vacant units
14
0
7
0
21
Vacant area
1,111 sq m
0 sq m
0 sq m
0 sq m
1,111 sq m
Vacancy rate area
32.19%
0.00%
0.00%
0.00%
31.26%
Vacancy rate units
30.43%
0.00%
23.33%
0.00%
26.92%
4.05 €
12.25 €
0.00 €
0.00 €
4.73 €
295.92 €
626.62 €
35.80 €
0.00 €
202.56 €
113,632 €
15,039 €
9,881 €
0€
138,552 €
Current rent p.a.
Market rent p.a.
4.05 €
7.50 €
0.00 €
0.00 €
4.40 €
303.86 €
383.63 €
27.45 €
0.00 €
200.67 €
159,345 €
9,207 €
9,881 €
0€
178,433 €
Commercial
3%
Parking
7%
Commercial
11%
Residential
82%
Residential
97%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
10.00 €/sq m
10.00 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
174,273 184,611 186,927 189,322 191,804 194,361 196,993 199,701 202,483 205,926 209,426
-45,603 -46,414 -32,207 -17,504 -17,802 -18,104 -18,412 -18,725 -19,043 -19,367 -19,696
128,671 138,197 154,719 171,818 174,002 176,256 178,581 180,975 183,440 186,558 189,730
9,881
0
0
0
9,881
10,777
0
0
0
10,777
11,701
0
0
0
11,701
12,653
0
0
0
12,653
12,868
0
0
0
12,868
13,087
0
0
0
13,087
13,309
0
0
0
13,309
13,536
0
0
0
13,536
13,766
0
0
0
13,766
14,000
0
0
0
14,000
14,238
0
0
0
14,238
Total Gross Revenue
% Growth
138,552 148,974 166,420 184,471 186,870 189,343 191,890 194,511 197,206 200,558 203,968
7.5%
11.7%
10.8%
1.3%
1.3%
1 3%
1.4%
1.4%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-10,618
-2,771
-6,928
-1,200
-13,331
-28,608
0
-10,799
-2,979
-7,045
-1,220
-11,407
-29,094
0
-10,982
-3,328
-7,165
-1,241
-7,898
-29,589
0
-11,169
-3,689
-7,287
-1,262
-4,267
-30,092
0
-11,359
-3,737
-7,411
-1,284
-4,340
-30,604
0
-11,552
-3,787
-7,537
-1,306
-4,413
-31,124
0
-11,749
-3,838
-7,665
-1,328
-4,488
-31,653
0
-11,948
-3,890
-7,795
-1,350
-4,565
-32,191
0
-12,151
-3,944
-7,928
-1,373
-4,642
-32,738
0
-12,358
-4,011
-8,063
-1,397
-4,721
-33,295
0
-12,568
-4,079
-8,200
-1,420
-4,801
-33,861
0
% of Gross Revenue
-63,456
49.3%
-62,546
45 3%
-60,204
38.9%
-57,767
33.6%
-58,734
33.8%
-59,718
33.9%
-60,720
34 0%
-61,740
34.1%
-62,777
34.2%
-63,844
34.2%
-64,930
34.2%
75,096
86,428 106,216 126,704 128,136 129,625 131,170 132,771 134,429 136,714 139,038
Renovation Costs
Leasing Commissions
Capital Expenditure
-18,320
0
0
-42,584 -43,308
0
0
0 -308,727
-44,044
0
0
-19,598
0
0
-19,931
0
0
-20,270
0
-12,992
-20,614
0
-13,213
-20,965
0
-13,437
-21,321
0
-13,666
-21,684
0
-13,898
-18,320
-42,584 -352,035
-44,044
-19,598
-19,931
-33,262
-33,827
-34,402
-34,987
-35,582
43,845 -245,819 82,660 108,538 109,694
-22 8% -660.7% -133.6%
31.3%
1.1%
97,908
-10.7%
3.6%
Gross Value
Purchaser's Costs
2.8%
-15.6%
5.3%
442 €
6.4%
Net Value
1,476,645 €
Market Value
1,500,000 €
7.0%
6.2%
6.3%
6.4%
6.5%
6.6%
Net Cash Flow
340,035 €
1,231,115 €
1,571,150 €
6.9%
98,944 100,027 101,727 103,456
1.1%
1.1%
1.7%
1.7%
150.000
8,0%
100.000
7,0%
50.000
6,0%
0
50.000
5,0%
4,0%
100.000
3,0%
150.000
2,0%
200.000
250.000
1,0%
300.000
0,0%
Running Yield in %
Running Net Yield
56,776
Net Cash Flow
% Growth
Net Initial Yield
Direct Cap Rate
10.8 x
8.1 x
4.8%
3.6%
160.000
50,0%
45,0%
140.000
40,0%
120.000
35,0%
100.000
30,0%
80.000
25,0%
20,0%
60.000
15,0%
40.000
10,0%
20.000
5,0%
0
0,0%
Page 6
422 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
Site Information
Site area
5,624 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Vogelpothsweg 25, Oberbank 5-7
Mining damage
and risks (acc. to
Drees&Sommer)
considered low. In case of new building constructions gas drainage is required
Registered in the register of contaminated sites; According to remediation design (1998) harmful soil,
groundwater and soil gas contamination is evident; Environmental risk is considered high; Risk of additional
disposal costs in case of future soil excavation is high; No public land charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
Yes
Df 110 "Ehemalige Zeche Dorstfeld II/III"
27019
Core area
1
2.2
Additional comments
Four storeys maximum; No preservation or design statute
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
65615
2
927
Terra Heimbau 407
No restrictions
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Site Plan
Subject property
Page 8
Dortmund II
Cluster 13
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Dortmund II
Cluster 13
n/a
01.09.2011
City
Date
Minimum
Average
Area
Monthly rent
Maximum
not applicable
Address
Date
Oberbank 5
01.01.2011
94 sq m
4.05 €/sq m
Oberbank 5
01.06.2011
80 sq m
4.05 €/sq m
Address
Date
Vogelpothsweg 28, Dort.
12.09.2011
Area
80 sq m
Asking rent
Comments
12.09.2011
78 sq m
O.-Wachtel-Weg 1, Dort.
12.09.2011
58 sq m
12.09.2011
61 sq m
Fr.-Henk.-Weg 8, Dortm.
12.09.2011
55 sq m
Address
Date
Area
Price p. sq m
Comments
No comparable
Address
Date
Area
Price p. sq m
Comments
980 sq m
16.09.2011
608 sq m
16.09.2011
1,540 sq m
44369 Dortmund
19.09.2011
44267 Dortmund
58300 Wetter
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund II
44149
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Dortmund II
Cluster 13
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1964
n/a
n/a
Freehold
No
10,356 sq m
33.85%
No
Income year 1
as % of GRI
404,597 €
574,925 €
560,777 €
193,222 €
47.76%
NOI (month 1x12)
Net Cash Flow
211,375 €
160,000 €
SWOT-Analysis
Strenghts
Weaknesses
All units have balconies
Opportunities
Threats
refurbishment
works,
Property
3
Location
4
Valuation Result
Yield Profile
Multiplier
NIY
12.9
3.81%
9.0
6.88%
9.3
6.63%
Purchaser's costs
5.80%
per sq m
502 €
Page 1
30,407 0€
Market Value
5,200,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
4
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
3
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
7
4-5
156
0
0
1964
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
2
Additional
comments
Page 2
2
Entrance areas, facade and windows of the
buildings have been renewed approximately 20
years ago. The building Echeloh 15 is completely
vacant.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
3
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Partly refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Partly refurbished
inspection.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
no
yes
no
yes
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
reflected in our valuation: Cleaning and painting of the facade; repair of defects related to fire protection.
Page 3
no
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
3
Access
3
Number of units
inspected
Residential
Commercial
6
0
Additional
comments
Lettability
Additional
comments
3
lettability is fair and additional measures are
Saleability
Additional
comments
Page 4
3
required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
156
0
0
0
156
Total lettable area
10,356 sq m
10,356 sq m
0 sq m
0 sq m
0 sq m
Units let
103
0
0
0
103
Area let
6,850 sq m
0 sq m
0 sq m
0 sq m
6,850 sq m
Vacant units
53
0
0
0
53
Vacant area
3,506 sq m
0 sq m
0 sq m
0 sq m
3,506 sq m
Vacancy rate area
33.85%
0.00%
0.00%
0.00%
33.85%
Vacancy rate units
33.97%
0.00%
0.00%
0.00%
33.97%
4.92 €
0.00 €
0.00 €
0.00 €
4.92 €
Current rent p.a.
327.34 €
0.00 €
0.00 €
0.00 €
327.34 €
404,597 €
0€
0€
0€
404,597 €
4.75 €
0.00 €
0.00 €
0.00 €
4.75 €
315.33 €
0.00 €
0.00 €
0.00 €
315.33 €
560,777 €
0€
0€
0€
560,777 €
Market rent p.a.
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
10.50 €/sq m
10.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
574,925 613,628 623,564 633,169 641,417 649,775 658,242 666,822 675,514 686,998 698,677
-170,327 -179,848 -128,828 -76,022 -77,314 -78,629 -79,965 -81,325 -82,707 -84,113 -85,543
404,597 433,780 494,736 557,147 564,103 571,146 578,277 585,497 592,807 602,885 613,134
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Gross Revenue
% Growth
404,597 433,780 494,736 557,147 564,103 571,146 578,277 585,497 592,807 602,885 613,134
7 2%
14.1%
12.6%
1.2%
1.2%
1 2%
1.2%
1.2%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-34,320
-8,092
-20,230
0
-42,072
-88,508
0
% of Gross Revenue
-34,903
-8,676
-20,574
0
-37,863
-90,013
0
-35,497
-9,895
-20,924
0
-27,122
-91,543
0
-36,100
-11,143
-21,279
0
-16,005
-93,099
0
-36,714
-11,282
-21,641
0
-16,277
-94,682
0
-37,338
-11,423
-22,009
0
-16,553
-96,292
0
-37,973
-11,566
-22,383
0
-16,835
-97,928
0
-38,618 -39,275 -39,943 -40,622
-11,710 -11,856 -12,058 -12,263
-22,764 -23,151 -23,544 -23,944
0
0
0
0
-17,121 -17,412 -17,708 -18,009
-99,593 -101,286 -103,008 -104,759
0
0
0
0
-193,222 -192,028 -184,980 -177,626 -180,596 -183,615 -186,685 -189,806 -192,980 -196,261 -199,597
47.8%
44 3%
37.4%
31.9%
32.0%
32.1%
32 3%
32.4%
32.6%
32.6%
32.6%
211,375 241,752 309,757 379,520 383,507 387,531 391,592 395,691 399,827 406,624 413,537
Renovation Costs
Leasing Commissions
Capital Expenditure
-51,375 -127,886 -130,060 -132,271
0
0
0
0
0
-1,017
0
0
-54,959
0
0
-55,893
0
0
-56,843
0
0
-57,809
0
0
-58,792
0
0
-59,792
0
0
-60,808
0
0
-51,375 -128,903 -130,060 -132,271
-54,959
-55,893
-56,843
-57,809
-58,792
-59,792
-60,808
Net Cash Flow
% Growth
160,000 112,849 179,697 247,250 328,549 331,638 334,749 337,881 341,035 346,833 352,729
-29.5%
59.2%
37.6%
32.9%
0.9%
0 9%
0.9%
0.9%
1.7%
1.7%
Gross Value
Purchaser's Costs
2.0%
3.2%
4.5%
536 €
6.0%
6.0%
6.1%
6.1%
6.3%
400.000
7,0%
350.000
6,0%
300.000
5,0%
250.000
4,0%
200.000
3,0%
150.000
2,0%
100.000
5.8%
1,0%
50.000
Net Value
Market Value
6.4%
Net Cash Flow
1,947,208 €
3,599,443 €
5,546,651 €
5.9%
5,242,581 €
Running Yield in %
2.9%
Running Net Yield
0
0,0%
5,200,000 €
12.9 x
9.0 x
Net Initial Yield
3.8%
Direct Cap Rate
2.9%
502 €
450.000
50,0%
400.000
45,0%
40,0%
350.000
35,0%
300.000
30,0%
250.000
25,0%
200.000
20,0%
150.000
15,0%
100.000
10,0%
50.000
5,0%
0
0,0%
Page 6
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
Site Information
Site area
29,516 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Echeloh 4-32
Mining damage
and risks (acc. to
Drees&Sommer)
considered low; In case of new building constructions gas drainage is recommended resp. is required
Not registered in the register of contaminated sites; Environmental risk is considered low; Drain owned by the
city of Dortmund; Several parcels have to be treated as one unit to allow the construction of a single building on
more than one parcel
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
Yes
Lü 101 "Siedlung Echeloh"
23330
0.3
0.7
Additional comments
Between two and eight storeys maximum; Flat roof, No preservation or design statute
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57728
5
1580, 1195, 1192
Terra Heimbau 2
Parcels 1192, 1195:
Easement, waiver of claims for damages due to a value reduction of the property) (in favour of the respective
owner of the properties listed as beneficiary.
Right to build a gas and a water pipeline together with a right of access to the property, in favour of Dortmunder
Energie- und Wasserversorgung GmbH, Dortmund.
Parcel 1580:
Easement, waiver of claims for damages due to a value reduction of the property, in favour of the respective
Reservation of priority for two mortgages up to an amount of EUR 1,135,221 and EUR 2,647,520.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Site Plan
Subject property
Page 8
Dortmund III
Cluster 14
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Dortmund III
Cluster 14
n/a
01.09.2011
City
Dortmund
Date
01.03.2011
Minimum
Average
3.96 €/sq m
4.47 €/sq m
Maximum
5.19 €/sq m
Address
Date
Area
Monthly rent
Echeloh 4
01.12.2010
62 sq m
4.68 €/sq m
Echeloh 14
01.05.2011
62 sq m
4.84 €/sq m
Echeloh 8
01.02.2011
62 sq m
5.00 €/sq m
Echeloh 8
01.12.2010
70 sq m
5.00 €/sq m
Echeloh 12
01.01.2011
70 sq m
6.04 €/sq m
Address
Date
Area
Asking rent
Comments
Am Zitter 14, Dortmund
09.09.2011
67 sq m
Echeloh 45, Dortmund
09.09.2011
67 sq m
27.09.2011
67 sq m
Gröpperstr. 3, Witten
27.09.2011
84 sq m
09.09.2011
67 sq m
Address
Date
Area
Price p. sq m
Comments
No comparable
Address
Date
Area
Price p. sq m
Comments
44652 Herne
16.09.2011
228 sq m
44369 Dortmund
19.09.2011
980 sq m
509 € 4-storey apartment building, balconies
44267 Dortmund
16.09.2011
608 sq m
58300 Wetter
16.09.2011
1,540 sq m
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund III
44149
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Dortmund III
Cluster 14
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Residential block
1964
n/a
n/a
Freehold
No
11,662 sq m
21.42%
No
Income year 1
as % of GRI
508,180 €
611,584 €
598,261 €
228,155 €
44.90%
NOI (month 1x12)
Net Cash Flow
280,025 €
211,295 €
SWOT-Analysis
Strenghts
Weaknesses
Reasonable state of repair
Weak demand for residential units in high-rise buildings
Opportunities
Threats
Re-letting of the vacant commercial unit to a supermarket
works,
Property
4
Location
4
Valuation Result
Yield Profile
Multiplier
NIY
9.2
5.63%
7.7
7.71%
7.9
7.45%
Purchaser's costs
6.40%
per sq m
403 €
Page 1
29,901 3€
Market Value
4,700,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
4
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
4
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
4
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
4
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
4
4
1
2
3
4
As new
No obvious damage
Minor damage noted
4
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
3
2 No insulation
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
4
8
192
0
0
1964
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
3
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
1
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
yes
yes
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
reflected in our valuation: Repair of the facade; balcony repair; roof insula ion; renew gullies.
Page 3
yes
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
5
0
Additional
comments
Lettability
Additional
comments
4
the high-rise building construction) and vacancy can
be expected to remain high so that substantial
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
192
0
0
2
194
Total lettable area
11,662 sq m
11,662 sq m
0 sq m
0 sq m
0 sq m
Units let
153
0
0
2
155
Area let
9,164 sq m
0 sq m
0 sq m
0 sq m
9,164 sq m
Vacant units
39
0
0
0
39
Vacant area
2,498 sq m
0 sq m
0 sq m
0 sq m
2,498 sq m
Vacancy rate area
21.42%
0.00%
0.00%
0.00%
21.42%
Vacancy rate units
20.31%
0.00%
0.00%
0.00%
20.10%
4.62 €
0.00 €
0.00 €
0.00 €
4.62 €
Current rent p.a.
276.79 €
0.00 €
0.00 €
0.00 €
273.21 €
508,180 €
0€
0€
0€
508,180 €
4.50 €
0.00 €
0.00 €
0.00 €
4.50 €
273.33 €
0.00 €
0.00 €
0.00 €
270.51 €
598,261 €
0€
0€
0€
598,261 €
Market rent p.a.
Others
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Total Gross Revenue
% Growth
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
611,584 652,156 662,181 672,139 681,575 691,143 700,846 710,687 720,667 732,918 745,378
-103,405 -142,917 -112,788 -81,594 -82,981 -84,392 -85,827 -87,286 -88,770 -90,279 -91,813
508,180 509,239 549,392 590,545 598,593 606,751 615,020 623,401 631,897 642,639 653,564
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
508,180 509,239 549,392 590,545 598,593 606,751 615,020 623,401 631,897 642,639 653,564
0 2%
7.9%
7.5%
1.4%
1.4%
1.4%
1.4%
1.4%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-42,240 -42,958 -43,688 -44,431 -45,186 -45,955 -46,736 -47,530 -48,338 -49,160 -49,996
-10,164 -10,185 -10,988 -11,811 -11,972 -12,135 -12,300 -12,468 -12,638 -12,853 -13,071
-25,409 -25,841 -26,280 -26,727 -27,181 -27,643 -28,113 -28,591 -29,077 -29,572 -30,074
0
0
0
0
0
0
0
0
0
0
0
-29,976 -31,759 -25,064 -18,132 -18,440 -18,754 -19,073 -19,397 -19,727 -20,062 -20,403
-120,366 -122,412 -124,493 -126,610 -128,762 -130,951 -133,177 -135,441 -137,744 -140,085 -142,467
0
0
0
0
0
0
0
0
0
0
0
% of Gross Revenue
-228,155 -233,155 -230,514 -227,711 -231,542 -235,438 -239,399 -243,428 -247,524 -251,732 -256,011
44.9%
45 8%
42.0%
38.6%
38.7%
38.8%
38 9%
39.0%
39.2%
39.2%
39.2%
280,025 276,084 318,878 362,835 367,051 371,313 375,620 379,974 384,373 390,908 397,553
Renovation Costs
Leasing Commissions
Capital Expenditure
-68,730 -117,967 -119,972 -122,012
0
0
0
0
0 -137,295
0
0
-73,524
0
0
-74,774
0
0
-76,045
0
0
-77,338
0
0
-78,653
0
0
-79,990
0
0
-81,350
0
0
-68,730 -255,262 -119,972 -122,012
-73,524
-74,774
-76,045
-77,338
-78,653
-79,990
-81,350
Net Cash Flow
% Growth
211,295
Gross Value
Purchaser's Costs
Net Value
Market Value
0.4%
4.0%
4.8%
426 €
6.0%
6.0%
6.1%
6.1%
6.3%
6.4%
Net Cash Flow
1,670,943 €
3,300,148 €
4,971,090 €
5.9%
6.4%
350.000
7,0%
300.000
6,0%
250.000
5,0%
200.000
4,0%
150.000
3,0%
100.000
2,0%
50.000
1,0%
4,672,077 €
0
Running Yield in %
4.3%
Running Net Yield
20,822 198,906 240,823 293,527 296,539 299,575 302,636 305,720 310,918 316,203
-90.1% 855.3%
21.1%
21.9%
1.0%
1 0%
1.0%
1.0%
1.7%
1.7%
0,0%
4,700,000 €
9.2 x
7.7 x
Net Initial Yield
5.6%
Direct Cap Rate
4.3%
403 €
450.000
50,0%
400.000
45,0%
40,0%
350.000
35,0%
300.000
30,0%
250.000
25,0%
200.000
20,0%
150.000
15,0%
100.000
10,0%
50.000
5,0%
0
0,0%
Page 6
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
Site Information
Site area
20,493 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Echeloh 33-39
Mining damage
and risks (acc. to
Drees&Sommer)
considered low; In case of new building constructions gas drainage is recommended respectively is required
Not registered in the register of contaminated sites; Environmental risk is considered low; Several parcels have
to be treated as one unit to allow the construction of a single building on more than one parcel
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
Yes
23330
0.3
0.7
Additional comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57728
5
1582, 1584
Terra Heimbau 2
Parcel 1582:
Limited personal easement, right to build a transformer substation together with a right of access to the
property, in favour of Dortmunder Energie- und Wasserversorgung GmbH, Dortmund.
Parcel 1584:
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Site Plan
Subject property
Page 8
Dortmund IV
Cluster 15
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Dortmund IV
Cluster 15
n/a
01.09.2011
City
Dortmund
Date
01.03.2011
Minimum
Average
3.96 €/sq m
4.47 €/sq m
Maximum
5.19 €/sq m
Address
Date
Area
Monthly rent
Echeloh 37
01.06.2011
52 sq m
4.20 €/sq m
Echeloh 37
01.06.2011
52 sq m
4.20 €/sq m
Echeloh 39
01.06.2011
67 sq m
4.63 €/sq m
Echeloh 39
01.06.2011
52 sq m
4.33 €/sq m
Echeloh 35
01.06.2011
67 sq m
4.70 €/sq m
Address
Date
Area
Asking rent
Comments
09.09.2011
67 sq m
09.09.2011
67 sq m
27.09.2011
67 sq m
27.09.2011
84 sq m
09.09.2011
67 sq m
Address
Date
Area
Price p. sq m
Comments
No comparable
Address
Date
Area
Price p. sq m
Comments
45701 Herten
16.09.2011
2,896 sq m
42277 Wuppertal
15.09.2011
7,052 sq m
42555 Velbert
16.09.2011
7,928 sq m
58300 Wetter
16.09.2011
1,540 sq m
682 € 5-storey apartm.building, better location, better condition
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund IV
44149
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Dortmund IV
Cluster 15
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Other
1964
n/a
n/a
Freehold
No
1,011 sq m
54.53%
No
Income year 1
as % of GRI
44,394 €
57,743 €
60,950 €
25,101 €
56.54%
NOI (month 1x12)
Net Cash Flow
19,293 €
15,845 €
SWOT-Analysis
Strenghts
Weaknesses
All apartments have gardens or loggias,
Good visibility from access road
Opportunities
Threats
refurbishment
works,
Only fair to weak demand expected for commercial
Property
3
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
10.8
3.72%
8.3
6.29%
7.9
6.91%
Purchaser's costs
7.00%
per sq m
475 €
Page 1
33,924 €
Market Value
480,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
3
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
A heating facility is located adjacent to the Property.
Additional
comments
(suitability of the
location)
3
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
5
2 Mixed-use
2
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
0
0
3
6
103
1964
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
2
Additional
comments
Page 2
2
The Property consists of five bungalows, thereof two
bungalows are predominantly residential use and
three bungalows are commercial use. Furthermore,
the Property is fitted wi h a underground parking
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
3
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
n/a
3 Two bathrooms
Refurbished
n/a
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
n/a
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
n/a
n/a
1
2
3
4
None
Tiled
PVC
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
no
no
no
no
no
no
no
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
yes
Floor covering
n/a
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
yes
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
reflected in our valuation: Cleaning of the facade; roof insulation.
Page 3
yes
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
3
Access
3
Number of units
inspected
Residential
Commercial
0
2
Additional
comments
Lettability
Additional
comments
4
lettability is significantly limited due to the low
demand for commercial areas and vacancy can be
expected to remain high. Therefore we assume that
occupancy.
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
3
6
103
0
112
Total lettable area
1,011 sq m
195 sq m
816 sq m
0 sq m
0 sq m
Units let
3
2
72
0
77
Area let
195 sq m
264 sq m
0 sq m
0 sq m
460 sq m
Vacant units
0
4
31
0
35
Vacant area
0 sq m
551 sq m
0 sq m
0 sq m
551 sq m
Vacancy rate area
0.00%
67.60%
0.00%
0.00%
54.53%
Vacancy rate units
0.00%
66.67%
30.10%
0.00%
31.25%
4.85 €
3.10 €
0.00 €
0.00 €
8.05 €
315.77 €
410.00 €
26.84 €
0.00 €
48.05 €
Current rent p.a.
11,368 €
9,840 €
23,187 €
0€
44,394 €
5.00 €
4.00 €
0.00 €
0.00 €
6.88 €
325.78 €
543.75 €
18.76 €
0.00 €
62.12 €
Market rent p.a.
11,728 €
26,035 €
23,187 €
0€
60,950 €
Residential
19%
Residential
26%
Parking
52%
Commercial
22%
Commercial
81%
Residential
Structural vacancy
Commercial
Parking
0.0%
33.5%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
Cash Flow Analysis
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Total Gross Revenue
% Growth
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
% of Gross Revenue
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
34,557
-13,349
21,208
48,229
-24,570
23,659
48,774
-20,710
28,064
49,569
-16,711
32,857
51,167
-16,995
34,172
52,829
-17,284
35,544
54,557
-17,578
36,978
56,354
-17,877
38,477
58,224
-18,181
40,043
59,214
-18,490
40,724
60,220
-18,804
41,416
23,187
0
0
0
23,187
26,965
0
0
0
26,965
30,866
0
0
0
30,866
34,891
0
0
0
34,891
35,484
0
0
0
35,484
36,087
0
0
0
36,087
36,701
0
0
0
36,701
37,324
0
0
0
37,324
37,959
0
0
0
37,959
38,604
0
0
0
38,604
39,261
0
0
0
39,261
44,394
50,624
14 0%
58,929
16.4%
67,748
15.0%
69,655
2.8%
71,631
2.8%
73,679
2 9%
75,801
2.9%
78,002
2.9%
79,328
1.7%
80,677
1.7%
-1,850
-888
-2,220
-4,120
-6,616
-9,408
0
-1,881
-1,012
-2,257
-4,190
-6,098
-9,568
0
-1,913
-1,179
-2,296
-4,261
-5,132
-9,731
0
-1,946
-1,355
-2,335
-4,334
-4,132
-9,896
0
-1,979
-1,393
-2,375
-4,407
-4,202
-10,064
0
-2,012
-1,433
-2,415
-4,482
-4,273
-10,235
0
-2,047
-1,474
-2,456
-4,559
-4,346
-10,409
0
-2,082
-1,516
-2,498
-4,636
-4,420
-10,586
0
-2,117
-1,560
-2,540
-4,715
-4,495
-10,766
0
-2,153
-1,587
-2,583
-4,795
-4,571
-10,949
0
-2,189
-1,614
-2,627
-4,876
-4,649
-11,135
0
-25,101 -25,007
118.4% 105.7%
-24,511
87.3%
-23,997
73.0%
-24,420
71.5%
-24,851
69.9%
-25,290
68.4%
-25,737
66.9%
-26,193
65.4%
-26,638
65.4%
-27,091
65.4%
19,293
25,617
34,418
43,751
45,236
46,780
48,389
50,064
51,809
52,690
53,585
Renovation Costs
Leasing Commissions
Capital Expenditure
-3,448
0
0
-10,612
0
-41,189
-10,793
0
0
-10,976
0
0
-3,689
0
0
-3,751
0
0
-3,815
0
0
-3,880
0
0
-3,946
0
0
-4,013
0
0
-4,081
0
0
-3,448
-51,801
-10,793
-10,976
-3,689
-3,751
-3,815
-3,880
-3,946
-4,013
-4,081
Net Cash Flow
% Growth
15,845
-26,183 23,625
-265 2% -190.2%
32,775
38.7%
41,547
26.8%
43,029
3.6%
44,574
3 6%
46,184
3.6%
47,863
3.6%
48,677
1.7%
49,504
1.7%
6.3%
8.0%
8.3%
8.6%
8.9%
9.2%
9.4%
9.5%
Gross Value
-5.0%
4.6%
Net Cash Flow
199,911 €
318,649 €
518,560 €
513 €
Purchaser's Costs
7.0%
60.000
12,0%
50.000
10,0%
40.000
30.000
8,0%
20.000
6,0%
10.000
0
10.000
4,0%
Running Yield in %
3.1%
Running Net Yield
2,0%
20.000
Net Value
484,636 €
Market Value
480,000 €
30.000
0,0%
10.8 x
8.3 x
Net Initial Yield
3.7%
Direct Cap Rate
3.1%
60.000
120,0%
50.000
100,0%
40.000
80,0%
30.000
60,0%
20.000
40,0%
10.000
20,0%
0
0,0%
Page 6
475 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
Site Information
Site area
7,227 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Echeloh 51-59
Mining damage
and risks (acc. to
Drees&Sommer)
considered low; In case of new building constructions gas drainage is recommended respectively is required
concerning Echeloh 51-55 and 59
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
Yes
23330
Special area
0.3
0.7
Additional comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57728
5
1576, 663, 667, 659, 660, 661, 666
Terra Heimbau 2
Parcels 1576, 663, 667, 659, 660, 661, 666:
Parcel 1582:
Reservation of priority for two mortgages up to an amount of EUR 1,135,221 and EUR 2,647,520.
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Site Plan
Subject property
Page 8
Dortmund V
Cluster 16
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Dortmund V
Cluster 16
n/a
01.09.2011
City
Dortmund
Date
01.03.2011
Minimum
Average
3.96 €/sq m
4.47 €/sq m
Maximum
5.19 €/sq m
Address
Date
Area
Monthly rent
No recent
lease agreements
Address
Date
Area
Asking rent
Comments
67 sq m
09.09.2011
67 sq m
Harkortstr. 16, Cast.-Rau. 09.09.2011
258 sq m
09.09.2011
5.00 €/sq m Commercial unit, mixed use building in residential area
27.09.2011
84 sq m
09.09.2011
67 sq m
Address
Date
Area
Price p. sq m
Comments
No comparable
Address
Date
Area
Price p. sq m
Comments
2,730 sq m
348 € 2-storey mixed-use building, worse condition
19.09.2011
784 sq m
395 € 1-storey post office building, worse condition
19.09.2011
1,000 sq m
19.09.2011
660 sq m
44357 Dortmund
16.09.2011
44329 Dortmund
45329 Essen
45661 Recklinghausen
485 € 1-storey discounter, twenty parking spaces
697 € 2-storey mixed-use build., better location, better condition
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund V
44149
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Dortmund V
Cluster 16
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Residential block
1979
n/a
n/a
Freehold
Yes
3,500 sq m
13.33%
No
Income year 1
as % of GRI
147,408 €
166,682 €
166,682 €
53,664 €
36.40%
93,744 €
70,996 €
NOI (month 1x12)
Net Cash Flow
SWOT-Analysis
Strenghts
Weaknesses
Most apartments have balconies or loggias,
Good public transport and local supply,
Partly fitted with elevators
Rent restrictions until 2080
Opportunities
Threats
Improvement of external appearance
works,
Rent is fixed on a long-term basis
Property
4
Location
4
Valuation Result
Yield Profile
Multiplier
NIY
10.9
5.68%
9.6
6.85%
9.6
6.85%
Purchaser's costs
6.40%
per sq m
457 €
Page 1
99,286 €
Market Value
1,600,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
3
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
4
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
4
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
4
No. of buildings
1 Residential use
4
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
3
1
3-4
46
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
3
0
4
1
2
3
4
As new
No obvious damage
Minor damage noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
0
1979
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
We were not able to inspect the roof and roof
coverings.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
3
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
ca. 2004
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
2
Lifts
1 Yes
2 No
1
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
3
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
no
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
no
yes
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
yes
yes
Some of the buildings have inclined surfaces. According to the technical due diligence prepared by Drees&Sommer the following
repair works are required and have been reflected in our valuation: Renewal of floor covering; repair and maintenance of outside
facilities; repair of roof sealing; redecoration of stairceses; repair waterproofing of external basement walls.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
3
0
Additional
comments
Lettability
Additional
comments
4
a considerable vacancy. Furthermore, the property
is also subject to social subsidies and depending on
the guidlines of the local housing authorities. We
assume that the lettability is significantly limited and
vacancy can be expected to remain high so that
occupancy.
Saleability
Additional
comments
Page 4
3
comparable properties is fair. We assume that he
saleability is fair so that additional promotional
measures are required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
46
0
0
1
47
Total lettable area
3,500 sq m
3,500 sq m
0 sq m
0 sq m
0 sq m
Units let
40
0
0
1
41
Area let
3,033 sq m
0 sq m
0 sq m
0 sq m
3,033 sq m
Vacant units
6
0
0
0
6
Vacant area
467 sq m
0 sq m
0 sq m
0 sq m
467 sq m
Vacancy rate area
13.33%
0.00%
0.00%
0.00%
13.33%
Vacancy rate units
13.04%
0.00%
0.00%
0.00%
12.77%
4.05 €
0.00 €
0.00 €
0.00 €
4.05 €
Current rent p.a.
307.10 €
0.00 €
0.00 €
0.00 €
299.61 €
147,408 €
0€
0€
0€
147,408 €
4.05 €
0.00 €
0.00 €
0.00 €
4.05 €
308.12 €
0.00 €
0.00 €
0.00 €
301.57 €
166,682 €
0€
0€
0€
166,682 €
Market rent p.a.
Others
Residential
100%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
2.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
10.00 €/sq m
10.00 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
166,682 172,975 175,916 178,906 181,947 185,041 188,186 191,385 194,639 197,948 201,313
-19,274 -24,445 -18,645 -12,640 -12,855 -13,074 -13,296 -13,522 -13,752 -13,985 -14,223
147,408 148,530 157,271 166,266 169,092 171,967 174,890 177,864 180,887 183,962 187,090
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Gross Revenue
% Growth
147,408 148,530 157,271 166,266 169,092 171,967 174,890 177,864 180,887 183,962 187,090
0 8%
5.9%
5.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-10,120
-2,948
-7,370
0
-5,599
-27,626
0
-10,292
-2,971
-7,496
0
-6,036
-28,096
0
-10,467
-3,145
-7,623
0
-4,604
-28,573
0
-10,645
-3,325
-7,753
0
-3,121
-29,059
0
-10,826
-3,382
-7,885
0
-3,174
-29,553
0
-11,010
-3,439
-8,019
0
-3,228
-30,056
0
-11,197
-3,498
-8,155
0
-3,283
-30,567
0
-11,387
-3,557
-8,293
0
-3,339
-31,086
0
-11,581
-3,618
-8,434
0
-3,395
-31,615
0
-11,778
-3,679
-8,578
0
-3,453
-32,152
0
-11,978
-3,742
-8,724
0
-3,512
-32,699
0
% of Gross Revenue
-53,664
36.4%
-54,890
37 0%
-54,413
34.6%
-53,903
32.4%
-54,820
32.4%
-55,752
32.4%
-56,699
32.4%
-57,663
32.4%
-58,643
32.4%
-59,640
32.4%
-60,654
32.4%
93,744
93,640 102,858 112,363 114,273 116,216 118,191 120,200 122,244 124,322 126,435
Renovation Costs
Leasing Commissions
Capital Expenditure
-22,748
0
0
-33,063 -33,625
0
0
0 -142,808
-34,197
0
0
-24,335
0
0
-24,749
0
0
-25,169
0
0
-25,597
0
0
-26,032
0
0
-26,475
0
0
-26,925
0
0
-22,748
-33,063 -176,434
-34,197
-24,335
-24,749
-25,169
-25,597
-26,032
-26,475
-26,925
60,577 -73,575 78,166
-14.7% -221.5% -206.2%
89,938
15.1%
91,467
1.7%
93,022
1.7%
94,603
1.7%
96,212
1.7%
97,847
1.7%
99,511
1.7%
5.4%
5.5%
5.6%
5.7%
5.8%
5.9%
6.0%
4.3%
Gross Value
Purchaser's Costs
3.7%
-4.5%
4.7%
Net Cash Flow
476,639 €
1,173,993 €
1,650,631 €
472 €
120.000
1,551,345 €
Market Value
1,600,000 €
6,0%
80.000
60.000
5,0%
40.000
4,0%
20.000
0
20.000
3,0%
2,0%
40.000
6.4%
Net Value
7,0%
100.000
60.000
Running Yield in %
Running Net Yield
70,996
Net Cash Flow
% Growth
1,0%
80.000
100.000
0,0%
10.9 x
9.6 x
Net Initial Yield
5.7%
Direct Cap Rate
4.3%
457 €
140.000
40,0%
120.000
35,0%
30,0%
100.000
25,0%
80.000
20,0%
60.000
15,0%
40.000
10,0%
20.000
5,0%
0
0,0%
Page 6
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
Site Information
Site area
5,877 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Kirchlinder Str. 4-8, Zollernstr. 1A
Mining damage
and risks (acc. to
Drees&Sommer)
considered low; In case of new building constructions gas drainage is recommended
charges
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Mixed use area (FNP)
Additional comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
62327
1
758
Terra Heimbau 407
No restrictions
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Site Plan
Subject property
Page 8
Dortmund VI
Cluster 17
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Dortmund VI
Cluster 17
n/a
01.09.2011
City
Date
Minimum
Average
Area
Monthly rent
Maximum
not applicable
Address
Date
Kirchlinder Str. 4
01.08.2010
80 sq m
4.05 €/sq m
Kirchlinder Str. 8
01.06.2011
94 sq m
4.05 €/sq m
Kirchlinder Str. 8
01.10.2010
63 sq m
4.05 €/sq m
Address
Date
Area
Asking rent
Comments
Steinfurtweg 29, Dortm.
12.09.2011
70 sq m
Steinfurtweg 20, Dortm.
12.09.2011
70 sq m
Zollernstraße 38, Dortm.
12.09.2011
60 sq m
Kirchlinder Str. 12, Dortm
12.09.2011
64 sq m
Zollernstraße 19, Dortm.
12.09.2011
61 sq m
Address
Date
Area
Price p. sq m
Comments
No comparable
Address
Date
Area
Price p. sq m
Comments
19.09.2011
771 sq m
44652 Herne
19.09.2011
677 sq m
465 € 2,5-storey apartment building
44369 Dortmund
19.09.2011
980 sq m
58455 Witten
19.09.2011
340 sq m
550 € 2,5-storey apartment building
44267 Dortmund
16.09.2011
608 sq m
655 € 4-storey apartment building, partly refurbished
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VI
44369
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
Dortmund VI
Cluster 17
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1962
n/a
n/a
Freehold
No
12,060 sq m
13.10%
No
Income year 1
as % of GRI
552,123 €
646,896 €
731,481 €
195,808 €
35.46%
NOI (month 1x12)
Net Cash Flow
356,315 €
330,113 €
SWOT-Analysis
Strenghts
Weaknesses
Almost fully let,
Most apartments have balconies or loggias
Let below market level
Opportunities
Threats
Significant potential for rent increase,
Sustainable high occupancy rate
Environmental risks
Property
2
Location
3
Valuation Result
Yield Profile
Multiplier
NIY
15.2
3.99%
13.0
5.05%
11.5
6.00%
Purchaser's costs
5.80%
per sq m
696 €
Page 1
48,946 1€
Market Value
8,400,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
2
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
3
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2 No insulation
13
2-4
228
0
23
1962
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Roof tiles
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
1
Additional
comments
Page 2
1
Most of the units are fitted with balconies. Most of
the facades are insulated.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
2
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
2
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
1999-2002
1
Electrical wiring
2 Out-dated
1
Water and
sewage pipes
2 Out-dated
1
Warm water
supply
1 Central
2 Boiler
1
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
2
3 Two bathrooms
Refurbished
Fully refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
2
1
4
Fully refurbished
According to the information provided all units - apart of two units - have been refurbished.
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
no
no
no
no
no
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
no
no
no
no
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
no
repair works are required and have been reflected in our valuation: Redecoration of the staircases; roof insulation; cleaning and
painting of the facade.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
2
Access
3
Number of units
inspected
Residential
Commercial
4
0
Additional
comments
Lettability
Additional
comments
3
The property is in a good condition but shows a
lettability is fair and additional measures are
Saleability
Additional
comments
Page 4
2
The property is in a good condition but shows a
properties is good. We assume that the saleability is
good and only minor promotional measures are
required.
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
228
0
23
2
253
Total lettable area
12,060 sq m
12,060 sq m
0 sq m
0 sq m
0 sq m
Units let
199
0
22
2
223
Area let
10,481 sq m
0 sq m
0 sq m
0 sq m
10,481 sq m
Vacant units
29
0
1
0
30
Vacant area
1,580 sq m
0 sq m
0 sq m
0 sq m
1,580 sq m
Vacancy rate area
13.10%
0.00%
0.00%
0.00%
13.10%
Vacancy rate units
12.72%
0.00%
4.35%
0.00%
11.86%
4.33 €
0.00 €
0.00 €
0.00 €
4.39 €
Current rent p.a.
227.92 €
0.00 €
29.77 €
0.00 €
206.32 €
544,263 €
0€
7,860 €
0€
552,123 €
5.00 €
0.00 €
0.00 €
0.00 €
5.05 €
264.48 €
0.00 €
28.48 €
0.00 €
240.94 €
723,622 €
0€
7,860 €
0€
731,481 €
Market rent p.a.
Others
Parking
1%
Residential
99%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
0.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
25.00 €/sq m
25.00 €/sq m
0.00 €/unit
9.50 €/sq m
9.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
639,037 660,159 678,614 698,732 722,854 747,820 773,661 800,408 828,093 842,171 856,488
-94,774 -97,840 -68,462 -38,058 -38,705 -39,363 -40,032 -40,713 -41,405 -42,109 -42,824
544,263 562,319 610,152 660,674 684,149 708,457 733,629 759,696 786,688 800,062 813,663
7,860
0
0
0
7,860
8,115
0
0
0
8,115
8,376
0
0
0
8,376
8,643
0
0
0
8,643
8,790
0
0
0
8,790
8,940
0
0
0
8,940
9,092
0
0
0
9,092
9,246
0
0
0
9,246
9,403
0
0
0
9,403
9,563
0
0
0
9,563
9,726
0
0
0
9,726
Total Gross Revenue
% Growth
552,123 570,433 618,528 669,318 692,939 717,397 742,721 768,942 796,092 809,625 823,389
3 3%
8.4%
8.2%
3.5%
3.5%
3.5%
3.5%
3.5%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-50,317
-11,042
-27,606
-920
-18,955
-86,967
0
% of Gross Revenue
-51,173
-11,409
-28,075
-936
-19,568
-88,446
0
-52,043
-12,371
-28,553
-952
-13,692
-89,949
0
-52,927
-13,386
-29,038
-968
-7,612
-91,478
0
-53,827
-13,859
-29,532
-984
-7,741
-93,034
0
-54,742
-14,348
-30,034
-1,001
-7,873
-94,615
0
-55,673
-14,854
-30,544
-1,018
-8,006
-96,224
0
-56,619
-15,379
-31,064
-1,035
-8,143
-97,859
0
-57,582 -58,561 -59,556
-15,922 -16,193 -16,468
-31,592 -32,129 -32,675
-1,053
-1,071
-1,089
-8,281
-8,422
-8,565
-99,523 -101,215 -102,936
0
0
0
-195,808 -199,606 -197,559 -195,409 -198,976 -202,612 -206,319 -210,099 -213,952 -217,589 -221,288
36.0%
35.5%
32.4%
29.6%
29.1%
28.6%
28.1%
27.7%
27.2%
27.2%
27.2%
356,315 370,827 420,969 473,908 493,963 514,784 536,402 558,843 582,140 592,036 602,101
Renovation Costs
Leasing Commissions
Capital Expenditure
-26,202
0
0
-40,034
0
-43,426
-40,715
0
0
-41,407
0
0
-28,030
0
0
-28,506
0
0
-28,991
0
0
-29,484
0
0
-29,985
0
0
-30,495
0
0
-31,013
0
0
-26,202
-83,460
-40,715
-41,407
-28,030
-28,506
-28,991
-29,484
-29,985
-30,495
-31,013
Net Cash Flow
% Growth
330,113 287,367 380,254 432,501 465,933 486,278 507,411 529,360 552,155 561,542 571,088
-12 9%
32.3%
13.7%
7.7%
4.4%
4 3%
4.3%
4.3%
1.7%
1.7%
Gross Value
Purchaser's Costs
3.2%
4.3%
4.8%
740 €
5.4%
5.7%
5.9%
6.2%
6.3%
600.000
7,0%
6,0%
500.000
5,0%
400.000
4,0%
300.000
3,0%
200.000
2,0%
5.8%
100.000
Net Value
Market Value
6.4%
Net Cash Flow
3,276,656 €
5,651,781 €
8,928,438 €
5.2%
8,438,977 €
Running Yield in %
3.7%
Running Net Yield
1,0%
0
0,0%
8,400,000 €
15.2 x
13.0 x
Net Initial Yield
4.0%
Direct Cap Rate
3.7%
696 €
700.000
40,0%
600.000
35,0%
30,0%
500.000
25,0%
400.000
20,0%
300.000
15,0%
200.000
10,0%
100.000
5,0%
0
0,0%
Page 6
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Site Information
Site area
40,405 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Kosselstr. 46-48, Jungferntalstr. 71-81, 98-100, 85-113, 76-94
Mining damage
and risks (acc. to
Drees&Sommer)
considered low
Not listed in the reg. of c. s.; Environmental risk is considered low; Jungfernstalstr. 85 - 95 is listed as "other
backfill site", soil investigations are required in case of future constr. measures on-site; Risk is considered
average; Public land charges (parking spaces, clearance areas) on Jungferntalstr. 71-75 and 84-86)
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57547
3
1257
Terra Heimbau 2
No restrictions
Comments
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57665
3
164, 498
Terra Heimbau 2
No restrictions
Comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57558
3
820, 1249
Terra Heimbau 2
Parcel 820:
right of way (in favour of the respective owner of the property listed as beneficiary)
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
41857
3
495, 821
Terra Heimbau 2
No restrictions
Comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
41673, 58524, 41671, 55000, 41674
3
494, 497, 1045, 162, 163, 1232, 1082
Terra Heimbau 2
No restrictions
Comments
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Site Plan
Subject property
Page 10
Dortmund VII
Cluster 18
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Dortmund VII
Cluster 18
n/a
01.09.2011
City
Dortmund
Date
01.03.2011
Minimum
Average
3.96 €/sq m
4.47 €/sq m
Maximum
5.19 €/sq m
Address
Date
Area
Monthly rent
Jungferntalstr. 88
01.07.2011
57 sq m
4.56 €/sq m
Jungferntalstr. 98
01.08.2011
40 sq m
4.81 €/sq m
Jungferntalstr. 81
01.07.2011
59 sq m
4.98 €/sq m
Jungferntalstr. 85
01.06.2011
49 sq m
5.01 €/sq m
Jungferntalstr. 91
01.04.2011
49 sq m
5.01 €/sq m
Address
Date
Area
Asking rent
Comments
Willstätterstr. 51, Dortm.
09.09.2011
69 sq m
Bothestr. 22, Dortmund
09.09.2011
57 sq m
09.09.2011
64 sq m
A.-Schw.-Weg 25, Dortm.
09.09.2011
69 sq m
09.09.2011
57 sq m
Address
Date
Area
Price p. sq m
Comments
No comparable
Address
Date
Area
Price p. sq m
Comments
58455 Witten
19.09.2011
340 sq m
550 € 2,5-storey apartment building, worse condition
45711 Datteln
19.09.2011
562 sq m
45661 Recklinghausen
19.09.2011
595 sq m
44379 Dortmund
19.09.2011
3,110 sq m
44145 Dortmund
19.09.2011
608 sq m
833 € 3,5-storey apartment building, refurbished, better location
853 € 3-storey apartment building, refurbished, better location
Page 11
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VII
44379
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 12
Dortmund VII
Cluster 18
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Property type
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Apartment building
1953
n/a
n/a
Freehold
No
10,481 sq m
21.56%
No
Income year 1
as % of GRI
422,963 €
516,704 €
553,368 €
207,184 €
48.98%
NOI (month 1x12)
Net Cash Flow
215,779 €
154,122 €
SWOT-Analysis
Strenghts
Weaknesses
Sufficient parking spaces on site and on the access roads,
Quiet residential area
Subsidence damages due to mining activities,
Opportunities
Threats
Adding (French) balconies to the rear,
refurbishment
accommodations,
Property
4
Location
4
Valuation Result
Yield Profile
Multiplier
NIY
9.9
4.78%
8.1
6.86%
7.6
7.67%
Purchaser's costs
6.40%
per sq m
401 €
Page 1
27,158 1€
Market Value
4,200,000 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Use
Quality of area
Description of
location
1
2
3
4
Mixed-use area
2
1
2
3
4
4
1
2
3
4
Town centre
Peripheral location
3
1 Less than 100 m
Infrastructure
(distance to
2 Less than 500 m
4 More han 1,000 m
1
1
2
3
4
2
Noise exposure
Low
Medium
High
Very high
Potential
environmental
issues
1 No visible issues
Location rating
1
2
3
4
5
6
Additional
comments
(suitability of the
location)
1
Excellent
Very good
Good
Fair
Fairly poor
Poor
4
Type of building
1
2
3
4
5
6
Single-family house
Semi-detached house
Residential block
Mixed-use
Other
1
2
3
4
Fully refurbished
Partly refurbished
Unrefurbished
4
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
1
3 Commercial use
ground floor)
State of
refurbishment
Building
construction
Facade
Roof
Windows
Balconies
1 Rendered
3 Exposed concrete
4 Face brick facade
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
1
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
4
1
2
3
4
As new
No obvious damage
Minor damage noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
3
2 No insulation
Roof tiles
1
2
3
4
Plastic
Metal
1
2
3
4
Loggia
No
Attics
2
Entrance
3 Unrefurbished
3
Additional
comments
Page 2
2
20
2
222
0
48
1953
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Electrical
installations
within residential
units
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Staircases
1
2
3
4
Largely renewed
Partly renewed
Out-dated
4
Heating
2 Apartment heating
3 District heating
4 Stove heating
Installed
2007-2009
1
Electrical wiring
2 Out-dated
2
Water and
sewage pipes
2 Out-dated
2
Warm water
supply
1 Central
2 Boiler
1
Lifts
1 Yes
2 No
2
1 No visible issues
1
Additional
comments
Layout of the
residential units
1
2
3
4
Very good
Good
Fair
Poor
3
3 Two bathrooms
Refurbished
Not refurbished
Kitchen
Additional
comments
1 No kitchen
2 Fitted kitchen
3 Kitchenette
4 Seperate kitchen
Refurbished
1
Tenant structure 1
2
3
4
Very good
Good
Fair
Weak
2 Shower
3 Ba h and shower
Floor covering
4
1
2
3
4
None
Tiled
PVC
3
1
4
Not refurbished
Visible Damage
Facade/structure 1
2
3
4
5
6
Roof
Additional
comments
1
2
3
4
5
Cracks in masonry
Damaged facade
Damaged drainage
Damaged balconies
yes
yes
no
yes
yes
no
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Mould
Pipeline cracks
Water damage
Damaged windows
View comment
yes
yes
no
yes
no
no
no
Accommodation
1
2
3
4
5
6
7
Cellar
2 Cracks in masonry
no
no
no
Entrance and
common areas
2
no
no
repair works are required and have been reflected in our valuation: Repair cracks, cleaning and painting of the facade; roof
insulation; redecora ion of the staircases; repair waterproofing of external basement walls; renewal of electric installations.
Page 3
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
External
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Below average
Poor
Ruinous
4
Access
3
Number of units
inspected
Residential
Commercial
6
0
Additional
comments
Lettability
Additional
comments
4
Saleability
Additional
comments
Page 4
4
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Residential
Commercial
Parking
Others
Total
222
0
48
0
270
Total lettable area
10,481 sq m
10,481 sq m
0 sq m
0 sq m
0 sq m
Units let
171
0
34
0
205
Area let
8,221 sq m
0 sq m
0 sq m
0 sq m
8,221 sq m
Vacant units
51
0
14
0
65
Vacant area
2,260 sq m
0 sq m
0 sq m
0 sq m
2,260 sq m
Vacancy rate area
21.56%
0.00%
0.00%
0.00%
21.56%
Vacancy rate units
22.97%
0.00%
29.17%
0.00%
24.07%
4.13 €
0.00 €
0.00 €
0.00 €
4.29 €
Current rent p.a.
198.47 €
0.00 €
38.47 €
0.00 €
171.94 €
407,268 €
0€
15,695 €
0€
422,963 €
4.50 €
0.00 €
0.00 €
0.00 €
4.63 €
212.45 €
0.00 €
27.25 €
0.00 €
179.78 €
537,673 €
0€
15,695 €
0€
553,368 €
Market rent p.a.
Parking
4%
Residential
96%
Residential
100%
Residential
Structural vacancy
Commercial
Parking
5.0%
0.0%
0.0%
0.0 month's rent
0.0 month's rent
0.0 month's rent
Tenant improvements
75.00 €/sq m
75.00 €/sq m
0.00 €/unit
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Marketing costs
220.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
12.00 €/sq m
0.00 €/unit
Valuation Approach
RICS, London.
Page 5
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Cash Flow Analysis
Year 0
Gross Revenue
Parking
Subsidies
Rental Guarantee
Total Other Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
501,009 543,112 555,036 567,878 582,996 598,524 614,473 630,855 647,682 658,693 669,891
-93,741 -128,500 -100,709 -71,936 -73,159 -74,402 -75,667 -76,953 -78,262 -79,592 -80,945
407,268 414,612 454,327 495,942 509,837 524,122 538,806 553,902 569,421 579,101 588,946
15,695
0
0
0
15,695
17,683
0
0
0
17,683
19,734
0
0
0
19,734
21,850
0
0
0
21,850
22,222
0
0
0
22,222
22,599
0
0
0
22,599
22,984
0
0
0
22,984
23,374
0
0
0
23,374
23,772
0
0
0
23,772
24,176
0
0
0
24,176
24,587
0
0
0
24,587
Total Gross Revenue
% Growth
422,963 432,295 474,061 517,793 532,059 546,721 561,790 577,276 593,192 603,277 613,532
2 2%
9.7%
9.2%
2.8%
2.8%
2 8%
2.8%
2.8%
1.7%
1.7%
Operating Expenses
Management Costs
Vacancy Costs
Sinking Fund
O her Costs
-49,154 -49,990 -50,839 -51,704 -52,583 -53,476 -54,386 -55,310 -56,250 -57,207 -58,179
-8,459
-8,646
-9,481 -10,356 -10,641 -10,934 -11,236 -11,546 -11,864 -12,066 -12,271
-21,148 -21,508 -21,873 -22,245 -22,623 -23,008 -23,399 -23,797 -24,201 -24,613 -25,031
-1,920
-1,953
-1,986
-2,020
-2,054
-2,089
-2,124
-2,160
-2,197
-2,235
-2,273
-27,120 -28,556 -22,380 -15,986 -16,257 -16,534 -16,815 -17,101 -17,391 -17,687 -17,988
-99,383 -101,072 -102,790 -104,538 -106,315 -108,122 -109,961 -111,830 -113,731 -115,664 -117,631
0
0
0
0
0
0
0
0
0
0
0
% of Gross Revenue
-207,184 -211,724 -209,350 -206,848 -210,474 -214,164 -217,920 -221,744 -225,635 -229,471 -233,372
50.9%
51.1%
46.1%
41.7%
41.3%
40.9%
40.4%
40.0%
39.6%
39.6%
39.6%
215,779 220,571 264,711 310,945 321,586 332,557 343,869 355,533 367,557 373,806 380,160
Renovation Costs
Leasing Commissions
Capital Expenditure
-61,657 -106,962 -108,780 -110,629
0
0
0
0
0 -525,891
0
0
-65,958
0
0
-67,079
0
0
-68,220
0
0
-69,379
0
0
-70,559
0
0
-71,758
0
0
-72,978
0
0
-61,657 -632,852 -108,780 -110,629
-65,958
-67,079
-68,220
-69,379
-70,559
-71,758
-72,978
Net Cash Flow
% Growth
154,122 -412,281 155,931 200,315 255,628 265,478 275,650 286,153 296,998 302,047 307,182
-367.5% -137.8%
28.5%
27.6%
3.9%
3 8%
3.8%
3.8%
1.7%
1.7%
Gross Value
Purchaser's Costs
-9.1%
3.5%
4.4%
431 €
6.4%
Net Value
4,243,458 €
Market Value
4,200,000 €
5.9%
6.1%
6.3%
6.6%
6.7%
6.8%
Net Cash Flow
1,129,813 €
3,385,226 €
4,515,039 €
5.7%
400.000
8,0%
300.000
7,0%
200.000
6,0%
100.000
5,0%
0
100.000
4,0%
3,0%
200.000
2,0%
300.000
400.000
1,0%
500.000
0,0%
Running Yield in %
3.4%
Running Net Yield
9.9 x
8.1 x
Net Initial Yield
4.8%
Direct Cap Rate
3.4%
400.000
60,0%
350.000
50,0%
300.000
40,0%
250.000
200.000
30,0%
150.000
20,0%
100.000
10,0%
50.000
0
0,0%
Page 6
401 €
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Site Information
Site area
45,827 sq m
0 sq m
n/a
n/a
n/a
Address
Contamination
Land charges
(according to
Drees&Sommer)
Erpinghofstr. 24-34A, 48-58, 61-67, Rupinghofstr.. 1-24, Travemannstr. 5-9, Welkener Str. 25-31
Mining damage
and risks (acc. to
Drees&Sommer)
Subsidence damages due to mining activitied in 1979/80 observed; Cracks in the building facades and in the
cellar walls; Buildings are inclined or uplifted; Risk of subsidence damages is considered low
Not registered in the register of contaminated sites; Environmental risk is considered low; Right of way (garage
courtyard) concerning Erpinghofstr. 34, 34a, 45 and 45a
Leasehold
No
0
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Designated use
Plot ratio (GFZ)
Yes
No
Additional comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57635
1
12, 14, 15, 72, 463, 462, 488, 487, 491, 492, 527, 529, 536, 563, 567
Terra Heimbau 2
Parcels 14, 15, 72, 488, 487, 491, 492, 563:
Limited personal easement, all apartments located on the respective properties must be inhabited by persons
designated by sec 5.1 of the Coalminers' Housing Promotion Act 23 Dec. 1953, in favour of Landesbank für
Westfalen, Girozentrale, Münster/Westfalen.
Parcel 563:
Right to build and maintain subterranean drain pipes and a right to access the property together with a ban on
construction and a limitation of use for the owner of the property, in favour of Hansa-Bergbau
Aktiengesellschaft, Dortmund.
Parcel 72:
Limited personal easement, right to run and maintain drain pipes and a right of access to the property together
with a ban on construction and a limitation of use for the owner, in favour of Tiefbauamt of the City of Dortmund.
Continue "Comments"
Comments
Parcels 462, 463:
Limited personal easement, right to build and maintain two pressure pipelines and a right of access together
with a ban on construction and a limitation of use for the owner, in favour of Emschergenossenschaft, Essen.
Parcels 487, 529:
Limited personal easement, right to build and maintain subterranean drain pipes together with a ban on
construction and a limitation of use for the owner, in favour of the city of Dortmund.
Page 7
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
57564
1
13, 76
Terra Heimbau 2
Parcel 76:
Right to build and maintain subterranean drain pipes and a right of access to the property together with a ban
on construction and a limitation of use for the owner of the property (in favour of Hansa-Bergbau
Aktiengesellschaft, Dortmund);
construction and a limitation of use for the owner of the property (in favour of the city of Dortmund);
Limited personal easement (right to run and maintain drain pipes and a right of access to the property together
with a ban on construction and a limitation of use for the owner) (in favour of Tiefbauamt of the City of
Dortmund)
Comments
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
40096
1
378, 75
Terra Heimbau 2
Parcel 378:
Right of way (in favour of the respective owner of the property listed as beneficiary);
construction and a limitation of use for the owner of the property (in favour of Hansa-Bergbau
Aktiengesellschaft, Dortmund)
Comments
Page 8
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
Land Register
Extract dated
19.08.2011
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Dortmund
38564
1
626
Terra Heimbau 2
No restrictions
Comments
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 9
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Site Plan
Subject property
Page 10
Dortmund VIII
Cluster 19
n/a
01.09.2011
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Dortmund VIII
Cluster 19
n/a
01.09.2011
City
Dortmund
Date
01.03.2011
Minimum
Average
3.96 €/sq m
4.47 €/sq m
Maximum
5.19 €/sq m
Address
Date
Area
Monthly rent
Rupinghofstr. 20
01.08.2011
51 sq m
4.57 €/sq m
Rupinghofstr. 10
01.08.2011
64 sq m
4.71 €/sq m
Rupinghofstr. 14
01.08.2011
38 sq m
4.95 €/sq m
Rupinghofstr. 24
01.08.2011
40 sq m
5.44 €/sq m
Erpinghofstr. 32
01.08.2011
43 sq m
5.21 €/sq m
Address
Date
Welken. Str. 4, Dortmund
09.09.2011
Area
53 sq m
Asking rent
3.75 €/sq m 3-room apartment, ground floor
Comments
Welken. Str. 2, Dortmund
09.09.2011
53 sq m
3.75 €/sq m 3-room apartment, 2nd floor
Erpinghofstr.9, Dortmund
09.09.2011
63 sq m
3.78 €/sq m 3-room apartment, comparable fit-out
Servatiusstr. 11, Dortm.
09.09.2011
67 sq m
4.59 €/sq m 3-room apartment, 1st floor, refurbished
Pankratius. 1, Dortmund
09.09.2011
52 sq m
Address
Date
Area
Price p. sq m
Comments
No comparable
Address
Date
Area
Price p. sq m
Comments
19.09.2011
444 sq m
347 € 4-storey apartment building, not refurbished, better location
19.09.2011
736 sq m
19.09.2011
771 sq m
44369 Dortmund
19.09.2011
980 sq m
58455 Witten
19.09.2011
340 sq m
Page 11
SHORT REPORT
DTZ No.
Cluster
Sub-Portfolio
Date of Valuation
Dortmund VIII
44369
Dortmund
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 12
Dortmund VIII
Cluster 19
n/a
01.09.2011
Valuation
Appendix D
Valuation
Sensitivity Analysis of the Market Value
The following sensitivity analysis includes the Market Value of the Properties as at 1
September 2011 (please see column “0” and row “0”) and the sensitivity of the Market Value
of the Properties regarding changes of the discount and/or cap rate in increments of 50 basis
points, respectively.
Resale
Cap Rate
Unleveraged Discount Rate
-100 bp
-50 bp
0
+50 bp
100 bp
-100 bp
€78,580,00
€72,800,000
€67,700,000
€63,920,000
€60,450,000
-50 bp
€75,150,000
€69,540,000
€65,240,000
€61,160,000
€58,000,000
0
€71,690,000
€66,680,000
€62,380,000
€59,010,000
€55,560,000
+50 bp
€68,920,000
€63,820,000
€59,740,000
€56,470,000
€53,210,000
+100 bp
€66,060,000
€60,970,000
€57,190,000
€54,020,000
€51,160,000
Valuation
Appendix E
Valuation
Martin Greiner MRICS
Linkstraße 2, 10785 Berlin
Key Skills
Education
Martin has substantial experience in
Dipl.-Kfm. (EBS)
property
valuation
and
project
management for real estate transactions.
He leads the residential valuation team
in Berlin.
Martin
German equivalent of a Master of
Business
Administration
at
EBS
Business School, EBS Universität für
Wirtschaft und Recht, Oestrich-Winkel,
manages
various
types
of
Germany.
portfolio and single asset valuations
according to national and international
MSRE (GSU)
valuation standards.
Master of Science in Real Estate at
J. Mack Robinson College of Business,
His Background
Georgia State University, Atlanta, USA.
Martin joined DTZ in August 2010 after
Expert for international Real Estate
working for CB Richard Ellis and EBS
Valuation (EBS)
Real Estate Academy.
Post-graduate
study
course
in
international real estate valuation and
His Experience
More than five years of professional
experience in real estate valuation within
different sectors and purposes. He is
also experienced in developing financial
models as well as advanced statistical
analysis.
accounting
at
EBS
Real
Estate
Academy, Oestrich-Winkel, Germany.
Chartered Surveyor (MRICS)
Member of the Royal Institution of
Chartered Surveyors
Valuation
Stephan Griese MRICS
Linkstraße 2, 10785 Berlin
Key Skills
Stephan
Education
Griese
has
substantial
experience in property valuations and
analysis of residential and commercial
Diplom-Wirtschaftsingenieur (FH Zittau)
University of Applied Sciences Degree in
Engineering & Business
real estate portfolios as well as individual
properties according to international and
German valuation standards.
Diplom-Immobilienökonom (ADI Stuttgart)
Post-graduate study course in real estate
economics at ADI, Stuttgart
His Background
Chartered Surveyor (MRICS)
Stephan joined DTZ in May 2004 after
he finished his studies of real estate at
the University of Applied Sciences in
Zittau.
His Recent Experience
Almost
eight
years
of
professional
experience in real estate valuation within
all sectors for all purposes. Stephan has
been
undertaken
valuations
for
properties in Germany with focus on
residential and hotel properties.
Member of the Royal Institution of
Chartered Surveyors
Valuation
Appendix F
th
General Contractual Conditions of DTZ Zadelhoff Tie Leung GmbH (Date: 27 October 2004)
1.
(1)
Scope of application
These contractual conditions apply to contracts between DTZ
Zadelhoff Tie Leung GmbH (afterwards called DTZ or the Contractor) and its Clients for surveys, studies, consultancy and other orders, unless expressly agreed otherwise in writing or mandated by
law.
(2)
The Client's general terms and conditions are only binding on the
Contractor if this has been expressly agreed in writing.
(3)
The contractual relationship between the Client and the Contractor
provides no additional protective effect in favour of a third party. If
in an exceptional individual case third parties might derive rights
from the contractual relationship, then he rules laid down in No. 6
also apply to them.
(4)
Versions in another language are purely for information purposes;
only the German version is authoritative.
2.
(1)
4.
(1)
If a deadline is agreed for he completion of the order, this shall extend appropriately in the event of force majeure and for the period
of any temporary hindrance preventing work for which the Contractor is not responsible. The party affected by such hindrance must
immediately notify the other party of the existence of any hindrance
to work and the probable duration of any delay.
(2)
If the Client breaches his duty of cooperation in accordance with
No. 3 and the Contractor has notified of this, then agreed schedules and/or deadlines shall be regarded as extended by the period
that the Client needs to meet the duty of cooperation. The Contractor is released from his duty of performance for this ime. Any
additional expense arising to the Contractor due to the breach of
the duty of cooperation must be reimbursed by the Client. The
Contractor's right to terminate the contractual relationship without
no ice if the Client breaches the duty of cooperation is unaffected
by this.
Scope and fulfilment of the order
The Contractor is responsible for providing the consultancy activities described in the contract, and not a specific economic result.
The Contractor is only obliged to compile a written report on progress and the result, specifically for presentation to a third party, if
the contract expressly specifies this. If the Contractor has to present the results of his work in writing then only the written presentation is authoritative. Oral declarations and information from employees of the Contractor over and above the order are always
non-binding. The Contractor's work is completed when the necessary analyses, resulting conclusions and recommenda ions have
been completed and explained to the Client, or in the event of a
written presentation being agreed, when his is delivered to the Client.
(2)
The Contractor may make use of expert third parties to fulfil his
contractual obligations.
(3)
The Contractor shall only examine the data given to him by the Client, and in particular figures, for obvious errors. Otherwise the
Contractor may assume the given data to be correct and complete.
(4)
The Client cannot require the order to be carried out by a specific
advisor.
(5)
If the conditions which form the basis of the conclusions and recommendations change after the end of the order, the Contractor is
not obliged to point out these changes or resulting consequences
to the Client.
(6)
Changes and supplements to the order must be made in writing.
(7)
Subsidiary oral agreements are not valid. The requirement of written form also applies for material declara ions (e.g. notice of termination, release agreement).
(8)
The order does not cover any legal or tax advice, rather it takes the
existing legal and tax conditions as given. This does not exclude
non-binding advice being given in individual cases, however there
is no liability for this. If necessary we can provide contact to professionally experienced legal advisors.
Time for performance
5.
Guarantee
If guarantee provisions are applicable on account of the type of
services to be provided in accordance with he contract, he following conditions apply:
(1)
The Client has a claim for any defects caused by the Contractor to
be remedied, as long as this remedying is possible at reasonable
expense. If the defect cannot be remedied or if the remedies fail,
the Client retains the right to withdraw from the contract or to reduce payment appropriately. If the Client is a businessman he may
only withdraw if the work provided is without interest to him due to
failure of the remedy. No. 6 applies to claims for damages exceeding this.
(2)
Obvious defects must be notified in writing by the Client within two
weeks of delivery of service. If the Client is a businessman, public
law legal entity or a public law special government estate obvious
defects must immediately be notified in writing, and non-obvious
defects immediately when they become apparent. Otherwise, defects must be notified not later than within twelve months of delivery of service. If the Client does not promptly no ify of the defect,
any claim for his remedy is excluded if the client is a businessman,
a public law legal entity or a public law special government estate.
(3)
Apparent errors, e.g. typographic mistakes, miscalculations and
formal errors, in a report or survey, etc., completed by the Contractor, may be corrected by the Contractor at any time and with regard
to third parties, too. Errors which might cause recommendations
and conclusions to become questionable jus ify he Contractor to
withdraw them, including from third parties. The Client is first given
the opportunity to comment.
6.
Liability
The following applies to the reimbursement of damages:
3.
(1)
The Client's duty of declaration and cooperation
The Client is obliged, at his expense, to provide the Contractor with
all informa ion and physical resources necessary for the proper fulfilment of the order, also without special request. During the contractual relationship the Client must inform the Contractor without
delay of all occurrences which may influence the provision of the
contractually agreed services. The Contractor is not obliged to
check the correctness of such information.
(2)
On request from the Contractor, the Client must confirm the correctness and completeness of he documents he presents and of
his information and oral declarations in a written declaration formulated by the Contractor.
(3)
The Client must ensure that there is a suitable back-up, security
and virus checking process set up on each computer workplace
provided, and must also apply these means whilst he contract is
being fulfilled in accordance with general data processing practice.
(1)
In case of an intentional or grossly negligent breach of a duty and
in case we culpably cause harm to the life, body or health we are
liable without limitation for the damages thereby caused unless the
liability is limited by statutory law.
(2)
In case of a grossly negligent breach of contract by one of our senior executives our liability for damages to property and financial
loss is limited to the damage typical and predictable under such
contract (vertragstypisch vorhersehbarer Schaden).
(3)
In case of minor negligence we are liable for damages to property
and financial loss only to the extend such damages are caused by
the breach of an essential contractual duty. However our liability is
limited to the damage typical and predictable under such contract
(4)
Any liability for damages exceeding the liability described above is
hereby waived regardless the basis and nature of such claim. This
especially applies to claims based on tort (sec. 823 and 831 German Civil Code) but not to claims based on the German Act on
Product Liability (Produkthaftungsgesetz).
(5)
We are not liable if the Client takes entrepreneurial decisions on
the basis of our work, which then and on their own give rise to a
loss (e.g. in connection with the evaluation of a market situation or
a recommendation for use with regard to business policies).
General Contractual Conditions for DTZ Zadelhoff Tie Leung GmbH, Date: 27th October 2004
Page 1 of 2
(4)
If invoiced sums are not paid within 30 days of receipt of invoice,
the Contractor is furthermore entitled to charge interest at the rate
of 8 % points above the base interest rate. This does not exclude
enforcement of further claims for delay.
(5)
Offsetting against claims of the Contractor for the fee and reimbursement of expenses is only permitted with claims which are not
contested or are legally set.
(6)
Several Clients are liable jointly and severally.
Intellectual property protection
11.
Termination
(1)
The Client is responsible for the surveys, reports, organisation
plans, drafts, drawings, lists and calculations completed by the
Contractor within the framework of the order only being used for
the purposes contractually agreed and not being published without
the express consent of the Contractor in each case. Passing on
the consultancy works to a third party, including to companies allied
with the Client, requires express written consent from the Contractor.
(1)
Consultancy agreements can be terminated with a period of notice
of fourteen days, unless the consultancy agreement provides for
the fulfilment of consultancy or procedural support projects that are
limited by time or circumstance, and it is for a flat fee (where relevant plus reimbursement of additional expenses). The right to terminate without no ice is unaffected. Notice of termination must be
given in writing to be effective.
(2)
The Contractor is not liable to either a third party or the Client in
case that the Client – whether or not entitled – makes the results of
the work available to third parties; the Client releases DTZ from all
third party claims in this event.
12.
Applicable law, place of jurisdiction, other
(1)
German law applies exclusively to the order, its fulfilment and
claims arising from this.
(2)
If the Client is a businessman as defined by the German Commercial Code, or a public law legal entity or a public law special government estate, then he place of jurisdiction for all disputes is the
legal domicile of DTZ, or at DTZ's discretion also the legal domicile
of the Client.
(3)
Rights from the contractual relationship with the Contractor may
only be transferred by the Client with prior consent from the Contractor.
(6)
7.
(3)
We are not liable
a) for non-observance or incorrect observance of foreign law.
b) for the correctness of the manufacturer's information on the
reliability or performance of a data processing system recommended by DTZ.
c) for warranty defects with which a data processing system
recommended by DTZ is affected.
d) for warranty defects which arise from software which we nonbindingly recommend.
If a copyright or other protected right arises through the work being
carried out by DTZ, hen the Client is enti led to a non-exclusive,
non-transferrable single usage right within the framework of the intended purpose of the contract concluded with the Client.
(4)
Prior consent from the Contractor is required for use of the work
results for advertising purposes.
(5)
The (usage) rights granted to the Client do not prevent either DTZ
Zadelhoff Tie Leung GmbH or another direct or indirect entity belonging to the world-wide „DTZ“ group from making future use of
techniques, ideas, concepts or expertise which are gained whilst
fulfilling the contract and are suitable for general use.
8.
Return of documents
(1)
After the end of the consultancy agreement, the Contractor must on
request from the Client return all documents that the Client or a
third party has given him during the fulfilment of the order. This
does not apply to correspondence between the parties neither to
documents for which the Client already holds an original or copy, or
for duplicates of surveys, reports, organisa ion plans, drafts, drawings, lists and calculations completed within the framework of the
order. The Contractor may make copies of the documents which
were given to him for the fulfilment of the order and retain these.
(2)
The Contractor may refuse to release documents received from the
Client for the fulfilment of the order until his claims are met. This
does not apply if the Client is only in arrears with a small portion of
his payment.
9.
Confidentiality, Data protection
(1)
The Contractor undertakes to maintain discretion about all data and
information concerning the Client and not generally known, which
become known to him whilst fulfilling the order.
(2)
DTZ is authorised to process personal data entrusted to it wi hin
the framework of the intended purpose of the order or to have this
processed by a third party. DTZ shall take the necessary care that
its staff or third parties commissioned by it observe the legisla ion
on data protection.
10.
Fee, offset
(1)
Besides his fee, the Contractor has a claim to reimbursement of
expenses and payment of the hen legal amount of sales tax. The
Contractor can demand reasonable advances on his fee and his reimbursement of expenses.
(2)
The fee is due on presentation of invoice and is payable immediately without deductions.
(3)
If payment obligations are not met promptly the Contractor is entitled to make further provision of work dependent on the satisfaction
of his claims.
General Contractual Conditions for DTZ Zadelhoff Tie Leung GmbH, Date: 27th October 2004
Page 2 of 2

short report

Transcription

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