PRIVATE & CONFIDENTIAL
www.dtz.com
Report and Valuation
Prepared on behalf of
Deutsche Bank AG
London Branch as Facility Agent
Valuation of the Quokka Portfolio
Valuation date:
Report date:
DTZ Zadelhoff Tie Leung GmbH
Buerohaus an der Alten Oper
Neue Mainzer Strasse 69-75
60311 Frankfurt
Germany
31 May 2013
29 August 2013
Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
Contents
1.
Introduction
1.1.
1.2.
1.3.
1.4.
1.5.
2.
3.
4.
Terms of instruction
Valuations
Reliance
Information provided
Disclosure and Confidentiality
5
5
7
9
11
12
Quokka Portfolio
13
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
2.7.
2.8.
2.9.
2.10.
2.11.
2.12.
2.13.
13
14
15
17
17
18
18
18
19
19
19
20
21
Location and Situation
Lettable Areas
Vacancy Rates
Construction Dates
Refurbishment Status
Lettability and Saleability
Deleterious Materials
Flood enquiries
Environmental Matters
Sites
Planning, Public Building Charges, Building Permit
Tenure
Leasing and Tenant Structure
German Residential Market Overview Q2 2013
26
3.1.
3.2.
3.3.
26
31
36
Residential Supply
Residential Demand
Market Prices
Berlin Residential Market Overview Q2 2013
39
4.1.
4.2.
4.3.
39
41
43
Introduction
Letting Market
Investment Market
5.
SWOT Analysis
47
6.
Valuation
48
6.1.
6.2.
48
48
Market Rent
Overall Approach and Analysis
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London Branch as Facility Agent
7.
8.
Assumptions and Definitions
52
7.1.
7.2.
52
57
Valuation conditions and Assumptions
Definitions of bases of valuations
Appendices
A.
B.
C.
D.
Instruction Letter
Valuation Overview
Template Reports
General Contractual Conditions of DTZ Zadelhoff Tie Leung GmbH
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Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
Executive summary
Portfolio
Quokka Portfolio
Location
The subject portfolio comprises 121 property clusters spread
throughout Germany with emphasis on North Rhine-Westphalia,
Berlin and Lower Saxony.
Property Type
The portfolio consists of predominantly residential properties
comprising a 9% share of commercial area.
Age / Completion Date
The years of construction range from around 1900 to 2001.
Condition
The property clusters are predominantly in fair condition.
Areas
The portfolio comprises 673,171 sq m of lettable area, thereof
613,953 sq m residential area (91%) and 59,218 sq m
commercial area (9%).
Tenure
We understand that 103 property clusters are freehold while 18
property clusters are leasehold.
Tenancies
Various, predominantly residential leases, concluded for an
indefinite period. The vacancy rate is 8.7%.
Gross Rental Income (rounded)
€43,768,000
Market Rent (rounded)
€54,222,000
Potential Rent (rounded)
€47,508,000
Market Value
€603,419,000
€896 per sq m
Multipliers
Multiple on passing Rent
13.8 times
Multiple on Market Rent
11.1 times
Net initial yield
4.75%
Yields
This summary should be read in conjunction with the full Report and Appendices.
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Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
James M Molloy, MAI, MRICS
Global Head of CRM -Real Estate Valuation
Credit Risk Management / Real Estate Valuation
60 Wall Street
New York, NY 10005
USA
Name:
Email:
Direct tel:
Direct fax:
Martin Greiner
martin.greiner@dtz.com
+49 (0) 30 201705 404
+49 (0) 30 201705 499
29 August 2013
Dear Mr Molloy
Client:
Portfolio:
1.
Deutsche Bank AG
Valuation of the Quokka Portfolio
Introduction
1.1. Terms of instruction
Purpose of the valuation
We understand that our report and valuation (the “Valuation Report”) is required in connection
with loan security purposes.
Our appointment and valuation date
In accordance with your letter of instruction, dated 15 May 2013 (in the Appendix), we have
valued the freehold/leasehold interest in the properties of the above portfolio, as at
31 May 2013.
A total of 19 residential units are currently either under contract or were sold after the valuation
date of 31 May 2013. We have been instructed to exclude these units from our valuation, so that
the Market Value and all related figures have been adjusted accordingly.
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London Branch as Facility Agent
Compliance with RICS Valuation Standards
We confirm that the valuations have been prepared in accordance with the appropriate sections
of the Valuation Standards (“VS”) contained within the RICS Valuation Standards - Global, 2012
Edition (the “Red Book”) and in accordance with the local market practice.
Status of valuer and conflicts of interest
We confirm that we have sufficient current knowledge of the relevant markets, and the skills and
understanding to undertake the valuations competently and independently. We also confirm that
where more than one valuer has contributed to the valuations the requirements of VS 1.6.4 of the
Red Book have been satisfied. Finally, we confirm that we have undertaken the valuations acting
as an External Valuer, qualified for the purpose of the valuation.
We confirm that DTZ Zadelhoff Tie Leung GmbH has had no previous instruction related to this
portfolio. We do not expect that any conflict arises in preparing the advice requested.
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 a
maximum of €30,000,000.
Inspection
All property clusters were inspected externally by Martin Greiner MRICS, Ruth Schmeing MRICS,
Carolin Würtz, Torben Möller, Simon Hartl, Till Hoffmann and Benedikt Gutmann of DTZ between
28 May and 7 June 2013. The sample of internal inspections has been determined by Deutsche
Bank AG after consultation with BGP Asset Management. The following property clusters, which
comprise about 80% of the total lettable area, were inspected internally and externally on a
random basis:
ID
001
005
008
009
010
011
Town
Kiel
Kiel
Berlin
Berlin
Berlin
Berlin
012
013
014
015
016
Garching
Garching
Kirchseeon
Münster
Münster
021
Glienicke
022
Glienicke
023
Berlin
Address
Dietrichsdorfer Höhe 1
Hertzstrasse 22
Annenhöfe (Tiefgarage)
Annenstrasse 48-51
Heinrich-Heine-Strasse 15
Heinrich-Heine-Strasse 17, 19, 27, 29; Dresdner Strasse 39-43,
44, 41-46
Römerhofweg 19-49
Römerhofweg 51-51e
Kirchseeoner Weg 34-78
Sprickmannstrasse 39-41
Brüningheide 39, 65-73, 111-145, Killingstrasse 15-21, 23-31,
Sprickmannplatz 1-8, Sprickmannstrasse 12+14, 31-37
Schönfließer Strasse 80-84; Oranienburger Chaussee 13-21
(uneven)
Schönfließer Strasse 70-79, 85-90; Lindenstrasse 11, 13, 13a,
19, 21
Grazer Platz 5-16; Grazer Damm 122-170 (even),
Pöppelmannstrasse 1-11 (uneven); Kauschstrasse 1-3
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Date of inspection
3 June 2013
3 June 2013
28 May 2013
28 May 2013
28 May 2013
28 May 2013
4 June 2013
4 June 2013
4 June 2013
6 June 2013
6 June 2013
29 May 2013
29 May 2013
28 May 2013
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London Branch as Facility Agent
024
028
035
037
038
039
040
043
049
052
053
Berlin
Dusseldorf
Hanover
Cologne
Cologne
Cologne
Cologne
Nuremberg
Celle
Emden
Emden
056
060
062
067
070
072
073
074
075
077
078
079
088
091
094
100
115
116
121
Emden
Hanover
Karlsruhe
Ronnenberg
Verden
Verden
Verden
Dietzenbach
Karlsruhe
Cologne
Ulm
Berlin
Berlin
Berlin
Berlin
Berlin
Dortmund
Düren
Krefeld
(uneven)
Kölpiner Strasse 2-24 (even); Golliner Strasse 9-43 (uneven)
Stettiner Strasse 124
Warburghof 12
Liverpooler Platz 1-3
Ludwig-Gies-Strasse 18
Osloer Strasse 2
Osloer Strasse 6
Imbuschstrasse 4
Herzog-Ernst-Ring 29-35
Geibelstrasse 56-68, Gustav-Freytag-Strasse 1-11
Eduard-Mörike Strasse 2-26, 9-11, Friedrich-Rückert-Strasse 39, Hermann-Allmers-Strasse 15-25, 28-48, Hermann-LönsStrasse 2, 4, Theodor-Fontane-Strasse 10-12, Wilhelm-HauffStrasse 2
Wilhelm-Hauff-Strasse 1-11, 4-16
Westermannweg 4
Welfenstrasse 30
Mühleneck 3, 5, 9, 11, 15, 19, 21, 23, 39, 41
Hoppenkamp 2, 10-14, Schwarzer Berg 1-9, 10-12
Moorstrasse 22-46
Hoppenkamp 4, 50-54, Salzstrasse 50-76
Talstrasse 12-20
Elsa-Brändström-Strasse 9-11
Ostlandstrasse 34
Reutlinger Strasse 61
Baumschulenstrasse90, 91
Kantstrasse 55
Maaßenstrasse 14
Prenzlauer Allee 178
Xantener Strasse 8
Reinoldistrasse 17-19
Miesheimer Weg 1
Nassauerring 11
29 May 2013
6 June 2013
5 June 2013
6 June 2013
6 June 2013
6 June 2013
6 June 2013
4 June 2013
5 June 2013
4 June 2013
4 June 2013
4 June 2013
5 June 2013
3 June 2013
5 June 2013
4 June 2013
4 June 2013
4 June 2013
3 June 2013
3 June 2013
6 June 2013
3 June 2013
29 May 2013
28 May 2013
28 May 2013
29 May 2013
28 May 2013
6 June 2013
6 June 2013
6 June 2013
We assume that our internal inspection of the above properties provided us with a representative
view of the portfolio. We have assumed that details of all matters likely to affect value have been
made available to us. As instructed, the remaining property clusters have been inspected
externally on a drive-by basis.
1.2. Valuations
The portfolio is described in Section 2 of this Valuation Report and our market analysis is
contained in Section 3 of this Valuation Report. The valuations referred to below must be read in
conjunction with the other sections of this Valuation Report.
The Appendices to this Valuation Report comprise details of the properties and our calculation
details. The Appendices also contain various plans, location maps and photographs where
available. Any plans, location maps and photographs contained within the Report and Appendices
are for identification purposes only.
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London Branch as Facility Agent
Bases of valuation
Our opinion of the Market Value of the properties has been primarily derived using comparable
recent market transactions on arm's length terms.
In accordance with your instructions, we have undertaken our valuations on the following bases:
•
Market Value
•
Market Rent
We have set out the definition of the above bases of valuation in Section 7 of this Valuation
Report.
Valuation methods
We have valued the Property on the basis of a discounted cash flow (DCF) model.
Cumulative Market Rent
We are of the opinion that the Cumulative Market Rent (rounded) of the properties, as at
31 May 2013, subject to the Assumptions and comments in this Report and the Appendices is:
€54,222,000
(in words: fifty-four million, two hundred and twenty-two thousand Euro) per annum exclusive of
VAT and service charge
Cumulative Market Value
We are of the opinion that the Cumulative Market Value (rounded) of the individual freehold/
leasehold interests in the properties, subject to the existing tenancies, as at 31 May 2013 and
subject to the Assumptions and comments in this Report and the Appendices is:
€603,419,000
(in words: six hundred and three million, four hundred and nineteen thousand Euro) exclusive of
VAT and net of purchasers costs
Saleability of the Portfolio
Due to the large volume and due to the circumstance that the individual property clusters are
spread over the entire of Germany, it is unlikely that the subject portfolio would be marketed as a
whole. There may be only a few investors who are able and willing to invest in widespread
residential portfolios of comparable volume. However, the take-over of the TLG Wohnen by TAG
and of the GBW by a consortium of investors headed by Patrizia demonstrates that there is some
liquidity even for large residential portfolios, also in bidding processes.
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London Branch as Facility Agent
Financing is tight and expensive for the more opportunistic properties. From a financing point of
view, it would be easier to sell asset by asset or create sub-portfolios according to the respective
locations.
Due to the lack of comparable evidence in terms of volume and portfolio structure, any estimate
of the actual portfolio discount a potential purchaser would ask for in the current market would
be of speculative character only.
1.3. Reliance
To:
Monnet Finance Limited, in its capacity as Issuer for the Proposed Refinancing;
Deutsche Bank AG, London Branch (“Deutsche Bank”) acting through its office at Winchester
House, 1 Great Winchester Street, London EC2N 2DB as Arranger and a Lead Manager;
JP Morgan Securities Plc (“JP Morgan”), acting through its office at 25 Bank Street, London, E14
5JP as a Lead Manager (together with Deutsche Bank, the Lead Managers);
each Finance Party, as defined in a facility agreement (the “Facility Agreement”) dated on or
about the date of this letter (as amended from time to time) between, amongst others, BGP RESI
2 S.À R.L. & CO. KG and others (the Obligors) and Monnet Finance Limited (the Original Lender);
and
any trustee with respect to any securities issued in connection with a securitisation of the loan
under the Facility Agreement,
(together the "Addressees").
1. We confirm that the valuation report, dated 29 August 2013, prepared in connection with the
refinancing of the properties (the “Report”) may be relied upon by the Addressees and is
intended for their benefit.
2. The Report and this letter are confidential to the Addressees. However, copies of the Report
and this letter may be disclosed for information only without liability for us to:
(a) the respective agents and advisers of the Addressees in connection with the transactions
described in paragraph 1 above;
(b) the respective affiliates, employees, officers, directors and auditors of the Addressees;
(c) any prospective purchaser, transferee or assignee of, or participant in, any loan made
under the Facility Agreement and their respective advisers and any other prospective
Addressee;
(d) any servicer of any loan under the Facility Agreement;
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London Branch as Facility Agent
(e) any actual or prospective investor in any securities issued in connection with a
securitisation of any loan under the Facility Agreement, and its advisers;
(f)
any rating agency actually or prospectively rating any such securities, and its advisers;
(g) any trustee (Treuhänder) of a Finance Party under and as defined in the Facility
Agreement in connection with the use of all or any part of the loan made under the
Facility Agreement (and security therefore) as a cover asset in the Pfandbrief cover
register of any such Finance Party; and
(h) any person to whom disclosure is required by law, court order, regulation, public
authority, stock exchange or in connection with legal proceedings in connection with the
Report.
3. In addition, the Report or a reference to and summary of it (and the methodologies and
concepts on which it is based) may be included in any information memorandum, offering
circular, registration statement or similar document as may be required to comply with any
applicable laws, regulations or official guidelines relating to the issuance of or investment in
any securitisation of the loan under the Facility Agreement.
In addition, we agree that a copy of this Report may be made available
(a) to the extent required by any applicable law or regulation,
(b) to any regulatory authority having jurisdiction in respect of the relevant Addressee,
(c) in connection with any actual or potential dispute or claim to which the relevant
addressee is a party relating to the Transaction or
(d) to any respective legal adviser of any Addressee, in each case for the purposes of
information only and on the strict understanding that we assume no duty of care or other
responsibility to any such recipient or any liability whatsoever as a result or otherwise.
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London Branch as Facility Agent
1.4. Information provided
For the purpose of the valuation we have been provided with access to a virtual data room by
BGP Asset Management GmbH. In this respect, the valuation has been based on the following
information received until 21 June 2013:
• Rent rolls, dated March and April 2013
• A data table comprising information on scheduled capital expenditure, dated 2013
• Sample of commercial lease contracts, various dates
• Information on rent restrictions, various dates
• Extracts from the land register and cadastral maps, various dates
• Information relating to heritable building rights, various dates
• Information on contaminations, various dates
• Information on building encumbrances, various dates
• Cluster and inspection reports including general data (year of construction, ground rent, rent
restrictions etc.)
• Budget and rent assumptions, dated 2013
• Environmental site assessments, various dates between 2005 and 2008
We have further been provided with the following documents by Deutsche Bank AG:
• Technical due diligence cost estimations tables prepared by STIWA Immobilienmanagement &
Consulting Chartered Surveyors GmbH, various drafts dated June 2013
• Information on recent letting capex prepared by BGP Asset Management GmbH, dated 2013
• Limited Legal Review Report prepared by Clifford Chance, second draft dated July 2013, and
markups of changes compared to a fifth draft dated August 2013.
We have assumed that the information provided to us in respect of the portfolio is both sufficient
and correct. It follows that we have assumed that details of all matters likely to affect value have
been made available to us and that the information is up to date.
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London Branch as Facility Agent
2.
Quokka Portfolio
2.1. Location and Situation
The Portfolio comprises a total of 121 property clusters containing 9,553 residential units, 402
commercial units and 4,173 parking spaces spread over 45 German cities/towns which are shown
in the map below.
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Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
2.2. Lettable Areas
The total lettable area of the Portfolio is 673,171 sq m, of which 613,953 sq m (91%) are used for
residential purposes and 59,218 sq m (9%) for commercial purposes. The average unit size within
the Portfolio is approximately 64 sq m, which roughly corresponds to a one-bedroom apartment
with kitchen, bathroom and living room. The unit sizes have been roughly checked on a random
basis. We have neither carried out a measured survey nor have calculated floor areas from plans.
The split of the top ten largest locations by lettable area is as follows:
Total area in sq m per location
Berlin
160.428
Kiel
74.692
Cologne
66.026
Münster
52.029
Emden
32.350
Verden
25.286
Glienicke
25.214
Garching
24.779
Nuremberg
24.190
Hanover
18.820
Other
169.357
-
50.000
100.000
150.000
200.000
The portfolio is divided into five regions, which are located in the North Rhine-Westphalia
(190,910 sq m), Berlin (160,428 sq m), Lower Saxony (114,473 sq m), Schleswig-Holstein (Kiel)
(74,692 sq m) and Bavaria (65,880 sq m).
The North Rhine-Westphalia region contains of 29 property clusters predominantly located in
Cologne, Münster, Gronau and Düren.
The Berlin region contains 44 property clusters predominantly located in the sub-districts
Kreuzberg, Friedenau and Marzahn.
The Lower Saxony region contains 27 property clusters predominantly located in Emden, Verden,
Hanover, Celle and Ronnenberg.
The Schleswig-Holstein region contains seven property clusters which are all located in the city of
Kiel.
The Bavaria region contains five property clusters located in Garching, Nuremberg, Kirchseeon
and Augsburg.
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London Branch as Facility Agent
2.3. Vacancy Rates
The vacant area of the Portfolio is 58,319 sq m, of which 44,910 sq m (77%) are residential areas
and 13,409 sq m (23%) are commercial areas. The overall vacancy rate is 8.7%. The residential
vacancy rate is 7.3%, whereas the commercial vacancy rate is significantly higher at 22.6%. The
vacant area split of the top ten largest locations by lettable area is as follows:
Vacant areas/Vacancy rate
Berlin
4%
Kiel
4%
Cologne
17%
8%
Münster
14%
Emden
18%
Verden
7%
Glienicke
Garching
0%
Nuremberg
0%
Hanover
5%
Other
12%
-
5.000
10.000
15.000
20.000
25.000
The highest vacancy rates are stated in the locations Uslar (41.7%), Chemnitz (41.3%) and Legden
(36.6%), whereas, at the other hand, the properties located in Garching, Nuremberg, Falkensee,
Braunschweig and Helmstedt are fully let.
For a limited number of properties we have assumed structural vacancy, meaning that we would
not expect some of the areas that are vacant at the date of valuation to be let in the long term.
For five properties we have assessed structural vacancy in excess of 10%:
x
x
x
069 Uslar: The property has a 42% residential vacancy rate at the date of valuation
despite very low passing rents. The buildings as well as the surroundings are not
attractive, and the demographic prospects are limited.
077 Köln: The property contains more than 5,000 sq m commercial area, of which 82% are
vacant. Due to an adjacent shopping centre with more favourable layout we consider
most of the subject commercial area as not competitive in its current concept.
108 Berlin: The property contains only commercial areas, of which 86% are vacant. Due to
the outdated layout we assume that even at a lower than the current rent it will not be
possible to fully let the property.
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x
x
114 Chemnitz: The property contains only commercial areas, which are 41% vacant.
Because of high vacancy of office space in both the vicinity and the entire city, we assume
that even at a lower than the current rent it will not be possible to fully let the property.
121 Krefeld: The property has a 42% residential vacancy rate at the date of valuation.
Because of the inefficient layout of the apartments we assume it will not be possible to
fully let the property.
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2.4. Construction Dates
Approximately 55% of the buildings in relation to the total lettable area within the Portfolio were
constructed between 1961 and 1980. Further 19% were built between 1921 and 1945 and 12% of
the buildings were constructed between 1981 and 2000.
Lettable area by year of construction
2%
12%
7%
before 1920
19%
1921-1945
1945-1960
5%
1961-1980
1981-2000
after 2000
55%
2.5. Refurbishment Status
Of the 121 inspected property clusters, 44 property clusters representing 80% of the total lettable
area have also been inspected internally on a random basis, accompanied by BGP asset managers.
In some cases a limited internal inspection was possible without accompaniment. On the
valuation date the majority of the properties were partly refurbished. The refurbishment status as
observed during our inspections is as follows:
Refurbishment status (DTZ)
External
Internal
Good
24
13
Fair
63
34
Fairly poor
26
17
Poor
8
3
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2.6. Lettability and Saleability
The lettability and saleability of the portfolio properties has been assessed as follows:
Lettability
Saleability
very good
6
4
good
62
47
fair
48
53
Poor
5
17
2.7. Deleterious Materials
The age and style of construction of the subject properties are such that materials like high
alumina cement concrete, wood wool shuttering, calcium chloride or asbestos may have been
used in its original construction or subsequent alteration. In this respect, deleterious building
materials were widely used in system-built flats during the 1960s to the late 1970s.
We have been provided with a number of environmental due diligence reports prepared by
ARCADIS between 2005 and 2008. Although ARCADIS does not state the requirement for
immediate action to prevent risks to people or the environment, in some cases there are
substantial latent costs in case of structural alteration or modernization measures resulting from
materials containing contaminants.
After consultation with the client and in accordance with the Technical Due Diligence cost
estimations tables prepared by STIWA Immobilienmanagement & Consulting Chartered Surveyors
GmbH we have not reflected costs in this respect. Please note Section 7 of this Valuation Report
and the individual template reports attached in the Appendices.
2.8. Flood enquiries
We have not been instructed to make any enquiries whether or not the subject properties are
located within or close to a flood/fire hazard area. We have made an Assumption that building
insurances are in place regarding these risks and available to be renewed by the current or any
subsequent owner of the properties, without payment of an excessive premium.
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London Branch as Facility Agent
2.9. Environmental Matters
We have relied on the information provided to us in the virtual data room, particularly on the
extracts from the register of contaminated sites and on the above-mentioned environmental due
diligence reports prepared by ARCADIS commented by STIWA. We have not been instructed to
make formal investigations in relation to the presence or potential presence of contamination in
land or buildings, however, we have stated in our Template Reports whether there is indication of
contamination. We have not carried out any investigation into past uses, either of the properties
or any adjacent land, to establish whether there is any potential for contamination from such uses
or sites and have, therefore, made an Assumption that none exists. Commensurate with our
Assumptions set out above and if not stated otherwise in the Template Reports, we have not
made any allowance in the valuation for any effect in respect of actual or potential contamination
of land or buildings. If the Assumption were to prove invalid then the value would fall by an
unspecified amount.
In practice, purchasers in the property market do not make such an assumption about
contamination and a purchaser of the properties would be likely to require appropriate
investigations to be made so as to assess any risk before completing a transaction.
2.10. Sites
According to the land register extracts provided, the properties are occupying several mostly
irregular shaped sites with an approximate total site area of 920,000 sq m. In this respect, we
would like to emphasise that we have not been provided with all land register extracts and the
actual site area may exceed the figure stated before. Please note that this figure does not reflect
pro rata deductions for part ownership properties.
Individual cadastral plans showing our understanding of the boundaries of the properties edged in
red are attached in Appendix C (Template Reports). These site plans are for identification
purposes only. We advise that the accuracy of the plans should be verified by your lawyers.
2.11. Planning, Public Building Charges, Building Permit
We have made verbal enquiries at the relevant planning authorities for all properties of the
Portfolio and have checked these against the limited legal review report prepared by Clifford
Chance. We have not made formal enquiries as to the possibility of highway proposals,
comprehensive development schemes and other ancillary planning matters that could affect the
value of the properties. We have made the Assumption that there are no such proposals that will
have an adverse effect on value.
Concerning public building charges, we have relied on the information in the individual extracts
from the building charges register as provided.
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Moreover, we have made verbal enquiries at the relevant authorities regarding the listing status
for the properties 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.
2.12. Tenure
We have been provided with copies of the land register extracts for the properties. According to
the information provided, the Portfolio consists of freehold and leasehold properties. The
following properties are subject to leasehold agreements:
• 023
Berlin, Grazer Platz 5-16, Grazer Damm 122-170, Pöppelmannstrasse 1-11 etc.
• 024
Berlin, Kölpiner Strasse 2-24, Golliner Strasse 9-43
• 025
Ahaus, Am Schäfingskamp 14
• 028
Düsseldorf, Stettiner Strasse 124
• 034
Gronau, Zobelstrasse 3
• 035
Hannover, Warburghof 12
• 038
Cologne, Ludwig-Gies-Strasse 18
• 039
Cologne, Osloer Strasse 2
• 040
Cologne, Osloer Strasse 6
• 043
Nuremberg, Imbuschstrasse 4
• 044
Schöppingen, Enscheder Strasse 10
• 045
Stadtlohn, Dufkampstrasse 77
• 046
Vreden, Billunger Strasse 15
• 070
Verden, Hoppenkamp 2, 10-14, Schwarzer Berg 1-9, 10-12
• 072
Verden, Moorstrasse 22-46
• 073
Verden, Hoppenkamp 4, 50-54, Salzstrasse 50-76
• 110
Berlin, Reichenberger Strasse 119
• 116
Düren, Miesheimer Weg 1
The expiry dates vary between 2050 and 2203 and the total current leasehold expenses are
€1,324,230 p.a.
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Furthermore, the following properties are held as part-ownership:
• 031
Gronau, Vereinsstrasse 268
• 047
Braunschweig, Gueldenstrasse 37
• 048
Braunschweig, Hagenring 38
• 049
Celle, Herzog-Ernst-Ring 29-35
• 054
Emden, Schwabenstrasse 5, 9, 11, 15, 17, 21
• 055
Emden, Wielandstrasse 8-12
• 057
Gehrden, Steintorfeld 3, 7, 8
• 061
Helmstedt, Hallesche Strasse 30
• 065
Peine, Badestrasse 1
• 066
Peine, Schreiberhauer Strasse 1, 3
• 068
Seelze, Hannoversche Strasse 53, 53a, 53b, 55
• 071
Verden, Moorstrasse 13, 17
For further details we refer to the Template Reports attached.
As most of the provided land register extracts are dated before 2010, we would like to point out
that third parties (Babcock & Brown) are stated as the respective owner. For the purpose of the
valuation we therefore assume that the properties have been legally transferred to the
applicant.
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.
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.
2.13. Leasing and Tenant Structure
We have only been provided with two Residential Model Leases and no copies of actual
residential leases. In those Residential Model Leases we have found a number of clauses that we
would consider unusually landlord-friendly. However, according to the limited legal review report
prepared by Clifford Chance, the Residential Model Leases overall comply with the standard
landlords of residential properties use to let residential properties to tenants. We have therefore
made an Assumption that the leases are in good modern form, free from any onerous or unusual
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conditions or covenants which may affect value and that both landlord and tenant have abided
with the terms of the lease, and the current layout of the accommodation is in accordance with
that permitted in the lease. Furthermore, we have assumed that the operating costs are
recoverable from the tenant according to BetrKV (“Betriebskostenverordnung”).
For the valuation we have relied on tenant data included in the rent roll provided to us.
Gross Rental Income
The total of current rents for residential and commercial areas as well as the parking areas and
the additional income receivable from the Portfolio is €43,767,986 per annum. The gross figures
reported here are net of service charge income, but gross of any other deductions. We would
normally expect service charges to represent approximately 25 to 35% of the gross passing rents.
According to the rent roll provided the share of service charges is approximately 32% of the gross
passing rent. The top ten locations of the Portfolio by total income are shown in the table below.
City/town
Berlin
Total current income in €
Total current income in %
12,994,732
29.7
Kiel
4,499,472
10.3
Cologne
4,353,029
9.9
Münster
2,573,736
5.9
Glienicke
2,346,697
5.4
Nuremberg
1,700,924
3.9
Garching
1,685,453
3.8
Emden
1,398,265
3.2
Hanover
1,212,932
2.8
Verden
1,147,393
2.6
Other locations
9,855,353
22.5
The Portfolio currently reflects an average residential rent of €5.27 per sq m per month and an
average commercial rent of €11.20 per sq m per month.
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The following chart shows the current Rent in comparison with the Market Rent on Portfolio level.
The estimation of Market Rent does not only include potential changes of rent on areas let on the
date of valuation, but also potential future vacancy reductions.
Current rent vs. Market Rent
18.000.000
16.000.000
14.000.000
12.000.000
10.000.000
8.000.000
6.000.000
4.000.000
2.000.000
-
Current rent € p.a.
Market Rent € p.a.
Rent Restrictions
According to the information provided, the following properties are subject to short-term rent
restrictions:
• 012
Garching, Römerhofweg 19-49
• 016
Münster, Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz
1-8, Sprickmannstraße 12+14, 31-37
• 037
Köln, Liverpooler Platz 1-3, 5, 7-9
• 038
Köln, Ludwig-Gies-Straße 18, 20, Materéweg 51, Wilhelm-Ewald-Weg 4, 6, 8
• 039
Köln, Osloer Straße 2-34, ohne 6
• 040
Köln, Osloer Straße 6
As these restrictions already expire in 2015 and 2016, respectively, we have not reflected an
impact on the cash flow.
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According to the information provided, the following properties are subject to long-term rent
restrictions:
• 091
Berlin, Maaßenstr. 14; Winterfeldtstr. 42
• 095
Berlin, Rheinstraße 14
• 109
Berlin, Möckernstraße 116
As these restrictions expire after the 10-year cash flow forecast in 2040 and 2028, respectively,
we have compared our assessed Market Rent to the information provided on cost rents. Only for
Möckernstraße 116 did the Market Rent exceed the cost rent, so that we have limited rent
increases accordingly.
Commercial Areas
According to the rent roll provided, of the 59,218 sq m commercial areas, 41% of the rent is
generated from areas that are classified as retail, 20% as restaurant, 19% as office and 8% as
doctors’ practice. The remaining 12% are from other or unclassified uses. Retail vacancy is at 20%
and office vacancy at 27%. The commercial vacancy is comparable to similar residential portfolios
that we are aware of.
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Principal characteristics of residential leases in Germany
Termination: Tenants in Germany have strong statutory protection, in particular regarding lease
termination and setting of rental levels. 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 (“Schönheitsreparaturen”). There are strict limits on the amount
that can be passed on to the tenant, unless damage has been caused by the tenant.
Rental Level: Residential rents in Germany are heavily influenced by the German rent-index
(“Mietspiegel”). Under Federal Law (Article 558 Bürgerliches Gesetzbuch or BGB), the
“Mietspiegel” effectively sets rental limits by district in line with the market average (“ortsübliche
Vergleichsmiete”) within each district for units of comparable type, location, size, fit-out-quality
and age. However, the initial rent is agreed by negotiation between landlord and tenant.
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 from the effective date of the current
“Mietspiegel”;
• If the landlord has improved the quality of the property by upgrading facilities or
refurbishment, in which case he may raise the rents by up to a further 11% (i.e. over the 20%
referred to above);
• Via progressive increases (step rents), which need to be agreed at the start of the tenancy
agreement;
• Via inflation-linked increases (“Indexmieten”), which need to be agreed at the start of the
tenancy agreement (not common practice).
The 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 usually prepared every two 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 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” scope can benefit from the uplift in Market Rents, which are then incorporated into
each new “Mietspiegel”.
Please note that there has been a change in legislation which became effective in April 2013.
According to the new regulation, local authorities have the right to define limits to rental
increases. Where this is applied, rent increases will be limited to 15%. Further changes in
legislation including a limit on the rent agreed also in new residential leases are under discussion.
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3.
German Residential Market Overview Q2 2013
3.1. Residential Supply
According to preliminary information provided by the Federal Statistical Office, between 2007 and
2011 the number of residential units in Germany increased by 1.4% to approx. 40.5 million, which
equates to approx. 3.5 billion sq m residential floor area. According to the micro-census 2010,
approx. 16.5 million units were inhabited by owner-occupiers, representing a share of approx.
46%. The rest was held by professional suppliers, such as public or private housing companies,
associations or smaller companies. Companies with letting not being their main business activity
constitute a significant proportion (37% in 2006). As a result the market is fairly fragmented.
Ownership structure of the residential stock in Germany 2010
46%
54%
Owner occupiers
Smaller companies and professional
providers
Source: Micro-census 2010
Compared to other real estate sectors, the residential market is characterised by the stable
development of vacancy rates over the recent years. According to the latest Techem-empiricavacancy index 2009, the vacancy rate for residential units in residential buildings with three or
more apartments was 3.7%, which does not constitute an 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.
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The development of vacancy rates between 2001 and 2009 is shown in the following chart:
Development of apartment building vacancy rates from 2001 to 2009
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
2001
2002
2003
Vacancy rate East
2004
2005
2006
Vacancy rate West
2007
2008
2009
Total
Source: Techem / empirica
The Techem-empirica-vacancy index is based on marketable residential units for which Techem
bills the heat costs.
According to the micro-census 2010 the overall vacancy rate of residential accommodation in
Germany amounted to 8.8%, thereof East Germany including Berlin with 11.5% and West
Germany with 7.8%. The federal states of Bremen (5.0%), Hamburg (5.6%) and Schleswig-Holstein
(5.7%) represented the lowest vacancy rates, while Saxony-Anhalt (15.1%), Saxony (14.1%) and
Mecklenburg-West Pomerania as well as Thuringia (both 11.0%) had the highest vacancy rates.
Berlin had an average vacancy rate of 7.6%.
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Apartment building vacancy rates at Federal States level 2010
16%
14%
12%
10%
8%
6%
4%
2%
0%
Source: Micro-census 2010
The micro-census vacancy rates are based on assumptions by interviewers. If an occupier has not
been met several times and the inspected residential unit appears to be unoccupied the unit is
declared as vacant. The different data collection methods explain the higher vacancy rates of the
micro-census compared with Techem-empirica figures.
The forecast of housing demand by the Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR)
implies increasing vacancy rates until 2025, particularly in apartment buildings.
According to recent information provided by the Federal Statistical Office, in Q4 2012, building
permissions were granted for a total of approximately 61,000 residential units, which is slightly
less (-4.3%) than in the previous quarter and a slight increase of 1.1% compared to Q4 2011. In
2012, a total of about 239,500 building permissions were granted, which equates to an increase of
4.9% compared with 2011. Around 70% of this increase can be attributed to owner-occupied flats
and homes.
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Development of apartment building permissions from Q1 2010 to Q4 2012
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Source: Federal Statistical Office
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Shown below is the development of building permissions and the completion of apartments
differentiated by new apartments and already existing apartments between 2008 and 2011:
Development of apartment building permissions and apartments completed from 2008 to 2011
250,000
200,000
Building permissions - Existing
apartments
150,000
Building permissions - New apartments
Buildings completed - Existing
apartments
100,000
Buildings completed - New apartments
50,000
0
2008
2009
2010
2011
Source: Federal Statistical Office
The housing construction activity of around 183,000 residential units per year in 2011 represents
only slightly more than half the volume of 2001, but the largest recorded yearly since 2006.
Currently 80% of the total housing investment volume is being invested in the existing residential
stock, for example for renovation and modernisation.
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3.2. Residential Demand
Transaction volume
According to BulwienGesa in 2012, 183 residential portfolios (50 units upwards) with a total
volume of approx. 215,000 units changed hands. The total investment volume is estimated to be
€11.45 billion, representing an increase of approx. 140% compared to 2011.
Development of the transaction volume of residential portfolios and number of traded units
from Q1 2010 to Q1 2013
€4,000m
80,000 units
€3,500m
70,000 units
€3,000m
60,000 units
€2,500m
50,000 units
€2,000m
40,000 units
€1,500m
30,000 units
€1,000m
20,000 units
€500m
10,000 units
€0m
0 units
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013
Transaction volume
Residential units
Source: BulwienGesa
In Q3 2012 there have been no transactions exceeding 3,000 units. Due to that, despite an
increase of the number of deals, the number of traded units and the transaction volume have
decreased and reached the level of Q4 2011. In Q4 2012 however, another extraordinary increase
of the transaction volume (+ 144%) to €3.51 billion and of the number of traded units (+ 193%) to
68,000 was reached. In Q1 2013 these figures decreased to €1.80 billion and 30,500 units (not
including the LEG NRW initial public offering with €2.3 billion pro rata transaction volume and
52,260 residential units).
In Q1 2013, the average number of units per deal has been significantly lower than in Q1 2012
(650 units compared to 1,516 units).
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Asset deal
Asset deal
Asset deal
Asset deal
03/13
02/13
02/13
01/13
Berlin
Berlin
Deutsche Wohnen
Union Investment
Institutional Property
Petrus Fund by
Credit Suisse
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
TAG
3,700
Berlin, Frankfurt/M, Mannheim,
Wiesbaden, Münster, Solingen,
Leipzig, Dresden
German institutional
purchasers
Corestate Capital
1,384
5,300
1,085
32,000
7,800
1,200
1,923
Number of
units
Berlin
Bavaria
Predominantly Berlin
Berlin (Höhenschönhausen)
Rhine-Main Region, Berlin,
Munich, Hamburg
Federal State/City/District
Westgrund
n/a
BayernLB
Share deal (92%
ownership
shares)
04/13
Consortium of
investors headed by
Patrizia Immobilien
Deutsche Wohnen
Blackstone-Fonds
Real Estate
Partners Europe III
Asset deal
04/13
DeWAG/European
pension fund
Purchaser
Estavis AG
Asset deal
05/13
German insurance
group
Vendor
Fund company
Asset deal
Type of
transaction
05/13
Date
The following data table shows the major transactions in Q1 2013 and Q2 2013:
Valuation and Report | Deutsche Bank AG
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n/a
346,000
n/a
75,300
n/a
500,000
n/a
129,000
Lettable
area in
sq m
€87m
n/a
n/a
n/a
n/a
€598
€45m
(estimated)
€250m
n/a
€840
n/a
n/a
Purchase
price per
sq m
€2,453m
€420m
€45.3m
n/a
Purchase
price
Page 32 of 54
n/a
n/a
n/a
11.5
16.4
14.1
11.0
n/a
Multiplier
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In 2012 the largest purchaser group were REITs and listed real estate companies. The largest
vendor group were credit institutes selling portfolios of insolvent owners. The current market
situation is characterised by a huge demand especially regarding extensive portfolios. The
investor focus still lies on low-risk investments in larger cities or metropolitan areas. Especially
Berlin is still of interest.
Forecast of demand
According to the “lower limit variant” of the median population projection of the Federal
Statistical Office, by the year 2025 a decrease of population from 81.5 (2010) to 78.8 million is
expected. This process would go along with domestic migration, mostly of young people,
especially towards conurbations with attractive employment opportunities, causing further
increases in population and further surplus demand in growth regions.
On the other side, mostly areas in the eastern federal states (-8.5% by the year 2025) and less
economically powerful regions in former West Germany would be affected by population decline.
However, according to Deutsche Bank Research, in regions where the forecasting error is high,
opportunistic investors are expected to show interest.
The 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 an increasing share of single-person households, the reduction of the average size of
households and the replacement requirements of aging buildings.
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The Federal Statistical Office predicts that between 2010 and 2025 the number of households will
increase by 1.11 million to 41.14 million. The predicted development is shown in the figure below:
Expected development of single-person and multi-person households
45,000
40,000
Total
35,000
30,000
25,000
Single-person households
20,000
15,000
Multi-person households
10,000
5,000
0
2010
2015
2020
2025
Source: Federal Statistical Office
Demand will increase for both, affordable housing and high-quality accommodation, particularly
in city centre locations, due to the increasing spread of household income.
In a lower and an upper scenario variant in the forecast of residential unit demand by the BBSR
different Assumptions concerning the population and household development and the national
and international migration are made. In the lower variant housing units in Germany would need
to increase at an average of 183,000 (West Germany: 154,000, East Germany: 29,000), in the
upper variant at an average of 256,000 (West Germany: 215,000, East Germany: 41,000) per year
by 2025.
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The forecasted demand in the “lower scenario variant”, which is most probable due to the
currently low immigration, is shown below:
New residential
units in West
Germany
Average demand
p.a. 2010-2025
Average demand
p.a. 2010-2015
Average demand
p.a. 2016-2020
Average demand
p.a. 2021-2025
Residential units
in one and two
family houses
98,000
103,000
97,000
93,000
Residential units
in apartment
buildings
55,000
56,000
58,000
52,000
154,000
159,000
155,000
145,000
Total
New residential
units in East
Germany
Average demand
p.a. 2010-2025
Average demand
p.a. 2010-2015
Average demand
p.a. 2016-2020
Average demand
p.a. 2021-2025
Residential units
in one and two
family houses
17,000
19,000
18,000
14,000
Residential units
in apartment
buildings
12,000
15,000
12,000
10,000
Total
29,000
33,000
30,000
24,000
Source: BBSR
It has to be pointed out that the increasing demand will primarily come from owner-occupiers
(increase by 15.5%) and not from new tenants (decline by 4.9%). In particular, the 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 is seen in Berlin,
the Rhein-Main-Taunus district and the southern regions of Bavaria and Baden-Wuerttemberg.
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3.3. Market Prices
Letting market
According to the BBSR, the average asking rent for apartments in apartment buildings in Germany
in 2011 increased by 2.9% from the previous year to €6.38 per sq m and month (in West Germany
by 2.7% to €6.72, in East Germany by 3.5% to €5.51). Compared to 2010, in 77% of all districts and
self-governing cities the rents increased by at least 0.5%. These increases are lower than the
average inflation rate of 2.4% in 2011. According to the Deutsche Städtetag, the increase of rents
in new contracts is much higher than the legally permissible increase of rents in existing contracts,
which may lead to problems in providing enough affordable housing space.
The development from 2004 to 2011 is shown below:
Development of average asking rents of apartments per sq m and month in East and West
Germany from 2004 to 2011
€8
€7
€6
€5
€4
€3
€2
€1
€0
2004
2005
2006
Asking rents East Germany
2007
2008
2009
Asking rents West Germany
2010
2011
Total
Source: BBSR
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The top ten cities with the highest asking rents and the development from 2010 to 2011 can be
seen in the following table:
City
Asking rents 2011 in € per sq m
Development from 2010 to 2011
Munich
€11.81
3.50%
Frankfurt/M
€10.34
3.30%
Freiburg im Breisgau
€9.43
8.10%
Hamburg
€9.33
7.50%
Stuttgart
€9.09
3.50%
Heidelberg
€8.96
3.60%
Darmstadt
€8.65
-0.20%
Mainz
€8.63
2.90%
Regensburg
€8.58
3.70%
Wiesbaden
€8.23
2.70%
Source: BBSR
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The changes of asking rents across the top eight markets in Germany from Q1 2012 to Q1 2013
for residential units between 60 and 80 sq m in good condition and constructed after 2000 can be
seen in the following chart based on the latest survey by empirica:
Development of average asking rents of apartments per month from Q1 2012 to Q1 2013
16 €/sq m
14 €/sq m
12 €/sq m
10 €/sq m
8 €/sq m
6 €/sq m
4 €/sq m
2 €/sq m
0 €/sq m
Q1 2012
Q1 2013
Source: empirica
The highest increase was observed in Munich (9%). High increases were observed in Stuttgart
(8%) and Berlin (7%). Other cities have also seen a significant increase of 5% and 6%. The highest
average residential asking rents per sq m and month are still achieved in Munich (€13.77) and
Frankfurt (€12.11). Stuttgart (€11.26) is now placed third before Hamburg (€11.15).
According to the Verband deutscher Pfandbriefbanken (vdp), in 2012 the rents for re-lettings
increased by 4% compared to 2011. According to the “Spring Report” by the Council of Real Estate
Experts (“Rat der Immobilienweisen“), the rental level as a whole grew by only 2.4%, which was
only slightly above the annual inflation rate of 2.0%. For 2013, empirica expects an average rental
growth of approx. 3%.
Investment Market
Currently, there is an excess demand on the residential investment market. In Q4 2012, the vdp
Residential Index has reached 113.6 points which represents the highest score since the beginning of
the monitoring in Q1 2003. According to the vdp, compared to 2011 in 2012 the sale prices for all
kinds of residential accommodation increased significantly by 4 % (condominiums by 5.8%, apartment
buildings by 4.7%). However, a price bubble affecting the whole residential market is still not expected
by the vdp. Regarding future prospects, empirica expects that in 2013 in cities like Munich, Hamburg
und Berlin the sales prices will increase by further 6 to 10%.
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4.
Berlin Residential Market Overview Q2 2013
4.1. Introduction
Berlin as the capital of Germany is an important political, cultural and economic centre and with
about 3.54 million inhabitants (November 2012) the largest city in Germany. The economy of
Berlin is dominated by the service sector. The most significant branches are media, information
and communication technology, tourism, biotechnology and medical technology. In particular, the
economic structure is as follows:
Economic structure based on employees’ social insurance contributions Q4 2011
3%
Agriculture, forestry, fishery
31%
26%
Manufacturing trade
Processing trade
Building industry
2%
Wholesale and retail, transport, hotel and restaurant industry
15%
24%
8%
Corporate services
Public and private services
Source: Regional Statistical Office Berlin-Brandenburg
In 2012, Berlin’s economic performance increased by 1.2% (Germany overall: 0.7%). Currently, the
unemployment rate in Berlin is 12.3% (April 2013), which is significantly above the overall
unemployment rate of 7.1% in Germany.
According to RIWIS, between 2006 and 2011 Berlin’s population grew by 2.9%. The number of
households, the main influencing factor on the demand side of the housing market, has increased
by approximately the same amount in the same period (3.2%), primarily due to a growing share of
single-person households. According to the current micro-census, the share of single-person
households amounted to 55% in 2011.
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Taking into account these statistics, the growth in housing stock in the same period was only
moderate (1.0%). According to the lower limit variant of the median population projection of the
Federal Statistical Office, by the year 2020 Berlin will have 3.41 million inhabitants. The basis
variant of the population projection by the Senatsverwaltung für Stadtentwicklung predicts a
more slight decrease to 3.48 million.
According to the Verband Berlin-Brandenburgischer Wohnungsunternehmen (BBU), the demand
for new residential units in Berlin will be at least 60,000 by the year 2020.
According to a survey on behalf of the Investitionsbank Berlin (IBB), in 2010 the vacancy rate in
residential accommodations amounted to 7.3%. This number reflects all apartments which were
longer than three months vacant. The vacancy rate for residential accommodations which were
vacant longer than six months amounted to approximately 5.5%. According to the BBU, in 2011
the overall vacancy rate in Berlin only amounted to 2.6%. However, this figure only includes
accommodations managed by professional housing associations which were registered in the
BBU. Compared to other cities in the eastern part of Germany this is very low. Above-average
vacancy rates can particularly be found in decentral districts. For the upcoming years the
Senatsverwaltung für Stadtentwicklung und Umwelt expects that the vacancy rate will further
decline due to the rising number of households.
The overall vacancy rate in 2011 on district level according to the BBU is shown in the table
below:
District
Charlottenburg-Wilmersdorf
Friedrichshain-Kreuzberg
Lichtenberg
Marzahn-Hellersdorf
Mitte
Neukoelln
Pankow
Reinickendorf
Spandau
Steglitz-Zehlendorf
Tempelhof-Schoeneberg
Treptow-Koepenick
Berlin
Vacancy rate
1.3%
1.6%
1.6%
4.0%
1.8%
1.9%
3.0%
4.1%
3.6%
3.3%
3.2%
2.0%
2.6%
Source: BBU press release 10/05/2012
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4.2. Letting Market
One of the major characteristics of the residential market in Berlin is the very low ownership ratio.
The share of rented apartments is significantly higher than in other German cities. According to
the micro-census 2010, it amounted to 14.9% in 2010 (Germany overall: 45.7%).
In 2012 the average rent in new buildings was €10.00 per sq m and month and €7.60 for relettings. According to RIWIS between 2007 and 2012 the average rents for new buildings
increased by 33.3% and for re-lettings by 21.6%. The development is shown below:
Development of average rents per sq m from 2007 to 2012
€12
€10
€8
€6
€4
€2
€0
2007
2008
2009
New buildings
2010
2011
2012
Re-letting
Source: RIWIS
In Q1 2013, the average asking rent of apartments per sq m and month (60 to 80 sq m with good
quality, constructed after 2000) increased by approximately 3.8% compared to Q1 2013. Currently
it stands at €10.01. Nevertheless, in other cities such as Munich, Frankfurt, Hamburg, Cologne and
Stuttgart the upmarket rents remained higher.
According to the BBU, between 2005 and 2012 the construction costs in Berlin increased twice as
much as the general inflation rate over the same period. The BBU expects further increasing rents
for new buildings due to this development. According to the BBU, new buildings would
meanwhile only be profitable with rents of €9.50 per sq m and above.
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As the asking rents for accommodations with basic and standard fit-out have also been increasing
in demanded residential locations especially in the districts Mitte, Prenzlauer Berg, FriedrichshainKreuzberg and also parts of Neukoelln, Wedding and Lichtenberg, crowding-out of low-income
households by middle and high-income households may be the consequence. This effect could be
magnified in the near future by further growing rents, the ongoing upgrading of residential units
and the simultaneous phasing out of rent restrictions based on social housing programs.
The table below shows the median rents in the districts of Berlin in 2011/2012:
District
Charlottenburg-Wilmersdorf
Friedrichshain-Kreuzberg
Lichtenberg
Marzahn-Hellersdorf
Mitte
Neukoelln
Pankow
Reinickendorf
Spandau
Steglitz-Zehlendorf
Tempelhof-Schoeneberg
Treptow-Koepenick
Berlin
Median in € per sq m
8.93
8.61
6.53
5.08
8.03
6.70
8.00
6.31
5.93
7.99
7.49
6.55
7.40
Source: IBB Wohnungsmarktbericht 2012
Overall, 80% of the accommodation supply ranges between €5.32 and €11.36 per sq m.
According to the IBB Wohnungsmarktbarometer 2012, most of 256 consulted real estate experts
expect further growing rents, an increasing demand and a decreasing supply for rental
apartments. Only in the uplevel-market a balanced proportion of supply and demand is currently
observed.
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4.3. Investment Market
According to information provided by the Gutachterausschuss Berlin, in 2011 a large increase in
all market segments has been observed compared to 2010. In 2012 the total real estate
transaction volume in Berlin increased by 14%.
The development in the submarkets condominiums, apartment buildings and mixed-use buildings
between 2011 and 2012 is summarised below:
Development of sales
2011
2012
Change
17,597
19,888
+13%
€2,832.7 million
€3,380.8 million
+19%
1,035
779
-25%
€1,735.2 million
€1,417.9 million
-18%
Condominiums
Number of purchase contracts
Volume
Apartment buildings (without commercial)
Number of purchase contracts
Volume
Mixed-use buildings
Number of purchase contracts
Volume
828
870
+5%
€2,225.8 million
€2,712.4 million
+22%
Source: Gutachterausschuss Berlin
The sub-market of apartment buildings shows a significant decrease whereas the condominium
transactions continue to increase. An increase can also be observed on the market for mixed-use
buildings.
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Between 2007 and 2012, the average sales price per sq m for condominiums increased
extensively by 33.6% for new condominiums and by 20.6% for existing condominiums. The
increase from 2011 to 2012 was 7.7% for new condominiums and 7.9% for existing
condominiums.
Average sale prices for condominiums per sq m from 2007 to 2012
€4,000
€3,500
€3,000
€2,500
€2,000
€1,500
€1,000
€500
€0
2007
2008
2009
New buildings
2010
2011
2012
Re-sale
Source: RIWIS
In 2012 the average sale price stood at €3,500 per sq m for new condominiums and at €2,050 per
sq m for existing condominiums.
According to the IBB Wohnungsmarktbarometer 2012, most of the consulted real estate experts
expect that the current excess demand for condominiums will maintain in the next years.
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The average multiplier for existing apartment buildings indicates a constantly high demand over
the last years with only slight fluctuations. In 2012, it stood at 17.3 times the net cold rent,
ranging from 12.5 to 19.8 times. According to RIWIS, Berlin’s residential market has
extraordinarily growth prospects over the next 5 years.
Development of multipliers for existing apartment buildings from 2007 to 2012
25
20
15
10
5
0
2007
2008
Average
2009
Lower limit
2010
2011
2012
Upper limit
Source: RIWIS
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Asset deal
Asset deal
Asset deal
Asset deal
Asset deal
05/13
04/13
03/13
02/13
01/13
n/a
n/a
German
institutional
investor
Union Investment
Institutional
Property
Petrus Fund by
Credit Suisse
TAG Immobilien
Spandau
n/a
1,384
5,300
1,085
7,800
1,200
Hohenschönhausen
Westgrund
Deutsche
Wohnen
BlackstoneFonds Real
Estate Partners
Europe III
Number
of units
District
n/a
Estavis AG
Purchaser
Fund company
Vendor
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
Source: Thomas Daily
Type of
transaction
Date
n/a
346,000
75,300
500,000
n/a
Lettable area
in sq m
The following data table shows major transactions (1,000 units and more) in Q1 and Q2 2013:
Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
€87m
n/a
n/a
€598
€45m
(estimated)
n/a
€840
n/a
Purchase
price per
sq m
€420m
€45.3m
Purchase
price
Page 46 of 54
n/a
n/a
11.5
14.1
11.0
Multiplier
Valuation and Report | Deutsche Bank AG
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5.
SWOT Analysis
We have carefully considered the portfolio and the current market situation. We have identified
the following strengths, weaknesses, opportunities and threats relating to the portfolio.
Strengths
• Overall fair vacancy rate on portfolio level
• Most of the properties are located in economically stable locations
• Overall fair state of repair
• Currently strong German market with significant demand for residential properties,
particularly in Berlin
Weaknesses
• Most of the properties are located in less prestigious housing areas
• Many older buildings will require significant ongoing maintenance in terms of both fabric and
services
• A minor share of the properties is subject to hereditary building rights or part ownerships
• Widespread locations of the properties represents a challenge to asset management
Opportunities
• Improvement of external and internal appearance
• Most of the properties are under-rented
• Good investor demand on property and sub-portfolio level for most of the portfolio locations
• Some of the properties have potential to convert apartments into condominiums and either
rent or sell
• Some of the properties offer potential for rent increase after expiry of rent restrictions
Threats
• Increasing asset management requirements to ensure ongoing maintenance is undertaken
• Apartments being vacated are likely to be in need of refurbishment, which will also give an
opportunity for rental growth
• Restricted rental growth if the planned capital expenditure and maintenance are not
implemented
• Limited marketability of the leasehold and part-ownership properties
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6.
Valuation
6.1. Market Rent
The Market Rent was derived individually at property cluster level taking into consideration the
quality of the properties with reference to location, refurbishment status, size and layout of the
apartments and commercial units. Particularly the recent lettings of the individual properties
were used to get an overview of the current rents achievable. We have also considered
comparable rents on the basis of our market research.
The Cumulative Market Rent (rounded) amounts to €54,222,000 per annum. This is 24% above
the contracted rent of €43,768,000 per annum giving potential for growth over the next 10 years.
This growth potential includes both a reduction of vacancy and adjustment of current rent per
sq m to Market Rent per sq m in the course of tenant fluctuation.
6.2. Overall Approach and Analysis
As instructed, the Portfolio has been valued on individual property cluster level. We have
estimated the Market Value by using the Discounted Cash Flow (DCF) approach over a ten-year
period. Each property cluster has been valued individually with the Portfolio Market Value being
the sum of the individual property values.
Our valuation is based on the information provided and on the Assumptions as described in this
Report and Appendices.
General DCF Assumptions
• The valuation is undertaken on property cluster level; the total value shows the aggregation of
the single asset values.
• The valuation date is 31 May 2013.
• Information received until 21 June 2013 has been reflected.
• 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 property cluster level depending on
the market situation as well as on the condition of the buildings.
• 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 statistical data).
• Passing rents were linearly adjusted to market level over ten years and the Market Rent was
adapted to inflation on a yearly basis.
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• We have reflected turnover voids of between 1% and 5% across the portfolio.
• Where we have assumed a permanent vacancy, the vacancy rate has been adjusted to this
level within three years. We have assumed a constant adjustment from the date of valuation
to year three.
We have taken the data from the rent roll dated April 2013, as provided by BGP Asset
Management GmbH. The valuation date is 31 May 2013. We have assumed that the lettable areas
given in the rent roll are correct. Furthermore we have assumed that the tenants fulfil their
contractual duties.
Operating Costs
The operating costs were assumed as follows:
Costs
Management
Residential
Commercial
€230 per unit p.a./
€300 per unit (part ownership)
2.00% of Potential Rent
Maintenance building
€7.00-13.50 per sq m p.a.
Credit & collection loss
2% of Passing Rent
Maintenance parking
Vacancy costs
€40 per parking space p.a./
€80 per parking space (underground parking garage)
€12 per sq m p.a.
The operating costs are listed in the respective Template Reports in the Appendix. We would
expect those costs levels for an average purchaser of the properties and have based our
Assumption on market experience and benchmark figures.
We have assumed ongoing maintenance costs of 5% of the potential annual income. We have
adopted additional costs for a fund reserve based on an individual cost assessment according to
the “II. Berechnungsverordnung” and adjustments according to the respective refurbishment
status, the listing status and the technical equipment (e.g. lifts) of the properties.
Furthermore, management fees were calculated with €230 per unit, following the German
guideline “II. Berechnungsverordnung”. For units subject to part ownership we have adopted a
rate of €300 per unit due to the higher management effort required. Regarding credit and
collection loss we have assumed an overall average of 2% for the Portfolio and have reflected this
for the individual property clusters in the cash flow.
We have made our own estimate regarding 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 and maintained appropriately.
Vacancy costs are assumed at individual property level at an overall average of €1.00 per sq m per
vacant month.
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Tenant Improvements
Generally, we have reflected a minimum of €25 per sq m for tenant improvements, which apply
to tenant fluctuation and vacancy reduction. The actual costs per property are shown in the
respective Template Reports in the Appendix.
Capital Expenditure
We have been provided with a Technical Due Diligence prepared by STIWA
Immobilienmanagement & Consulting Chartered Surveyors GmbH. According to the information,
the overall capital expenditure requirement (defined as “structural repairs” and “overdue
maintenance”) amounts to about €27,300,000, thereof €10,000,000 backlog in the first year. We
have fully reflected the figures stated by STIWA at individual property cluster level. We
understand that capital expenditure refer to necessary repair works for deferred maintenance
(but not redevelopment measures).
Please note that the capital expenditure reflected after the first year of our cash flow may be
partly set-off against fund reserve payments that we have assumed in addition to ongoing
maintenance costs for smaller repairs. The cash flow line item “capital expenditure” represents
the amount not covered by the fund reserve, with the exception of year one, where we reflect the
full amount in addition to the fund reserve.
The general condition and age of the buildings was also reflected by the adopted yields and
Market Rents. For further information please refer to respective Template Reports in the
Appendix.
Heritable Building Rights
A total of 18 of the properties are subject to heritable building rights. In this respect we have
reflected the leasehold payments as stated in the information provided in the digital data room.
Furthermore, we have reflected a premium on the discount and cap rate.
Further information on the individual heritable building rights are shown in the respective
Template Reports in the Appendix.
Part Ownership
A total of 12 of the properties are subject to part ownership. In this respect we have reflected
30% increased management costs. Furthermore, where applicable, we have reflected a premium
on the discount and cap rate.
We have not assumed a continuing privatisation of the affected properties; however, we have
reflected condominium sales as comparable evidence, where available. Further information on
the part ownership properties are shown in the respective Template Reports in the Appendix.
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Yields
The yield levels applied have been verified by us with respect to the location, building quality and
leasing situation of the property clusters in comparison with comparable offers and recent
investment transactions.
Definitions of Cash Flow Line Items
Potential Base Rental Revenue
Includes actual (year 0) and projected (year 1-10) residential and commercial income plus Market
Rent that may be received on vacant residential and commercial areas, excluding structural
vacancy.
Absorption & Turnover Vacancy
Unrealized potential revenue due to areas that are continuously vacant (structural vacancy and
areas to be firstly let on the date of valuation) plus temporary vacancy due to tenant fluctuation.
For Example, a 3-month vacancy period at a 10% turnover rate equals an annualized 2.5%
turnover vacancy.
Total Other Revenues
Includes income from parking plus income from any other sources listed in the rent roll.
Reserve Fund
Payments for irregular larger repairs in addition to regular smaller ongoing maintenance.
Ground Rent
Recurring payments to the land owner at leasehold properties.
Renovation Costs
Costs incurred upon tenant fluctuation and vacancy reduction to restore or upgrade units in order
to achieve the assessed Market Rent.
Capital Expenditure
Includes structural repairs and overdue maintenance identified by the technical advisers (STIWA)
and not covered by the reserve fund.
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7.
Assumptions and Definitions
7.1. Valuation conditions and Assumptions
These are the conditions and Assumptions upon which our valuations and reports are normally
prepared and form an integral part of our appointment together with our related Engagement
Letter and DTZ Terms and Conditions. Unless otherwise referred to in this Valuation Report these
conditions and Assumptions apply to the valuation(s) that are the subject of this Valuation Report.
We have made certain Assumptions in relation to facts, conditions or situations affecting the
subject of, or approach to, our valuations that we have not verified as part of the valuation
process but rather, as referred to in the Glossary to the RICS Valuation – Professional Standards
2012 (the “Red Book”), have treated as “a supposition taken to be true”. In the event that any of
these Assumptions prove to be incorrect then our valuation(s) will need to be reviewed.
Basis/Bases of valuation
The properties have been valued on the basis/bases set out in Section 1 of this Valuation Report and
defined in Section 6.2 of this Valuation Report.
Title
We have not had access to the title deeds of the properties. Unless specifically advised to the
contrary by you or your legal adviser, we have made the Assumption that titles are good and
marketable and are free from rights of way or easements, restrictive covenants, disputes or
onerous or unusual outgoings. We have also made the Assumption that the properties are free
from mortgages, charges or other encumbrances.
Where a Certificate of Title has been made available, we have reflected its contents in our
valuation(s). Save as disclosed either in any such Certificate of Title or as referred to in our
Valuation Report, we have made the Assumption that there is good and marketable title and that
the properties are free from rights of way or easements, restrictive covenants, disputes or
onerous or unusual outgoings. We have also made the Assumption that the properties are free
from mortgages, charges or other encumbrances.
Where a Valuation Report contains site plans these are based on extracts of the Cadastral Plan or
other maps showing, for identification purposes only, our understanding of the extent of title
based on site inspections or copy title plans supplied to us. If verification of the accuracy of these
plans is required, the matter must be referred by you to your solicitors.
Condition of structure and services, deleterious materials
It is a condition of DTZ 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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Our valuation(s) has/have taken account of the general condition of the properties as observed
from the valuation inspection. Where a separate condition or structural survey has been
undertaken and made available to us, we have reflected the contents of the survey report in our
valuation(s), and we may have discussed the report with the originating surveyor.
Due regard has been paid to the apparent state of repair and condition of the properties, but a
condition survey has not been undertaken, nor has woodwork or other parts of the structure
which are covered, unexposed or inaccessible, been inspected. Therefore, we are unable to report
that the properties are structurally sound or are free from any defects. We have made an
Assumption that the properties is free from any rot, infestation, adverse toxic chemical
treatments, and structural or design defects other than such as may be mentioned in our
Valuation Report.
Unless access was readily available, we have not been able to gain access to the roof or roof voids
and we have thus made the Assumption that inspection of those parts will not reveal defects of
which we are not aware, such as would have an adverse effect on the value or the saleability of
the properties.
We have not arranged for investigations to be made to determine whether high alumina cement
concrete, calcium chloride additive or any other deleterious material have been used in the
construction or any alterations in respect of the properties, and therefore we cannot confirm that
the properties are free from risk in this regard. For the purposes of our valuation(s), we have
made an Assumption that any such investigation would not reveal the presence of such materials
in any adverse condition.
We have not carried out an asbestos inspection. We advise that such enquiries be undertaken by
a lawyer during normal pre-contract or pre-loan enquiries.
No mining, geological or other investigations have been undertaken to certify that the site is free
from any defect as to foundations. We have made an Assumption that the load bearing qualities
of the site of the properties are sufficient to support the buildings constructed, or to be
constructed thereon. We have also made an Assumption that there are no services on, or crossing
the site in a position which would inhibit development or make it unduly expensive and that there
are no abnormal ground conditions, nor archaeological remains present, which might adversely
affect the present or future occupation, development or value 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 an
Assumption that all services, including gas, water, electricity and sewerage are provided and are
functioning satisfactorily.
In the case of new properties, the construction of which has not been commenced or completed,
or properties built within the last ten years, we have made the Assumption that the construction
will be/has been satisfactorily completed and that it will be/has been built in compliance with
national building regulations and standards.
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Plant and machinery
No allowance has been made for any items of plant or machinery not forming part of the service
installations of the building. We have specifically excluded all items of plant, machinery and equipment
installed wholly or primarily in connection with any of the occupants’ businesses. We have also
excluded furniture and furnishings, fixtures, fittings, vehicles, stock and loose tools.
Goodwill
No account has been taken in our valuation(s) of any business goodwill that may arise from the
present occupation of the properties.
Floor areas and inspections
We were not instructed to measure and calculate the floor areas. We have applied floor areas
provided by the applicant/client or their agents. We have made an Assumption that these areas
have been measured and calculated in accordance with the current Code of Measuring Practice
prepared by the Royal Institution of Chartered Surveyors or local equivalent.
Environmental matters
We have made the enquiries referred to in Section 2 of this Valuation Report regarding
environmental matters including contamination and flooding, and we have had regard to any
environmental reports referred to in Section 2 of this Valuation Report. However, we have not
undertaken a formal environmental assessment.
Where our enquiries have lead us to believe that the properties are unaffected by contamination,
flooding or other environmental problems, then, unless you have instructed us otherwise, our
valuation is based on an Assumption that no contamination or other adverse environmental
matters exist in relation to the properties sufficient to affect value.
Statutory requirements and planning
We have made verbal or written enquiries, or an inspection of the website, of the relevant
planning authorities to verify the existing permitted use of the properties. We have also sought to
ascertain whether the properties are listed or included in a redevelopment area. The results of
these enquiries are in the respective template reports.
Save as disclosed in a Certificate of Title or unless otherwise advised, and unless otherwise
referred to in this Valuation Report we have made the Assumption that the buildings have been
constructed in full compliance with valid town planning and building regulations approvals and
that where necessary have the benefit of current Fire Risk Assessments compliant with the local
requirements. Similarly, we have also made the Assumption that the properties are not subject to
any outstanding statutory notices as to its construction, use or occupation and that the existing
use(s) of the properties is/are duly authorised or established and that no adverse planning
conditions or restrictions apply.
We have made the Assumption that the properties complies with all relevant statutory
requirements.
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London Branch as Facility Agent
Please note the fact that employees of town planning departments now always give information
on the bases that it should not be relied upon and that formal searches should be made if more
certain information is required. We assume that, if you should need to rely upon the information
given about town planning matters, your solicitors would be instructed to institute such formal
searches.
In instances where we have valued properties with the benefit of a recently granted planning
consent or on the Special Assumption that planning consent is granted, we have made an
assumption that it will not be challenged under Judicial Review.
If a planning consent is subject to Judicial Review, we must be informed and asked to reconsider
our opinion of value. Advice would be required from your lawyer and a town planner, to obtain
their opinion of the potential outcomes of such a Judicial Review, which we will reflect in our
reconsideration of value.
Leasing
We have made an Assumption that copies of all relevant documents have been sent to us and
that they are complete and up to date.
We have not undertaken investigations into the financial strength of any tenant(s). Unless we
have become aware by general knowledge, or we have been specifically advised to the contrary,
we have made an Assumption that:
x Where a property is occupied under leases then the tenants are financially in a position to meet
their obligations, and;
x There are no material arrears of rent or service charges, breaches of covenant, current or
anticipated tenant disputes.
However, our valuation(s) reflect the market's general perception of the credit worthiness of the
type of tenant(s) actually in occupation or responsible for meeting lease commitments, or likely to
be in occupation.
We have also made an 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.
Legal issues
Legal issues, and in particular the interpretation of matters relating to title and leases, may have a
significant bearing on the value of an interest in property. No responsibility or liability will be
accepted for the true interpretation of the legal position of our client or other parties. Where we
express an opinion upon legal issues affecting the valuation, then such opinion should be subject
to verification by the client with a suitable 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 the properties and our Valuation Report will include a
statement to this effect.
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
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London Branch as Facility Agent
Information
We have made the Assumption that the information provided by you, the applicant and your
respective professional advisers in respect of the properties we have valued is both full and
correct. We have made the Assumption that details of all matters relevant to value within your
and their collective knowledge, such as prospective lettings, rent reviews, outstanding
requirements under legislation and planning decisions, have been made available to us, and that
such information is up to date.
Deduction of notional purchaser's costs
The Market Values which we have attributed to the properties are the figures we consider would
appear in a contract for sale, subject to the appropriate assumptions for these bases of value.
Where appropriate, we have made an allowance in respect of stamp duty and purchaser’s costs.
Please note that in the last years many federal states have increased the applicable real estate
transfer tax and it is possible that there will be further increases in the future.
Taxation
No adjustment has been made to reflect any liability to taxation that may arise on disposal, nor
for any costs associated with disposal incurred by the owner. Furthermore, 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.
Our valuation figure for each property is that receivable by the willing seller excluding VAT, if
applicable.
Properties in the course of development or requiring refurbishment
Unless otherwise referred to in the Valuation Report, we have relied upon information relating to
construction and associated costs in respect of both the work completed and the work necessary
for completion, together with a completion date, as advised by the owner of the properties or
their professional advisers.
Unless otherwise referred to in the Valuation Report, our valuation of the completed building has
been based on an Assumption that all works of construction have been satisfactorily carried out in
accordance with the building contract and specifications, current standards and any relevant
codes of practice. We have also made an Assumption that a duty of care and all appropriate
warranties will be available from the professional team and contractors, which will be assignable
to third parties.
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
Page 56 of 60
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London Branch as Facility Agent
7.2. Definitions of bases of valuations
Market value
Market Value as defined in Valuation Standard 3.2 of the RICS Valuation – Professional Standards
2012 (the “Red Book”) and applying the conceptual framework which has been settled by the
International Valuation Standards Council (IVSC). Under VS 3.2, the term “Market Value” means
“the estimated amount for which an asset or liability should exchange on the valuation date
between a willing buyer and a willing seller in an arm's length transaction after proper marketing
and where the parties had each acted knowledgeably, prudently and without compulsion”.
The conceptual framework settled by the IVSC is set out in paragraphs 31 – 35 of the IVS
Framework and is reproduced below:
“31. The definition of market value shall be applied in accordance with the following conceptual
framework:
(a) “the estimated amount” refers to a price expressed in terms of money payable for the
asset in an arm's length market transaction. Market value is the most probable price
reasonably obtainable in the market on the valuation date in keeping with the market value
definition. It is the best price reasonably obtainable by the seller and the most
advantageous price reasonably obtainable by the buyer. This estimate specifically excludes
an estimated price inflated or deflated by special terms or circumstances such as atypical
financing, sale and leaseback arrangements, special considerations or concessions granted
by anyone associated with the sale, or any element of special value;
(b) “an asset should exchange” refers to the fact that the value of an asset is an estimated
amount rather than a predetermined amount or actual sale price. It is the price in a
transaction that meets all the elements of the market value definition at the valuation date;
(c) “on the valuation date” requires that the value is time-specific as of a given date. Because
markets and market conditions may change, the estimated value may be incorrect or
inappropriate at another time. The valuation amount will reflect the actual market state
and circumstances as of the effective valuation date, not as of either a past or future date.
The definition also assumes simultaneous exchange and completion of the contract for sale
without any variation in price that might otherwise be made;
(d) “between a willing buyer” refers to one who is motivated, but not compelled to buy. This
buyer is neither over eager nor determined to buy at any price. This buyer is also one who
purchases in accordance with the realities of the current market and with current market
expectations, rather than in relation to an imaginary or hypothetical market that cannot be
demonstrated or anticipated to exist. The assumed buyer would not pay a higher price than
the market requires. The present owner is included among those who constitute “the
market”;
(e) “and a willing seller” is neither an over eager nor a forced seller prepared to sell at any
price, nor one prepared to hold out for a price not considered reasonable in the current
market. The willing seller is motivated to sell the asset at market terms for the best price
attainable in the open market after proper marketing, whatever that price may be. The
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
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Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
factual circumstances of the actual owner are not a part of this consideration because the
willing seller is a hypothetical owner;
(f) “in an arm's length transaction” is one between parties who do not have a particular or
special relationship, eg parent and subsidiary companies or landlord and tenant, that may
make the price level uncharacteristic of the market or inflated because of an element of
special value. The market value transaction is presumed to be between unrelated parties,
each acting independently;
(g) “after proper marketing” means that the asset would be exposed to the market in the most
appropriate manner to effect its disposal at the best price reasonably obtainable in
accordance with the market value definition. The method of sale is deemed to be that most
appropriate to obtain the best price in the market to which the seller has access. The length
of exposure time is not a fixed period but will vary according to the type of asset and
market conditions. The only criterion is that there must have been sufficient time to allow
the asset to be brought to the attention of an adequate number of market participants. The
exposure period occurs prior to the valuation date;
(h) “where the parties had each acted knowledgeably, prudently” presumes that both the
willing buyer and the willing seller are reasonably informed about the nature and
characteristics of the asset, its actual and potential uses and the state of the market as of
the valuation date. Each is further presumed to use that knowledge prudently to seek the
price that is most favourable for their respective positions in the transaction. Prudence is
assessed by referring to the state of the market at the valuation date, not with benefit of
hindsight at some later date. For example, it is not necessarily imprudent for a seller to sell
assets in a market with falling prices at a price that is lower than previous market levels. In
such cases, as is true for other exchanges in markets with changing prices, the prudent
buyer or seller will act in accordance with the best market information available at the
time;
(i) “and without compulsion” establishes that each party is motivated to undertake the
transaction, but neither is forced or unduly coerced to complete it.
32. The concept of market value presumes a price negotiated in an open and competitive market
where the participants are acting freely. The market for an asset could be an international market or a
local market. The market could consist of numerous buyers and sellers, or could be one characterised
by a limited number of market participants. The market in which the asset is exposed for sale is the
one in which the asset being exchanged is normally exchanged (see paras 16 to 20 above).
33. The market value of an asset will reflect its highest and best use. The highest and best use is the
use of an asset that maximises its productivity and that is possible, legally permissible and financially
feasible. The highest and best use may be for continuation of an asset's existing use or for some
alternative use. This is determined by the use that a market participant would have in mind for the
asset when formulating the price that it would be willing to bid.
34. The highest and best use of an asset valued on a stand-alone basis may be different from its
highest and best use as part of a group, when its contribution to the overall value of the group must be
considered.
35.
The determination of the highest and best use involves consideration of the following:
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
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Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
(a) to establish whether a use is possible, regard will be had to what would be considered
reasonable by market participants,
(b) to reflect the requirement to be legally permissible, any legal restrictions on the use of the
asset, eg zoning designations, need to be taken into account,
(c) the requirement that the use be financially feasible takes into account whether an
alternative use that is physically possible and legally permissible will generate sufficient
return to a typical market participant, after taking into account the costs of conversion to
that use, over and above the return on the existing use.”
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
Page 59 of 60
Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
Market rent
Market Rent as defined in Valuation Standard 3.3 of the Red Book. Under VS 3.3 the term “Market
Rent” means “the estimated amount for which a property would be leased on the valuation date
between a willing lessor and a willing lessee on appropriate lease terms in an arm's length transaction,
after proper marketing and where the parties had each acted knowledgeably, prudently and without
compulsion”.
Whenever Market Rent is provided the “appropriate lease terms” which it reflects should also be
stated.
The commentary from the Red Book is reproduced below:
“1.
The definition of market rent is a modified definition of market value; paragraphs C10 and C11
in IVS 200 provide additional commentary.
2.
Market rent will vary significantly according to the terms of the assumed lease contract. The
appropriate lease terms will normally reflect current practice in the market in which the property is
situated, although for certain purposes unusual terms may need to be stipulated. Matters such as the
duration of the lease, the frequency of rent reviews and the responsibilities of the parties for
maintenance and outgoings will all impact the market rent. In certain states, statutory factors may
either restrict the terms that may be agreed, or influence the impact of terms in the contract. These
need to be taken into account were appropriate.
3.
Valuers must therefore take care to set out clearly the principal lease terms that are assumed
when providing market rent. If it is the market norm for lettings to include a payment or concession by
one party to the other as an incentive to enter into a lease, and this is reflected in the general level of
rents agreed, the market rent should also be expressed on this basis. The nature of the incentive
assumed must be stated by the valuer, along with the assumed lease terms.
4.
Market rent will normally be used to indicate the amount for which a vacant property may be
let, or for which a let property be may re-let when the existing lease terminates. 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.”
Market Rent as stated in the executive summary and report does not only include potential changes of
rent on areas let on the date of valuation, but also potential future vacancy reductions.
Potential Rent as stated in the executive summary and report includes the rent on areas let on the
date of valuation plus potential future vacancy reductions.
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
Page 60 of 60
Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
8.
Appendices
A. Instruction Letter
B. Valuation Overview
C. Template Reports
D. General Contractual Conditions of DTZ Zadelhoff Tie Leung GmbH
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
A. Instruction Letter
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
B. Valuation Overview
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
©DTZ
Garching
Kirchseeon
Münster
Münster
Berlin
Berlin
Berlin
Berlin
Glienicke
Glienicke
Berlin
Berlin
Ahaus
Duisburg
Duisburg
Düsseldorf
Gronau
Gronau
Gronau
Gronau
Gronau
Gronau
Hannover
Isselburg
Köln
Köln
Köln
Köln
Legden
Mülheim
Nürnberg
Schöppingen
Stadtlohn
Vreden
Braunschweig
013
014
015
016
017
018
019
020
021
022
023
024
025
026
027
028
029
030
031
032
033
034
035
036
037
038
039
040
041
042
043
044
045
046
047
Berlin
010
Berlin
Berlin
009
Garching
Kiel
007
011
Kiel
006
012
Kiel
Kiel
Kiel
002
005
Kiel
001
004
City
ID
Valuation Overview
Valuation Date: 31 May 2013
2001
1999
1939
1987
Schönfließer Straße 70-79, 85-90; Lindenstraße 11,
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pö
Kölpiner Straße 2-24 (even); Golliner Straße 9-43 (u
1928
1928
Vereinstrasse 72, 76-84, 98-102, 106+108, 116, 268
Westbogenstrasse 3, 6, 12-20, Tannenbergstrasse 6
Gueldenstraße 37
Billunger Straße 15
Dufkampstraße 77
Enscheder Straße 10
Imbuschstraße 4
Kirchbachstraße 46
Schlesier Straße 28
Osloer Straße 6
Osloer Straße 2
1962
1954
1953
1963
1970
1964
1963
1975
1973
1974
Ludwig-Gies-Straße 18,20, Materéweg 51, Wilhelm
1966
1976
Maria-Lenzen-Straße 8, Nadorp-/Wilm-Rinck Straße
Liverpooler Platz 1-3, 5, 7-9
1973
1953
Warburghof 12-20
Zobelstrasse 3+5
1953
1951
Ulmenweg 1+3, Eichenallee 11a-c, Pappelweg 2+4,
Wiesenstrasse 21-35
1951
1971
1956
1953
Haydnstrasse 5
Stettiner Straße 124
Magdalenenstraße 18
Gartsträucherstraße 68
1951
1999
Schönfließer Straße 80-84; Oranienburger Chausse
Am Schäfingskamp 14
1938
Treskowallee 61
1938
1927
Trautenauer Straße 1-2; Hönower Wiesenweg 44-4
Seelenbinder Straße 82
1927
1972
Gundelfinger Straße 21-24; Hönower Straße 8-9
1976
Brüningheide 39, 65-73, 111-145, Killingstraße 15-2
1963
1972
Sprickmannstrasse 39-41
Kirchseeoner Weg 34-78
Römerhofweg 51-51e
1972
Heinrich-Heine-Straße 17, 19, 27, 29; Dresdner Stra
Römerhofweg 19 - 49
2000
Heinrich-Heine-Straße 15
2001
1939
Annenstraße 48-51
1954
Moorblöcken 0, 1, 8, Schwentinestraße 16-24a, Tie
1941
Nanthingasse 2-8
1900
Groß Ebbenkamp 1
1911
Hertzstraße 22-38, 35-49, 42-86, 53-85, Langer Reh
1960
Dietrichsdorfer Höhe 2-24
Year of construction
(estimated)
Eekberg 6, 8, 10, 16, 22, Geldbeutel 1, Quittenstras
Street
partly
partly
partly
partly
partly
partly
partly
not
not
partly
not
partly
not
partly
partly
partly
partly
partly
not
partly
not
not
partly
full
partly
full
full
partly
partly
partly
partly
partly
partly
partly
partly
partly
full
full
full
partly
partly
partly
partly
partly
partly
Status of
refurbishment
(estimated)
192
889
1,971
4,665
24,190
3,075
688
13,615
17,775
7,834
11,725
3,456
9,800
338
1,198
5,070
5,285
1,830
178
9,882
2,155
725
2,886
27,011
41,101
14,975
10,240
162
519
3,912
3,403
49,193
2,836
15,544
8,613
16,166
7,998
7,866
6,706
4,074
2,418
55,412
556
3,545
8,687
Total lettable area
in sq m
192
889
1,971
4,665
23,947
3,075
688
13,269
16,995
7,009
11,725
3,456
9,718
338
1,198
5,026
5,285
1,830
178
8,916
2,155
725
2,886
27,011
40,295
14,945
3,302
162
519
3,912
3,403
47,246
2,836
15,544
8,613
16,166
7,151
0
6,163
4,074
2,418
53,657
0
3,545
8,687
0
0
0
0
243
0
0
346
781
825
0
0
82
0
0
44
0
0
0
966
0
0
0
0
805
30
6,937
0
0
0
0
1,947
0
0
0
0
847
7,866
543
0
0
1,755
556
0
0
0
203
256
1,204
0
437
252
2,550
1,854
1,189
431
631
530
0
95
693
449
0
41
1,978
106
273
100
341
479
91
1,614
0
0
94
0
3,850
425
214
0
0
305
0
0
383
221
2,104
0
232
0
Residential area in Commercial area in
Vacant Area in sq m
sq m
sq m
€
€
10,778 €
28,779 €
83,533 €
178,647 €
1,610,619 €
169,439 €
22,672 €
680,553 €
962,696 €
372,128 €
693,511 €
124,149 €
586,425 €
15,265 €
54,952 €
182,620 €
181,761 €
86,122 €
5,928 €
539,901 €
110,048 €
24,028 €
138,261 €
1,451,811 €
2,452,676 €
1,359,860 €
248,727 €
8,695 €
35,965 €
256,380 €
241,524 €
2,309,363 €
147,683 €
1,022,745 €
651,469 €
936,567 €
713,140 €
-
605,043 €
219,677 €
127,651 €
3,288,718 €
-
195,652 €
537,947 €
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
-
-
-
-
€
€
€
€
18,187 €
-
-
68,151 €
72,171 €
82,172 €
-
-
4,440 €
-
-
1,417 €
-
-
-
34,892 €
-
-
-
-
53,062 €
840 €
613,812 €
-
-
-
-
89,317 €
-
-
-
-
76,381 €
801,755 €
84,310 €
-
-
65,702 €
24,000 €
-
-
€
€
€
€
74 €
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
-
-
-
-
-
€
€
€
€
€
7,376 €
-
4,072 €
-
-
13,833 €
5,085 €
-
-
-
-
-
-
-
10,740 €
-
-
-
180 €
767 €
660 €
3,119 €
-
-
-
-
13,398 €
-
-
-
-
2,004 €
3,300 €
-
-
-
-
-
-
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
-
-
€
€
1,181 €
4,565 €
72,118 €
5,450 €
521 €
-
19,985 €
15,554 €
-
9,262 €
12,149 €
-
1,503 €
180 €
-
-
-
4,394 €
2,765 €
-
2,276 €
-
7,440 €
82,338 €
37,342 €
-
-
-
-
13,974 €
-
52,493 €
28,296 €
69,120 €
-
-
121,260 €
908 €
-
429 €
-
1,640 €
37,075 €
10,778 €
28,779 €
84,714 €
183,211 €
1,700,924 €
182,265 €
23,194 €
752,776 €
1,054,852 €
469,854 €
707,344 €
138,496 €
603,014 €
15,265 €
56,455 €
184,218 €
181,761 €
86,122 €
5,928 €
589,928 €
112,813 €
24,028 €
140,537 €
1,451,991 €
2,513,944 €
1,443,698 €
902,999 €
8,695 €
35,965 €
256,380 €
241,524 €
2,426,052 €
147,683 €
1,075,238 €
679,765 €
1,005,687 €
791,525 €
805,055 €
810,613 €
220,585 €
127,651 €
3,354,923 €
24,000 €
197,292 €
575,022 €
Current Residential Current Commercial
Current Income p.a.
Additional income
Parking Income p.a.
Income
Income
(incl. parking/
p.a.
p.a.
p.a.
others)
20130829_DTZ_Valuation Overview Quokka_F.xlsx
4.68 €
3.50 €
4.06 €
4.30 €
5.61 €
5.35 €
4.33 €
5.64 €
5.42 €
5.70 €
5.12 €
3.66 €
5.31 €
3.76 €
4.15 €
3.50 €
3.13 €
3.92 €
3.62 €
6.06 €
4.48 €
4.43 €
4.14 €
4.54 €
5.14 €
7.62 €
8.33 €
4.48 €
5.78 €
5.60 €
5.91 €
4.41 €
5.10 €
5.56 €
6.30 €
4.83 €
8.55 €
8.49 €
8.57 €
4.96 €
4.84 €
5.24 €
3.60 €
4.92 €
5.16 €
Blended Current
Income
per sq m let
5.25 €
5.00 €
5.75 €
5.00 €
6.75 €
5.75 €
4.75 €
6.05 €
6.09 €
6.16 €
6.00 €
4.75 €
5.75 €
5.00 €
5.00 €
4.73 €
4.50 €
5.00 €
5.00 €
7.00 €
5.00 €
4.75 €
6.00 €
5.25 €
7.94 €
7.50 €
8.18 €
6.00 €
6.75 €
7.00 €
7.00 €
5.44 €
5.50 €
8.00 €
8.50 €
8.50 €
9.33 €
10.00 €
9.51 €
5.50 €
5.25 €
5.45 €
5.75 €
5.50 €
5.50 €
Blended Market
Income
per sq m
10,778 €
40,947 €
102,392 €
255,433 €
1,700,924 €
212,418 €
37,533 €
936,348 €
1,190,930 €
555,462 €
738,347 €
174,463 €
639,569 €
15,265 €
62,161 €
223,731 €
206,007 €
86,122 €
8,401 €
721,856 €
119,197 €
39,607 €
147,737 €
1,473,452 €
2,559,951 €
1,451,888 €
1,064,231 €
8,695 €
35,965 €
264,266 €
241,524 €
2,680,158 €
175,733 €
1,095,822 €
679,765 €
1,005,687 €
827,304 €
805,055 €
810,613 €
245,878 €
141,576 €
3,483,050 €
24,000 €
212,635 €
575,022 €
Potential Income
p.a.
(incl. Parking/
others)
12,078 €
53,320 €
137,147 €
284,436 €
2,031,486 €
225,001 €
39,723 €
992,671 €
1,318,523 €
594,422 €
858,016 €
211,339 €
688,320 €
20,280 €
73,388 €
288,233 €
285,390 €
109,800 €
10,661 €
811,015 €
132,074 €
41,352 €
210,042 €
1,701,843 €
3,924,874 €
1,431,090 €
1,045,280 €
11,635 €
42,015 €
328,621 €
285,893 €
3,239,039 €
187,176 €
1,544,727 €
906,800 €
1,718,065 €
897,366 €
947,194 €
886,864 €
269,798 €
152,309 €
3,626,121 €
38,336 €
235,617 €
610,435 €
Market Rent p.a.
(incl. Parking/
others)
11.13
13.20
14.17
12.55
11.58
13.17
14.23
12.89
11.28
8.94
13.43
13.72
10.95
11.14
12.75
13.03
10.45
12.77
14.68
13.39
8.86
12.90
10.67
12.05
16.43
15.17
15.06
17.25
15.01
16.77
15.73
14.06
12.87
17.02
16.33
19.99
18.19
15.40
17.89
13.15
12.53
11.57
14.58
13.18
11.83
German Multiplier
120,000 €
626 €
428 €
609 €
1,200,000 €
380,000 €
493 €
814 €
780 €
480 €
712 €
669 €
536 €
810 €
550 €
673 €
503 €
601 €
473 €
360 €
601 €
490 €
799 €
464 €
427 €
520 €
648 €
1,005 €
1,462 €
1,328 €
928 €
1,041 €
1,099 €
1,117 €
693 €
670 €
1,177 €
1,289 €
1,243 €
1,801 €
1,576 €
2,162 €
712 €
662 €
700 €
630 €
733 €
783 €
Market Value per
sq m
2,300,000 €
19,700,000 €
2,400,000 €
330,000 €
9,700,000 €
11,900,000 €
4,200,000 €
9,500,000 €
1,900,000 €
6,600,000 €
170,000 €
720,000 €
2,400,000 €
1,900,000 €
1,100,000 €
87,000 €
7,900,000 €
1,000,000 €
310,000 €
1,500,000 €
17,500,000 €
41,300,000 €
21,900,000 €
13,600,000 €
150,000 €
540,000 €
4,300,000 €
3,800,000 €
34,100,000 €
1,900,000 €
18,300,000 €
11,100,000 €
20,100,000 €
14,400,000 €
12,400,000 €
14,500,000 €
2,900,000 €
1,600,000 €
38,800,000 €
350,000 €
2,600,000 €
6,800,000 €
Market Value
4,390 €
25,910 €
33,050 €
132,560 €
1,542,106 €
17,400 €
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
139,180 €
0.00%
0.00%
0.00%
0.00%
624,850 €
672,260 €
171,455 €
371,820 €
56,810 €
0.00%
0.00%
71,500 €
0.00%
0.00%
0.00%
0.00%
0.00%
4.00%
4,040 €
13,360 €
844,830 €
1,040,466 €
10,290 €
1,320 €
391,400 €
0.00%
0.00%
237,176 €
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
63,810 €
426,740 €
218,855 €
1,267,458 €
164,060 €
74,660 €
18,313 €
9,451 €
113,368 €
95,838 €
2,720,427 €
235,639 €
0.00%
0.00%
503,767 €
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Blended
structural
vacancy
502,742 €
605,287 €
76,130 €
17,563 €
78,280 €
147,050 €
179,180 €
2,318,090 €
37,545 €
164,380 €
113,150 €
Total Capex (excl.
refurbishment &
ongoing
maintenance)
1
©DTZ
Emden
Emden
Gehrden
Göttingen
Hannover
Hannover
055
056
057
058
059
060
Berlin
Berlin
Berlin
Berlin
Berlin
Berlin
Berlin
Berlin
Berlin
085
086
087
088
089
090
091
092
Berlin
081
084
Berlin
080
Berlin
Berlin
079
Berlin
Ulm
078
082
Köln
077
083
Kleve
072
076
Verden
071
Karlsruhe
Verden
070
075
Verden
069
Verden
Uslar
068
Dietzenbach
Seelze
067
074
Ronnenberg
066
073
Peine
Peine
065
Leer
Emden
054
064
Emden
053
Leer
Emden
052
063
Emden
051
Helmstedt
Celle
050
Karlsruhe
Celle
049
062
Braunschweig
048
061
City
ID
Valuation Overview
Valuation Date: 31 May 2013
1967
Breite Straße 14a
Müllenhoffstr. 1, 1a
Maaßenstr. 14; Winterfeldtstr. 42
Luxemburger Straße 34
Krokusstraße 87a, 89-93 (uneven)
Kantstraße 55
Groß-Ziethener Chaussee 16
Buddestraße 16-18 (even); Gorkistraße 26
Frankfurter Allee 93
Frankfurter Allee 80
Frankfurter Allee 102; Jessnerstr. 1/3
1900
1906
1918
1992
1910
1991
1908
1912
1900
1897
1900
1956
Bayrischer Platz 8; Meraner Str.1; Innsbrucker Str.1
Breite Straße 56 -58 (even)
1954
1973
1973
1980
1970
1973
1972
1969
1970
1973
1976
1959
1995
1972
1973
1958
1972
1970
1965
1965
1966
1973
1968
1968
1958
Baumschulenstr.90/91 ; Kiefholzstr .258
Reutlinger Straße 61
Ostlandstraße 34
Spoyufer 2
Elsa-Brändström-Strasse 9-11
Talstrasse 12-20
Hoppenkamp 4, 50-54, Salzstraße 50-76
Moorstraße 22-46
Moorstraße 13, 17
Hoppenkamp 2, 10-14, Schwarzer Berg 1-9, 10-12
Küstriner Straße 7-11, 18-22
Hannoversche Straße 53, 53a, 53b, 55
Mühleneck 3, 5, 9, 11, 15, 19, 21, 23, 39, 41
Schreiberhauer Straße 1, 3
Badestraße 1
Unter den Eichen 1, 3, 5a, 5b, 6-26
Brahmsstraße 2-16
Welfenstrasse 30
Hallesche Straße 30
Westermannweg 4, 6
Große Pranke 1
Rodeweg 17-21, Elmweg 2-10, 17
Steintorfeld 3, 7, 8
Wilhelm-Hauff-Straße 1-11, 4-16
Wielandstraße 8-12
1968
1969
Schwabenstraße 5, 9, 11, 15, 17, 21
1968
Eduard-Mörike Straße 2-26, 9-11, Friedrich-Rückert
1968
1977
1976
1970
Year of construction
(estimated)
Geibelstrasse 56-68, Gustav-Freytag-Strasse 1-11
Eduard-Mörike-Straße 5
Herzog-Ernst-Ring 7-13, 23-27
Herzog-Ernst-Ring 29-35
Hagenring 38
Street
partly
partly
not
partly
partly
full
partly
partly
partly
partly
partly
partly
partly
partly
partly
not
not
partly
partly
partly
partly
partly
partly
partly
not
not
partly
partly
partly
partly
partly
partly
not
not
not
partly
partly
partly
partly
partly
not
partly
partly
partly
not
Status of
refurbishment
(estimated)
1,632
3,602
1,967
2,099
3,031
844
1,813
1,148
1,347
1,528
1,331
1,295
1,793
2,104
9,032
15,078
3,494
6,525
12,002
7,706
6,851
600
10,129
2,153
1,050
8,778
2,340
731
1,784
3,173
5,385
42
5,360
3,661
5,191
1,914
5,854
435
1,396
17,020
6,275
1,371
8,267
2,209
194
Total lettable area
in sq m
1,492
2,163
1,735
312
2,775
125
1,476
854
1,187
981
1,175
931
1,321
1,246
9,032
10,006
2,531
6,525
11,942
7,671
6,851
600
10,089
2,153
1,050
8,778
2,340
731
1,784
3,173
5,385
42
5,360
3,459
5,166
1,914
5,854
435
1,396
16,922
6,275
1,371
8,221
2,209
194
140
1,439
232
1,787
255
719
337
295
160
547
156
364
472
858
0
5,072
963
0
60
35
0
0
40
0
0
0
0
0
0
0
0
0
0
202
25
0
0
0
0
98
0
0
47
0
0
0
577
0
124
264
0
141
75
0
186
54
39
248
186
129
5,368
792
926
77
1,582
1,064
67
1,903
898
142
421
568
0
223
334
272
0
336
110
70
516
647
0
0
2,520
1,309
66
888
509
0
Residential area in Commercial area in
Vacant Area in sq m
sq m
sq m
107,099 €
144,720 €
100,604 €
19,115 €
182,153 €
9,000 €
87,478 €
54,002 €
75,524 €
56,591 €
85,820 €
66,442 €
118,719 €
72,525 €
646,985 €
751,293 €
117,190 €
374,554 €
899,953 €
333,879 €
335,209 €
31,718 €
434,711 €
51,774 €
57,484 €
567,365 €
102,786 €
42,327 €
80,315 €
146,454 €
454,034 €
2,880 €
340,920 €
228,892 €
297,473 €
86,402 €
268,071 €
22,895 €
77,830 €
724,190 €
237,438 €
65,014 €
446,950 €
98,637 €
9,721 €
€
€
€
€
€
€
€
€
€
€
€
12 €
€
€
€
€
€
€
€
€
€
€
€
€
41,138 €
366,875 €
65,350 €
184,968 €
105,066 €
104,528 €
100,732 €
41,907 €
39,723 €
162,564 €
80,120 €
155,400 €
95,095 €
189,598 €
-
85,953 €
43,927 €
-
12 €
936 €
-
-
-
-
-
-
-
-
-
-
-
-
10,609 €
960 €
-
-
-
-
504 €
-
-
-
-
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
-
-
-
-
-
€
€
€
€
€
600 €
750 €
835 €
-
550 €
-
-
14,988 €
-
-
501,522 €
-
47,525 €
-
-
-
-
-
-
-
-
-
-
-
-
5,854 €
-
2,845 €
4,431 €
-
-
180 €
-
-
-
-
-
6,313 €
-
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
9,721 €
€
€
€
€
€
€
-
-
-
€
€
€
7,648 €
720 €
600 €
-
-
-
1,574 €
-
5,142 €
17,548 €
-
-
29,434 €
148,238 €
511,594 €
165,953 €
211,731 €
287,938 €
114,728 €
188,960 €
96,744 €
115,247 €
221,278 €
165,940 €
226,984 €
246,349 €
262,124 €
646,985 €
1,368,202 €
161,117 €
-
€
427,011 €
926,977 €
8.81 €
15.09 €
8.39 €
8.13 €
9.39 €
11.69 €
8.81 €
9.61 €
8.98 €
13.45 €
10.58 €
13.82 €
10.68 €
9.67 €
6.50 €
7.50 €
5.75 €
5.75 €
6.75 €
5.24 €
5.00 €
337,916 €
334,815 €
5.00 €
5.24 €
3.75 €
5.25 €
6.25 €
5.00 €
5.00 €
4.75 €
4.75 €
9.00 €
5.75 €
6.25 €
6.00 €
5.24 €
5.00 €
4.75 €
5.00 €
5.25 €
4.74 €
4.75 €
4.50 €
5.24 €
5.25 €
5.00 €
Blended Market
Income
per sq m
39,940 €
434,723 €
51,774 €
57,484 €
567,365 €
102,786 €
42,327 €
80,315 €
146,454 €
474,567 €
2,880 €
352,914 €
257,005 €
298,433 €
91,838 €
268,251 €
22,895 €
77,830 €
726,837 €
237,438 €
65,014 €
459,659 €
98,637 €
4,932 €
27,012 €
-
2,707 €
8,221 €
-
-
-
-
-
-
-
-
14,679 €
-
9,149 €
13,073 €
-
5,436 €
-
-
-
2,143 €
-
-
6,396 €
-
-
Current Residential Current Commercial
Current Income p.a.
Additional income
Parking Income p.a.
Income
Income
(incl. parking/
p.a.
p.a.
p.a.
others)
20130829_DTZ_Valuation Overview Quokka_F.xlsx
7.57 €
14.09 €
7.03 €
8.61 €
8.65 €
11.21 €
9.38 €
7.44 €
7.13 €
13.61 €
10.83 €
14.71 €
11.53 €
11.39 €
6.06 €
7.19 €
4.97 €
5.58 €
6.29 €
4.56 €
4.83 €
4.95 €
4.40 €
3.44 €
5.28 €
5.66 €
4.83 €
4.82 €
4.29 €
4.30 €
7.40 €
5.66 €
5.65 €
5.62 €
4.86 €
5.15 €
4.29 €
4.39 €
4.65 €
4.16 €
3.98 €
4.15 €
5.05 €
4.84 €
4.19 €
Blended Current
Income
per sq m let
148,238 €
635,808 €
165,953 €
224,379 €
311,713 €
114,728 €
199,535 €
110,177 €
115,247 €
236,912 €
171,124 €
230,450 €
293,101 €
287,072 €
657,031 €
1,529,496 €
207,103 €
490,922 €
933,254 €
434,480 €
401,761 €
43,937 €
554,590 €
16.19
17.98
652,437 €
172,679 €
14.46
13.22
16.67
13.95
12.70
16.54
15.62
14.91
14.46
12.78
14.61
11.44
11.75
14.47
14.28
13.11
13.27
11.35
9.47
6.26
11.50
7.15
10.44
14.45
12.65
198,080 €
212,386 €
342,371 €
119,550 €
192,429 €
133,260 €
145,227 €
248,670 €
168,963 €
220,011 €
262,448 €
244,156 €
704,486 €
1,566,145 €
232,754 €
502,669 €
999,182 €
484,564 €
413,748 €
44,242 €
637,044 €
78,008 €
66,122 €
66,434 €
73,281 €
658,353 €
140,421 €
9.92
12.20
101,670 €
43,876 €
11.61
15.17
11.11
13.03
11.67
10.39
11.98
11.18
10.05
10.41
12.66
11.79
9.69
10.66
12.17
11.32
German Multiplier
180,833 €
602,102 €
2,927 €
413,994 €
281,060 €
326,335 €
120,249 €
333,841 €
26,081 €
87,936 €
970,217 €
357,695 €
74,008 €
532,294 €
139,141 €
11,610 €
Market Rent p.a.
(incl. Parking/
others)
598,934 €
136,839 €
42,327 €
93,037 €
165,478 €
503,977 €
2,880 €
378,077 €
264,953 €
302,872 €
122,808 €
305,109 €
22,895 €
77,830 €
870,490 €
312,060 €
68,574 €
514,314 €
130,702 €
9,721 €
Potential Income
p.a.
(incl. Parking/
others)
2,400,000 €
9,200,000 €
2,400,000 €
2,800,000 €
1,470 €
2,554 €
1,220 €
1,334 €
1,584 €
1,896 €
1,600,000 €
4,800,000 €
1,324 €
1,393 €
1,336 €
2,160 €
1,803 €
2,239 €
2,008 €
1,426 €
841 €
1,313 €
658 €
858 €
1,025 €
493 €
467 €
416 €
494 €
172 €
572 €
934 €
555 €
574 €
549 €
536 €
1,337 €
2,400,000 €
1,600,000 €
1,800,000 €
3,300,000 €
2,400,000 €
2,900,000 €
3,600,000 €
3,000,000 €
7,600,000 €
19,800,000 €
2,300,000 €
5,600,000 €
12,300,000 €
3,800,000 €
3,200,000 €
250,000 €
5,000,000 €
370,000 €
600,000 €
8,200,000 €
1,300,000 €
420,000 €
980,000 €
1,700,000 €
7,200,000 €
754 €
858 €
4,600,000 €
32,000 €
820 €
597 €
575 €
512 €
529 €
580 €
541 €
446 €
460 €
593 €
543 €
568 €
Market Value per
sq m
3,000,000 €
3,100,000 €
1,100,000 €
3,000,000 €
230,000 €
810,000 €
9,200,000 €
2,800,000 €
630,000 €
4,900,000 €
1,200,000 €
110,000 €
Market Value
4,040 €
78,000 €
55,020 €
4,960 €
2,020 €
2,020 €
85,040 €
123,055 €
190,065 €
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
8,860 €
0.00%
0.00%
0.00%
0.00%
23.50%
3.50%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
19.50%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
17,930 €
16,890 €
66,570 €
77,990 €
1,591,677 €
361,866 €
92,080 €
769,676 €
1,004,867 €
289,610 €
278,860 €
34,740 €
459,310 €
93,170 €
46,080 €
107,680 €
6,840 €
4,040 €
10,020 €
39,160 €
539,173 €
620 €
89,673 €
156,370 €
209,185 €
29,680 €
0.00%
0.00%
298,340 €
0.00%
0.00%
0.00%
13,740 €
51,220 €
619,253 €
606,810 €
0.00%
0.00%
84,260 €
0.00%
0.00%
Blended
structural
vacancy
457,690 €
76,980 €
2,370 €
Total Capex (excl.
refurbishment &
ongoing
maintenance)
2
©DTZ
Dortmund
Düren
Essen
Falkensee
Kleinmachnow
Kleinmachnow
Krefeld
Oberhausen
Schwedt/ Oder
117
118
119
120
121
122
123
Chemnitz
114
115
Berlin
113
116
Berlin
112
Berlin
108
Berlin
Berlin
107
111
Berlin
106
Berlin
Berlin
105
Berlin
Berlin
104
110
Berlin
103
109
Augsburg
Berlin
Berlin
100
102
Berlin
099
101
Berlin
096
Berlin
Berlin
095
098
Berlin
094
097
Berlin
Berlin
093
City
ID
Valuation Overview
Valuation Date: 31 May 2013
Berliner Allee 17 a-d
Baustraße 11
Nassauerring 11
Zehlendorfer Damm 121
Zehlendorfer Damm 120
Seegefelder Str. 86, 88
Hubertstraße 279
Miesheimer Weg 1, 2, 3
Reinoldistr. 17-19
Bahnhofstraße 5,7,9
Wollankstraße 67
1997
1967
1920
1937
1931
1930
1918
1961
1961
1900
1912
1989
1977
Schönwalder Straße 17a; Reinickendorfer Straße 9
Tempelhofer Ufer 1b
1992
1976
1975
1980
1910
1962
1900
1982
1887
1955
1906
1901
1900
1990
1903
1989
1911
1914
Year of construction
(estimated)
Reichenberger Str. 119
Möckernstraße 116
Judith-Auer-Straße 6
Johannisthaler Chaussee 261
Herrfurthstraße 20, 20a
Großbeerenstraße 45, 47
Donaustraße 130
Brunnenstraße 122
Berliner Allee 207
Wertachstraße 21
Xantener Straße 8
Wichertstraße 7
Warschauer Str. 25; Kopernikusstr. 6
Teltower Damm 52, 54
Schönhauser Allee 86; Erich-Weinert-Str. 2
Rheinstraße 14
Prenzlauer Allee 178; Kanzowstr. 17, 18
Potsdamer Straße 118
Street
full
partly
partly
partly
full
full
partly
partly
partly
partly
partly
partly
partly
partly
partly
partly
partly
partly
not
partly
partly
partly
partly
partly
not
partly
full
partly
partly
partly
partly
Status of
refurbishment
(estimated)
414
613,953
673,171
1,955
4,930
188
209
720
877
12,996
603
0
740
1,942
1,494
2,085
1,099
0
170
2,043
711
1,798
1,056
442
1,012
2,149
1,178
2,202
1,415
1,868
755
2,335
1,556
59,218
1,709
0
0
373
573
0
0
0
3,710
4,444
150
127
229
294
0
1,588
678
0
0
365
302
140
356
1,775
169
516
370
400
1,184
419
475
58,319
255
220
1,066
218
0
0
200
1,906
1,202
1,834
80
46
293
144
159
1,369
0
160
58
42
0
74
285
331
46
296
232
103
60
144
240
Residential area in Commercial area in
Vacant Area in sq m
sq m
sq m
2,123
1,955
4,930
561
782
720
877
12,996
4,313
4,444
890
2,069
1,723
2,379
1,099
1,588
848
2,043
711
2,163
1,358
582
1,368
3,923
1,347
2,718
1,784
2,268
1,939
2,754
2,030
Total lettable area
in sq m
€
€
35,985,753 €
22,979 €
105,066 €
228,474 €
9,882 €
9,273 €
51,570 €
35,930 €
558,084 €
55,608 €
-
36,828 €
159,548 €
77,090 €
156,281 €
63,914 €
-
11,157 €
125,822 €
38,563 €
116,471 €
66,380 €
28,636 €
60,799 €
147,180 €
75,089 €
89,823 €
100,627 €
102,010 €
51,276 €
137,786 €
74,364 €
€
€
€
€
€
€
€
€
6,154,482 €
152,923 €
-
-
31,946 €
106,178 €
-
-
-
274,052 €
195,856 €
18,381 €
23,034 €
32,607 €
40,107 €
-
36,607 €
95,518 €
-
-
28,156 €
54,131 €
6,000 €
47,457 €
222,723 €
22,251 €
98,796 €
80,031 €
143,317 €
216,000 €
156,147 €
105,680 €
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
741,282 €
-
-
300 €
-
-
-
-
38,745 €
-
11,667 €
-
-
-
-
1,400 €
-
1,744 €
-
-
-
-
2,026 €
-
-
-
-
-
-
-
8,000 €
26,400 €
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
886,470 €
-
11,223 €
7,869 €
-
-
432 €
-
17,530 €
10,838 €
39,886 €
-
1,472 €
3,688 €
-
-
2,825 €
5,182 €
-
4,760 €
-
-
-
727 €
-
-
-
16,541 €
-
2,866 €
-
-
43,767,986 €
175,901 €
116,289 €
236,642 €
41,828 €
115,451 €
52,002 €
35,930 €
614,359 €
340,498 €
247,409 €
55,209 €
184,054 €
113,385 €
196,388 €
65,314 €
39,432 €
113,600 €
125,822 €
43,324 €
144,627 €
120,511 €
36,662 €
108,982 €
369,903 €
97,341 €
188,618 €
197,199 €
245,327 €
270,142 €
301,933 €
206,444 €
Current Residential Current Commercial
Current Income p.a.
Additional income
Parking Income p.a.
Income
Income
(incl. parking/
p.a.
p.a.
p.a.
others)
20130829_DTZ_Valuation Overview Quokka_F.xlsx
7.85 €
5.04 €
4.93 €
10.17 €
12.30 €
5.97 €
4.42 €
4.19 €
8.83 €
6.25 €
5.69 €
7.52 €
6.39 €
7.32 €
5.67 €
13.93 €
10.48 €
5.57 €
4.92 €
5.68 €
7.40 €
5.69 €
8.33 €
8.58 €
6.24 €
6.49 €
9.70 €
9.44 €
11.86 €
9.39 €
8.38 €
Blended Current
Income
per sq m let
7.61 €
5.25 €
5.25 €
10.32 €
10.76 €
6.50 €
5.00 €
4.75 €
8.39 €
5.00 €
7.09 €
8.43 €
7.20 €
7.81 €
6.23 €
5.00 €
9.10 €
7.00 €
5.25 €
7.42 €
8.00 €
6.00 €
8.04 €
10.31 €
7.81 €
8.92 €
9.65 €
12.76 €
12.08 €
10.59 €
8.69 €
Blended Market
Income
per sq m
47,508,122 €
198,460 €
130,130 €
271,166 €
74,528 €
115,451 €
52,002 €
47,909 €
685,962 €
438,484 €
290,773 €
61,473 €
188,497 €
134,477 €
209,392 €
54,221,725 €
13.79
13.08
13.76
134,401 €
193,845 €
12.25
17.45
10.39
13.65
14.75
10.09
14.68
7.68
16.66
15.76
17.64
14.77
15.31
9.13
11.44
17.49
286,168 €
69,479 €
100,988 €
56,587 €
52,640 €
760,009 €
420,755 €
251,516 €
75,660 €
210,728 €
152,530 €
222,893 €
83,552 €
70,948 €
94,418 €
77,181 €
99,554 €
171,631 €
12.70
16.59
192,437 €
49,578 €
14.94
14.46
13.76
16.49
16.44
19.09
15.72
17.53
14.07
15.24
15.02
German Multiplier
130,379 €
43,900 €
132,695 €
485,355 €
126,256 €
290,986 €
223,122 €
347,273 €
283,892 €
357,806 €
238,070 €
Market Rent p.a.
(incl. Parking/
others)
113,600 €
139,243 €
47,007 €
148,407 €
120,511 €
41,990 €
135,484 €
408,496 €
101,514 €
215,222 €
220,190 €
277,225 €
280,942 €
315,757 €
223,732 €
Potential Income
p.a.
(incl. Parking/
others)
603,419,000 €
2,300,000 €
1,600,000 €
2,900,000 €
730,000 €
896 €
1,084 €
818 €
588 €
1,301 €
1,535 €
986 €
710,000 €
1,200,000 €
604 €
477 €
1,159 €
428 €
1,034 €
1,402 €
1,161 €
1,219 €
910 €
227 €
1,532 €
1,077 €
773 €
1,110 €
1,326 €
911 €
530,000 €
6,200,000 €
5,000,000 €
1,900,000 €
920,000 €
2,900,000 €
2,000,000 €
2,900,000 €
1,000,000 €
360,000 €
1,300,000 €
2,200,000 €
550,000 €
2,400,000 €
1,800,000 €
530,000 €
1,097 €
1,555 €
6,100,000 €
1,500,000 €
1,188 €
1,325 €
1,737 €
1,896 €
1,960 €
1,670 €
1,527 €
Market Value per
sq m
1,600,000 €
3,600,000 €
3,100,000 €
4,300,000 €
3,800,000 €
4,600,000 €
3,100,000 €
Market Value
27,264,365 €
3,880 €
1,350 €
31,590 €
78,320 €
30,570 €
4,470 €
19,140 €
206,740 €
17,880 €
0.00%
0.00%
10.50%
0.00%
0.00%
0.00%
0.00%
5.00%
5.50%
0.00%
25.00%
10,610 €
0.00%
0.00%
0.00%
0.00%
28.50%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
41,590 €
2,720 €
33,740 €
3,070 €
37,550 €
6,970 €
12,590 €
36,240 €
63,770 €
19,420 €
22,300 €
24,320 €
65,230 €
216,370 €
7,270 €
145,040 €
74,386 €
0.00%
0.00%
164,490 €
0.00%
0.00%
Blended
structural
vacancy
35,120 €
125,005 €
7,170 €
Total Capex (excl.
refurbishment &
ongoing
maintenance)
3
Valuation and Report | Deutsche Bank AG
London Branch as Facility Agent
C. Template Reports
© DTZ | 20130829_DTZ_Report_Quokka Portfolio_F
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1960
n/a
32,982 sq m
Freehold
No
8,687 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
575,022 €
575,022 €
610,435 €
152,606 €
26.54%
Net Operating Income
Net Cash Flow
422,416 €
378,980 €
SWOT-Analysis
Strengths
Weaknesses
Fully let; Sought-after residential location;
Calm residential area close to the Kieler Förde (approx. 1 km);
Some of the flats on the ground floor have a terrace;
Good local infrastructure (public transport, medical practices,
supermarket);
Adequate number of parking spaces.
Only basic tenant structure;
Only 6 units are fitted with balconies.
Opportunities
Threats
Good demographics;
Sustainable high occupancy rate.
Some of the apartments beeing vacated are likely in need of
refurbishment prior to re-letting.
Property and Location Rating
Property
3
1 = very good, 6 = poor
2
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
11.8
5.77%
7.30%
498,286 €
Potential rental income
11.8
5.77%
per sq m
Market Value
Market rental income
11.1
6.25%
783 €
6,800,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
2
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The properties are located in the district NeumühlenDietrichsdorf.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
1
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
2
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
4
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
Serious defects noted
2
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
6
3
162
n/a
80
Year of construction
1960
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
2
1 Thermally insulated
2 No insulation
2
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
Partly developed attics. Dietrichsdorfer Höhe 13-24 are
without WDSV (composite heat insulation system). Only
6 balconies and 12 terraces.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
-
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
3
1
Lifts
1 Yes
2 No
2
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
We were only able to inspect a small sample of residential units, the comments stated above are according to the information provided
during the inspection.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
Tenant structure
2
Fit-out bathroom
1
Floor covering
4
1
2
3
4
Very good
Good
Fair
Weak
3
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
4
None
Tiled
PVC
Wood, parquet or laminate flooring
The inspected residential units were in a good condition. Generally, we assume that the accommodations are in a similar state of repair and
minor refurbishment is required in order to re-let the apartments.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
Cellar
1 Moisture penetration
2 Cracks in masonry
3 Infestation with vermin
yes
no
no
Entrance and
common areas
1 Vandalised/damaged staircases
Damaged entryways (broken letterboxes,
2
damaged doorbells etc.)
no
no
no
no
no
no
no
no
no
-
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
3
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
3
Number of units
inspected
Residential
Commercial
2
0
The external impression of the building quality is good and the internal is fair.
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The properties are in a good condition and all units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The properties are in a good condition and all units are
currently let. The demand for comparable properties is
good. We assume that the saleability is good and only
minor promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
162
0
80
0
242
Total lettable area
8,687 sq m
0 sq m
0 sq m
0 sq m
8,687 sq m
Units let
162
0
75
0
237
Area let
8,687 sq m
0 sq m
0 sq m
0 sq m
8,687 sq m
Vacant units
0
0
5
0
5
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
6.25%
0.00%
2.07%
Current rent sq m/month
5.16 €
0.00 €
0.00 €
0.00 €
5.52 €
Current rent unit/month
Current rent p.a.
276.72 €
0.00 €
41.19 €
0.00 €
202.19 €
537,947 €
0€
37,075 €
0€
575,022 €
Market rent sq m/month
5.50 €
0.00 €
0.00 €
0.00 €
5.86 €
294.94 €
0.00 €
38.62 €
0.00 €
210.21 €
573,360 €
0€
37,075 €
0€
610,435 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Parking
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Cash Flow Analysis
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
Total Operating Expenses
% 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
537,947
0
537,947
551,404
-14,578
536,826
564,270
-14,826
549,444
577,436
-15,078
562,358
590,910
-15,334
575,577
604,700
-15,595
589,105
618,812
-15,860
602,952
633,253
-16,129
617,124
648,033
-16,403
631,629
663,158
-16,682
646,476
678,637
-16,966
661,671
37,075
0
0
0
37,075
38,543
0
0
0
38,543
40,050
0
0
0
40,050
41,598
0
0
0
41,598
42,305
0
0
0
42,305
43,024
0
0
0
43,024
43,756
0
0
0
43,756
44,500
0
0
0
44,500
45,256
0
0
0
45,256
46,025
0
0
0
46,025
46,808
0
0
0
46,808
575,022
575,369
0.1%
589,495
2.5%
603,956
2.5%
617,882
2.3%
632,130
2.3%
646,708
2.3%
661,624
2.3%
676,885
2.3%
692,501
2.3%
708,479
2.3%
-38,001
-11,500
-28,751
-3,200
0
-71,153
0
-38,648
-11,507
-29,240
-3,254
-2,650
-72,362
0
-39,305
-11,790
-29,737
-3,310
-2,696
-73,592
0
-39,973
-12,079
-30,242
-3,366
-2,741
-74,843
0
-40,652
-12,358
-30,757
-3,423
-2,788
-76,116
0
-41,343
-12,643
-31,279
-3,481
-2,835
-77,410
0
-42,046
-12,934
-31,811
-3,541
-2,884
-78,726
0
-42,761
-13,232
-32,352
-3,601
-2,933
-80,064
0
-43,488
-13,538
-32,902
-3,662
-2,982
-81,425
0
-44,227
-13,850
-33,461
-3,724
-3,033
-82,809
0
-44,979
-14,170
-34,030
-3,788
-3,085
-84,217
0
-152,606 -157,662 -160,429 -163,245 -166,093 -168,992 -171,941 -174,943 -177,997 -181,105 -184,268
28.4%
29.4%
29.2%
29.0%
28.9%
28.7%
28.5%
28.3%
28.2%
28.0%
27.8%
Net Operating Income
422,416
417,707
429,066
440,711
451,788
463,138
474,766
486,681
498,888
511,396
524,210
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-43,436
0
0
-44,175
0
-97,988
-44,926
0
0
-45,690
0
0
-46,466
0
0
-47,256
0
0
-48,060
0
0
-48,877
0
0
-49,707
0
0
-50,552
0
0
-51,412
0
0
Total Leasing and Capital Costs
-43,436 -142,163
-44,926
-45,690
-46,466
-47,256
-48,060
-48,877
-49,707
-50,552
-51,412
Net Cash Flow
% Growth
378,980
275,545
-27.3%
384,140
39.4%
395,022
2.8%
405,322
2.6%
415,881
2.6%
426,707
2.6%
437,804
2.6%
449,181
2.6%
460,843
2.6%
472,799
2.6%
5.2%
3.8%
5.2%
5.4%
5.5%
5.7%
5.8%
6.0%
6.1%
6.3%
6.5%
Running Net Yield
Present Cash Flow Value @7.04% Discount Rate
Present Resale Value @5.50% Cap Rate
Net Cash Flow
2,825,162 €
4,498,965 €
500,000
7.0%
450,000
Gross Value per sq m
7,324,128 €
843 €
5.0%
350,000
300,000
4.0%
250,000
3.0%
200,000
150,000
Purchaser's Costs
7.3%
2.0%
Running Yield in %
Gross Value
Net Cash Flow in €
6.0%
400,000
100,000
1.0%
50,000
Net Value
6,825,841 €
0.0%
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
6,800,000 €
Net Operating Income
Net Initial Yield
Direct Cap Rate
11.8 x
11.8 x
5.8%
5.2%
600,000
35.0%
30.0%
500,000
25.0%
400,000
20.0%
300,000
15.0%
200,000
10.0%
100,000
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
783 €
Net Operating Income in €
Market Value per sq m
5.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Site Information
Site area
Thereof surplus land
32,982 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 21/01/2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 23/01/2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
n/a
Development plan dated
n/a
Designated use
Residential area (Zoning Plan)
Site coverage ratio (GRZ)
n/a
Plot ratio (GFZ)
n/a
Additional comments
In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the German Building
and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
Kiel
60897
001
2/1, 2/4
Goniatit Grundstücksverwaltungsgesellschaft mbH in Mainz
There are no entries in section II.
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then.
Page 7
SHORT REPORT
Dietrichsdorfer Höhe 1-24
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Dietrichsdorfer Höhe 1-24
24149
Kiel
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Rental and Investment Evidence
Rental Table
City
Kiel (> 45 sq m, < 60 sq m)
Date
01.04.2012
Minimum
Average
4.36 €/sq m
4.86 €/sq m
Maximum
5.32 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Dietrichs. Höhe 22 (Res.)
01.04.2013
51 sq m
5.60 €/sq m
Dietrichsd. Höhe 1 (Res.)
01.03.2013
61 sq m
5.31 €/sq m
Dietrichsd. Höhe 7 (Res.)
01.03.2013
51 sq m
5.60 €/sq m
Dietrichs. Höhe 24 (Res.)
01.03.2013
50 sq m
5.61 €/sq m
Dietrichs. Höhe 12 (Res.)
01.02.2013
50 sq m
5.61 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
24148 Kiel, Wellingdorf
10.06.2013
53 sq m
5.75 €/sq m 2-room apartment, 2nd floor, balcony, built 1958
24149 Kiel, Neum.-Dietr.
10.06.2013
64 sq m
5.73 €/sq m 2-room apartment, balcony, built 1911
24149 Kiel, Neum.-Dietr.
10.06.2013
41 sq m
5.54 €/sq m 2-room apartment, 1st floor, built 1937
24148 Kiel, Wellingdorf
10.06.2013
70 sq m
5.30 €/sq m 4-room-apartment, ground floor, balcony, built 1964
24149 Kiel, Neum.-Dietr.
10.06.2013
61 sq m
5.25 €/sq m 2-room apartment, 1st floor, built 1950
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Wikingerstraße, Kiel
07.12.2010
880 sq m
761 € Mixed-use building, 15 residential units, built 1903, freehold
Gazellenstraße, Kiel
09.12.2010
440 sq m
693 € 4-st. ap. building, built 1906, partly let, multiple 11.3, freehold
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
24143 Kiel
07.06.2013
2,306 sq m
850 € Multi-family house, fully let, good condition, built 1962
24149 Kiel
08.06.2013
954 sq m
922 € Multi-family house, built 1950, refurbished
24143 Kiel
09.06.2013
753 sq m
770 € Mixed-used building, built 1913, good condition, multiple 12.8
24148 Kiel
09.06.2013
335 sq m
24159 Kiel
07.06.2013
2,409 sq m
806 € Multi-family house, built 1957, multiple 12.0
1,287 € Mixed used building, fully refurbished and let, built 1960
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Dietrichsdorfer Höhe 1-24
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
001
24050 - Goniatit - Kiel - Dietrichsdorfer Höhe
Goniatit
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1911
n/a
4,854 sq m
Freehold
Yes
3,545 sq m
6.56%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
197,292 €
212,635 €
235,617 €
62,877 €
31.87%
Net Operating Income
Net Cash Flow
134,415 €
117,852 €
SWOT-Analysis
Strengths
Weaknesses
Located in a calm residential area close to the Kieler Förde (approx.
500 metres);
Balconies to the rear;
Good public transport.
Only basic tenant structure;
Let below market level ;
Properties are partly in need of refurbishment (e.g. facades,
entrances, staircases).
Opportunities
Threats
Good demographics;
Rental growth after expiry of rent restrictions;
Leasing up of vacant units.
Some of the apartments beeing vacated are likely in need of
refurbishment prior to re-letting.
Property and Location Rating
Property
3
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
13.2
4.87%
7.90%
202,092 €
Potential rental income
12.2
5.43%
per sq m
Market Value
Market rental income
11.0
6.26%
733 €
2,600,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The properties are located in the district NeumühlenDietrichsdorf.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
1
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
Serious defects noted
3
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
5
4
62
n/a
27
Year of construction
1911
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
n/a
1 Thermally insulated
2 No insulation
n/a
Basement level
1 Yes
2 No
n/a
1 Thermally insulated
2 No insulation
n/a
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
n/a
Additional
comments
The facades are partly of face brick and the roofs are
mainly flat with curtain tiles. Only "Tiefe Allee" has a
pitched roof.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
Warm water supply 1 Central
2 Decentral
n/a
n/a
Lifts
1 Yes
2 No
n/a
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
n/a
We have not had access to the building and were thus not able to inspect it internally. The properties "Quittenstarße 9 and 11" are not
fitted with balconies.
The front of Tiefe Alle 21, Eckberg 16 and Geldbeutel 1 as well as the rear of Quittenstraße 9 and 11 has a WDSV (composite heat insulation
system).
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
1
2
3
4
Very good
Good
Fair
Weak
n/a
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
-
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
3
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
2
Number of units
inspected
Residential
Commercial
0
0
We have not had accompanied access to the building and were thus not able to fully inspect it internally. We have not inspected the roof,
the staircase, accomodation, commercial units, the cellar, the heating system, the warm water supply, the electrical installations/wiring and
the water and sewage pipes.
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The properties are in fair condition and most units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The properties are in fair condition and most units are
currently let. The demand for comparable properties is
good. We assume that the saleability is good and only
minor promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
62
0
27
0
89
Total lettable area
3,545 sq m
0 sq m
0 sq m
0 sq m
3,545 sq m
Units let
59
0
11
0
70
Area let
3,313 sq m
0 sq m
0 sq m
0 sq m
3,313 sq m
Vacant units
3
0
16
0
19
Vacant area
232 sq m
0 sq m
0 sq m
0 sq m
232 sq m
Vacancy rate area
6.56%
0.00%
0.00%
0.00%
6.56%
Vacancy rate units
4.84%
0.00%
59.26%
0.00%
21.35%
Current rent sq m/month
4.92 €
0.00 €
0.00 €
0.00 €
4.96 €
Current rent unit/month
Current rent p.a.
276.34 €
0.00 €
12.42 €
0.00 €
234.87 €
195,652 €
0€
1,640 €
0€
197,292 €
Market rent sq m/month
5.50 €
0.00 €
0.00 €
0.00 €
5.54 €
314.48 €
0.00 €
5.06 €
0.00 €
220.61 €
233,977 €
0€
1,640 €
0€
235,617 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Parking
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Cash Flow Analysis
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
210,995
-15,344
195,652
216,851
-16,092
200,759
222,379
-11,208
211,171
228,165
-6,153
222,013
234,566
-6,257
228,308
241,146
-6,364
234,783
247,912
-6,472
241,440
254,869
-6,582
248,287
262,022
-6,694
255,328
269,376
-6,808
262,568
276,938
-6,923
270,014
1,640
0
0
0
1,640
2,477
0
0
0
2,477
3,341
0
0
0
3,341
4,234
0
0
0
4,234
4,306
0
0
0
4,306
4,380
0
0
0
4,380
4,454
0
0
0
4,454
4,530
0
0
0
4,530
4,607
0
0
0
4,607
4,685
0
0
0
4,685
4,765
0
0
0
4,765
197,292
203,236
3.0%
214,512
5.5%
226,247
5.5%
232,615
2.8%
239,162
2.8%
245,894
2.8%
252,817
2.8%
259,935
2.8%
267,253
2.8%
274,779
2.8%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-14,293
-3,946
-9,865
-1,080
-2,790
-30,904
0
-14,536
-4,065
-10,032
-1,098
-2,926
-31,429
0
-14,783
-4,290
-10,203
-1,117
-2,038
-31,964
0
-15,034
-4,525
-10,376
-1,136
-1,119
-32,507
0
-15,290
-4,652
-10,553
-1,155
-1,138
-33,060
0
-15,550
-4,783
-10,732
-1,175
-1,157
-33,622
0
-15,814
-4,918
-10,915
-1,195
-1,177
-34,193
0
-16,083
-5,056
-11,100
-1,215
-1,197
-34,775
0
-16,356
-5,199
-11,289
-1,236
-1,217
-35,366
0
-16,634
-5,345
-11,481
-1,257
-1,238
-35,967
0
-16,917
-5,496
-11,676
-1,278
-1,259
-36,578
0
Total Operating Expenses
% of Gross Revenue
-62,877
32.1%
-64,086
31.9%
-64,394
30.5%
-64,697
29.1%
-65,848
28.8%
-67,019
28.5%
-68,211
28.3%
-69,426
28.0%
-70,663
27.7%
-71,922
27.4%
-73,204
27.1%
Net Operating Income
134,415
139,149
150,118
161,550
166,767
172,143
177,683
183,391
189,272
195,332
201,575
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-16,563
0
0
-20,785
0
-16,557
-21,139
0
0
-21,498
0
0
-17,718
0
0
-18,020
0
0
-18,326
0
0
-18,638
0
0
-18,954
0
0
-19,277
0
0
-19,604
0
0
Total Leasing and Capital Costs
-16,563
-37,342
-21,139
-21,498
-17,718
-18,020
-18,326
-18,638
-18,954
-19,277
-19,604
Net Cash Flow
% Growth
117,852
101,807
-13.6%
128,979
26.7%
140,052
8.6%
149,049
6.4%
154,124
3.4%
159,357
3.4%
164,753
3.4%
170,318
3.4%
176,055
3.4%
181,970
3.4%
4.3%
3.7%
4.7%
5.1%
5.4%
5.6%
5.8%
6.0%
6.2%
6.4%
6.6%
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Running Net Yield
Present Cash Flow Value @7.04% Discount Rate
Present Resale Value @5.50% Cap Rate
Net Cash Flow
1,039,851 €
1,720,368 €
200,000
7.0%
180,000
Gross Value per sq m
2,760,219 €
779 €
5.0%
140,000
120,000
4.0%
100,000
3.0%
80,000
60,000
Purchaser's Costs
7.9%
2.0%
Running Yield in %
Gross Value
Net Cash Flow in €
6.0%
160,000
40,000
1.0%
20,000
Net Value
2,558,127 €
0.0%
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
2,600,000 €
Net Operating Income
13.2 x
12.2 x
Net Initial Yield
4.9%
Direct Cap Rate
4.3%
250,000
35.0%
30.0%
200,000
25.0%
150,000
20.0%
15.0%
100,000
10.0%
50,000
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
733 €
Net Operating Income in €
Market Value per sq m
5.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Site Information
Site area
Thereof surplus land
4,854 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 21/01/2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the letter by Landeshauptstadt Kiel, dated 25/02/2008, there are public building charges relating to
parcel 16/50 - Obligation to provide 20 parking spaces in favour of Tiefe Allee 18, 20, 22 and 5 for the attic storey
of No 18-20. We have made the Assumption that this fact has no detrimental impact on the value of the property.
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
n/a
Development plan dated
n/a
Designated use
Residential area (Zoning Plan)
Site coverage ratio (GRZ)
n/a
Plot ratio (GFZ)
n/a
Additional comments
In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the German Building
and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
Kiel
60897
001 and 004
1/16, 16/2, 16/50, 21/14,21/16,21/19,21/20,21/21, 462/2, 963/16, 966/16, 967/16, 987/16, 1250/16, 1251/16,1011/16
Goniatit Grundstücksverwaltungsgesellschaft mbH in Mainz
- Parcel 16/2: Ground easement - right of way (Wegerecht)
- Parcel 16/2, 21/19,963/16, 21/20, 966/16,21/21, 967/16, 987/16, 1250/16, 21/14, 21/16, 1251/16: Limited personal
easment (antenna- and cabel right) in favour of the KK Kabelnetz Kiel GmbH & Co. KG in Kiel, the maximum amount of
the compensation is 5,000 DM; entered 17/01/2001.
- Parcel 16/2, 1/16, 462/2, 21/19,963/16, 21/20, 966/16,21/21, 967/16, 987/16, 1250/16, 21/14, 21/16, 1251/16:
Limited personal easement (right of way and right to build and operate heat generation plants) in favour of Techem
Energy Contracting GmbH (TEC) in Eschborn, entered 15/09/2006.
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
only serve the site infrastructure and do not have a detrimental effect on the current use of the Property. However,
further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Rental and Investment Evidence
Rental Table
City
Kiel (> 45 sq m, < 60 sq m)
Date
01.04.2012
Minimum
Average
4.36 €/sq m
4.86 €/sq m
Maximum
5.32 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Tiefe Allee 21 (Residential)
01.03.2013
24 sq m
6.52 €/sq m
Eekberg 16 (Residential)
01.03.2013
81 sq m
5.23 €/sq m
Eekberg 6 (Residential)
01.02.2013
90 sq m
5.25 €/sq m
Eekberg 6 (Residential)
01.02.2013
86 sq m
5.23 €/sq m
Tiefe Allee 21 (Residential)
01.12.2012
44 sq m
5.99 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
24148 Kiel, Wellingdorf
10.06.2013
53 sq m
5.75 €/sq m 2-room apartment, 2nd floor, balcony, built 1958
24149 Kiel, Neum.-Dietr.
10.06.2013
64 sq m
5.73 €/sq m 2-room apartment, balcony, built 1911
24149 Kiel, Neum.-Dietr.
10.06.2013
41 sq m
5.54 €/sq m 2-room apartment, 1st floor, built 1937
24148 Kiel, Wellingdorf
10.06.2013
70 sq m
5.30 €/sq m 4-room-apartment, ground floor, balcony, built 1964
24149 Kiel, Neum.-Dietr.
10.06.2013
61 sq m
5.25 €/sq m 2-room apartment, 1st floor, built 1950
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Wikingerstraße, Kiel
07.12.2010
880 sq m
761 € Mixed-use building, 15 residential units, built 1903, freehold
Gazellenstraße, Kiel
09.12.2010
440 sq m
693 € 4-st. ap. building, built 1906, partly let, multiple 11.3, freehold
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
24143 Kiel
07.06.2013
2,306 sq m
850 € Multi-family house, fully let, good condition, built 1962
24149 Kiel
08.06.2013
954 sq m
922 € Multi-family house, built 1950, refurbished
24148 Kiel
09.06.2013
335 sq m
806 € Multi-family house, built 1957, multiple 12.0
24143 Kiel
09.06.2013
753 sq m
770 € Mixed-used building, built 1913, good condition, multiple 12.8
24106 Kiel
09.06.2013
383 sq m
666 € Multi-family house, built 1935, forced sale
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Eekberg 6, 8, 10, 16, 22; Geldbeutel 1; Quittenstr. 9, 11; Tiefe Allee 19, 21
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
002
24050 - Goniatit - Kiel - Eekberg
Goniatit
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Other
1900
n/a
688 sq m
Freehold
No
556 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
24,000 €
24,000 €
38,336 €
7,349 €
30.62%
Net Operating Income
Net Cash Flow
16,651 €
9,706 €
SWOT-Analysis
Strengths
Weaknesses
Fully let;
Located in a calm residential area close to the Kieler Förde (less than
500 metres);
Good public transport;
Building has balconies.
Single tenant building (Kiel - football team);
Let below market level;
Outdoor facilities are in need of refurbishment.
Opportunities
Threats
Good demographics;
Possibility to convert the space into apartments;
Rental uplift potenial.
Short remaining lease term of the single tenant until February 2014;
High modernisation and refurbishment costs prior to re-letting.
Property and Location Rating
Property
3
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
14.6
4.40%
8.50%
29,651 €
Potential rental income
14.6
4.40%
per sq m
Market Value
Market rental income
9.1
8.19%
630 €
350,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The property is located in the district NeumühlenDietrichsdorf and is fully let to the tenant Kieler football.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
1
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
6
2 Mixed-use
3
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
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
Serious defects noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
No. of parking spaces
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
1
3
n/a
n/a
n/a
Year of construction
1900
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
n/a
1 Thermally insulated
2 No insulation
n/a
Basement level
1 Yes
2 No
n/a
1 Thermally insulated
2 No insulation
n/a
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
n/a
Additional
comments
The facade is of painted brick.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
Warm water supply 1 Central
2 Decentral
n/a
n/a
Lifts
1 Yes
2 No
n/a
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
n/a
We have not had access to the building and were thus not able to inspect it internally.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
1
2
3
4
Very good
Good
Fair
Weak
n/a
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect the commercial area.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
yes
no
no
no
yes
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
-
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
n/a
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
We have not had access to the building and were thus not able to inspect internally.
Comments on Lettability and Saleability
Lettability
Additional
comments
3
1 = very good, 4 = poor
The property is in fairly poor condition and is fully let to
the tenant Kieler football. We assume that the lettability
is fair and therefore additional measures are required to
increase lettability.
Saleability
Additional
comments
3
1 = very good, 4 = poor
The property is in fairly poor condition and is fully let to
the tenant Kieler football. The demand for comparable
properties is fair. We assume that the saleability is fair
and promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
0
1
0
0
1
Total lettable area
0 sq m
556 sq m
0 sq m
0 sq m
556 sq m
Units let
0
1
0
0
1
Area let
0 sq m
556 sq m
0 sq m
0 sq m
556 sq m
Vacant units
0
0
0
0
0
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
0.00%
0.00%
0.00%
Current rent sq m/month
0.00 €
3.60 €
0.00 €
0.00 €
3.60 €
Current rent unit/month
0.00 €
2,000.00 €
0.00 €
0.00 €
2,000.00 €
0€
24,000 €
0€
0€
24,000 €
Market rent sq m/month
0.00 €
5.75 €
0.00 €
0.00 €
5.75 €
Market rent unit/month
0.00 €
3,194.70 €
0.00 €
0.00 €
3,194.70 €
0€
38,336 €
0€
0€
38,336 €
Current rent p.a.
Market rent p.a.
Lettable area by use
Current rental income by use
Residential
Residential
Commercial
Commercial
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
125.00 €/sq m
125.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
24,000
0
24,000
25,914
-975
24,939
27,570
-991
26,579
29,335
-1,008
28,327
31,215
-1,025
30,190
33,218
-1,043
32,175
35,352
-1,060
34,291
37,625
-1,078
36,546
40,046
-1,097
38,950
42,627
-1,115
41,511
45,375
-1,134
44,241
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
24,000
24,939
3.9%
26,579
6.6%
28,327
6.6%
30,190
6.6%
32,175
6.6%
34,291
6.6%
36,546
6.6%
38,950
6.6%
41,511
6.6%
44,241
6.6%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-480
-480
-1,200
0
0
-5,189
0
-488
-499
-1,220
0
-170
-5,278
0
-496
-532
-1,241
0
-172
-5,367
0
-505
-567
-1,262
0
-175
-5,459
0
-513
-604
-1,284
0
-178
-5,551
0
-522
-644
-1,306
0
-181
-5,646
0
-531
-686
-1,328
0
-184
-5,742
0
-540
-731
-1,350
0
-188
-5,839
0
-549
-779
-1,373
0
-191
-5,939
0
-559
-830
-1,397
0
-194
-6,040
0
-568
-885
-1,420
0
-197
-6,142
0
Total Operating Expenses
% of Gross Revenue
-7,349
30.6%
-7,654
30.7%
-7,809
29.4%
-7,968
28.1%
-8,131
26.9%
-8,298
25.8%
-8,471
24.7%
-8,648
23.7%
-8,831
22.7%
-9,019
21.7%
-9,213
20.8%
Net Operating Income
16,651
17,284
18,770
20,359
22,059
23,877
25,820
27,898
30,119
32,492
35,028
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-6,945
0
0
-7,063
0
-4,343
-7,183
0
-5,842
-7,305
0
-5,941
-7,429
0
-653
-7,556
0
-664
-7,684
0
0
-7,815
0
0
-7,948
0
0
-8,083
0
0
-8,220
0
0
Total Leasing and Capital Costs
-6,945
-11,406
-13,025
-13,246
-8,083
-8,220
-7,684
-7,815
-7,948
-8,083
-8,220
Net Cash Flow
% Growth
9,706
5,879
-39.4%
5,745
-2.3%
7,113
23.8%
13,976
96.5%
15,657
12.0%
18,136
15.8%
20,083
10.7%
22,171
10.4%
24,409
10.1%
26,808
9.8%
Running Net Yield
2.6%
1.6%
1.5%
1.9%
3.7%
4.1%
4.8%
5.3%
5.9%
6.4%
7.1%
Present Cash Flow Value @7.29% Discount Rate
Present Resale Value @5.75% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Cash Flow
100,781 €
277,707 €
378,488 €
681 €
8.0%
30,000
7.0%
25,000
6.0%
20,000
5.0%
4.0%
15,000
3.0%
10,000
2.0%
8.5%
5,000
Net Value
348,836 €
Running Yield in %
Total Gross Revenue
% Growth
Net Cash Flow in €
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
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
Market Value
350,000 €
Net Initial Yield
Direct Cap Rate
14.6 x
14.6 x
4.4%
2.6%
Net Operating Income in €
Multiple (current rent)
Multiple (potential rent)
630 €
40,000
35.0%
35,000
30.0%
30,000
25.0%
25,000
20.0%
20,000
15.0%
15,000
10.0%
10,000
Total Operating Expenses in %
Net Operating Income
Market Value per sq m
5.0%
5,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Site Information
Site area
Thereof surplus land
688 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 21.01.2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 23.01.2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
n/a
Development plan dated
n/a
Designated use
Residential area (Zoning Plan)
Site coverage ratio (GRZ)
n/a
Plot ratio (GFZ)
n/a
Additional comments
In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the German Building
and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
Kiel
60897
001
949/21
Goniatit Grundstücksverwaltungsgesellschaft mbH in Mainz
There are no entries in section II.
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then.
Page 7
SHORT REPORT
Groß Ebbenkamp 1
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Groß Ebbenkamp 1
24149
Kiel
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Rental and Investment Evidence
Rental Table
City
Kiel (> 60 sq m, < 80 sq m)
Date
01.04.2012
Minimum
Average
4.67 €/sq m
4.84 €/sq m
Maximum
5.03 €/sq m
Recent Lease Agreements
Address
Gross Ebbenk. 1 (Comm.)
Date
Area
01.03.2011
Monthly rent
556 sq m
3.60 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
24148 Kiel, Wellingdorf
10.06.2013
53 sq m
5.75 €/sq m 2-room apartment, 2nd floor, balcony, built 1958
24149 Kiel, Neum.-Dietr.
10.06.2013
64 sq m
5.73 €/sq m 2-room apartment, balcony, built 1911
24149 Kiel, Neum.-Dietr.
10.06.2013
41 sq m
5.54 €/sq m 2-room apartment, 1st floor, built 1937
24149 Kiel
10.06.2013
450 sq m
5.50 €/sq m 5 storey commercial building, built 1988, refurbished
24149 Kiel
10.06.2013
234 sq m
6.20 €/sq m 4 storey commercial building, built 1967, partly refurbished
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Schulstraße, Kiel
24.11.2010
933 sq m
579 € 3 storey mixed-use building, built 1960, freehold
Elbenkamp, Kiel
17.12.2010
954 sq m
629 € 2-st. ap. build., 19 units, built 1950, partly ref. and let, freehold
Gazellenstraße, Kiel
09.12.2010
440 sq m
693 € 4-st. ap. building, built 1906, partly let, multiple 11.3, freehold
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
24106 Kiel
07.06.2013
383 sq m
666 € Mixed-used building, built in 1935, partly refurbished
24143 Kiel
07.06.2013
753 sq m
770 € Mixed-used building, built 1913, good condition, multiple 12.8
24105 Kiel
07.06.2013
236 sq m
712 € Mixed-used building, built 1956, partly refurbished
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Groß Ebbenkamp 1
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
004
24050 - Goniatit - Kiel - Gross Ebbenkamp
Goniatit
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1941
n/a
106,724 sq m
Freehold
No
55,412 sq m
3.80%
Yes
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
3,354,923 €
3,483,050 €
3,626,121 €
1,040,085 €
31.00%
Net Operating Income
Net Cash Flow
2,314,838 €
2,048,295 €
SWOT-Analysis
Strengths
Weaknesses
Almost fully let; Sought-after residential location close to the Kieler
Förde (approx. 1 km);
Some of the residential units have balconies;
Good local infrastructure (public transport, medical practices, sky,
Aldi).
Only basic tenant structure;
Noise exposure due to adjacent K31 (Langer Rehm);
Property is in need of refurbishment works (e.g. facades, entrances,
attics; staircases).
Opportunities
Threats
Good demographics;
Leasing up the vacant units;
Sustainable high occupancy rate.
Some of the apartments beeing vacated are likely in need of
refurbishment prior to re-letting.
Property and Location Rating
Property
3
1 = very good, 6 = poor
2
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
11.6
5.62%
6.20%
2,405,941 €
Potential rental income
11.1
5.93%
per sq m
Market Value
Market rental income
10.7
6.28%
700 €
38,800,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
2
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The properties are located in the district NeumühlenDietrichsdorf. No. of other units: "Deutsche Städte advertisement".
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
2
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
3
2 Mixed-use
2
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
No
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
Serious defects noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
35
3-5
1097
1
22
Year of construction
1941
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
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
The residential units only partly have balconies (No. 2
and 3) and the attics of the properties are only partly
developed.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
-
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
3
1
Lifts
1 Yes
2 No
2
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
1
2
3
4
3
We were only able to inspect a small sample of residential units.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
Tenant structure
2
Fit-out bathroom
1
Floor covering
2
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
4
None
Tiled
PVC
Wood, parquet or laminate flooring
The inspected residential unit was in a good condition. The comments stated above are according to the information provided during the
inspection. According to the asset manager, only a small share of the units are fitted with a kitchen. Generally, we assume that the
accommodations are in a similar state of repair and minor refurbishment is required in order to re-let the apartments.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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.)
yes
no
no
no
no
no
no
no
no
-
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
3
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
3
Number of units
inspected
Residential
Commercial
1
1
The external and internal impression of the building quality is fair.
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The properties are in a good to fair condition. 29 of
1,097 residential units are currently let. We assume that
the lettability is good and therefore only minor
additional measures are required to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The properties are in a good to fair condition and most
units are currently let. The demand for comparable
properties is good. We assume that the saleability is
good and only minor promotional measures are
required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
1,097
23
22
1
1,143
Total lettable area
53,657 sq m
1,755 sq m
0 sq m
0 sq m
55,412 sq m
Units let
1,068
17
2
1
1,088
Area let
52,149 sq m
1,160 sq m
0 sq m
0 sq m
53,309 sq m
Vacant units
29
6
20
0
55
Vacant area
1,508 sq m
596 sq m
0 sq m
0 sq m
2,104 sq m
Vacancy rate area
2.81%
33.94%
0.00%
0.00%
3.80%
Vacancy rate units
2.64%
26.09%
90.91%
0.00%
4.81%
Current rent sq m/month
5.26 €
4.72 €
0.00 €
0.00 €
5.24 €
256.61 €
322.07 €
17.89 €
6.15 €
256.96 €
3,288,718 €
65,702 €
429 €
74 €
3,354,923 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
5.50 €
4.00 €
0.00 €
0.00 €
5.45 €
269.02 €
305.30 €
1.63 €
6.15 €
264.37 €
3,541,355 €
84,263 €
429 €
74 €
3,626,121 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Parking
Others
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
3,482,547 3,559,390 3,634,153 3,710,454 3,788,227 3,867,675 3,948,833 4,031,740 4,116,431 4,202,947 4,291,326
-128,127 -176,880 -136,818 -95,342 -96,963 -98,611 -100,288 -101,993 -103,726 -105,490 -107,283
3,354,420 3,382,510 3,497,336 3,615,112 3,691,264 3,769,063 3,848,546 3,929,747 4,012,705 4,097,457 4,184,043
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Year 1
429
0
0
74
503
1,892
0
0
75
1,967
3,405
0
0
76
3,481
4,968
0
0
78
5,046
5,052
0
0
79
5,131
5,138
0
0
80
5,219
5,226
0
0
82
5,307
5,314
0
0
83
5,398
5,405
0
0
84
5,489
5,497
0
0
86
5,583
5,590
0
0
87
5,678
3,354,923 3,384,478 3,500,817 3,620,157 3,696,395 3,774,282 3,853,853 3,935,145 4,018,194 4,103,040 4,189,721
0.9%
3.4%
3.4%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
-254,206 -258,528 -262,923 -267,392 -271,938 -276,561 -281,262 -286,044 -290,907 -295,852 -300,881
-67,098 -67,690 -70,016 -72,403 -73,928 -75,486 -77,077 -78,703 -80,364 -82,061 -83,794
-167,742 -170,594 -173,494 -176,444 -179,443 -182,494 -185,596 -188,751 -191,960 -195,223 -198,542
-880
-895
-910
-926
-941
-957
-974
-990
-1,007
-1,024
-1,042
-25,246 -33,595 -25,680 -17,486 -17,783 -18,086 -18,393 -18,706 -19,024 -19,347 -19,676
-524,912 -533,836 -542,911 -552,140 -561,527 -571,073 -580,781 -590,654 -600,695 -610,907 -621,293
0
0
0
0
0
0
0
0
0
0
0
Total Operating Expenses
% of Gross Revenue
-1,040,085 -1,065,137 -1,075,934 -1,086,791 -1,105,560 -1,124,656 -1,144,083 -1,163,848 -1,183,957 -1,204,414 -1,225,228
Net Operating Income
2,314,838 2,319,341 2,424,883 2,533,366 2,590,835 2,649,626 2,709,770 2,771,296 2,834,238 2,898,626 2,964,493
31.0%
31.5%
30.8%
30.1%
30.0%
29.8%
29.7%
29.6%
29.5%
29.4%
29.3%
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-266,543 -306,734 -311,948 -317,251 -285,135 -289,982 -294,912 -299,926 -305,024 -310,210 -315,483
0
0
0
0
0
0
0
0
0
0
0
0 -872,372
0
0
0
0
0
0
0
0
0
Total Leasing and Capital Costs
-266,543 ######## -311,948 -317,251 -285,135 -289,982 -294,912 -299,926 -305,024 -310,210 -315,483
Net Cash Flow
% Growth
2,048,295 1,140,235 2,112,935 2,216,115 2,305,700 2,359,644 2,414,858 2,471,371 2,529,213 2,588,416 2,649,009
Gross Value
Gross Value per sq m
Purchaser's Costs
4.9%
4.0%
2.3%
2.3%
2.3%
2.3%
2.3%
2.3%
2.8%
5.1%
5.4%
5.6%
5.7%
5.9%
6.0%
6.1%
6.3%
6.4%
Net Cash Flow
15,505,551 €
25,705,887 €
41,211,438 €
744 €
3,000,000
7.0%
6.0%
2,500,000
5.0%
2,000,000
4.0%
1,500,000
3.0%
1,000,000
2.0%
6.2%
500,000
Net Value
38,805,497 €
Running Yield in %
Present Cash Flow Value @7.04% Discount Rate
Present Resale Value @5.50% Cap Rate
5.0%
85.3%
Net Cash Flow in €
Running Net Yield
-44.3%
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
Market Value
38,800,000 €
11.6 x
11.1 x
Net Initial Yield
5.6%
Direct Cap Rate
5.0%
Net Operating Income in €
Multiple (current rent)
Multiple (potential rent)
700 €
3,500,000
35.0%
3,000,000
30.0%
2,500,000
25.0%
2,000,000
20.0%
1,500,000
15.0%
1,000,000
10.0%
500,000
Total Operating Expenses in %
Net Operating Income
Market Value per sq m
5.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Site Information
Site area
Thereof surplus land
106,724 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the local environmental authority and the LDD carried out by Clifford Chance, the sites are not listed
in the register of contaminated sites. However, the site Hertzstraße 53-81 is used as a canning factory, laundry and
dry cleaning store since 1968. If this business is stopped or changed, the assessment in relation to the relevant
property may change. For the purpose of this valuation we assume that the site is free of contamination.
Public building
charges
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 23.01.2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
Yes
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
n/a
Development plan dated
n/a
Designated use
Residential and public area (Zoning Plan)
Site coverage ratio (GRZ)
n/a
Plot ratio (GFZ)
n/a
Additional comments
In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the German Building
and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings. Subject to zoning plan
898; subject to preservation ordinance "Afrikaviertel".
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
Kiel
60897
001
6/39, 9/27, 5/34, 6/33, 6/38, 6/60, 6/61,6/62, 6/65, 6/69, 6/73, 6/75, 6/77, 6/79, 6/82, 6/83, 8/3, 9/28
Goniatit Grundstücksverwaltungsgesellschaft mbH in Mainz
- Parcel 6/39: Limited personal easement (right to build and operate a transformer station) in favour of Stadtwerke Kiel
Aktiengesellschaft; entered 28/03/1972.
- Parcel 6/69: Limited personal easement (Traufrecht - right to operate a rainwater pipe) in favour of the
Landeshauptstadt Kiel; entered 07/03/1996.
- Parcel 6/33: Limited personal easement (righ to build and operate a transformer station) in favour of the Stadtwerke
Kiel; entered 24/03/1972.
- Parcel 5/34: Limited personal easement (right of way and cable right) in favour of the city Kiel; entered 03/09/1986.
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
only serve the site infrastructure and do not have a detrimental effect on the current use of the Property. However,
further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
Kiel
60897
001, 002 and 004
32/8, 32/13, 42/9, 9/37, 9/44, 41/1, 41/7, 623/41, 4/57, 22/3, 22/104, 22/86, 6/71
Goniatit Grundstücksverwaltungsgesellschaft mbH
see page 7
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 8
SHORT REPORT
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Rental and Investment Evidence
Rental Table
City
Kiel (> 45 sq m, < 60 sq m)
Date
01.04.2012
Minimum
Average
4.36 €/sq m
4.86 €/sq m
Maximum
5.32 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Lüderitzstraße 1a (Resid.)
16.04.2013
56 sq m
5.32 €/sq m
Nachtigalstraße 15 (Resid.)
01.04.2013
53 sq m
5.32 €/sq m
Verdieckstraße 69 (Resid.)
01.04.2013
50 sq m
5.33 €/sq m
Hertzstraße 58 (Resid.)
01.04.2013
45 sq m
5.72 €/sq m
Wissmannstraße 5 (Resid.)
01.04.2013
68 sq m
4.81 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
24149 Kiel, Neum.-Dietr.
10.06.2013
24148 Kiel, Wellingdorf
24149 Kiel, Neum.-Dietr.
Area
Asking rent
Comments
41 sq m
5.54 €/sq m 2-room apartment, 1st floor, built 1937
10.06.2013
70 sq m
5.30 €/sq m 4-room-apartment, ground floor, balcony, built 1964
10.06.2013
100 sq m
24149 Kiel, Neum.-Dietr.
10.06.2013
89 sq m
5.25 €/sq m 3.5-room apartment, 3th floor, built 1911
24149 Kiel, Neum.-Dietr.
10.06.2013
82 sq m
5.06 €/sq m 4-room apartment, 2nd floor, balcony, built 1965
5.30 €/sq m 3-room apartment, balcony, built 1983
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Wikingerstraße, Kiel
07.12.2010
880 sq m
761 € Mixed-use building, 15 residential units, built 1903, freehold
Gazellenstraße, Kiel
09.12.2010
440 sq m
693 € 4-st. ap. building, built 1906, partly let, multiple 11.3, freehold
Elbenkamp, Kiel
17.12.2010
954 sq m
629 € 2-st. ap. build., 19 units, built 1950, partly ref. and let, freehold
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
24143 Kiel
07.06.2013
2,306 sq m
850 € Multi-family house, fully let, good condition, built 1962
24149 Kiel
08.06.2013
954 sq m
922 € Multi-family house, built 1950, refurbished
24148 Kiel
09.06.2013
335 sq m
806 € Multi-family house, built 1957, multiple 12.0
24143 Kiel
09.06.2013
753 sq m
770 € Mixed-used building, built 1913, good condition, multiple 12.8
24106 Kiel
09.06.2013
383 sq m
666 € Multi-family house, built 1935, forced sale
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Hertzstr. 22-32 (even), 34-39, 41-50, 52-82, 84, 86; Langer Rehm 39-47 (uneven); Lüderitzstr. 1/1a, 3-8, 12-20 (even); Nachtigalstr. 1, 3-7, 10-16, 18-32 (even); Verdieckstr. 24-38 (even), 40-56, 58-69, 71; Wissmannstr. 1-12, 14-36 (even); Woermannstr. 1, 3-29, 31
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
005
24050 - Goniatit - Kiel - Hertzstraße
Goniatit
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1954
n/a
3,149 sq m
Freehold
Yes
2,418 sq m
9.14%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
127,651 €
141,576 €
152,309 €
40,368 €
31.62%
Net Operating Income
Net Cash Flow
87,284 €
76,301 €
SWOT-Analysis
Strengths
Weaknesses
Located close to the Kieler Förde (less than 300 metres);
Residential units have balconies to the rear side;
Good public transport.
Only basic tenant structure;
Let below market level;
Unattractive appearance of the entrance areas.
Opportunities
Threats
Good demographics;
Rental uplift potenial;
Leasing up of vacant units.
Vacated apartments are likely in need of renovation before re-letting.
Property and Location Rating
Property
4
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
12.5
5.21%
7.90%
122,562 €
Potential rental income
11.3
6.05%
per sq m
Market Value
Market rental income
10.5
6.69%
662 €
1,600,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The property is located in the district NeumühlenDietrichsdorf.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
No
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
Serious defects noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
4
32
n/a
n/a
Year of construction
1954
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
n/a
1 Thermally insulated
2 No insulation
n/a
Basement level
1 Yes
2 No
n/a
1 Thermally insulated
2 No insulation
n/a
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
n/a
Additional
comments
-
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
n/a
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
Warm water supply 1 Central
2 Decentral
n/a
n/a
Lifts
1 Yes
2 No
n/a
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
n/a
We have not had access to the building and were thus not able to inspect it internally.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
1
2
3
4
Very good
Good
Fair
Weak
n/a
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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.)
yes
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
-
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
n/a
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
We have not had access to the building and were thus not able to inspect internally.
Comments on Lettability and Saleability
Lettability
Additional
comments
3
1 = very good, 4 = poor
The properties are in fair condition. Three flats are
currently vacant. We assume that the lettability is fair
and therefore minor measures are required to increase
lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The properties are in fair condition and three of 32
residential units are currently vacant. The demand for
comparable properties is good. We assume that the
saleability is good and only minor promotional measures
are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
32
0
0
0
32
Total lettable area
2,418 sq m
0 sq m
0 sq m
0 sq m
2,418 sq m
Units let
29
0
0
0
29
Area let
2,197 sq m
0 sq m
0 sq m
0 sq m
2,197 sq m
Vacant units
3
0
0
0
3
Vacant area
221 sq m
0 sq m
0 sq m
0 sq m
221 sq m
Vacancy rate area
9.14%
0.00%
0.00%
0.00%
9.14%
Vacancy rate units
9.38%
0.00%
0.00%
0.00%
9.38%
Current rent sq m/month
4.84 €
0.00 €
0.00 €
0.00 €
4.84 €
Current rent unit/month
Current rent p.a.
366.81 €
0.00 €
0.00 €
0.00 €
366.81 €
127,651 €
0€
0€
0€
127,651 €
Market rent sq m/month
5.25 €
0.00 €
0.00 €
0.00 €
5.25 €
396.64 €
0.00 €
0.00 €
0.00 €
396.64 €
152,309 €
0€
0€
0€
152,309 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Cash Flow Analysis
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
141,576
-13,924
127,651
144,959
-13,077
131,882
148,218
-8,619
139,599
151,626
-4,005
147,621
155,421
-4,073
151,348
159,311
-4,143
155,168
163,298
-4,213
159,085
167,386
-4,285
163,101
171,576
-4,357
167,219
175,871
-4,432
171,440
180,275
-4,507
175,768
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
127,651
131,882
3.3%
139,599
5.9%
147,621
5.7%
151,348
2.5%
155,168
2.5%
159,085
2.5%
163,101
2.5%
167,219
2.5%
171,440
2.5%
175,768
2.5%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-7,360
-2,553
-6,383
0
-2,652
-21,420
0
-7,485
-2,638
-6,491
0
-2,491
-21,784
0
-7,612
-2,792
-6,601
0
-1,642
-22,154
0
-7,742
-2,952
-6,714
0
-763
-22,531
0
-7,873
-3,027
-6,828
0
-776
-22,914
0
-8,007
-3,103
-6,944
0
-789
-23,303
0
-8,143
-3,182
-7,062
0
-802
-23,700
0
-8,282
-3,262
-7,182
0
-816
-24,103
0
-8,423
-3,344
-7,304
0
-830
-24,512
0
-8,566
-3,429
-7,428
0
-844
-24,929
0
-8,711
-3,515
-7,554
0
-858
-25,353
0
Total Operating Expenses
% of Gross Revenue
-40,368
31.6%
-40,889
31.0%
-40,802
29.2%
-40,702
27.6%
-41,418
27.4%
-42,147
27.2%
-42,889
27.0%
-43,644
26.8%
-44,413
26.6%
-45,196
26.4%
-45,992
26.2%
Net Operating Income
87,284
90,993
98,797
106,920
109,930
113,021
116,196
119,457
122,805
126,244
129,775
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-10,983
0
0
-14,916
0
-54,186
-15,169
0
-40,368
-15,427
0
-41,055
-11,749
0
0
-11,949
0
0
-12,152
0
0
-12,358
0
0
-12,569
0
0
-12,782
0
0
-12,999
0
0
Total Leasing and Capital Costs
-10,983
-69,102
-55,538
-56,482
-11,749
-11,949
-12,152
-12,358
-12,569
-12,782
-12,999
76,301
21,891
-71.3%
43,259
97.6%
50,437
16.6%
98,181
94.7%
101,073
2.9%
104,045
2.9%
107,099
2.9%
110,237
2.9%
113,462
2.9%
116,776
2.9%
4.6%
1.3%
2.6%
3.0%
5.9%
6.0%
6.2%
6.4%
6.6%
6.8%
7.0%
Total Gross Revenue
% Growth
Net Cash Flow
% Growth
Running Net Yield
Present Cash Flow Value @7.04% Discount Rate
Present Resale Value @5.50% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Cash Flow
566,388 €
1,107,585 €
1,673,974 €
692 €
140,000
8.0%
120,000
7.0%
6.0%
100,000
5.0%
80,000
4.0%
60,000
3.0%
40,000
7.9%
2.0%
20,000
Net Value
1,551,412 €
Running Yield in %
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Net Cash Flow in €
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
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
Market Value
1,600,000 €
12.5 x
11.3 x
Net Initial Yield
5.2%
Direct Cap Rate
4.6%
Net Operating Income in €
Multiple (current rent)
Multiple (potential rent)
662 €
140,000
35.0%
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
Total Operating Expenses in %
Net Operating Income
Market Value per sq m
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Site Information
Site area
Thereof surplus land
3,149 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 21.01.2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the letter by Landeshauptstadt Kiel, dated 23.01.2008, there is a public building charge relating to
parcel 23/7: - Distance space in favour of section 1, parcel 636/24 and 581/24. We have made the Assumption that
this fact has no detrimental impact on the value of the property.
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
No. 484
Development plan dated
04.03.1996
Designated use
Residential area (WA)
Site coverage ratio (GRZ)
0.25
Plot ratio (GFZ)
0.8
Additional comments
We have not been provided with a detailed area calculation. In the event that the realized site coverage and/or plot ratio exceed the maximum
permitted site coverage and/or plot ratio, we assume that the building has the benefit of continuation permit and that the property is not
subject to any outstanding statutory notices regarding its construction.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
Kiel
60897
001
23/7
Goniatit Grundstücksverwaltungsgesellschaft mbH in Mainz
- Limited personal easement (transformer station right) in favour of Stadtwerke Kiel Aktiengesellschaft in Kiel; entered
16/03/1972.
- Limited personal easment (antenna- and cabel right) in favour of the KK Kabelnetz Kiel GmbH & Co. KG in Kiel, the
maximum amount of the compensation is 5.000 DM; entered 17/01/2001.
- Limited personal easement (right of way and right to build and operate heat generation plants) in favour of Techem
Energy Contracting GmbH (TEC) in Eschborn, entered 15/09/2006.
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
only serve the site infrastructure and do not have a detrimental effect on the current use of the Property. However,
further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Nanthingasse 2, 4, 6, 8
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Nanthingasse 2, 4, 6, 8
24149
Kiel
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Rental and Investment Evidence
Rental Table
City
Kiel (> 60 sq m, < 80 sq m)
Date
01.04.2012
Minimum
Average
4.67 €/sq m
4.84 €/sq m
Maximum
5.03 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Nanthingasse 2 (Resid.)
01.03.2013
82 sq m
5.23 €/sq m
Nanthingasse 6 (Resid.)
01.03.2013
70 sq m
5.73 €/sq m
Nanthingasse 6 (Resid.)
01.12.2012
81 sq m
5.12 €/sq m
Nanthingasse 4 (Resid.)
01.09.2012
70 sq m
5.31 €/sq m
Nanthingasse 2 (Resid.)
16.07.2012
82 sq m
5.10 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
24149 Kiel, Neum.-Dietr.
10.06.2013
24149 Kiel, Neum.-Dietr.
24149 Kiel, Neum.-Dietr.
Area
Asking rent
Comments
89 sq m
5.25 €/sq m 3.5-room apartment, 3th floor, built 1911
10.06.2013
61 sq m
5.25 €/sq m 2-room apartment, 1st floor, built 1950
10.06.2013
100 sq m
5.30 €/sq m 3-room apartment, balcony, built 1983
24149 Kiel, Neum.-Dietr.
10.06.2013
60 sq m
5.30 €/sq m 2-room apartment, 3rd floor, built 1983
24149 Kiel, Neum.-Dietr.
10.06.2013
82 sq m
5.06 €/sq m 4-room apartment, 2nd floor, balcony, built 1965
Sales Comparables from Board of Valuers
Address
Date
Gazellenstraße, Kiel
09.12.2010
Elbenkamp, Kiel
Masurenring, Kiel
Area
Price p. sq m
Comments
440 sq m
693 € 4-st. ap. building, built 1906, partly let, multiple 11.3, freehold
17.12.2010
954 sq m
629 € 2-st. ap. build., 19 units, built 1950, partly ref. and let, freehold
17.08.2010
3,391 sq m
569 € 5-storey apartment building, 48 units, built 1965, freehold
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
24143 Kiel
07.06.2013
2,306 sq m
850 € Multi-family house, fully let, good condition, built 1962
24149 Kiel
08.06.2013
954 sq m
922 € Multi-family house, built 1950, refurbished
24143 Kiel
09.06.2013
753 sq m
770 € Mixed-used building, built 1913, good condition, multiple 12.8
24106 Kiel
09.06.2013
383 sq m
666 € Multi-family house, built 1935, forced sale
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Nanthingasse 2, 4, 6, 8
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
006
24050 - Goniatit - Kiel - Nanthingasse
Goniatit
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1939
n/a
3,982 sq m
Freehold
Yes
4,074 sq m
9.41%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
220,585 €
245,878 €
269,798 €
75,101 €
34.05%
Net Operating Income
Net Cash Flow
145,484 €
127,030 €
SWOT-Analysis
Strengths
Weaknesses
Located close to the Kieler Förde (less than 500 metres);
Some of the residential units have balconies;
Good public transport.
Only basic tenant structure;
Property is partly in need of refurbishment.
Opportunities
Threats
Good demographics;
Leasing up of vacant units.
Vacated apartments are likely in need of renovation before re-letting.
Property and Location Rating
Property
4
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
13.1
4.66%
7.90%
228,347 €
Potential rental income
11.8
5.48%
per sq m
Market Value
Market rental income
10.7
6.24%
712 €
2,900,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The properties are located in the district NeumühlenDietrichsdorf.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
Serious defects noted
2
No. of parking spaces
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
4
3-5
78
n/a
32
Year of construction
1939
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
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
The roof of "Moorblöcken and Schwentinestr." is
pitched and the facade is of face brick without WDSV.
Only partly developed attics.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
Modernized 2000
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
2
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
1
2
3
4
3
We were only able to inspect a small sample of residential units.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
Tenant structure
3
Fit-out bathroom
1
Floor covering
2
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
4
None
Tiled
PVC
Wood, parquet or laminate flooring
The inspected residential unit was in fair condition. The comments stated above are according to the information provided during the
inspection. According to the asset manager, only a small share of the units are fitted with a kitchen. Generally, we assume that the
accommodations are in a similar state of repair and minor refurbishment is required in order to re-let the apartments.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
yes
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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.)
yes
no
no
no
no
no
no
no
no
-
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
4
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
3
Number of units
inspected
Residential
Commercial
1
0
The external impression of the building quality is fair and the internal is fairly poor.
Comments on Lettability and Saleability
Lettability
Additional
comments
3
1 = very good, 4 = poor
The properties are in a good to fair condition. Six flats
are currently vacant. We assume that the lettability is
fair and therefore minor measures are required to
increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The properties are in a good to fair condition and show
some vacancy. The demand for comparable properties is
good. We assume that the saleability is good and only
minor promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
78
0
32
0
110
Total lettable area
4,074 sq m
0 sq m
0 sq m
0 sq m
4,074 sq m
Units let
72
0
7
0
79
Area let
3,691 sq m
0 sq m
0 sq m
0 sq m
3,691 sq m
Vacant units
6
0
25
0
31
Vacant area
383 sq m
0 sq m
0 sq m
0 sq m
383 sq m
Vacancy rate area
9.41%
0.00%
0.00%
0.00%
9.41%
Vacancy rate units
7.69%
0.00%
78.13%
0.00%
28.18%
Current rent sq m/month
4.96 €
0.00 €
0.00 €
0.00 €
4.98 €
Current rent unit/month
Current rent p.a.
254.26 €
0.00 €
10.81 €
0.00 €
232.68 €
219,677 €
0€
908 €
0€
220,585 €
Market rent sq m/month
5.50 €
0.00 €
0.00 €
0.00 €
5.52 €
287.28 €
0.00 €
2.37 €
0.00 €
204.39 €
268,890 €
0€
908 €
0€
269,798 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Parking
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Cash Flow Analysis
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
244,970
-25,293
219,677
251,263
-23,557
227,707
257,266
-15,455
241,811
263,591
-7,071
256,520
270,782
-7,191
263,591
278,171
-7,313
270,857
285,761
-7,438
278,324
293,560
-7,564
285,996
301,572
-7,693
293,880
309,804
-7,824
301,981
318,261
-7,957
310,305
908
0
0
0
908
2,023
0
0
0
2,023
3,176
0
0
0
3,176
4,367
0
0
0
4,367
4,441
0
0
0
4,441
4,517
0
0
0
4,517
4,593
0
0
0
4,593
4,672
0
0
0
4,672
4,751
0
0
0
4,751
4,832
0
0
0
4,832
4,914
0
0
0
4,914
220,585
229,730
4.1%
244,987
6.6%
260,887
6.5%
268,032
2.7%
275,374
2.7%
282,917
2.7%
290,667
2.7%
298,631
2.7%
306,812
2.7%
315,219
2.7%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-17,958
-4,412
-11,029
-1,280
-4,599
-35,823
0
-18,263
-4,595
-11,217
-1,302
-4,283
-36,432
0
-18,574
-4,900
-11,407
-1,324
-2,810
-37,051
0
-18,890
-5,218
-11,601
-1,346
-1,286
-37,681
0
-19,211
-5,361
-11,799
-1,369
-1,307
-38,322
0
-19,537
-5,507
-11,999
-1,393
-1,330
-38,973
0
-19,870
-5,658
-12,203
-1,416
-1,352
-39,636
0
-20,207
-5,813
-12,411
-1,440
-1,375
-40,309
0
-20,551
-5,973
-12,622
-1,465
-1,399
-40,995
0
-20,900
-6,136
-12,836
-1,490
-1,422
-41,692
0
-21,256
-6,304
-13,054
-1,515
-1,447
-42,400
0
Total Operating Expenses
% of Gross Revenue
-75,101
34.2%
-76,091
33.4%
-76,066
31.5%
-76,022
29.6%
-77,368
29.4%
-78,739
29.1%
-80,135
28.8%
-81,556
28.5%
-83,003
28.2%
-84,476
28.0%
-85,976
27.7%
Net Operating Income
145,484
153,638
168,921
184,865
190,664
196,635
202,782
209,111
215,627
222,336
229,243
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-18,454
0
0
-25,264
0
-35,290
-25,693
0
0
-26,130
0
0
-19,742
0
0
-20,077
0
0
-20,418
0
0
-20,766
0
0
-21,119
0
0
-21,478
0
0
-21,843
0
0
Total Leasing and Capital Costs
-18,454
-60,554
-25,693
-26,130
-19,742
-20,077
-20,418
-20,766
-21,119
-21,478
-21,843
Net Cash Flow
% Growth
127,030
93,085
-26.7%
143,227
53.9%
158,735
10.8%
170,922
7.7%
176,557
3.3%
182,363
3.3%
188,346
3.3%
194,509
3.3%
200,858
3.3%
207,400
3.3%
4.1%
3.0%
4.6%
5.1%
5.5%
5.7%
5.8%
6.0%
6.2%
6.4%
6.6%
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Running Net Yield
Present Cash Flow Value @7.04% Discount Rate
Present Resale Value @5.50% Cap Rate
Net Cash Flow
1,162,316 €
1,956,504 €
250,000
7.0%
3,118,819 €
5.0%
150,000
Gross Value per sq m
766 €
Purchaser's Costs
7.9%
50,000
2,890,472 €
0
4.0%
3.0%
100,000
2.0%
Running Yield in %
Gross Value
Net Cash Flow in €
6.0%
200,000
1.0%
Net Value
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
2,900,000 €
Net Operating Income
13.1 x
11.8 x
Net Initial Yield
4.7%
Direct Cap Rate
4.1%
40.0%
250,000
35.0%
200,000
30.0%
25.0%
150,000
20.0%
100,000
15.0%
10.0%
50,000
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
712 €
Net Operating Income in €
Market Value per sq m
5.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Site Information
Site area
Thereof surplus land
3,982 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 21.01.2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter by the relevant local authority Landeshauptstadt
Kiel, dated 23.01.2008/25.02.2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
n/a
Development plan dated
n/a
Designated use
n/a
Site coverage ratio (GRZ)
n/a
Plot ratio (GFZ)
n/a
Additional comments
In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the German Building
and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
Kiel
60897
001 and 004
22/31, 316/28, 1/14, 423/1, 424/1, 28/7, 529/28, 530/28
Goniatit Grundstücksverwaltungsgesellschaft mbH in Mainz
Parcel 316/28, 1/14, 423/1, 424/1, 28/7, 529/28, 530/28:
- Limited personal easement (cable right) in favour of the company KK Kabelnetz Kiel GmbHl, the maximum amount of
the compensation is 5,000 DM; entered 17/01/2001.
- Limited personal easement (right of way and right to build and operate heat generation plants) in favour of Techem
Energy Contracting GmbH (TEC) in Eschborn, entered 15/09/2006.
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
only serve the site infrastructure and do not have a detrimental effect on the current use of the Property. However,
further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Rental and Investment Evidence
Rental Table
City
Kiel (> 45 sq m, < 60 sq m)
Date
01.04.2012
Minimum
Average
4.36 €/sq m
4.86 €/sq m
Maximum
5.32 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Moorblöcken 1 (Resid.)
01.04.2013
67 sq m
5.74 €/sq m
Schwentinestr. 20 (Res.)
16.03.2013
47 sq m
5.62 €/sq m
Tiefe Allee 18 (Resid.)
16.12.2012
44 sq m
6.21 €/sq m
Tiefe Allee 18 (Resid.)
01.09.2012
58 sq m
5.35 €/sq m
Tiefe Allee 20 (Resid.)
01.05.2012
63 sq m
5.20 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
24149 Kiel, Neum.-Dietr.
10.06.2013
41 sq m
5.54 €/sq m 2-room apartment, 1st floor, built 1937
24149 Kiel, Neum.-Dietr.
10.06.2013
42 sq m
5.71 €/sq m 2-room apartment, ground floor, balcony, built 1996
24149 Kiel, Neum.-Dietr.
10.06.2013
42 sq m
5.80 €/sq m 2-room apartment, balcony, built 1950
24149 Kiel, Neum.-Dietr.
10.06.2013
60 sq m
5.30 €/sq m 2-room apartment, 3rd floor, built 1983
24149 Kiel, Neum.-Dietr.
10.06.2013
100 sq m
5.30 €/sq m 3-room apartment, balcony, built 1983
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Wikingerstraße, Kiel
07.12.2010
880 sq m
761 € Mixed-use building, 15 residential units, built 1903, freehold
Gazellenstraße, Kiel
09.12.2010
440 sq m
693 € 4-st. ap. building, built 1906, partly let, multiple 11.3, freehold
Elbenkamp, Kiel
17.12.2010
954 sq m
629 € 2-st. ap. build., 19 units, built 1950, partly ref. and let, freehold
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
24143 Kiel
07.06.2013
2,306 sq m
850 € Multi-family house, fully let, good condition, built 1962
24149 Kiel
08.06.2013
954 sq m
922 € Multi-family house, built 1950, refurbished
24148 Kiel
09.06.2013
335 sq m
806 € Multi-family house, built 1957, multiple 12.0
24143 Kiel
09.06.2013
753 sq m
770 € Mixed-used building, built 1913, good condition, multiple 12.8
24106 Kiel
09.06.2013
383 sq m
666 € Multi-family house, built 1935, forced sale
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Moorblöcken 1; Nanthingasse 8; Schwentinestr. 16-24 (even), 20a,22a,24a ; Tiefe Allee 18,20,22
24149
Kiel
DTZ No.
Cluster
Portfolio
Date of Valuation
007
24050 - Goniatit - Kiel - Tiefe Allee
Goniatit
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Mixed-use
2001
n/a
2,306 sq m
Freehold
No
6,706 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
810,613 €
810,613 €
886,864 €
114,225 €
14.09%
Net Operating Income
Net Cash Flow
696,387 €
662,855 €
SWOT-Analysis
Strengths
Weaknesses
Property is in a good conditon;
Located in central Berlin;
Property is fully let.
Residential units are let below market level;
Property is listed in the register of contaminated sites.
Opportunities
Threats
Rent uplift potential for residential units;
Good investor demand for mixed-use buildings in that location.
Only fair residential area;
Commercial units are over-rented.
Property and Location Rating
Property
2
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
17.9
4.49%
6.75%
979,688 €
Potential rental income
17.9
4.49%
per sq m
Market Value
Market rental income
16.3
4.99%
2,162 €
14,500,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Location and Property Description
Location Description
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
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
2
Additional
comments
(suitability of the
location)
The property is located in the district of Mitte.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
2
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
5
2 Mixed-use
2
3 Commercial use
1
No. of floors (incl.
ground floor)
6-7
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
90
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
Serious defects noted
2
8
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
236
Year of construction
2001
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
1
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
1
Additional
comments
The shopfront on ground level is made of metal.
Balconies are also at the rear side.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
2000
Electrical wiring
1
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
Warm water supply 1 Central
2 Decentral
3
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
1
2
3
4
2
Technical installations are in a good condition due to installation in 2001.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
We have not detected obvious visible damage in the course of our external inspection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
2
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
1
1 = very good, 4 = poor
The property is in a good condition and all units are
currently let. We assume that the lettability is very good
and therefore no additional measures are required to
increase lettability.
Saleability
Additional
comments
1
1 = very good, 4 = poor
The property is in a good condition, all units are
currently let and the demand for comparable properties
is very high. We assume that saleability is very good and
that no promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
90
8
236
0
334
Total lettable area
6,163 sq m
543 sq m
0 sq m
0 sq m
6,706 sq m
Units let
90
8
206
0
304
Area let
6,163 sq m
543 sq m
0 sq m
0 sq m
6,706 sq m
Vacant units
0
0
30
0
30
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
12.71%
0.00%
8.98%
Current rent sq m/month
8.18 €
12.93 €
0.00 €
0.00 €
10.07 €
560.22 €
878.23 €
49.05 €
0.00 €
222.21 €
605,043 €
84,310 €
121,260 €
0€
810,613 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
Market rent unit/month
Market rent p.a.
9.25 €
12.50 €
0.00 €
0.00 €
11.02 €
633.41 €
849.14 €
42.82 €
0.00 €
221.27 €
684,086 €
81,518 €
121,260 €
0€
886,864 €
Lettable area by use
Current rental income by use
Commercial
Parking
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
8.10 €/sq m
8.10 €/sq m
80.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Cash Flow Analysis
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
Total Operating Expenses
% 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
689,353
0
689,353
708,971
-6,488
702,482
728,495
-6,599
721,896
748,576
-6,711
741,865
769,231
-6,825
762,406
790,477
-6,941
783,536
812,330
-7,059
805,271
834,808
-7,179
827,629
857,930
-7,301
850,628
881,713
-7,425
874,288
906,178
-7,551
898,627
121,260
0
0
0
121,260
129,308
0
0
0
129,308
137,594
0
0
0
137,594
146,125
0
0
0
146,125
148,609
0
0
0
148,609
151,136
0
0
0
151,136
153,705
0
0
0
153,705
156,318
0
0
0
156,318
158,975
0
0
0
158,975
161,678
0
0
0
161,678
164,427
0
0
0
164,427
810,613
831,790
2.6%
859,490
3.3%
887,990
3.3%
911,016
2.6%
934,672
2.6%
958,976
2.6%
983,947 1,009,604 1,035,966 1,063,053
2.6%
2.6%
2.6%
2.6%
-24,811
-16,212
-40,531
-18,880
0
-13,791
0
-25,233
-16,636
-41,220
-19,201
-682
-14,026
0
-25,662
-17,190
-41,920
-19,527
-694
-14,264
0
-26,098
-17,760
-42,633
-19,859
-705
-14,506
0
-26,542
-18,220
-43,358
-20,197
-717
-14,753
0
-26,993
-18,693
-44,095
-20,540
-730
-15,004
0
-27,452
-19,180
-44,844
-20,889
-742
-15,259
0
-27,919
-19,679
-45,607
-21,245
-755
-15,518
0
-28,393
-20,192
-46,382
-21,606
-767
-15,782
0
-28,876
-20,719
-47,171
-21,973
-781
-16,050
0
-29,367
-21,261
-47,973
-22,347
-794
-16,323
0
-114,225 -116,997 -119,257 -121,563 -123,788 -126,055 -128,367 -130,722 -133,123 -135,570 -138,064
16.6%
16.7%
16.5%
16.4%
16.2%
16.1%
15.9%
15.8%
15.6%
15.5%
15.4%
Net Operating Income
696,387
714,793
740,233
766,428
787,228
808,616
830,609
853,225
876,481
900,396
924,989
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-33,532
0
0
-34,102
0
-10,170
-34,682
0
0
-35,271
0
0
-35,871
0
0
-36,481
0
0
-37,101
0
0
-37,732
0
-48,846
-38,373
0
0
-39,025
0
0
-39,689
0
0
Total Leasing and Capital Costs
-33,532
-44,272
-34,682
-35,271
-35,871
-36,481
-37,101
-86,577
-38,373
-39,025
-39,689
Net Cash Flow
% Growth
662,855
670,521
1.2%
705,551
5.2%
731,157
3.6%
751,357
2.8%
772,135
2.8%
793,508
2.8%
766,648
-3.4%
838,108
9.3%
861,370
2.8%
885,300
2.8%
4.3%
4.3%
4.6%
4.7%
4.8%
5.0%
5.1%
4.9%
5.4%
5.6%
5.7%
Gross Value
Gross Value per sq m
Net Cash Flow
5,569,229 €
9,924,361 €
15,493,590 €
2,310 €
1,000,000
6.0%
900,000
5.0%
800,000
700,000
4.0%
600,000
500,000
3.0%
400,000
2.0%
300,000
Purchaser's Costs
6.7%
200,000
Running Yield in %
Present Cash Flow Value @6.28% Discount Rate
Present Resale Value @4.75% Cap Rate
Net Cash Flow in €
Running Net Yield
1.0%
100,000
Net Value
14,513,902 €
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
14,500,000 €
17.9 x
17.9 x
Net Initial Yield
4.5%
Direct Cap Rate
4.3%
Net Operating Income in €
Multiple (current rent)
Multiple (potential rent)
2,162 €
1,000,000
18.0%
900,000
16.0%
800,000
14.0%
700,000
12.0%
600,000
10.0%
500,000
8.0%
400,000
6.0%
300,000
4.0%
200,000
Total Operating Expenses in %
Net Operating Income
Market Value per sq m
2.0%
100,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Site Information
Site area
Thereof surplus land
2,306 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the Senate Administration of Berlin, dated 25
January 2008), the subject site is listed in the register of contaminated sites, no. 6908 due to former commercial
use. Refurbishment measures have been taken place in the soil and in the ground water. The situation of the
ground water is consistently monitored.
Public building
charges
The sites Annenstraße 47-51, Dresdner Straße 39-46 and Heinrich-Heine-Straße 15-29 (unveven) are regarded as
one site. Some areas serve as access, driveway and fire rescue path and some are not allowed to be oberbuilt or to
serve as distance space between buildings. We assume no influence on the value.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
Development plan dated
Designated use
Mixed-use area (Zoning Plan)
Site coverage ratio (GRZ)
Plot ratio (GFZ)
Additional comments
§ 34 BauGB: In the current zoning plan the site is designated as mixed-use area and can be developed in accordance with Article 34 of the
German Building and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
08/02/2012
Mitte
17075N
618
339
Annenhöfe Grundstücksverwaltungsgesellschaft mbH
Easement to maintain and operate an underground car park in favour of the respective owners of Mitte, pages 17074N,
17076N, 17078N, 17080N, 17081N, entered on 18.10.2001;
Easement to maintain and operate building services and to jointly use common installations in favour of the respective
owners of Mitte, pages 17074N, 17076N, 17077N, 17078N, 17079N, 17080N, 17081N, entered on 18.10.2001;
Easement to jointly use outdoor installations in favour of the respective owners of Mitte, pages 17074N, 17076N,
17077N, 17078N, 17079N, 17080N, 17081N, entered on 18.10.2001;
Easement for the right of way and for the right to use fire rescue path in favour of the respective owners of Mitte, page
7101N - 7320N, entered on 18.10.2001;
Limited personal easement for the right of way and the right to use fire rescue path in favour of the federal state of
Berlin, entered on 18.10.2001;
Easement to use spaces, rooms and building parts - inlcuding the use of installations and facilities - and co-use of access
path in favour of the respective owner of Mitte, page 17074N, entered on 18.08.2003.
Comments
For the purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on
the current use of the Property. However, further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Annenstraße 48-51
10179
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Annenstraße 48-51
10179
Berlin
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Rental and Investment Evidence
Rental Table
City
Berlin, Mitte
Date
01.09.2012
Minimum
Average
6.04 €/sq m
6.87 €/sq m
Maximum
7.59 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Annenstraße 49 (Res.)
16.02.2013
57 sq m
9.59 €/sq m
Annenstraße 48 (Res.)
15.02.2013
55 sq m
9.53 €/sq m
Annenstraße 50 (Res.)
01.02.2013
99 sq m
9.25 €/sq m
Annenstraße 51 (Res.)
01.12.2012
63 sq m
9.50 €/sq m
Annenstraße 48 (Retail)
01.02.2013
70 sq m
15.00 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
10179 Berlin
10.06.2013
97 sq m
9.27 €/sq m 3-room apartment, 7th floor, balcony, good condition
10969 Berlin
19.06.2013
49 sq m
9.67 €/sq m 2-room apartment, 2nd floor, good condition
10179 Berlin
19.06.2013
77 sq m
9.00 €/sq m 2-room apartment, 4th floor, lift, good condition
10961 Berlin
19.06.2013
97 sq m
10179 Berlin
10.06.2013
54 sq m
9.00 €/sq m 3.5-room apartment, 2nd floor, lift, good condition
12.01 €/sq m retail area, good access to public transport, good condition
Sales Comparables from Board of Valuers
Address
Date
Alte Jakobstr., 10179 Berlin
29.04.2011
Area
3,209 sq m
Price p. sq m
Comments
1,652 € 7-storey mixed-use building, built 2000, refurbished, lift
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
10115 Berlin
06.06.2013
555 sq m
10179 Berlin
06.06.2013
3,000 sq m
Price p. sq m
Comments
2,254 € Mixed-use building, built 1998, refurbished, lift
1,600 € Apartment building, built 1995, partly refurbished, lift
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Annenstraße 48-51
10179
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
009
24120 - Annenhöfe - Berlin - Annenstraße
Annenhöfe
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Other
2000
n/a
1,677 sq m
Freehold
No
7,866 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
805,055 €
805,055 €
947,194 €
95,915 €
11.91%
Net Operating Income
Net Cash Flow
709,140 €
669,811 €
SWOT-Analysis
Strengths
Weaknesses
Property is in a good conditon;
Located in central Berlin;
Property is fully let.
High noise exposure due to location at a main road;
Property is listed in the register of contaminated sites.
Opportunities
Threats
Good investor demand for buildings in that location;
Rent uplift potential for residential units.
Almost 100% commercial income;
Commercial units in need of alteration works prior to re-letting;
Rental adjustment may take longer in case of low fluctuation.
Property and Location Rating
Property
2
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
15.4
5.36%
6.75%
836,731 €
Potential rental income
15.4
5.36%
per sq m
Market Value
Market rental income
13.1
6.43%
1,576 €
12,400,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Location and Property Description
Location Description
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
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
2
Additional
comments
(suitability of the
location)
The property is located in the district of Mitte.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
3
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
2
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
6
2 Mixed-use
3
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
4
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
Serious defects noted
2
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
n/a
1
7
n/a
45
n/a
Year of construction
2000
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
1
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
1
Additional
comments
Rear facade is rendered.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
2000
Electrical wiring
1
Water and sewage
pipes
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
Warm water supply 1 Central
2 Decentral
3
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
1
2
3
4
2
Technical installations are in a good condition due to installation in 2000.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
The property does not have residential units.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
We have not detected obvious visible damage in the course of our external inspection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
2
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
2
Number of units
inspected
Residential
Commercial
0
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a good condition and all units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a good condition, all units are
currently let and the demand for comparable properties
is good. We assume that the saleability is good and only
minor promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
0
21
0
24
45
Total lettable area
0 sq m
7,866 sq m
0 sq m
0 sq m
7,866 sq m
Units let
0
21
0
24
45
Area let
0 sq m
7,866 sq m
0 sq m
0 sq m
7,866 sq m
Vacant units
0
0
0
0
0
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
0.00%
0.00%
0.00%
Current rent sq m/month
0.00 €
8.49 €
0.00 €
0.00 €
8.53 €
Current rent unit/month
0.00 €
3,181.57 €
0.00 €
11.46 €
1,490.84 €
0€
801,755 €
0€
3,300 €
805,055 €
Market rent sq m/month
0.00 €
10.00 €
0.00 €
0.00 €
10.03 €
Market rent unit/month
0.00 €
3,745.61 €
0.00 €
11.46 €
1,754.06 €
0€
943,894 €
0€
3,300 €
947,194 €
Current rent p.a.
Market rent p.a.
Lettable area by use
Current rental income by use
Residential
Others
Residential
Commercial
Commercial
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
8.10 €/sq m
8.10 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Cash Flow Analysis
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
801,755
0
801,755
832,080
-23,998
808,082
859,749
-24,406
835,342
888,344
-24,821
863,522
917,896
-25,243
892,653
948,439
-25,672
922,766
980,004 1,012,628 1,046,344 1,081,190 1,117,204
-26,109 -26,553 -27,004 -27,463 -27,930
953,895 986,075 1,019,340 1,053,727 1,089,274
0
0
0
3,300
3,300
0
0
0
3,356
3,356
0
0
0
3,413
3,413
0
0
0
3,471
3,471
0
0
0
3,530
3,530
0
0
0
3,590
3,590
0
0
0
3,651
3,651
805,055
811,438
0.8%
838,756
3.4%
866,994
3.4%
896,183
3.4%
926,357
3.4%
957,547
3.4%
989,788 1,023,117 1,057,568 1,093,180
3.4%
3.4%
3.4%
3.4%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-16,101
-16,101
-40,088
0
0
-23,625
0
-16,375
-16,229
-40,769
0
-2,400
-24,027
0
-16,653
-16,775
-41,462
0
-2,441
-24,435
0
-16,936
-17,340
-42,167
0
-2,482
-24,851
0
-17,224
-17,924
-42,884
0
-2,524
-25,273
0
-17,517
-18,527
-43,613
0
-2,567
-25,703
0
-17,815
-19,151
-44,354
0
-2,611
-26,140
0
-18,118
-19,796
-45,108
0
-2,655
-26,584
0
Total Operating Expenses
% of Gross Revenue
-95,915
12.0%
-99,799 -101,766 -103,776 -105,829 -107,927 -110,071 -112,261 -114,500 -116,787 -119,125
12.4%
12.2%
12.0%
11.9%
11.7%
11.5%
11.4%
11.2%
11.1%
10.9%
Net Operating Income
709,140
711,639
736,989
763,218
790,354
818,430
847,476
877,527
908,617
940,781
974,055
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-39,329
0
0
-39,997
0
-3,390
-40,677
0
0
-41,369
0
0
-42,072
0
0
-42,787
0
0
-43,515
0
0
-44,255
0
0
-45,007
0
0
-45,772
0
0
-46,550
0
0
Total Leasing and Capital Costs
-39,329
-43,387
-40,677
-41,369
-42,072
-42,787
-43,515
-44,255
-45,007
-45,772
-46,550
Net Cash Flow
% Growth
669,811
668,251
-0.2%
696,312
4.2%
721,849
3.7%
748,282
3.7%
775,642
3.7%
803,961
3.7%
833,273
3.6%
863,610
3.6%
895,008
3.6%
927,505
3.6%
5.1%
5.0%
5.3%
5.5%
5.7%
5.9%
6.1%
6.3%
6.5%
6.8%
7.0%
Total Gross Revenue
% Growth
Running Net Yield
Present Cash Flow Value @7.29% Discount Rate
Present Resale Value @5.75% Cap Rate
Gross Value
Gross Value per sq m
1,682 €
0
0
0
3,714
3,714
Year 8
0
0
0
3,777
3,777
-18,426
-20,462
-45,875
0
-2,700
-27,036
0
Year 9
Year 10
0
0
0
3,841
3,841
0
0
0
3,906
3,906
-18,739
-21,151
-46,655
0
-2,746
-27,496
0
-19,057
-21,864
-47,448
0
-2,793
-27,963
0
Net Cash Flow
5,383,755 €
7,848,987 €
13,232,742 €
Year 7
1,000,000
8.0%
900,000
7.0%
800,000
6.0%
700,000
5.0%
600,000
500,000
4.0%
400,000
3.0%
300,000
Purchaser's Costs
2.0%
6.7%
200,000
1.0%
100,000
Net Value
Running Yield in %
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Net Cash Flow in €
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
12,396,011 €
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
12,400,000 €
Net Operating Income
Net Initial Yield
Direct Cap Rate
15.4 x
15.4 x
5.4%
5.1%
1,200,000
14.0%
12.0%
1,000,000
10.0%
800,000
8.0%
600,000
6.0%
400,000
4.0%
200,000
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
1,576 €
Net Operating Income in €
Market Value per sq m
2.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Site Information
Site area
Thereof surplus land
1,677 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the Senate Administration of Berlin, dated 25
January 2008), the subject site is listed in the register of contaminated sites, no. 6908 due to former commercial
use. Refurbishment measures have been taken place in the soil and in the ground water. The situation of the
ground water is consistently monitored.
Public building
charges
The sites Annenstraße 47-51, Dresdner Straße 39-46 and Heinrich-Heine-Straße 15-29 (unveven) are regarded as
one site. Some areas serve as access, driveway and fire rescue path and some are not allowed to be oberbuilt or to
serve as distance space between buildings. We assume no influence on the value.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
Development plan dated
Designated use
Mixed-use area (Zoning Plan)
Site coverage ratio (GRZ)
Plot ratio (GFZ)
Additional comments
§ 34 BauGB: In the current zoning plan the site is designated as mixed-use area and can be developed in accordance with Article 34 of the
German Building and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
08/02/2012
Mitte
17074N
618
338
Annenhöfe Grundstücksverwaltungsgesellschaft mbH
Easement to maintain and operate an underground car park in favour of the respective owners of Mitte, pages 17075N,
17076N, 17078N, 17080N, 17081N, entered on 18.10.2001;
Easement to maintain and operate building services and to jointly use common installations in favour of the respective
owners of Mitte, pages 17075N, 17076N, 17077N, 17078N, 17079N, 17080N, 17081N, entered on 18.10.2001;
Easement to jointly use outdoor installations in favour of the respective owners of Mitte, pages 17075N, 17076N,
17077N, 17078N, 17079N, 17080N, 17081N, entered on 18.10.2001;
Limited personal easement to operate a network station in favour of Bewag Aktiengesellschaft, entered on 18.10.2001.
Comments
For the purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on
the current use of the Property. However, further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Heinrich-Heine-Straße 15
10179
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 15
10179
Berlin
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Rental and Investment Evidence
Rental Table
City
Date
Minimum
Average
Address
Date
Area
Monthly rent
Heinr.-Heine-Str. 15 (Office)
01.11.2012
Maximum
Nur Gewerbe?
Recent Lease Agreements
487 sq m
10.68 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
10179 Berlin
19.06.2013
93 sq m
10.00 €/sq m retail area, good access to public transport, normal condition
10179 Berlin
19.06.2013
305 sq m
9.90 €/sq m Office area, lift, good condition
10178 Berlin
19.06.2013
400 sq m
10.00 €/sq m Office area, lift, good condition
10179 Berlin
10.06.2013
220 sq m
10.00 €/sq m Office area, lift, good condition
10963 Berlin
10.06.2013
794 sq m
9.90 €/sq m office area, modern building
Sales Comparables from Board of Valuers
Address
Date
Alte Jakobstr., 10179 Berlin
29.04.2011
Area
3,209 sq m
Price p. sq m
Comments
1,652 € 7-storey mixed-use building, built 2000, refurbished, lift
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
10115 Berlin
06.06.2013
555 sq m
10179 Berlin
06.06.2013
3,000 sq m
Price p. sq m
Comments
2,254 € Mixed-use building, built 1998, refurbished, lift
1,600 € Apartment building, built 1995, partly refurbished, lift
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Heinrich-Heine-Straße 15
10179
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
010
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Mixed-use
2001
n/a
2,712 sq m
Freehold
No
7,998 sq m
3.82%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
791,525 €
827,304 €
897,366 €
116,014 €
14.66%
Net Operating Income
Net Cash Flow
675,511 €
637,050 €
SWOT-Analysis
Strengths
Weaknesses
Property is in a good conditon;
Located in central Berlin;
Vacancy rate is only 4%.
Residential units are let below market level;
High noise exposure due to location at a main road;
Property is listed in the register of contaminated sites.
Opportunities
Threats
Rent uplift potential for residential units;
Good investor demand for mixed-use buildings in that location.
Only fair residential area;
Commercial units in need of alteration works prior to re-letting.
Property and Location Rating
Property
2
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
18.2
4.41%
6.75%
968,695 €
Potential rental income
17.4
4.64%
per sq m
Market Value
Market rental income
16.0
5.10%
1,801 €
14,400,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Location and Property Description
Location Description
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
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
2
Additional
comments
(suitability of the
location)
The property is located in the district of Mitte.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
3
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
2
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
5
2 Mixed-use
2
3 Commercial use
2
No. of floors (incl.
ground floor)
8-10
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
129
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
Serious defects noted
2
14
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
n/a
Year of construction
2001
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
1
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
1
Additional
comments
The shopfront on ground level is made of metal.
Balconies are also at the rear side.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
2000
Electrical wiring
1
Water and sewage
pipes
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
Warm water supply 1 Central
2 Decentral
3
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
1
2
3
4
2
Technical installations are in a good condition due to installation in 2001.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
Fully refurbished
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Fully refurbished
Tenant structure
2
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
4
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
1
Floor covering
2
The two inspected residential units were in good condition.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
We have not detected obvious visible damage in the course of our external inspection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
2
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
3
Number of units
inspected
Residential
Commercial
2
1
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
1
1 = very good, 4 = poor
The property is in a good condition and almost all units
are currently let. We assume that the lettability is very
good and therefore no additional measures are required
to increase lettability.
Saleability
Additional
comments
1
1 = very good, 4 = poor
The property is in a good condition, almost all units are
currently let and the demand for comparable properties
is very high. We assume that saleability is very good and
that no promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
129
10
0
4
143
Total lettable area
7,151 sq m
847 sq m
0 sq m
0 sq m
7,998 sq m
Units let
128
7
0
4
139
Area let
7,053 sq m
639 sq m
0 sq m
0 sq m
7,692 sq m
Vacant units
1
3
0
0
4
Vacant area
97 sq m
208 sq m
0 sq m
0 sq m
305 sq m
Vacancy rate area
1.36%
24.56%
0.00%
0.00%
3.82%
Vacancy rate units
0.78%
30.00%
0.00%
0.00%
2.80%
Current rent sq m/month
8.43 €
9.96 €
0.00 €
0.00 €
8.57 €
464.28 €
909.29 €
0.00 €
41.75 €
474.54 €
713,140 €
76,381 €
0€
2,004 €
791,525 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
Market rent unit/month
Market rent p.a.
9.25 €
10.00 €
0.00 €
0.00 €
9.35 €
512.75 €
846.85 €
0.00 €
41.75 €
522.94 €
793,740 €
101,622 €
0€
2,004 €
897,366 €
Lettable area by use
Current rental income by use
Others
Commercial
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
8.10 €/sq m
8.10 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Cash Flow Analysis
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
Total Operating Expenses
% of Gross Revenue
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
825,300
-35,779
789,521
846,377
-31,644
814,733
867,462
-19,950
847,513
889,159
-7,848
881,310
911,712
-7,982
903,730
934,845
-8,117
926,728
958,574
-8,255
950,319
982,914 1,007,881 1,033,491 1,059,762
-8,396
-8,539
-8,684
-8,831
974,519 999,343 1,024,808 1,050,930
0
0
0
2,004
2,004
0
0
0
2,038
2,038
0
0
0
2,073
2,073
0
0
0
2,108
2,108
0
0
0
2,144
2,144
0
0
0
2,180
2,180
0
0
0
2,217
2,217
791,525
816,771
3.2%
849,585
4.0%
883,418
4.0%
905,874
2.5%
928,908
2.5%
952,536
2.5%
976,774 1,001,636 1,027,140 1,053,302
2.5%
2.5%
2.5%
2.5%
-31,737
-15,831
-39,476
0
-3,666
-25,305
0
-32,276
-16,335
-40,147
0
-3,278
-25,735
0
-32,825
-16,992
-40,830
0
-2,080
-26,173
0
-33,383
-17,668
-41,524
0
-841
-26,618
0
-33,951
-18,117
-42,230
0
-856
-27,070
0
-34,528
-18,578
-42,948
0
-870
-27,530
0
-35,115
-19,051
-43,678
0
-885
-27,998
0
-35,712
-19,535
-44,420
0
-900
-28,474
0
0
0
0
2,255
2,255
Year 8
0
0
0
2,293
2,293
-36,319
-20,033
-45,175
0
-915
-28,958
0
Year 9
Year 10
0
0
0
2,332
2,332
0
0
0
2,372
2,372
-36,936
-20,543
-45,943
0
-931
-29,451
0
-37,564
-21,066
-46,724
0
-947
-29,951
0
-116,014 -117,772 -118,900 -120,034 -122,223 -124,454 -126,726 -129,042 -131,400 -133,804 -136,252
14.7%
14.5%
14.0%
13.6%
13.5%
13.4%
13.3%
13.2%
13.1%
13.1%
13.0%
Net Operating Income
675,511
698,999
730,686
763,384
783,650
804,454
825,810
847,732
870,236
893,336
917,050
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-38,461
0
0
-44,293
0
0
-45,045
0
0
-45,811
0
0
-41,144
0
0
-41,843
0
0
-42,555
0
0
-43,278
0
-40,222
-44,014
0
0
-44,762
0
0
-45,523
0
0
Total Leasing and Capital Costs
-38,461
-44,293
-45,045
-45,811
-41,144
-41,843
-42,555
-83,500
-44,014
-44,762
-45,523
Net Cash Flow
% Growth
637,050
654,706
2.8%
685,640
4.7%
717,573
4.7%
742,506
3.5%
762,611
2.7%
783,255
2.7%
764,232
-2.4%
826,222
8.1%
848,574
2.7%
871,527
2.7%
4.2%
4.3%
4.5%
4.7%
4.8%
5.0%
5.1%
5.0%
5.4%
5.5%
5.7%
Gross Value
Gross Value per sq m
Net Cash Flow
5,480,552 €
9,839,181 €
15,319,732 €
1,916 €
1,000,000
6.0%
900,000
5.0%
800,000
700,000
4.0%
600,000
500,000
3.0%
400,000
2.0%
300,000
Purchaser's Costs
6.7%
200,000
Running Yield in %
Present Cash Flow Value @6.28% Discount Rate
Present Resale Value @4.75% Cap Rate
Net Cash Flow in €
Running Net Yield
1.0%
100,000
Net Value
14,351,037 €
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
14,400,000 €
Net Operating Income
1,801 €
16.0%
1,000,000
Multiple (current rent)
Multiple (potential rent)
18.2 x
17.4 x
Net Initial Yield
4.4%
Direct Cap Rate
4.2%
Net Operating Income in €
900,000
14.0%
800,000
12.0%
700,000
10.0%
600,000
8.0%
500,000
400,000
6.0%
300,000
4.0%
200,000
Total Operating Expenses in %
Market Value per sq m
2.0%
100,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Site Information
Site area
Thereof surplus land
2,712 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the Senate Administration of Berlin, dated 25
January 2008), the subject site is listed in the register of contaminated sites, no. 6908 due to former commercial
use. Refurbishment measures have been taken place in the soil and in the ground water. The situation of the
ground water is consistently monitored.
Public building
charges
The sites Annenstraße 47-51, Dresdner Straße 39-46 and Heinrich-Heine-Straße 15-29 (unveven) are regarded as
one site. Some areas serve as access, driveway and fire rescue path and some are not allowed to be oberbuilt or to
serve as distance space between buildings. We assume no influence on the value.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
Development plan dated
Designated use
Mixed-use area (Zoning Plan)
Site coverage ratio (GRZ)
Plot ratio (GFZ)
Additional comments
§ 34 BauGB: In the current zoning plan the site is designated as mixed-use area and can be developed in accordance with Article 34 of the
German Building and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
08/02/2012
Mitte
17081N
618
341
Annenhöfe Grundstücksverwaltungsgesellschaft mbH
Easement to maintain and operate an underground car park in favour of the respective owners of Mitte, pages 17074N,
17075N, 17076N, 17078N, 17080N, entered on 18.10.2001;
Easement to maintain and operate building services and to jointly use common installations in favour of the respective
owners of Mitte, pages 17074N, 17075N, 17076N, 17077N, 17078N, 17079N, 17080N, , entered on 18.10.2001;
Easement to jointly use outdoor installations in favour of the respective owners of Mitte, pages 17074N, 10075N,
17076N, 17077N, 17078N, 17079N, 17080N, entered on 18.10.2001;
Easement to use five underground car parking spaces in favour of the respective owner of Mitte, page 17079N, entered
on 18.10.2001;
Easement to use 13 underground car parking spaces in favour of the respective owner of Mitte, page 17077N, entered on
18.10.2001;
Easement to use 13 underground car parking spaces in favour of the respective owner of Mitte, page 17078N, entered on
18.10.2001.
Comments
For the purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on
the current use of the Property. However, further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
08/02/2012
Mitte
17078N
618
342
Annenhöfe Grundstücksverwaltungsgesellschaft mbH
Easement to maintain and operate an underground car park in favour of the respective owners of Mitte, pages 17074N,
17075N, 17076N, 17080N, 17081N, entered on 18.10.2001;
Easement to maintain and operate building services and to jointly use common installations in favour of the respective
owners of Mitte, pages 17074N, 17075N, 17076N, 17077N, 17079N, 17080N, 17081N, entered on 18.10.2001;
Easement to jointly use outdoor installations in favour of the respective owners of Mitte, pages 17074N, 10075N,
17076N, 17077N, 17079N, 17080N, 17081N entered on 18.10.2001;
Limited personal easement to operate installations for the refurbishment of the floor in favour of Bayerische Hausbau
GmbH, entered on 18.10.2001.
Comments
For the purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on
the current use of the Property. However, further developments or building extensions may be restricted.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
08/02/2012
Mitte
17077N
618
343
Annenhöfe Grundstücksverwaltungsgesellschaft mbH
Easement to maintain and operate building services and to jointly use common installations in favour of the respective
owners of Mitte, pages 17074N, 17075N, 17076N, 17078N, 17079N, 17080N, 17081N, entered on 18.10.2001;
Easement to jointly use outdoor installations in favour of the respective owners of Mitte, pages 17074N, 10075N,
17076N, 17078N, 17079N, 17080N, 17081N entered on 18.10.2001;
Limited personal easement to operate installations for the refurbishment of the floor in favour of Bayerische Hausbau
GmbH, entered on 18.10.2001.
Comments
For the purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on
the current use of the Property. However, further developments or building extensions may be restricted.
Page 8
SHORT REPORT
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Rental and Investment Evidence
Rental Table
City
Berlin, Mitte
Date
01.09.2012
Minimum
Average
6.30 €/sq m
7.10 €/sq m
Maximum
7.86 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Heinr.-Heine-Str. 27 (Off.)
01.09.2012
75 sq m
8.50 €/sq m
Heinr.-Heine-Str. 17 (Res.)
01.03.2013
54 sq m
10.50 €/sq m
Heinr.-Heine- Str. 27
01.02.2013
57 sq m
9.54 €/sq m
Heinr.-Heine-Str. 29 (Res.)
01.04.2013
61 sq m
10.16 €/sq m
Heinr.-Heine-Str. 19 (Res.)
01.02.2013
52 sq m
9.52 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
10179 Berlin
10.06.2013
97 sq m
9.27 €/sq m 3-room apartment, 7th floor, balcony, good condition
10179 Berlin
19.06.2013
77 sq m
9.00 €/sq m 2-room apartment, 4th floor, lift, good condition
10961 Berlin
19.06.2013
97 sq m
10178 Berlin
19.06.2013
400 sq m
10179 Berlin
19.06.2013
93 sq m
9.00 €/sq m 3.5-room apartment, 2nd floor, lift, good condition
10.00 €/sq m Office area, lift, good condition
10.00 €/sq m retail area, good access to public transport, normal condition
Sales Comparables from Board of Valuers
Address
Date
Alte Jakobstr., 10179 Berlin
29.04.2011
Area
3,209 sq m
Price p. sq m
Comments
1,652 € 7-storey mixed-use building, built 2000, refurbished, lift
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
10115 Berlin
06.06.2013
555 sq m
10179 Berlin
06.06.2013
3,000 sq m
Price p. sq m
Comments
2,254 € Mixed-use building, built 1998, refurbished, lift
1,600 € Apartment building, built 1995, partly refurbished, lift
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Heinrich-Heine-Straße 17, 19, 27, 29
10179
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
011
24120 - Annenhöfe - Berlin - Heinrich-Heine-Stra
Annenhöfe
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Residential block
1972
20,900 sq m
Freehold
Yes
16,166 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
1,005,687 €
1,005,687 €
1,718,065 €
256,284 €
25.48%
Net Operating Income
Net Cash Flow
749,404 €
668,573 €
SWOT-Analysis
Strengths
Weaknesses
Fully let
Sought-after residential location in the suburbs of Munich
Buildings above four storeys are fitted with elevators
All units are fitted with balconies
Well connected to the public transportation system.
Rent restriction until 31/12/2016
Apartments are of relatively low standard
Fairly unattractive external appearance
Only fair tenant structure
Opportunities
Threats
Sustainable high occupancy rate
Significant rental growth after expiry of rent restrictions
Good investor demand for apartment buildings in that location
Vacated apartments are likely in need of renovation before re-let
Comparatively high renovation costs due to building type and
structure
Potential presence of hazardous building materials
Property and Location Rating
Property
3
1 = very good, 6 = poor
2
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
20.0
3.56%
4.70%
945,633 €
Potential rental income
20.0
3.56%
per sq m
Market Value
Market rental income
11.7
6.94%
1,243 €
20,100,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
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
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
2
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
1
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
2
Additional
comments
(suitability of the
location)
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
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
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
No
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
Serious defects noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
3 to 8
216
n/a
182
Year of construction
1972
Remaining economic
lifetime
-
Guidance land value
(€/sq m)
-
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
3
Additional
comments
Some balconies facing the street.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
1993/2006
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
2
According to the Environmental Due Diligence report from Arcadis, dated 08/2005, the risk that the Property is contaminated with the
presence of asbestos is low. The estimated remediation costs for all potentially affected building components can be up to € 1,627,500 (for
both cluster 012 and 013).
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
Tenant structure
3
Fit-out bathroom
1
Floor covering
4
1
2
3
4
Very good
Good
Fair
Weak
3
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
3
None
Tiled
PVC
Wood, parquet or laminate flooring
We have not been provided with information about the refurbishment status of the apartments.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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.)
yes
no
no
no
no
no
no
no
no
There are some damages on the roof which are currently under repair. We have also noted some vandalised staircases.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
3
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
3
Number of units
inspected
Residential
Commercial
1
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and located in a soughtafter location in the suburbs of Munich. It provides
affordable rents when compared to the city of Munich.
Further, rents are restricted. We therefore assume the
lettability to be good.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and all units are
currently let. Investment demand for properties in
comparable locations is good. We assume that the
saleability is good and only minor promotional measures
are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
216
0
182
0
398
Total lettable area
16,166 sq m
0 sq m
0 sq m
0 sq m
16,166 sq m
Units let
216
0
150
0
366
Area let
16,166 sq m
0 sq m
0 sq m
0 sq m
16,166 sq m
Vacant units
0
0
32
0
32
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
17.58%
0.00%
8.04%
Current rent sq m/month
4.83 €
0.00 €
0.00 €
0.00 €
5.18 €
Current rent unit/month
Current rent p.a.
361.33 €
0.00 €
38.40 €
0.00 €
228.98 €
936,567 €
0€
69,120 €
0€
1,005,687 €
Market rent sq m/month
8.50 €
0.00 €
0.00 €
0.00 €
8.86 €
636.17 €
0.00 €
31.65 €
0.00 €
359.73 €
1,648,945 €
0€
69,120 €
0€
1,718,065 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Parking
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.00 €/sq m
11.00 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
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
936,567 1,013,497 1,089,885 1,172,079 1,260,520 1,355,685 1,458,086 1,568,273 1,686,839 1,814,424 1,951,712
0 -13,975 -14,212 -14,454 -14,700 -14,950 -15,204 -15,462 -15,725 -15,992 -16,264
936,567 999,522 1,075,673 1,157,625 1,245,820 1,340,736 1,442,882 1,552,811 1,671,114 1,798,431 1,935,448
69,120
0
0
0
69,120
75,294
0
0
0
75,294
81,658
0
0
0
81,658
88,216
0
0
0
88,216
89,716
0
0
0
89,716
91,241
0
0
0
91,241
92,792
0
0
0
92,792
94,369
0
0
0
94,369
95,974
0
0
0
95,974
97,605
0
0
0
97,605
99,264
0
0
0
99,264
1,005,687 1,074,816 1,157,330 1,245,841 1,335,536 1,431,976 1,535,674 1,647,180 1,767,088 1,896,036 2,034,712
6.9%
7.7%
7.6%
7.2%
7.2%
7.2%
7.3%
7.3%
7.3%
7.3%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-51,062 -51,930 -52,813 -53,711 -54,624 -55,553 -56,497 -57,458 -58,434 -59,428 -60,438
-20,114 -21,496 -23,147 -24,917 -26,711 -28,640 -30,713 -32,944 -35,342 -37,921 -40,694
-50,284 -51,139 -52,009 -52,893 -53,792 -54,706 -55,636 -56,582 -57,544 -58,522 -59,517
-7,280
-7,404
-7,530
-7,658
-7,788
-7,920
-8,055
-8,192
-8,331
-8,473
-8,617
0
-1,644
-1,672
-1,700
-1,729
-1,759
-1,789
-1,819
-1,850
-1,881
-1,913
-127,543 -129,711 -131,916 -134,159 -136,440 -138,759 -141,118 -143,517 -145,957 -148,438 -150,962
0
0
0
0
0
0
0
0
0
0
0
Total Operating Expenses
% of Gross Revenue
-256,284 -263,325 -269,087 -275,038 -281,084 -287,337 -293,809 -300,511 -307,458 -314,663 -322,141
27.4%
26.3%
25.0%
23.8%
22.6%
21.4%
20.4%
19.4%
18.4%
17.5%
16.6%
Net Operating Income
749,404
811,491
888,244
970,803 1,054,452 1,144,639 1,241,865 1,346,668 1,459,630 1,581,373 1,712,571
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-80,831 -82,205
0
0
0 -497,961
-83,602
0
0
-85,023
0
0
-86,469
0
0
-87,939
0
0
-89,434
0
0
-90,954
0
0
-92,500
0
0
-94,073
0
0
-95,672
0
0
Total Leasing and Capital Costs
-80,831 -580,166
-83,602
-85,023
-86,469
-87,939
-89,434
-90,954
-92,500
-94,073
-95,672
Net Cash Flow
% Growth
668,573
231,325
-65.4%
804,641
247.8%
885,779
10.1%
967,983 1,056,701 1,152,431 1,255,714 1,367,129 1,487,300 1,616,899
9.3%
9.2%
9.1%
9.0%
8.9%
8.8%
8.7%
3.2%
1.1%
3.8%
4.2%
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Value
1,303 €
5.0%
5.5%
6.0%
6.5%
7.1%
7.7%
Net Cash Flow
6,995,302 €
14,070,189 €
21,065,491 €
4.6%
4.7%
20,119,858 €
1,800,000
9.0%
1,600,000
8.0%
1,400,000
7.0%
1,200,000
6.0%
1,000,000
5.0%
800,000
4.0%
600,000
3.0%
400,000
2.0%
200,000
1.0%
0
Running Yield in %
Present Cash Flow Value @7.29% Discount Rate
Present Resale Value @5.75% Cap Rate
Net Cash Flow in €
Running Net Yield
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
20,100,000 €
Net Operating Income
20.0 x
20.0 x
Net Initial Yield
3.6%
Direct Cap Rate
3.2%
30.0%
1,800,000
1,600,000
25.0%
1,400,000
1,200,000
20.0%
1,000,000
15.0%
800,000
600,000
10.0%
400,000
5.0%
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
1,243 €
Net Operating Income in €
Market Value per sq m
200,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Site Information
Site area
Thereof surplus land
20,900 sq m
0 sq m
Guideline land value €/sq m
Date of guideline land value
Adjusted site value €/sq m
-
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Landratsamt
Munich, dated 24 January 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
Public building charges in Bavaria are entered in the land register (see below).
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
023 - zwischen Römerhofweg und Freisinger Landstrasse
Development plan dated
04.06.1971
Designated use
Residential area (WA)
Site coverage ratio (GRZ)
0.4
Plot ratio (GFZ)
0.9
Additional comments
Only flat roof permitted. We have not been provided with a detailed area calculation. In the event that the realized site coverage and/or plot
ratio exceed the maximum permitted site coverage and/or plot ratio, we assume that the building has the benefit of continuation permit and
that the property is not subject to any outstanding statutory notices regarding its construction.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
München
2137
124/2
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Right of way for the respective owner of parcel 124; entered 9/9/1970.
- Right of way and right for gas pipline in favour of the city of Munich; entered 3/8/1973.
- Limited right to appoint the tenants (Wohnungsbesetzungsrecht) in favour of the federal state of Bavaria; entered
03/08/1973.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then. We have considered the rent restriction situation in our Assumptions. For the purposes
of the valuation we have made the Assumption that the other easements do not have a detrimental effect on the current
use of the Property. However, further developments or building extensions may be restricted.
Page 7
SHORT REPORT
Römerhofweg 19-49
85748
Garching
DTZ No.
Cluster
Portfolio
Date of Valuation
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
München
2105
124/1
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Limited right to appoint the tenants (Wohnungsbesetzungsrecht) in favour of the federal state of Bavaria; entered
16/08/1972.
- Right of way and right for gas pipline in favour of the city of Munich; entered 14/08/1973.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then. We have considered the rent restriction situation in our Assumptions. For the purposes
of the valuation we assume that the other easements do not have a detrimental effect on the current use of the
Property. However, further developments or building extensions may be restricted.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/04/2011
München
2009
124/8
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Right of way for the respective owner of parcel 124; entered 09/09/1970.
- Right of way and right for gas pipline in favour of the city of Munich; entered 03/08/1973.
- Right for a transformation station and cable installation and right of way in favour of Isar-Amperwerke AG, München;
entered 03/08/1973.
- Limited right to choose the tenants (Wohnungsbesetzungsrecht) in favour of the federal state of Bavaria; entered
03/08/1973.
Comments
We have been provided with a copy of an extract from the land register dated 27/04/2011. We assume that there have
not been any changes since then. We have considered the rent restriction situation in our Assumptions. For the purposes
of the valuation we assume that the other easements do not have a detrimental effect on the current use of the
Property. However, further developments or building extensions may be restricted.
Page 8
SHORT REPORT
Römerhofweg 19-49
85748
Garching
DTZ No.
Cluster
Portfolio
Date of Valuation
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 19-49
85748
Garching
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Rental and Investment Evidence
Rental Table
City
Garching
Date
01.01.2002
Minimum
Average
6.84 €/sq m
8.14 €/sq m
Maximum
9.44 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Römerhofweg 49 (Res.)
01.12.2012
77 sq m
4.89 €/sq m
Römerhofweg 45 (Res.)
01.12.2012
44 sq m
4.89 €/sq m
Römerhofweg 33 (Res.)
01.10.2012
44 sq m
4.89 €/sq m
Römerhofweg 41 (Res.)
01.09.2012
79 sq m
4.89 €/sq m
Römerhofweg 43 (Res.)
01.08.2012
86 sq m
4.97 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
85748 Garching
05.06.2013
80 sq m
8.75 €/sq m 2-room apartment, attic floor
85737 Ismaning
12.06.2013
93 sq m
9.68 €/sq m 4-room apartment, built 1970, 3rd floor
85748 Garching
05.06.2013
80 sq m
10.00 €/sq m 3-room apartment, refurbished, attic floor
85748 Garching
05.06.2013
118 sq m
10.34 €/sq m 4.5-room apartment, attic floor
85748 Garching
05.06.2013
73 sq m
10.55 €/sq m 3-room apartment, ground floor
Sales Comparables from Board of Valuers
Address
82110 Munich
Date
15.02.2012
Area
70,000 sq m
Price p. sq m
Comments
2,000 € Two residential blocks, built 1968-1972, better located
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
84478 Waldkraiburg
13.06.2013
10,496 sq m
1,105 € Apartment building, built 1978
86154 Augsburg
13.06.2013
2,030 sq m
1,182 € Apartment building, built 1959
84513 Töging
13.06.2013
1,002 sq m
1,248 € Apartment building, built 1990, 18 apartments
94474 Vilshofen
13.06.2013
1,823 sq m
1,289 € Apartment building, newly build, subzidized
86169 Augsburg
13.06.2013
1,869 sq m
1,317 € Apartment building, built 1955, 36 apartments
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Römerhofweg 19-49
85748
Garching
DTZ No.
Cluster
Portfolio
Date of Valuation
012
24310 - Resi 2 - Garching - Römerhofweg (Koste
Resi 2
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Residential block
1972
14,391 sq m
Freehold
No
8,613 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
679,765 €
679,765 €
906,800 €
136,442 €
20.07%
Net Operating Income
Net Cash Flow
543,323 €
500,259 €
SWOT-Analysis
Strengths
Weaknesses
Fully let
Sought-after residential location in the suburbs of Munich
Buildings above four storeys are fitted with elevators
All units are fitted with balconies
Well contected to public transport
Apartments are of relatively low standard
Fairly unattractive external appearance
Only fair tenant structure
Opportunities
Threats
Sustainable high occupancy rate
Significant rental growth after expiry of rent restrictions
Good investor demand for apartment buildings in that location
Vacated apartments are likely in need of renovation before re-let
Comparatively high renovation costs due to building type and
structure
Potential presence of hazardous building materials
Property and Location Rating
Property
3
1 = very good, 6 = poor
2
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
16.3
4.67%
5.25%
580,134 €
Potential rental income
16.3
4.67%
per sq m
Market Value
Market rental income
12.2
6.62%
1,289 €
11,100,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
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
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
2
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
1
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
2
Additional
comments
(suitability of the
location)
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
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
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
No
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
Serious defects noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
9
102
n/a
102
Year of construction
1972
Remaining economic
lifetime
-
Guidance land value
(€/sq m)
-
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
3
Additional
comments
Some balconies facing the street.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
1993
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
2
According to the Environmental Due Diligence report from Arcadis, dated 08/2005, the risk that the Property is contaminated with the
presence of asbestos is low. The estimated remediation costs for all potentially affected building components can be up to € 1,627,500 (for
both cluster 012 and 013).
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
Tenant structure
3
Fit-out bathroom
1
Floor covering
4
1
2
3
4
Very good
Good
Fair
Weak
3
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
3
None
Tiled
PVC
Wood, parquet or laminate flooring
We have not been provided with information about the refurbishment status of the apartments.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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.)
yes
no
no
no
no
no
no
no
no
We have detect one (of six) vandalised staircase.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
3
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
2
Number of units
inspected
Residential
Commercial
0
0
We were not able to inspect a residential unit within the subject property, however, we have inspected one apartment in the neighbouring
property (012).
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and located in a soughtafter location in the suburbs of Munich. It provides
affordable rents when compared to the city of Munich.
Further, rents are restricted. We therefore assume the
lettability to be good.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and all units are
currently let. Investment demand for properties in
comparable locations is good. We assume that the
saleability is good and only minor promotional measures
are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
102
0
102
0
204
Total lettable area
8,613 sq m
0 sq m
0 sq m
0 sq m
8,613 sq m
Units let
102
0
70
0
172
Area let
8,613 sq m
0 sq m
0 sq m
0 sq m
8,613 sq m
Vacant units
0
0
32
0
32
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
31.37%
0.00%
15.69%
Current rent sq m/month
6.30 €
0.00 €
0.00 €
0.00 €
6.58 €
Current rent unit/month
Current rent p.a.
532.25 €
0.00 €
33.69 €
0.00 €
329.34 €
651,469 €
0€
28,296 €
0€
679,765 €
Market rent sq m/month
8.50 €
0.00 €
0.00 €
0.00 €
8.77 €
717.73 €
0.00 €
23.12 €
0.00 €
370.42 €
878,504 €
0€
28,296 €
0€
906,800 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Parking
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.00 €/sq m
11.00 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Cash Flow Analysis
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
Total Operating Expenses
% 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
651,469
0
651,469
684,409
-7,445
676,964
716,940
-7,572
709,368
751,023
-7,701
743,323
786,734
-7,832
778,903
824,151
-7,965
816,186
863,354
-8,100
855,254
904,430
-8,238
896,192
947,467
-8,378
939,089
992,560 1,039,808
-8,520
-8,665
984,040 1,031,143
28,296
0
0
0
28,296
33,162
0
0
0
33,162
38,185
0
0
0
38,185
43,370
0
0
0
43,370
44,107
0
0
0
44,107
44,857
0
0
0
44,857
45,620
0
0
0
45,620
46,395
0
0
0
46,395
47,184
0
0
0
47,184
679,765
710,126
4.5%
747,553
5.3%
786,693
5.2%
823,010
4.6%
861,043
4.6%
900,874
4.6%
942,587
4.6%
986,273 1,032,026 1,079,945
4.6%
4.6%
4.6%
-24,026
-13,595
-33,988
-4,080
0
-60,752
0
-24,434
-14,203
-34,566
-4,149
-876
-61,785
0
-24,850
-14,951
-35,154
-4,220
-891
-62,835
0
-25,272
-15,734
-35,751
-4,292
-906
-63,904
0
-25,702
-16,460
-36,359
-4,365
-921
-64,990
0
-26,139
-17,221
-36,977
-4,439
-937
-66,095
0
-26,583
-18,017
-37,606
-4,514
-953
-67,218
0
-27,035
-18,852
-38,245
-4,591
-969
-68,361
0
-27,495
-19,725
-38,895
-4,669
-986
-69,523
0
47,986
0
0
0
47,986
48,802
0
0
0
48,802
-27,962
-20,641
-39,556
-4,748
-1,002
-70,705
0
-28,437
-21,599
-40,229
-4,829
-1,019
-71,907
0
-136,442 -140,013 -142,901 -145,859 -148,797 -151,807 -154,892 -158,053 -161,293 -164,615 -168,021
20.9%
20.7%
20.1%
19.6%
19.1%
18.6%
18.1%
17.6%
17.2%
16.7%
16.3%
Net Operating Income
543,323
570,113
604,652
640,834
674,213
709,236
745,982
784,534
824,980
867,411
911,924
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-43,064 -43,796
0
0
0 -461,913
-44,541
0
0
-45,298
0
0
-46,068
0
0
-46,851
0
0
-47,647
0
0
-48,457
0
0
-49,281
0
0
-50,119
0
0
-50,971
0
0
Total Leasing and Capital Costs
-43,064 -505,709
-44,541
-45,298
-46,068
-46,851
-47,647
-48,457
-49,281
-50,119
-50,971
Net Cash Flow
% Growth
500,259
64,404
-87.1%
560,112
769.7%
595,536
6.3%
628,145
5.5%
662,385
5.5%
698,334
5.4%
736,077
5.4%
775,699
5.4%
817,292
5.4%
860,953
5.3%
4.3%
0.6%
4.8%
5.1%
5.4%
5.7%
6.0%
6.3%
6.7%
7.0%
7.4%
Gross Value
Gross Value per sq m
Net Cash Flow
4,177,241 €
7,453,056 €
11,630,297 €
1,350 €
1,000,000
8.0%
900,000
7.0%
800,000
6.0%
700,000
5.0%
600,000
500,000
4.0%
400,000
3.0%
300,000
Purchaser's Costs
2.0%
5.3%
200,000
1.0%
100,000
Net Value
Running Yield in %
Present Cash Flow Value @7.29% Discount Rate
Present Resale Value @5.75% Cap Rate
Net Cash Flow in €
Running Net Yield
11,050,163 €
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
11,100,000 €
Net Operating Income
1,289 €
25.0%
1,000,000
Multiple (current rent)
Multiple (potential rent)
16.3 x
16.3 x
Net Initial Yield
4.7%
Direct Cap Rate
4.3%
Net Operating Income in €
900,000
20.0%
800,000
700,000
600,000
15.0%
500,000
10.0%
400,000
300,000
5.0%
200,000
Total Operating Expenses in %
Market Value per sq m
100,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Site Information
Site area
Thereof surplus land
14,391 sq m
0 sq m
Guideline land value €/sq m
Date of guideline land value
Adjusted site value €/sq m
-
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Landratsamt
Munich, dated 24 January 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
Public building charges in Bavaria are entered in the land register (see below).
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
023 - zwischen Römerhofweg und Freisinger Landstrasse
Development plan dated
04.06.1971
Designated use
Residential area (WA)
Site coverage ratio (GRZ)
0.4
Plot ratio (GFZ)
0.9
Additional comments
Only flat roof permitted. We have not been provided with a detailed area calculation. In the event that the realized site coverage and/or plot
ratio exceed the maximum permitted site coverage and/or plot ratio, we assume that the building has the benefit of continuation permit and
that the property is not subject to any outstanding statutory notices regarding its construction.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
München
2106
1882; 1882/8
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Right of way and right for gas pipline in favour of the city of Munich; entered 14/8/1973.
- Right for a transformation station and for cable installation and right of way in favour of Isar-Amperwerke AG,
München; entered 27/8/1973.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
do not have a detrimental effect on the current use of the Property. However, further developments or building
extensions may be restricted.
Page 7
SHORT REPORT
Römerhofweg 51-51e
85748
Garching
DTZ No.
Cluster
Portfolio
Date of Valuation
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Römerhofweg 51-51e
85748
Garching
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Rental and Investment Evidence
Rental Table
City
Garching
Date
01.01.2002
Minimum
Average
6.84 €/sq m
8.14 €/sq m
Maximum
9.44 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Römerhofweg 51 (Res.)
15.03.2013
35 sq m
Römerhofweg 51c (Res.)
01.12.2012
98 sq m
13.31 €/sq m
9.00 €/sq m
Römerhofweg 51 (Res.)
15.09.2012
35 sq m
10.00 €/sq m
Römerhofweg 51a (Res.)
01.09.2012
79 sq m
8.50 €/sq m
Römerhofweg 51 (Res.)
01.09.2012
98 sq m
8.00 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
85748 Garching
05.06.2013
80 sq m
8.75 €/sq m 2-room apartment, attic floor
85737 Ismaning
12.06.2013
93 sq m
9.68 €/sq m 4-room apartment, built 1970, 3rd floor
85748 Garching
05.06.2013
80 sq m
10.00 €/sq m 3-room apartment, refurbished, attic floor
85748 Garching
05.06.2013
118 sq m
10.34 €/sq m 4.5-room apartment, attic floor
85748 Garching
05.06.2013
73 sq m
10.55 €/sq m 3-room apartment, ground floor
Sales Comparables from Board of Valuers
Address
82110 Munich
Date
15.02.2012
Area
70,000 sq m
Price p. sq m
Comments
2,000 € Two residential blocks, built 1968-1972, better located
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
84478 Waldkraiburg
13.06.2013
10,496 sq m
1,105 € Apartment building, built 1978
86154 Augsburg
13.06.2013
2,030 sq m
1,182 € Apartment building, built 1959
84513 Töging
13.06.2013
1,002 sq m
1,248 € Apartment building, built 1990, 18 apartments
94474 Vilshofen
13.06.2013
1,823 sq m
1,289 € Apartment building, newly build, subzidized
86169 Augsburg
13.06.2013
1,869 sq m
1,317 € Apartment building, built 1955, 36 apartments
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Römerhofweg 51-51e
85748
Garching
DTZ No.
Cluster
Portfolio
Date of Valuation
013
24310 - Resi 2 - Garching - Römerhofweg 51-51e
Resi 2
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Residential block
1963
26,110 sq m
Freehold
No
15,544 sq m
1.38%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
1,075,238 €
1,095,822 €
1,544,727 €
258,673 €
24.06%
Net Operating Income
Net Cash Flow
816,565 €
739,916 €
SWOT-Analysis
Strengths
Weaknesses
Fully let
Sought-after residential location in the suburbs of Munich
Buildings are fitted with elevators
All units are fitted with balconies
Unattractive apperance of the facades and common areas
Apartments are of relatively low standard
Only fair tenant structure
Opportunities
Threats
Sustainable high occupancy rate
Raise rental level due to re-lettings
Good investor demand for apartment buildings in that location
Vacated apartments are likely in need of renovation before re-let
Comparatively high renovation costs due to building type and
structure
Potential presence of hazardous building materials
Property and Location Rating
Property
4
1 = very good, 6 = poor
2
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
17.0
4.24%
5.25%
960,681 €
Potential rental income
16.7
4.35%
per sq m
Market Value
Market rental income
11.8
6.68%
1,177 €
18,300,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
Property No. 72-78 is located close to a rail track, which
is, however, behind noise barriers.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
3
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
2
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
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
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
No
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
Serious defects noted
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
8
3 to 6
240
4
184
Year of construction
1963
Remaining economic
lifetime
-
Guidance land value
(€/sq m)
-
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
3
Additional
comments
The 3-storey buildings are of brickwork and constructed
with pitched tiled roofs, which are appearently not
insulated.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
2003
Electrical wiring
n/a
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
2
According to the Environmental Due Diligence report from Arcadis, dated 08/2005, the risk that the Property is contaminated with the
presence of asbestos is low. The estimated remediation costs for all potentially affected building components can be up to € 468,000.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
Fit-out bathroom
n/a
Floor covering
n/a
1
2
3
4
Very good
Good
Fair
Weak
3
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
n/a
None
Tiled
PVC
Wood, parquet or laminate flooring
We were not able to inspect a residential unit. We have not been provided with information about the refurbishment status of the
apartments.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
yes
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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.)
yes
no
no
no
no
no
no
no
no
Primarily the entrance and common area of building 38 are in need of refurbishment.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
4
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
2
Number of units
inspected
Residential
Commercial
0
0
At the date of inspection the property appears to be fully let.
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fairly poor condition and located in a
sought-after location in the suburbs of Munich. It
provides affordable rents when compared to the city of
Munich. Further, rents are restricted. We therefore
assume the lettability to be good.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fairly poor condition. As at the date
of inspection all units were let. Investment demand for
comparable properties in the region of Munich is good.
We assume that the saleability is good and only minor
promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
240
0
184
0
424
Total lettable area
15,544 sq m
0 sq m
0 sq m
0 sq m
15,544 sq m
Units let
236
0
167
0
403
Area let
15,330 sq m
0 sq m
0 sq m
0 sq m
15,330 sq m
Vacant units
4
0
17
0
21
Vacant area
214 sq m
0 sq m
0 sq m
0 sq m
214 sq m
Vacancy rate area
1.38%
0.00%
0.00%
0.00%
1.38%
Vacancy rate units
1.67%
0.00%
9.24%
0.00%
4.95%
Current rent sq m/month
5.56 €
0.00 €
0.00 €
0.00 €
5.85 €
Current rent unit/month
Current rent p.a.
361.14 €
0.00 €
26.19 €
0.00 €
222.34 €
1,022,745 €
0€
52,493 €
0€
1,075,238 €
Market rent sq m/month
8.00 €
0.00 €
0.00 €
0.00 €
8.28 €
518.14 €
0.00 €
23.77 €
0.00 €
303.60 €
1,492,235 €
0€
52,493 €
0€
1,544,727 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Parking
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.00 €/sq m
11.00 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
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
1,043,329 1,101,163 1,158,610 1,219,614 1,285,822 1,355,641 1,429,271 1,506,919 1,588,804 1,675,159 1,766,227
-20,584 -26,487 -19,899 -13,080 -13,303 -13,529 -13,759 -13,993 -14,231 -14,473 -14,719
1,022,745 1,074,677 1,138,711 1,206,534 1,272,519 1,342,113 1,415,512 1,492,926 1,574,574 1,660,687 1,751,509
52,493
0
0
0
52,493
55,197
0
0
0
55,197
57,977
0
0
0
57,977
60,836
0
0
0
60,836
61,871
0
0
0
61,871
62,922
0
0
0
62,922
63,992
0
0
0
63,992
65,080
0
0
0
65,080
66,186
0
0
0
66,186
67,312
0
0
0
67,312
68,456
0
0
0
68,456
1,075,238 1,129,873 1,196,688 1,267,370 1,334,390 1,405,035 1,479,504 1,558,006 1,640,760 1,727,998 1,819,965
5.1%
5.9%
5.9%
5.3%
5.3%
5.3%
5.3%
5.3%
5.3%
5.3%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-56,250 -57,206 -58,179 -59,168 -60,173 -61,196 -62,237 -63,295 -64,371 -65,465 -66,578
-21,505 -22,597 -23,934 -25,347 -26,688 -28,101 -29,590 -31,160 -32,815 -34,560 -36,399
-53,762 -54,676 -55,605 -56,551 -57,512 -58,490 -59,484 -60,495 -61,524 -62,570 -63,633
-7,360
-7,485
-7,612
-7,742
-7,873
-8,007
-8,143
-8,282
-8,423
-8,566
-8,711
-2,573
-3,311
-2,487
-1,635
-1,663
-1,691
-1,720
-1,749
-1,779
-1,809
-1,840
-117,223 -119,216 -121,243 -123,304 -125,400 -127,532 -129,700 -131,905 -134,147 -136,428 -138,747
0
0
0
0
0
0
0
0
0
0
0
Total Operating Expenses
% of Gross Revenue
-258,673 -264,491 -269,060 -273,746 -279,310 -285,017 -290,874 -296,886 -303,058 -309,397 -315,909
25.3%
24.6%
23.6%
22.7%
21.9%
21.2%
20.5%
19.9%
19.2%
18.6%
18.0%
Net Operating Income
816,565
865,382
927,628
993,624 1,055,080 1,120,018 1,188,630 1,261,120 1,337,702 1,418,601 1,504,056
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-76,648 -81,586
0
0
0 -342,231
-82,973
0
0
-84,383
0
0
-81,995
0
0
-83,389
0
0
-84,806
0
0
-86,248
0
0
-87,714
0
0
-89,206
0
0
-90,722
0
0
Total Leasing and Capital Costs
-76,648 -423,817
-82,973
-84,383
-81,995
-83,389
-84,806
-86,248
-87,714
-89,206
-90,722
Net Cash Flow
% Growth
739,916
441,565
-40.3%
844,655
91.3%
909,241
7.6%
973,085 1,036,629 1,103,824 1,174,872 1,249,987 1,329,395 1,413,334
7.0%
6.5%
6.5%
6.4%
6.4%
6.4%
6.3%
3.8%
2.3%
4.4%
4.7%
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Value
1,239 €
5.4%
5.7%
6.1%
6.5%
6.9%
7.3%
Net Cash Flow
6,902,303 €
12,357,065 €
19,259,369 €
5.1%
5.3%
18,298,688 €
1,600,000
8.0%
1,400,000
7.0%
1,200,000
6.0%
1,000,000
5.0%
800,000
4.0%
600,000
3.0%
400,000
2.0%
200,000
1.0%
0
Running Yield in %
Present Cash Flow Value @7.29% Discount Rate
Present Resale Value @5.75% Cap Rate
Net Cash Flow in €
Running Net Yield
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
18,300,000 €
Net Operating Income
Net Initial Yield
Direct Cap Rate
17.0 x
16.7 x
4.2%
3.8%
1,600,000
30.0%
1,400,000
25.0%
1,200,000
20.0%
1,000,000
800,000
15.0%
600,000
10.0%
400,000
5.0%
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
1,177 €
Net Operating Income in €
Market Value per sq m
200,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Site Information
Site area
Thereof surplus land
26,110 sq m
0 sq m
Guideline land value €/sq m
Date of guideline land value
Adjusted site value €/sq m
-
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Landratsamt
Ebersberg, dated 16 January 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
Public building charges in Bavaria are entered in the land register (see below).
Leasehold
Ground rent € p.a.
No
n/a
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
Nr. 30
Development plan dated
21.05.1964
Designated use
Residential area (WA)
Site coverage ratio (GRZ)
0.2
Plot ratio (GFZ)
0.6
Additional comments
We have not been provided with a detailed area calculation. In the event that the realized site coverage and/or plot ratio exceed the maximum
permitted site coverage and/or plot ratio, we assume that the building has the benefit of continuation permit and that the property is not
subject to any outstanding statutory notices regarding its construction.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
Ebersberg
3245
211/3; 211/4; 211/10; 211/11; 211/12; 211/13; 211/14
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
There are no entries in section II.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then.
Page 7
SHORT REPORT
Kirchseeoner Weg 34-78
85614
Kirchseeon
DTZ No.
Cluster
Portfolio
Date of Valuation
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
Ebersberg
6574
211/5; 211/6; 211/7; 211/8
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Right for a transformation station in favour of Isar-Amperwerke AG, München; entered 11/08/1969.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then.
The owner of the subject parcels has the right to receive heating from the respetive owner of parcel 211/2, according to
four land charges entered in section I of this land register. Parcel 211/2 constists to the subject property. We therefore
assume that this obligation do not have a detrimental effect on the current use of the Property.
For the purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on
the current use of the Property. However, further developments or building extensions may be restricted.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
Ebersberg
6575
211/2
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Land charge referring the delivery of heating in favour of the respective owners of parcels 211, 211/1, 211/5, 211/6,
211/7 and 211/8; entered 17/11/1967.
- Right for a pipeline in favour of the respective owners of parcels 211, 211/1, 211/5, 211/6, 211/7 and 211/8; entered
17/11/1967.
- Right to use the garage in favour of the respective owener of parcel 211/1; entered 17/11/1967.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then. The related parcels of the land charge are all parts of the subject property. For the
purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on the
current use of the Property. However, further developments or building extensions may be restricted.
Page 8
SHORT REPORT
Kirchseeoner Weg 34-78
85614
Kirchseeon
DTZ No.
Cluster
Portfolio
Date of Valuation
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
Ebersberg
6576
211
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Obligation to receive heating and renouncement to install heating systems in favour of the respective owner of parcel
211/2; entered 17/11/1967.
- Right for a transformation station in favour of Isar-Amperwerke AG, München; entered 10/02/1969.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then. The owner of the subject parcel have the right to receive heating from parcel 211/2,
according to a land charge entered in section I of this land register. We assume that there are no deterimental effects to
the value from the entries in this land register.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Kirchseeon
Ebersberg
6577
211/1
Babcock & Brown Residential Property 2 S.á.r.l. Co. KG, Grünwald
- Obligation to receive heating and renouncement to install heating systems in favour of the respective owner of parcel
211/2; entered 17/11/1967.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then.
The owner of the subject parcel has the rights to receive heating from parcel 211/2 and to use the garages on parcel
211/2 according to two land charge entered in section I of this land register.
For the purposes of the valuation we have made the Assumption that the easements do not have a detrimental effect on
the current use of the Property. However, further developments or building extensions may be restricted.
Page 9
SHORT REPORT
Kirchseeoner Weg 34-78
85614
Kirchseeon
DTZ No.
Cluster
Portfolio
Date of Valuation
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 10
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Kirchseeoner Weg 34-78
85614
Kirchseeon
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Rental and Investment Evidence
Rental Table
City
n/a
Date
Minimum
n/a
Average
n/a
Maximum
n/a
n/a
Recent Lease Agreements
Address
Date
Area
Monthly rent
Kirchsee. Weg 36 (Res.)
01.04.2013
47 sq m
9.57 €/sq m
Kirchsee. Weg 78 (Res.)
01.04.2013
72 sq m
9.00 €/sq m
Kirchsee. Weg 42 (Res.)
01.02.2013
71 sq m
9.49 €/sq m
Kirchsee. Weg 36 (Res.)
01.01.2013
57 sq m
8.36 €/sq m
Kirchsee. Weg 48 (Res.)
01.11.2012
70 sq m
7.95 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
85614 Kirchseeon
12.06.2013
71 sq m
8.25 €/sq m 2.5-room apartment, built 1979, renovated 2010, 1st floor
85614 Kirchseeon
12.06.2013
59 sq m
8.31 €/sq m 2-room apartment, 4th floor
85614 Kirchseeon
05.06.2013
72 sq m
85614 Kirchseeon
05.06.2013
38 sq m
10.00 €/sq m 1-room apartment, built 1991, ground floor
85614 Kirchseeon
05.06.2013
45 sq m
10.86 €/sq m 1-room apartment, built 1996, ground floor
9.03 €/sq m 3-room apartment, renovated, 1st floor
Sales Comparables from Board of Valuers
Address
82110 Munich
Date
15.02.2012
Area
70,000 sq m
Price p. sq m
Comments
2,000 € Two residential blocks, built 1968-1972, better located
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
84478 Waldkraiburg
13.06.2013
10,496 sq m
1,105 € Apartment building, built 1978
86154 Augsburg
13.06.2013
2,030 sq m
1,182 € Apartment building, built 1959
84513 Töging
13.06.2013
1,002 sq m
1,248 € Apartment building, built 1990, 18 apartments
94474 Vilshofen
13.06.2013
1,823 sq m
1,289 € Apartment building, newly build, subzidized
86169 Augsburg
13.06.2013
1,869 sq m
1,317 € Apartment building, built 1955, 36 apartments
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 11
SHORT REPORT
Kirchseeoner Weg 34-78
85614
Kirchseeon
DTZ No.
Cluster
Portfolio
Date of Valuation
014
24310 - Resi 2 - Kirchseeon - Kirchseeoner Weg
Resi 2
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 12
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Residential block
1976
n/a
2,720 sq m
Freehold
No
2,836 sq m
14.99%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
147,683 €
175,733 €
187,176 €
53,844 €
36.46%
Net Operating Income
Net Cash Flow
93,840 €
81,785 €
SWOT-Analysis
Strengths
Weaknesses
Good macro location, strong housing market
Social hot spot;
Weak tenant structure;
Let below market level
Opportunities
Threats
Rental uplift;
Leasing up vacant space
Modernisation risk due to potential contamination of façade
elements.
Potential presence of hazardous building materials.
Property and Location Rating
Property
4
1 = very good, 6 = poor
4
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
12.9
4.70%
7.90%
146,270 €
Potential rental income
10.8
6.10%
per sq m
Market Value
Market rental income
10.2
6.67%
670 €
1,900,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
1
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
4
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
4
Additional
comments
(suitability of the
location)
The subject residential block is known as social hot spot
in Münster.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
1
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
4
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
4
2 Mixed-use
2
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
No
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
n/a
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
1
4
42
n/a
17
Year of construction
1976
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
The façade is partly cladded with elements of Eternit and
partly of sand-lime brick; window reveals and balconies
show noticable signs of tear and wear.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
1995
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
2
Considering the year of construction it is likely that the façade elements are contaminated with asbestos. Additional costs may arise in case
of an extensive refurbishment. We are of the opinion that there is currently no reason to indicate that a removal of the elements is
required. We have not reflected additional costs in our valuation. According to the Environmental Due Diligence provided, dated 03/2005,
the estimated remediation costs for all potentially affected building components can be up to € 3,619,800 (for cluster 015 and 016).
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
Tenant structure
3
Fit-out bathroom
1
Floor covering
4
1
2
3
4
Very good
Good
Fair
Weak
4
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
3
None
Tiled
PVC
Wood, parquet or laminate flooring
The residential block forms a social hot spot in Münster. However, the letting market in Münster is tight. A few flats have already been let to
students. Nevertheless, the tenant structure is not expected to improve considerably. The apartments occupied by students are fitted with
kichenette and laminate flooring. A security service is to prevent vandalism. The costs for this service are not attributable to the tenants.
We are not aware of the actual costs for this service yet. We have requested these information during the Q&A process.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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
no
no
no
no
no
no
no
no
Additional
comments
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
4
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
1
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
3
1 = very good, 4 = poor
The subject property forms a social hot spot in Münster.
It is in a fairly poor condition and shows a considerable
vacancy. We assume that the lettability is fair. There is a
chance to increase the occupancy rate in line with the
increasing demand for affordable rental apartments in
Münster.
Saleability
Additional
comments
3
1 = very good, 4 = poor
The property is in a fairly poor condition and shows a
considerable vacancy and the demand for comparable
properties is fair. We assume that the saleability is fair
so that additional promotional measures are required.
On the other hand, Münster is a popular investment
location for residential properties.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
42
0
17
0
59
Total lettable area
2,836 sq m
0 sq m
0 sq m
0 sq m
2,836 sq m
Units let
36
0
0
0
36
Area let
2,411 sq m
0 sq m
0 sq m
0 sq m
2,411 sq m
Vacant units
6
0
17
0
23
Vacant area
425 sq m
0 sq m
0 sq m
0 sq m
425 sq m
Vacancy rate area
14.99%
0.00%
0.00%
0.00%
14.99%
Vacancy rate units
14.29%
0.00%
100.00%
0.00%
38.98%
5.10 €
0.00 €
0.00 €
0.00 €
5.10 €
Current rent sq m/month
Current rent unit/month
Current rent p.a.
341.86 €
0.00 €
0.00 €
0.00 €
341.86 €
147,683 €
0€
0€
0€
147,683 €
Market rent sq m/month
5.50 €
0.00 €
0.00 €
0.00 €
5.50 €
371.38 €
0.00 €
0.00 €
0.00 €
264.37 €
187,176 €
0€
0€
0€
187,176 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Parking
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Cash Flow Analysis
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
175,733
-28,050
147,683
179,506
-23,301
156,205
183,202
-14,269
168,933
187,115
-4,922
182,193
191,684
-5,006
186,678
196,364
-5,091
191,274
201,160
-5,177
195,982
206,072
-5,265
200,807
211,105
-5,355
205,750
216,261
-5,446
210,815
221,544
-5,539
216,005
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
147,683
156,205
5.8%
168,933
8.1%
182,193
7.8%
186,678
2.5%
191,274
2.5%
195,982
2.5%
200,807
2.5%
205,750
2.5%
210,815
2.5%
216,005
2.5%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-9,660
-2,954
-7,384
-680
-5,100
-28,066
0
-9,824
-3,124
-7,510
-692
-4,237
-28,543
0
-9,991
-3,379
-7,637
-703
-2,594
-29,028
0
-10,161
-3,644
-7,767
-715
-895
-29,522
0
-10,334
-3,734
-7,899
-727
-910
-30,024
0
-10,509
-3,825
-8,034
-740
-926
-30,534
0
-10,688
-3,920
-8,170
-752
-941
-31,053
0
-10,870
-4,016
-8,309
-765
-957
-31,581
0
-11,055
-4,115
-8,450
-778
-974
-32,118
0
-11,243
-4,216
-8,594
-791
-990
-32,664
0
-11,434
-4,320
-8,740
-805
-1,007
-33,219
0
Total Operating Expenses
% of Gross Revenue
-53,844
36.5%
-53,929
34.5%
-53,333
31.6%
-52,704
28.9%
-53,628
28.7%
-54,568
28.5%
-55,525
28.3%
-56,498
28.1%
-57,489
27.9%
-58,498
27.7%
-59,525
27.6%
Net Operating Income
93,840
102,276
115,600
129,489
133,050
136,706
140,458
144,308
148,261
152,317
156,481
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-12,055
0
0
-19,464
0
-86,181
-19,795
0
-45,595
-20,131
0
-46,370
-12,896
0
0
-13,115
0
0
-13,338
0
0
-13,565
0
0
-13,795
0
0
-14,030
0
0
-14,268
0
0
Total Leasing and Capital Costs
-12,055 -105,644
-65,390
-66,501
-12,896
-13,115
-13,338
-13,565
-13,795
-14,030
-14,268
-3,368
50,210
-104.1% n/a
62,987
25.4%
120,154
90.8%
123,591
2.9%
127,120
2.9%
130,744
2.9%
134,465
2.8%
138,287
2.8%
142,212
2.8%
3.2%
6.0%
6.2%
6.4%
6.5%
6.7%
6.9%
7.1%
Total Gross Revenue
% Growth
Net Cash Flow
% Growth
81,785
Running Net Yield
Present Cash Flow Value @7.04% Discount Rate
Present Resale Value @5.50% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Value
4.1%
-0.2%
2.5%
Net Cash Flow
662,285 €
1,335,505 €
1,997,791 €
704 €
7.9%
1,851,520 €
160,000
8.0%
140,000
7.0%
120,000
6.0%
100,000
5.0%
80,000
4.0%
60,000
3.0%
40,000
2.0%
20,000
1.0%
0
Running Yield in %
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Net Cash Flow in €
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
1,900,000 €
12.9 x
10.8 x
Net Initial Yield
4.7%
Direct Cap Rate
4.1%
Net Operating Income in €
Multiple (current rent)
Multiple (potential rent)
670 €
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
Total Operating Expenses in %
Net Operating Income
Market Value per sq m
5.0%
20,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Site Information
Site area
Thereof surplus land
2,720 sq m
0 sq m
Guideline land value €/sq m
Date of guideline land value
Adjusted site value €/sq m
-
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority in Münster, dated
05/12/2007), the subject site is not listed in the register of contaminated sites.
Public building
charges
Right to use parking spaces (42 units) to the benefit of the owner of the subject site, entered on 6 September
1974.
Right of way (1,25m wide) and use as a fire rescue path, in favour of the property Sprickmannstrasse 31-37, plot
87 parcel 120 entered on 11 July 1975 Considering the current use there is no detrimental impact on value
no
Listed status
No
n/a
Expiry of leasehold
no
Leasehold
Ground rent € p.a.
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
No. 106
Development plan dated
25.04.1996
Designated use
Residential area (WR)
Site coverage ratio (GRZ)
0.3
Plot ratio (GFZ)
1.5
Additional comments
We have not been provided with a detailed area calculation. In the event that the realized site coverage and/or plot ratio exceed the maximum
permitted site coverage and/or plot ratio, we assume that the building has the benefit of continuation permit and that the property is not
subject to any outstanding statutory notices regarding its construction.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
09/11/2011
Munster
16970
87
501
Babcock & Brown Residential Property 4. S.à.r.l. & Co. KG, Grünwald
There are no entries in section II.
Comments
We have been provided with a copy of an extract from the land register dated 09/11/2011. We assume that there have
not been any changes since then.
Page 7
SHORT REPORT
Sprickmannstrasse 39-41
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Sprickmannstrasse 39-41
48159
Münster
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Rental and Investment Evidence
Rental Table
City
Münster
Date
01.04.2013
Minimum
Average
4.48 €/sq m
Maximum
5.40 €/sq m
6.32 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Sprickm.str. 41 (Resid.)
15.04.2013
70 sq m
5.60 €/sq m
Sprickm.str. 39 (Resid.)
01.04.2013
77 sq m
5.30 €/sq m
Sprickm.str. 39 (Resid.)
15.03.2013
77 sq m
5.30 €/sq m
Sprickm.str. 41 (Resid.)
01.03.2013
77 sq m
6.00 €/sq m
Sprickm.str. 41 (Resid.)
01.03.2011
76 sq m
5.66 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
48159 Münster
03.06.2013
76 sq m
5.62 €/sq m
48159 Münster
03.06.2013
77 sq m
5.00 €/sq m subject property
48159 Münster
03.06.2013
51 sq m
5.90 €/sq m 3-room apartment
Comments
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
48165 Münster-Hiltrup
04.06.2013
2,011 sq m
48291 Telgte
04.06.2013
1,732 sq m
1,119 € Residential block, 20 apartments, previously subsidized, 1992
433 € Residential block, 25 apartments,subsidized, 1975, multiple 8.2
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Sprickmannstrasse 39-41
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
015
24320 - Resi 4 - Münster - Brüningheide (freie)
Resi 4
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Residential block
1972
n/a
51,811 sq m
Freehold
Yes
49,193 sq m
7.83%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
2,426,052 €
2,680,158 €
3,239,039 €
861,243 €
35.50%
Net Operating Income
Net Cash Flow
1,564,809 €
1,338,096 €
SWOT-Analysis
Strengths
Weaknesses
Good macro location, strong housing market
Social hot spot;
Weak tenant structure;
Let below market level ;
Low rental level (subsidized)
Opportunities
Threats
Rental uplift;
Leasing up vacant space at market level (the property is subsidized
until 2015)
Modernisation risk due to potential contamination of façade
elements.
Potential presence of hazardous building materials.
Property and Location Rating
Property
4
1 = very good, 6 = poor
4
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
14.1
4.32%
6.20%
2,116,865 €
Potential rental income
12.7
5.02%
per sq m
Market Value
Market rental income
10.5
6.56%
693 €
34,100,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
4
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
4
Additional
comments
(suitability of the
location)
The subject residential block is known as social hot spot
in Münster.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
1
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
4
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
3
No. of buildings
1 Residential use
4
2 Mixed-use
2
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
No
1 Pitched roof
2 Hipped roof
3 Mansard roof
4 Flat roof
Roof covering
n/a
No. of other units
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
4
11
584
7
374
Year of construction
1972
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
The façade is partly cladded with elements of Eternit and
partly of sand-lime brick; window reveals and balconies
show noticable signs of tear and wear.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
1995
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
2
Considering the year of construction it is likely that the façade elements are contaminated with asbestos. Additional costs may arise in case
of an extensive refurbishment. We are of the opinion that there is currently no reason to indicate that a removal of the elements is
required. We have not reflected additional costs in our valuation. According to the Environmental Due Diligence provided, dated 03/2005,
the estimated remediation costs for all potentially affected building components can be up to € 3,619,800 (for cluster 015 and 016).
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
Tenant structure
3
Fit-out bathroom
1
Floor covering
4
1
2
3
4
Very good
Good
Fair
Weak
4
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
3
None
Tiled
PVC
Wood, parquet or laminate flooring
The residential block forms a social hot spot in Münster. However, the letting market in Münster is tight. A few flats have already been let to
students. Nevertheless, the tenant structure is not expected to improve considerably. The apartments occupied by students are fitted with
kichenette and laminate flooring. A security service is to prevent vandalism. The costs for this service are not attributable to the tenants.
We are not aware of the actual costs for this service yet. We have requested these information during the Q&A process.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
yes
no
no
yes
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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
no
no
no
no
yes
no
no
no
Capex of some €800,000 have been reflected in our valuation (amongst others for refurbishments of balconies, façade, etc.).
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
4
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
2
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
3
1 = very good, 4 = poor
The subject property forms a social hot spot in Münster
and is in a fairly poor condition. We assume that the
lettability is fair. There is a chance to increase the
occupancy rate in line with the increasing demand for
affordable rental apartments in Münster.
Saleability
Additional
comments
3
1 = very good, 4 = poor
The property is in a fairly poor condition and the
demand for comparable properties of this volume is
restricted. We assume that the saleability is fair so that
additional promotional measures are required. On the
other hand, Münster is a popular investment location for
residential properties.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
584
14
374
7
979
Total lettable area
47,246 sq m
1,947 sq m
0 sq m
0 sq m
49,193 sq m
Units let
539
14
89
7
649
Area let
43,396 sq m
1,947 sq m
0 sq m
0 sq m
45,343 sq m
Vacant units
45
0
285
0
330
Vacant area
3,850 sq m
0 sq m
0 sq m
0 sq m
3,850 sq m
Vacancy rate area
8.15%
0.00%
0.00%
0.00%
7.83%
Vacancy rate units
7.71%
0.00%
76.20%
0.00%
33.71%
Current rent sq m/month
4.43 €
3.82 €
0.00 €
0.00 €
4.46 €
357.04 €
531.65 €
13.08 €
159.50 €
311.51 €
2,309,363 €
89,317 €
13,974 €
13,398 €
2,426,052 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
5.50 €
4.00 €
0.00 €
0.00 €
5.49 €
444.95 €
556.26 €
3.11 €
159.50 €
275.71 €
3,118,216 €
93,452 €
13,974 €
13,398 €
3,239,039 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Parking
Commercial
Others
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
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
2,652,785 2,747,533 2,834,452 2,927,897 3,038,975 3,154,333 3,274,137 3,398,560 3,527,781 3,661,986 3,801,369
-254,105 -249,633 -168,461 -84,457 -85,892 -87,352 -88,837 -90,348 -91,884 -93,446 -95,034
2,398,680 2,497,900 2,665,991 2,843,440 2,953,083 3,066,981 3,185,300 3,308,213 3,435,897 3,568,541 3,706,335
13,974
0
0
13,398
27,372
29,381
0
0
13,626
43,007
45,308
0
0
13,858
59,165
61,768
0
0
14,093
75,861
62,818
0
0
14,333
77,151
63,886
0
0
14,576
78,462
64,972
0
0
14,824
79,796
66,076
0
0
15,076
81,153
67,200
0
0
15,333
82,532
68,342
0
0
15,593
83,935
69,504
0
0
15,858
85,362
2,426,052 2,540,907 2,725,157 2,919,301 3,030,233 3,145,443 3,265,096 3,389,365 3,518,430 3,652,476 3,791,697
4.7%
7.3%
7.1%
3.8%
3.8%
3.8%
3.8%
3.8%
3.8%
3.8%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-136,654 -138,977 -141,340 -143,742 -146,186 -148,671 -151,198 -153,769 -156,383 -159,041 -161,745
-48,521 -50,818 -54,503 -58,386 -60,605 -62,909 -65,302 -67,787 -70,369 -73,050 -75,834
-120,633 -122,683 -124,769 -126,890 -129,047 -131,241 -133,472 -135,741 -138,049 -140,396 -142,782
-14,960 -15,214 -15,473 -15,736 -16,004 -16,276 -16,552 -16,834 -17,120 -17,411 -17,707
-46,201 -45,550 -30,794 -15,523 -15,787 -16,056 -16,329 -16,606 -16,888 -17,176 -17,467
-494,275 -502,677 -511,223 -519,914 -528,752 -537,741 -546,883 -556,180 -565,635 -575,251 -585,030
0
0
0
0
0
0
0
0
0
0
0
Total Operating Expenses
% of Gross Revenue
-861,243 -875,920 -878,102 -880,192 -896,381 -912,893 -929,736 -946,917 -964,443 -982,323 -1,000,566
35.9%
35.1%
32.9%
31.0%
30.4%
29.8%
29.2%
28.6%
28.1%
27.5%
27.0%
Net Operating Income
1,564,809 1,664,987 1,847,055 2,039,110 2,133,853 2,232,550 2,335,360 2,442,448 2,553,986 2,670,152 2,791,132
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-226,713 -295,826 -300,855 -305,969 -242,527 -246,650 -250,843 -255,107 -259,444 -263,854 -268,340
0
0
0
0
0
0
0
0
0
0
0
0 -892,060 -389,994 -396,624
0
0
0
0
0
0
0
Total Leasing and Capital Costs
-226,713 ######## -690,848 -702,593 -242,527 -246,650 -250,843 -255,107 -259,444 -263,854 -268,340
Net Cash Flow
% Growth
1,338,096
Gross Value
Gross Value per sq m
Purchaser's Costs
1.3%
3.2%
3.7%
737 €
5.5%
5.7%
6.0%
6.3%
6.6%
8.0%
3,000,000
7.0%
2,500,000
6.0%
2,000,000
5.0%
4.0%
1,500,000
3.0%
1,000,000
2.0%
6.2%
500,000
Net Value
7.0%
Net Cash Flow
12,057,223 €
24,202,628 €
36,259,851 €
5.2%
34,142,986 €
Running Yield in %
Present Cash Flow Value @7.04% Discount Rate
Present Resale Value @5.50% Cap Rate
3.7%
Net Cash Flow in €
Running Net Yield
477,102 1,156,207 1,336,517 1,891,326 1,985,900 2,084,517 2,187,341 2,294,542 2,406,298 2,522,792
-64.3% 142.3%
15.6%
41.5%
5.0%
5.0%
4.9%
4.9%
4.9%
4.8%
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
Market Value
34,100,000 €
Net Operating Income
14.1 x
12.7 x
Net Initial Yield
4.3%
Direct Cap Rate
3.7%
40.0%
3,000,000
35.0%
2,500,000
30.0%
2,000,000
25.0%
20.0%
1,500,000
15.0%
1,000,000
10.0%
500,000
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
693 €
Net Operating Income in €
Market Value per sq m
5.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Site Information
Site area
Thereof surplus land
51,811 sq m
0 sq m
Guideline land value €/sq m
Date of guideline land value
Adjusted site value €/sq m
-
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority in Münster, dated
05/12/2007) the properties Sprickmannstraße 31,33,35,37 are not listed in the register of contaminated sites but
are noted as historical location which might be contaminated (no 6079). A wood treatment producing company
has operated their business on the site for a total period of 3 months. Due to the short period the subject site is
not assumed to be contaminated Sprickmannplatz 4+5 is also noted as historical location which might be
Right to use parking spaces (62 units) to benefit of the buildings on the subject site, right to use 40 parking spaces
to the benefit of "Nebenzentrum", entered on 28 November 1975 in addition to several rights of way and a right
to use children´s playgrounds.
Right of way by foot or car in addition to a pipeline right in favour of the owner of Arnethstrasse 5-10 entered
no
Listed status
No
n/a
Expiry of leasehold
no
Public building
charges
Leasehold
Ground rent € p.a.
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
No. 106
Development plan dated
25.04.1996
Designated use
Residential area (WR)
Site coverage ratio (GRZ)
0.3
Plot ratio (GFZ)
1.5
Additional comments
We have not been provided with a detailed area calculation. In the event that the realized site coverage and/or plot ratio exceed the maximum
permitted site coverage and/or plot ratio, we assume that the building has the benefit of continuation permit and that the property is not
subject to any outstanding statutory notices regarding its construction.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
09/11/2011
Munster
10127
87
114, 720, 11, 30, 15, 741, 742
Babcock & Brown Residential Property 4. S.à.r.l. & Co. KG, Grünwald
Parcel 729, 730: Rainwater pipeline rights in favour of the city of Munster, entered 15/02/1994.
Parcel 741, 742: Telecommunicaton rights in favour of Deutsche Telekom AG, Bonn and electricity supply rights in favour
of the Stadtwerke Münster GmbH, Munster, entered 25/06/1997.
Comments
We have been provided with a copy of an extract from the land register dated 09/11/2011. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
do not have a detrimental effect on the current use of the Property. However, further developments or building
extensions may be restricted.
Page 7
SHORT REPORT
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
09/11/2011
Munster
9998
87
108, 110, 409, 610, 614
Babcock & Brown Residential Property 4. S.à.r.l. & Co. KG, Grünwald
Parcel 409: Right to operate a heating facility in favour of the owner of plot 87, parcel 92 (page 9997), entered
10/10/1975.
Comments
We have been provided with a copy of an extract from the land register dated 09/11/2011. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
do not have a detrimental effect on the current use of the Property. However, further developments or building
extensions may be restricted.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
09/11/2011
Munster
16970
87
120, 92, 531
Babcock & Brown Residential Property 4. S.à.r.l. & Co. KG, Grünwald
There are no entries in section II.
Comments
We have been provided with a copy of an extract from the land register dated 09/11/2011. We assume that there have
not been any changes since then.
Page 8
SHORT REPORT
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Rental and Investment Evidence
Rental Table
City
Münster
Date
01.04.2013
Minimum
Average
4.48 €/sq m
Maximum
5.40 €/sq m
6.32 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Brüningh. 121 (Resid.)
01.04.2013
80 sq m
4.58 €/sq m
Brüningh. 139 (Resid.)
01.04.2013
93 sq m
3.85 €/sq m
Brüningh. 145 (Resid.)
01.04.2013
78 sq m
4.36 €/sq m
Sprickm.str. 35 (Resid.)
01.04.2013
77 sq m
5.00 €/sq m
Brüningh.73 (Resid.)
01.04.2013
77 sq m
5.00 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
48159 Münster
03.06.2013
76 sq m
5.62 €/sq m
48159 Münster
03.06.2013
77 sq m
5.00 €/sq m subject property
48159 Münster
03.06.2013
51 sq m
5.90 €/sq m 3-room apartment
Comments
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
48165 Münster-Hiltrup
04.06.2013
2,011 sq m
48291 Telgte
04.06.2013
1,732 sq m
44623 Herne
04.06.2013
21,977 sq m
1,119 € Residential block, 20 apartments, previously subsidized, 1992
433 € Residential block, 25 apartments,subsidized, 1975, multiple 8.2
694 € Residential block which comprises 131 apartments, 233 parking spa
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Brüningheide 39, 65-73, 111-145, Killingstraße 15-21, 23-31, Sprickmannplatz 1-8, Sprickmannstraße 12+14, 31-37
48159
Münster
DTZ No.
Cluster
Portfolio
Date of Valuation
016
24320 - Resi 4 - Münster - Brüningheide (Kosten
Resi 4
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1927
n/a
3,314 sq m
Freehold
No
3,403 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
241,524 €
241,524 €
285,893 €
56,161 €
23.25%
Net Operating Income
Net Cash Flow
185,363 €
168,346 €
SWOT-Analysis
Strengths
Weaknesses
Property is in good condition;
Property is fully let.
Residential units are let below market level;
Limited parking in the vicinity;
Peripheral location.
Opportunities
Threats
Rent uplift potential;
Good investor demand for apartment buildings in that location.
Modernisation and refurbishment costs prior to re-letting
accommodations on a higher level;
Rental adjustment may take long in case of low fluctuation.
Property and Location Rating
Property
3
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
15.7
4.56%
7.90%
297,818 €
Potential rental income
15.7
4.56%
per sq m
Market Value
Market rental income
13.3
5.65%
1,117 €
3,800,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The property is located in the district of Karlshorst.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
2
Noise exposure
1
2
3
4
Low
Medium
High
Very high
1
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
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
Serious defects noted
2
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1 Thermally insulated
2 No insulation
n/a
n/a
1 Thermally insulated
2 No insulation
n/a
1
3
53
n/a
n/a
Year of construction
1927
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
Basement level
1 Yes
2 No
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
Balconies are also to the rear of the building.
Page 2
SHORT REPORT
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
Warm water supply 1 Central
2 Decentral
n/a
n/a
Lifts
1 Yes
2 No
n/a
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
n/a
We have not had access to the building and were thus not able to inspect it internally.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
1
2
3
4
Very good
Good
Fair
Weak
n/a
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
We have not detected obvious visible damage in the course of our external inspection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
n/a
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and all units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition, all units are currently
let and the demand for comparable properties is good.
We assume that the saleability is good and only minor
promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
53
0
0
0
53
Total lettable area
3,403 sq m
0 sq m
0 sq m
0 sq m
3,403 sq m
Units let
53
0
0
0
53
Area let
3,403 sq m
0 sq m
0 sq m
0 sq m
3,403 sq m
Vacant units
0
0
0
0
0
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
0.00%
0.00%
0.00%
Current rent sq m/month
5.91 €
0.00 €
0.00 €
0.00 €
5.91 €
Current rent unit/month
Current rent p.a.
379.75 €
0.00 €
0.00 €
0.00 €
379.75 €
241,524 €
0€
0€
0€
241,524 €
Market rent sq m/month
7.00 €
0.00 €
0.00 €
0.00 €
7.00 €
449.52 €
0.00 €
0.00 €
0.00 €
449.52 €
285,893 €
0€
0€
0€
285,893 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Cash Flow Analysis
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
241,524
0
241,524
250,149
-2,423
247,726
258,686
-2,464
256,222
267,516
-2,506
265,010
276,647
-2,549
274,099
286,091
-2,592
283,499
295,859
-2,636
293,223
305,960
-2,681
303,279
316,407
-2,726
313,681
327,212
-2,773
324,439
338,387
-2,820
335,567
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
241,524
247,726
2.6%
256,222
3.4%
265,010
3.4%
274,099
3.4%
283,499
3.4%
293,223
3.4%
303,279
3.4%
313,681
3.4%
324,439
3.4%
335,567
3.4%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-12,190
-4,830
-12,076
0
0
-27,064
0
-12,397
-4,955
-12,281
0
-346
-27,524
0
-12,608
-5,124
-12,490
0
-352
-27,992
0
-12,822
-5,300
-12,703
0
-358
-28,468
0
-13,040
-5,482
-12,919
0
-364
-28,952
0
-13,262
-5,670
-13,138
0
-370
-29,444
0
-13,487
-5,864
-13,362
0
-377
-29,944
0
-13,717
-6,066
-13,589
0
-383
-30,454
0
-13,950
-6,274
-13,820
0
-389
-30,971
0
-14,187
-6,489
-14,055
0
-396
-31,498
0
-14,428
-6,711
-14,294
0
-403
-32,033
0
Total Operating Expenses
% of Gross Revenue
-56,161
23.3%
-57,503
23.2%
-58,567
22.9%
-59,651
22.5%
-60,757
22.2%
-61,884
21.8%
-63,034
21.5%
-64,207
21.2%
-65,404
20.9%
-66,624
20.5%
-67,869
20.2%
Net Operating Income
185,363
190,222
197,655
205,359
213,342
221,615
230,188
239,072
248,277
257,815
267,698
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-17,017
0
0
-17,307
0
0
-17,601
0
0
-17,900
0
0
-18,204
0
0
-18,514
0
0
-18,829
0
0
-19,149
0
-75,261
-19,474
0
0
-19,805
0
0
-20,142
0
0
Total Leasing and Capital Costs
-17,017
-17,307
-17,601
-17,900
-18,204
-18,514
-18,829
-94,410
-19,474
-19,805
-20,142
Net Cash Flow
% Growth
168,346
172,915
2.7%
180,054
4.1%
187,458
4.1%
195,138
4.1%
203,101
4.1%
211,360
4.1%
144,662
-31.6%
228,803
58.2%
238,010
4.0%
247,556
4.0%
4.1%
4.3%
4.4%
4.6%
4.8%
5.0%
5.2%
3.6%
5.6%
5.9%
6.1%
Total Gross Revenue
% Growth
Running Net Yield
Present Cash Flow Value @6.53% Discount Rate
Present Resale Value @5.00% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Cash Flow
1,417,178 €
2,650,483 €
4,067,661 €
1,195 €
300,000
7.0%
6.0%
250,000
5.0%
200,000
4.0%
150,000
3.0%
100,000
2.0%
7.9%
50,000
Net Value
3,769,843 €
Running Yield in %
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Net Cash Flow in €
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
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
Market Value
3,800,000 €
Net Operating Income
15.7 x
15.7 x
Net Initial Yield
4.6%
Direct Cap Rate
4.1%
25.0%
300,000
250,000
20.0%
200,000
15.0%
150,000
10.0%
100,000
5.0%
50,000
0
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
1,117 €
Net Operating Income in €
Market Value per sq m
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Site Information
Site area
Thereof surplus land
3,314 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Lichtenberg, dated 18 February 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Lichtenberg, dated 17 January 2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
Development plan dated
Designated use
Residential area (Zoning Plan)
Site coverage ratio (GRZ)
Plot ratio (GFZ)
Additional comments
§ 34 BauGB: In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the
German Building and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
29/08/2011
Lichtenberg
1538N
41309
156
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
Easement to build on parcel 4759/158 etc. in favour of the owner of page 1634. The easement terminates in case it is
erased on page 1634, entered on 18/06/1910.
Comments
We have been provided with a copy of an extract from the land register dated 29/08/2011. We assume that there have
not been any changes since then. The easement to build on parcel 4759/158 is not subject to valuation. We recommend
to clarify this issue with your legal advisors.
Page 7
SHORT REPORT
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
29/08/2011
Lichtenberg
305N
41309
152
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
Easement to build on parcel 4759/158 etc. in favour of the owner of page 1634. The easement terminates in case it is
erased on page 1634, entered on 18/06/1910.
Comments
We have been provided with a copy of an extract from the land register dated 29/08/2011. We assume that there have
not been any changes since then. The easement to build on parcel 4759/158 is not subject to valuation. We recommend
to clarify this issue with your legal advisors.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 8
SHORT REPORT
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Rental and Investment Evidence
Rental Table
City
Berlin, Karlshorst
Date
01.09.2012
Minimum
Average
5.25 €/sq m
6.08 €/sq m
Maximum
7.10 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Gundelf. Str. 21 (Resi.)
01.03.2013
61 sq m
6.85 €/sq m
Gundelf. Str. 21a (Resi.)
01.03.2013
65 sq m
6.85 €/sq m
Gundelf. Str. 21 (Resi.)
01.02.2013
60 sq m
6.96 €/sq m
Gundelf. Str. 224 (Resi.)
01.02.2013
61 sq m
6.86 €/sq m
Hönower Str. 8 (Resi.)
01.12.2012
77 sq m
6.85 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
10318 Berlin
18.06.2013
80 sq m
7.00 €/sq m 3-room apartment, 2nd floor, renovated, balcony
10315 Berlin
18.06.2013
54 sq m
7.00 €/sq m 2-room apartment, 1st floor, renovated, balcony
10318 Berlin
10.06.2013
55 sq m
7.23 €/sq m 2-room apartment, attic floor, renovated
10318 Berlin
18.06.2013
50 sq m
6.84 €/sq m 2-room apartment, ground floor, renovated
10318 Berlin
10.06.2013
63 sq m
7.00 €/sq m 3-room apartment, 3th floor, renovated
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
10318 Berlin
10.06.2013
1,504 sq m
1,263 € 5-storey apartm. building, built 1900, refurb., sl. better cond.
12459 Berlin
10.06.2013
2,251 sq m
1,244 € Apartment building, built 1930, refurbished, sl. better cond.
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Gundelfinger Straße 21-24; Hönower Straße 8-9
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
017
24330 - Resi 5 - Berlin - Gundelfinger Straße
Resi 5
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1927
n/a
5,554 sq m
Freehold
No
3,912 sq m
2.40%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
256,380 €
264,266 €
328,621 €
65,274 €
25.46%
Net Operating Income
Net Cash Flow
191,106 €
172,014 €
SWOT-Analysis
Strengths
Weaknesses
Property is in good condition;
The property is almost fully let.
Residential units are let below market level;
Peripheral location.
Opportunities
Threats
Rent uplift potential;
Good investor demand for apartment buildings in that location.
Rental adjustment may take long in case of low fluctuation;
Wooden framed windows in need of refurbishment.
Property and Location Rating
Property
3
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
16.8
4.15%
7.90%
336,934 €
Potential rental income
16.3
4.32%
per sq m
Market Value
Market rental income
13.1
5.72%
1,099 €
4,300,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The property is located in the district of Karlshorst.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
3
Noise exposure
1
2
3
4
Low
Medium
High
Very high
1
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
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
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1 Thermally insulated
2 No insulation
n/a
n/a
1 Thermally insulated
2 No insulation
n/a
2
3
61
n/a
n/a
Year of construction
1927
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
Basement level
1 Yes
2 No
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
A few windows have wooden frames that are in need of
refurbishment.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
Warm water supply 1 Central
2 Decentral
n/a
n/a
Lifts
1 Yes
2 No
n/a
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
n/a
We have not had access to the building and were thus not able to inspect it internally.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
1
2
3
4
Very good
Good
Fair
Weak
n/a
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
no
Additional
comments
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
n/a
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and almost all units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition, almost all units are
currently let and the demand for comparable properties
is good. We assume that the saleability is good and only
minor promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
61
0
0
0
61
Total lettable area
3,912 sq m
0 sq m
0 sq m
0 sq m
3,912 sq m
Units let
60
0
0
0
60
Area let
3,818 sq m
0 sq m
0 sq m
0 sq m
3,818 sq m
Vacant units
1
0
0
0
1
Vacant area
94 sq m
0 sq m
0 sq m
0 sq m
94 sq m
Vacancy rate area
2.40%
0.00%
0.00%
0.00%
2.40%
Vacancy rate units
1.64%
0.00%
0.00%
0.00%
1.64%
Current rent sq m/month
5.60 €
0.00 €
0.00 €
0.00 €
5.60 €
Current rent unit/month
Current rent p.a.
356.08 €
0.00 €
0.00 €
0.00 €
356.08 €
256,380 €
0€
0€
0€
256,380 €
Market rent sq m/month
7.00 €
0.00 €
0.00 €
0.00 €
7.00 €
448.94 €
0.00 €
0.00 €
0.00 €
448.94 €
328,621 €
0€
0€
0€
328,621 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Cash Flow Analysis
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
264,266
-7,886
256,380
274,676
-8,087
266,588
285,043
-5,529
279,515
295,929
-2,881
293,049
307,710
-2,930
304,781
319,961
-2,979
316,982
332,702
-3,030
329,672
345,951
-3,081
342,870
359,730
-3,134
356,596
374,059
-3,187
370,872
388,960
-3,241
385,719
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
256,380
266,588
4.0%
279,515
4.8%
293,049
4.8%
304,781
4.0%
316,982
4.0%
329,672
4.0%
342,870
4.0%
356,596
4.0%
370,872
4.0%
385,719
4.0%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-14,030
-5,128
-12,819
0
-1,127
-32,171
0
-14,269
-5,332
-13,037
0
-1,155
-32,718
0
-14,511
-5,590
-13,259
0
-790
-33,274
0
-14,758
-5,861
-13,484
0
-412
-33,840
0
-15,009
-6,096
-13,713
0
-419
-34,415
0
-15,264
-6,340
-13,946
0
-426
-35,000
0
-15,523
-6,593
-14,183
0
-433
-35,595
0
-15,787
-6,857
-14,424
0
-440
-36,200
0
-16,056
-7,132
-14,670
0
-448
-36,815
0
-16,328
-7,417
-14,919
0
-455
-37,441
0
-16,606
-7,714
-15,173
0
-463
-38,078
0
Total Operating Expenses
% of Gross Revenue
-65,274
25.5%
-66,510
24.9%
-67,424
24.1%
-68,354
23.3%
-69,651
22.9%
-70,975
22.4%
-72,328
21.9%
-73,709
21.5%
-75,120
21.1%
-76,562
20.6%
-78,034
20.2%
Net Operating Income
191,106
200,078
212,091
224,695
235,130
246,007
257,344
269,160
281,476
294,310
307,685
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-19,091
0
0
-21,007
0
0
-21,364
0
-70,329
-21,728
0
0
-20,423
0
0
-20,770
0
0
-21,123
0
0
-21,482
0
0
-21,848
0
0
-22,219
0
0
-22,597
0
0
Total Leasing and Capital Costs
-19,091
-21,007
-91,693
-21,728
-20,423
-20,770
-21,123
-21,482
-21,848
-22,219
-22,597
Net Cash Flow
% Growth
172,014
179,071
4.1%
120,398
-32.8%
202,968
68.6%
214,707
5.8%
225,236
4.9%
236,221
4.9%
247,678
4.9%
259,628
4.8%
272,091
4.8%
285,088
4.8%
3.7%
3.9%
2.6%
4.4%
4.7%
4.9%
5.1%
5.4%
5.6%
5.9%
6.2%
Total Gross Revenue
% Growth
Running Net Yield
Present Cash Flow Value @6.53% Discount Rate
Present Resale Value @5.00% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Cash Flow
1,555,517 €
3,046,399 €
4,601,916 €
1,176 €
300,000
7.0%
6.0%
250,000
5.0%
200,000
4.0%
150,000
3.0%
100,000
2.0%
7.9%
50,000
Net Value
4,264,982 €
Running Yield in %
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Net Cash Flow in €
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
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
Market Value
4,300,000 €
Net Operating Income
16.8 x
16.3 x
Net Initial Yield
4.2%
Direct Cap Rate
3.7%
30.0%
350,000
300,000
25.0%
250,000
20.0%
200,000
15.0%
150,000
10.0%
100,000
5.0%
50,000
0
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
1,099 €
Net Operating Income in €
Market Value per sq m
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Site Information
Site area
Thereof surplus land
5,554 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Lichtenberg, dated 18 February 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Lichtenberg, dated 17 January 2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
Development plan dated
Designated use
Residential area (Zoning Plan)
Site coverage ratio (GRZ)
Plot ratio (GFZ)
Additional comments
§ 34 BauGB: In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the
German Building and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
11/01/2008
Lichtenberg
3168N
180
195
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
We have been provided with a copy of an extract from the land register dated 11/01/2008. We assume that there have
not been any changes since then.
Page 7
SHORT REPORT
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
11/01/2008
Lichtenberg
304N
41110
199, 200, 201
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
We have been provided with a copy of an extract from the land register dated 11/01/2008. We assume that there have
not been any changes since then.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 8
SHORT REPORT
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Rental and Investment Evidence
Rental Table
City
Berlin, Karlshorst
Date
01.09.2012
Minimum
Average
4.57 €/sq m
5.28 €/sq m
Maximum
6.10 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Hön. Wiesenwg. 44 (Res.)
01.02.2013
51 sq m
7.11 €/sq m
Hön. Wiesenwg. 46 (Res.)
01.02.2013
51 sq m
7.02 €/sq m
Hön. Wiesenwg. 49 (Res.)
01.01.2013
64 sq m
6.86 €/sq m
Güntherstraße 11 (Res.)
01.02.2013
64 sq m
7.53 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
10318 Berlin
18.06.2013
80 sq m
7.00 €/sq m 3-room apartment, 2nd floor, renovated, balcony
10315 Berlin
18.06.2013
54 sq m
7.00 €/sq m 2-room apartment, 1st floor, renovated, balcony
10318 Berlin
10.06.2013
55 sq m
7.23 €/sq m 2-room apartment, attic floor, renovated
10318 Berlin
18.06.2013
50 sq m
6.84 €/sq m 2-room apartment, ground floor, renovated
10318 Berlin
10.06.2013
63 sq m
7.00 €/sq m 3-room apartment, 3th floor, renovated
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
10318 Berlin
10.06.2013
1,504 sq m
1,263 € 5-storey apartm. building, built 1900, refurb., sl. better cond.
12459 Berlin
10.06.2013
2,251 sq m
1,244 € Apartment building, built 1930, refurbished, sl. better cond.
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Trautenauer Straße 1-2; Hönower Wiesenweg 44-49; Güntherstraße 11, 11a
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
018
24330 - Resi 5 - Berlin - Hönower Wiesenweg
Resi 5
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1938
n/a
627 sq m
Freehold
No
519 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
35,965 €
35,965 €
42,015 €
8,754 €
24.34%
Net Operating Income
Net Cash Flow
27,210 €
24,617 €
SWOT-Analysis
Strengths
Weaknesses
Property is in good condition;
Property is fully let.
Residential units are let below market level;
High noise exposure due to location at a main road with tram.
Opportunities
Threats
Rent uplift potential;
Good investor demand for apartment buildings in that location.
Rental adjustment may take long in case of low fluctuation;
Peripheral location.
Property and Location Rating
Property
3
1 = very good, 6 = poor
4
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
15.0
4.62%
8.50%
46,123 €
Potential rental income
15.0
4.62%
per sq m
Market Value
Market rental income
12.9
5.65%
1,041 €
540,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The property is located in the district of Köpenick.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
1
Noise exposure
1
2
3
4
Low
Medium
High
Very high
3
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
4
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
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
Serious defects noted
3
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1 Thermally insulated
2 No insulation
n/a
n/a
1 Thermally insulated
2 No insulation
n/a
1
3
9
n/a
n/a
Year of construction
1938
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
Basement level
1 Yes
2 No
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
3
Additional
comments
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
Warm water supply 1 Central
2 Decentral
n/a
n/a
Lifts
1 Yes
2 No
n/a
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
n/a
We have not had access to the building and were thus not able to inspect it internally.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
1
2
3
4
Very good
Good
Fair
Weak
n/a
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
yes
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
The front facade is overgrown with vine and is slightly damaged by to the roots of the wine.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
n/a
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and all units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition, all units are currently
let and the demand for comparable properties is good.
We assume that the saleability is good and only minor
promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
9
0
0
0
9
Total lettable area
519 sq m
0 sq m
0 sq m
0 sq m
519 sq m
Units let
9
0
0
0
9
Area let
519 sq m
0 sq m
0 sq m
0 sq m
519 sq m
Vacant units
0
0
0
0
0
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
0.00%
0.00%
0.00%
Current rent sq m/month
5.78 €
0.00 €
0.00 €
0.00 €
5.78 €
Current rent unit/month
333.01 €
0.00 €
0.00 €
0.00 €
333.01 €
Current rent p.a.
35,965 €
0€
0€
0€
35,965 €
6.75 €
0.00 €
0.00 €
0.00 €
6.75 €
Market rent unit/month
389.03 €
0.00 €
0.00 €
0.00 €
389.03 €
Market rent p.a.
42,015 €
0€
0€
0€
42,015 €
Market rent sq m/month
Lettable area by use
Current rental income by use
Commercial
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
35,965
0
35,965
37,196
-356
36,840
38,415
-362
38,053
39,675
-368
39,306
40,975
-375
40,601
42,319
-381
41,938
43,707
-387
43,319
45,140
-394
44,746
46,621
-401
46,220
48,150
-407
47,742
49,729
-414
49,315
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
35,965
36,840
2.4%
38,053
3.3%
39,306
3.3%
40,601
3.3%
41,938
3.3%
43,319
3.3%
44,746
3.3%
46,220
3.3%
47,742
3.3%
49,315
3.3%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-2,070
-719
-1,798
0
0
-4,167
0
-2,105
-737
-1,829
0
-53
-4,238
0
-2,141
-761
-1,860
0
-54
-4,310
0
-2,177
-786
-1,892
0
-55
-4,383
0
-2,214
-812
-1,924
0
-55
-4,457
0
-2,252
-839
-1,956
0
-56
-4,533
0
-2,290
-866
-1,990
0
-57
-4,610
0
-2,329
-895
-2,023
0
-58
-4,689
0
-2,369
-924
-2,058
0
-59
-4,768
0
-2,409
-955
-2,093
0
-60
-4,849
0
-2,450
-986
-2,128
0
-61
-4,932
0
Total Operating Expenses
% of Gross Revenue
-8,754
24.3%
-8,961
24.3%
-9,125
24.0%
-9,293
23.6%
-9,463
23.3%
-9,637
23.0%
-9,814
22.7%
-9,995
22.3%
-10,179
22.0%
-10,367
21.7%
-10,558
21.4%
Net Operating Income
27,210
27,878
28,928
30,014
31,138
32,301
33,505
34,752
36,041
37,376
38,757
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-2,594
0
0
-2,638
0
0
-2,682
0
0
-2,728
0
-4,086
-2,774
0
0
-2,822
0
0
-2,870
0
0
-2,918
0
0
-2,968
0
0
-3,018
0
0
-3,070
0
0
Total Leasing and Capital Costs
-2,594
-2,638
-2,682
-6,814
-2,774
-2,822
-2,870
-2,918
-2,968
-3,018
-3,070
Net Cash Flow
% Growth
24,617
25,241
2.5%
26,245
4.0%
23,200
-11.6%
28,363
22.3%
29,480
3.9%
30,636
3.9%
31,833
3.9%
33,073
3.9%
34,357
3.9%
35,687
3.9%
4.2%
4.3%
4.5%
3.9%
4.8%
5.0%
5.2%
5.4%
5.6%
5.8%
6.1%
Running Net Yield
Present Cash Flow Value @6.53% Discount Rate
Present Resale Value @5.00% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
Net Cash Flow
209,256 €
379,487 €
588,743 €
1,135 €
40,000
7.0%
35,000
6.0%
30,000
5.0%
25,000
4.0%
20,000
3.0%
15,000
2.0%
10,000
8.5%
1.0%
5,000
Net Value
542,620 €
Running Yield in %
Total Gross Revenue
% Growth
Net Cash Flow in €
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
0.0%
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
540,000 €
Net Operating Income
15.0 x
15.0 x
Net Initial Yield
4.6%
Direct Cap Rate
4.2%
30.0%
45,000
40,000
25.0%
35,000
30,000
20.0%
25,000
15.0%
20,000
15,000
10.0%
10,000
5.0%
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
1,041 €
Net Operating Income in €
Market Value per sq m
5,000
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Site Information
Site area
Thereof surplus land
627 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Treptow-Köpenick, dated 16 January 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
Information regarding public building charges has not been provided. We assume that there is no evidence for
public building charges on the site.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
Development plan dated
Designated use
Residential area (Zoning Plan)
Site coverage ratio (GRZ)
Plot ratio (GFZ)
Additional comments
§ 34 BauGB: In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the
German Building and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
n/a
Köpenick
11869N
464
39
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
We have been provided with a copy of an extract from the land register, on which the date was not readable. We believe
that the extract is outdated and therefore we assume that there have not been any changes since then.
Page 7
SHORT REPORT
Seelenbinder Straße 82
12555
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Seelenbinder Straße 82
12555
Berlin
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Rental and Investment Evidence
Rental Table
City
Berlin, Köpenick
Date
01.09.2012
Minimum
Average
4.87 €/sq m
5.51 €/sq m
Maximum
6.20 €/sq m
Recent Lease Agreements
Address
Seelenb. Straße 82 (Res.)
Date
Area
01.02.2013
Monthly rent
61 sq m
6.86 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
12555 Berlin
10.06.2013
71 sq m
6.55 €/sq m 2-room apartment, 3th floor, renovated
12555 Berlin
10.06.2013
43 sq m
6.28 €/sq m 1-room apartment, 5th floor, renovated
12555 Berlin
10.06.2013
94 sq m
6.91 €/sq m 4-room apartment, ground floor, renovated
12555 Berlin
18.06.2013
53 sq m
6.70 €/sq m 2-room apartment, 3rd floor, renovated
12555 Berlin
18.06.2013
71 sq m
6.55 €/sq m 2-room apartment, ground floor, renovated
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
12557 Berlin
11.06.2013
628 sq m
1,194 € 4-storey apartment building, built 1900, partly refurbished
12555 Berlin
11.06.2013
1,121 sq m
1,124 € 4-storey mixed-use building, built 1910, partly refurbished
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Seelenbinder Straße 82
12555
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
019
24330 - Resi 5 - Berlin – Seelenbinder Straße
Resi 5
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1938
n/a
416 sq m
Freehold
No
162 sq m
0.00%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
8,695 €
8,695 €
11,635 €
2,632 €
30.27%
Net Operating Income
Net Cash Flow
6,063 €
5,255 €
SWOT-Analysis
Strengths
Weaknesses
Property is fully let;
Good public transport.
Residential units are let below market level;
Property is in need of refurbishment.
Opportunities
Threats
Rent uplift potential;
Good investor demand for apartment buildings in that location;
Privatisation of the property.
Modernisation and refurbishment costs prior to re-letting
accommodations on a higher level;
Relatively high commuting times to Berlin centre due to peripheral
location.
Property and Location Rating
Property
4
1 = very good, 6 = poor
4
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
17.3
3.83%
8.50%
12,398 €
Potential rental income
17.3
3.83%
per sq m
Market Value
Market rental income
12.9
5.69%
928 €
150,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The property is located in the district of LichtenbergKarlshorst
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
1
Noise exposure
1
2
3
4
Low
Medium
High
Very high
4
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
4
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
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
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
Serious defects noted
3
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
n/a
2
1 Thermally insulated
2 No insulation
n/a
n/a
1 Thermally insulated
2 No insulation
n/a
2
2
2
n/a
n/a
Year of construction
1938
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
Basement level
1 Yes
2 No
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
n/a
Warm water supply 1 Central
2 Decentral
n/a
n/a
Lifts
1 Yes
2 No
n/a
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
n/a
We have not had access to the building and were thus not able to inspect it internally.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
1
2
3
4
Very good
Good
Fair
Weak
n/a
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
The front facade appears unattractive. The roof may require refurbishment. The wooden windows need to be refurbished or to be replaced.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
4
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
n/a
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fairly poor condition and all units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
3
1 = very good, 4 = poor
The property is in a fairly poor condition, all units are
currently let and the demand for comparable properties
is fair. We assume that the saleability is fair so that
additional promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
2
0
0
0
2
Total lettable area
162 sq m
0 sq m
0 sq m
0 sq m
162 sq m
Units let
2
0
0
0
2
Area let
162 sq m
0 sq m
0 sq m
0 sq m
162 sq m
Vacant units
0
0
0
0
0
Vacant area
0 sq m
0 sq m
0 sq m
0 sq m
0 sq m
Vacancy rate area
0.00%
0.00%
0.00%
0.00%
0.00%
Vacancy rate units
0.00%
0.00%
0.00%
0.00%
0.00%
Current rent sq m/month
4.48 €
0.00 €
0.00 €
0.00 €
4.48 €
362.30 €
0.00 €
0.00 €
0.00 €
362.30 €
8,695 €
0€
0€
0€
8,695 €
6.00 €
0.00 €
0.00 €
0.00 €
6.00 €
Market rent unit/month
484.80 €
0.00 €
0.00 €
0.00 €
484.80 €
Market rent p.a.
11,635 €
0€
0€
0€
11,635 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
Lettable area by use
Current rental income by use
Commercial
Commercial
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
11.50 €/sq m
11.50 €/sq m
40.00 €/unit
Management costs p.a.
300.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
8,695
0
8,695
9,127
-99
9,029
9,554
-100
9,453
10,000
-102
9,898
10,468
-104
10,364
10,957
-105
10,852
11,470
-107
11,362
12,006
-109
11,897
12,568
-111
12,457
13,156
-113
13,043
13,772
-115
13,657
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
8,695
9,029
3.8%
9,453
4.7%
9,898
4.7%
10,364
4.7%
10,852
4.7%
11,362
4.7%
11,897
4.7%
12,457
4.7%
13,043
4.7%
13,657
4.7%
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-600
-174
-435
0
0
-1,424
0
-610
-181
-442
0
-16
-1,448
0
-621
-189
-450
0
-17
-1,472
0
-631
-198
-457
0
-17
-1,497
0
-642
-207
-465
0
-17
-1,523
0
-653
-217
-473
0
-18
-1,549
0
-664
-227
-481
0
-18
-1,575
0
-675
-238
-489
0
-18
-1,602
0
-687
-249
-498
0
-18
-1,629
0
-698
-261
-506
0
-19
-1,657
0
-710
-273
-515
0
-19
-1,685
0
Total Operating Expenses
% of Gross Revenue
-2,632
30.3%
-2,697
29.9%
-2,748
29.1%
-2,801
28.3%
-2,854
27.5%
-2,909
26.8%
-2,965
26.1%
-3,022
25.4%
-3,081
24.7%
-3,141
24.1%
-3,202
23.4%
6,063
6,331
6,705
7,097
7,510
7,942
8,397
8,875
9,376
9,902
10,455
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-808
0
0
-822
0
0
-836
0
-7,498
-850
0
-8,390
-864
0
0
-879
0
0
-894
0
0
-909
0
0
-925
0
0
-940
0
0
-956
0
0
Total Leasing and Capital Costs
-808
-822
-8,334
-9,240
-864
-879
-894
-909
-925
-940
-956
-2,143
6,645
31.6% -410.1%
7,063
6.3%
7,503
6.2%
7,965
6.2%
8,451
6.1%
8,962
6.0%
9,498
6.0%
4.5%
4.7%
5.0%
5.3%
5.7%
6.0%
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Net Operating Income
Net Cash Flow
% Growth
5,255
5,510
-1,629
4.8% -129.6%
Running Net Yield
3.3%
3.5%
Present Cash Flow Value @6.02% Discount Rate
Present Resale Value @4.50% Cap Rate
-1.0%
-1.4%
4.2%
Net Cash Flow
38,935 €
119,317 €
10,000
7.0%
9,000
Gross Value per sq m
158,251 €
979 €
5.0%
7,000
6,000
4.0%
5,000
3.0%
4,000
3,000
Purchaser's Costs
8.5%
2.0%
Running Yield in %
Gross Value
Net Cash Flow in €
6.0%
8,000
2,000
1.0%
1,000
Net Value
145,854 €
0.0%
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
150,000 €
Net Operating Income
Net Initial Yield
Direct Cap Rate
17.3 x
17.3 x
3.8%
3.3%
12,000
35.0%
30.0%
10,000
25.0%
8,000
20.0%
6,000
15.0%
4,000
10.0%
2,000
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
928 €
Net Operating Income in €
Market Value per sq m
5.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Site Information
Site area
Thereof surplus land
416 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
Site infrastructure status
For the purpose of the valuation we assume that there are no outstanding infrastructural charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Lichtenberg, dated 18 February 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Lichtenberg, dated 17 January 2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
No
No. / Name of development plan
Development plan dated
Designated use
Residential area (Zoning Plan)
Site coverage ratio (GRZ)
Plot ratio (GFZ)
Additional comments
§ 34 BauGB: In the current zoning plan the site is designated as residential area and can be developed in accordance with Article 34 of the
German Building and Planning Code (BauGB), which states that the development must fit the characteristics of the surrounding buildings.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
11/01/2008
Lichtenberg
5825N
209
262
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
Limited personal easement for a telephone line in favour Deutsche Telekom AG, entered on 16/04/2003.
Comments
We have been provided with a copy of an extract from the land register dated 11/01/2008. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the easements
do not have a detrimental effect on the current use of the Property. However, further developments or building
extensions may be restricted.
Page 7
SHORT REPORT
Treskowallee 61
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 8
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Treskowallee 61
10318
Berlin
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Rental and Investment Evidence
Rental Table
City
Berlin, Karlshorst
Date
01.09.2012
Minimum
Average
4.57 €/sq m
5.28 €/sq m
Maximum
6.10 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
No recent lease agreement
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
10319 Berlin
18.06.2013
75 sq m
6.21 €/sq m 2-room apartment, ground floor, balcony, good condition
10318 Berlin
10.06.2013
109 sq m
10319 Berlin
18.06.2013
55 sq m
6.36 €/sq m 2-room apartment, 6th floor, renovated
10319 Berlin
18.06.2013
154 sq m
6.06 €/sq m 5-room apartment, 6th floor, renovated
12459 Berlin
18.06.2013
64 sq m
6.30 €/sq m 2-room apartment, 3rd floor, renovated
6.33 €/sq m 3-room apartment, 5th floor, balcony, renovated
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
12439 Berlin
11.06.2013
941 sq m
1,053 € Mixed-use build., built 1908, partly refurbished, better cond.
12459 Berlin
11.06.2013
1,229 sq m
976 € Mixed-use building, built 1905, partly refurbished
12439 Berlin
11.06.2013
2,158 sq m
924 € Mixed-use build., built 1900, ref., sl. worse loc., sl. better cond.
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 9
SHORT REPORT
Treskowallee 61
10318
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
020
24330 - Resi 5 - Berlin - Treskowallee
Resi 5
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 10
SHORT REPORT
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Mixed-use
1999
n/a
16,084 sq m
Freehold
No
10,240 sq m
15.77%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
902,999 €
1,064,231 €
1,045,280 €
152,799 €
16.92%
Net Operating Income
Net Cash Flow
750,200 €
707,073 €
SWOT-Analysis
Strengths
Weaknesses
Located in a good residential location;
Property is in a good conditon.
Residential units are let below market level;
6 out of 36 retail units are vacant;
Peripheral location.
Opportunities
Threats
Rent uplift potential for residential units;
Good investor demand due to installation in 1999.
High share of commercial income (68%);
Over-rent commercial units.
Property and Location Rating
Property
2
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
15.1
5.16%
6.75%
918,938 €
Potential rental income
12.8
6.27%
per sq m
Market Value
Market rental income
13.0
6.14%
1,328 €
13,600,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
1
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
2
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
1
Additional
comments
(suitability of the
location)
The property is located close to the village centre of
Glienicke, next to Berlin.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
3
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
2
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
5
2 Mixed-use
2
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
4
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
Serious defects noted
2
No. of parking spaces
4
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
5
3-4
45
44
157
Year of construction
1999
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
1
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
The facade is partly rendered. The shopfront on ground
level is of metal.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
1999
Electrical wiring
1
Water and sewage
pipes
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
1
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
1
2
3
4
2
Technical installations are in a good condition due to installation in 1999.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
Fully refurbished
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Fully refurbished
Tenant structure
2
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
4
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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
Fit-out bathroom
3
Floor covering
2
Residential units have two bathrooms. Fitted with bath or shower, respectively.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
no
yes
no
no
no
no
no
Water damage in one residential unit as window in the attic floor was broken.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
2
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
3
Number of units
inspected
Residential
Commercial
1
1
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
3
1 = very good, 4 = poor
The property is in a good condition and shows a
considerable vacancy. We assume that the lettability is
fair and therefore additional measures are required to
increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a good condition, shows a
considerable vacancy and the demand for comparable
properties is good. We assume that the saleability is
good and only minor promotional measures are
required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
45
36
157
8
246
Total lettable area
3,302 sq m
6,937 sq m
0 sq m
0 sq m
10,240 sq m
Units let
42
30
106
8
186
Area let
3,016 sq m
5,609 sq m
0 sq m
0 sq m
8,625 sq m
Vacant units
3
6
51
0
60
Vacant area
286 sq m
1,328 sq m
0 sq m
0 sq m
1,614 sq m
Vacancy rate area
8.66%
19.15%
0.00%
0.00%
15.77%
Vacancy rate units
6.67%
16.67%
32.48%
0.00%
24.39%
Current rent sq m/month
6.87 €
9.12 €
0.00 €
0.00 €
8.72 €
493.51 €
1,705.03 €
29.36 €
32.49 €
404.57 €
248,727 €
613,812 €
37,342 €
3,119 €
902,999 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
Market rent unit/month
Market rent p.a.
7.50 €
8.50 €
0.00 €
0.00 €
8.51 €
550.40 €
1,637.98 €
19.82 €
32.49 €
354.09 €
297,214 €
707,606 €
37,342 €
3,119 €
1,045,280 €
Lettable area by use
Current rental income by use
Others
Parking
Residential
Residential
Commercial
Commercial
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
8.10 €/sq m
8.10 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
Total Operating Expenses
% of Gross Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
1,023,771 1,041,201 1,058,593 1,075,777 1,091,145 1,106,786 1,122,707 1,138,915 1,155,415 1,172,214 1,189,317
-161,232 -116,920 -63,784
-8,808
-8,958
-9,110
-9,265
-9,422
-9,582
-9,745
-9,911
862,538 924,280 994,808 1,066,970 1,082,187 1,097,676 1,113,443 1,129,493 1,145,833 1,162,468 1,179,406
37,342
0
0
3,119
40,460
44,067
0
0
3,172
47,239
51,010
0
0
3,226
54,236
58,177
0
0
3,281
61,457
59,166
0
0
3,336
62,502
60,172
0
0
3,393
63,565
61,195
0
0
3,451
64,645
62,235
0
0
3,509
65,744
63,293
0
0
3,569
66,862
64,369
0
0
3,630
67,999
65,463
0
0
3,691
69,155
902,999
971,519 1,049,044 1,128,427 1,144,689 1,161,241 1,178,088 1,195,237 1,212,694 1,230,467 1,248,561
7.6%
8.0%
7.6%
1.4%
1.4%
1.5%
1.5%
1.5%
1.5%
1.5%
-26,145
-18,060
-44,994
-6,280
-19,372
-37,947
0
-26,590
-19,430
-45,759
-6,387
-14,066
-38,593
0
-27,042
-20,981
-46,537
-6,495
-7,682
-39,249
0
-27,501
-22,569
-47,328
-6,606
-1,077
-39,916
0
-27,969
-22,894
-48,132
-6,718
-1,095
-40,594
0
-28,444
-23,225
-48,951
-6,832
-1,114
-41,285
0
-28,928
-23,562
-49,783
-6,948
-1,133
-41,986
0
-29,420
-23,905
-50,629
-7,067
-1,152
-42,700
0
-29,920
-24,254
-51,490
-7,187
-1,172
-43,426
0
-30,428
-24,609
-52,365
-7,309
-1,192
-44,164
0
-30,946
-24,971
-53,255
-7,433
-1,212
-44,915
0
-152,799 -150,825 -147,986 -144,997 -147,403 -149,851 -152,340 -154,873 -157,448 -160,068 -162,733
17.7%
16.3%
14.9%
13.6%
13.6%
13.7%
13.7%
13.7%
13.7%
13.8%
13.8%
Net Operating Income
750,200
820,694
901,059
983,430
997,286 1,011,390 1,025,747 1,040,364 1,055,246 1,070,399 1,085,828
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-43,127
0
0
-71,223
0
-2,034
-72,434
0
0
-73,665
0
0
-46,135
0
0
-46,919
0
0
-47,717
0
0
-48,528
0
0
-49,353
0
0
-50,192
0
0
-51,045
0
0
Total Leasing and Capital Costs
-43,127
-73,257
-72,434
-73,665
-46,135
-46,919
-47,717
-48,528
-49,353
-50,192
-51,045
Net Cash Flow
% Growth
707,073
747,437
5.7%
828,625
10.9%
909,765
9.8%
951,151
4.5%
964,471
1.4%
978,031
1.4%
991,836 1,005,893 1,020,207 1,034,783
1.4%
1.4%
1.4%
1.4%
4.9%
5.1%
5.7%
6.3%
6.5%
6.6%
6.7%
Gross Value
Gross Value per sq m
Purchaser's Costs
1,419 €
6.9%
7.0%
8.0%
1,200,000
7.0%
1,000,000
6.0%
800,000
5.0%
4.0%
600,000
3.0%
400,000
2.0%
6.7%
200,000
Net Value
7.1%
Net Cash Flow
6,343,881 €
8,188,959 €
14,532,839 €
6.8%
13,613,901 €
Running Yield in %
Present Cash Flow Value @7.55% Discount Rate
Present Resale Value @6.00% Cap Rate
Net Cash Flow in €
Running Net Yield
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
Market Value
13,600,000 €
Net Operating Income
Net Initial Yield
Direct Cap Rate
15.1 x
12.8 x
5.2%
4.9%
1,200,000
18.0%
16.0%
1,000,000
14.0%
800,000
12.0%
10.0%
600,000
8.0%
400,000
6.0%
4.0%
200,000
Total Operating Expenses in %
Multiple (current rent)
Multiple (potential rent)
1,328 €
Net Operating Income in €
Market Value per sq m
2.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Site Information
Site area
Thereof surplus land
16,084 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Landkreis
Oberhavel, dated 25 January 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Reinickendorf, dated 13 February 2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
No. 3, Glienicker Spitze
Development plan dated
11.07.2005
Designated use
Mixed-use area
Site coverage ratio (GRZ)
0.25-0.3
Plot ratio (GFZ)
0.7
Additional comments
Four storeys maximum according to planning situation. Site coverage (GRZ) of 0.25 and plot ratio (GFZ) of 0.70 for Oranienburger Chaussee 1321 and Schönfließer Straße 80-84. Actual development is in accordance with planning situation.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/03/2012
Oranienburg
4418
1
192, 698, 699, 701, 702, 703, 704, 700
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
The plot 1, parcel 700 does only belong partly to the property (see our underdstanding of the boundaries on cadastral
plan on page 9). Segmentation of the parcel was agreed upon BGP.
Page 7
SHORT REPORT
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
Oranienburg
5018
1
175/1
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 8
SHORT REPORT
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Rental and Investment Evidence
Rental Table
City
Glienicke, Nordbahn
Date
Minimum
n/a
Average
n/a
Maximum
n/a
n/a
Recent Lease Agreements
Address
Date
Area
Monthly rent
Schönfl. Str. 83 (Comm.)
01.12.2012
164 sq m
8.51 €/sq m
Schönfl. Str. 80 (Res.)
01.10.2012
61 sq m
7.84 €/sq m
Oranienb. Ch. 15 (Res.)
01.09.2012
62 sq m
7.71 €/sq m
Oranienb. Ch. 17 (Res.)
01.09.2012
63 sq m
7.70 €/sq m
Schönfl. Str. 81 (Comm.)
01.07.2012
133 sq m
9.34 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
16548 Glienicke
10.06.2013
95 sq m
7.36 €/sq m 3-room apartment, attic, balcony, renovated
16548 Glienicke
10.06.2013
75 sq m
7.42 €/sq m 3-room apartment, attic, balcony
16548 Glienicke
10.06.2013
93 sq m
7.50 €/sq m 2-room apartment, 1st floor
16548 Glienicke
10.06.2013
485 sq m
8.51 €/sq m retail area, subject property
16548 Glienicke
10.06.2013
281 sq m
7.11 €/sq m office area, subject property
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
13086 Berlin
24.06.2013
3,940 sq m
1,332 € Mixed-use building, built 1995, lift
13086 Berlin
24.06.2013
1,720 sq m
1,380 € Mixed-use building, built 1997, multiplier 19.3
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Schönfließer Straße 80-84; Oranienburger Chaussee 13-21 (uneven)
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
021
24330 - Resi 5 - Glienicke - Oranienburger Chaus
Resi 5
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Apartment building
1999
n/a
28,251 sq m
Freehold
No
14,975 sq m
0.61%
No
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
1,443,698 €
1,451,888 €
1,431,090 €
180,424 €
12.50%
Net Operating Income
Net Cash Flow
1,263,274 €
1,188,855 €
SWOT-Analysis
Strengths
Weaknesses
Located in a good residential location;
Property is in a good condition;
Low noise exposure.
Unfavourable shape of site;
Peripheral location.
Opportunities
Threats
Good investor demand for apartment buildings;
Located in a well-devoloping suburban area next to Berlin.
Residential units are over-rented;
Low fluctuation.
Property and Location Rating
Property
2
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
15.2
5.43%
6.20%
1,359,204 €
Potential rental income
15.1
5.46%
per sq m
Market Value
Market rental income
15.3
5.37%
1,462 €
21,900,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
1
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
2
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
1
Additional
comments
(suitability of the
location)
The property is located close to the village centre of
Glienicke, next to Berlin.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
3
Noise exposure
1
2
3
4
Low
Medium
High
Very high
1
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
2
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
4
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
Serious defects noted
2
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
3
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
1
1 Thermally insulated
2 No insulation
1
n/a
1 Thermally insulated
2 No insulation
n/a
16
3
154
3
176
Year of construction
1999
Remaining economic
lifetime
n/a
Guidance land value
(€/sq m)
n/a
Bitumen
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
Basement level
1 Yes
2 No
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
The facade is partly rendered. Some residential units do
also have loggias.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
1999
Electrical wiring
n/a
Water and sewage
pipes
n/a
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
1 New/recently renewed
2 Reasonable condition
3 Out-dated
1
Warm water supply 1 Central
2 Decentral
1
1
Lifts
1 Yes
2 No
2
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
1
2
3
4
2
Technical installations are in a good condition due to installation in 1999.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
Layout bathroom
1 Bathroom including WC
2 Bathroom and seperate WC
3 Two bathrooms
4 Bath/WC outside accommodation
Refurbished
n/a
Kitchen
Additional
comments
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
n/a
Tenant structure
n/a
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
n/a
1
2
3
4
None
Tiled
PVC
Wood, parquet or laminate flooring
n/a
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
no
no
no
no
no
no
no
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
Fit-out bathroom
n/a
Floor covering
n/a
We were not able to inspect any residential unit.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
no
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
no
We have not detected obvious visible damage in the course of our external inspection.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
2
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
2
Comments on Inspection
Access
1 External areas only
2 External and internal areas
3 External, internal and accommodation
1
Number of units
inspected
Residential
Commercial
0
0
Additional
comments
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a good condition and almost all units
are let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
2
1 = very good, 4 = poor
The property is in a good condition, almost all units are
currently let and the demand for comparable properties
is good. We assume that the saleability is good and only
minor promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
154
1
176
2
333
Total lettable area
14,945 sq m
30 sq m
0 sq m
0 sq m
14,975 sq m
Units let
153
1
124
2
280
Area let
14,854 sq m
30 sq m
0 sq m
0 sq m
14,884 sq m
Vacant units
1
0
52
0
53
Vacant area
91 sq m
0 sq m
0 sq m
0 sq m
91 sq m
Vacancy rate area
0.61%
0.00%
0.00%
0.00%
0.61%
Vacancy rate units
0.65%
0.00%
29.55%
0.00%
15.92%
Current rent sq m/month
7.63 €
2.33 €
0.00 €
0.00 €
8.08 €
740.66 €
70.00 €
55.33 €
27.50 €
429.67 €
1,359,860 €
840 €
82,338 €
660 €
1,443,698 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
Market rent unit/month
Market rent p.a.
7.50 €
8.50 €
0.00 €
0.00 €
7.96 €
727.83 €
255.00 €
38.99 €
27.50 €
358.13 €
1,345,032 €
3,060 €
82,338 €
660 €
1,431,090 €
Lettable area by use
Current rental income by use
Commercial
Commercial
Others
Parking
Residential
Residential
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
50.00 €/sq m
50.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
7.10 €/sq m
7.10 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
Total Other Revenue
Total Gross Revenue
% Growth
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
1,368,890 1,389,805 1,411,226 1,432,986 1,455,065 1,477,511 1,500,332 1,523,541 1,547,150 1,571,171 1,595,618
-8,190 -16,932 -14,419 -11,817 -12,018 -12,222 -12,430 -12,641 -12,856 -13,075 -13,297
1,360,700 1,372,874 1,396,807 1,421,170 1,443,048 1,465,289 1,487,902 1,510,900 1,534,294 1,558,096 1,582,322
82,338
0
0
660
82,998
95,443
0
0
671
96,114
108,970
0
0
683
109,652
122,929
0
0
694
123,623
125,018
0
0
706
125,724
127,144
0
0
718
127,862
129,305
0
0
730
130,035
131,503
0
0
743
132,246
133,739
0
0
755
134,494
136,012
0
0
768
136,781
138,325
0
0
781
139,106
1,443,698 1,468,988 1,506,459 1,544,792 1,568,772 1,593,150 1,617,938 1,643,146 1,668,788 1,694,877 1,721,427
-37,097
-28,874
-72,152
-7,040
-1,092
-34,169
0
1.8%
2.6%
2.5%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
-37,727
-29,380
-73,378
-7,160
-2,257
-34,750
0
-38,369
-30,129
-74,626
-7,281
-1,922
-35,341
0
-39,021
-30,896
-75,895
-7,405
-1,575
-35,942
0
-39,684
-31,375
-77,185
-7,531
-1,602
-36,553
0
-40,359
-31,863
-78,497
-7,659
-1,629
-37,174
0
-41,045
-32,359
-79,831
-7,789
-1,657
-37,806
0
-41,743
-32,863
-81,188
-7,922
-1,685
-38,449
0
-42,453
-33,376
-82,569
-8,056
-1,714
-39,102
0
-43,174
-33,898
-83,972
-8,193
-1,743
-39,767
0
-43,908
-34,429
-85,400
-8,333
-1,772
-40,443
0
Total Operating Expenses
% of Gross Revenue
-180,424 -184,653 -187,668 -190,733 -193,930 -197,181 -200,487 -203,850 -207,269 -210,747 -214,285
13.3%
13.5%
13.4%
13.4%
13.4%
13.5%
13.5%
13.5%
13.5%
13.5%
13.5%
Net Operating Income
1,263,274 1,284,335 1,318,790 1,354,059 1,374,842 1,395,969 1,417,450 1,439,296 1,461,518 1,484,129 1,507,143
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-74,419
0
0
-77,227
0
0
-78,539
0
-715
-79,875
0
0
-79,610
0
0
-80,963
0
-36,806
-82,340
0
0
-83,740
0
0
-85,163
0
0
-86,611
0
0
-88,083
0
0
Total Leasing and Capital Costs
-74,419
-77,227
-79,254
-79,875
-79,610 -117,769
-82,340
-83,740
-85,163
-86,611
-88,083
1,188,855 1,207,109 1,239,536 1,274,184 1,295,232 1,278,200 1,335,111 1,355,557 1,376,355 1,397,518 1,419,059
Present Cash Flow Value @6.79% Discount Rate
Present Resale Value @5.25% Cap Rate
Gross Value
Gross Value per sq m
Purchaser's Costs
5.1%
2.7%
2.8%
1.7%
-1.3%
4.5%
1.5%
1.5%
1.5%
1.5%
5.2%
5.3%
5.5%
5.6%
5.5%
5.7%
5.8%
5.9%
6.0%
6.1%
Net Cash Flow
9,261,208 €
14,020,647 €
23,281,855 €
1,555 €
1,600,000
7.0%
1,400,000
6.0%
1,200,000
5.0%
1,000,000
4.0%
800,000
3.0%
600,000
2.0%
400,000
6.2%
1.0%
200,000
Net Value
21,922,650 €
Running Yield in %
Running Net Yield
1.5%
Net Cash Flow in €
Net Cash Flow
% Growth
0.0%
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Market Value
21,900,000 €
15.2 x
15.1 x
Net Initial Yield
5.4%
Direct Cap Rate
5.1%
Net Operating Income in €
Multiple (current rent)
Multiple (potential rent)
1,462 €
1,600,000
16.0%
1,400,000
14.0%
1,200,000
12.0%
1,000,000
10.0%
800,000
8.0%
600,000
6.0%
400,000
4.0%
200,000
2.0%
0
Total Operating Expenses in %
Net Operating Income
Market Value per sq m
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Site Information
Site area
Thereof surplus land
28,251 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Landkreis
Oberhavel, dated 25 January 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter from the relevant local authority Landkreis
Oberhavel, dated 12 March 2008, and relevant local authority Bezirksamt Reinickendorf, dated 13 February 2008),
there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
No
-
Listed status
Expiry of leasehold
No
n/a
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
No. 3, Glienicker Spitze
Development plan dated
11.07.2005
Designated use
Residential area
Site coverage ratio (GRZ)
0.2 -0.25
Plot ratio (GFZ)
0.5-0.7
Additional comments
Three storeys maximum according to planning situation. Site coverage (GRZ) of 0.25 and plot ratio (GFZ) of 0.70 for Schönfließer Straße 70-79,
85-90. Actual development is in accordance with planning situation.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
27/03/2012
Oranienburg
4418
1, 2
189, 700, 623, 625
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
The plot 1, parcel 700 does only belong partly to the property (see our underdstanding of the boundaries on cadastral
plan on page 9). Segmentation of the parcel was agreed upon BGP.
Page 7
SHORT REPORT
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
Oranienburg
4310
1
180/1
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
15/01/2008
Oranienburg
93
1
183, 621
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
No entries.
Comments
We have been provided with a copy of an extract from the land register dated 15/01/2008. We assume that there have
not been any changes since then.
Page 8
SHORT REPORT
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Rental and Investment Evidence
Rental Table
City
Glienicke, Nordbahn
Date
Minimum
n/a
Average
n/a
Maximum
n/a
n/a
Recent Lease Agreements
Address
Date
Area
Monthly rent
Schönfl. Str. 85 Res.)
01.03.2013
87 sq m
8.29 €/sq m
Schönfl. Str. 72 (Res.)
01.01.2013
85 sq m
8.16 €/sq m
Schönfl. Str. 73 (Res.)
01.01.2013
147 sq m
6.50 €/sq m
Schönfl. Str. 74 (Res.)
01.01.2013
113 sq m
7.30 €/sq m
Lindenstraße 21 (Res.)
01.01.2013
110 sq m
7.81 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
16548 Glienicke
10.06.2013
95 sq m
7.36 €/sq m 3-room apartment, attic, balcony, renovated
16548 Glienicke
10.06.2013
75 sq m
7.42 €/sq m 3-room apartment, attic, balcony
16548 Glienicke
10.06.2013
62 sq m
8.05 €/sq m 2-room apartment, ground floor, refenovated
16548 Glienicke
10.06.2013
58 sq m
7.70 €/sq m 2-room apartment, 3rd floor
16548 Glienicke
10.06.2013
93 sq m
7.50 €/sq m 2-room apartment, 1st floor
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Price p. sq m
Comments
No comparable evidence
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
13409 Berlin
04.06.2013
1,160 sq m
13403 Berlin
04.06.2013
855 sq m
1,897 € Mixed-use building, built 1970, better location, lift
1,344 € Apartment building, built 1992, partly refurbished, lift
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10
SHORT REPORT
Schönfließer Straße 70-79, 85-90; Lindenstraße 11, 13, 13a, 19, 21
16548
Glienicke
DTZ No.
Cluster
Portfolio
Date of Valuation
022
24330 - Resi 5 - Glienicke - Schönfließer Straße
Resi 5
31/05/2013
Property Photos
Photo 1
Photo 2
Photo 3
Photo 4
Photo 5
Photo 6
Page 11
SHORT REPORT
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Property Summary
Property type
Year of construction
Remaining economic life
Site area
Tenure
Rent restriction
Total lettable area
Vacancy rate
Monumental protection
Mixed-use
1939
n/a
48,354 sq m
Leasehold
No
41,101 sq m
1.17%
Yes
Income year 1
Current gross rental income
Potential gross rental income
Market gross rental income
Non-recoverable expenses
as % of GRI
2,513,944 €
2,559,951 €
3,924,874 €
998,389 €
39.71%
Net Operating Income
Net Cash Flow
1,515,555 €
1,007,788 €
SWOT-Analysis
Strengths
Weaknesses
Only 1.2% vacancy rate;
Good public transport.
Property is in need of some refurbishment; Unattractive impression;
Residential units are let below market level;
Leasehold status.
Opportunities
Threats
Good investor demand for apartment buildings in that location;
Rent uplift potential.
Modernisation and refurbishment costs prior to re-letting
accommodations on a higher level;
Rental adjustment may take longer in case of low fluctuation.
Property and Location Rating
Property
3
1 = very good, 6 = poor
3
Location
1 = very good, 6 = poor
Valuation Result
Yield Profile
Purchaser's costs
Multiplier
NIY
Current rental income
16.4
3.45%
6.20%
2,561,932 €
Potential rental income
16.1
3.56%
per sq m
Market Value
Market rental income
10.5
6.67%
1,005 €
41,300,000 €
Page 1
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Location and Property Description
Location Description
1
2
3
4
Residential area (single-family houses)
Residential area (multi-family houses)
Mixed-use area
Predominantly commercial
2
1
2
3
4
Prime residential area
Good residential area
Fair residential area
Basic residential area
3
Description of
location
1
2
3
4
Town centre
Close to town centre
Peripheral location
High density housing location (Plattenbau)
3
Additional
comments
(suitability of the
location)
The property is located in the district of Schöneberg.
Noise exposure is high alongside Grazer Damm.
Use
Quality of area
Infrastructure
(distance to public
transport)
1
2
3
4
Less than 100 m
Less than 500 m
Less than 1,000 m
More than 1,000 m
1
Noise exposure
1
2
3
4
Low
Medium
High
Very high
2
Potential
environmental
issues
1 No visible issues
2 Potential risk on site
3 Potential risk in the vicinity
1
Location rating
1
2
3
4
5
6
3
Very good
Good
Fair
Fairly poor
Poor
Very poor
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
Not refurbished
3
1
2
3
4
Timber
Brickwork
Reinforced concrete
Prefabricated slabs
2
No. of buildings
1 Residential use
5
2 Mixed-use
2
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
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
Serious defects noted
3
No. of parking spaces
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
3
1
1
2
3
4
As new
No obvious damage
Minor damage noted
Serious defects noted
2
2
5
627
11
26
Year of construction
1939
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
2
1 Thermally insulated
2 No insulation
1
Basement level
1 Yes
2 No
1
1 Thermally insulated
2 No insulation
2
Entrance
1 New/completely refurbished
2 Partly refurbished
3 Not refurbished
2
Additional
comments
Main part of the fassade is in need of refurbishment.
Balconies are also to the rear.
Page 2
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Location and Property Description
Internal Building Description
1 New/completely renewed
Electrical
installations within 2 Largely renewed
residential units
3 Partly renewed
4 Out-dated
Staircases
Heating
Additional
comments
1
2
3
4
New/completely renewed
Largely renewed
Partly renewed
Out-dated
1 Central heating gas/oil
2 Apartment heating
3 District heating
4 Stove heating
Installed
1984
Electrical wiring
3
Water and sewage
pipes
3
1 New/recently renewed
2 Reasonable condition
3 Out-dated
2
1 New/recently renewed
2 Reasonable condition
3 Out-dated
3
Warm water supply 1 Central
2 Decentral
3
1
Lifts
1 Yes
2 No
2
Potential hazardous materials
1 No visible issues
2 Evidence of use of hazardous materials
1
Tenant structure
1
2
3
4
3
Electric wiring was refurbished in 1980.
Description of the Residential Units
Layout of the
residential units
1
2
3
4
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
Very good
Good
Fair
Poor
1 No kitchenette, no separate room
2 Seperate room with fitted kitchen
3 Kitchenette, no separate room
4 Seperate room without fitted kitchen
Refurbished
Partly refurbished
3
Fit-out bathroom
1
Floor covering
4
Very good
Good
Fair
Weak
1 Bath
2 Shower
3 Bath and shower
1
1
2
3
4
4
None
Tiled
PVC
Wood, parquet or laminate flooring
50 residential units have been renovated per annum since 2011. By the end of June 2013 almost 20% of all aparmtents will have been
renovated.
Visible Damage
Facade/structure
1
2
3
4
5
6
Cracks in masonry
Damaged facade
Damaged drainage
Visible concrete steel
Damaged balconies
Salt crystallisation
no
yes
no
no
no
no
Roof
1
2
3
4
5
Soiling with bird excrement
Infestation with vermin
Dry rot
Leaking roof
Damaged chimney
no
no
no
no
no
Additional
comments
Accommodation
1
2
3
4
5
6
7
Mould
Pipeline cracks
Water damage
Insufficient/damaged ventilation (bath)
Damaged windows
Damaged/insufficient heating
View comment
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
no
no
no
no
no
no
no
no
The facade appears partly unattractive and was partly damaged. Roof was refurbished in 1976.
Page 3
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Location and Property Description
Summary: Building Quality
External
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
Internal
3
1
2
3
4
5
6
Very good
Good
Fair
Fairly poor
Poor
Ruinous
3
Comments on Inspection
Access
Additional
comments
1 External areas only
2 External and internal areas
3 External, internal and accommodation
3
Number of units
inspected
Residential
Commercial
3
0
The overall impression of the exterior is fair. For the building parts where the facade has not been refurbished yet the external impression is
fairly poor.
Comments on Lettability and Saleability
Lettability
Additional
comments
2
1 = very good, 4 = poor
The property is in a fair condition and almost all units are
currently let. We assume that the lettability is good and
therefore only minor additional measures are required
to increase lettability.
Saleability
Additional
comments
3
1 = very good, 4 = poor
The property is in a fair condition, almost all units are
currently let and the demand for comparable properties
is fair. We assume that the saleability is fair so that
additional promotional measures are required.
Page 4
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Area and Income Analysis
Residential
Commercial
Parking
Others
Total
Total lettable units
627
10
26
1
664
Total lettable area
40,295 sq m
805 sq m
0 sq m
0 sq m
41,101 sq m
Units let
620
10
26
1
657
Area let
39,816 sq m
805 sq m
0 sq m
0 sq m
40,621 sq m
Vacant units
7
0
0
0
7
Vacant area
479 sq m
0 sq m
0 sq m
0 sq m
479 sq m
Vacancy rate area
1.19%
0.00%
0.00%
0.00%
1.17%
Vacancy rate units
1.12%
0.00%
0.00%
0.00%
1.05%
Current rent sq m/month
5.13 €
5.49 €
0.00 €
0.00 €
5.16 €
329.66 €
442.18 €
23.85 €
63.91 €
318.87 €
2,452,676 €
53,062 €
7,440 €
767 €
2,513,944 €
Current rent unit/month
Current rent p.a.
Market rent sq m/month
8.00 €
5.00 €
0.00 €
0.00 €
7.96 €
514.13 €
402.66 €
23.85 €
63.91 €
492.58 €
3,868,349 €
48,319 €
7,440 €
767 €
3,924,874 €
Market rent unit/month
Market rent p.a.
Lettable area by use
Current rental income by use
Commercial
Commercial
Others
Parking
Residential
Residential
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
125.00 €/sq m
125.00 €/sq m
0.00 €/unit
Maintenance costs p.a.
12.50 €/sq m
12.50 €/sq m
40.00 €/unit
Management costs p.a.
230.00 €/unit
Vacancy costs p.a.
12.00 €/sq m
Marketing costs
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. We confirm that the
valuation has been prepared in accordance with the appropriate sections of the Valuation Standards ("VS") contained within the RICS Valuation
Professional Standards 2012 (the "Red Book") and in accordance with the local market practice.
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
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Cash Flow Analysis
Year 0
Gross Revenue
Potential Base Rental Revenue
Absorption and Turnover Vacancy
Effective Base Rental Revenue
Parking
Subsidies
Rental Guarantee
Other Revenue (antennas)
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
2,551,744 2,713,321 2,874,030 3,045,967 3,233,708 3,433,253 3,645,347 3,870,782 4,110,399 4,365,094 4,635,816
-46,007 -64,127 -49,487 -34,332 -34,916 -35,509 -36,113 -36,727 -37,351 -37,986 -38,632
2,505,737 2,649,195 2,824,542 3,011,635 3,198,792 3,397,744 3,609,235 3,834,056 4,073,048 4,327,108 4,597,185
7,440
0
0
767
8,207
7,566
0
0
780
8,346
7,695
0
0
793
8,488
7,826
0
0
807
8,633
7,959
0
0
820
8,779
8,094
0
0
834
8,929
8,232
0
0
849
9,080
8,372
0
0
863
9,235
8,514
0
0
878
9,392
8,659
0
0
893
9,551
8,806
0
0
908
9,714
2,513,944 2,657,541 2,833,030 3,020,268 3,207,572 3,406,673 3,618,315 3,843,290 4,082,440 4,336,659 4,606,898
5.7%
6.6%
6.6%
6.2%
6.2%
6.2%
6.2%
6.2%
6.2%
6.2%
-147,908
-53,151
-127,795
-1,058
-8,047
-394,696
-286,922
-150,422
-56,661
-129,968
-1,076
-6,217
-401,406
-291,800
-152,979
-60,405
-132,177
-1,094
-4,323
-408,230
-296,761
-155,580
-64,151
-134,424
-1,113
-4,397
-415,170
-301,805
-158,225
-68,133
-136,709
-1,131
-4,471
-422,228
-306,936
-160,915
-72,366
-139,033
-1,151
-4,548
-429,406
-312,154
-163,650
-76,866
-141,397
-1,170
-4,625
-436,706
-317,461
-166,432
-81,649
-143,801
-1,190
-4,703
-444,130
-322,858
-169,262
-86,733
-146,245
-1,210
-4,783
-451,680
-328,346
-172,139
-92,138
-148,731
-1,231
-4,865
-459,359
-333,928
Operating Expenses
Management Costs
Credit and Collection Loss
Ongoing Maintenance Costs
Parking Maintenance Costs
Vacancy Costs
Reserve Fund
Ground Rent
-145,435
-50,279
-125,659
-1,040
-5,751
-388,099
-282,126
Total Operating Expenses
% of Gross Revenue
-998,389 -1,019,577 -1,037,549 -1,055,970 -1,076,640 -1,097,835 -1,119,572 -1,141,874 -1,164,763 -1,188,260 -1,212,391
39.8%
38.5%
36.7%
35.1%
33.7%
32.3%
31.0%
29.8%
28.6%
27.5%
26.4%
Net Operating Income
1,515,555 1,637,964 1,795,481 1,964,298 2,130,931 2,308,838 2,498,743 2,701,416 2,917,678 3,148,399 3,394,508
Leasing and Capital Costs
Renovation Costs
Leasing Commissions
Capital Expenditure
-507,767 -536,707 -545,831 -555,110 -543,186 -552,420 -561,811 -571,362 -581,075 -590,953 -600,999
0
0
0
0
0
0
0
0
0
0
0
0 -150,808
0
0
0
0
0 -353,556
0
0
0
Total Leasing and Capital Costs
-507,767 -687,515 -545,831 -555,110 -543,186 -552,420 -561,811 -924,918 -581,075 -590,953 -600,999
Net Cash Flow
% Growth
1,007,788
Gross Value
Gross Value per sq m
Purchaser's Costs
2.2%
2.8%
3.2%
1,068 €
4.0%
4.4%
4.0%
5.3%
5.8%
3,000,000
7.0%
6.0%
2,500,000
5.0%
2,000,000
4.0%
1,500,000
3.0%
1,000,000
2.0%
6.2%
500,000
Net Value
6.4%
Net Cash Flow
12,304,994 €
31,578,424 €
43,883,418 €
3.6%
41,321,486 €
Running Yield in %
Present Cash Flow Value @6.79% Discount Rate
Present Resale Value @5.25% Cap Rate
2.3%
Net Cash Flow in €
Running Net Yield
950,450 1,249,650 1,409,188 1,587,746 1,756,418 1,936,932 1,776,498 2,336,603 2,557,446 2,793,508
-5.7%
31.5%
12.8%
12.7%
10.6%
10.3%
-8.3%
31.5%
9.5%
9.2%
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
Market Value
41,300,000 €
Net Initial Yield
Direct Cap Rate
16.4 x
16.1 x
3.5%
2.3%
Net Operating Income in €
Multiple (current rent)
Multiple (potential rent)
1,005 €
4,000,000
45.0%
3,500,000
40.0%
35.0%
3,000,000
30.0%
2,500,000
25.0%
2,000,000
20.0%
1,500,000
15.0%
1,000,000
10.0%
500,000
Total Operating Expenses in %
Net Operating Income
Market Value per sq m
5.0%
0
0.0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Page 6
SHORT REPORT
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Site Information
Site area
Thereof surplus land
48,354 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
Site infrastructure status
According to our inspection the property is sufficiently connected to water, wastewater, electricity and other
relevant utilities. For the purpose of the valuation we assume that there are no outstanding infrastructural
charges.
Re-development area
Contamination
No
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Tempelhof-Schöneberg, dated 24 January 2008), the subject site is not listed in the register of contaminated sites.
Public building
charges
According to the information provided in the data room (letter from the relevant local authority Bezirksamt
Tempelhof-Schöneberg, dated 16 January 2008), there is no evidence for public building charges on the site.
Leasehold
Ground rent € p.a.
Yes
€ 282,126
Listed status
Expiry of leasehold
Yes
25.06.2204
Planning Situation
Zoning plan
Yes
Legally binding development plan
Yes
No. / Name of development plan
XI-16, Baunutzungsplan
Development plan dated
13/12/1956, 28/12/1960 (Baunutzungsplan)
Designated use
Residential area
Site coverage ratio (GRZ)
0.3
Plot ratio (GFZ)
1.2
Additional comments
According to the legally binding development plan XI-16 five storeys maximum. The legally binding development plan applies only for XI-16
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven). Legally binding development plan 7-37Bb in preparation.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
28/04/2011
Schöneberg
28262
77
114/1
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
Ground rent of 125,304 € per annum with indexation clause in favour of the respective owner of Schöneberg, page
21974, that is subject to the leasehold, entered on 04.07.2006.
Limited personal pipeline easement for a Vattenfall Europe Distribution Berlin GmbH, entered on 31.12.2006.
Comments
We have been provided with a copy of an extract from the land register dated 28/04/2011. We assume that there have
not been any changes since then. For the purposes of the valuation we have made the Assumption that the pipeline
easements does not have a detrimental effect on the current use of the Property. However, further developments or
building extensions may be restricted.
Further comment regarding ground rent:
We have reflected the ground rent and leasehold status in our valuation. The last adjustment was untertaken on
01/01/2013. Adjustements are based on the cost of living index of private households and can only be carried out three
years after the previous adjustment.
Page 7
SHORT REPORT
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
11/01/2008
Schöneberg
28248
77
241/29
Babock & Brown Residential Property 2 S.à.r.L. & Co. KG
Ground rent of 125,208 € per annum with indexation clause in favour of the respective owner of Schöneberg, page 7182,
that is subject to a leasehold, entered on 26.06.2006.
Comments
We have been provided with a copy of an extract from the land register dated 11/01/2008. We assume that there have
not been any changes since then.
Further comment regarding ground rent:
We have reflected the ground rent and leasehold status in our valuation. The last adjustment was untertaken on
01/01/2013. Adjustements are based on the cost of living index of private households and can only be carried out three
years after the previous adjustment.
Land Register
Extract dated
Local court of
Folio
Plot
Parcel
Owner
Section II:
Encumbrances
Comments
Page 8
SHORT REPORT
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
DTZ No.
Cluster
Portfolio
Date of Valuation
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Site Plan
We have not been provided with a site plan.
Subject property
Page 9
SHORT REPORT
DTZ No.
Cluster
Portfolio
Date of Valuation
Grazer Platz 5-16; Grazer Damm 122-170 (even), Pöppelmannstr. 1-11 (uneven); Kauschstr. 1-11 (uneven); Peter Vischner 29-39 (ungerade)
12157
Berlin
023
24360 - Resi 7 - Berlin - Grazer Damm
Resi 7
31/05/2013
Rental and Investment Evidence
Rental Table
City
Berlin, Schöneberg
Date
01.09.2012
Minimum
Average
4.57 €/sq m
5.28 €/sq m
Maximum
6.10 €/sq m
Recent Lease Agreements
Address
Date
Area
Monthly rent
Grazer Platz 16 (Res.)
16.04.2013
59 sq m
9.20 €/sq m
Pöppelmannstr. 11 (Res.)
16.04.2013
82 sq m
9.00 €/sq m
Grazer Platz 15 (Res.)
15.04.2013
53 sq m
8.72 €/sq m
Grazer Damm 150 (Res.)
01.04.2013
66 sq m
7.86 €/sq m
Kauschstraße 1 (Res.)
01.04.2013
61 sq m
8.02 €/sq m
Asking Rental Comparables (Immobilienscout24.de)
Address
Date
Area
Asking rent
Comments
12157 Berlin
10.06.2013
114 sq m
7.82 €/sq m 4-room apartment, 3rd floor, balcony, renovated
12157 Berlin
10.06.2013
107 sq m
7.98 €/sq m 3.5-room apartment, 4th floor, renovated
12157 Berlin
10.06.2013
104 sq m
7.50 €/sq m 3.5-room apartment, 4th floor, balcony
10829 Berlin
10.06.2013
74 sq m
12157 Berlin
10.06.2013
104 sq m
7.43 €/sq m 2.5-room apartment, 3rd floor, balcony, renovated
5.39 €/sq m retail area, normal condition
Sales Comparables from Board of Valuers
Address
Date
Area
Price p. sq m
Comments
Bahnhofstr., Berlin
26.06.2012
1,596 sq m
1,291 € 4-st. mixed-use building, built 1903, partly refurb., freehold
Eisenacher Str., Berlin
19.06.2012
1,333 sq m
1,200 € 5-st. mixed-use building, built 1911, partly refurb., freehold
Ebersstraße, Berlin
04.04.2012
2,242 sq m
1,160 € 5-st. apartment building, built 1900, partly refurb., freehold
Ebersstraße, Berlin
21.12.2012
1,106 sq m
1,112 € 5-st. apartment building, built 1899, partly refurb., freehold
Grunewaldstr., Berlin
17.04.2012
2,077 sq m
1,103 € 5-st. mixed-use building, built 1888, partly refurb., freehold
Asking Sales Comparables (Immobilienscout24.de)
Address
Date
Area
Price p. sq m
Comments
10829 Berlin
07.06.2013
3,000 sq m
1,400 € Apartment building, built 1900, partly refurb., freehold
10715 Berlin
07.06.2013
1,521 sq m
1,216 € Mixed-use building, built 1902, partly refurb., freehold
12439 Berlin
24.06.2013
1,790 sq m
1,257 € Mixed-use building, built 1920, refurb., multiplier 14.4, freehold
Comments
The Market Rent was estimated on the basis of our market research (asking rental comparables) as well as on the basis of recent lettings. We
have adopted the Market Rent depending on the market situation as well as on the condition of the building.
The sales comparables from the board of valuers as well as the asking sales comparables reflect the range of purchase prices and multipliers for
comparable properties and are important indications regarding the Market Value of the subject property.
Page 10